(Bloomberg) -- One of the world’s largest weapons manufacturers Northrop Grumman Corporation hopes to help build an ammunition production line in Lithuania to strengthen the Baltic nation’s defense industry.
Vice-President Stephan O’Bryan signed a memorandum of understanding with the Lithuanian government in the capital Vilnius on Monday to manufacture 30 millimeter ammunition at an existing state-owned facility. Defense Minister Laurynas Kasciunas expects the production line to be operational within a year and a half, saying that the ammunition would be used for the NATO member state’s infantry fighting vehicles.
The deal follows a similar entry of Germany’s Rheinmetall AG earlier this year with aims to begin construction of a production plant for artillery rounds. Lithuania is fast-tracking the entry of arms manufacturers to boost an increasingly challenging security environment following Russia’s full-scale invasion of Ukraine.
“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 minimizing dependence on long supply chains,” Lithuanian Prime Minister Ingrida Simonyte said.
The government expects to set up a joint venture with Northrop to produce ammunition at Lithuania’s Giraite facility, Finance Minister Gintare Skaiste said. Further details of the deal are still to be determined in negotiations, said Skaiste.
(Clarifies first deckhead and adds detail on cooperation)
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