The construction of modern plant for production of 155mm artillery ammunition has been launched in Baisogala, Lithuania. The project which is between the government of Lithuania and the German defense company Rheinmetall was launched on the 29th of November 2024 in the presence of the Prime Minister of Lithuania Ingrida Šimonytė, the Minister for the Economy and Innovation Aušrinė Armonaitė and the Minister of National Defence Laurynas Kasčiūnas.
The project will bring an investment of €180 million directly to Lithuania, as well as the creation of 150 direct jobs and the inclusion of Lithuanian companies into the production supply chain.
Plant Size, Start of production
The sprawling 340-hectare facility will significantly strengthen Lithuania’s defence industry and economic resilience. Operations will kick off in mid-2026, with the plant gearing up to manufacture tens of thousands of 155mm caliber artillery rounds annually, directly bolstering Lithuania’s security and Europe’s defence readiness.
The Prime Minister Ingrida Šimonytė emphasized the important part of the cooperation in the following terms: “Since the beginning of our conversations with the Lithuanian Government, both sides have been on the same page as to why this construction of artillery ammunition Plant is crucial.”
The CEO of Rheinmetall, Armin Papperger thanked Lithuania for the trust:
“This is why it remains the ambition of Rheinmetall to be one of the key providers to national and international security. This long-term cooperation with Lithuania only strengthens this position. ”
Read also: Lithuania launches second 700-MW wind tender
Why construction of artillery ammunition Plant in Lithuania now?
“As the security environment continues to deteriorate, it is no longer enough to make statements and wait for things to happen; we must act and ensure the enhancement of the defense capabilities of our nation. Through the large-scale investment projects and the domestic production of weapons, we not only fulfill the requirements of national security but also reduce the dependence on arms imported from the international market. I have no doubt that Lithuania is pursuing the right strategy and it is encouraging to see major international corporations such as Rheinmetall commit their support,” states Aušrinė Armonaitė, the Minister of the Economy and Innovation.
Read also: Planning approval received for Vilnius Stadium in Lithuania
“It is therefore important that such enterprises as the German defense industry company Rheinmetall are establishing their ammunition factory in Lithuania, which will meet the requirements of our armed forces. It was rather complicates, but I am happy and thankful to my colleagues for that, we were able to achieve this great and important achievement for our national security, ” states the Minister of Defence Laurynas Kasčiūnas.
Agreement signing
The construction of artillery ammunition Plant in Lithuania came after the signing of an agreement in June 2024, which gave the project ‘state significance’ status, thus enabling the fast tracking of the processes and the provision of favourable conditions for the establishment of the plant. The plant will also incorporate advanced shell manufacturing and load assembly pack integrations hence enhancing Lithuania’s position in the defence industry.
Read also: Europe’s Mega $1 Billion Rail Network: Rail Baltica
