Lithuania has awarded YIT Lietuva a €30 million contract to construct a Leopard 2A8 tank production and maintenance facility at the Kaunas Free Economic Zone. The nearly 10-hectare site will support assembly and maintenance of Leopard 2A8 tanks and other heavy military equipment for the Lithuanian Armed Forces. Construction is scheduled to begin in August and finish by November 2027, with the first locally assembled Leopard 2A8 expected in late 2028. The facility is expected to create around 100 jobs, including production and administrative positions. Lithuania Defence Services, a joint venture established by KNDS Deutschland and Rheinmetall Landsysteme, is developing the site as part of a broader regional maintenance and logistics hub for NATO military vehicles. Lithuania ordered 44 Leopard 2A8 tanks from KNDS Deutschland under a €950 million contract signed in 2024. The acquisition supports the creation of additional armored battalions and strengthens interoperability with NATO forces. The new facility will improve local sustainment capacity while reinforcing Lithuania’s role in regional armored vehicle support.
