Lithuania continues to strengthen its national defence industry. Today, a symbolic capsule was buried at the Kaunas Free Economic Zone (LEZ), marking the start of construction for a Leopard 2A8 tank assembly and repair facility, and with it, a new phase in the development of Lithuania’s defence industry.
This critical and strategic facility will enhance Lithuania’s national security and supply chain resilience, reducing dependence on external suppliers while providing high long-term value for the entire national economy.
“This facility is a milestone in strengthening Lithuania’s defensive capabilities and is instrumental to our common goal of ensuring the security of our citizens. Heavy armored equipment remains in service for decades; therefore, maintenance is just as critical as assembly. We will perform both tasks here in Lithuania, which will provide the Armed Forces with shorter response times, boost the economy, and create new jobs. This facility is the result of efforts by our industry partners, as well as close collaboration between Lithuania and Germany,” said Minister of National Defence Robertas Kaunas.
The new facility will be particularly important in the context of the changing geopolitical environment and growing regional security threats, which demand stronger national defence industry capabilities. The project ensures that a portion of critical equipment and its servicing can be provided directly from Lithuania, allowing for a swifter response to security needs. This effort further develops the partnership with NATO Allies and increases Lithuania’s long-term resilience.
“This large-scale, strategically important project was developed exceptionally fast and represents one of the major foreign investments in the growth of the Lithuanian defence industry. It demonstrates our targeted efforts to provide favorable conditions for strategic investors to establish operations in Lithuania, grow, and create high-paying jobs. The new facility, which will soon see an investment of approximately EUR 50 million and create approx. 80 new jobs, will not only meet Lithuania’s critical security needs but will also strengthen our partnership with the German defence sector and deepen Lithuania’s engagement in European defence initiatives,” said the Minister of Economy and Innovation after burying the capsule.
The construction of the Leopard 2A8 tank assembly and repair facility is being implemented by Lithuania Defense Services (LDS), a German military equipment repair company. The project was granted special investment conditions to facilitate faster and more effective implementation. The Government approved the project for implementation in March this year.
The symbolic capsule burial ceremony to kick off the construction was attended by the President of the Republic of Lithuania Gitanas Nausėda, Minister of Energy Lukas Savickas, Chairman of the Parliament’s National Security and Defence Committee Rimantas Sinkevičius, and other representatives from the public sector, business, and the military.
Info credits: Ministry of the Economy and Innovation
