We advised military vehicle maintenance company Lithuania Defense Services (LDS) on a new phase of its development: the construction of a plant for the assembly and maintenance of state-of-the-art Leopard 2A8 tanks in the Kaunas Free Economic Zone.
Construction of the plant began in October 2026. The Ministry of the Economy and Innovation has granted the project large-scale investment project status, which will enable faster implementation. Around EUR 50 million is expected to be invested and up to 80 jobs created by early 2028.
This strategically important plant will strengthen Lithuania’s national security, improve supply chain resilience, reduce reliance on external suppliers and create substantial long-term added value for the country’s economy as a whole.
The new plant will be particularly important in light of the changing geopolitical landscape and growing security threats in the region, which call for stronger domestic defence industry capabilities. It will also enable some critical defence equipment and related preparation activities to be provided within Lithuania, allowing a faster response to security needs. The project will strengthen partnerships with NATO allies and enhance Lithuania’s long-term resilience.
The Ministry of National Defence also signed a memorandum on industrial cooperation with international partners KNDS Deutschland and Rheinmetal Landsysteme, and representatives of the state-owned energy group EPSO-G, concerning the development of infrastructure for the assembly and maintenance of Leopard 2A8 main battle tanks in Lithuania.
Our team and services
We advised the client on legal aspects of the project’s development, including reviewing the large-scale project agreement, obtaining corporate approvals, completing the formalities and preparatory steps required for signing, amending the articles of association as required to establish operations in the free economic zone, and drafting, reviewing and negotiating the technical supervision and general construction contracts.
Our team consisted of partners Evaldas Dūdonis and Asta Augutytė-Rapkevičienė, senior associate Simonas Šlitas and associate Radvilė Karmanovė.
