Lithuania to invest €36 million into ammo plant expansion

10 October, 2024 Ammunition produced by the Lithuanian GGG plant. Photo credits: Miske.lt The Lithuanian government will allocate EUR36 million to expand the capacity of the state-owned ammunition manufacturer Giraites ginkluotes gamykla (GGG) until 2027.

The Ministry of Finance of Lithuania announced this on Thursday, LRT reports. It is expected that EUR11.2 million will be allocated this year after the government's approval. The funds will enable the plant to start installing the new production line earlier than originally planned.

The new line, which will double the capacity of the ammunition plant, is expected to be commissioned by 2027.

Ammunition production at the GGG plant in Lithuania. Photo credits: Miske.lt

The Ministry of Finance of Lithuania plans to allocate funds from its allocations and increase the authorized capital of the plant. The Lithuanian media reported that at the end of September, GGG signed a memorandum of understanding with the American defense giant Northrop Grumman.

As part of this, a 30-mm ammunition production line is planned to be installed at the plant by mid-2026. However, the Ministry of Finance clarified that the EUR36 million expansion of the state-owned plant's capacity and the American investment are separate projects.

Ammunition produced at the GGG plant in Lithuania. Photo credits: Miske.lt

According to the Ministry, the new production line will help expand the plant's annual production from 60 to 120 million rounds, and the company will be able to more than double its revenues to EUR50 million

The ammunition produced at Giraites ginkluotes gamykla, which is the only such plant in the Baltic States, is used by civilian, military, law enforcement, and NATO structures.

The Ministry of Finance of Lithuania holds 100% of the plant's shares.

Lithuania will also allocate EUR250 million for soft loans for the defense industry to attract more investors to develop the sector.