Germany-based defense company Rheinmetall has signed a memorandum of understanding to build an ammunition plant in Lithuania. The Baltic country has declared the project of state importance and is receiving new incentives from the Lithuanian Ministry of the Economy and Innovation, led by Minister Ausrine Armonaite.
The planned incentives include legal amendments to simplify site planning, land purchase and construction permitting to enable the rapid establishment of defense manufacturing facilities such as the Rheinmetall plant. Projects of state importance in Lithuania are also exempt from corporate tax for up to 20 years.
Armonaite, who signed the MOU with Rheinmetall, said the company will invest over $196 million in the factory, creating at least 150 new jobs. She described Rheinmetall’s Lithuanian investment as a “significant step” forward in filling the country’s defense requirements.
“It will help us to ensure uninterrupted access to essential weapons and ammunition, as the products that European defense needs will be produced on Lithuanian soil,” the minister said.
In an earlier statement, Lithuanian Prime Minister Ingrida Simonyte said Rheinmetall’s ammunition plant is part of the country’s defense industry investment and will also support preparations for future conflicts.
