by LINAS JEGELEVIČIUS
The 340-hectare factory, costing around €180 million, will be dedicated to producing 155 mm artillery shells, urgently needed by NATO allies and Ukraine. “Construction is proceeding according to plan,” David Ginster, Media Relations Manager at Rheinmetall, told the Baltic Business Quarterly (BBQ) without elaborating. The joint venture, “Rheinmetall Defence Lietuva,” will be 51 percent owned by Rheinmetall, while Lithuanian partners, including state energy group EPSO-G, will hold the remaining 49 percent. The Mayor of Radviliškis District, Kazimieras Račkauskis, told the BBQ that the municipality is taking its role in the construction of the Rheinmetall factory very seriously. “Therefore, we are taking all the necessary preparatory steps and are actively participating in the process,” he said, emphasising that this project is not only about defence production but also about revitalising the Radviliškis region. Radviliškis Municipality is home to about 33,000 residents. “One of our first steps is to ensure convenient and safe access to the future factory. Road design services have already been purchased for the roads leading to the planned site near Baisogala. We hope to receive funding from the Road Maintenance and Development Programme administered by the Ministry of Economy and Innovation, so that this work proceeds smoothly. The improved roads will not only serve the factory but will also benefit the people of our district, making daily travel easier and improving safety,” said the mayor. Lithuania has said this week it expects the first production lines to go live in early 2027 – slightly later than the previous deadline, mid-2026.
Declared a project of state importance by the Lithuanian government, the facility represents one of the most significant industrial and security investments in the country in recent years. Once operational, the plant is expected to produce tens of thousands of rounds annually, making a substantial contribution to European defence capabilities. “Unfortunately, for contractual reasons, we are unable to comment on production capacity,” Ginster stated. As the factory will require a powerful electricity connection supplying 25 megawatts, the municipality is already preparing an investment project. Once funding is secured, the municipality will launch public procurement for both design and construction works. According to the plan, the electricity connection is set to be installed within the next year. However, the local people are the mayor’s greatest concern. “It is essential that this project delivers direct benefits to local businesses. That is why Radviliškis municipality, without waiting for the start of construction, initiated a meeting between representatives of the Radviliškis District Business Association and EPSO-G Invest (a wholly owned subsidiary of the state-owned EPSO-G energy group – BBQ),” the mayor said. Mindaugas Keizeris, CEO of stateowned energy group EPSO-G, said on 15 September that preparatory work on the site was set to start in “the coming weeks.” Despite the slower-than-expected start, he emphasised that the project remains on track, BNS and LRT.lt reported. According to the mayor, the project will create about 150 new, wellpaid jobs, with recruitment focused on skilled engineers, technicians and logistics professionals.
