Prime Minister invites foreign defense industry to establish joint ventures in Lithuania

Lithuania offers foreign companies to set up joint ventures, share risks and thus reduce the cost of weapons, Prime Minister Gintautas Paluckas says as demand for military industry products continues to grow in Europe.

“Joint means sharing risks, both in terms of capital investment, legal regulation and the sale of such produced products,” he said.

According to the prime minister, part of the products made by such joint ventures would remain in Lithuanian military warehouses, which would help to control the cost of armaments. “Because today we see prices skyrocketing. Because everyone needs everything,” Paluckas underlined.

At least four German and Ukrainian defense industry companies want to work with Lithuania, the prime minister said last week, adding that effort are also being made to establish contacts with US, Swedish and UK arms producers.

The Paluckas government is trying to attract Western companies with high defense technologies, for example, from Germany, Sweden and the USA, to Lithuania, and to involve them in joint projects for the production of ammunition and other weaponry. The aim is to ensure that funds allocated for defense remain and are invested in Lithuania and boost the economy, he pointed out.

BNS previously reported that German defense industry giant Rheinmetall, in partnership with two Lithuanian state companies, is launching a 260-300 million euro project for a 155 mm artillery ammunition plant in Baisogala, to be completed by early 2027

In addition, the Lithuanian government continues its negotiations this year with Northrop Grumman, a US defense technology giant, on the installation of a production line for 30 mm caliber ammunition within the territory of Giraites Ginkluotes Gamykla (Giraite Armament Plant, GGG) in Kaunas District.

Source: Baltic News Service (BNS)