Lithuanian defense or economy ministries should control state-owned defense cos - MP

VILNIUS - Lithuania's state-owned defense industry companies should be brought under the control of the Defense Ministry or the Economy and Innovation Ministry, Giedrimas Jeglinskas, chairman of the parliamentary Committee on National Security and Defense (CNSD), said on Monday.

Jeglinskas believes that Giraites Ginkluotes Gamykla (Giraite Armament Plant, GGG), located in Kaunas District, and Detonas, an explosives manufacturer registered in Kaunas with units in Pakruojis and Akmene, should not be subordinate to the Finance Ministry

According to him, these companies need military experts and more investment.

"The issue of jurisdiction over certain state-owned defense industry companies must be raised in a broader context. The question is why GGG is under the Finance Ministry and Detonas is under the Transport Ministry," Jeglinskas told reporters after the CNSD held a closed-door discussion on the development of the defense industry.

"Subordination should reflect today's geopolitical realities and the direction of production," he added.

According to Jeglinskas, such companies should have more specialists with knowledge of warfare, not just commerce.

GGG holds a 1 percent stake in Rheinmetall Defense Lithuania, a joint venture being set up by Germany's defense giant Rheinmetall and Epso-G Invest, a subsidiary of Lithuania's energy group Epso-G, to carry out a 300-milion-euro artillery ammunition factory project in Baisogala, a small town in the northern district of Radviliskis.

Additionally, the US defense giant Northrop Grumman plans to build a 30 mm caliber ammunition production line at the Giraite factory site. The Finance Ministry plans to allocate 36 million euros by 2027 to expand GGG's capacity. Last year, the factory's capital was doubled to 22.3 million euros.

Detonas plans to start building a 28-million-euro TNT production facility in the northern part of the country this year. The factory, which will produce 1,000 tons of TNT annually, is estimated to cost 28 million euros and is expected to be completed within two years.