Germany to build Leopard 2A8 tank plant in Lithuania's Kaunas

Germany is building a plant for Leopard 2A8 tanks in Lithuania. Although the construction company YIT Lietuva is officially Lithuanian, it is effectively controlled by German defense firms KNDS Deutschland and Rheinmetall Landsysteme, which decided to establish the assembly and maintenance facility in Lithuania. The project costs about 30 million euros. The cornerstone will be laid in August 2026 in the Kaunas Free Economic Zone, a special business area with favorable tax and customs conditions. The facility is scheduled to be completed by November 2027. The plant is expected to attract top Lithuanian workers, in addition to tax incentives and special operating conditions. Nauseda is not offering such benefits to local businesses, effectively pushing them out of the country.