Lithuanian firm wins €29m contract to build Leopard tank facility in Kaunas

Lithuanian construction firm YIT Lietuva announced on Monday that it won a €29 million contract to build a Leopard 2A8 tank assembly and repair facility in the Kaunas Free Economic Zone. The agreement was signed with Lithuania Defence Services, a joint venture between Germany's KNDS Deutschland and Rheinmetall Landsysteme.

The 13,000-square-meter plant will handle assembly and maintenance of Leopard 2A8 tanks and other heavy military equipment for the Lithuanian Armed Forces. YIT Lietuva CEO Kęstutis Vanagas stated that the project is significant for the entire country as it strengthens defense infrastructure and ensures future technical readiness of the military.

Sebastian Dietz, CEO of Lithuania Defence Services, said the facility will provide long-term maintenance capabilities for heavy military equipment. The company will be responsible for tank assembly, technical servicing, repairs, and ensuring combat readiness in Lithuania.

YIT Lietuva will oversee design and construction. Construction is scheduled to begin in August 2025 and be completed by November 2027. The first tank assembled at the plant is expected to leave the factory in late 2028. The facility will sit on nearly 10 hectares and create up to 100 jobs, including 70 production and 30 administrative positions.

Lithuania Defence Services announced plans last December to invest about €50 million in the facility. State-owned Epso-G Invest is expected to acquire a 25.1% stake in the company. The project is part of Lithuania's broader efforts to expand its defense industry capabilities amid heightened regional security concerns.