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
UAB Vingės logistika, a warehousing and cargo handling services company operating in Klaipėda FEZ, completed a warehouse expansion project in December. The project involved the construction of 8,000 sqm of new warehouse space, bringing the company’s total warehouse space in Klaipėda to 28,000 sqm. The company invested more than EUR 4 million in the project.
According to Aušra Karalienė, CEO of Vingės Logistika, further expansion is planned once the new space is fully utilised and the processes therein have been harmonised. Back in 2019, the company announced that it would expand its warehouse space to 40,000 sqm in several phases with an investment of around EUR 12 million – a strategic plan that is not being abandoned, but more specific deadlines will be determined by the needs of existing customers and market requirements.
“We are committed to adding value to our customers’ businesses, so part of the new building will be dedicated to the expansion of the services provided to our long-standing customer UAB DSV Lithuania. At the same time, we are in the process of negotiating terms with our clients for the remaining available space. This expansion will strengthen our position in the warehousing services sector, enable us to respond quickly and flexibly to the changing needs of our clients and allow us to provide our clients with the highest quality of service,” comments A. Karalienė.
According to her, this expansion phase will allow the company to create 10 new jobs. The expansion project under extraordinary external circumstances was managed by the developer UAB Traktus.
Vingės Logistika is also currently focusing on process optimisation and strengthening and expanding its service portfolio. One of the areas where the company sees the most commercial potential is internal logistics in the manufacturing sector, i.e. providing customers with all processes, from the timely delivery of materials to the removal of finished products from production warehouses.
“We already have considerable experience in this area. I believe that combining external and internal logistics services in the same hands is one of the services that really adds value to the customer and currently has a high potential for further growth,” says Ms. Karalienė.
Another strategic direction for Vingės Logistika, according to the director, is green and sustainable logistics, which is becoming more and more relevant for both customers and the general public.
“These trends have led our company to incorporate green solutions into our operations. Since 2017, we have been using electricity generated by our solar power plant, and we will be installing another one on the roof of our new building. We are also implementing other sustainable solutions and are constantly looking for innovations in this area,” says Ms. Karalienė.
According to Eimantas Kiudulas, the head of Klaipėda FEZ, Vingės Logistika, which has been operating in the free zone since 2009, has successfully used the pandemic for sustainable business development.
“I am pleased that Vingės Logistika is successfully taking advantage of business opportunities both inside and outside our community, as well as expanding in a sustainable manner in several aspects – both well calculated and by investing in environmental solutions,” commented E. Kiudulas.
Vingės Logistika currently employs around 90 people. The company’s revenue last year was EUR 3.5 million. The company specialises in complex logistics services – warehousing, customs brokerage, cargo handling, and others.
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.
Klaipėda Free Economic Zone has been awarded special honourable mention in the EU Compliance and 5G Connectivity categories of the Financial Times Group’s annual Free Zone Awards, published by the foreign direct investment publication fDi Intelligence.
Klaipėda FEZ was awarded the EU Compliance Award largely due to its decisions which are in line with the European Union’s Environmental, Social and Governance (ESG) objectives: the airflow and odour monitoring project implemented together with residents and scientific communities; the investments made by the management company and the individual companies in sustainable mobility and green energy; as well as the tens and hundreds of millions in taxes and purchases in Lithuania each year, contributing to a more sustainable economy in the region and the whole country.
Klaipėda FEZ was awarded the 5G Special Prize as one of the first industrial areas in Lithuania and the world to introduce this new generation of connectivity at the end of last year. At the same time, the FEZ management company is implementing Internet of Things (IoT) network technology. Both of these networks are of particular interest to businesses that can develop next-generation robotics and automation solutions.
According to Eimantas Kiudulas, the head of Klaipėda FEZ, these evaluations by fDi Intelligence consistently prove that the strategic directions have been correctly chosen and that they are unique in the global context of free zones.
“Sustainability, innovation and social empowerment are very popular concepts today, so it is nice to be able to speak in deeds, to be visible in these areas, and to have local and foreign investors contributing to these achievements. At the same time, it is an important recognition for Klaipėda as a whole, which strives to be visible as a regional leader in innovation and wants to develop, retain and attract talent,” says E. Kiudulas.
The 5G connectivity in the Klaipėda FEZ territory was installed by Telia, which has been testing this technology in Lithuania for almost three years. According to the company’s head of corporate clients, Danielius Karpovičius, it is predicted that 5G connectivity will bring changes that will encourage companies around the world to improve their existing services and create new services or even new businesses which will create clear added value. In addition, operators will reap the benefits of 5G by offering new services, including closed 5G networks for enterprises or connecting millions of IoT sensors.
