Purchases by Klaipėda FEZ companies exceeded EUR 200 million in Lithuania

In 2016, investors operating in Klaipėda Free Economic Zone (FEZ) purchased goods and services for EUR 200,5 million from Lithuanian suppliers, 1,9% more than a year ago. Last year was the first time when purchases by FEZ companies in Lithuania exceeded EUR 200 million.

The companies operating in Klaipėda FEZ are not only large employers and taxpayers, but also solid customers of businesses in Klaipėda region and Lithuania. Last year, purchases of goods and services by 29 investors operating in Klaipėda FEZ, exceeded EUR 200 million for the first time.

Among the largest purchasers of goods and services from Lithuanian suppliers were NEO Group, Mestilla, Retal and Fortum Klaipėda. A total of 15 companies operating in Klaipėda FEZ had purchases exceeding EUR 1 million last year.

According to Eimantas Kiudulas, Manager of Klaipėda FEZ, these numbers once again demonstrate the significance of foreign investment to the national economy.

“Currently, over 2,800 of employees are working in Klaipėda FEZ, representing every 20th person of working age in Klaipėda. Last year, FEZ companies paid EUR 32,5 million in employment-related taxes and VAT. However, the amount of purchases from Lithuanian suppliers is at least six times higher than that. Those two hundred million euros ultimately turn into wages for other Lithuanian suppliers, taxes or investment” – said Eimantas Kiudulas.

In 2016, all 29 companies operating in Klaipėda FEZ generated more than EUR 887 million in revenue (7,4% more that in 2015). Moreover, the exports of FEZ companies in 2016 accounted to EUR 635 million, which is 8,7% more than a year ago. Also, the exports of Klaipėda FEZ companies accounted for 2,8% of total Lithuania’s exports and for 28% of exports from Klaipėda region.

This year, Klaipėda FEZ is targeting service companies. Since the beginning of the year, Lithuanian legislation has expanded possibilities for service sector companies to invest in national free economic zones. For this reason, Klaipėda FEZ has already entered into negotiations with a company – an IT database services exporter – intending to benefit from the amended legislation by investing in Klaipėda FEZ.

Klaipėda FEZ is one of the most actively managed free economic zones in Lithuania

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, 29 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.

by Kostas Baubinas

Further information:

Neringa Petrauskaitė We Are Marketing Partner [email protected] +370 676 40572