Klaipėda Free Economic Zone

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Klaipėda Free Economic Zone
public limited liability company
Industry Tax free zone. Industry focus: plastics & chemicals, offshore & large metal structures, electric vehicles & components, food processing, value added logistics and others.
Founded 2002 m., Lithuania
Headquarters Pramonės st. 8, LT-94102, Klaipėda, Lithuania
Revenue €1bn (2018)
Number of employees
more than 5,400 employees work at FEZ
Website fez.lt

Klaipėda Free Economic Zone or Klaipėda FEZ (Lithuanian: Klaipėdos laisvoji ekonominė zona) is the first and most successful free economic zone in the Baltics, as well as the largest tax free zone in Lithuania. It was established in 1996, officially launched in 2002, and is currently managed by the Klaipeda Free Economic Zone Management Company.

Klaipeda FEZ consists of 412ha of land dedicated to manufacturing plants, logistics, and business park development. In 2017, Klaipeda FEZ became the first and only free economic zone to receive the Quick Launch Award from fDi Intelligence. It is also internationally recognized for its specialism within the plastics industry, contribution to the national economy, energy efficiency, as well as the rapid on site expansion experienced by its investors. Klaipeda FEZ is located in Klaipeda (Lithuania), at the heart of Europe, and offers easy access to markets in the EU, Scandinavia, and former CIS countries (Ukraine, Belarus and Russia especially) via an extensive rail, road and sea network. Klaipeda FEZ plays a key role in the regional and national economy, creating value amounting to 2-5% of Lithuania’s annual GDP. It has a strong track record for providing extra care and service to multinational clients such as Yazaki, Indorama Ventures, General Electric Oil&Gas, Albright and others. As of April 2018, Klaipėda FEZ encompassed 29 investors from 16 countries with a total yearly revenue of 1bn Euros, and total exports accounting for 720M Euros. There are more than 100 companies operating within the area of Klaipeda FEZ with more than 5400 employees. 7,3% of Klaipeda's working population work within Klaipeda FEZ.

History[edit]

Tax incentives
Tax
Corporation tax 0% (first 10 years)
7.5% (following 6 years)
Real estate tax 0%

The first steps for the establishment of the zone were undertaken in 1996. In 1997, a management company was selected after reviewing five proposals.[1] The Klaipėda FEZ is managed by Klaipėdos LEZ valdymo bendrovė, a joint stock company. The Baltic Fund, an investment fund, financed by the Rockefeller and Company, Lazard, and investors from Saudi Arabia,[2] owns about 60% of the management company. The remaining shares are owned by city enterprises, municipality and the government of the Lithuanian Republic.[3]

In 1997, one of the first investments to the zone was announced by Penninox, a U.S.-based metallurgical company, to build a US$45-million steel processing plant.[4] However, due to various bureaucratic obstacles,[5] the groundbreaking ceremony took place only in July 2001.[6] However, the company withdrew by 2004.[7] Another set of obstacles was raised during Lithuania's negotiations for accession to the European Union.[8] Klaipėda FEZ began its activities in December 2001.[9] In 2003, Thailand-based Indorama announced investment of 80M euros into plastic production factory.[10] To further attract investors to FEZ, Lithuanian-based companies were allowed to participate since 2004.[11] A year later, the FEZ began plans for expansion and further development of its land, requesting assistance from structural funds of the European Union.[12] By the end of 2007, FEZ attracted some 600M litas (174M euros) of investments.[13] By the end of 2016, the total accumulated foreign direct investment in Klaipėda FEZ accounted for 671M euros.

Currently, more than 5400 employees work at FEZ investor and supporting companies, which is 7,3% of Klaipeda's talent pool.

Location[edit]

Klaipeda FEZ is located in the south-eastern part of the city of Klaipėda, near the main transport Klaipeda-Vilnius highway. The distance to the Port of Klaipeda is 8 km, while to Palanga International Airport it is 35 km, to Kaunas Airport it is 218 km, and to Vilnius Airport it is 304 km.

Operations within FEZ[edit]

The Klaipeda FEZ community currently connects over 5400 employees working in more than 100 industrial businesses focused in the Plastics & PET, food processing, offshore & large metal structures, electric vehicles & components, value added logistics and other industries.

Klaipeda FEZ has signed agreements with 29 foreign and Lithuanian companies. In total, 16 countries are represented. Since the start of their operation, these companies have invested more than 671M EUR in the Klaipeda FEZ.

In total, the companies based in Klaipeda FEZ account to 2,7% of national exports in 2017 and nearly 60% of Klaipeda’s foreign direct investment is accumulated at the Klaipeda FEZ.

