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Lithuania has signed a contract with Rheinmetall for the construction of an arms factory

03 Jun, 2024
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Lithuania has signed a contract with Rheinmetall for the construction of an arms factory

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The Minister of Economy and Innovation of Lithuania, AušrinÄ— ArmonaitÄ—, has signed an agreement with the German military industry giant Rheinmetall for €180 million for the development of its cooperation with Lithuania, including the construction of an arms factory. This was reported by the ministry's press service.

"The construction of the Rheinmetall plant in Lithuania is an extremely significant step towards meeting the urgent defense and security needs of our country. It will help ensure uninterrupted access to the necessary weapons and ammunition as we will produce them ourselves to defend Europe. It is expected that after an investment of over €180 million, the new production will create at least 150 new jobs," said ArmonaitÄ—.

The location of the investment project, which has been granted "large" status, is expected to be announced in the coming weeks. It is expected that the plant will produce tens of thousands of munitions per year.

"We are grateful for such a long-term partnership with Lithuania. This once again confirms our commitment to be one of the pillars of national and international security," emphasized Rheinmetall CEO Armin Papperger.

 

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Maximilian Froh, Head of the International Strategic Programs Organization at Rheinmetall, also highly appreciated Lithuania's choice of this conglomerate as its partner in the defense industry, noting that it will strengthen the country's sovereignty in the ammunition production segment.

In order to ensure the country's security, the Lithuanian Seimas, at the initiative of the Ministry of Economy, adopted changes to the laws creating more favorable conditions for the development of large-scale projects. These changes were prepared in cooperation with the Ministry of National Defense, the Ministry of Environment, and the Government Chancellery.

Investors, including Rheinmetall, will be able to take advantage of these provisions. The changes simplify procedures related to territorial planning, land parcel formation, and construction. This creates conditions for the development of the defense industry in Lithuania to start as soon as possible.

Currently, the Lithuanian Ministry of Economy and Innovation has signed contracts for 14 large investment projects, which will create nearly four thousand jobs and attract over €1.25 billion in investment.

The Odessa Journal

The Odessa Journal

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