Vli Timber, building the world's first fully automated dried firewood factory, has been granted large-scale project status
The Ministry of Economy and Innovation has granted large-scale project status to UAB “Vli Timber” – the biofuel producer will build a factory for high-calorific-value dried firewood in the Jonava district. The €35 million project, which will create 150 jobs, will become the world’s first fully automated firewood production complex of its kind.
“A large-scale investment project agreement represents a partnership between the state and the business sector that generates tangible benefits for the regions. Vli Timber’s investment demonstrates that innovation and automatization can be used to create high added value in traditional industries. It is particularly important that the project is based on the zero waste principle, and that wood, which is currently exported as a raw material, will be processed in Lithuania and turned into high-quality products,” says Minister of Economy and Innovation Edvinas Grikšas.
The plant will process low-grade wood unsuitable for construction – a fully automated chipping line developed by Vli Timber will enable the processing of this lowest-grade raw material. The plant’s main product will be industrially dried firewood with a moisture content of just 15%, which releases up to 20% more thermal energy than naturally dried wood.
“The signing of this major investment project agreement confirms the direction of our strategy and the government’s confidence in this investment. We are building the world’s first fully automated firewood plant of this scale, incorporating cutting-edge technologies. These technologies will not only significantly increase production efficiency but also enable us to become one of the most modern firewood producers in the world,” says Darius Lackus, CEO of Vli Timber.
The decision to build the factory in the village of Venecija in the Jonava district was made due to its strategically advantageous location – the city of Jonava is geographically well-suited both for sourcing raw materials from forests across Lithuania and for transporting products by road to ports, and in the future, by rail as well. The project manager is the real estate development company “Kenova.” The fully automated factory will also require qualified specialists, so the nearby city of Kaunas is expected to ensure a pool of operators and technicians for the automated lines.
“A strong local business sector is one of the most important drivers of a country’s economic growth. “The Vli Timber factory is a perfect example of how a Lithuanian-owned company, by leveraging innovation and automation, is creating world-class solutions in a traditional industry,” says Elijus Čivilis, head of the investment promotion agency Invest Lithuania.
Since 2025, Invest Lithuania has been advising Lithuanian businesses seeking or having obtained major project status. During this period, the agency has advised more than 80 Lithuanian-owned companies. You can contact Invest Lithuania for consultations on submitting large-scale project applications, project implementation, and taking advantage of special investment and business conditions for large-scale projects.
Projects in the manufacturing sector or in the provision of data processing and web server services may qualify for large-scale project status if their investment in fixed assets is at least €20 million (€30 million for investments in Vilnius) and they create at least 20 new jobs. Such projects are eligible for a 0% corporate income tax rate for a period of up to 20 years, expedited land-use planning and building permit issuance, a simplified immigration process for foreign specialists, and accelerated infrastructure development; a coordinator from Invest Lithuania is also assigned to ensure that the project receives all the special investment and business conditions provided for.
Last updated: 23-04-2026
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