Lithuanian construction firm YIT Lietuva has secured a €30 million ($34 million) contract from Lithuania Defence Services to construct a new Leopard 2A8 production and maintenance facility in the Kaunas Free Economic Zone. Designed to support the Lithuanian Armed Forces, the facility will assemble and maintain Leopard 2A8 tanks as well as other heavy military equipment. Work on the nearly 10-hectare site will begin in August under a design-and-build contract, with completion scheduled for November 2027. Once operational, the plant is expected to employ around 100 people, including 70 production workers and 30 administrative staff. The first domestically assembled Leopard 2A8 is planned to leave the production line by the end of 2028. The facility will be operated by Lithuania Defence Services, a joint venture established in 2022 by KNDS Deutschland and Rheinmetall Landsysteme to strengthen maintenance, repair, and logistics support for NATO armored vehicles throughout Lithuania and the wider Baltic region. Strengthening Lithuania’s Armored Capabilities Lithuania finalized a €950 million ($1.08 billion) deal with KNDS Deutschland in December 2024 to acquire 44 Leopard 2A8 main battle tanks. The procurement aims to establish new armored battalions and improve operational compatibility with NATO forces that already field the Leopard platform. The Leopard 2A8 was selected over competing designs, including the US M1 Abrams and South Korea’s K2 Black Panther. Featuring a four-member crew, the 11-meter-long main battle tank is equipped with a 120 mm L55 main gun, a machine gun, a multi-purpose grenade launcher, and a remote weapon station. It also supports modular protection packages against anti-armor weapons, mines, and improvised explosive devices. Powered by a 1,500-horsepower MTU engine, the Leopard 2A8 has a maximum speed of 60 km/h and an operational range of roughly 400 kilometers. Advanced sensors, thermal imaging, laser rangefinding, day-and-night vision, onboard cooling, and a 20-kilowatt power system further enhance its battlefield performance.
