It is planned that the new production line of cartridges will be launched in 2027. This will require a total of EUR 36 million, which the Ministry of Finance will allocate from its appropriations to increase the share capital of the company. The first investment of EUR 11 million is planned to be made later this year, following the approval by a resolution of the Government.
” We agree unanimously that we need to pay more attention to strengthening our national defence and security. With increasing production volumes of AB Giraitė Ammunition Plant and investing in the production of cartridges, in a few years, the Ministry of Finance will contribute by EUR 36 million. This will allow to double the production capacity of cartridges and respond to the increased need to strengthen the defence industry in our region as a result of the war in Ukraine”, says Minister of Finance Gintarė Skaistė.
AB Giraitė Ammunition Plant produces small calibre cartridges – high-quality military cartridges that meet NATO standards and are intended for the civilian market. Currently, the company can produce up to 60 million cartridges per year. The construction of another production line would double the current production capacity, allowing the company to produce up to 120 million cartridges per year and increasing the company’s turnover to EUR 50 million. Moreover, an increase in production capacity would also increase the company’s efficiency ratios.
The strategic objective for this state-owned company is to expand production capacity, to attract investors and, in parallel, to develop the range of ammunition, their production and supply. The strengthening of the company's capital should contribute to the company's financial capacity to implement other defence industry investment projects in the future.
In order to increase production volumes, AB Giraitė Ammunition Plant has already invested EUR 2.3 million in increasing the permeability in 2022, removing restrictions in the cartridge assembly chain. Currently, the company is engaged in the second stage of development of production, eliminating restrictions on the assembly of bullets, which will allow to increase production volumes up to 35 %. These works are planned to be completed by the end of 2025, allocating EUR 2.6 million from the company's own funds and borrowed funds.
Additional information:
AB Giraitė Ammunition Plant has implemented an integrated quality management system conforming to ISO 9001:2015 and ISO 14001:2015 standards. The cartridges manufactured by the company are certified by the British Proof House Laboratory, undergo periodic inspections, and the certificates issued give the right to affix the C.I.P. mark to the cartridges.
