Construction Begins on the Kaunas Leopard 2A8 Plant; EPSO-G Signs for 25.1 Per Cent — "Up to 38" of Lithuania's 44 Tanks to Be Assembled There

Construction Begins on the Kaunas Leopard 2A8 Plant; EPSO-G Signs for 25.1 Per Cent — "Up to 38" of Lithuania's 44 Tanks to Be Assembled There

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by Großwald

Key points

  • Construction of the 13,000-square-metre Leopard 2A8 assembly and repair plant in the Kaunas Free Economic Zone formally began on 1 October, in the presence of President Gitanas Nausėda and the defence minister, Robertas Kaunas; YIT Lietuva is building it for EUR 29 million, to finish in November 2027, with the first locally assembled tank at the end of 2028
  • A share-transfer agreement signed at the ceremony gives state-owned EPSO-G Invest 25.1 per cent of Lithuania Defence Services, with KNDS Deutschland and Rheinmetall Landsysteme at 37.45 per cent each; completion is planned within six months
  • Markus Franz Schmidt, chairman of the company's board: "I think we will assemble up to 38 units here. Six or more will be manufactured in Germany." Lithuania ordered 44 Leopard 2A8 from KNDS in December 2024 for EUR 950 million
  • Schmidt: "We are also ready to support an additional assembly line for new clients in the Baltic region." Construction had been scheduled to start in August

The Kaunas tank hall has a start date, a state shareholder on paper and, for the first time, a share of Lithuania's own order that will pass through it: up to 38 of 44.

In July the building contract was signed and the state's stake was "expected"; on 1 October the excavators and the share transfer arrived together. The plant is a joint venture of the two German land primes, and EPSO-G Invest, the investment arm of the state energy-transmission group, now holds a signed agreement for a quarter of it, to close within six months. Edvinas Grikšas, the economy minister, put it plainly: the state "contributes and becomes a shareholder in important projects like this one." The defence minister called armoured land equipment "an indispensable part of deterring Russia." Lithuania Defence Services puts its total investment at about EUR 50 million and the jobs at up to 100.

The figure that matters for the army is Schmidt's, and he gave it as an estimate: up to 38 assembled in Kaunas, six or more in Germany. With the first Kaunas-built tank due at the end of 2028, the tanks Lithuania receives first will come from German lines; the hall's work begins once the first of the fleet is already in service.

The plant's long-term value lies in the repair half of its name, and Schmidt's offer of a second line for Baltic customers is a bid to give it volume Lithuania's 44 tanks cannot. A hall sized for one fleet of 44, most of it assembled once, has a decade of maintenance work but only a few years of assembly; a regional customer would change that. None is named. Großwald's July dispatch asked whether the state stake had closed: it is signed, and not yet closed. Signal No. 158 recorded the ground-breaking.

Sources:LRT · BNS · tv3.lt · KNDS
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by Großwald

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