The facility, expected to begin operations in early 2027, will support Baltic regional security through local NATO-standard munitions production. This strategic development will reduce reliance on external suppliers and integrate Lithuania more deeply into NATO and EU defence supply chains.
“Large-scale industrial investments of this magnitude are rare in the Baltics. This project combines advanced manufacturing and regional security in a way that strengthens both productivity and resilience, while enhancing Europe’s security of supply and generating long-term economic and social value for Lithuania and the wider Nordic-Baltic region,” says André Küüsvek, NIB President and CEO.
The total investment is estimated at up to EUR 300 million and is expected to generate employment for up to 150 people. The project represents a major addition to Lithuania’s manufacturing sector and defence infrastructure.
NIB’s involvement follows a July 2025 update to its Sustainability Policy Exclusion List, which now allows financing for conventional weapons and ammunition. The change was made in response to a request from the Bank’s Nordic and Baltic owner governments to support regional security and defence.
UAB Valstybės investicinis kapitalas, established by the Republic of Lithuania in 2020, manages the Business Support Fund and other tools aimed at stabilising the economy and investing in strategic sectors, including defence.
NIB is the international financial institution of eight Nordic and Baltic countries, financing projects that enhance productivity and the environment. Headquartered in Helsinki with a regional hub in Riga, NIB maintains a AAA/Aaa credit rating from S&P Global Ratings and Moody’s.
