Minister of Finance T. Valys: “Doubling cartridge production capacity will reinforce security of Lithuania and the entire region”

Minister of Finance Taurimas Valys, after his visit to AB Giraitė Armament Plant (GGG), emphasised that the launched construction of the second cartridge production line worth EUR 36 million marked a new stage in the development of the Lithuanian defence industry. According to the Minister, after implementation of this project, the company will be able to double production volumes, expand production range and enter new export markets.

“A new small calibre cartridge production line is a strategic step that takes our defence industry to a higher level.  Doubling production capacity will not only directly reinforce security of Lithuania and the entire region, and will reduce dependence on external suppliers, but also will open up new markets. By investing in local production, we simultaneously increase the value of the state company, create high added value jobs and ensure a stable economic return to the country”, Minister of Finance Taurimas Valys said.

The Ministry of Finance has drawn up a draft Government Resolution to recognise this AB GGG expansion project of importance to the State. The project will involve the acquisition of new production equipment, the installation of the second ammunition production line and the modernisation of quality control and support infrastructure. This will allow the company to increase its production capacity from the beginning of 2028 and to double it till 2029. It is estimated that the income from the sale of manufactured products will increase from EUR 28 million last year to at least EUR 59 million in 2029, and EBITDA will increase from EUR 4.9 million up to at least EUR 13 million. 

In order to ensure further enforcement of the defence industry and financing of strategic projects, already next week Minister of Finance T. Valys will visit Finland where he will meet President of the Nordic Investment Bank (NIB) André Küüsvek to discuss the NIB’s possibilities to finance future AB GGG expansion stages and other important Lithuania’s defence and security infrastructure projects.   

“In the coming years, Lithuania and our entire region will need extremely large investments in defence infrastructure, military mobility and security, so here we see an important role of the Nordic Investment Bank. The Bank's growing focus on defence is perfectly suited to today's challenges, and the value is not limited only to financing, as the Bank’s regional perspective and experience makes it an exclusive partner.  That's why during my visit to Finland, we will discuss possibilities for cooperation to ensure further financing of such strategic projects as the expansion of Giraitė Armament Plant”, Mr T. Valys emphasised.

The second cartridge production line should be operational in III Q of 2027

The AB GGG expansion project will involve the installation of about 2,800 m2 of additional production and storage facilities. It is planned to construct two new extensions of the production building with a total area of approximately 2, 500 m2. They will be equipped with storage facilities for raw materials, additional production facilities and storage facilities for electric forklifts. Also, the finished goods warehouse will be expanded to 300 m2. These changes will allow for the increase of production capacity, more efficient management of raw material and production flows and preparation for production of new products.

Wastewater treatment equipment is being replaced, also indoor shooting range facilities and equipment are being renovated already in August. Until the cold season, AB GGG plans to replace the roof covering of the existing production building and install bored piles for the new premises. The construction work is intended to be completed in II Q of 2027. Then the production equipment will be installed and started. The second line should start operating at full capacity in III Q of 2027.

The goal of AB GGG is to be one of the centres of gravity of the defence industry of Lithuania

According to AB GGG Head Mindaugas Kurauskas, in recent years the company has invested in bullet production and other technological equipment, also presented to the market a new anti-drone cartridges for standard NATO weapons. These investments allowed not only for enhancement of production efficiency, but also expansion of product range.

“Our goal is to be not only a producer of ammunition, but also one of the centres of gravity of the defence industry of Lithuania around which a wider defence industry ecosystem could develop and grow. In cooperation with international defence industry manufacturers, we aim to build new production capacity, skills and jobs in Lithuania. All this together is an investment in Lithuania’s security and strategic autonomy of our country”, AB GGG Head M. Kurauskas said.

The company further makes investments in the security of the plant. The undertaking already has state-of-the-art physical protection solutions in place and plans to install drone detection systems in the near future. They will be integrated into a common Lithuania’s airspace monitoring system and will contribute to critical infrastructure protection. 

In November last year, the Ministry of Finance increased the share capital of AB GGG – the sole cartridge manufacturer in the Baltic states – up to EUR 47.5 million. This investment of the Ministry (EUR 25.2 million) aims to expand production volumes and to develop the capabilities of Lithuania's defence and security industry. In autumn 2024, the Ministry of Finance invested EUR 11.2 million in expansion of production volumes of AB GGG.

For more than two decades, AB Giraitė Ammunition Plant specialises in the production of high-quality cartridges, and its products are recognized in the international market. The company not only expands production volumes, but also actively participates in international initiatives related to the development of the defence industry. Its products are exported to more than 30 countries. The company’s strategic goal is to expand capacity, attract foreign investments, diversify production and ensure security of supply.

The shareholder of the AB Giraitė Ammunition Plant is the State of Lithuania, which owns 100% of the company’s shares. The rights and duties of the shareholder are exercised by the Ministry of Finance, which today acts as the main financial and strategic partner of the defence industry. 

Last updated: 31-08-2026

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