01-10-2026

Chancellor of the Ministry of Finance: “Construction of a new defence company consolidates a completely new standard of Lithuania's defence autonomy”

The symbolic capsule of the Leopard 2A8 tank assembly and repair plant has been buried in the territory of Kaunas Free Economic Zone (FEZ). The start of the construction of a modern plant for the assembly of tanks meeting NATO standards marks an important milestone in strengthening the capabilities of Lithuania's defence industry.

According to Ingrida Ragaišienė, Chancellor of the Ministry of Finance, this construction establishes a completely new standard of Lithuania's defence autonomy. It serves as tangible proof that Lithuania's defence industry is successfully expanding and growing, including in the regions.

"Our financial diplomacy has reached the highest level today; not only do we manage our internal resources efficiently, but we are also active on the international stage. Lithuania is one of the most active participants in the European Security Action Facility (SAFE) programme. Decisions have been taken at the initiative of the Ministry of Finance together with EU partners to reallocate EUR 600 million in EU investments directed toward broad state security measures such as civil protection, shelters, and the protection of water storage and medical facilities," the Chancellor of the Ministry of Finance noted.

The Chancellor emphasized that the stability and strength of the state allow making such bold decisions with the status of a large investment project as this one, which entails EUR 50 million investment and the creation of up to 100 highly skilled jobs in Kaunas region.

A company jointly managed by Valstybės investicinis kapitalas UAB and EPSO-G UAB will own 25.1% of the shares of Lithuania Defense Services UAB (LDS), the manager of the Leopard 2A8 assembly and maintenance centre.
Under an industrial cooperation agreement, the German-owned companies Rheinmetall Landsysteme and KNDS Deutschland plan to invest in and develop a tank assembly and repair plant through LDS company. LDS is expected not only to handle the assembly of Leopard 2A8 tanks and the servicing of military equipment but also to service a broader range of armoured vehicles from other allied nations in the future.

"Investments in the development of the defence industry in Lithuania not only strengthen the country's defence resilience but also build its technological autonomy and ensure the growth of investment value," Vaidas Daktariūnas, CEO of Valstybės Investicinis Kapitalas UAB says.

It is expected that in the future the joint Lithuanian-German venture will be able to service not only the armoured vehicle fleet of the German brigade deployed in Lithuania but also fulfil orders from other countries in the region.

It is planned that the first Leopard 2A8 tank ordered by the Lithuanian Armed Forces will be assembled by the new plant in 2028. The remaining tanks are expected to be assembled and handed over to the Lithuanian Armed Forces by the end of 2030. In total, Lithuania has ordered over forty Leopard tanks.