Klaipėda FEZ further shortening investors’ launch time with a universal production building

Lithuania’s Klaipėda Free Economic Zone (FEZ) is investing EUR 2.7 into a 6,000 sq. m universal production building for prospective investors, the first of a kind in the Baltics and Poland. It will allow setting up and starting of production within just 3 months. The construction is scheduled to be completed in the spring of 2018, and negotiations with two potential tenants from Western Europe and Asia are already underway.

FEZ universal building - visualisation

Universal production building that can be easily customised to the needs of individual investors is being implemented by the Klaipėda FEZ management company with a view to further shortening one’s production launch time.

Eimantas Kiudulas, general director of Klaipėda FEZ, says that launch speed was already a strategic priority; for instance, Klaipėda FEZ offers sites with pre-approved construction permits, allowing production start-up within half a year, and warehousing and office facilities ready to start “the next day”.

“Now we are taking another step forward by investing our own funds in the building that future investors can easily modify for their own production needs and start their production operations in 3 months after signing a contract. We are designing the building with regard to our research and discussions with current and prospective investors. With this building, we are focusing on the assembly industry, manufacturing of light metal structures, devices, and electronics. Such companies need multi-functional premises with a floor area of 500 to 2000 sq. m and a ceiling height of 6 metres at most. We will offer all these features in our universal building and expect to attract 4 to 6 enterprises here. As soon as all the premises are rented out, we will start construction of a second building of this type”, says the head of Klaipėda FEZ.

He explains that the launch speed criterion is one of the most important for today’s companies, and it is often decisive when choosing a location for investments. Investors also take into account such criteria as possible tax benefits, infrastructure, red tape, labour force quality, quantity and cost, and geographical location. 

“For example, the main Irish free economic zones stopped granting tax benefits some time ago, but the country continues to interest investors due to its good infrastructure and opportunities to start production quickly. We have excellent infrastructure and a port in Klaipeda just a few kilometres away, and so the possibility to start production within just three months will distinguish Klaipėda FEZ in the whole region”, explains Mr Kiudulas.

The commitment of Klaipėda FEZ to launch speed has already been recognised on a global scale. In October, it became the first ever and the only free economic zone to receive the Quick Launch Award in the Global Free Zones of the Year 2017 ranking from the Financial Times group’s fDi Intelligence.

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Klaipėda FEZ has been operating since 2002 and was the first of the six free economic zones currently operating in Lithuania. The FEZ has an area of 412 hectares and hosts companies engaged in the production of plastics, electronic devices, and steel structures, as well as energy and metal processing companies; the choice of these companies was due to the location, availability of qualified employees, and the infrastructure of the region. Today, Klaipėda FEZ is one of the most actively managed free economic zones in Lithuania according to the scope of attracted investment and the number of jobs created. 

To date, 27 companies employing over 2,500 people have signed agreements on the operations in Klaipėda FEZ. Two-thirds of the companies are foreign capital companies. Most of the products produced in Klaipėda FEZ are intended for export.

The number of companies operating in the territory of Klaipėda FEZ, including investors and small- and medium-sized businesses concentrating on them, exceeds 100, and these companies employ over 4,000 people.

Klaipėda FEZ was recognised as an economic project of national significance by a special resolution of the Government of the Republic of Lithuania.