Lithuania’s defence industry takes root as investor interest grows

Lithuania’s defence industry is becoming established as more international military factories are set up, while foreign companies are showing growing interest in investing in the country, Defence Minister Robertas Kaunas told LRT radio on Thursday, LRT reported.

Tank, 155 mm ammunition and drone factories being built or opened signal that defence manufacturing is becoming part of Lithuania’s economy, Kaunas said. He said the industry could strengthen military supply chains, support the economy, create jobs and generate tax revenue.

The minister said investments underway now would produce more visible results in two to three years. Decisions made at the start of the current term were already delivering tangible results, he said.

Kaunas said foreign defence companies, including US defence company Lockheed Martin, see potential in Lithuania and the region. Talks are taking place with potential Lithuanian partners, he said, adding that the country has highly qualified specialists and established laser and optics industries relevant to defence.

The start of construction of a Leopard 2A8 tank assembly and repair factory was due to be formally marked on Thursday at the Kaunas Free Economic Zone. The 13,000-square-metre factory is planned to assemble and service Leopard 2A8 tanks and other heavy equipment used by the Lithuanian army.