Advanced Manufacturing Industry in Lithuania
- Why Lithuania
- Future vision
- Key investment areas
- Already here
- Downloads
- News & Events
- Why Lithuania
- Future vision
- Key investment areas
- Already here
- Downloads
- News & Events
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
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.
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5th in the EUfor science, math, computing, engineering, manufacturing and construction bachelor graduates in the young adult populationSource: 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 functionSource: Lithuania's Business Services report, 2023
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1st in the EU56% of scientists and engineers are womenSource: Eurostat, 2023 -
1st globallyfor digital skills availabilitySource: IMD World Competitiveness Yearbook, IMD World Competitiveness Center, 2023 -
3rd in the EUfor equality in labor force participation: 50% of the total labor force is female in LithuaniaSource: IMD World Talent Ranking, 2023
Continuous Focus on Talent Development
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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.
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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.
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Connected by sea, air, road and rail
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Lithuania’s 3 international airports provide access to major European cities within 2-3 hours.
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Klaipėda State Seaport is the leading port in the Eastern Baltics for container handling.
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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.
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Well-developed logistics infrastructure, with the logistics sector contributing 12% to Lithuania’s GDP.
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Robust, resilient, and secure e-infrastructure
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2nd in CEE
for digital quality of lifeSource: Surfshark Digital Quality of Life Index, 2023
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2nd in the EU
for fixed broadband priceSource: Digital Economy and Society Index, 2023
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6th globally
for cybersecuritySource: ITU Global Cybersecurity Index, 2021
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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.
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Multiple innovation valleys provide services to manufacturing innovators
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5%corporate profit tax for patented products -
3xdeductible expenses for R&D
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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.
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70%
In 2023, 70% of the country’s total energy output was produced from renewable sources.Source: Ministry of Energy, 2024
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696M EUR
earmarked for renewable energy expansion under the LT100 support scheme.Source: Ministry of Finance, 2023
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2.8 GW
of offshore wind power to be generated in Lithuania by 2040Source: Ministry of Energy, 2024
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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
Combining IT expertise with manufacturing capabilities, Lithuania supports state-of-the-art IoT development.
A strong background in electronics and automation allows Lithuania to meet any automation challenge.
Innovative engineers and tech-enabled production lines ensure flexibility and high quality.
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.
to explore the opportunities Lithuania offers for advanced manufacturing and discover why it’s the perfect destination for your business needs. Learn more about Free Economic Zones and other incentives.
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What’s happening
in the sector
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ManufacturingUS Window Maker INTUS to Build Additional Plant in ŠiauliaiJul 09, 2024 -
New investmentsDefence industry giant Rheinmetall signs agreement to establish operations in LithuaniaJun 03, 2024 -
ManufacturingRyanair expands in Kaunas: €20M investment, 200 new jobs and 4 new routesMay 14, 2024
