03/06/2024 | Press release

Partnership with Lithuania: Rheinmetall and Minister of Economy and Innovation, Aušrinė Armonaitė, sign further agreement for a new factory

Key facts
  • Signing of a MoU for the construction of an ammunition factory in Lithuania
  • Project has been granted the status of state importance
  • Signed by the Lithuanian Minister of Economy and Innovation, the Lithuanian Minister of Defense and a Rheinmetall
  • Significance for the bilateral security partnership between Lithuania and Germany
Lithuania takes another step towards strengthening its defence sector. The Lithuanian Minister of the Economy and Innovation, Aušrinė Armonaitė, has signed an agreement delineating the arrival of Rheinmetall, the German military industry giant, to Lithuania. The project has been granted the status of state importance.

“Rheinmetall establishing operations in Lithuania is a significant step towards meeting our country's immediate defence and security needs. It will help us to ensure uninterrupted access to essential weapons and ammunition, as the products that European defence needs will be produced on Lithuanian soil. With an investment of more than EUR 180M, the new plant is also expected to create at least 150 new jobs,” Minister Armonaitė said.

The site of the investment project should be announced in the upcoming weeks. The plant is expected to produce tens of thousands of rounds of ammunition per year.

“We are grateful to have been selected by Lithuania as a partner of the defence industry. We are pleased to be able to make a contribution to national sovereignty in the field of ammunition,” said Maximilian Froch, Head of Strategic Programme Organisation International at Rheinmetall AG.

Armin Papperger, CEO of Rheinmetall AG: “We at Rheinmetall are very grateful for this long-term partnership with Lithuania. It confirms us once again in our claim to be one of the pillars of national and international security provision.” 

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. Potential investors, including Rheinmetall, will be able to benefit from these new provisions.

The amendments simplify territorial planning, land procurement, and construction procedures. This will enable manufacturers in the defence industry to launch operations in Lithuania in the shortest possible time.

These amendments were drafted in cooperation with the Ministry of Defence, the Ministry of the Environment, and the Office of the Government. It is expected that the Lithuanian Parliament will adopt these regulations during this year’s spring session.

The ‘Green Corridor’ initiative for large-scale investment projects, developed by the Ministry of the Economy and Innovation and launched in 2021, makes it easier and quicker for investors to set up operations in Lithuania, granting their project a status of state importance and a 0% corporate tax rate for a period up to 20 years.

The Ministry of the Economy and Innovation has already signed contracts for 14 large-scale investment projects, which will create nearly 4,000 jobs and attract more than €1.25 billion in investment.

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