Lithuania signs deal to build film studio, aiming to boost audiovisual sector

Lithuania has signed a cooperation agreement to construct a new film studio in Vilnius, with the goal of significantly expanding the country’s audiovisual industry. The project, set to be developed on the redeveloped site of Litexpo, the city’s exhibition center, aims to double the size of the nation’s audiovisual sector and attract more international film productions. The initiative is part of broader efforts to enhance production infrastructure and secure a stronger foothold in regional and global film markets. The agreement outlines plans for the development of production facilities in Vilnius by 2030. It includes the construction of five film pavilions, some reaching up to 18 meters in height. These structures are intended to provide state-of-the-art spaces for both domestic and international filmmakers. Romanas Matulis, director of the Baltic Film & Creative Tech Cluster, noted that major foreign clients might begin reserving space even before the studio officially opens, indicating confidence in the project’s potential. Economy and Innovation Minister Edvinas Grikšas highlighted that while Lithuania’s audiovisual sector recorded a record turnover of €208 million in 2025, the country still faces challenges in fully realizing its economic potential. He emphasized the importance of improving infrastructure, particularly indoor studios, to support year-round filming and meet the demands of international producers who frequently choose Lithuania for its scenic locations and favorable conditions. Raminta Radavičienė, director general of the Lithuanian Confederation of Industrialists, echoed these sentiments, stating that the absence of a large-scale film studio in the region means Lithuania is missing out on high-value investments and projects. She stressed that developing the necessary infrastructure is crucial for competing with other countries in attracting major international productions. Grikšas acknowledged that the specifics regarding the project’s cost and financing structure remain under discussion and will be determined during subsequent planning phases. This uncertainty reflects the early stage of the initiative, which is currently focused on feasibility studies and detailed planning. The audiovisual sector in Lithuania, encompassing film, television, advertising, and animation, has shown remarkable growth since 2017. According to Matulis, the industry has expanded at an average annual rate of 19%, far exceeding the national GDP growth rate. This rapid expansion underscores the sector’s increasing significance to Lithuania’s economy and its growing appeal to international investors. Historically, Lithuania has been home to one of its earliest film studios, established in 1948. Over the decades, this studio contributed to numerous creative projects, including feature films, television programs, animations, and documentaries. However, it eventually faced financial difficulties and went bankrupt. Its historic buildings in Vilnius were subsequently demolished in 2010, marking the end of an era for the city’s cinematic heritage. The new film studio represents an opportunity to revive and modernize Lithuania’s audiovisual capabilities, leveraging the country’s existing strengths while addressing current limitations. As discussions continue on funding and design, the project stands as a pivotal step toward strengthening Lithuania’s presence in the global film industry.