Experts estimate that these changes could open up new opportunities for Lithuanian regions, particularly for territories that already possess a strong industrial and investment ecosystem. Capitalizing on this opportunity will require not only business investments but also active cooperation between the state, local municipalities, and regions.

These trends were discussed during a debate held at the Klaipėda Free Economic Zone (FEZ). Vice-Minister of Economy and Innovation Paulius Petrauskas, who attended the event, emphasized the importance of Lithuania’s readiness for new industrial development opportunities, which were presented to businesses by Tomas Garuolis, Head of the Industry Policy Division at the Ministry of Economy and Innovation. Representatives from local businesses and the Klaipėda Municipality also joined the discussion.

“Lithuania has a real opportunity to showcase its strengths during the upcoming Lithuanian Presidency of the Council of the European Union. However, we must start preparing now by strengthening ecosystems, ensuring a proper legal environment, and fully exploiting the potential of Lithuanian industry. Through targeted efforts, we can achieve a breakthrough and build a stronger foundation for long-term economic growth,” says Vice-Minister of Economy and Innovation Paulius Petrauskas.

Europe changes course

According to T. Garuolis, Europe currently faces a serious challenge: over the past decades, a significant portion of manufacturing was relocated to third countries, primarily China and other Asian regions.

“Europe is losing part of its capacity in manufacturing, chemicals, metals, and other industrial sectors. This is no longer just an economic issue – it is becoming a strategic question of European competitiveness and security,” says T. Garuolis.

According to him, the European Commission is already drafting a legislative package aimed at creating the right conditions for manufacturing to return to Europe. Most of these initiatives are expected to be adopted in 2027. It is emphasized that a portion of future funding will be directed toward purchasing products made in Europe. Therefore, states and regions must prepare in advance.

“For Lithuania, this opens up opportunities to become one of the locations where this manufacturing could establish itself and expand,” states the ministry representative.

A new role for regions and FEZs

According to the ministry representative, European industrial policy is increasingly focusing on decarbonized, sustainable manufacturing and advanced technologies. This is precisely why free economic zones can become some of the most critical arenas for this transformation.

“We are talking about industrial and green industrial zones, where product demand will be further stimulated within the European Union in the future. The Klaipėda FEZ is already advanced in this area, but it is worth emphasizing that this is an opportunity for the whole of Lithuania,” says T. Garuolis.

According to him, the state’s task today is to help businesses identify the directions that align with the European industrial strategy and where the highest value-added will be created in the future.

Eimantas Kiudulas, CEO of the Klaipėda FEZ, also emphasized the role of free zones in bringing back traditional industry and attracting next-generation manufacturing. According to him, businesses are increasingly looking not just for infrastructure or vacant plots, but for functional ecosystems – companies already specializing in a certain field, talent, and academic communities.

“We already have multiple examples where new investors chose the Klaipėda FEZ because of the long-standing companies already operating here, potential partners, and the specific specializations of the local labor market and educational institutions. I am glad that Europe understands the strategic importance of manufacturing, and Lithuania’s obvious track record in advanced and sustainable industries provides a strong foundation to expect that we will definitely seize these new opportunities,” says E. Kiudulas.

Investment begins with cooperation

According to I. Butenienė, Head of the Strategic Planning Division of Klaipėda Municipality, closer cooperation between state institutions, municipalities, and businesses is one of the most critical factors in seizing these emerging opportunities.

“Wherever industry and investment arrive, jobs and residents follow, the economy grows, and smaller businesses develop. This is the foundational basis for regional growth,” says I. Butenienė.

According to her, regions still lack information regarding the state’s investment attraction policy and ways to get more actively involved in its implementation.

“We would like to see closer cooperation between institutions. The better the regions understand national priorities and future directions, the better they can prepare for new opportunities,” states the municipality representative.

The fight for investment is a fight for people

I. Butenienė points out that attracting investment is important for regions not only in an economic sense.

“Regions today are competing for people. To retain young specialists and families, it is essential to create jobs, attract investors, and ensure a high-quality living environment,” she says.

According to the speaker, the role of municipalities in this area is very concrete – ranging from engineering infrastructure to public transport, educational institutions, and other solutions that allow businesses to set up and expand.

“When an investor arrives in a region, they create jobs, attract residents, and stimulate the growth of other businesses. This is how the entire municipality develops,” emphasizes I. Butenienė.

