Advanced Manufacturing Industry in Lithuania

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EXPLORE: Advanced Manufacturing Industry in Lithuania EXPLORE: Advanced Manufacturing Industry in Lithuania

Why Lithuania
Future vision
Key investment areas
Already here
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EXPLORE: Advanced Manufacturing Industry in Lithuania EXPLORE: Advanced Manufacturing Industry in Lithuania

Why Lithuania
Future vision
Key investment areas
Already here
Downloads
News & Events
Contact us

Lithuania is your gateway to Industry 4.0 success. The country stands at the forefront of the manufacturing and business services sectors, powered by a rich tradition in engineering and a focus on innovation. The manufacturing sector is a cornerstone of the Lithuanian economy, driven by a highly skilled workforce and a robust technology sector that accelerates digital transformation. The government’s commitment to innovation, efficiency, and green transformation further bolsters the country’s status as a premier destination for advanced manufacturing and global business services.

Key Advantages
of Manufacturing
in Lithuania

Lithuania’s Highly Skilled Workforce Ready for Tomorrow’s Challenges illustration

Talent Availability

Lithuania boasts a diverse talent pool fluent in 35 languages, excelling in both traditional engineering disciplines and cutting-edge IT fields. With 13% of the workforce employed in manufacturing, Lithuania offers ample opportunities for new businesses to scale rapidly and retain top talent. The country is home to the largest technical university in the Baltic states, Kaunas Technology University (KTU), which nurtures a pipeline of highly educated IT and engineering professionals.

5th in the EU

for science, math, computing, engineering, manufacturing and construction bachelor graduates in the young adult population

Source: Eurostat, 2022
58%

of the population aged 25-34 has a higher education (4th in the EU)

Source: Eurostat, 2021
13%

of Global Business Services centers in Lithuania deliver engineering (non-IT) solutions, while 22% of centers perform R&D function

Source: Lithuania's Business Services report, 2023

1st in the EU

56% of scientists and engineers are women

Source: Eurostat, 2023
1st globally

for digital skills availability

Source: IMD World Competitiveness Yearbook, IMD World Competitiveness Center, 2023
3rd in the EU

for equality in labor force participation: 50% of the total labor force is female in Lithuania

Source: IMD World Talent Ranking, 2023

From what we have seen so far, Lithuania in general, and Kaunas in particular is matching our expectations. When it comes to logistics, distances to our existing plants in Germany and Switzerland as well as to customers in Central and Eastern Europe will be short resulting in efficient lead times.

Christoph Schelzke

General Manager at Mikron Automation in Lithuania

Our growing Lithuanian team of skilled specialists has proven itself a trusted force across a wide array of engineering services, allowing us to expand the range of our offering. We have recently started providing R&D services, focusing on developing systems for defect detection that use modular architecture and AI image recognition, as well as automation and engineering workflow improvements.

Simonas Barsteiga

Manager at CSD Engineers

To understand the importance of the Vilnius centre, you need to bear in mind that every single order and every single shipment in Europe is managed by our Lithuanian colleagues. This is a huge responsibility, but we are confident that our latest addition to the Yara family will be fit for the task.

Pablo Barrera Lopez

Executive Vice President at Yara International

Lithuania has proven to be a location for talented people. Starting with complex engineering solutions to best-in-class project deployment in different areas of engineering and manufacturing – the Lithuanian unit of Mars has a record of sustainable quality. A strong pool of talents is the key reason to our success and recognition at Mars, among 126 manufacturing facilities worldwide.

Aušra Žemaitienė

General Manager at Mars Lietuva

Industrious and creative people live in Panevėžys and the quality of life in this city is excellent, so we are sure that with the development of RIFAS and other companies, Panevėžys has great prospects to grow and develop its export-orientated production. Historically, Panevėžys has always been famous for its well-developed electronics and electrotechnics industry.

Andres Allikmae

Chairman of the Board at Harju Elekter

Continuous Focus on Talent Development

Future for Electronics Engineers

The initiative aims to double the number of new engineering students in Kaunas and encourage high-school graduates to choose promising professions. Companies like Continental Automotive Lithuania, HELLA Lithuania, Kitron, Teltonika Networks, and Littelfuse LT are actively involved in this initiative.
EUR 80M Funding for reskilling programs 2022-2026

The Employment Service has launched an initiative to boost the Lithuanian labor force with 20,000 high value-added specialists. Such talent is critical for the development of the ICT, engineering, and life sciences sectors, as well as the automation and digitalization of business processes – all areas of the utmost priority for the Lithuanian economy.

