Germany's Rheinmetall to Set Up Ammunition Plant in Lithuania

By Mauro Orru

Rheinmetall struck an agreement with the Lithuanian government to establish an ammunition plant in the Baltic nation as the German arms maker seeks to expand production to meet a surge in demand following Russia's invasion of Ukraine.

Lithuania's Minister of the Economy and Innovation Ausrine Armonaite said an investment of more than 180 million euros ($195.3 million) is needed to build the facility, which is expected to produce tens of thousands of rounds of ammunition a year.

"It will help us to ensure uninterrupted access to essential weapons and ammunition, as the products that European defense needs will be produced on Lithuanian soil," Armonaite said.

Rheinmetall executives welcomed the defense agreement at a time when the group is scrambling to ramp up ammunition production, with orders continuing to pour in more than two years into the Ukraine war.

The deal with Rheinmetall comes as Lithuania seeks to amend its legislative framework to facilitate the development of large-scale projects in an effort to attract potential investors from the defense industry.

The ministry said the amendments would streamline land procurement and construction procedures, allowing arms makers to launch operations in Lithuania in the shortest possible time.

Write to Mauro Orru at mauro.orru@wsj.com

(END) Dow Jones Newswires

June 03, 2024 10:59 ET (14:59 GMT)

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