“Together with Klaipėda FEZ, we have taken another strong step towards the future, and over the next few years, we will show Europe that Lithuania can lead the way in the development of 5G communication technology,” says D. Karpovičius.
In previous years, Klaipėda FEZ won other significant, major fDi Intelligence free zone awards, including in the Quick Launch (2017) and Sustainability (2020) categories.
At the beginning of October, the Klaipėda FEZ was also awarded another significant accolade – the main titles in the Investment Monitor’s Economic Zone Sustainable Recovery Strategies Awards in the categories of digitalisation and reduction of red tape, as well as additional awards in the areas of Industry 4.0 and positive impact on the city.
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.
The Ministry of the Economy and Innovation and Viešųjų investicijų plėtros agentūra UAB (the Public Investment Development Agency,) signed an agreement on the establishment and funding of a new financing facility under the title ‘Construction of standard-type production buildings in free economic zones, industrial parks and other industrial areas’ as an incentive for businesses.
This year, EUR 31.05 million have been allotted from the state budget for this facility. Total estimated funding of the facility by the state amounts to EUR 41.4 million. The funds will be invested in the establishment of economic infrastructure and construction/reconstruction and fitting out of standard-type buildings for production and research purposes.
Aušrinė Armonaitė, the Minister of the Economy and Innovation, has said to BNS that ‘….the facility will both increase the number of investment projects in the country and enable a growth in Lithuania’s competitiveness and the economy as a whole.’ Giedrius Valuckas, the President of the Association of Lithuanian Free Economic Zones, emphasises, that ‘the facility will offer more opportunities and options to those investors who seek a quick transfer of production projects. Due to successful industrial growth, at present there is an increased demand for lease of industrial areas, therefore, the facility will enable Lithuania to attract and implement larger numbers of quick (dynamic or ‘hot’) projects.’
The new financing facility will fund costs of construction of standard-type buildings including preparations for construction, site management, installation or reconstruction of requisite infrastructure and engineering networks/systems in the land plot, and costs of other construction works directly related to the building as well as engineering supervision. The facility also covers reconstruction of a building already existing in the FEZ, industrial park or another industrial area.
Standard-type buildings are universal structures adapted for production and having developed infrastructure. Furthermore, such buildings have been designed for standardised production, with opportunities for expanding provided for. It is expected that the facility will be of particular use for investors as it will allow establishment in Lithuania’s free economic zones, industrial parks and other industrial areas right away.
Long-term (up to 15 years) preferential loans up to EUR 10 million will be granted to FEZ companies and their subsidiaries, operators of industrial parks (except for natural persons), and municipalities.
The new financing facility will be implemented according to the continuous selection principle. Applications will be received by Viešųjų investicijų plėtros agentūra UAB.
This week, the manufacturers of DANCER electric city buses Vėjo Projektai from Klaipeda FEZ and the Lithuanian automotive company Altas Auto producing medium and small class electric buses, signed a cooperation agreement that will help to better achieve common goals in both Lithuanian and foreign markets. By joining forces, the companies will also jointly make sales in EU markets.
Sharing engineering experience and representing the interests of sustainable transport at the national level are the main tasks of the alliance brought together by the two largest Lithuanian electric transport manufacturers, a joint press release states.
“The market for electric bus manufacturers in Europe is still in its infancy, so there is a great lack of common understanding and information for national and urban decision-makers about the opportunities and benefits of the new generation of electric urban transport. Together with “Dancer”, we are the leaders in engineering innovation in this field, so we will maintain an active dialogue with decision-makers and thus strive for faster growth in this field,” says Edvardas Radzevičius, the CEO of Altas Auto.
“Compared to large automotive corporations, we are a relatively small company, so only by joining forces can we be competitive,” says Alvydas Naujėkas, the General Manager of Vėjo Projektai. “We believe that the EU-wide political priority, mobilized financial resources to develop electric transport systems and the growing demand for electric buses will allow Lithuanian manufacturers to successfully establish themselves in European markets”.
Today, both Lithuanian electric bus manufacturers focus on different bus classes, so the combined sales forces will offer the customers a wider choice of vehicles – M2, M3 class city and intercity buses.
Companies’ executives hope that this cooperation will help ensure the competitiveness of Lithuanian vehicles in foreign markets, and we will see “Dancer” and “Altas Auto” buses in more and more European cities.
In European countries, the market for electric buses is growing extremely fast. Of the more than 5,000 large electric buses currently registered in Europe, more than 3,700 have been registered in the last two years.
