The VMG Group’s vision has changed the Akmenė district beyond recognition

When the free economic zone began operating in the Akmenė district in 2019, few believed that this northern Lithuanian city would become one of the most active examples of regional development within a few years. However, today Naujoji Akmenė is no longer just synonymous with a cement factory, but a place of modern industry, green energy, and social synergy, where ideas that comply with the principles of the circular economy and the European green course are implemented.

An industrial vision has become reality
A decade ago, Akmenė was known as an industrial district in search of a new direction. Today, it is one of the most striking examples of how a region can be revitalized when an ambitious business vision meets an active local government.

According to Sigitas Paulauskas, founder and sole shareholder of VMG Group, the transformation of Naujoji Akmenė began with a single idea: to create an industrial center in Lithuania that would combine high value-added production, a circular economy, and sustainable energy.

“Our investment strategy was based on the need to establish a large industrial park where the raw material – wood – would gain the highest added value in the form of finished products. We wanted it to be a platform open to the entire industry,” says S. Paulauskas.

According to him, Naujoji Akmenė was not chosen by chance – the city needed a large industrial area, and the municipality provided exceptional support.

Today, modern factories operate on a 100-hectare site, producing innovative materials that can replace reinforced concrete or metal in construction.

The “one-stop shop” principle has proven its worth
The Akmenė FEZ has become the engine of the region’s economy, connecting business, local government, and the community. Since its inception in 2019, eight investors have come to the Akmenė FEZ, and a preliminary land sublease agreement has been signed with another potential investor. Total investments attracted exceed €350 million, more than 770 jobs have been created, and in 2024, FEZ companies paid more than €2.5 million in income tax and social security contributions.

According to Lina Mockutė, CEO of the Akmenė FEZ, success is determined not only by the size of the investment, but also by the overall approach and organizational structure. From the very beginning, the “one-stop shop” principle has been applied, with decisions being made jointly by the Akmenė FEZ, the municipality, and investors, which allows for a faster response to investors’ needs.

“Investors are not only interested in tax breaks or a prepared site – they need to see that the region is alive, that there is a team here that not only wants to help them grow, but is also able and knows how to do so,” says L. Mockutė.

In 2025–2027, the Akmenė FEZ plans to implement four new investment projects with a total value of more than €30 million, which should create more than 200 new jobs.

People want to settle down, but there is a shortage of living space
Economic development in the Akmenė district inevitably brings new challenges – first and foremost, a shortage of housing. According to S. Paulauskas, some employees currently commute several dozen kilometers to work every day, so rapid development of residential infrastructure is becoming a necessity.

“Without a new residential neighborhood, the region’s growth will be limited. Our plan is to build approximately 500 new apartments and houses in the Akmenė district over the next 3–5 years. This is the only way we will be able to retain employees and attract people from other regions or even from abroad,” says S. Paulauskas.