German arms manufacturer Rheinmetall
Germany’s Rheinmetall has taken an important step towards the implementation of its project to build a 155 mm artillery shell production plant in Lithuania. On Friday, the company signed a lease agreement for a 340-hectare land plot in Baisogala, as well as a contract for the purchase of shells of this calibre.
The new plant is scheduled to start operating in mid-2026 and is expected to produce tens of thousands of shells annually. The total investment in the project will be around €180 million, and the new production facility will create around 150 jobs.
Lithuanian Prime Minister Ingrida Šimonite stressed that this project is of great importance for strengthening the defence capabilities of Europe and NATO, in particular in response to the growing demand for ammunition on the continent. “I am confident that this project will be implemented as soon as possible in the face of the growing need for ammunition in Europe and NATO,” she said after signing the agreements.
Armin Papperger, CEO of Rheinmetall, expressed his gratitude to Lithuania for its trust and confirmed the company’s intention to invest significant resources in this important defence project.
Rheinmetall is already active in Lithuania: since summer 2022, the company has been operating a maintenance centre in cooperation with the contractor KNDS. Now, with the launch of the new plant, Lithuania will become an important centre for the production and supply of artillery ammunition in the framework of cooperation with NATO and to meet the growing needs of European countries for modern weapons.