However, the market is only gaining momentum, with 22% more electric buses registered last year alone than in 2019. Moreover, in the streets of European countries, almost 600,000 polluting diesel-powered public transport buses are still used and to be in line with the EU’s Green Deal efforts to reduce transport pollution, they should be replaced by clean ones in the next couple of decades.
The new agreement between Vėjo Projektai and Altas Auto will open opportunities to develop new electric transport engineering solutions, implement a joint sales strategy, have joint sales and vehicle service representatives in European countries, and participate in public procurement of state or municipal public transport companies.
Since attracting its first investor in 2005, the Kaunas Free Economic Zone (FEZ) has had a number of significant achievements in its history – from attracting one of the largest foreign investments in Lithuania to more than 6.2 thousand new jobs created by businesses operating in the territory of the FEZ. To add to this list of achievements: entering the zone of nine zeros – investments attracted by Kaunas FEZ exceeded a billion euros.
“The Kaunas FEZ is a dynamic project that develops as a result of both internal and external factors. New infrastructure is constantly being installed in and around the territory, from the construction of new streets to the construction of viaducts to control traffic flows; the legislative framework and the application of tax incentives are being improved. A favourable investment environment for the implementation of new projects is created by the growth processes of the Kaunas region and the resources of talents, much needed for business. The first billion euros in investments generated by customers mark not only the contribution of the management company to the creation of a business environment for rapid establishment, but also the essential and timely potential of the Kaunas region,” noted Vytautas Petružis, Director of the Kaunas FEZ Management Company. He also stresses that investments are not just a number: they bring people back, protect against brain drain, and, as the experiences and examples of companies operating in the Kaunas FEZ show, investments multiply and convert into even larger numbers – the amount of investments attracted by Kaunas FEZ is increased not only by new investors coming, but also by existing ones expanding their activities.
Currently, 44 investors have rented about 155 hectares of the Kaunas FEZ territory, employing more than 6 thousand people in manufacturing and service companies, and since 2007, when the first employees started to work in Kaunas FEZ, over €131 million in employment taxes have been generated.
Sustainable enterprises, both local and foreign, set up here. The latter generate for the Kaunas FEZ 67% of FDI, which leads to the arrival of modern technologies several times faster than the Lithuanian average. According to Mr Petružis, the Republic of Lithuania, the European Union, and the municipalities of Kaunas district and Kaunas city have invested around €23 million in the Kaunas FEZ, and the profitability of this project for the state is already 5.6 times higher.
“Lithuania can compete effectively with other foreign countries in attracting significant foreign capital projects by having a place ready for investment. Foreign direct investment in the Kaunas FEZ is several times higher than the Lithuanian average, while the total ten-digit amount of investments attracted shows Lithuania’s real attractiveness for this type of project. At the same time, this is also an achievement for the whole region of Kaunas – foreign investors create highly qualified jobs, contribute to technological development and successful industrial expansion,” noted Vida Staskonienė, Director of the Business Development Department of Invest Lithuania.
“The one billion in investment attracted by the Kaunas FEZ is a truly extraordinary event that demonstrates the huge potential of our country’s economy. All investments are essential for our economy, not only contributing to the creation of new well-paid jobs, but also strategically increasing technological breakthroughs, the country’s visibility, and global competitiveness. We aim to create favourable conditions for investors to settle and expand in Lithuania – this requires a long-term and sustainable state strategy that ensures favourable conditions for investment, high qualification of employees, and adequate infrastructure,” said Aušrinė Armonaitė, Minister of Economy and Innovation.
From first founders – to local ambassadors
In 2007, one of the first “settlers” in the territory of the Kaunas FEZ was the Lithuanian-capital innovation and production company Elinta. However, at that time their new building actually seemed too spacious: the Elinta group of companies had only three companies and 60 employees, so part of the building was rented out to other companies. In 14 years, the group grew to seven companies that today employ more than 140 employees and now occupy the entire building.
Recalling the first steps in transferring activities to the then only just-formed territory of the Kaunas FEZ, Vytautas Jokužis, CEO of the Elinta group of companies, admits that although it was somewhat inconvenient to move to a completely empty area of the countryside, attractiveness was both in the right first infrastructure installation steps and the FEZ strategy itself.
“I never doubted that in such a geographically convenient location, near Kaunas and near the main transport lines, was the most suitable place for our company. Moreover, although I had another spot for my company at that time, there was no good way to get there. When I calculated how much it would cost to build a road – I chose the Kaunas FEZ. The main draw here was the knowledge that this place is for industry, so, say, private homes, will never crop up next to our company. In addition, since we were engaged in automation work at that time, I hoped that our services would also be of interest for companies in this area. This was exactly the case: the FEZ companies are now our customers. Calculating the tax benefits received during those 14 years results in a decent amount that I invested in the development of my business. And this means that the benefits allowed us to grow even faster,” said Mr Jokužis.
