The official opening ceremony was attended by global and local executives from the company, representatives of the city of Klaipėda, the Klaipėda FEZ, Invest Lithuania, project partners and employees.

HAWE Lithuania’s CEO Maximilian Röring emphasized that the new Klaipėda facility is part of the company’s long-term development and is expected to strengthen HAWE’s international manufacturing network. According to him, Lithuania was chosen for the investment because of its skilled workforce, favorable business environment and close links to European markets.

“Today is an important day for HAWE. We are not only opening a new plant – we are celebrating the beginning of a new chapter for our company and an investment in the future. But what impresses me most is not the building itself or its square meters, but the people who made all this happen,” said Röring.

The new HAWE facility occupies approximately 5,000 square meters of production space and almost 500 square meters of office space. One of the plant’s key tasks is to assemble hydraulic systems for the wind energy industry.

According to Röring, the Lithuanian team played a particularly important role in establishing the new facility. At the initial stage, just eight employees had to acquire the necessary skills, prepare for production and meet the quality requirements set by customers within a short period of time.

Bringing more than capital and technology

According to Eimantas Kiudulas, CEO of the Klaipėda FEZ, HAWE’s arrival is important not only because of the new production capacity and jobs it creates.

“When we planned our third FlexStart building, we deliberately decided to raise the quality bar – to invest more and create space tailored to clients with high requirements. Today, we are very happy with that decision because we welcomed HAWE – a company that brings not only capital and technology to Klaipėda, but also new values,” said Kiudulas.

HAWE joins the international business community of the Klaipėda FEZ, which is home to more than 100 companies with investors from 17 countries and more than 5,000 people working across the zone. Having successfully filled its third FlexStart building, Klaipėda FEZ has already started construction of FlexStart 04, a production and administrative facility designed to be adapted exceptionally quickly to investors’ needs.

The city sees long-term value

Klaipėda Vice Mayor Algirdas Kamarauskas emphasized that every new international investment is a sign of confidence in the city, while the HAWE project is also important because of its links to renewable energy.

“Every new investment, every new plant and every new job shows that Klaipėda is a city that people trust and where they see prospects for the future. It is particularly encouraging that the production being developed here is connected to one of the key industries of the future – renewable energy,” said A. Kamarauskas.

Elijus Čivilis, CEO of Invest Lithuania, linked HAWE’s arrival to the broader prospects for industrial cooperation between Klaipėda and Germany.

“This is a major event not only for the company, but also for Klaipėda. Many years ago, people in Munich came together and the idea for this company was born. Today, Munich is symbolically meeting Klaipėda. I believe this meeting can lead to many more positive developments,” said E. Čivilis.

HAWE sees its Klaipėda facility as a long-term investment in its global manufacturing network, strengthening competitiveness and customer proximity in Europe.

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Since last year, German-routed HAWE Hydraulik has occupied more than half of the production and administrative building FlexStart 03 developed by the Klaipėda FEZ management company. The family-owned company has been operating for more than 75 years and has almost 3,000 employees in 24 countries. It develops and manufactures hydraulic components and system solutions used by businesses in medical, agriculture, logistics, infrastructure, renewable energy and many other sectors.

Maximilian Röring, Managing Director of UAB HAWE Lithuania, says that the Klaipėda site focuses on assembly and testing of hydraulic systems for the wind energy industry. These products ensure safe and reliable operation of a wind turbine: Some systems adjust the rotor blades angle to the wind, some stop and secure the turbines when required, while others lubricate critical components, protecting them from wear and maximizing performance.

“We have already established a strong local team, covering assembly, quality, logistics, purchasing, production planning, process engineering and administration. Building on this foundation, we will continue to grow a highly capable manufacturing organization that contributes to the company’s long-term success.. Guided by the principle ‘Think globally, act locally’, our employees in Klaipėda are already taking ownership and help shaping a more sustainable future around the world,” says M. Röring.

”Our experience has been very positive”

The head of HAWE’s Klaipėda site reveals that the company started looking for a location for its new plant in 2023.

