Two locations, hundreds of jobs and a firm production timeline signal a deeper defense partnership built around Ukraine’s urgent supply needs.
Lithuania’s Ministry of the Economy and Innovation has signed a major investment agreement with Ukrainian defense company DEMZ to establish a new ammunition plant in Lithuania. The parties will work together to implement the project.
The new production facilities are planned for two locations – Alytus and the Prienai District. The ammunition plant is expected to create up to 450 jobs.
Production Sites in Alytus and the Prienai District
In Alytus, DEMZ will use an existing production site, while a new facility will be built in the Prienai District.
Construction work in the Prienai District is due to begin in the fall of 2026. Production at the new site is scheduled to start in late 2027.
Who the Ammunition Will Be Made For
The Lithuanian plant’s products will primarily be supplied to the Armed Forces of Ukraine. The company also plans to produce ammunition for allied nations at a later stage.
The products will comply with the defense requirements of NATO countries. The project is expected to expand the defense sector’s production capacity and ensure a stable supply of ammunition to Ukraine and allied nations.