Klaipėda Free Economic Zone


Klaipeda Free Economic Zone or Klaipeda FEZ 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 492ha 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, at the heart of Europe, and offers easy access to markets in the EU, Scandinavia, and former CIS countries via an extensive rail, road, AIRPORT and sea network. Klaipeda FEZ plays a key role in the regional and national economy, creating value amounting to 4-6.5% 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, Albright and others. As of AUGUST 2019, Klaipeda FEZ encompassed 104 investors from 19 countries with a total yearly revenue of 1,9bn Euros, and total exports accounting for 1.2bn 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

The first steps for the establishment of the zone were undertaken in 1996. In 1997, a management company was selected after reviewing five proposals. The Klaipeda FEZ is managed by Klaipėdos LEZ Valdymo Bendrovė, a private limited liability company. The Baltic Fund, an investment fund, financed by the Rockefeller and Company, Lazard, and investors from Saudi Arabia, owned about 60% of the management company. The remaining shares are owned by city enterprises, municipality and the government of the Lithuanian Republic. Since 2001 the Rockefeller Foundation sold their shares to Pierre J. Everaert Family Trust based in Demarest New Jersey, thereby becoming the largest private shareholder of the KFEZ
Another set of obstacles was raised during Lithuania's negotiations for accession to the European Union. Klaipeda FEZ began its activities in December 2001. In 2003, Thailand-based Indorama announced investment of 80M euros into plastic production factory. To further attract investors to FEZ, Lithuanian-based companies were allowed to participate since 2004. A year later, the FEZ began plans for expansion and further development of its land, requesting assistance from structural funds of the European Union. By the end of 2007, FEZ attracted some 600M litas of investments. By the end of 2017, the total accumulated foreign direct investment in Klaipeda FEZ accounted for 634M euros.
Currently, more than 5400 employees work at FEZ investor and supporting companies, which is 7,3% of Klaipeda's talent pool.

Location

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 Klaipeda-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

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 30+ foreign and Lithuanian companies. In total, 17 countries are represented. Since the start of their operation, these companies have invested more than 634M EUR in Klaipeda FEZ.The total investment is approx. 2bn Euros.
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.

Companies

Major companies operating within Klaipeda FEZ: