Rheinmetall intends to establish new artillery ammunition production facility in Lithuania

By Defence Industry Europe

The Lithuanian government and German defence contractor Rheinmetall have signed a memorandum of understanding to establish a new plant in Lithuania for the production of 155mm artillery shells.


The signing ceremony, attended by Lithuanian Prime Minister Ingrida Šimonytė, Economy Minister Aušrinė Armonaitė, and Defence Minister Laurynas Kasčiūnas, was broadcast live on national television.

The details of the memorandum were not disclosed during the signing ceremony, which was broadcast live on Lithuanian television. Lithuanian Minister Armonaitė highlighted the significance of Rheinmetall’s investment, noting it as the largest in the Lithuanian defence sector and one of the largest in the nation’s history. “This will boost our industry, our economy, and the security of our region,” Armonaitė stated, expressing eagerness to advance this partnership swiftly.



Lithuanian Defence Minister Kasčiūnas underscored the strategic importance of localizing ammunition production, a lesson underscored by the ongoing conflict in Ukraine. “Independence from global supply chains and production here in Lithuania are an integral part of national security and defence,” he explained.

Rheinmetall had previously confirmed plans to establish this artillery production plant at its annual press conference in March 2023. The company also operates a maintenance center in Lithuania, in partnership with KNDS Deutschland servicing NATO’s combat units in the Baltic states and the Leopard 2 tanks provided to Ukraine.



Further discussions on the investment agreement are expected to commence shortly, aiming to reinforce Lithuania’s defence capabilities and economic development.



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