The port city competed with several locations that were examined in depth and was ultimately selected because of its “particularly convincing overall package”: strong logistics infrastructure across all modes of transport, technically qualified and motivated specialists in a region with a strong industrial tradition, support from the Klaipėda FEZ and Invest Lithuania before and during the establishment process, the possibility to adapt the FlexStart building to the company’s needs and partnerships with companies already operating in the free economic zone.

The manager was particularly impressed by the fact that only five months passed from the establishment of the company to the assembly of the first product in Klaipėda.

“Overall, we felt that Lithuania has a genuine interest in developing advanced manufacturing and renewable energy industries. This was an important factor that strengthened our confidence. Our experience so far has been very positive – we particularly value the pragmatic and flexible approach of the FEZ, the fast setup, the motivation of local talent to learn and their willingness to take responsibility. We have also been impressed by the digitalization of many administrative processes in Lithuania, cooperation with authorities and institutions, and the local business ecosystem. Of course, certain regulatory and administrative requirements can initially be challenging for a foreign investor, and simplifying these areas would help make Lithuania even more attractive to other investors,” says M. Röring.

HAWE’s growth plans

HAWE’s Klaipėda site currently employs 18 colleagues,  in line with the company’s initial ramp-up plans. “We plan to grow our team to around 40 colleagues over the coming years, with a particular focus on expanding our assembly and logistics teams. I believe we stand out in the market because of a combination of experience and stability of an international industrial group with the entrepreneurial spirit of a start-up. Every colleague has the opportunity to actively shape and improve processes across production, logistics, purchasing and administration from day one,” says M. Röring.

With an average age of 37, HAWE Lithuania has built a young and experienced team that combines fresh perspectives with professional expertise. The company supports its employees through continuous development and feedback programs, internal career opportunities, five additional vacation days and an additional accident and health insurance. Information about career opportunities at the company is available here.

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More than 60% of new investments in Klaipėda FEZ last year were made by Lithuanian businesses. By comparison, five years ago Lithuanian companies accounted for only around one-fifth of new investments.

In terms of purchases from Lithuanian suppliers, Lithuanian-owned businesses accounted for 55% of the total €431 million procured by Klaipėda FEZ investors last year. This share has remained relatively stable throughout the decade, although a significant portion of it is consistently driven by one particularly large buyer of agricultural products.

In terms of personal income tax and social security contributions paid, Lithuanian businesses have consistently accounted for around one-third of the total Klaipėda FEZ figure in recent years, which reached €26.8 million last year.

On the other hand, the combined turnover of Lithuanian-owned companies in Klaipėda FEZ accounted for only around one-fifth of the total €1.19 billion generated last year. However, the majority of the overall figure is consistently driven by two particularly large plastics manufacturers.

Foreign-owned companies also remain the largest employers in Klaipėda FEZ, accounting for around 70% of all employees in the zone last year, although this share has declined somewhat over the past five years. In total, Klaipėda FEZ is home to investors from 17 countries around the world.

The figures above would be even more favourable to Lithuanian investors if joint ventures between Lithuanian and foreign investors were included in the Lithuanian-owned category. Some companies originally established with foreign capital but operating independently for more than a decade could also, at least informally, be considered partly Lithuanian.

“Looking objectively, Lithuanian capital investments are currently the most promising opportunity for us and for other free economic zones in Lithuania. Accordingly, for several years now we have been paying more attention to Lithuanian investors than we did in the past. We certainly have not forgotten about foreign investors – they continue to come and expand as well – but the geopolitical situation, rising costs and the growing maturity of Lithuanian businesses are increasingly making a difference,” says Eimantas Kiudulas, CEO of Klaipėda FEZ.

According to him, although the statistics can be distorted by one-off factors from year to year, and investment decisions and major manufacturing projects tend to have a certain degree of inertia, the broader trend of growing importance of Lithuanian investors is becoming increasingly clear, particularly since 2022. The picture is even more pronounced when looking at Klaipėda FEZ’s statistics on qualified enquiries and leads: last year, Lithuanian businesses accounted for around 40% of potential new investors.