Infrastructure and Connectivity

Lithuania provides top-tier infrastructure, from high-quality roads and logistics hubs to reliable digital networks. Its strategic location offers seamless access to the EU market, supported by , a major seaport, and an extensive rail network, including the upcoming Rail Baltica project. The country’s e-infrastructure ranks among the best globally, ensuring robust and secure digital connectivity.

Connected by sea, air, road and rail
- Lithuania’s 3 international airports provide access to major European cities within 2-3 hours.
- Klaipėda State Seaport is the leading port in the Eastern Baltics for container handling.
- Rail connections to Western Europe and Asia. The Rail Baltica railway will connect Lithuania to Finland to Germany for both passenger and freight traffic by 2030.
- Well-developed logistics infrastructure, with the logistics sector contributing 12% to Lithuania’s GDP.
Robust, resilient, and secure e-infrastructure
- 2nd in CEE
  for digital quality of life
  
  Source: Surfshark Digital Quality of Life Index, 2023
- 2nd in the EU
  for fixed broadband price
  
  Source: Digital Economy and Society Index, 2023
- 6th globally
  for cybersecurity
  
  Source: ITU Global Cybersecurity Index, 2021

Unparalleled Governmental Support and Financial Incentives in Lithuania illustration y

Government Support and Financial Incentives

Lithuania offers substantial government support and financial incentives for manufacturing businesses. Companies can benefit from grants for research and development, tax exemptions in Free Economic Zones (FEZ), and streamlined regulatory processes. These incentives ensure quick establishment and smooth operation.

Financial Incentives for Large-Scale Projects

Significant new tax incentives for large-scale projects, including a 0% corporate tax for 20 years.

State Support

Potential qualification for state funding, negotiated on a case-by-case basis.

Patent Box

A reduced corporate tax rate of 5% for profits from patented software and inventions.

Free Economic Zones

Businesses in FEZ enjoy 0% corporate tax for the first 10 years and no more than 7.5% for the following six years, along with exemptions from tax on dividends and real estate tax.

Future-focused Manufacturing in Lithuania

Innovation Ecosystem

Lithuania’s innovation landscape is driven by government initiatives, academic research, and industry collaboration. Innovation hubs and a growing startup ecosystem support the development of advanced manufacturing technologies, while the regulatory framework provides incentives for R&D development.

Multiple innovation valleys provide services to manufacturing innovators
- 5%
  
  corporate profit tax for patented products
- 3x
  
  deductible expenses for R&D

Sustainable Manufacturing

Lithuania is committed to energy sustainability, aiming for 100% renewable energy in the final balance of electricity consumption by 2030 and becoming a green hydrogen producer by 2026. The country’s manufacturing sector integrates environmentally friendly practices, reducing energy consumption and adopting circular economy principles.

- 70%
  In 2023, 70% of the country’s total energy output was produced from renewable sources.
  
  Source: Ministry of Energy, 2024
- 696M EUR
  earmarked for renewable energy expansion under the LT100 support scheme.
  
  Source: Ministry of Finance, 2023
- 2.8 GW
  of offshore wind power to be generated in Lithuania by 2040
  
  Source: Ministry of Energy, 2024
Expected share of renewable energy in the final balance of electricity consumption in Lithuania

Source: National energy and climate action plan of the Republic of Lithuania 2021-2030

Your Best Choice for Manufacturing

IoT Equipment

Combining IT expertise with manufacturing capabilities, Lithuania supports state-of-the-art IoT development.

Automation Equipment

A strong background in electronics and automation allows Lithuania to meet any automation challenge.

Industrial Machinery and Components

Innovative engineers and tech-enabled production lines ensure flexibility and high quality.

Engineering and R&D Services

Lithuania’s focus on R&D drives growth in engineering-based business services: 22% of local GBS centers perform R&D while 13% deliver non-IT engineering solutions.

Advanced Manufacturers in Lithuania

Lithuania’s appeal is reflected in the success of global companies like Kinze, Festo, and Yara, which have leveraged the country’s business-friendly environment, skilled workforce, and efficient logistics to thrive.

Want to learn more about advanced manufacturing opportunities?

Lithuania has a lot to offer, and we’re here to help you discover it. At Invest Lithuania, our team is here to make your business journey smoother. From connecting you with the right people to accessing valuable resources, we take care of the details so you can drive your business forward.