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Klaipėda FEZ has secured financing for a EUR 3.15 million solar project with an installed capacity of 4.9 MW, which will be implemented in two stages.

The first stage of the plant, with a capacity of 1.65 MW, is currently being completed. Its grid connection, testing and documentation work are expected to be finished this autumn.

The plant will essentially operate as a remote solar park, with Klaipėda FEZ investors having priority to purchase or lease part of its capacity. Since the permits for the first stage were issued under previous regulations, this park will be able to operate under the so-called “net metering” system of electricity accounting – attractive to some customers – until 2030.

The FEZ management company has also received a construction permit for the second stage of the plant, which will have a capacity of 3.25 MW. This infrastructure will not be connected to the distribution grid, so the electricity produced will be used only by factories operating within the FEZ that link the power to their local networks. Klaipėda FEZ is currently in talks with investors about such a need and will begin construction once agreements are in place.

According to Klaipėda FEZ CEO Eimantas Kiudulas, the project will enhance the area’s attractiveness to both existing and potential investors.

“Solar energy is source of real value and a competitive advantage. Beyond reducing our environmental footprint, with this project we aim to support factors important to our investors: stable energy supply, lower costs and more predictable electricity prices,” comments E. Kiudulas.

He adds that the FEZ management company is also considering building a battery park next to the new plant, which would operate in tandem and provide even more flexibility for investors. In the future, as demand grows, Klaipėda FEZ will be able to expand the plant itself.

“Currently, ILTE offers favourable financing terms for projects involving the installation or acquisition of solar, wind, or hybrid power plants. Our goal is to enable companies to secure stable electricity prices over the long term, which is crucial for forecasting business costs. Equally important is the fact that this energy will be produced through environmentally sustainable methods, contributing to the strengthening of Lithuania’s energy independence.

There are still available funds under the financing instrument ‘RES Loans for Legal Entities’, so I encourage you to review the terms and apply for financing,” – says Giedre Geciauskiene, Head of Client and Financing Solutions Department.

According to rough estimates, companies operating in Klaipėda FEZ have already installed at least 10 MW of their own solar generation capacity on building rooftops and even fences, with additional megawatts planned or already under construction. However, not all companies have the physical or technical capacity to develop new or expand existing solar infrastructure, so the FEZ management company’s plant should help address this challenge.

The Klaipėda FEZ solar park is partially financed by EU RRF funds under the ILTE measure ‘AEI paskolos juridiniams asmenims’ (‘RES Loans for Legal Entities’).

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The new FlexStart building, with a total area of 8,800 sqm, is being developed on a 1.7 ha site. Binkauskas ir Stašinskas (Komandos dvasia) is serving as the general contractor for the construction. This building will complement the FlexStart family, which Klaipėda FEZ has been developing since 2017. The first two buildings quickly attracted tenants, proved successful for investors and the FEZ itself, and even won international awards.

The new FlexStart building will stand out with even higher-quality, more urban-oriented architecture and the latest engineering and infrastructure solutions. The project, designed by the WALL architecture studio, includes greener spaces, more natural daylight, recreational areas, and smart heating and cooling systems, including the reuse of heat generated during production.

According to Klaipėda FEZ CEO Eimantas Kiudulas, the FlexStart buildings have proven their value both during market booms and quieter periods. This solution allows new investors to start operations very quickly – sometimes within just a few weeks of signing the contract. On the other hand, during slower market times, some existing FEZ investors have successfully used FlexStart premises to expand or optimize their operations and own facilities.

“We are pleased that what once seemed like a bold decision to invest in infrastructure before securing tenants is now a fully supported part of Lithuania’s investment attractiveness strategy. We already see interest in the new building, likely due to the success of the first two members of the FlexStart family. We hope to announce specific news soon. Although we are officially starting the third phase of FlexStart, we are already actively planning the fourth addition to this suite,” said E. Kiudulas.

According to Mantas Červinskis, construction director at the project’s general contractor Binkauskas ir Stašinskas, the FlexStart 03 project will further strengthen the company’s portfolio in the Klaipėda.

“We are grateful for the trust Klaipėda FEZ has placed in us and are confidently moving forward with another project in Klaipėda. “Team Spirit” is the partnership principle that guides us in fulfilling our commitments and achieving goals,” said M. Červinskis.

