On January 20, the modern plant of the German polymer company REHAU, which is the 35th in the world and the 15th in Europe, was officially opened in Klaipeda Free Economic Zone (FEZ). The 19,000 sqm factory was built in a record time by the sustainable urban development and construction company YIT Lietuva. 

REHAU plant is the company’s first facility in Northern Europe. The factory, which was built in just one year, will employ about 100 people in the near future, and the number will increase to 200 in the next couple of years. Equipped with the most advanced engineering solutions and technologies, one of the most modern factories in Lithuania will produce polymer pipes for the construction industry and export them to more than 10 countries around the world. It is planned to reach full production in Q4 this year.

According to the Minister of Economy and Innovation Aušrinė Armonaitė, such German investments contribute to the strengthening of the country’s manufacturing sector, creation of new jobs and increase of the country’s competitiveness.

“Strong growing industry is a key factor in the attractiveness and competitiveness of the country as a whole and of individual cities and regions. I am glad that one of the leading German companies is investing in Lithuania and implementing the most advanced solutions and technologies that create added value for all of us,” says A. Armonaitė.

According to dr. Roger Schönborn, in planning strategic development in Europe, REHAU assessed many potential locations in various regions of Europe. “Our new plant here in Klaipėda is a key success factor for our Building Solutions Division, because it provides an important contribution towards increasing our competitiveness and consequently, that of our customers,” says dr. Roger Schönborn, Head of REHAU’s Division Building Solutions.

REHAU plant manager Giedrius Kaukas says that the smooth construction process of the plant, despite the unfavorable circumstances – the pandemic and the resulting disruptions in supply chains, was achieved through the joint efforts of Klaipeda FEZ Management Company, YIT Lietuva and REHAU teams in Germany and Lithuania.

“We have chosen the sustainable urban development and construction company YIT Lietuva as the construction developer and general contractor, with whom we felt very calm about their experience in managing projects of this size and complexity,” comments G. Kaukas.

Kaukas notes that the construction project implemented by YIT Lietuva confirms the advantages of the so-called build-to-suit model – flexibility and the possibility to fully ensure the implementation of solutions that meet the needs of the company. The premises built and equipped in this way enabled the REHAU plant to start operations more quickly and without significant initial investment. This is proved by the opening of one of the most modern factories in Lithuania just a year after the start of construction. A total of over 30 million euros was invested in the construction and installation of the plant. The plant will be equipped with a total of 23 production lines capable of producing up to 6,600 km of pipes per month.

This REHAU plant project was implemented using extraordinary methods – Klaipėda FEZ Management Company and its partners first announced an international tender for the development of the facility, which was won and the plant was built by UAB YIT Lietuva according to the company’s needs. For the first time in the corporation’s history, REHAU has outsourced the development and management of real estate to third parties.

Just over 10 months after the start of construction, the factory has already installed its first production line and produced test products for certification. Two more months later, the plant was fully completed and commissioned.

MESTILLA, a rapeseed processing and biodiesel production company operating in the Klaipėda Free Economic Zone (FEZ), plans to start a new phase of expansion and modernisation in 2023: the construction of a new modern deep processing line for oilseeds, while introducing state-of-the-art environmental solutions. In the initial phase, investments of around €30 million are planned for these projects.

“The decision to invest was dictated by the European Green Deal, the increasing quantities of rapeseed grown in Lithuania each year and our ambition to produce higher value added products. We are seeing a growing demand for concentrated proteins for animal feed in Lithuania and in other EU countries, as well as an increasing demand for biofuels. The modernisation of the plant will allow us to process up to 500,000 tonnes of oilseeds and to develop a circular economy; the plant itself will be more energy efficient and reduce our carbon footprint. Most importantly, it will eliminate the possibility of odours in residential areas, thus meeting the expectations of neighbouring communities,” says Arūnas Zubas, CEO of UAB MESTILLA.

Eimantas Kiudulas, Head of Klaipėda FEZ, says he fully supports the project.

“The project will essentially be a reconstruction, during which some of the old production lines will be closed and new ones will be opened. I am delighted that MESTILLA will combine business development with substantial investment in odour reduction measures that will make the production footprint virtually odourless. The project will therefore be more modern, higher quality and more responsive to the needs of communities and neighbourhoods. At the same time, MESTILLA’s investment will create additional added value in Lithuania by processing local raw materials that have previously been exported unprocessed, and will further strengthen Klaipėda FEZ’s increasingly relevant investment portfolio in the areas of the circular economy, innovations, exports and renewable energy,” says E. Kiudulas.

“Canola production in Lithuania is increasing year on year, and not only is it economically attractive for farmers, but its properties are particularly beneficial for the soil, crop rotation, and the ecosystem, and in reducing the overall need for fertilisers for the soil and subsequent crops. It is therefore very important and welcome that as much rapeseed grown in Lithuania as possible is processed locally, creating added value, as it is an additional source of both income of and jobs throughout the supply chain, as well as additional revenue for the Lithuanian budget. It also avoids long logistics chains, thus contributing to reducing pollution and improving the environment. Deep rapeseed processing will produce innovative, protein-based products that have not been produced in the Baltic States before, which are particularly attractive and in demand in the food and feed industry of today, and tomorrow. And the production of advanced biofuels will help to achieve the objectives of reducing transport pollution, the Renewable Energy Directive and the circular economy,” says Dalia Rušiauskienė, Director of the Lithuanian Association of Cereal Processors and Merchants.

MESTILLA, together with the design company Sweco Lietuva, plans to start an Environmental Impact Assessment (EIA) procedure in December this year.