Plans to focus on growth
With the biggest leaps both in terms of the amount of attracted investments and the number of sub-leased space and new jobs created in the history of Kaunas FEZ, the year 2017 is notable. It was a time when, among other investors, , leading companies in the automotive industry entered the territory – and Lithuania.
One of them is HELLA Lithuania, who, looking back to recent years of operation, first of all note that the decision to settle in the Kaunas FEZ was determined by very clear and specific criteria, all of which were met by this territory: business-friendly higher education institutions that prepare good workers, the supply of skilled workers on the market, adequate infrastructure, attractiveness of the country. and good cooperation with public institutions. “Our future plans focus on growth: HELLA has a successful product portfolio that takes into account major trends in the automotive industry, including electrification and automated control solutions. HELLA Lithuania is interested in continuing its success story in Lithuania. And, we will be happy if our successful activities in Lithuania inspire other investors too. We are especially looking forward to the development of automotive component suppliers in Kaunas – here we see great prospects and opportunities for the future,” said Tobias Pohlschmidt, Managing Director of HELLA Lithuania.
These objectives require, of course, qualified and motivated staff; the demand is especially high for engineers with a technical education and a background in quality and logistics management. The company manages to attract some of the necessary employees to Kaunas from abroad, both by inviting foreigners to work and bringing back Lithuanians from emigration.
Returning expats
No less successfully emigrants are returned to Lithuania by another Kaunas FEZ-based and rapidly growing international health care product manufacturing company, Hollister, which invested about €50 million in its first opened plant. A year ago, the company announced that one in six of their employees had returned from emigration.
“This trend is still going strong. In addition, we always ask our new employees what encouraged them to return to Lithuania and choose to work in our company. Most often these are people who already have work experience in an international company and are looking for employers meeting the same criteria in their home country. So, our company perfectly meets their expectations,” said Shane Caher, former CEO of Hollister Lietuva.
Representatives of the company say that one of the main reasons that led to the decision to settle in Lithuania was that Lithuanian and Hollister’s working cultures are very close: employees value education, are prone to innovation, are able to work together, and implement what they promise.
“Today we can confirm that we were not mistaken,” said the company, operating in the Kaunas FEZ territory since 2019.
Hollister in Kaunas has one of the largest divisions of the company in the world, which in the future could become a centre of excellence.
16 years after the first investor in the Kaunas FEZ, established in 2005, the customer circle has expanded to 44 companies. Although this is just the beginning of the Kaunas FEZ project, the amount of investments of companies operating in this industrial area has exceeded €1 billion. During 2018–2021 alone, the companies operating in this territory created 4,000 jobs and invested over €580 million. Since 2018, the companies operating in the Kaunas FEZ have carried out six development projects with investments amounting to €250 million. A further four projects have been planned in the coming years, which will contribute significantly to the overall indicators of attracted investments and jobs created in the Kaunas FEZ.
ROTEKSAS, a Lithuanian company that designs, manufactures and assembles industrial production lines, has leased two land plots with a total area of 3.2 hectares, and acquired manufacturing premises for bulky equipment in Klaipeda’s Free Economic Zone (FEZ). The company intends to implement an expansion project in the coming years, which will create 100 new jobs and invest in new equipment.
Thus far, the company has been operating in two production areas in the Klaipėda district near the FEZ – in Švepeliai and Daupariai towns. ROTEKSAS has so far managed about 4,000 square metres of production area. From now on, UAB Roteksas LEZ, which has acquired investor status in the FEZ, will implement production projects in an additional 5,000 sqm premises, creating 100 new jobs.
According to ROTEKSAS CEO Žygimantas Petronis, the decision to expand was dictated by rapid growth in recent years, and Klaipėda FEZ offered not only good conditions and infrastructure but also a modern manufacturing building, which suited the company’s needs almost perfectly.
“We have acquired a bulky equipment plant with large gates, powerful cranes and the infrastructure to match our needs, which will allow us to use our expertise to produce an impressive range of products, which can be easily shipped around the world via the nearby port. In the Klaipėda FEZ, we will be able to solve internal and external logistics issues very easily and quickly. We have already started work on the new plant and plan to create 100 new jobs, expand the capacity of the plant and invest in equipment over the coming years,” Ž. Petronis says.
Currently, a third of ROTEKSAS’s staff are specialists with an education in engineering – designers, craftsmen, project managers, procurement engineers and others. In addition, the manufacturing workshops are staffed by qualified welders, assemblers, locksmiths, fitters, adjusters and others. A similar employee profile is expected to be developed at the Klaipėda FEZ plant as well.
