A record year for Kaunas Free Economic Zone has been capped with an outstanding achievement - attracting the global automotive giant Continental to establish a new plant. It is the largest FDI project in Lithuanian history.

The technology company is set to invest EUR 95 million in building a production plant on a 13-hectare plot, creating around 1000 jobs over the next five years. The huge project adds even stronger argument for Kaunas as a hub for the automotive industry.

"Kaunas is a modern industrial region with excellent infrastructure and a highly skilled labor force, which makes it the perfect location for us. We are delighted that we will finally have the first Continental production plant in Lithuania," says Shayan Ali, managing director of the planned Continental factory in Kaunas.

"With the support of the Lithuanian government we intend to finalize construction and commence production by mid-2019," adds Mr. Ali.

"2017 has been a brilliant year for Kaunas FEZ and we are extremely proud and happy to have reached a deal with Continental," comments Vytautas Petruzis, managing director of the Kaunas FEZ Management Company.

"We have grown considerably over the past couple of years and the globally renowned names that keep landing in Kaunas FEZ prove that we are competitive on a regional and a European level. We are confident we will remain a solid partner to our investors and this will bring about an even larger automotive cluster at Kaunas FEZ," Mr. Petruzis stresses.

Earlier this year, another German automotive manufacturer, Hella, selected Kaunas as the location for its further expansion. Along with the US medical device manufacturer Hollister Inc. and a number of other significant investments, Kaunas FEZ has become a regional frontrunner in attracting large-scale investments.

Kaunas FEZ Management Company launched operations in 2004 and since then has attracted 32 investors, which together occupy an area of 103 hectares, 19% of Kaunas FEZ's capacity. Total investments at Kaunas FEZ so far amount to €634 million, 70% of which have come as FDI, and in total ~5000 jobs have been or will be created.