Lithuania moves to grant special status to Ukrainian ammo plant project
Lithuania's Economy and Innovation Ministry drafted a resolution to give Baltic Metal Foundry, a Ukrainian defence subsidiary, a special status that would provide extra investment incentives for its ammunition factory.
Lithuania's Economy and Innovation Ministry has prepared a government resolution that would assign a special status to a Baltic Metal Foundry project, citing urgent security and defence requirements. This status would allow the firm, a Lithuanian subsidiary of Ukrainian defence maker Dnipro Electromechanical Plant, to benefit from investment conditions superior to those in the national Investment Law. Under an agreement signed in mid-August, the plant will be built in Alytus and the Prienai district, with an anticipated workforce of up to 450 people and a committed investment of at least 93.3 million euros.
Construction near Balbieriškis is slated for this autumn, with production targeted for late next year or the autumn of 2027 on a 30.6-hectare site in Ąžuolai. The ammunition and munitions components will meet NATO specifications, primarily supplying the Ukrainian armed forces while also supporting allied defence needs. Local officials, including Alytus Mayor Nerijus Cesiulis, have highlighted the project's significance for regional employment and industrial development.
Why it matters
The plan boosts Lithuania's defence industry, creates jobs, and strengthens Ukraine's military supply chain.
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