The German defense giant Rheinmetall is commencing the construction of a modern ammunition manufacturing facility in Lithuania, which will supply 155-mm shells to the Lithuanian army. This project also represents another step in Rheinmetall's expansion of its ammunition production capabilities.
The company itself announced the signing of contracts, including a land lease agreement and the supply of 155-mm ammunition, providing additional details about the factory, which will be built near the village of Baisagala in the central part of the country. Specifically, this will be a fairly powerful and modern enterprise, with a total area of 340 hectares (3.4 square kilometers), but it will employ only about 150 specialists.
The production capacity is estimated to be "tens of thousands" of 155 mm shells per year. The timeline has also been announced - the factory is expected to start operations in mid-2026. This means that approximately 1.5 years are allocated for the construction of buildings, production, delivery, installation and setup of manufacturing equipment, as well as staff training.
"€180 million will be directly invested in Lithuania. Local companies and the local economy will be integrated into supply chains," Rheinmetall notes. Meanwhile, the Lithuanian government highlighted the reduction of defense capability dependence on foreign suppliers.
It is also important to note that the agreement to establish this enterprise was signed only in June 2024. The Lithuanian government has granted "national significance" to the project and introduced special investment and commercial conditions to expedite the implementation of the program.
It is worth recalling that Rheinmetall is also building a similar turnkey ammunition factory in Ukraine, as announced in July this year. However, no details about it, other than the construction timeline of 24 months, are known for quite understandable reasons.