Klaipeda FEZ is a recognised economic project of national significance.[14]

Companies[edit]

Major companies operating within Klaipeda FEZ:

  • Yazaki Wiring Technologies
  • Indorama Ventures
  • Neo Group
  • Baker Hughes, a GE company
  • Glassbel Baltic
  • Espersen
  • Vesvela
  • Fortum Klaipėda
  • Mestilla
  • Retal Baltic
  • Ani Plast
  • Albright Lietuva
  • BNTP
  • HeidelbergCement Group
  • Vingės Logistika
  • BMG Logistika
  • AD REM LEZ
  • AD REM PORT
  • Pack Klaipėda
  • Lavango Group
  • Skuba
  • Hugaas Gruppen
  • Be-Ge Baltic
  • Vėjo projektai
  • Dalios Gintaras
  • Lindström
  • Focus Fabrication Group
  • Capella Baltica
  • Baltic Eukutecas
  • Philip Morris International (operating outside the official Klaipeda FEZ territory)

Achievements[edit]

  • In 2017 Klaipeda FEZ was recognised (to be announced) within the categories of “Quick Launch award” (Editor’s choice), Expansion, Energy Efficiency, Specialism (for Plastics industry) and Contribution to the National economy. Investors wishing to establish operations in Lithuania’s Klaipeda FEZ can use the zone’s Fast Factory Launch scheme. The scheme offers companies ready for use sites that come complete with all the required construction permits, as well as the ability to make minor adjustments to customise the site to fit the investor’s needs. Outside of Klaipeda, construction permits in Lithuania can take up to six months. Additionally, the Flexstart programme aims to allow investors to commence operations in less than one month, with customisable pre-built manufacturing facilities. New offices are currently under construction that will be offered to SMEs as part of the programme.[15]
  • In 2015 Klaipeda FEZ was commended for local co-operation at the Global Free Economic Zones in fDi Markets by Financial Times.[16]
  • In 2010, fDi Magazine, published by the Financial Times, ranked the Klaipeda Free Economic Zone 5th place in the category Best Facilities, and also ranked it 19th overall globally within the economic zones category.[14]

General Facts & Information[edit]

  • Address – Pramonės st. 8, LT-94102, Klaipėda, Lithuania.
  • Official website: www.fez.lt
  • The Klaipeda FEZ is managed and administered by the Klaipėda FEZ Management Company, CEO Eimantas Kiudulas.
  • Start of operations: 2002
  • Total area: 412 ha
  • Number of operating companies: 100+, 29 of them - large manufacturing and logistics companies attracted by Klaipeda FEZ team.
  • No. of countries represented by companies: 16
  • Jobs created: 5400
  • Investment since start of operations: 671M Eur.
  • State investment: 6,4M Eur.
  • Revenue generated by investors in 2017: over 1bn Eur.
  • Export in 2017: 720M Eur or 2,7% of Lithuania's national export

References[edit]

  1. ^ Valeckas, Edgaras (1997-03-21). "Laisvoji ekonominė zona jau popieriuje" (in Lithuanian) (26). Verslo žinios: 5. 
  2. ^ Shadigian, Vanda (May 2000). "Corporate member profile: The Baltic Fund Today and Tomorrow". American Investor in Latvia. 11. 
  3. ^ BNS (1997-04-23). ""Siemens" pirmoji". Verslo žinios (in Lithuanian) (39): 17. 
  4. ^ Valeckas, Edgaras (1997-10-29). "Klaipėda suteikė lengvatų investuotojams". Verslo žinios (in Lithuanian) (120): 5. 
  5. ^ "Klaipėdos LEZ tebėra popieriuje" (in Lithuanian) (117). Verslo žinios. 1999-06-18. p. 5. 
  6. ^ "Ground-Breaking of New Penninox Facility". Embassy of the United States in Lithuania. 2001-07-13. Archived from the original on 2010-01-01. 
  7. ^ "Aukso kalnus žadėjusius investuotojus pakirto bankrotas - spauda" (in Lithuanian). Verslo žinios. 2004-06-28. 
  8. ^ Valeckas, Edgaras (2000-04-11). "Miglotos LEZ perspektyvos". Verslo žinios (in Lithuanian) (71): 7. 
  9. ^ "Klaipėdos LEZ jau statomos gamyklos". Verslo žinios (in Lithuanian) (113): 3. 2002-06-12. 
  10. ^ "Klaipėdos LEZ atkunta: atkeliauja ir Lietuvos, ir užsienio kapitalas" (in Lithuanian). Verslo žinios. 2003-12-04. 
  11. ^ BNS (2004-02-13). "Nuo pelno mokesčio - į LEZ" (in Lithuanian) (30). Verslo žinios: 7. 
  12. ^ Vasiliauskaitė, Gabrielė (2005-04-12). "Klaipėdos LEZ bus plečiama pramoniniu parku" (in Lithuanian) (69). Verslo žinios: 6. 
  13. ^ Dvarionaitė, Nijolė (2007-11-26). "Klaipėdos LEZ'ą pasaulis pastebėjo". Verslo žinios (in Lithuanian) (224): 4. 
  14. ^ a b "About Klaipeda FEZ". fez.lt. 2011. Retrieved 2012-11-19. 
  15. ^ "fDi Global Free Zones of the Year 2017 – the winners". 2017-10-09. 
  16. ^ "fDi Global Free Zones of the Year 2015 - the winners" (PDF). 2017-12-03. 

External links[edit]

Coordinates: 55°41′N 21°11′E / 55.683°N 21.183°E / 55.683; 21.183 Template:Lithuania special economic zones