The letter of intent on investments in Lithuania was signed on Monday by Prime Minister Ingrida Šimonytė, Finance Minister Gintarė Skaistė, National Defence Minister Laurynas Kasčiūnas and Vice President of the Northrop Grumman Corporation Stephen O’Bryan.
The minister of national defence noted that the letter of intent is not yet a binding agreement, thus specific details would be agreed by the end of the year, another agreement would be signed and manufacturing would begin in over 18 months.
According to the minister, production of 30 mm calibre ammunition is just the first step striving to develop a flexible ammunition production line in Lithuania that is based on the latest technology, so that greater volumes of ammunition could be made faster.
The new ammunition production line would be integrated in the armament factory Giraitės Ginkluotės Gamykla operating in Kaunas district, the defence minister told the public radio LRT earlier on Monday.
According to him, Northrop Grumman investments would reduce Lithuania’s dependence on supply chains, whereas the ammunition could be used by the infantry fighting vehicles Vilkas and supplied to regional partners and Ukraine.
Meanwhile, Finance Minister Skaistė said at the signing ceremony that defence industry development must remain the European Union’s strategic direction and Lithuania is fostering cooperation with key geopolitical partners.
Northrop Grumman is the world’s leading aviation and defence technology company. It is a technology leader in developing, testing and manufacturing 30 mm ammunition.