Ukrainian Defense Firm DEMZ to Build Ammunition Plant in Lithuania

The Ukrainian defense firm DEMZ and Lithuania have inked a deal to build an ammunition plant in the Baltic nation, according to a report by Delfi. This venture encompasses two production sites: a new facility set to be constructed in Prienai and an existing plant already operational in Alytus. The inaugural phase of operations is anticipated to commence in the autumn of 2026, with the plant commencing manufacturing activities by the close of 2027. The primary objective of the plant is to produce ammunition that adheres to NATO specifications.

The ammunition manufactured at this facility will initially cater to the Armed Forces of Ukraine (AFU). However, there are plans to extend the export of these munitions to allied countries in the future. As part of the agreement, DEMZ is also committed to spearheading research and development endeavors aimed at introducing novel technological solutions to the production process.

To bolster the local workforce, DEMZ has outlined intentions to recruit individuals with diverse skill sets. Furthermore, the company plans to institute specialized professional training programs designed to equip employees with the requisite expertise. This agreement is a follow-up to a previous defense cooperation pact that Ukraine and Lithuania formalized in May.

This earlier arrangement centered on bolstering collaborative production efforts, technology sharing, and defense manufacturing initiatives between entities from both countries.

The focus of this collaboration extends beyond ammunition production, encompassing the advancement of unmanned platforms, sophisticated drone technologies, and systems for air and missile defense. In addition to these provisions, the pact also facilitates the involvement of Ukrainian military experts in Lithuania, aiming to strengthen the country's security capabilities.

Lithuania's defense expenditure has seen a tripling since the nation's full-scale invasion by Russia in 2022, a significant increase in response to the escalating geopolitical tensions.

In July, Lithuania's lawmakers embarked on the process of lifting a constitutional prohibition on the stationing of nuclear weapons on the country's soil. This decision was made by President Gitanas Nausėda, who attributed it to the evolving security landscape. Although he affirmed there are currently no immediate plans to house nuclear weapons in Lithuania, he did acknowledge regional security concerns.

These apprehensions include potential mobilization activities and the escalation of combat training drills announced by neighboring Belarus.