The investment in the building amounts to approximately 8.5 million EUR, of which 5.12 million EUR is provided by an ILTE (formerly INVEGA) loan under the incentive measure “Construction of typical production buildings in free economic zones, industrial parks, and other industrial areas.”

“FlexStart 3 is not the first project in Klaipėda FEZ that we have financed under the measure for the construction of typical production buildings. The FlexStart 2 project, which we also financed, has already attracted the attention of investors. We are confident that the new project will enhance not only Klaipėda’s but also Lithuania’s investment appeal,” said Rūta Mikalauskienė, head of the public sector financing department at ILTE.

The first two FlexStart buildings are already home to investors such as Werner Wirth Baltic, Etman, Glob-El, Pod Furniture, Memel Biotech, Albright, Retal Baltic Films and others. In 2017, the first FlexStart building received the first-ever award from fDi Intelligence for quick investor launch.

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Construction itself is scheduled to commence in the near future, with completion expected in the first half of 2025. Approximately EUR 8.5 million will be invested in the building, of which EUR 5.12 million constitutes a loan from INVEGA.

The total area of the building complex will be around 8.8 thousand square meters, developed on a 1.7 hectare site.

FlexStart 03 will distinguish itself from its predecessors with greener spaces, more natural daylight and recreational areas. Additionally, in line with Klaipėda FEZ’s aim to promote the local economy, many of the building’s structural solutions will be sourced from local manufacturers.

The new facility will meet A++ energy efficiency standards, featuring smart heating and cooling systems utilizing heat generated during the production process. Furthermore, solar panels will be installed to fulfill part of the energy requirements, and both indoor and outdoor areas will be equipped with LED lighting and electric vehicle charging stations. The architectural design of the new FlexStart project was developed by the WALL architecture studio.

Darius Urbonas, Head of Real Estate Development Projects at Klaipėda FEZ, states that the third FlexStart building will become the most modern continuation of a successful strategy for rapid investor establishment and expansion. In the coming period, the FEZ management company intends to initiate negotiations with potential tenants from Lithuania and abroad.

“Swift investor establishment and expansion are relevant at all times. During prosperous market conditions, companies seek to commence production quickly to secure stronger initial positions or swiftly enter attractive sectors. However, speed and flexibility prove beneficial even in cooler economic climates: the first two FlexStart buildings have been utilized for existing investor expansion, temporary or permanent relocation of production lines, and various other scenarios. Both the FlexStart building family and other processes or decisions made by our team have long been associating Klaipėda FEZ with extraordinary speed and flexibility throughout the region,” affirms D. Urbonas.

Asta Gladkauskienė, Head of the Customer Service Department at INVEGA, previously noted that typical production purpose buildings are favorable for production expansion, as investors or manufacturers can establish themselves in an already constructed building and commence operations in a very short time.

“The existing Flex Start Two building, standing and operational within Klaipėda FEZ, was the first building financed by INVEGA’s managed funds, for which INVEGA provided a loan at the end of 2022, and which is currently fully leased to investors. This clearly demonstrates the need, benefits and importance of such buildings, not only in attracting investors who receive fully prepared building infrastructure but also in creating new job opportunities. We are pleased to finance the new Flex Start Three building which will further alleviate the shortage of such buildings in the market and undoubtedly attract new investors, directly contributing to the growth of the Lithuanian economy,” comments A. Gladkauskienė.

For some time now, the first two FlexStart buildings have been home to investors such as Werner Wirth Baltic, Etman, Glob-El, Pod Furniture, Memel Biotech, Albright, Retal Baltic Films and others. In 2017, the first FlexStart won the first-ever Quick Launch award from FDI Intelligence.

Klaipėda FEZ received construction permit for the third FlexStart iteration

Flex Start Three, a real estate development company established by the Klaipėda FEZ, has received a construction permit for a 8.8 thousand square meter area production building, divided into six segments, designed for rapid adaptation to the needs of tenants. This marks the third building in the internationally acclaimed FlexStart family, facilitating businesses to launch production within weeks or months.

Construction itself is scheduled to commence in the near future, with completion expected in the first half of 2025. Approximately EUR 8.5 million will be invested in the building, of which EUR 5.12 million constitutes a loan from INVEGA.

The total area of the building complex will be around 8.8 thousand square meters, developed on a 1.7 hectare site.

