Rheinmetall Lithuanian Artillery Plant: Baisogala, Lithuania – The development of the German-Lithuanian artillery plant in Baisogala has taken a significant step forward with the signing of a partnership agreement. On December 20, 2024, representatives from German defense technology giant Rheinmetall, the Lithuanian energy transmission and exchange group EPSO-G, its subsidiary EPSO-G Invest, and the Lithuanian company Giraitės ginkluotės gamykla finalized the agreement. This crucial step establishes the framework for Rheinmetall Defence Lietuva, the joint venture responsible for building the 155-mm artillery shell manufacturing facility.
Under the terms of the agreement, Rheinmetall will hold a majority stake of 51% in the joint venture, while EPSO-G Invest will own 48% and Giraitės ginkluotės gamykla will hold 1%. This strategic partnership marks a significant milestone in the project, following the recent land lease agreement and the procurement of 155-mm ammunition.
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Armin Papperger, Chairman, Rheinmetall.
“At the end of November, we signed a contract for the lease of a land plot for the future factory in the Radviliškis district and the purchase of 155 mm ammunition,” stated Armin Papperger, Chairman of the Rheinmetall executive board. “With the signed agreement with our Lithuanian partners, we have completed another very important stage and will now plan the construction of the new factory and prepare it for operation together.”
This collaboration aligns with Lithuania’s strategic focus on enhancing national security and reducing reliance on foreign arms supplies. Tomas Varneckas, CEO of EPSO-G Invest, emphasized the importance of this project within the company’s broader strategic objectives. “Lithuania’s energy independence and security are inseparable from each other and these are the main strategic directions of the EPSO-G group,” said Varneckas. “In this project, we will use our accumulated experience in implementing strategic infrastructural energy and security projects.”
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Violeta Kašėtienė, interim manager of Giraitės ginkluotės gamykla, highlighted the significance of this partnership for the Lithuanian defense industry. “The involvement of the Giraitė Armaments Factory in this project is a significant step, opening up new opportunities for cooperation with one of the world’s leaders in the defense sector,” stated Kašėtienė. “This partnership project not only strengthens our competencies and role in the Lithuanian defense industry, but also contributes to ensuring the country’s security interests. From an economic point of view, this is a targeted development step, strengthening the potential of the Lithuanian defense industry and promoting its further development.”
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The plant near Baisogala is expected to commence operations within two years. Upon completion, it will have the capacity to produce tens of thousands of 155-mm caliber artillery shells annually. With an estimated investment of €260 million, the project is anticipated to create at least 150 new direct jobs in the region, providing a significant boost to the local economy. This joint venture between German and Lithuanian entities signifies a crucial step towards strengthening Lithuania’s defense capabilities and enhancing regional security.
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