“This trend is expected even without the geopolitical factors. Over the past decade, Lithuanian businesses have genuinely matured, grown, expanded and modernised. They are becoming increasingly confident about investing both in their home market and abroad. Their growing weight and scale have become particularly relevant in recent years, when Lithuanians have shown significantly greater confidence in Lithuania than foreign investors have,” says Eimantas Kiudulas.

He points out that Klaipėda FEZ has always been developed as a territory that is “neutral in terms of the investor’s country of origin”. In other words, foreign and Lithuanian investors meeting the relevant criteria have always been and continue to be eligible for the same corporate and real estate tax incentives. Subject to certain conditions and commitments, larger investors can also qualify for special municipal or national-level programmes, regardless of where their capital originates.

“Undeniably, foreign capital will remain highly important for a long time because of the expertise, technologies and diversity of products it brings. There are sectors and activities that Lithuania has never had, and when they emerge here, they can lay the foundations for new knowledge and high-value ecosystems. Neither we nor Lithuania can turn away from attracting foreign direct investment. However, we have to acknowledge a fact today: Lithuanian investors are more active, so we need to help them grow faster,” says the CEO of Klaipėda FEZ.

Why they chose Lithuania

For the newest Lithuanian investors to establish operations in Klaipėda FEZ, many of which export the majority of their production abroad, the home market remains attractive primarily because it offers “everything a business needs”.

Aromatic 89, a fragrance development and manufacturing company operating from a Klaipėda FEZ FlexStart building, was founded and grew in Klaipėda. Its founder and CEO Arnoldas Bružas says that even though exports now account for more than 50% of the company’s output, moving production closer to the end customer would not necessarily make business sense.

“However, we have no plans to move production to another country simply because our exports are growing. Today Lithuania has everything we need: a team, established processes and the ability to be close to production ourselves whenever improvements or changes need to be made. We are constantly developing new products and improving existing ones, so it is important for us to have product development and manufacturing located next to each other. Otherwise, decisions that we can make within a day or a few days today would take considerably longer,” says A. Bružas.

According to him, Lithuania is also convenient because of its geographical location and good access to the company’s key markets in the Baltics and Scandinavia, as well as Poland and Germany.

“At the moment, we do not see establishing a factory in one of our main export markets as providing a sufficiently significant advantage. In some markets, producing closer to the end customer could theoretically be beneficial from a logistics perspective, but the logistical or cost advantage alone does not currently outweigh what we have by manufacturing in Lithuania.

“We chose Klaipėda FEZ because we found what our growing manufacturing business needed most at the time: modern, production-ready premises, the ability to bring manufacturing, warehousing and logistics together in one location, and space for further expansion. It was also important that we did not have to build our own factory from scratch. This allowed us to implement the expansion much faster and start operations in the new premises,” says the head of Aromatic 89.

He also notes that the Klaipėda-based company wanted to remain in Klaipėda, meaning that other Lithuanian cities were considered only in theory. In Klaipėda FEZ, Aromatic 89 found infrastructure that meets not only its current needs but also those of its future growth.

Another company exporting the majority of its production from Klaipėda FEZ is Kovo ARMOR, a ballistic protection equipment manufacturer that established its operations here only last year. CEO Agnė Rakštytė says that, among other considerations, the decision to establish the business in Lithuania was driven by the opportunity to contribute to the development of the country’s defence ecosystem.

“Essentially, our business fills a gap in the region. There is currently no local manufacturing of these products, while regional supply is important for ensuring the security of supply chains. We chose Klaipėda FEZ because of the suitable premises that were already built and equipped, as well as tax and other considerations,” says A. Rakštytė.

Foreign investors remain active

New foreign investors continue to make their mark in Klaipėda FEZ as well. Last year, German manufacturer HAWE Hydraulik, specialising in mechatronics and hydraulic products and systems, started operations in FlexStart 03, a building developed by the Klaipėda FEZ management company.

Portuguese IMG Group company Evertis is also continuing its investment programme, planning to build a €30 million sustainable PET film manufacturing facility in Klaipėda FEZ.

Among the most significant new Lithuanian investors in Klaipėda FEZ over the past year are Kautra, which is developing infrastructure for its Klaipėda electric bus fleet, automotive parts retailer Autoaibė, fragrance manufacturer Aromatic 89, and the Klaipėdos duona group, which is planning a new manufacturing facility.