FlexStart 03 will distinguish itself from its predecessors with greener spaces, more natural daylight and recreational areas. Additionally, in line with Klaipėda FEZ’s aim to promote the local economy, many of the building’s structural solutions will be sourced from local manufacturers.

The new facility will meet A++ energy efficiency standards, featuring smart heating and cooling systems utilizing heat generated during the production process. Furthermore, solar panels will be installed to fulfill part of the energy requirements, and both indoor and outdoor areas will be equipped with LED lighting and electric vehicle charging stations. The architectural design of the new FlexStart project was developed by the WALL architecture studio.

Darius Urbonas, Head of Real Estate Development Projects at Klaipėda FEZ, states that the third FlexStart building will become the most modern continuation of a successful strategy for rapid investor establishment and expansion. In the coming period, the FEZ management company intends to initiate negotiations with potential tenants from Lithuania and abroad.

“Swift investor establishment and expansion are relevant at all times. During prosperous market conditions, companies seek to commence production quickly to secure stronger initial positions or swiftly enter attractive sectors. However, speed and flexibility prove beneficial even in cooler economic climates: the first two FlexStart buildings have been utilized for existing investor expansion, temporary or permanent relocation of production lines, and various other scenarios. Both the FlexStart building family and other processes or decisions made by our team have long been associating Klaipėda FEZ with extraordinary speed and flexibility throughout the region,” affirms D. Urbonas.

Asta Gladkauskienė, Head of the Customer Service Department at INVEGA, previously noted that typical production purpose buildings are favorable for production expansion, as investors or manufacturers can establish themselves in an already constructed building and commence operations in a very short time.

“The existing Flex Start Two building, standing and operational within Klaipėda FEZ, was the first building financed by INVEGA’s managed funds, for which INVEGA provided a loan at the end of 2022, and which is currently fully leased to investors. This clearly demonstrates the need, benefits and importance of such buildings, not only in attracting investors who receive fully prepared building infrastructure but also in creating new job opportunities. We are pleased to finance the new Flex Start Three building which will further alleviate the shortage of such buildings in the market and undoubtedly attract new investors, directly contributing to the growth of the Lithuanian economy,” comments A. Gladkauskienė.

For some time now, the first two FlexStart buildings have been home to investors such as Werner Wirth Baltic, Etman, Glob-El, Pod Furniture, Memel Biotech, Albright, Retal Baltic Films and others. In 2017, the first FlexStart won the first-ever Quick Launch award from FDI Intelligence.

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According to the Admiral team, transport and logistics companies have so far been mainly concerned about their own pollution and energy consumption, but for this reason, less attention has been paid to the indirect environmental impact of the logistics sector. This is precisely the problem that the Admiral initiative will address by developing and promoting sustainable, multimodal, data-driven logistics solutions.

Admiral will focus on a next-generation marketplace platform to manage all supply chains and monitor the environmental impact of each link. The platform will aim to make multimodal logistics chains run more smoothly, make better use of existing capabilities and infrastructure, promote sustainable sourcing and other innovations. At the same time, the Admiral platform will aim to become an innovation hub for software developers who could create and teest new services. Admiral is expected to deliver not only a 20% reduction in the environmental impact of the logistics sector, but also to bring more transparency and resilience to the market.

The Admiral project members in Lithuania will be primarily responsible for generating digital documents and signatures between the different members of the logistics network. The Lithuanian part of the Admiral consortium will also take care of data integration and information dissemination in the logistics sector, and will develop solutions for the automatic calculation and distribution of CO2 footprints.

According to Darius Butvydas, Klaipėda FEZ Client Project Manager, although the transport and logistics sector is digitising, innovation in this business is rather slow and fragmented, the tools used by companies usually do not communicate with each other well, and there is almost no CO2 emissions calculation. The Admiral platform will seek to address all this.

“Klaipėda FEZ is participating in the project as a transport hub, i.e. we will provide our partners with our existing infrastructure (transport monitoring devices, 5G internet, etc.), while the other partner in the project, the logistics company CargoGO, will be testing digital tools in real time. Our data will be used to evaluate the improvements achieved. The pilot project is planned to be up and running within 36 months,” comments Butvydas.

The real outcome of the Admiral project, he says, will be a Europe-wide service ordering platform focused on transport and logistics efficiency and the calculation, assessment and mitigation of environmental impacts. The project will not only provide the ability to measure and understand the CO2 footprint across the entire service chain, but also to actually reduce it.

