Lithuania’s Ministry of Economy and Innovation and Ukrainian defense company DEMZ have signed a large-scale investment agreement to establish a new ammunition plant in Lithuania. Production will begin at 2 sites in Alytus and Prienai, with up to 450 jobs expected to be created.
Lithuania’s Ministry of Economy and Innovation has signed a large-scale investment agreement with Ukrainian defense company DEMZ for the construction of a new ammunition plant. The parties will work together to bring the project to fruition.
The ammunition plant will be established at 2 sites in Alytus and Prienai districts. Construction in Prienai district is scheduled to begin in autumn 2026, with production expected to start at the end of 2027. DEMZ will use its existing production site in Alytus.
The ammunition produced at the plant will initially be supplied to the Ukrainian Armed Forces, after which production for allied countries is also scheduled to begin. The project aims to produce products that meet the defense requirements of North Atlantic Treaty Organization (NATO) member states.