2011 02 03

Klaipeda FEZ - leading among the Baltic countries

The government hardly expected such flow of investors when the establishment of Klaipeda FEZ was approved in a city outskirts ten years ago. Under the contract with the government FEZ Management Company committed to attract no less than 58 million EUR of investment within 10 years after the beginning of operations.

First companies started to operate in FEZ territory in 2002. Five years later more than 10 large companies were already operating in the territory and had brought up to 134 million EUR of investment.

Today 16 different companies operate in Klaipeda FEZ which so far have invested almost 220 million EUR. Four more companies are either planning or already have started the construction works. It adds up to additional 145 million EUR investments. Potential investors come to the city almost every month.

Land remains in public hands

According to P. Vasiliauskas, CEO of FEZ Management Company, the success of FEZ greatly depends on the fact that until today the state manages to maintain the industrial area. Since the land was never privatized it allowed without any interferences to build roads, power lines, water and gas pipelines. Today FEZ area encompasses 412 hectares.

Enterprises located in Klaipeda FEZ manufacture and export biodiesel, plastics, plastic semi-finished products, metal products, provide logistics and warehousing services, fish processing and other. The site continues to attract investors - an agreement with new investor - HeidelbergCement was signed this summer. "Heidelberg Klaipeda" plans to invest up to 2.8 million Euros in the construction of cement distribution facility.

Time is the most important and valuable for businessmen. The success in the market and future profits greatly depend on such factors how quickly it is possible to settle, build a plant and start a production. It can take only a year to build a plant on the green field when the site is ready for the construction.

It is already invested up to 17 million EUR in the city infrastructure. Independent experts have calculated that the state's input to the development of infrastructure has already paid off 20 times.

Supervises investors

Klaipeda FEZ Management Company with a team of just 6 people assists every investor in the settlement procedures and later provides all the necessary services: prepares legal documentation, designs buildings according to customer needs and looks after construction, also maintains infrastructure. As a result companies based in Klaipeda FEZ pay corporate taxes for these services.

Investors coming to FEZ avoid land lease competition since the state has leased the entire territory to the FEZ Management Company. The company subleases the land for the same price as it was determinate by the government. This helps to avoid land lease procedures which often tend to last long and sometimes even reach the court.

The zone welcomes both large and small businesses and specific projects. The FEZ Management Company has prepared all the necessary infrastructure, lease production and storage facilities and can construct a building under any investor requirements and supervise the project from the beginning to the "turn of the key".

Gives benefits to national economy

Today there are ten foreign countries which had already invested in Klaipeda FEZ. During eight years the turnover of companies operating in the territory exceeded 1, 4 billion EUR.  About 80-90 percent of production is exported.

Attractive tax incentives

Solid tax incentives also attract investors to Lithuania FEZs. During the first six years all area-based companies are exempted from the income tax. The next ten years they pay only half of this tax.

For instance, Klaipeda FEZ enterprises are exempted from the property taxation. Foreign shareholders do not need to pay taxes on dividends. This allows saving up to half of total investment. Medium and small enterprises can save even up to 70 percent of investment due to tax incentives.