Admiral’s other project partner in Lithuania, UAB cargoGO Logistics, will provide the project with data and expertise, test solutions, optimise routes, improve driving styles and digitise processes. According to the company’s IT project manager, Lauras Pranckevičius, cargoGO is already testing a separate CO2 emissions calculation and reporting tools, which will enable it to offer customers the least polluting routes and services.

“We could offer customers the most sustainable, environmentally friendly route, with significantly lower CO2 emissions, contributing to a more sustainable future. The project would provide the logistics sector with a system that saves costs, avoids downtime and empty kilometres, and provides a sustainable service. The Admiral project as a whole will contribute to the interoperability of the different logistics chains, thus improving the communication between customer and carrier, to measure and calculate CO2 emissions, and to develop the organisations’ approach to sustainability,” comments Pranckevičius.

A total of 21 organisations from 9 EU countries are participating in the Admiral project. In addition to the Klaipėda FEZ Management Company, the Lithuanian Transport Innovation Association, UAB Cargo Sign, UAB Normalis Tech, CargoGO Group and UAB Trevio have joined the project in Lithuania. The project also includes representatives from business, academia and the public sector from Germany, Portugal, Spain, Italy, Greece, Croatia, Slovenia and Finland. Admiral is funded by the European Union.
For more information on the Admiral project, visit the European Commission’s website and follow its progress on Linkedin.

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The repair works are carried out within the framework of the project “Development of Klaipėda FEZ infrastructure to attract foreign direct investment in smart specialisation areas” (project No 01.2.1-LVPA-V-830-03-0008) implemented by Klaipėda FEZ Management Company which is partly financed by the European Union Structural Funds and the Republic of Lithuania and for which a financing agreement has been signed in September 2022.

The project will involve the major reconstruction of approximately 1 km of Pramonės street between its beginning in the northern part of the FEZ and the intersection with Lypkių street. 

The works will include the installation of an earthen embankment, reconstruction of the carriageway, upgrading of footpaths, pavements and exits, as well as the rainwater network, lighting and traffic lights.

The value of the contract is EUR 1.659 million including VAT.

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The project was implemented with the main objective of attracting foreign capital R&D&I companies to the Klaipėda FEZ’s territory by creating infrastructure for attracting such companies, as well as developing and implementing a marketing concept.

The following construction works were carried out during the project:

• Construction of pedestrian and bicycle paths and open car storage areas along Pramonės and Verslo streets. Value of construction works – EUR 1,134,709.25, contractor – UAB VVAFF;
• Reconstruction of the existing ditch S-2-4 (Žydrė stream bed) and water supply network in Kretainio street. Value of construction works – EUR 57,729.23, contractor – UAB Terebro.
• Stage II of Verslo and Metalo streets with engineering networks. Value of construction works – EUR 2,038,395.62, contractor – UAB Kavesta.
• Reconstruction of the SMART infrastructure installation and street lighting networks located in the territory of Klaipėda FEZ. Value of construction works – EUR 494,886.00, contractor – UAB Telekonta.

The following product monitoring indicators have already been achieved during the project implementation period:

• Private investment corresponding to public support for innovation or R&D projects – EUR 179,136.35;
• The total area of public territories that have received investments – 31.01 ha;
• Industrial parks and/or FEZs with invested infrastructure – 1;
• Implemented marketing measures for industrial parks and/or FEZs aimed at attracting investors for R&D activities – 2.

Within five years after project implementation, three foreign companies will have to be attracted to the R&D&I field under the smart specialisation direction.

The project was financed under measure No 01.2.1-LVPA-V-830 “Smartparkas LT” of Priority 1, “Promotion of Research, Experimental Development and Innovation,” of the Operational Programme for Investment of European Union Funds 2014-2020. The project’s total eligible costs amounted to EUR 4,470,351.61, of which EUR 4,450,071.51 was allocated from European Union Structural Funds, while the project promoter’s funds amounted to EUR 20,280.10.

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Taking into account the economic trends, in the future, Klaipėda FEZ plans to focus on higher value-added companies, which will carry out innovative activities.

After evaluation of objective technical, economic and social conditions of the region, objective Klaipėda FEZ opportunities, priority Areas of Smart Specialisation in Research and Experimental Development (REDI), where foreign companies may be attracted, have been chosen.

More information in Lithuanian HERE.

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