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“Rheinmetall and Lithuania Team Up to Create a State-of-the-Art Artillery Ammo Hub”

Lithuania and Rheinmetall are embarking on the establishment of a state-of-the-art facility dedicated to 155mm artillery munitions. The pivotal agreements, comprising a land lease arrangement and a procurement agreement for 155mm ammunition, were formalized at a ceremony conducted on 29 November 2024. The Prime Minister of Lithuania, Ms Ingrida Šimonytė, the Lithuanian Minister for the Economy and Innovation, Ms Aušrinė Armonaite, as well as the Minister of National Defence, Mr Laurynas Kasčiūnas, honored the event.

With the commencement of construction in Baisogala, Lithuania is making strides in bolstering its defense capabilities. A cutting-edge manufacturing facility, featuring shell production and loading assembly infrastructures, is being constructed in the municipality on a site of approximately 340 hectares. The facility is anticipated to begin operations in mid-2026 and, upon finalization, will be able to produce tens of thousands of 155mm caliber artillery shells annually. An investment totaling 180 million euros is being injected directly into Lithuania, facilitating the generation of around 150 local positions. Local businesses and the regional economy will be integrated into the supply network.

“From the very beginning, the discussions between the Lithuanian Government and Rheinmetall have been rooted in a mutual recognition of the necessity and urgency of this undertaking. I am extremely delighted that today signifies the initiation of construction for the artillery munitions manufacturing facility. Our defense necessities, the importance of the most efficient supply networks, and the strong partnership between Lithuania and Germany highlight the need to maintain this cooperative spirit,” articulates Ingrida Šimonytė, Prime Minister of Lithuania.

“We at Rheinmetall are profoundly grateful for the trust that Lithuania has placed in us. It is and remains our mission at Rheinmetall to act as a pillar of both national and international security provision. This enduring collaboration with Lithuania reinforces this commitment once again,” states Armin Papperger, CEO of Rheinmetall AG.

“Given the intensifying security challenges, we must shift from dialogue to decisive measures to enhance our nation’s defense capabilities. By promoting large-scale investment projects and enabling domestic armament production, we not only fulfill national security obligations but also reduce our dependency on foreign military supplies. I am confident that Lithuania is moving in the right direction, and it is uplifting to observe global leaders such as Rheinmetall actively contributing to this progression,” asserts Aušrinė Armonaitė, Minister of the Economy and Innovation.

“The creation of the German defense company Rheinmetall’s munitions facility in Lithuania is not only crucial within the context of the defense industry’s development but will also satisfy the requirements of our armed forces. Although the process was quite complex, I am thankful to my colleagues that, through collaborative efforts, we reached an agreement on this landmark project essential for our national security,” emphasizes Laurynas Kasčiūnas, Minister of Defence.

As recently as June 2024, Rheinmetall and the Lithuanian Minister of Economy and Innovation Armonaite concluded an agreement regulating the creation of the German defense entity Rheinmetall in Lithuania. The initiative was deemed to have ‘state significance.’ As a result, the Lithuanian Centre of Excellence for Ammunition will benefit from special investment and operational conditions to accelerate the facility’s construction.

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