In a significant move to bolster Lithuania’s defence and security industry, Minister of Economy and Innovation Aušrinė Armonaitė has signed an agreement with German military industry giant Rheinmetall for its expansion in Lithuania. The project has been granted large-scale project status, marking a pivotal step towards enhancing national defence capabilities.
“The establishment of the Rheinmetall factory in Lithuania is a significant step towards meeting our country’s urgent defence and security needs. It will ensure continuous access to essential weapons and ammunition, as we will produce the necessary products for European defence ourselves. With an investment of over 180 million euros, the new factory is also expected to create at least 150 new jobs,” stated Minister Armonaitė.
The specific location of the investment project will be announced in the coming weeks. The factory is anticipated to produce tens of thousands of ammunition units annually, addressing critical defence requirements.
Rheinmetall CEO Armin Papperger expressed gratitude for the partnership, stating, “We are grateful for this long-term partnership with Lithuania. It once again confirms our commitment to being one of the pillars of national and international security assurance.”
Maximilian Froch, head of Rheinmetall’s International Strategic Programmes Department, added, “We appreciate that Lithuania has chosen us as its defence industry partner. We are delighted to contribute to strengthening the country’s sovereignty in the field of ammunition.”
To further ensure Lithuania’s security, the Ministry of Economy and Innovation spearheaded legislative changes approved by the Seimas. These changes create more favourable conditions for developing large-scale projects and will benefit investors, including Rheinmetall.
The amendments simplify procedures related to territorial planning, land plot formation, and construction, facilitating the rapid commencement of defence industry activities in Lithuania. These legislative changes were developed in collaboration with the Ministry of National Defence, the Ministry of Environment, and the Government’s Chancellery.
The Ministry of Economy and Innovation’s initiative for large investment projects, known as green corridor projects, has been in effect since 2021. This initiative allows for much easier and faster establishment of projects, granting them the status of national importance and offering a 0% corporate tax rate for up to 20 years.
Currently, the Ministry has signed agreements for fourteen large investment projects, expected to create nearly 4,000 jobs and attract more than 1.25 billion euros in investments, significantly boosting Lithuania’s economic and defence landscape.
