Rheinmetall has formed a joint venture with Lithuanian investment firm EPSO-G Invest and ammunition factory Giraites ginkluotes gamykla to establish ammunition manufacturing capability in Lithuania.
Armin Papperger, chairman of the Rheinmetall executive board, said partnering with two local businesses marks a milestone in the plan to build an artillery plant in Baisogala eldership. The German firm holds 51 percent of the JV, Rheinmetall Defence Lietuva, with EPSO-G holding 48 percent and GGG holding 1 percent.
Violeta Kasetiene, GGG interim manager, said the deal will strengthen his company’s portfolio and impact Lithuania’s defense industrial base. “This partnership project … also contributes to ensuring the country’s security interests,” he said.
Rheinmetall Defence Lietuva will oversee the construction of a 155 mm artillery shells manufacturing facility, which is expected to be operational in 2027 and generate at least 150 new jobs.
EPSO-G Invest CEO Tomas Varneckas says his company’s focus in the project is imparting its knowledge in implementing strategic projects in the infrastructural energy and security space. “Lithuania’s energy independence and security are inseparable from each other, and these are the main strategic directions of the EPSO-G group,” he said.
In June 2024, Lithuanian Economy and Innovation Minister Ausrine Armonaite signed a memorandum of understanding with Rheinmetall to build an ammunition plant in the country. At the time, the official described Rheinmetall’s Lithuanian investment as a “significant step” forward in meeting the country’s defense requirements. She said the company will invest over $196 million in the factory.