German automotive and arms manufacturer Rheinmetall is set to produce 155 mm artillery ammunition in Lithuania once it completes the construction of a modern production facility.
The Lithuanian government, represented by Prime Minister Ingrida Simonyte and several other officials, formalized the deal with the company on Friday. The package covers a land lease agreement and a supply contract for 155 mm ammunition.
Strong Allied Partnership
Simonyte said the partnership is rooted in a mutual understanding that the project is urgently needed to build Lithuania’s defense capabilities.
“I am very pleased that today, this cooperation has enabled the beginning of construction of the artillery ammunition production plant,” she added. “Our defense 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.”
In his remarks on the announcement, Rheinmetall CEO Armin Papperger expressed the company’s continued commitment to protecting regional security.
“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,” he said.
Defense Manufacturing Hub
Lithuania has been promoting its advantage in producing defense technologies to fulfill the region’s requirements.
The German firm started its partnership with the nation in June after receiving approval from the Lithuanian Minister of Economy and Innovation to establish its presence there.
In September, U.S. defense contractor Northrop Grumman entered into a memorandum of understanding with Vilnius to build a factory to produce medium-caliber ammunition. The Lithuanian Ministry of National Defence said it expects that deal to attract more U.S. investments into the country.