EPSO-G Invest, a company owned by UAB Valstybės investicinis kapitalas, has signed a memorandum of cooperation in the defense industry with German defense industry groups Rheinmetall Landsysteme and KNDS Deutschland. The memorandum covers a long-term defense industry project in Lithuania.
Under the cooperation agreement, UAB Lithuania Defense Services, which operates in Lithuania and provides military equipment maintenance services in the Jonava district, is planning significant expansion. The company’s shareholders, German capital companies Rheinmetall Landsysteme and KNDS Deutschland, will invest around €50 million in the expansion. It is also expected that EPSO-G Invest will contribute to the investment by acquiring approximately 25.1% of the company’s shares. The specific terms of cooperation and investment will be finalized in 2026.
Significant investments planned in the defense industry
It is expected that the joint venture UAB Lithuania Defense Services will invest around €50 million in the construction of a new military equipment maintenance center in the Kaunas Free Economic Zone (LEZ). The project is expected to create up to 100 well-paid jobs.
The Ministry of Economy and Innovation of the Republic of Lithuania has granted this project the status of a major investment project, which will enable its faster and more efficient implementation. The factory will assemble the most modern Leopard 2A8 tanks and perform maintenance, repair, and servicing of other mobile military equipment. This will ensure the readiness and operational capability of Lithuania’s combat equipment.
In the future, it is expected that the company will be able to service not only the armored vehicle fleet of the German brigade stationed in Lithuania, but also accept orders from other countries in the region.
Investments will speed up the supply of military equipment to the Lithuanian army
Representatives of UAB Lithuania Defense Services say that due to the planned investments and increased production capacity, the first Leopard 2A tank ordered by the Lithuanian army is expected to be assembled as early as the beginning of 2028. The remaining tanks should be assembled and delivered by 2030. Lithuania has ordered a total of 44 Leopard tanks.
According to the agreement signed by Lithuania with the German Federal Ministry of Defense in 2024, implemented under the Cooperative Procurement Arrangement (LEOPARD 2 CPA) initiative, the tanks were to reach Lithuania between 2029 and 2034. However, the planned production capacity will allow all the equipment intended for the Lithuanian army to be manufactured and delivered by 2030.