Lithuania is seeking economically favourable terms in negotiations with German defence manufacturer Rheinmetall over plans to build a 155 mm artillery propellant production competence centre worth more than 400 million euros, the head of the government’s investment promotion agency said.
Elijus Čivilis, CEO of Invest Lithuania, said negotiations remain difficult as the government seeks to ensure the project serves the country’s strategic and economic interests.
“I cannot provide specifics, but negotiations are continuing,” Čivilis told BNS. “The biggest challenge is that Rheinmetall is simultaneously implementing many expansion projects and has very limited resources to devote to new ones.”
“We want this to be an economically beneficial project for Lithuania that strengthens our entire supply chain. We do not want a project that does not meet our interests. That naturally makes the negotiations more difficult because we also have our own position,” he said.
Last November, Rheinmetall announced plans to build the propellant production competence centre in Lithuania during a groundbreaking ceremony for its 155 mm artillery shell factory in Baisogala.
