Klaipėda Free Economic Zone

File:Klaipėdos LEZ (4).JPG

Klaipėda FEZ, stones marking the area

The Klaipėda Free Economic Zone (also known as Klaipėda FEZ or KFEZ) (Template:Langx) is a designated economic area located in the Baltic region. Established in 1996 and officially launched in 2002, the zone spans 412 hectares and hosts manufacturing, logistics, and various other business activities. The zone is located in Klaipėda, Lithuania near the Baltic Sea. It has several road and rail connections to continental Europe.

History

Tax incentives

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

The establishment of the Klaipėda Free Economic Zone began in 1996 with the soliciting of proposals and the selection of a management company. The Klaipėda FEZ is managed by Klaipėda FEZ Management Company (Lithuanian: Klaipėdos LEZ Valdymo Bendrovė) which is a private limited liability company. Approximately 60% of the management company is owned by the Baltic Fund, an investment fund which is financed by foreign investors. The remaining shares are owned by city enterprises, municipalities and the Government of Lithuania. In 2001, the Rockefeller Foundation sold its shares to Pierre J. Everaert Family Trust, based in Demarest, New Jersey, which subsequently became the largest private shareholder of the KFEZ.

Additional challenges emerged during Lithuania's negotiations for accession to the European Union.Template:Explain Klaipėda FEZ began its activities in December 2001. In 2003, Thailand-based Indorama announced an investment of 80M euros into a plastic production factory. Since 2004, Lithuanian-based companies have been permitted to participate in the Klaipėda FEZ as part of efforts to attract additional investment. A year later, the KFEZ initiated plans for expansion and further land development, seeking support from European Union structural funds. By the end of 2007, KFEZ attracted around 600 million litas (€174 million) of investments. Over €783 million in investments has been attracted since 2002.

Currently, more than 5,000 employees work at the KFEZ investor and supporting companies.

Location

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

Operations within FEZ

The Klaipėda FEZ community currently connects over 5,000 employees in over 100 businesses. These businesses cover industries such as plastics & PET, food processing, offshore & large metal structures, electric vehicles & components, value-added logistics, and other industries.

It has 45 clients, including foreign and Lithuanian companies.Template:Explanation needed In total, 19 countries are represented. Total investments are approximately €825 million.

Klaipėda FEZ is designated as economic project of national significance.

Companies

Companies operating within Klaipėda FEZ include:

• Orion Global PET
• Neo Group
• Retal Baltic
• Glassbel Baltic
• Espersen
• Mestilla
• Be-Ge Baltic
• Pack Klaipėda
• Skuba Lietuva
• Klaipėda Business Park
• Albright Lietuva
• Gren Klaipėda
• Dancer Bus
• ANI Plast
• HeidelbergCement Group
• Vingės logistika
• AD REM LEZ
• Lavango Engineering LT
• Lindström
• Rehau Production LT
• Baltic Comri Technologies
• Elme Metall Klaipėda
• Werner Wirth Baltic
• Etman

Philip Morris International operates close to, but outside, the official Klaipėda FEZ territory.

Achievements

• Main Award for Digitization and Red Tape Reduction, Honourable Mention for Industry 4.0 and Positive Impact at Economic Zone Sustainable Recovery Strategies Awards 2021.
• Honourable Mention for EU Compliance, 5G connectivity at Global Free Economic Zone of the Year Awards 2021.
• Bespoke Award for Sustainability at Global Free Economic Zone of the Year Awards 2020.
• Honourable Mention for Investor Expansions, Local transport, Workforce Amenities, Flex Start at Global Free Economic Zone of the Year Awards 2019.
• Bespoke Award for Investor Expansions, Investor Incentives, Economic Impact and Flexible Space at Global Free Economic Zone of the Year Awards 2018.
• In 2017, Klaipėda FEZ was recognised within the categories of “Quick Launch award” (Editor’s choice), Expansion, Energy Efficiency, Specialism (for Plastics industry), and Contribution to the National economy. Investors seeking to establish operations in Lithuania’s Klaipėda FEZ can use the zone’s Fast Factory Launch scheme. The scheme provides companies with pre-approved, ready-to-use sites that include the necessary construction permits. In contrast, obtaining construction permits elsewhere in Lithuania can take up to six months. Additionally, the Flexstart programme is designed to enable investors to commence operations in less than one month by providing pre-built manufacturing facilities. New offices are currently under construction that will be offered to SMEs as part of the programme.