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.
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’. 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.
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