Ukraine firm's planned ammunition plant in Lithuania raises hope, security concerns - BNS REPORT

BALBIERISKIS - Plans by Ukraine's Dnipro Electromechanical Plant (DEMZ) to build an ammunition assembly facility near Balbieriskis in Lithuania's Prienai district have sparked both economic hopes and security concerns among local residents.

Community representatives say they have lacked direct dialogue with government authorities and the business sector over the Ukrainian defence company's expansion.

Algis Marcinkevicius, chairman of the local community and a member of the Prienai district council, said he learned of DEMZ's plans through the media despite his local role.

"The first reaction was: why do we know nothing when this is practically a done deal?" Marcinkevicius said.

Economy and Innovation Minister Edvinas Griksas and the head of DEMZ signed an investment agreement on Friday. While the exact value of the multi-million-euro investment remains undisclosed, the project is expected to create up to 450 jobs across Alytus and the Prienai district.

DEMZ plans to manufacture metal shell components at the Alytus industrial park, while a 30.6-hectare site in the village of Azuolai in Prienai will host the ammunition assembly plant. Construction is scheduled to begin this autumn, with production slated for late 2025.

HOPES FOR LOCAL EMPLOYMENT

Marcinkevicius said he had spoken with several residents but noted there was no unified stance yet. The 55-member community group has not formally discussed the plans.

"Nobody knows anything for sure. Information only started trickling out in the afternoon. At the moment, I don't sense any political posturing, opposition, or support because opinions are not yet clear," Marcinkevicius said.

"As an individual, I think of the state. I am a long-time civil servant and have had to make many decisions that did not always seem fair to individuals, but state interests must come first," he added.

The community chairman said he would try to convince residents of the plant's benefits but expressed concern that his credibility had been undermined by the lack of prior communication.

"People might listen to me, but my standing is weakened because I feel somewhat deceived. If I tell them I knew nothing and no one spoke to me, they will ask why I am trying to prove anything to them," he said.

Marcinkevicius noted that the site in Azuolai is surrounded by agricultural land, meaning residents would not be directly displaced. However, he raised concerns about heavy transport and the need for infrastructure upgrades, such as paving and strengthening local roads.

He pointed to a large farming operation near the site, suggesting that heavy vehicle traffic would require significant discussion with local agricultural businesses.

"My dream is that 40 jobs would go to local people. That would mean 40 families staying here rather than sending their children to Alytus or Prienai. It would be a boost for both skilled and unskilled workers," Marcinkevicius said.

While acknowledging that the facility could become a target in a conflict, he suggested it might also bring enhanced security compared with a standard factory. "It is clear this is not a mayonnaise factory," he added.

"NO ONE ASKED US"

Local sentiment remains divided. Some fear the facility will increase risks to the town.

Angele Mieliauskiene, a local shopkeeper, said there was no need for the plant. "It would be calmer for people without it. Everyone is happy about the jobs, but the more of this nonsense we have, the greater the threat to the people themselves."

Others view the project as a vital contribution to national security. "It's good for Lithuania's safety. I've served in the military myself, so I see no problem with it," said mechanic Darius Dirvanauskas.

Ona Blazukiene, a 69-year-old cook at the Loreta guesthouse, dismissed fears that the town would become a target, arguing that the entire country would be at risk in the event of aggression.

"Jobs are a plus. It gives people motivation to earn money and a reason to stay. I'm a grandmother and I'm still working; it keeps life interesting," Blazukiene said.

SEEKING THE BAISOGALA MODEL

Some residents hope initial skepticism will fade, citing the Rheinmetall plant in Baisogala as an example of how such projects can boost local economic activity.

The site earmarked for DEMZ was previously considered for a riflemen's union drone training base. Marcinkevicius cited that project as a model for communication, noting that the municipality held meetings and provided detailed plans to the community at the time.

"We had all the information then, and everything went well. I don't know why that project was abandoned, but it is an example of how things should have been handled now," he said.

DEMZ is a major supplier of defence equipment to the Ukrainian military. Since the full-scale invasion of Ukraine, the company has shifted from civilian to military production and employs around 4,000 people across its divisions.

The Lithuanian project, spanning Alytus and Prienai, is expected to commence this autumn.