Rheinmetall to establish new ammunition plant in Lithuania

Rheinmetall has moved to assist the development of Lithuania defence sector by signed a memorandum of understanding (MoU) focused on establishing a new ammunition factory in the country, the company announced on 3 June 2024.

The project has been granted the status of state importance by the Lithuanian government, whose, minister of the economy and innovation, Aušrinė Armonaitė, signed the MoU on its behalf.

“Rheinmetall establishing operations in Lithuania is a significant step towards meeting our country’s immediate defence and security needs,” Armonaitė was quoted as saying in a Rheinmetall press release. “It will help us to ensure uninterrupted access to essential weapons and ammunition, as the products that European defence needs will be produced on Lithuanian soil. With an investment of more than EUR 180 million, the new plant is also expected to create at least 150 new jobs.”

The location of the new factory, which is intended to produce tens of thousands of rounds of ammunition every year, is expected to be announced in the upcoming weeks.

“We are grateful to have been selected by Lithuania as a partner of the defence industry. We are pleased to be able to make a contribution to national sovereignty in the field of ammunition,” said Maximilian Froch, Rheinmetall’s head of strategic international programme organisation.

Armin Papperger, Rheinmetall CEO, added, “We at Rheinmetall are very grateful for this long-term partnership with Lithuania. It confirms us once again in our claim to be one of the pillars of national and international security provision.”

To ensure Lithuania’s security, its Ministry of the Economy and Innovation has also initiated legal amendments that facilitate the development of large-scale projects. Potential investors like Rheinmetall will be able to benefit from these new provisions. These amendments simplify territorial planning, land procurement and construction procedures, enabling manufacturers in the defence industry to launch operations in Lithuania in the shortest possible time.

The amendments were drafted in co-operation with the Lithuanian Ministry of Defence, Ministry of the Environment and Office of the Government. It is expected that the Lithuanian Parliament will adopt these regulations during this year’s Spring session.