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A new company in the Klaipėda FEZ
Starting from early August, establishment works in the Klaipėda FEZ were commenced by Metalo Valdymo Projektai, a subsidiary of the Lavango Group that produces equipment for the food industry. The head of the company, Vygandas Srėbalius, said that during the first stage, i.e. the completion of establishment and moving works, an investment of approximately EUR 1.5 million had been estimated. The Lavango Group plans to complete the establishment process by the end of this year.
Lavango is the 28th company operating in the Klaipėda FEZ. “It is the second company in the Klaipėda FEZ that produces technological equipment,” said Eimantas Kiudulas, head of the Klaipėda FEZ.
As stated by the head of the company, although the company currently produces equipment for the food industry, mostly for the Lithuanian market, it plans to increase export volumes. Sweden and Norway are the primary target markets.
“We aim to achieve a 50/50 ratio for the local and export markets,” said Mr Srėbalius. Lavango provides comprehensive solutions covering the implementation and management of a wide selection of production processes. “First, we analyse the needs of an individual company and then, based on the analysis, develop a concept and design new production lines or optimise the available ones,” said Mr Srėbalius.
“We mostly work with the fish industry: we produce customised fish processing equipment. It is one of the reasons why we chose Scandinavia as our primary target export market,” said Mr Srėbalius.
According to Mr Srėbalius, up to 30 people will be employed here. The company currently employs 20 people. “Further favourable prospects of development of the company will also be ensured by the attractive tax environment of the Klaipėda FEZ,” said Mr Srėbalius. Every company that establishes in the Klaipėda FEZ is exempt from profit tax for the first six years and must pay 50% of the tax in the subsequent 10 years. Furthermore, the real estate tax does not apply.
Favourable conditions for quick establishment influences decisions
“The main reason we chose the Klaipėda FEZ is that we had been provided with favourable conditions for quick establishment: we acquired a plot of land in the Klaipėda FEZ together with a construction permit,” said Mr Srėbalius, head of the company. According to Eimantas Kiudulas, head of the Klaipėda FEZ, there are currently several other plots of land with construction permits available, which enable companies to save six months of their time.
The head of the company noted that Lavango provides its products to Vesvela – another company operating in the Klaipėda FEZ and engaged in fish processing. “For this reason, the expansion of the company’s operations here is of key importance if we consider the synergy potential. Cooperation is certainly smoother when our partners are located in the same economic zone,” said Mr Srėbalius about the mutually beneficial cooperation.
The head of the Klaipėda FEZ is convinced that the development direction of the FEZ will provide new synergy prospects thanks to the sharing of know-how in the field of technology, since most of the companies established here have included the development of technological innovations in their plans, and one third of the companies are already implementing such innovations.