Rheinmetall Begins Construction On Artillery Factory In Lithuania

Lithuania and Rheinmetall are beginning construction of a modern production plant for 155mm artillery ammunition. The necessary contracts, including a land lease agreement and a supply contract for the procurement of 155mm ammunition, were signed at a ceremony held on 29 November 2024. The Prime Minister of Lithuania, Ms Ingrida Šimonytė, the Lithuanian Minister for the Economy and Innovation, Ms Aušrinė Armonaite, and the Lithuanian Minister of National Defence, Mr Laurynas Kasčiūnas, attended the event.

With the start of construction in Baisogala, Lithuania is taking a further step towards strengthening its defence sector. A state-of-the-art production facility, including a shell manufacturing and load assembly pack, is being built in the municipality on an area of around 340 hectares. The facility will begin operations from mid-2026 and, once completed, will be able to produce tens of thousands of 155mm calibre artillery shells per year. 180 million euros are invested directly in Lithuania. Around 150 jobs will be created locally. Local companies and the local economy will be integrated into the value chain.

“From day one, the dialogue between the Lithuanian Government and Rheinmetall has been based on a mutual understanding of this project's necessity and urgency. I am very pleased that today, this cooperation has enabled the beginning of construction of the artillery ammunition production plant. Our defence needs, the importance of the shortest possible supply chains, and strong allied partnership between Lithuania and Germany underscore the need to maintain the momentum as we continue to work in the same spirit of cooperation,” says Ingrida Šimonytė, Prime Minister of Lithuania.

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

“In light of the growing security challenges, we must move beyond words and take concrete steps to strengthen our nation’s defence capabilities. By fostering large-scale investment projects and enabling local production of weaponry, we not only address national security needs but also reduce our dependence on arms procured from international markets. I have no doubt that Lithuania is moving in the right direction, and it is promising to see global leaders like Rheinmetall choosing to be part of this progress,” says Aušrinė Armonaitė, the Minister of the Economy and Innovation. 

To read more, please visit Rheinmetall's website.