Rheinmetall and Lithuania announced the construction of a new 155 mm artillery ammunition plant in Baisogala, to be operated by the joint venture Rheinmetall Defence Lietuva, as part of NATO eastern flank security measures.

The project aims to reach an annual capacity for propellant modules at Rheinmetall’s Centre of Excellence and involves a total investment of about 260 to 300 million euros.

Development is a joint effort with Epso-G Invest and Giraitės Ginkluotės Gamykla, with construction awarded to PST Group for roughly 141 million euros and slated for completion by the end of 2026.

The facility is planned to become operational by 2026, with line qualification by year-end 2026 and ramp-up beginning in 2027 depending on orders.

Details on the second factory investment’s size or value were not disclosed.

Local and domestic suppliers will participate in both construction and operation, supporting a phased startup through 2027.

The project is expected to create around 400 jobs across two shifts and includes a propellant charge production facility.

Rheinmetall CEO Armin Papperger said the investment, about 300 million euros, will generate roughly 400 jobs.

Rheinmetall frames the project as a deterrence measure that reinforces NATO and Germany’s rearmament commitments.

The initiative addresses Europe’s powder and propellant bottlenecks, underscoring its strategic importance for defense capability.

Lithuanian President described the negotiations as demonstrating the country’s ambition and potential.

Lithuania’s economy minister said the MoU signals confidence in Lithuania as a safe, reliable environment for investment and growth, with increased industrial capacity.