Regardless of the country of origin of investors’ capital, the Klaipėda FEZ area is also considered strategically important by the city municipality. This year alone, the municipality is implementing around €3.2 million worth of infrastructure projects in the zone, including the development of streets, roads and electricity networks.

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Having fully leased the first three FlexStart buildings to international and Lithuanian investors, Klaipėda FEZ is taking the next step in developing the concept. At 33 Pramonės street, next to the first three FlexStart buildings, construction has begun on FlexStart 04, a project divided into four independent blocks that can be connected if required.

Designed by WALL architectural studio (architects Donatas Laucius and Vilmantas Bavarskis), the building will feature four independent manufacturing blocks, each comprising 2000 sqm of manufacturing space and 300 sqm of administrative space.

The spaces within each manufacturing block are designed as an integrated whole with the respective administrative areas and mezzanines, which are connected into a single functional structure. This will ensure a seamless relationship between manufacturing and administrative processes. 

The architectural focal point of the industrial building will be its prominent glazed façades with vertical fins and contrasting finishes. Green areas and employee recreation spaces will surround the building, while convenient bicycle and car parking facilities and EV charging points will also be provided.

According to the architects, the project will become the fourth manufacturing building in a systematically and consistently developed streetscape. Its architectural expression has therefore been deliberately aligned with the existing urban structure, maintaining a continuous rhythm of industrial volumes and a clear functional logic within the composition of this section of the street.

According to Darius Urbonas, FlexStart Project Manager at Klaipėda FEZ, there is demand in the market for new modern premises both from existing FEZ investors looking to expand and from potential new Lithuanian and international clients.

“The market is not easy and decisions are being made more slowly. However, our experience shows that it is possible to attract clients by offering a high-quality, flexible manufacturing product that is ready for a fast start. This is precisely the essence of the FlexStart model: giving companies the opportunity to start operations significantly faster than if they were developing a factory from scratch themselves. The FlexStart 04 concept is designed so that, after signing an agreement, a tenant can be ready to start operations in approximately one to two months,” says Darius Urbonas.

The first three FlexStart buildings are home to Lithuanian and international companies from a range of sectors, including German hydraulic solutions manufacturer HAWE Hydraulik, UK-owned electromechanical components manufacturer Albright Lietuva, fragrance development and manufacturing company Aromatic 89, modular scaffolding and technical insulation solutions provider ITCC, ballistic protection equipment developer Kovo Armor, furniture company POD Furniture and packaging manufacturer Retal Baltic Films.

Eimantas Kiudulas, CEO of Klaipėda FEZ, says that the FlexStart building family could expand further in the future. For now though, the FEZ management company wants to focus more attention on transforming the wider territory, developing the Curonia campus and building high-value-added ecosystems.

“We consider this family of buildings a success story, but for some time now we have also been preparing for the future of a new-generation Klaipėda FEZ, with an even stronger focus on innovation, creator communities, developing and sharing expertise, startups and an attractive environment. This year, we introduced Curonia, a campus for offices, laboratories and manufacturing, as well as an urban vision for the transformation of part of the FEZ territory. We believe that over time, Klaipėda FEZ will increasingly be seen as a place where not only products, but ideas are born,” says Eimantas Kiudulas.

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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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Operating actively in Klaipėda FEZ since 2005 and producing biodiesel together with protein feed since 2007, Mestilla this year completed the construction of its next-generation rapeseed processing plant after a total development period of 3.5 years.

The company invested EUR 70 million into the project. Mestilla estimates that, despite a period of high inflation, the original budget was exceeded by only 15%, essentially staying under control. Developing a similar plant starting today would already cost around EUR 100 million.

The new facility will allow the company to process around half of Lithuania’s annual rapeseed harvest each year: 500,000 tonnes of seeds, or three times more than previously. Depending on seasonal crop quality, approximately 60% of the raw material processed at the plant will become valuable protein feed, while around 40% will be converted into biodiesel blended into all diesel fuel sold at filling stations and used by residents and businesses alike.

