In conjunction with the Lithuanian government, Rheinmetall is beginning construction of a modern production plant in the country for 155 mm artillery ammunition that will be known as the Lithuanian Centre of Excellence for Ammunition.
The necessary contracts, including a land lease agreement and a supply contract for the procurement of 155 mm ammunition, were signed at a ceremony held on 29 November 2024 attended by Lithuanian Prime Minister Ingrida Šimonytė, Lithuanian Minister for the Economy and Innovation Aušrinė Armonaite, and the Lithuanian defence minister, Laurynas Kasčiūnas.
The new ammunition plant will be located in Baisogala, in central Lithuania, where 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 from mid-2026 and, once completed, will be able to produce tens of thousands of 155 mm calibre artillery shells per year. Rheinmetall has invested EUR 180 million directly in Lithuania and says that local companies and the local economy will be integrated into the value chain, with around 150 local jobs created.
“From day one the dialogue between the Lithuanian government and Rheinmetall has been based on a mutual understanding of this project’s necessity and urgency,” stated Šimonytė at the signing ceremony. “I am very pleased that today this co-operation has enabled the beginning of construction of the artillery ammunition production plant. Our defence needs, the importance of the shortest possible supply chains, and strong allied partnership between Lithuania and Germany underscore the need to maintain the momentum as we continue to work in the same spirit of co-operation.”
“We at Rheinmetall are very grateful for the trust Lithuania has placed in us,” added company CEO Armin Papperger. “It is and remains our aspiration at Rheinmetall to be one of the pillars of national and international security provision. This long-term partnership with Lithuania confirms this once again.”
“In light of the growing security challenges, we must move beyond words and take concrete steps to strengthen our nation’s defence capabilities,” said Armonaite. “By fostering large-scale investment projects and enabling local production of weaponry, we not only address national security needs but also reduce our dependence on arms procured from international markets. I have no doubt that Lithuania is moving in the right direction, and it is promising to see global leaders like Rheinmetall choosing to be part of this progress.”
Kasčiūnas stated, “The establishment of the German defence industry company Rheinmetall’s ammunition factory in Lithuania is not only significant in the context of the defence industry’s development but will also address the needs of our armed forces. It was quite a complex process, but I am pleased and grateful to my colleagues that, through joint efforts, we managed to reach an agreement on this historic and important project for our national security
As recently as June 2024, Rheinmetall and Armonaite signed an agreement regulating the establishment of the German company in Lithuania, with the project 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.
