Manufacturing

A desire to exceed your expectations
© Tadas Kazakevičius

Lithuania's manufacturing
sector at a glance

What makes Lithuania a natural choice for manufacturing? Its eager and skilled workforce, the close ties it builds between business and education, and its commitment to creating the right infrastructure and support for manufacturing growth. What is more, as the bridge between East and West, access to new markets is right on your doorstep.

  • Top Locations For Manufacturing
    Among top locations
    for manufacturing globally
    Source: Cushman & Wakefield Manufacturing Risk Index 2020 Report (1-12th place from 48 countries ranked)
  • GDP
    20%
    of Lithuania’s total value added is generated by manufacturing
    Source: Lithuanian Statistics, 2020
  • Attrition Rate
    10%
    average employee attrition rate in international manufacturing companies
    Source: HR Agencies Alliance for Recruitment, Biuro, 2020
  • Historical Competences In Manufacturing
    Historic competences
    in plastic, metal, electronics and machinery production

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Target sectors

This page contains an overview of the whole manufacturing landscape in Lithuania. If you want deeper insights on what Lithuania has to offer to each of the following sectors, continue exploring here:

  • Automotive components

    For automotive manufacturing. Lithuania has the right balance: a highly educated, unsaturated talent pool, strong logistics, and a high cost to quality ratio.

  • Industrial machinery

    Lithuania has the range of expertise needed for thriving Industrial Machinery & Equipment manufacturing operations today and tomorrow.

  • Electric vehicle batteries

    Lithuania can offer just the right conditions to meet the growing demand for battery gigafactories that would follow sustainable manufacturing guidelines.

Reasons to choose Lithuania

Quality and costs

  • Manufacturing Graduates
    #2
    in science, math, computing, engineering, manufacturing and construction bachelor graduates per young adult population in the EU
    Source: Eurostat, 2018
  • Speak English
    85%
    of young professionals speak English
    Source: Estimates for 2020 (20-34 age group with higher education) made by Invest Lithuania based on Population Census, 2011
  • Low Tax
    3rd lowest
    corporate tax in CEE region
    Source: KPMG 2020
  • Low Unionisation
    One of the lowest
    unionisation levels in the EU (7.4%)
    Source: OECD, 2019

Powered by people

  • Raimundas Petrauskas
    Schmitz Cargobull in Lithuania has started operations as an assembly plant. Raimundas Petrauskas, CEO, and the local team of innovative engineers have outgrown the primary targets and developed the Center of Excellence focusing on the new product development.
  • Kazimieras Kaminskas
    Klasmann-Deilmann Lithuania CEO Kazimieras Kaminskas has returned from Germany to Lithuania in 2004 to drive the growth of the operations. Company currently employs more than 400 people and exports products to 80 countries worldwide and has grown to one of the key manufacturing sites globally as well as important R&D center focusing on experimental production.

Industry – university collaboration

  • Tailor Made Education
    Tailor-made education

    Situation: Ensure increasing enrolment to Electronics and Aviation Engineering studies.


    Key Actions: To facilitate scalable growth for large-scale newcomers in the Automotive and Aviation industry, a marketing campaign provided 9-12 grade student visits to FDI companies; meanwhile the Ministry of Education agreed to increase government financed places for bachelor education in the most needed areas.

  • Industrial Problem Fixing
    Industrial problem fixing

    Problem: Crystal residue had formed inside the strictly-closed piping system of a food production facility.


    Challenge: The deconstruction of pipes and mechanical cleaning was not possible/too expensive within the food production facility.


    Solution: Industry reached out to universities and received options/solutions for reactive gas and ultrasound residue removal.

  • R&D On Business Demand
    R&D on business demand

    Business Idea: Develop machine products with exceptional qualities for aluminum friction, wear, and aesthethics.


    Approach: Chemical coating laboratory was assigned with a task to create new technology for aluminum surface modification for rigidity, resistance to friction and wear.


    Result: Multiple technologies for aluminum surface treatment have been developed and applied for world known producers of machinery and optoelectronic products.

Logistics: fast connection infrastructure

Truck Delivery Times Small

The location of Lithuania, coupled with its flexible, well-developed logistics networks, allows for fast, efficient and cost-effective delivery to the EU and the CIS markets.


The country is 2nd in the CEE for quality of roads

Source: World Economic Forum, World Competitiveness Report 2019


Klaipėda, one of the 5 largest ports in the Baltic Sea is capable of accommodating ships with a maximum draught of 13.4 m, and handling up to 46 million tons of goods a year.

International logistics companies in Lithuania

  • DB Schenker Logo
  • Kuehne Nagel
  • DSV logo
  • DFDS Logo
  • UPS Logo
  • DHL logo
  • Rhenus Logistics Logo
  • Hellmann Logo
  • Delamode logo
  • Itella Logo
  • Dpd Logo
  • TNT Logo

Investment locations

FEZ In Lithuania

With 7 Free Economic Zones (FEZ) ready for business at the moment, Lithuania has the infrastructure in place to meet your needs.

Free Economic Zone companies are subject to a facilitated tax regime.

Greenfield Investment track record shows that in some FEZs >80% of new-comers exceed their initial plans within two years.

Competitive utility prices

  • Electricity Price
    0.069 - 0.192 Eur/kWh

    Electricity price
    Source: Eurostat, 2021 H2, Range of electricity costs for non-household consumers
  • Reliable Elecricity Supply
    Highest rating

    in the reliability of electricity supply
    Source: Doing Business, 2020
  • Gas Price
    61.8 - 84.8 Eur/MWh

    Gas price
    Source: Eurostat, 2021 H2, Range of gas costs for non-household consumers
  • Cold Water Price
    From 1.13 Eur/m3

    Water supply and treatment price
    Source: Vilniaus Vandenys 2021

Support measures

  • European Union support
    EU Support
    • Up to 50% refund for R&D activities* (*2021 call ends in September)
    • Up to 50% refund for employee training
    • Support measures for renewable energy, regional development, and others apply
  • State Support
    State Support
    • Taxation Treaties with 50 countries
    • Corporate profit tax incentives for R&D – fully deductible expenses x3
    • Reduced 5% corporate income tax rate can be applied for commercial exploitation of patented inventions

Related materials to download

What’s happening
in the sector

Have questions? Contact us
Nadežda Bausienė
Head of Manufacturing Team
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    Nadežda Bausienė Head of Manufacturing Team
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