Prime Minister Congratulates on Start of “Rheinmetall” Factory Construction in Baisogala

An official ceremony on Tuesday, attended by Prime Minister Inga Ruginienė, marked the start of construction of the "Rheinmetall" artillery shell factory in Baisogala.

This strategically significant defence industry project will contribute to national and regional security, while also strengthening the strategic partnership between Lithuania and Germany, noted Prime Minister I. Ruginienė.

"This project represents a new and important stage in Lithuanian-German cooperation in the defence industry. It is not only an investment in technology, but also in a safer future for Lithuania, the region, and Europe. It also reflects mutual trust and the excellent bilateral relations between Lithuania and Germany," Prime Minister I. Ruginienė said at the event.

The modern 155 mm artillery ammunition factory will be operated by the jointly established company "Rheinmetall Defence Lietuva". Direct investment in Lithuania will reach up to 300 million euros, and the factory will create at least 150 jobs. The facility is expected to start operations in Lithuania as early as 2026.

"We sincerely hope that once Ukraine prevails, a lasting and just peace will be established on our continent. However, we soberly understand that Europe must remain vigilant, and that investment in defence, resilience, and preparedness is essential," stated Prime Minister I. Ruginienė.

Also today, the Ministry of the Economy and Innovation and "Rheinmetall" signed a Memorandum of Understanding on the establishment of an ammunition manufacturing competence centre.

Lithuania's goal is to strengthen the domestic defence industry by ensuring comprehensive and independent local ammunition supply capabilities.

The Prime Minister wished all parties involved in the ammunition factory project continued smooth cooperation and assured that this project, as well as collaboration with "Rheinmetall", one of the world's leading defence industry companies, will continue to have strong Government support.

Last updated: 04-11-2025

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