Ukrainian defense firm DEMZ to invest in Lithuanian ammunition production

The Ukrainian defense company Dnipro Electromechanical Plant (DEMZ) is expanding its operations into Lithuania through a major investment project. An agreement was signed in Vilnius between the Lithuanian Minister of Economy and Innovation, Edvinas Grikšas, and DEMZ leadership to produce ammunition and shell components within the country.

The project will establish a modern ammunition assembly facility in the Prienai district near Balbieriškis, while metal shell parts will be manufactured at the Alytus Industrial Park. This expansion is expected to create up to 450 new jobs across the Alytus and Prienai regions, offering both high-skilled and technical positions.

Prime Minister Mindaugas Sinkevičius noted that the project is vital for both national and regional security, as the production will meet NATO standards. The primary market for the products will be the Ukrainian Armed Forces, with secondary supply intended for NATO allies. Construction in the Prienai district is scheduled to begin this autumn, with production slated to commence by the end of next year.