Lithuania and Rheinmetall are beginning construction of a modern production plant for 155mm artillery ammunition. The necessary contracts, including a land lease agreement and a framework agreement for the procurement of 155mm ammunition, were signed at a ceremony held on 29 November 2024. The Prime Minister of Lithuania, Ms Ingrida Šimonytė, the Lithuanian Minister of the Economy and Innovation, Ms Aušrinė Armonaitė, and the Lithuanian Minister of National Defence, Mr Laurynas Kasčiūnas, attended the event. With the start of construction in Baisogala, Lithuania is taking a further step towards strengthening its defence sector. A state-of-the-art production facility, including a shell manufacturing and load assembly pack, is being built on an area of around 340 hectares. The facility will begin operations in mid-2026 and, once completed, will be able to produce tens of thousands of 155mm calibre artillery shells per year. A total of 180 million euros are invested directly in Lithuania, and around 150 jobs will be created in the country. Local companies and the local economy will be fully integrated into the value chain.
“We at Rheinmetall are very grateful for the trust Lithuania has placed in us. It is and remains our aspiration at Rheinmetall to be one of the pillars of national and international security provision. This long-term partnership with Lithuania confirms this once again,” says Armin Papperger, CEO of Rheinmetall AG.
“From day one, the dialogue between the Lithuanian Government and Rheinmetall has been based on a mutual understanding of this project’s necessity and urgency. I am very pleased that today, this cooperation has enabled the beginning of construction of the artillery ammunition production plant. 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,” says Ingrida Šimonytė, Prime Minister of Lithuania.
“The establishment of the German defense industry company Rheinmetall’s ammunition factory in Lithuania is not only significant in the context of the defense industry‘s development but will also address the needs of our armed forces. It was quite a complex process, but I am pleased and grateful to my colleagues that, through joint efforts, we managed to reach an agreement on this historic and important project for our national security,” notes Laurynas Kasčiūnas, the Minister of Defence.
“In light of the growing security challenges, we must move beyond words and take concrete steps to strengthen our nation’s defence capabilities. By fostering large-scale investment projects and enabling local production of weaponry, we not only address national security needs but also reduce our dependence on arms procured from international markets. I have no doubt that Lithuania is moving in the right direction, and it is promising to see global leaders like Rheinmetall choosing to be part of this progress,” says Aušrinė Armonaitė, the Minister of the Economy and Innovation.
As recently as June 2024, Rheinmetall and the Lithuanian Minister of Economy and Innovation Armonaitė signed an agreement regulating the establishment of the German defence company Rheinmetall in Lithuania. The project was granted the status of ‘state significance’. To further ensure Lithuania’s security, the Ministry of Economy and Innovation spearheaded legislative changes. These changes create more favourable conditions for developing large-scale projects and will benefit investors, including Rheinmetall. The amendments simplify procedures related to territorial planning, land plot formation, and construction, facilitating the rapid commencement of defence industry activities in Lithuania. These legislative changes were developed in collaboration with the Ministry of National Defence, the Ministry of Environment, and the Government’s Chancellery. As a result, the Lithuanian Centre of Excellence for Ammunition will benefit from special investment and business conditions to speed up the construction of the plant.