The MESTILLA plant has been operating in the Klaipėda FEZ since 2007. The company’s main products are biodiesel (methyl ester of fatty acids) and protein feed from rapeseed. The company, together with the companies providing services to it, directly creates around 120 jobs. For the 2020-2021 season, the company’s revenues amounted to EUR 148.5 million. The company sells its products on the local market, in addition to exporting them to surrounding EU markets.

Discover an unforgettable publication of the Klaipeda FEZ which is illustrated with wonderful photographs and facts. You will also find inspiring success stories, insights of CEOs and statistics. Finally, you will definitely understand all the reasons Lithuanian and foreign companies choose Klaipeda FEZ for their investments!
Source: https://issuu.com/klaipedafez/docs/discover_klaipeda_fez

YIT Lietuva, a real estate development company, has announced that it has signed an agreement with Hili Properties, a Maltese investment company, for the transfer of the plant of the German polymer company Rehau in the Klaipėda Free Economic Zone, writes Verslo žinios.

The investor is buying the 19,000 sqm building for an undisclosed sum in a share deal while Rehau will lease it. The deal is expected to be completed by the end of the year.

“This property will complement our existing portfolio of 6 shopping centres and six restaurants in the Baltics and is in line with our strategy to diversify our portfolio and tenant mix. In addition, the property, with its state-of-the-art production facilities, meets a wide range of sustainability criteria and is a sound long-term investment for us,” said George Kakouras, CEO of Hili Properties, in a statement.

Rehau and YIT Lietuva have shaken hands on the expansion of this plant in 2020. Under the agreement, YIT Lietuva will invest in expanding the micro cable pipe systems plant, and the manufacturer will lease it.

Kęstutis Vanagas, CEO of YIT Lietuva, says that the plant, which will be operational in January 2022, was built in record time to meet the customer’s needs: the project took 12 months from the preparation of the site to attract an investor.

“Although the project was complex and faced additional challenges due to the pandemic and disruptions in supply chains, we plan to finish on time – by the end of November. We do not doubt that it will be a win-win situation for all parties, and most importantly for the economy of the Klaipėda region and Lithuania as a whole,” said Vanagas in a statement.

The REHAU plant will create 190 jobs and produce floor heating pipes and cable ducts – 9,000 and 20,000 tonnes per year. The production in Klaipėda will be supplied mainly to wholesalers, telecommunications companies and municipalities in European countries.

Although the name REHAU is primarily associated with plastic windows in Lithuania, the German company’s activities are much broader than that – its polymer solutions are used in the automotive, construction, furniture, aerospace, and other industries. REHAU started as a family business and is still a family business, but today the company has more than 170 locations worldwide and an annual turnover of around €3 billion.

Two years ago, the company was scouting all over Europe for a location for a new plant, and the Klaipėda FEZ offered the Germans not only a well-developed infrastructure and an active business community, but also a variety of solutions that allowed them to advance the desired launch date by almost half a year.

Marijampolės laisvosios ekonominės zonos valdymo bendrovė, UAB (the Marijampolė Free Economic Zone Management Company, the ‘Baltic FEZ’) has started a new infrastructure development phase. Technical projects on the construction of a roundabout, a new road, and pedestrian and cycling infrastructure have been completed and delivered to the Marijampolė municipality for implementation. The technical documentation includes all requisite engineering systems such as electricity, water supply, sewerage, rainwater, gas and street lighting. The designing works were performed by Baltic Engineers, the company’s partner for industrial projects management and design of many years.
According to Simonas Petrulis, the Director of the Baltic FEZ, ‘the development and design phase is over, and a new period of construction works and new investment projects has started. The new roundabout designed for the FEZ and the road that connects the land plots in an approximately 20 ha area will enable us to offer investors the full range of services on turnkey basis, starting from design of standard-type industrial areas in the FEZ’s land plots. We expect that, in the next 3-4 years, we will become the first FEZ in Lithuania that is 100% in use.’
The Director expects that, after the Marijampolė municipality completes the projects on the construction of the Baltic FEZ‘s new infrastructure within approx. 1.5 years as planned, the FEZ which is just a few kilometers away from the town centre will be easily accessible not only by car but also by environmentally-friendly means of transport such a bicycles or even scooters.
In response to current issues including threats posed by climate change, the Marijampolė FEZ management company intends to support a nature friendly initiative – protection of the bee population both within the territory of the Marijampolė FEZ and the Marijampolė region as a whole. Jointly with a startup company Urbanbee.lt, the management company is inviting businesses to promote beekeeping in the region‘s industrial areas. The company will donate hives to new customers as an incentive promoting socially responsible partnerships.
‘We focus exclusively on high value-added investors that develop sustainable production and create well-paid jobs. In addition to all the tax preferences that the FEZ provides, we offer such investors exceptional opportunities for effectively advancing activities in the engineering industry (specifically, food, wood and metal production and research),’ – Simonas Petrulis explains the exclusivity of the Baltic FEZ operating in Marijampolė.
Marijampolės laisvosios ekonominės zonos valdymo bendrovė, UAB (Baltic FEZ) welcomes responsible partnerships with new investors that aim to create high value added. The Baltic FEZ seeks to attract new investments to the region of West Lithuania which consists of Marijampolė, Kazlų Rūda, Vilkaviškis, Šakiai and Kalvarija municipalities. Its priorities are sustainable economic development and socially responsible business. Dovista, one of Europe’s largest window and door manufacturers, is the first investor that has established itself in the Baltic FEZ.