Lithuania starts building Leopard tank assembly plant

Lithuania is beginning construction of a plant to assemble and repair Leopard 2A8 tanks in the Kaunas Free Economic Zone, public broadcaster LRT reported. A ceremony in Kaunas district on Thursday will mark the start of the project.

The 13,000-square-metre plant will assemble and service Leopard 2A8 tanks and other heavy equipment used by the Lithuanian military.

President Gitanas Nausėda, Defence Minister Robertas Kaunas, Economy and Innovation Minister Edvinas Grikšas and representatives of Rheinmetall Landsysteme are expected to attend the ceremony in Karmėlava.

YIT Lietuva will design and build the plant for Lithuania Defense Services, a company owned by German defence companies KNDS Deutschland and Rheinmetall Landsysteme. The construction contract is valued at 29 million euros, and work is expected to be completed in November 2027.

The first tank assembled in Lithuania is expected to leave the plant in late 2028. The facility is planned to create up to 100 jobs, including about 70 production roles and 30 administrative positions. More than 120 parking spaces will also be built on the site.

Engineering and architecture company Sweco Lietuva will manage and supervise construction. Lithuania Defense Services said last December that it planned to invest about 50 million euros in the plant.