Rheinmetall has contracts or framework agreements worth billions to make munitions and has been building a new ammunition factory in Lower Saxony in Germany. It has also begun the production of artillery shells in Queensland, Australia and has establishing a vehicle joint venture in Ukraine. The new Lithuanian factory has marked another expansion for the company.
Rheinmetall, the Lithuanian Minister of Economy and Innovation and the Lithuanian Minister of Defence have signed a Memorandum of Understanding (MoU) for the construction of an ammunition factory in Lithuania.
The MoU was preceded by a Memorandum of Intent signed last month. The site of the investment project should be announced in the coming weeks and the plant will be expected to produce tens of thousands of rounds of ammunition per year.
The building of the factory is to be fast-tracked by legislative amendments which have been designed to facilitate large projects and specifically simplify territorial planning, land procurement and construction procedures.
To ensure Lithuania’s security, the Ministry of the Economy and Innovation has also initiated legal amendments that facilitate the development of large-scale projects considered to be of state importance. Potential investors, including Rheinmetall, will be able to benefit from these new provisions.
The 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 Lithuanian minister of the economy and innovation Aušrinė Armonaitė said the factory would see an investment of €180 million (US$195 million) and marked “a significant step towards meeting our country’s immediate defence and security needs, [and] ensure uninterrupted access to essential weapons and ammunition”.
