German arms maker Rheinmetall has signed a deal with the Lithuanian government to build a factory to make 155mm artillery shells.
The company has leased 340ha of land near the town of Baisogala and will spend €180m on building the plant
Speaking at the signing ceremony, Lithuania’s prime minister Ingrida Simonyte said the project was “necessary and urgent”.
“Our defence needs, the importance of the shortest possible supply chains, and strong allied partnership between Lithuania and Germany underscore the need to maintain the momentum as we continue to work in the same spirit of cooperation,” she said.
The plant will make tens of thousands of shells a year, create around 150 jobs, and provide business for local suppliers.
Ausrine Armonaite, Lithuania’s economics minister, said the plant reflected the need to “take concrete steps to strengthen our nation’s defence capabilities”.
She added that it would reduce the country’s dependence on imported arms.
In February, Düsseldorf-based Rheinmetall broke ground on an ammunition factory near the village of Unterluess in Lower Saxony.
When complete, the €300m Niedersachsen Works will produce artillery shells, explosives and rocket artillery components. The factory will eventually make some 200,000 rounds a year, along with up to 1,900 tonnes of RDX explosive.
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