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Rheinmetall, Lithuania Sign Agreement for New Factory

Our Bureau - : Jun 4, 2024 - : 1:41 am

Lithuania has signed an agreement with German defence company Rheinmetall to establish a new factory in the country, marking a significant development in Lithuania’s defence sector. Lithuanian Minister of the Economy and Innovation, Aušrinė Armonaitė, announced the project, which has been designated as a matter 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.

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.

“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,” said Armin Papperger, CEO of Rheinmetall AG.

To facilitate such large-scale defence projects, the Ministry of the Economy and Innovation has proposed legal amendments to streamline territorial planning, land acquisition, and construction processes. These amendments, developed in collaboration with the Ministry of Defence, the Ministry of the Environment, and the Office of the Government, are expected to be adopted by the Lithuanian Parliament during this year’s spring session.

The ‘Green Corridor’ initiative, launched by the Ministry of the Economy and Innovation in 2021, supports large-scale investment projects by offering a 0% corporate tax rate for up to 20 years and granting projects state importance status. To date, the Ministry has signed contracts for 14 major investment projects, attracting over €1.25 billion in investment and creating nearly 4,000 jobs.

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