Lithuania begins construction of Leopard 2A8 tank assembly plant

Construction has begun on a 13,000-square-meter facility in the Kaunas Free Economic Zone dedicated to the assembly and maintenance of Leopard 2A8 tanks and other heavy military equipment for the Lithuanian Defense Forces. The project is being commissioned by Lithuania Defence Services, a joint venture established in 2022 by German arms manufacturers Rheinmetall and Krauss-Maffei Wegmann (KNDS).

Construction is being carried out by YIT Lietuva at a cost of 29 million euros, with completion scheduled for November 2027. The first tank assembled in Lithuania is expected to roll out by the end of 2028. The facility will initially assemble 38 of the 44 Leopard 2A8 tanks purchased by Lithuania, while the remaining units will be produced in Germany.

As part of the project, a share transfer agreement was signed allowing the Lithuanian state-owned company EPSO-G Invest to become a partner in Lithuania Defence Services. Under the agreement, EPSO-G Invest will hold a 25.1% stake, while KNDS Deutschland and Rheinmetall Landsysteme will each hold 37.45%. The total planned investment for the project is approximately 50 million euros, and the factory is expected to create up to 100 jobs.