Today marks the symbolic start of the construction works on a 155 mm artillery ammunition factory.
The ceremony was attended by President Gitanas Nausėda, Prime Minister Inga Ruginienė and other members of the Cabinet, Rheinmetall CEO Armin Papperger, EPSO-G CEO Mindaugas Keizeris, Radviliškis district municipality leaders and other guests.
Gitanas Nausėda, the President of the Republic of Lithuania: “For Lithuania, this state-of-the-art artillery ammunition production facility, the largest defense investment in country’s history, is not merely an industrial project. It is a strategic step aimed at building deterrence as a precondition for peace. Today, we witness how the Zeitenwende, proclaimed in Berlin, materializes on the Lithuanian soil in steel, technology and, most importantly, in trust.”
“The future plant is a key element in strengthening the defensive capabilities and security of Lithuania and the wider region. It will help meet our own and our allies' needs, fostering closer cooperation between Lithuania and Germany – two exemplary strategic partners. I am confident that the success of this project will encourage and pave the way for new partnerships, all aimed at enhancing security – the priority of our time,’ says the Prime Minister of Lithuania Inga Ruginienė.
“The new plant in Lithuania will be of strategic importance not only for Lithuania itself, but also for Europe and NATO,” said Armin Papperger. “The security of our country and our allies is a matter of urgent concern to us all. We are grateful for Lithuania's trust and support. I promise that we at Rheinmetall will do our part to ensure operational readiness here on NATO's eastern flank.”
Energy transcends sector boundaries
“Energy goes beyond the boundaries of this sector. Today, energy security and national security are two inextricably linked areas. The EPSO-G Group has demonstrated its leadership by implementing strategic energy projects, such as the synchronisation with the Continental European network, and is now doing so again by participating in a project of significance for both Lithuania’s and Europe’s security, while also integrating renewable energy,” says Minister of Energy Žygimantas Vaičiūnas.
According to Minister Vaičiūnas, attracting industry like this is important not only for national security and the economy, but also for the energy sector, as it contributes to the development of renewable energy sources (RES) - the plant is energy-intensive, and higher electricity consumption helps to drive the expansion of RES. When developing the project, a key objective was to produce at least part of the electricity on-site. This year, a memorandum was signed on the use of RES for the plant’s needs. Plans are already under way to install a 2 MW solar farm nearby, with the possibility of adding electricity storage systems to be considered in the future.
The new energy group EPSO-G and the companies Valstybės Investicinis Kapitalas and Giraitės Ginkluotės Gamykla are also participating in the construction project for the plant, which will be operated by Rheinmetall Defence Lithuania. According to EPSO-G CEO Mindaugas Keizeris, this demonstrates strong cooperation between state-owned enterprises in implementing strategic goals.
“As a state‑owned energy group, we feel a responsibility to contribute to Lithuania’s resilience not only in the energy sector, but also in the defence industry. With this project, we are applying our accumulated experience in implementing strategic‑level energy and security infrastructure projects,” says Mr Keizeris.
Ammunition production is planned to start at the end of 2026
The plant near Baisogala is expected to start operating at the end of 2026 and will be able to produce tens of thousands of 155 mm caliber artillery ammunition rounds annually. Depending on the volume of orders, production volumes will be gradually increased from 2027. Local industry and suppliers will also be involved in the construction and operation of the factory.
The investment in the plant is expected to reach up to €300 million. The plant is expected to create at least 150 new direct jobs in the region.
In December of last year, representatives of Rheinmetall, EPSO‑G Invest, and Giraitės Ginkluotės Gamykla officially signed a Shareholders’ agreement of Rheinmetall Defence Lietuva, which will build the 155-mm artillery ammunition plant. The agreement stipulates that 51 % of the shares in Rheinmetall Defence Lietuva belong to Rheinmetall, 48 % – by EPSO‑G Invest, and 1 % – by Giraitės Ginkluotės Gamykla.
