The Lithuanian Government has approved the Ministry of the Economy and Innovation’s proposal to grant the German military industry leader Rheinmetall the status of a project that meets the urgent security and defence needs of the country. This allows the company’s Lithuanian Centre of Excellence for Ammunition to benefit from special investment and commercial conditions related to the fast-track set-up of the plant. Back in June, the Ministry signed an agreement with Rheinmetall for its expansion in Lithuania – the project has been granted the status of a large-scale project. With an investment of more than €180 million, the new plant is expected to create at least 150 new jobs. To ensure Lithuania’s security, the country’s Parliament has already approved amendments to the law to facilitate the development of large-scale projects at the initiative of the Ministry of Economy and Innovation.
“The project will contribute to both national and EU objectives in the security and defence industry. We can already see that the need not only to increase the production of defence products, but also to urgently develop new manufacturing facilities is becoming a priority for Europe as a whole. This way we can ensure that we all have the necessary stocks of defence resources and uninterrupted support for Ukraine,” said Erika Kuročkina, Vice-Minister of the Economy and Innovation.
“The plant is expected to produce tens of thousands of rounds of ammunition per year, which will help Lithuania to become less dependent on foreign suppliers and to supply our own weapons and ammunition. This is one of our priorities to help ensure the country’s security,” said Aušrinė Armonaitė, Minister of the Economy and Innovation.
The amendments simplify territorial planning, land procurement, and construction procedures. This will allow defence industry companies to start operations in Lithuania in the shortest possible time. The ‘Green Corridor’ initiative for large-scale investment projects, developed by the Ministry of the Economy and Innovation and launched in 2021, makes it easier and quicker for investors to set up operations in Lithuania, granting their project a status of state importance and a 0% corporate tax rate for a period up to 20 years. The Ministry of the Economy and Innovation has already signed contracts for 14 large-scale investment projects, which will create nearly 4,000 jobs and attract more than €1.25 billion in investment.
