Lithuania names Giraitė ammunition line a state-important project

The Lithuanian government has declared the 36.37 million euro expansion of the Giraitė ammunition factory a project of importance to the state, LRT reported. The factory, the only ammunition producer in the Baltic states, is building a second production line.

The new line is expected to increase ammunition output from early 2028. The company plans to double its capacity again in 2029 by installing additional equipment, adding another line and modernising quality control.

The Finance Ministry, which owns the factory, said the expansion would boost production, reduce reliance on external suppliers and manufacturers, and improve ammunition supplies for Lithuania and its allies. Finance Minister Taurimas Valys said the investment would also create highly skilled jobs and bring long-term economic benefits.

The project is budgeted at 36.37 million euros and will be funded from the company’s own resources and, if needed, borrowing. Valys said in August that the factory would seek a loan from the Nordic Investment Bank. The factory began building the second line in late August, with construction and commissioning scheduled for the third quarter of 2027.

Expansion plans include increasing production and storage space from 5,500 to 7,900 square metres and building a new hazardous-waste site, according to environmental assessment documents. The ministry says the existing production infrastructure can accommodate the second line without significant additional investment in buildings.

The company estimates that its revenue will rise from 28 million euros last year to at least 59 million euros in 2029, while EBITDA is projected to increase from 4.9 million to at least 13 million euros. The factory began producing anti-drone ammunition this year, and test batches have been sent to Sweden and France.