Finland’s YIT to Build Leopard 2A8 Production Plant in Lithuania

The Finnish construction company YIT will build a production and service facility for Leopard 2A8 tanks in Kaunas, Lithuania.

This was reported by Yle, citing the company.

Construction will begin in August 2026, and work is scheduled to be completed in November 2027.

The facility, costing approximately 30 million euros, will be built exclusively by YIT, which will carry out the full scope of work — from design to construction. The new plant will be located on a site covering nearly 10 hectares.

It will consist of a main production building and auxiliary structures. The facility will handle the production and maintenance of Leopard 2A8 tanks, which Lithuania is purchasing to form its own tank brigade.

Leopard tanks for Lithuania

In December 2024, Lithuania signed a contract to purchase 44 Leopard 2A8 tanks from Germany. According to the initial agreement, the first tank company is scheduled to arrive in the country in 2029, and a full-fledged tank battalion is planned to be formed in 2034.

As part of this contract, a joint venture called Lithuania Defense Services (LDS) was established in 2022 in partnership with German manufacturers Rheinmetall and Krauss-Maffei Wegmann to support and produce the tanks; the company plans to invest approximately 50 million euros ($57 million) in the project.

By 2028, this will create more than 80 jobs in the country.

LDS already supports and maintains German-made combat vehicles used by Lithuania and its NATO neighbors, and since mid-2022 has also been repairing and modernizing equipment supplied by Alliance partners to Ukraine.

Leopard 2A8

Given the number of customers, the Leopard 2A8 will become one of the most widely adopted variants.

Unlike the A5 version, which was exported only in limited quantities, the A8 version has already been purchased by about a dozen countries, which could potentially place this version second in terms of the number of vehicles ordered, second only to the A4 version.

Against the backdrop of an urgent need for new tanks and the lack of tank production in Europe, except in Germany, countries have placed orders for about 500 A8-version tanks.

Since German tank production was at a minimum prior to the start of the full-scale invasion, KNDS is now actively working to expand its supply chain to meet the increased production pace.

In addition to Lithuania, as already mentioned, Norway, the Czech Republic, Greece, Spain, Sweden, Hungary, and Denmark will participate in the program to build and maintain Leopard 2A8 tanks.

The most significant difference between the Leopard 2A8 and previous versions is the installation of the Israeli Trophy active protection system. Using radar, the system detects anti-tank guided missiles and rocket-propelled grenades approaching the tank, after which it automatically launches a countermeasure that destroys the threat before it hits the vehicle.

The tank also features reinforced modular armor on the hull and turret. Designers paid particular attention to protecting the upper hemisphere, as modern combat operations have demonstrated the high effectiveness of attacks from above using drones, loitering munitions, and modern anti-tank missiles.

Another interesting feature is the addition of side armor. Although Leopard 2 tanks in their standard configuration do not have such side armor, the company installed compact composite modules to protect against automatic cannons and large-caliber machine guns, thereby improving the tank’s survivability.

These screens are significantly smaller and lighter than those offered for the modernized Leopard 2A4M CAN, SG, and RI tanks.

The Leopard 2A8 is equipped with a modernized 120-mm Rh 120 L55A1 smoothbore gun, which can withstand higher pressure in the barrel bore and allows for the use of the latest armor-piercing ammunition, as well as the programming of certain rounds directly in the barrel bore.

The vehicle also features a new digital architecture for its onboard systems. This includes an advanced fire control system, modern thermal imaging sights for the commander and gunner, and upgraded communications and data transmission capabilities, which simplify the tank’s integration into a unified force management system.

Another innovation is the auxiliary power unit, which, since production of the Leopard 2 tanks began, has been featured exclusively in the A8 version, enabling the tank’s systems to remain operational for extended periods even when the main engine is shut off.