Why global manufacturers choose Lithuania for engineering and production in Europe

Key takeaways

• Medium-high and high-technology activities now account for 25.9% of Lithuania’s total industrial output, anchored by growing investments in lasers, life sciences, and defense.
• A highly educated workforce enables manufacturers to co-locate R&D, prototyping, testing, and production in a single flexible hub.
• Lithuania provides a seamless connection to the EU Single Market via Klaipėda Seaport and regional transit links, with future connectivity further strengthened by Rail Baltica.
• Lithuania offers a 17% standard corporate income tax rate, alongside accelerated project permitting and up to 20 years at 0% tax for eligible large-scale projects via the Investment Highway.

When manufacturers assess European locations, cost is only one factor. They also need engineering skills, reliable infrastructure, regulatory stability and room to scale. Lithuania combines these advantages with competitive operating costs and full access to the EU Single Market.

Global companies such as Thermo Fisher Scientific and Hollister have established advanced production in Lithuania. New projects by Rheinmetall, Marine Technology, GetJet Group and others show that the country is also attracting larger, capital-intensive investments.

Advanced manufacturing in Lithuania

Lithuania’s manufacturing sector has moved towards higher-value activities, including automotive electronics, life sciences, laser technologies and advanced equipment. Medium-high- and high-technology manufacturing accounted for 25.9% of industrial production in 2025.

Recent projects also show the breadth of the industrial base. Light Conversion is investing €47.3 million in a new laser production and R&D centre, while Marine Technology is investing €15 million to expand advanced manufacturing in Klaipėda.

Lithuanian-owned manufacturers are also expanding their capabilities. Staticus Group is investing €31.5 million in an automated aluminium and glass façade manufacturing facility in Vilnius, complete with an integrated testing laboratory. The project will bring more production in-house, introduce advanced robotics and support the development of next-generation, low-carbon façade systems for international markets.

Lithuania’s defence manufacturing sector is expanding, too. RSI Europe plans to invest up to €50 million in a new facility in the Panevėžys district, expanding its capacity to develop and manufacture advanced defence systems. The project is expected to create up to 40 jobs, including highly skilled engineering and technical positions, while supporting future production growth.

Beyond traditional manufacturing, Lithuania is also strengthening its aviation engineering capabilities. GetJet Group plans to invest approximately €25 million in a new aircraft maintenance, repair and overhaul (MRO) facility at Vilnius International Airport. The project is expected to create more than 100 jobs, expanding the country’s capacity for technically demanding aviation services.

Engineering talent for manufacturing and R&D

One of Lithuania’s main advantages is the ability to combine production with engineering and R&D. The country has a highly educated workforce and a strong pipeline of graduates in science, technology, engineering and manufacturing-related fields.

Teams based in Lithuania can support production, prototyping, testing and process optimisation in one location. This can shorten time to market and make operations more flexible.

EU market access and industrial connections

Lithuania operates within the EU Single Market and regulatory framework. Klaipėda Seaport, road and rail links connect manufacturers with European markets, while Rail Baltica will further improve north-south connections.

Competitive operating costs within the EU

Operating costs remain below those of many Western European locations, while companies operate under EU standards.

Lithuania’s standard corporate income tax rate is 17%. Qualifying large-scale projects can use the Investment Highway, which offers faster permitting and, subject to eligibility criteria, a 0% corporate income tax rate for up to 20 years.

Business support from setup to expansion

Invest Lithuania provides free support to companies entering or expanding in Lithuania, including site selection, talent planning, incentives and coordination with public authorities.

A dedicated contact helps companies navigate the setup process and move projects forward more quickly.

Why companies choose Lithuania for manufacturing in Europe

Lithuania’s strongest offer is not low cost alone. It is the ability to combine engineering, scalable production and EU market access in one location.

Compared with larger EU economies, companies can benefit from more accessible institutions and closer cooperation between government, academia and business.

For manufacturers assessing the Baltic region, Lithuania offers a practical base for engineering-led production and expansion in the EU.