Structural Timber Factory in the Akmene Free Economic Zone
Akmene Free Economic Zone (FEZ), Lithuania
One of Lithuania’s most significant industrial projects in recent years is the VMG Group Structural Timber Factory, built in the Akmene Free Economic Zone (FEZ). This modern, sustainable construction facility is focused on the production of high value-added materials such as laminated veneer lumber (LVL) panels and I-joist beams. The project has not only strengthened Lithuania’s position as a regional leader in the wood industry but also created hundreds of new jobs, significantly contributed to regional economic growth, and attracted international investment interest.
The factory’s products are supplied to both local and international markets, including Scandinavia, Western Europe, the Baltic States, North America, and Australia.
Estimated annual production capacity: approx. 120,000 m³ of LVL panels, 15 million linear meters of I-joist beams, and additional structural particleboard products.
Investment value: around €100 million for factory and infrastructure construction, including equipment installation.
Employment: around 200 jobs created before the project launch, with a total of ~350 jobs expected once full capacity is reached.
Timeline: project development began in 2022–2023; the official factory opening took place in August 2023.
Industrial Development: the Akmenė FEZ has become a key hub for sustainable wood product manufacturing.
Export Growth: products designed for international markets strengthen Lithuania’s manufacturing competitiveness.
Technological Value: advanced technologies for LVL, I-joist, and structural board production reduce CO₂ emissions and promote sustainable construction.
Social and Regional Value: creation of stable jobs, expansion of local infrastructure, and growth of the regional business ecosystem.
Financial Value. Significant investments in infrastructure, equipment, and production lines. The financing component of approx. €44 million in bank loans reflects strong lender confidence, with the remaining portion covered by investors.
Economic Value. Creation of both direct (200–350) and indirect jobs, strengthening the regional economy and supply chains in the wood-processing sector.
Production / Technological Value. The ability to manufacture LVL panels, I-joists, and particleboards within one facility enables product diversification, optimal use of raw materials, and sustainability through lower carbon emissions.
Social / Regional Value. Stable employment for local residents, improved road and logistics infrastructure, growth in FEZ property value, and retention or return of skilled professionals such as engineers and technicians.
Work and Added Value by UAB “Lex consulta”
UAB “Lex consulta” has been involved in these projects from the earliest stages — from investment planning and greenfield development to factory launch, and continues to provide ongoing legal services to the operating facilities. Our role covers multiple legal areas, providing comprehensive, multi-sector expertise.
Initial Consultations and Legal Audits
Direct support to the client on construction law matters: permitting, spatial planning coordination, and implementation of FEZ requirements.
Legal advice on tax incentives, corporate income tax, and property tax under FEZ regulations.
Environmental law consultation, including environmental impact assessments, permitting, air and water pollution control, and waste management compliance.
Contract Drafting and Negotiation
Preparation of construction contracts and participation in negotiations with project contractors.
Drafting and negotiating equipment supply and installation agreements with both local and international suppliers, addressing import, transport, and warranty matters.
Drafting of financing agreements and negotiations with financial institutions and private investment funds.
Licensing and Permitting Procedures
Coordination and representation in obtaining all required construction, equipment installation, and environmental permits.
Ensuring favorable FEZ conditions: tax, customs, and other regulatory advantages in line with FEZ rules.
Legal Representation and Negotiation Support
Representation before local and regional authorities on infrastructure, road, and railway access matters.
Coordination with municipal bodies and FEZ management companies, resolving complex issues such as land use restrictions and permit timelines.
Post-Launch Legal Support
Continuous legal guidance in labor law, occupational safety, and environmental compliance for operational factories.
Legal assistance in sales contracts, international supply agreements, and related commercial matters.
Risk Management and Legal Strategy
Ensuring full compliance with national and EU legal frameworks, reducing risks of sanctions or project delays.
Providing strategic legal consulting for ongoing and future project development.
Added Value Provided by Lex consulta
Successfully coordinated complex permitting and regulatory processes, ensuring uninterrupted project progress.
Prepared robust, well-structured contracts that protect client interests in terms of timelines, quality, and warranties.
Provided support in financing documentation and structure, optimizing financial load and securing favorable conditions.
Ensured regulatory compliance, minimizing the risk of institutional sanctions and delays.
Delivered ongoing legal support post-launch, enabling smooth, lawful, and efficient factory operations.
Maintained a strategic approach, proactively anticipating legal and regulatory challenges alongside the client.