Ukraine's DEMZ to build major ammunition factory in Lithuania, creating 450 jobs

Lithuania is set to become a significant hub for defense ammunition production with a major investment from a Ukrainian defense sector company, DEMZ. The agreement, signed at the government level, signals a strategic partnership aimed at bolstering security and fostering economic growth.

“

Lithuania's and Ukraine's partnership strengthens not only the security of our states but also creates long-term economic value. Ukraine's decision to build this factory in Lithuania shows confidence in our country and its defense industry potential. This investment will create hundreds of jobs, open new opportunities for Lithuanian business, and strengthen our defense industry's competitiveness. It is an investment in our security and common victory.

The new factory, slated for construction in Alytus and Prienai district, is expected to generate up to 450 jobs. It will manufacture defensive ammunition and its components, adhering to NATO standards. This facility is envisioned as a regional center for production and innovation, developing and testing new products. The primary market will be Ukraine's armed forces, with secondary sales to meet allied defense needs.

Lithuanian officials emphasized the dual benefits of the investment. "This investment creates hundreds of jobs, opens new opportunities for Lithuanian business, and strengthens our defense industry's competitiveness. It is an investment in our security and common victory," stated Prime Minister Mindaugas Sinkevičius. The Minister of Economy and Innovation, Edvinas Grikšas, added that the project aligns with Lithuania's economic development towards high-value, technologically complex, and strategically significant industries, reinforcing the country's role in shaping the future of the defense industry in the region.

“

DEMZ investment shows that Lithuania is not only a safe and capable production site but also a country actively shaping the future of the defense industry in our region. We will continue to support projects of this nature at all stages of their development.

A memorandum also signed between the Ministry of National Defence and DEMZ outlines potential collaboration to leverage the Lithuanian production capacity for further support to Ukraine. This initiative aims to contribute to Ukraine's supply needs and enhance the resilience of European defense supply chains. The Minister of National Defence, Robertas Kaunas, highlighted that the arrival of Ukrainian defense industry enterprises in Lithuania brings not only investments but also new defense capabilities, strengthening Ukraine's ability to defend itself and enabling Lithuania to grow its defense industry and integrate more closely into NATO supply chains.

“

The arrival of Ukrainian defense industry enterprises in Lithuania means not only investments but also real new defense capabilities – from traditional ammunition to modern technological solutions. This strengthens Ukraine's ability to defend itself today, and gives Lithuania the opportunity to grow its defense industry, develop new competencies, and integrate even more closely into NATO defense supply chains. This is an investment not only in Ukraine's victory but also in the security of us all.