The second ammunition production line at Giraitės ginkluotės gamykla AB, valued at EUR 36 million, has been granted the status of a project of national importance
The Government approved the draft resolution prepared by the Ministry of Finance, which recognised the second ammunition production line of the only ammunition manufacturer in the Baltic States, Giraitės ginkluotės gamykla AB (AB GGG), worth EUR 36 million, as a project of national importance.
According to Minister of Finance Taurimas Valys, this project marks a new stage in the development of the Lithuanian defence industry – once implemented, the company will be able to double production volumes, expand its production range and enter new export markets.
“With the expansion of manufacturing capabilities, Lithuania will strengthen the country’s defence industrial autonomy. These investments not only create highly qualified jobs and increase the value of the state-owned enterprise but also generate long-term economic benefits for the whole country," Minister of Finance T. Valys says.
During the implementation of the AB GGG development project, about 2 800 m2 of additional production and storage facilities will be installed. It is planned to build two new extensions of the production building with a total area of about 2,500 m2. They will be equipped with raw material storage, additional production and electric forklift storage facilities. The warehouse of finished products will also be expanded by 300 m2. These changes will make it possible to increase production capacity, manage raw materials and production flows more efficiently, and prepare for the production of new products.
Construction work is expected to be completed in Q2 2027, after which production equipment will be installed and launched. The second line is expected to become operational in Q3 2027. The preliminary budget of the project is EUR 36.37 million, which will be financed by the company's own and, if necessary, borrowed funds.
The status of a project of national importance enables the factory expansion to be implemented more swiftly and efficiently, ensuring faster execution of design, construction, and other administrative procedures.
AB GGG is the only manufacturer of cartridges in the Baltic States. For more than two decades, it has specialized in the production of high-quality cartridges, and its production is provided to the international market. The company expands production capacity, actively participates in international initiatives and contributes to the development of the country's defence industry. Its products are exported to more than 30 countries. The strategic objectives of the company are to increase production capacity, attract foreign investment, diversify production and ensure security of supply.
The shareholder of AB GGG is the State of Lithuania, and it owns 100% of the company's shares. The rights and obligations of the shareholder are exercised by the Ministry of Finance, which today acts as the main financial and strategic partner of the defence industry.