New 155 mm artillery ammunition plant plans to use green energy


29-01-2025
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The German defence technology company Rheinmetall, the company EPSO-G Invest, part of the EPSO-G group of new energy companies, and the Giraitės ginkluotės gamykla have signed a Memorandum on the use of renewable energy sources for the future 155 mm artillery ammunition plant in Baisogala.

“The integration of renewable energy is part of Rheinmetall’s sustainability strategy to help reduce emissions from daily operations. We are delighted to support this initiative and to exploit Lithuania’s growing renewable energy potential,” says Armin Papperger, Chairman of the Board of Rheinmetall.

“Renewable energy sources are the foundation of Lithuania’s energy independence and security, and are therefore expected to play an important role in the implementation of the project for a new ammunition plant in Baisogala. We are ready to utilise the EPSO-G group's expertise in integrating renewable energy and related solutions to ensure sustainable and stable production processes,” says Tomas Varneckas, CEO of EPSO-G Invest.

According to Violeta Kašėtienė, the temporary CEO of the Giraitės ginkluotės gamykla, the Giraitės ginkluotės gamykla aims to consistently increase its focus on sustainability in its activities, assessing opportunities to reduce the environmental impact of its operations and contribute to global efforts in the field of environmental protection.

“The ability to ensure smooth production processes through local green energy production capacity is an important part of the country's overall security picture. We hope that this Memorandum paves the way for closer integration of the two strategically important energy and defence sectors and brings benefits to all sides,” said V. Kašėtienė.

The signatories to the Memorandum commit to using green electricity, biogas when needed and energy storage solutions to ensure the reliable and efficient operation of the plant. Future acquisitions of energy resources for the plant should comply with the EU’s Net-Zero Industry Act.

In December last year, the representatives of Rheinmetall, EPSO-G Invest and Giraitės ginkluotės gamykla officially signed a cooperation agreement. It regulates the acquisition of shares in the company Rheinmetall Defence Lietuva, which will build a 155 mm artillery ammunition plant.

The agreement provides that Rheinmetall will own 51% of the shares of Rheinmetall Defence Lietuva, 48% will be owned by EPSO-G Invest, and 1% by Giraitės ginkluotės gamykla.

The plant near Baisogala is expected to be operational in two years and will be able to produce tens of thousands of 155 mm calibre artillery rounds annually. The preliminary investment in the plant is around €260 million. The plant is expected to create at least 150 new employment opportunities in the region.

Last updated: 29-01-2025