Lithuania takes another step towards strengthening its defense sector. The Lithuanian Minister of Economy and Innovation has signed an agreement announcing the arrival of Rheinmetall, the German military industry giant, to Lithuania. The project has been granted the status of state importance.

The site of the investment project should be announced in the upcoming weeks, whereas the plant is expected to produce tens of thousands of rounds of ammunition per year.

To ensure Lithuania’s security, the Ministry of the Economy and Innovation has also initiated legal amendments that facilitate the development of large-scale projects. The amendments simplify territorial planning, land procurement, and construction procedures.

The Green Corridor initiative for large-scale investment projects, developed by the Ministry of the Economy and Innovation and launched in 2021, makes it easier and quicker for investors to set up operations in Lithuania, granting their project a status of state importance and a 0% corporate tax rate for a period up to 20 years.

The Ministry of the Economy and Innovation has already signed contracts for 14 large-scale investment projects, which will create nearly 4,000 jobs and attract more than €1.25 billion in investment.