According to the Ministry of the Economy and Innovation, the investment will create 450 jobs in Alytus and Prienai District. The construction is expected to begin in autumn 2026, whereas production should begin at the end of 2027.
“We all understand that the defence industry is the main pillar that strengthens our ability to protect our country, as well as a sector that creates significant economic value. If we want to be safe, today we must invest in the defence industry, avoid burdening its development with excessive bureaucratic regulation and, equally importantly, build partnerships between like‑minded countries – and today we will witness an example of that,” Prime Minister Mindaugas Sinkevičius said on Friday before the signing of the agreement.
According to him, DEMZ entry into Lithuania is not just a foreign investment but a project important for Lithuania’s national and regional security.
The project is implemented in cooperation with Lithuania having signed an investment agreement with the Ministry of the Economy and Innovation.
The Ministry of National Defence and DEMZ also signed a memorandum of understanding to examine the capabilities of the company founded in Lithuania for further supporting Ukraine.
In Lithuania, DEMZ will produce defensive ammunition and its components in one of the most modern munitions factories in Europe. The Lithuanian unit will become the company’s regional manufacturing and innovations centre, where new products will be made and tested.
Products created at the factory will meet NATO standards. Its primary market will be Ukraine’s Armed Forces, while allied defence needs will be the secondary market.
It is planned that DEMZ will use existing infrastructure in Alytus industrial park, whereas in Prienai District a new generation defence facility will be built. Together, the two sites will enable production functions to be distributed in the most optimal way.