01-10-2026

Historic step for Lithuania’s defence industry as construction begins on ‘Leopard 2A8’ tank assembly and repair plant

Lithuania is set to further strengthen its defence industry. Today, a symbolic time capsule was laid at the Leopard 2A8 tank assembly and repair plant site in the Kaunas Free Economic Zone (FEZ), marking a new stage in the country's defence industry development.

This exceptional project will bolster Lithuania’s national security, increase the resilience of supply chains, reduce dependence on external suppliers, and generate significant long-term added value for the country’s economy as a whole.

'This large-scale project of strategic importance is being implemented exceptionally quickly and is one of the most significant foreign investments in the development of Lithuania’s defence industry. It demonstrates our commitment to creating an environment conducive to strategic investments, allowing them to flourish and generate high-value jobs. The new plant, for which around 50 million euros is earmarked and which is expected to create around 80 new jobs, will not only meet Lithuania’s defence needs, but also strengthen our partnership with the German defence industry and increase Lithuania’s involvement in European defence initiatives,” said Edvinas Grikšas, Minister of the Economy and Innovation, after burying the time capsule.

Given the changing geopolitical environment and growing security threats in the region, the new plant will be particularly important in strengthening the capabilities of the national defence industry. It will also enable Lithuania to carry out activities relating to critical defence equipment and readiness within the country, allowing it to respond more swiftly to security requirements. The project will strengthen Lithuania’s partnership with NATO allies and enhance its long-term resilience.

'This plant is a significant step towards bolstering Lithuania’s defence capabilities and will help to achieve the shared objective of safeguarding our citizens. Heavy military equipment has a service life of decades, so it is important not only to assemble it, but also to maintain it. We will carry out both of these tasks in Lithuania, which means a faster response for the armed forces, a boost to the economy, and new jobs. The factory is the result of joint efforts between Lithuania and Germany, as well as business initiatives,” says Robertas Kaunas, Minister of the National Defence.

The ‘Leopard 2A8’ tank assembly and repair plant is being constructed by the German military equipment maintenance company Lithuania Defence Services (LDS). This project is subject to special investment conditions designed to facilitate faster and more efficient implementation. The Government approved the project in March this year.

The ground-breaking ceremony for the Leopard 2A8 tank assembly and repair plant was attended by Gitanas Nausėda (President of the Republic of Lithuania), Lukas Savickas (Minister of the Energy), Rimantas Sinkevičius (Chair of the Seimas Committee on National Security and Defence) and representatives from the public sector, business, and the armed forces.