Lithuania to Double Production of Ammunition for Small Arms
The Lithuanian government has decided to invest €11.16 million to double the production of small arms ammunition in the country, LRT reports.
The capital of the state-owned manufacturer Giraitės Ginluotės Gamykla (GGG) will double to 22.3 million euros.
According to Finance Minister Gintarė Skaistė, whose ministry is the sole shareholder of the plant, the capital increase is one of the key steps the state is taking to ensure a greater supply of ammunition.
‘This means that GGG will be able to double its ammunition production,’ said Skaistė, adding that an additional production line will be built at the Kaunas plant.
The Ministry of Finance plans to allocate a total of €36 million until 2027 to expand GGG's capacity.
The new line, scheduled to be launched in 2027, is expected to double the plant's annual production from 60 to 120 million rounds and more than double its revenue to €50 million.
At the end of September, GGG also signed a memorandum of understanding with US defence giant Northrop Grumman, which plans to install a 30mm ammunition production line at the plant by mid-2026.
The government's €36 million investment and the planned participation of the US company are said to be separate projects.
According to Skaistė, GGG is seen as a potential partner of German defence giant Rheinmetall, which plans to build an artillery ammunition plant in the northern Radviliškis region of the country.
The small-calibre shells produced by GGG, the only ammunition factory in the Baltic States, are used by civilians, the military, law enforcement and NATO forces.
On 16 April, Lithuania signed a memorandum of understanding with German defence concern Rheinmetall, which lays the groundwork for the construction of an artillery ammunition plant in the country.
Rheinmetall will invest over €180 million in the construction of the plant.