Germany’s defence industry giant Rheinmetall and two Lithuanian state-owned firms have signed a 260-million-euro joint venture agreement to build a 150mm artillery ammunition plant in the Baltic country.
The final agreement was signed remotely on December 20 by Rheinmetall and Epso-G Invest, a subsidiary of energy group Epso-G, and Giraitės Ginkluotes Gamykla (Giraitė Armament Plant, GGG) on the Lithuanian side.
The signing was publicly announced on Monday.
Under the agreement, Rheinmetall will own a 51 percent stake in Rheinmetall Defence Lithuania, Epso-G Invest will hold a 48 percent stake in the joint venture, and GGG – 1 percent.
“Under the agreement signed, all parties have committed to contribute to the extent foreseen to the implementation of the project,” Epso-G’s representative Gediminas Petrauskas told BNS on Monday.
The preliminary value of the project might still change depending on its progress, he said.
According to BNS, the maximum value of the project is currently estimated at around 300 million euros.
According to Petrauskas, the plant should be built by the end of 2026.
“All parties will do their best to complete the project sooner, but the planned duration is about two years [from the signing of the agreement]. This is written in the agreement,” Petrauskas told BNS.
