Construction of the Leopard 2A8 plant begins in Kaunas: tanks to be assembled and serviced in Lithuania

The 13,000 sq. m plant is being designed and built by YIT Lietuva for Lithuania Defense Services (LDS), a company owned by the German defense industry companies KNDS Deutschland and Rheinmetall Landsysteme. In addition to the main production building, specialized infrastructure for testing and servicing heavy military equipment will be installed on the nearly 10-hectare site.

During the ceremony, a letter to future generations was signed and placed in a symbolic time capsule. The letter describes the plant not only as an industrial facility, but also as a long-term commitment to strengthening the security of Lithuania and the entire region, while expressing the hope that future generations will live in an era of lasting peace and progress.

The letter was signed by President of the Republic of Lithuania Gitanas Nausėda, Minister of National Defense Robertas Kaunas, Minister of the Economy and Innovation Edvinas Grikšas, Minister of Energy Lukas Savickas, Chair of the Seimas Committee on National Security and Defense Rimantas Sinkevičius, Lithuania Defense Services Chief Executive Officer Sebastian Dietz, Chair of the Board Markus Franz Schmidt, Board members Eduardo-Jansen Veen Martinez and Vilius Semeška, and YIT Lietuva Chief Executive Officer Kęstutis Vanagas.

An agreement on the transfer of LDS shares was also signed at the event. Under the agreement, KNDS Deutschland and Rheinmetall Landsysteme will transfer part of their LDS shares to the state-owned company EPSO-G Invest, making the Lithuanian state an LDS shareholder through this company.

A long-term tank readiness capability is being developed in Lithuania

Lithuania has ordered 44 Leopard 2A8 tanks, the latest version of the model, which will become a key part of the national mechanized division currently being established. The new plant will enable their assembly, maintenance, repair and testing to be carried out in Lithuania.

Speaking at the ceremony, President of the Republic of Lithuania Gitanas Nausėda emphasized the project’s importance for national defense.

“We are all proud that the most advanced main battle tank, the Leopard 2A8, will be produced in Lithuania, in the Kaunas Free Economic Zone. With the establishment of this plant, Lithuania will also gain new industrial capabilities required for the maintenance, repair and overhaul of various types of heavy military equipment, including combat vehicles and artillery systems damaged in Ukraine,” said G. Nausėda.

Russia’s war against Ukraine has demonstrated the importance, in modern warfare, of being able to repair equipment quickly and return it to service. Lithuania has already gained experience in this area: since 2023, Leopard 2 tanks damaged in combat in Ukraine have been repaired at the LDS workshops in Jonava.

According to Lithuania Defense Services Chief Executive Officer Sebastian Dietz, the start of construction marks a new stage in the company’s operations.

“In Jonava, we already maintain and repair heavy military equipment used by NATO, while Lithuania’s Leopard 2A8 tanks will be assembled in Kaunas. The new plant will bring together in one location the infrastructure and expertise required for their assembly, testing, maintenance and repair,” said S. Dietz.

Several tanks brought from Jonava were also on display during the ceremony in the Kaunas FEZ.

Assembly of the latest-generation tanks is also moving to Lithuania

The Leopard 2A8 is the latest version of the Leopard 2 main battle tank. The tanks intended for the Lithuanian Armed Forces will feature enhanced protection, while the most up-to-date electronic and kinetic counter-drone protection solutions available at the time are planned to be integrated during production.

Lithuania is acquiring the Leopard 2A8 together with Germany, and the choice of a common tank platform is also important for the interoperability of Lithuanian and German forces.

At the ceremony, LDS Chair of the Board and KNDS Deutschland Senior Vice President Markus Schmidt emphasized that the plant in Kaunas would also expand the capabilities of Europe’s defense industry.

“We are developing long-term Leopard 2A8 assembly and servicing capabilities in Lithuania. Specialists will also be trained here, strengthening manufacturing expertise and the capacity to maintain the equipment required for Lithuania’s defense,” said M. Schmidt at the ceremony.

The new plant will also strengthen maintenance and repair capabilities in the region. According to Eduardo Veen Martinez, Chief Executive Officer of Rheinmetall Landsysteme, who attended the event, the locally based infrastructure will enable a faster response to the needs of Lithuania and its allies.

“The readiness of military equipment depends on specialists, spare parts and repair capabilities. By developing these capabilities in Lithuania, we will be able to provide more responsive support to the Lithuanian Armed Forces and allied forces deployed in the region,” said E. Veen Martinez.

The specialized plant is being designed and built by YIT Lietuva

The new plant will be built on a nearly 10-hectare site in the Kaunas FEZ. The project, valued at nearly EUR 29 million, is being delivered under a Design-Build model by YIT Lietuva, a sustainable urban development and construction company.

“The placement of the time capsule marks the moment when we begin delivering one of the most strategically important projects currently in our portfolio. This is a highly specialized facility whose infrastructure will have to meet the requirements for the assembly, testing and servicing heavy military equipment, making precise coordination of design, engineering solutions and construction works particularly important. Our responsibility is to manage these tasks as a single process and deliver, on schedule, infrastructure that will serve Lithuania for many years,” said YIT Lietuva Chief Executive Officer Kęstutis Vanagas at the time capsule ceremony.

The complex will comprise the main production building and auxiliary structures. It will be equipped with three overhead cranes, while the site will include a tank test track, an immersion pool with recovery equipment, a tilt-test ramp, and other infrastructure required for the assembly, testing and servicing of military equipment.

The facility is being designed to meet A++ energy performance requirements. Building Information Modelling (BIM) is being used during the design and construction stages to coordinate solutions across the different parts of the project and ensure a smooth construction process.

Project construction management and technical supervision services are being provided by Sweco Lietuva UAB.

Construction is scheduled for completion in November 2027. The plant is expected to create up to 100 working places — around 70 for production specialists and around 30 for administrative staff. The first Leopard 2A8 tank assembled in Lithuania is expected to roll off the production line at the end of 2028.