German military industry giant Rheinmetall will invest more than 180 million euros into an ammunition production facility in Lithuania, the Economy and Innovation Ministry said on Monday, LRT reports.

Under an investment agreement signed by Lithuanian Economy and Innovation Minister Ausrine Armonaite and the German company after about 10 months of negotiations, Rheinmetall is also expected to create at least 150 jobs in Lithuania.

“Rheinmetall establishing operations in Lithuania is a significant step towards meeting our country’s immediate defence and security needs,” Armonaite was quoted as saying in the statement. “It will help us to ensure uninterrupted access to essential weapons and ammunition, as the products that European defence needs will be produced on Lithuanian soil.”

The new plant is expected to produce tens of thousands of rounds of ammunition per year. The project has been granted the status of state importance, and its specific location will be announced over the upcoming weeks. Deputy Transport and Communication Minister Julius Skackauskas said last week that the construction of the Rheinmetall plant should start in October.