One of the world’s largest weapons manufacturers, Northrop Grumman Corporation, plans to build an ammunition production line in Lithuania to strengthen the Baltic nation’s defence industry, as reported by Bloomberg.
On Monday, September 23, the company’s vice president Stephen O’Brien signed a memorandum of understanding with the Lithuanian government in the capital Vilnius. The agreement establishes 30mm ammunition production at a state enterprise that is already in operation.
The Minister of Defence of Lithuania, Laurynas Kasčiūnas, expects that the line will be ready for launch within a year and notes that the ammunition will be used for the infantry fighting vehicles.
This agreement is a continuation of a similar move by Germany, when earlier this year, Rheinmetall AG announced its intention to build a factory for the production of artillery shells. Lithuania is expediting munitions manufacturers’ involvement in response to the increased security threats that have arisen as a result of Russia’s full-scale invasion of Ukraine. Lithuania is expediting munitions manufacturers’ involvement.
“This project, while also strengthening the long-standing close relationship between Lithuania and the US, will create clear value for Lithuania and for our region as a whole, which in the face of security challenges has an interest in minimising dependence on long supply chains,” Lithuanian Prime Minister Ingrida Simonyte said.
By the end of 2026, the world’s largest 15 defence companies expect to double their order flow, reaching $52 billion.
The German weapons manufacturer giant is planning to acquire the American producer of military tracked systems, Loc, against the backdrop of the arms market’s record growth following Russia’s invasion.
President Volodymyr Zelensky also held a meeting with top executives of leading American defence contractors earlier in July at the Embassy of Ukraine in the USA. Representatives from BAE Systems, Day & Zimmermann, Boeing, Sierra Nevada Company, Northrop Grumman, RTX, Lockheed Martin, General Dynamics, D&M Holding, AeroVironment, and Amentum were present at the meeting.
As a result, the Ukrainian company “Ukroboronprom” and the American company Northrop Grumman signed an agreement to establish a new medium-calibre ammunition production facility in Ukraine.
Ukraine and its Western allies must increase ammunition manufacturing in response to the ongoing threats from the Russian Federation.