VMG Particleboard Factory in Akmene Free Economic Zone
Akmene Free Economic Zone (FEZ), Lithuania
One of the most ambitious projects in Lithuania’s wood-processing sector is the VMG (Vakarų Medienos Grupe / Western Wood Group) particleboard factory, built in the Akmene Free Economic Zone (FEZ). It is among the largest “greenfield” investments of its kind in the country. The factory launched operations in the summer of 2020, with its official opening held in August/September 2020.
Production capacity: approx. 600,000 cubic meters of particleboard annually.
Investment value: around €146 million.
Employment: about 140 direct jobs in manufacturing.
Timeline: construction began in August 2018; first production in summer 2020; official opening in August/September 2020.
Infrastructure development: the project included construction of a railway branch line connected to the national network, as well as road upgrades and new road links within the FEZ.
Driving regional development and job creation, contributing to stronger local economic activity.
Positive spillover effects: improved infrastructure, growing demand for real estate, and expansion of service-sector businesses in Akmenė District.
Added value across the Lithuanian wood-processing chain and export potential, as production is aimed at both domestic and international markets.
Financial Value: €146 million investment covering plant construction, acquisition and implementation of advanced technologies, and expansion of infrastructure and logistics.
Economic Value: creation of 140 new direct jobs, with additional indirect jobs generated in services, logistics, transportation, and construction sectors due to the factory’s activities.
Technological Value: implementation of cutting-edge production technologies, including ultra-thin board manufacturing, high automation, and efficient raw material use.
Social & Regional Value: strengthening the regional economy, modernizing infrastructure, boosting trust in investments among local authorities and communities, reducing emigration pressures, and creating opportunities for local residents.