Ukrainian ammunition producer DEMZ will build a factory in Lithuania

Ukrainian defence company DEMZ has signed an agreement with Lithuania’s Ministry of Economy and Innovation to establish ammunition production in Lithuania. A new plant will be built in the Prienai district, while an existing site in Alytus will also be used. Construction is expected to start this autumn and NATO-standard production by the end of 2027. The ammunition will initially supply Ukraine’s armed forces, with exports to allied countries planned later. The project is significant because it moves Ukrainian defence manufacturing beyond exports: Ukrainian technology, production expertise and R&D are becoming embedded directly in an EU and NATO-country industrial base.