VILNIUS, April 17 (Xinhua) -- The Lithuanian government and German arms manufacturer Rheinmetall signed a letter of intent on Tuesday to construct an ammunition factory in the Baltic country, according to Lithuania's Ministry of National Defense.

The document was signed by Economy and Innovation Minister Ausrine Armonaite, Defense Minister Laurynas Kasciunas, and Maximilian Froch, director of Strategic Program Organization International at Rheinmetall.

Armonaite told BNS news agency on Monday that Lithuania expects the construction of the 155mm ammunition factory to start later this year.

Lithuanian President Gitanas Nauseda welcomed the project as an essential step toward beefing up the country's defense industry, according to BNS.

Government officials have confirmed that the state-owned land operated by the Lithuanian University of Health Sciences near the town of Baisogala in Radviliskis district is being considered as a location for Rheinmetall's ammunition factory.

Local media reported that Radviliskis's district mayor has welcomed the project, saying it would boost the region's economy.

However, the local community of Baisogala is cautious about the plan, voicing reservations about the military facility. Enditem

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