In Lithuania’s Radviliškis District, near the town of Baisogala, construction officially began on 4 October on a joint artillery shell factory developed by Germany’s Rheinmetall Group and Lithuania. The landmark project, marking a significant step in strengthening NATO’s eastern flank, was inaugurated in the presence of President Gitanas Nausėda, Prime Minister Inga Ruginienė, German Parliamentary State Secretary for Defence Dr Nils Schmid, and Rheinmetall CEO Armin Papperger.
The new facility will be built on a 340-hectare site. It will produce 155-millimetre artillery shells, and the manufacturing complex will feature state-of-the-art technology, high safety standards, and sustainable solutions. The total investment is estimated at 300 million euros, and the project will create more than 150 new highly qualified jobs.
The Rheinmetall ammunition plant is being developed in partnership with two state-owned Lithuanian enterprises – Epso-G’s subsidiary Epso-G Invest and the Giraitė Ammunition Factory. Construction will be carried out by one of Lithuania’s largest building companies, PST Group, under a €141 million contract. The works are expected to be completed by the end of 2026, and, according to José Manuel Fernández Bosch, head of Rheinmetall Expal Munitions, the plant is scheduled to begin operations in early 2027.
Rheinmetall is a German industrial group with over 140 years of experience, globally recognized for its advanced defence and engineering technologies, the company is building in Lithuania one of the most modern facilities of its kind in Europe. A project of special importance to the defence industry will contribute to national and regional security while also strengthening the strategic partnership between Lithuania and Germany.
Lithuania and Rheinmetall are continuing their dialogue on expanding cooperation – a second investment is being considered, involving the establishment of an ammunition production competence centre in the country.
The project is being implemented in close cooperation with Lithuanian state enterprises, ensuring a long-term model of partnership and trust. A stable environment, strong energy infrastructure, skilled professionals, and a clear national focus on attracting investment provide a solid foundation for projects of this scale.