“Today’s main challenge is the doubled demand for personnel, training and integration. Due to the company’s exceptionally rapid growth and development, there is a lack of qualified staff, and so, we are constantly seeking motivated staff who are keen to improve. We are currently looking for project managers, design engineers, estimators, production accountants, process managers, craftsmen, welders, assemblers, calibrators, locksmiths, mechanics, warehouse staff, and other production and administrative staff,” the head of ROTEKSAS comments.
He also mentions that the company is confronted with commodity supply deadlines, which require constant analysis and prompt planning.
The head of Klaipėda FEZ Eimantas Kiudulas welcomes ROTEKSAS in joining the FEZ business community. According to him, thanks to favourable circumstances, Klaipėda FEZ was able to offer the new investor optimal manufacturing premises especially quickly.
“The speed of our client’s operations launch has always been a standout feature of Klaipėda FEZ. We are glad that ROTEKSAS could already begin the first real work in the newly acquired premises within just a little over a month from signing our contract. I am confident that the company will also successfully leverage the other advantages offered by our infrastructure and business community,” E. Kiudulas says.
Operating since 2007, the company specialises in industrial equipment, technological, engineering and manufacturing solutions out of stainless steel, plastic and standard equipment parts. ROTEKSAS does not reveal the investment drawn by the expansion due to confidentiality obligations.
Around 90% of ROTEKSAS’s turnover comprises exports to markets such as Norway, Japan, Switzerland, the USA, and the EU, Latin America, and Russia. In 2020, the company’s turnover reached 5.94 million euros, an increase of 58% over 2019.
Klaipėda FEZ is the longest operating and leading free economic zone in Lithuania. Forty-five companies operate across its 412-hectare territory with a combined turnover of 927 million euros in 2020 and exports of 478 million euros.
Since the launch of Klaipėda FEZ, 747 million euros have been invested in the zone, with most of this sum being a foreign direct investment. Over 100 companies and almost 6000 staff work across the territory. Klaipėda FEZ’s investors primarily specialise in PET, electrical transport and components, food industry, industrial equipment and other areas. Some of the FEZ’s companies perform manufacturing activities and develop intensive scientific, research, and innovation operations.
After the launching of the project on the Production Innovation Valley, on 27 April 2020 the project partners Aedilis, BaltLed, Pažangios Inovacijos, Prezicika Metrology and Proftools formed an innovative production cluster under the name of the Production Innovation Valley. Its purpose is to join production organisations together into a group that aims to increase both horizontal and vertical integration of industries; to achieve, through the development and employment of digital and green technologies, a transformation into a high- and medium-technology industries; to expand production and export of products with high value added; to enable an increase in international competitiveness of both the Cluster’s members and Lithuania’s industrial sector as a whole.
As interest in the activities of the Production Innovation Valley is growing, the founders of the Cluster have decided to admit new members. Any organisation that wishes to be a part of the production innovation ecosystem is welcome.
Marijampolės Laisvosios Ekonominės Zonos Valdymo Bendrovė UAB, a management company, is the first new member of the Cluster. Simonas Petrulis, the company’s CEO, says: ‘Our free economic zone is currently focussed on investments with a higher value added that are related to innovative biotechnology and food production industries. Both foreign and domestic businesses are equal priorities to us. It is important for us to be in a club of production innovation leaders, to get to know Lithuanian production companies – and participate in the European value chains at the same time. We believe that many successful projects will be implemented jointly with the team of the Production Innovation Valley and other businesses of the Cluster.’
Gintaras Vilda, Director of Pažangios Inovacijos UAB which acts as the coordinator of the Production Innovation Valley Cluster, expresses his satisfaction that the first new member of the Cluster is a company of the region. ‘Production innovation, in particular in the digital area, is boundless. It is quite symbolic that a Marijampolė company, which has stepped into a new stage of business and has ambitious goals to attract innovative production organisations to the region, has become a new member of the Cluster. The Production Innovation Valley is an ecosystem for any organisation of Lithuania as innovative ideas are not subject to geographic restrictions.’
A cluster is a voluntary conglomeration of businesses and/or science and academic organisations and other entities that functions according to a principle of partnership. Its members act jointly with the aim to increase value added. Areas on which members of the cluster are focused: information and communication, cooperation, training and skills improvement, innovation and technologies, common marketing, international development, and partnerships with other clusters. Objectives of cluster development include the enhancing of competitiveness by increasing the value creation efficiency, developing products with higher value added, and joining international RDI networks.