- Up to 50% refund for R&D activities
- Up to 50% refund for employee training
- Support measures for renewable energy, regional development, and others apply
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.
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Among top locationsfor manufacturing globallySource: Cushman & Wakefield Manufacturing Risk Index 2022 Report (13-24 place among 48 countries ranked)countries ranked) -
18%of Lithuania’s total value added is generated by manufacturingSource: Lithuanian Statistics, 2021 -
19%average employee attrition rate in international manufacturing companiesSource: Invest Lithuania Manufacturing Report, 2023 -
Historic competencesin plastic, metal, electronics and machinery production
Already here
FTE:
350 (May, 2023)
EST:
2017, Kaunas FEZ
Functions:
Manufacturing of automotive electronics components
FTE:
770 (May, 2023)
EST:
2017, Kaunas
Functions:
Manufacturing of automotive electronics components
FTE:
257 (May, 2023)
EST:
2012, Kaunas
Functions:
Aircraft MRO
FTE:
801 (May, 2023)
EST:
1993, Gargždai
Functions:
Manufacturing
FTE:
700 (May, 2023)
EST:
1995, Kaunas
Functions:
Electronics manufacturing services, fully assembled electronic circuit boards (PCB)
Want to learn more about what Lithuania can do for your business? We’ve done the research for you. Download our up-to-date reports for an easily digestible overview of your sector that’s stuffed with valuable insights.
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:
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Automotive componentsFor automotive manufacturing. Lithuania has the right balance: a highly educated, unsaturated talent pool, strong logistics, and a high cost to quality ratio.
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Industrial machineryLithuania has the range of expertise needed for thriving Industrial Machinery & Equipment manufacturing operations today and tomorrow.
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Electric vehicle batteriesLithuania 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
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#4 in the EUin science, math, computing, engineering, manufacturing and construction bachelor graduates per young adult populationSource: Eurostat, 2020 -
85%of young professionals speak EnglishSource: Estimates for 2020 (20-34 age group with higher education) made by Invest Lithuania based on Population Census, 2011 -
3rd lowestcorporate tax in CEE regionSource: KPMG 2020 -
One of the lowestunionisation levels in the EU (7.4%)Source: OECD, 2019
Powered by people
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Raimundas PetrauskasSchmitz 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 KaminskasKlasmann-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
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Tailor-made educationSituation: 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.
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Industrial problem fixingProblem: 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.
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R&D on business demandBusiness 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
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
Investment locations
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
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0.072-0.238 Eur/kWh
Electricity priceSource: Eurostat, 2022 H1, Range of electricity costs for non-household consumers -
95.6-100.1 Eur/MWh
Gas priceSource: Eurostat, 2022 H1, Range of gas costs for non-household consumers -
1.34 EUR/m3
Cold drinking water priceSource: Average tariff of 3 largest cities for industrial consumers, 2022 -
6.20 EUR/m3
Hot drinking water priceSource: Average tariff of 3 largest cities for industrial consumers, 2022
Support measures
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European Union support
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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
