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# Lithuania Breaks Ground on €50M Leopard 2A8 Assembly Plant
- URL: https://www.adriadefense.com/lithuania-breaks-ground-on-eur50m-leopard-2a8-assembly-plant/
- Published: 2026-10-06T07:00:01.000Z
- Updated: 2026-10-06T07:00:01.000Z
- Description: Lithuania has started construction of a €50 million Leopard 2A8 assembly and repair plant in the Kaunas Free Economic Zone.
- Author: AdriaDefense Desk
- Tags: Lithuania, CEE, Baltic States, Rheinmetall, KNDS, Defense Industry, Industry

Lithuania has started construction of a Leopard 2A8 main battle tank assembly and repair plant in the Kaunas Free Economic Zone, moving a major defense-industrial project from planning into physical development.

A groundbreaking ceremony was held on October 1 for the facility, which is being developed by Lithuania Defense Services, the joint venture established by KNDS Deutschland and Rheinmetall Landsysteme. Lithuania expects total investment in the project to reach around €50 million.

The Lithuanian Ministry of Economy and Innovation said the project is expected to create around 80 new jobs and establish domestic capacity for both assembly and long-term maintenance of heavy military equipment.

The production building will cover approximately 13,000 square meters on a site of almost 10 hectares. Construction of the building is valued at around €29 million and is scheduled for completion in November 2027.

The first Leopard 2A8 assembled in Lithuania is expected by the end of 2028.

Lithuania has ordered 44 Leopard 2A8 main battle tanks for its planned tank battalion. Under the revised procurement and industrial cooperation framework, all 44 tanks are scheduled for delivery to the Lithuanian Armed Forces by 2030.

The project also expands Lithuania Defense Services beyond its existing maintenance and repair activities. The company has already been involved in servicing NATO-standard heavy equipment in Lithuania, including Leopard tanks.

Lithuania is also preparing to take a direct ownership position in the company. State-owned EPSO-G Invest is set to acquire a 25.1 percent stake in Lithuania Defense Services. Following the transaction, KNDS Deutschland and Rheinmetall Landsysteme are expected to hold 37.45 percent each.

The facility is intended to support more than Lithuania’s national tank fleet. It is also expected to provide maintenance capacity for heavy equipment operated by the German brigade stationed in Lithuania and could take on work for other regional customers.

The start of construction marks a concrete step beyond Lithuania’s earlier commitment to establish local Leopard 2A8 assembly. In March, AdriaDefense reported that the government had included domestic Leopard assembly in its 2026 defense funding and industrial plans.

For Lithuania, the longer-term value of the project will extend beyond the initial tank deliveries. Local assembly, repair and sustainment capacity could give the country a permanent role in the Leopard support network on NATO’s eastern flank.