VILNIUS, Jan. 29 (Xinhua) -- The chief executive officer (CEO) of German defense industry giant Rheinmetall signed a green energy deal with top Lithuanian executives during his first official visit to Vilnius on Wednesday, the Baltic News Service (BNS) reported.
After meeting with Lithuanian Prime Minister Gintautas Paluckas, Rheinmetall CEO Armin Papperger signed the agreement with Epso-G Invest, part of Lithuania's state-owned energy group Epso-G, and Giraites Ginkluotes Gamykla.
The agreement commits to using green electricity, storage systems, and if required, biogas at a factory in the small northern town of Baisogala, Epso-G told BNS.
Papperger told BNS that Rheinmetall also sees further opportunities to invest in Lithuania for ammunition or defense production in the future.
"Rheinmetall is prepared for that, and I think a combination of vehicles, other ammunition and power systems is possible," Papperger said.
German arms manufacturer Rheinmetall and two Lithuanian companies have finalized a joint venture deal for a 155 mm artillery ammunition plant in Lithuania in December. Under the agreement, Rheinmetall will hold a 51 percent stake in the newly formed Rheinmetall Defense Lithuania, while Epso-G Invest will control 48 percent and Giraites Ginkluotes Gamykla will have a one percent share.
Papperger expects that half of the production output from Rheinmetall's planned factory will remain in Lithuania, while the rest will be exported to other European countries and beyond.
The 260-million-euro (270.4 million U.S. dollars) ammunition factory project is expected to be completed by the end of 2026. (1 euro = 1.04 U.S. dollar) ■