Oil & gas piping producer signs a 4M EUR investment deal at Klaipeda FEZ

Oil & gas piping producer signs a 4M EUR investment deal at Klaipeda FEZ

Focus Fabrication Group (FFG) has acquired rights to a 1.18ha land slot in Klaipeda Free Economic Zone where a piping systems factory, warehouse and administrative premises are scheduled for launch in the first or second quarter of 2019 as part of a 4M EUR investment deal.

The construction of FFA’s 3700 sq.m. factory, warehouse, and administrative facilities is scheduled to start in August this year.  The company plans to employ more than 30 skilled welders, fitters and some administrative staff at the plant.

With the local technical schools training the talent needed to fulfill the requirements of an ever expanding market in the area, the company will be able to source the kind of employees it needs. These employees will then be able to enhance their talents within the FFG learning facility that the company intends to set up within its factory.

As Arvydas Galminas, FFG’s project manager explains, Klaipeda offers the perfect combination of location, infrastructure, services, and know how.

‘We also applaud the Klaipeda FEZ team for their help and assistance setting up the necessary permits and paperwork and other services,” Mr Galminas said.

FFG is partnering Trust Project Services (TPS) in this venture. TPS is a contractor company of a Western European oil & gas and energy industry headquartered in Klaipeda. It has employed nearly 200 highly skilled welders, fitters and electricians in the past three years, and its successful contracting business has paved the way for the start of Focus Fabrication Group’s production operations at Klaipeda FEZ.

Eimantas Kiudulas, CEO of Klaipeda FEZ, believes that FFG is a great fit for the free zone given the presence of another major specialized oil & gas supplier at the zone and the oil & gas ecosystem in Klaipeda.

“A great example is the oil & gas technology company Advantec, which is part of Baker Hughes / General Electric. It operates a 70-strong team at Klaipeda FEZ which designs and manufactures downline reels for pipes and lines used for deep-water applications. Given the LNG terminal and the LNG ecosystem at the Port of Klaipeda, let alone the LNG cluster, this investment further strengthens Klaipeda’s position on the global petrochemical map,” Mr Kiudulas said.

Advantec currently employs more than 60 welders and a team of highly skilled engineers at its plant. The company has invested more than 7.5M EUR into its operations at Klaipeda FEZ.

Mantas Katinas, General Manager at Invest Lithuania, maintains that FFG's investment will further strengthen Klaipeda‘s position as a leading regional hub for oil & gas solutions.

“FFG’s decision to invest into a learning center on top of their manufacturing infrastructure is both a major contribution to Klaipeda’s oil & gas ecosystem and a sign of trust in our business environment."

Klaipeda Free Economic Zone (FEZ) is the first and most successful FEZ in the Baltics. It generates around 2.5% of Lithuania's GDP and accounts for around 3% of exports.

It is the largest tax free zone in Lithuania, consisting of 412ha land for manufacturing plants, logistic and business park development. It was recognised by the Financial Times in 2017 for providing the world‘s fastest on-site operation launch for its clients. Moreover, since 2010 it has also held distinction as a site offering premium infrastructure (5th best SEZ facilities in the world according to fDi Magazine, Financial Times).

Klaipeda FEZ connects over 4300 employees who work at more than 116 industrial businesses based here. It has a strong track record of providing extra care and service to multinational clients such as Yazaki, Indorama PET, General Electric, Albright and others. Most of these businesses have been globally recognized numerous times for their rapid expansion and achievements in business efficiency.

Klaipeda FEZ members benefit from a tax free business environment with preferential economic and legal status, easy access to their customers in EU, Scandinavia, former CIS countries (Ukraine, Belarus and Russia especially) through rail, road and sea network, and a number of aftercare services – mediation with government institutions, development, HR, legal, financial advice, infrastructure, community and leisure services for their employees.