Rheinmetall has taken the next step towards building a new plant to manufacture 155-millimetre artillery shells in Lithuania.
The German arms company and the government of the Baltic EU and NATO country signed a lease agreement on Friday for a 340-hectare state-owned property in the small town of Baisogala and a contract for the purchase of 155-mm ammunition.
The State Chancellery in Vilnius said the munitions factory is expected to start operating in mid-2026 and, once completed, will produce tens of thousands of rounds of ammunition per year.
Rheinmetall plans to invest around €180 million ($190 million) in the new plant and create around 150 jobs.
The company confirmed plans to build an artillery production plant in Lithuania in the spring and signed a letter of intent with the government in Vilnius. The Lithuanian parliament then passed several legislative amendments to facilitate and expedite investments by defence companies.
“I have no doubt that this project will be implemented as quickly as necessary in view of the increasing demand for ammunition in Europe and NATO,” Lithuanian Prime Minister Ingrida Šimonytė said after the signing of the agreements.
They were concluded by Rheinmetall representatives together with Lithuanian Minister for Economic Affairs Aušrinė Armonaitė and Minister of Defence Laurynas Kasčiūnas.
“We at Rheinmetall are very grateful for the trust Lithuania has placed in us,” Rheinmetall chief executive Armin Papperger said in the statement.
Rheinmetall is already active in Lithuania and has been operating a maintenance centre with the defence contractor KNDS since the summer of 2022.
