Rheinmetall to Invest €180 Million in Ammunition Factory in Lithuania

German defense company Rheinmetall is set to invest €180 million in building an ammunition factory in Lithuania. The announcement was made by Lithuania's Economy Minister, Aušrinė Armonaitė, marking a significant step in bolstering the country's defense capabilities.

The new factory is expected to create at least 150 jobs and produce tens of thousands of rounds of ammunition per year. Minister Armonaitė emphasized the importance of this development, stating, "Rheinmetall establishing operations in Lithuania is a significant step towards meeting our country's immediate defence and security needs. It will help us to ensure uninterrupted access to vital weapons and ammunition, the products that European defence needs will be produced on Lithuanian soil.

The project has been granted the status of state importance, and the specific location of the plant will be announced in the upcoming weeks. Construction is expected to commence in October, according to Deputy Transport and Communication Minister Julius Skačkauskas.

The agreement between Rheinmetall and Lithuania's Ministry of Economy and Innovation follows 10 months of negotiations. In April, a letter of intent was signed by Rheinmetall, Economy Minister Armonaitė, and Lithuanian Defence Minister Laurynas Kasčiūnas. The Lithuanian Seimas has also adopted amendments to facilitate conditions for major Western arms and ammunition manufacturers to establish production facilities in Lithuania more swiftly.

Why this matters: This investment in Lithuania's defense sector has significant implications for national security and regional stability. It may also lead to increased economic opportunities and job creation in the region.

Rheinmetall CEO Armin Papperger expressed appreciation for the partnership with Lithuania, stating, "We are thankful for such a long-term partnership with Lithuania. This once again confirms our commitment to be one of the pillars of national and international security."

This investment aligns with Lithuania's broader strategy to strengthen its defense sector and ensure national security. The Ministry of Economy and Innovation has signed contracts for 14 large investment projects, which will create nearly 4,000 jobs and attract over €1.25 billion in investment.

The construction of the Rheinmetall plant is a critical development in Lithuania's efforts to secure vital defense resources. By producing ammunition domestically, the country aims to maintain uninterrupted access to vital military supplies.

Notably, the €180 million investment by Rheinmetall in Lithuania's defense sector highlights a strategic partnership aimed at enhancing national security and creating significant economic opportunities.

Key Takeaways

• Rheinmetall to invest €180m in building an ammunition factory in Lithuania.
• The factory will create 150 jobs and produce tens of thousands of rounds of ammo/year.
• Construction to start in October, with location to be announced soon.
• The project aims to ensure Lithuania's uninterrupted access to vital defense resources.
• The investment is part of Lithuania's strategy to strengthen its defense sector and national security.