“Investments like this demonstrate that Lithuania is capable of implementing modern, high-value-added projects in strategically important sectors. This sends an important signal to investors that our country is a reliable place for long-term investment. The new infrastructure will strengthen energy resilience, increase the use of local raw materials, and contribute to a more competitive and sustainable Lithuanian economy,” says Minister of Economy and Innovation Edvinas Grikšas.

The old plant was familiar to Klaipėda residents due to residual odours occasionally noticeable under certain conditions. However, this issue should now become a thing of the past: the old plant is being shut down, while the previous rooftop exhaust outlets are being replaced by two newly built 70-metre chimneys. After passing through both proven and newly installed neutralisation technologies, any remaining odour released at such height will practically no longer be physically detectable at ground level.

Mestilla CEO Arūnas Zubas says the project is an investment not only in modern technology, but also in a better relationship with the surrounding environment.

“I believe we have achieved an important result for the Klaipėda community. The long-standing odour issue has been resolved. Coordination of the project took only two years because the support of Klaipėda city was genuine, decisions were made constructively, within minimal timeframes, and focused on results. This is a good example of how business and the city can act as partners, and how complex projects can be implemented quickly and with high quality,” says the company’s CEO.

Klaipėda Mayor Arvydas Vaitkus states that the municipality has always supported new investments and business expansion, as these create jobs and provide a foundation for economic growth. At the same time, the city has consistently emphasised that business and community interests must always be balanced.

“I welcome the company’s decision to invest in a new plant and more modern technologies. This demonstrates a willingness to change and respond to community expectations. I hope these investments will ensure that the issues previously raised by residents and local authorities remain in the past, and that from now on we can speak about a new stage based on greater attention to the environment. Successful and socially responsible business should be the goal in every case. In a modern city, these things must go hand in hand,” says A. Vaitkus.

And according to Klaipėda FEZ CEO Eimantas Kiudulas, the new Mestilla investment is one of the most significant developments in the history of the territory. He also specifically highlights the importance of Lithuanian capital investments during uncertain times.

“The contribution of this plant to strategic goals related to energy security, sustainability, environmental protection, agriculture and added value has been discussed many times. With the opening of the new project, I would also like to highlight the company’s dialogue with the city. The old plant and the new plans were examined under a magnifying glass, but in the end compromises satisfying all sides were reached and broadly accepted. These decisions will create value for the city and the entire country for decades to come,” comments E. Kiudulas.

Between 2015 and 2024, Mestilla’s procurement spending in Lithuania – mainly rapeseed raw materials purchased from local farmers – amounted to nearly EUR 1 billion. During the same decade, the company also paid more than EUR 7.6 million in personal income tax and social security contributions.

Mestilla estimates that the new project is one of the largest investments in Lithuania’s agriculture and renewable energy sectors, creating even greater value for the economy, environment, and agricultural sector of Klaipėda and the entire country. According to the company, biofuels produced at the new plant will reduce transport-related CO2 emissions by approximately 550,000 tonnes per year.

The new plant features the most advanced oilseed processing solutions and technologies from Belgian global industry leader Desmet. The facility and its engineering systems were designed by Sweco, construction works were managed by EIKA Development, while the overall project management and timely implementation were ensured by the Mestilla project team.

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As already announced, Evertis, one of the global leaders in the PET film sector, plans to start construction of its factory in Klaipėda FEZ in the third quarter of this year and complete it a year later. The second stage is planned after five years

Evertis has established UAB Evertis Lithuania, which intends to produce sustainable PET film for the pharmaceutical sector in Klaipėda FEZ.

Now the company is presenting project proposals for the new factory at Metalo street, opposite a potential partner – the PET producer Orion Global PET (Indorama Ventures), which has been operating in the Klaipėda FEZ for several decades. The project is being developed in the eastern part of the Klaipėda FEZ, farthest from residential areas.

The studio 2L Architects has designed a production and administrative building with a total area of over 10,000 sq. m on a 2-hectare plot, as well as a parking lot, four silo towers and other auxiliary and engineering infrastructure.

The planned maximum production capacity will reach up to 48,000 tonnes per year. Production will operate continuously 24/7 across four technological lines, according to the Environmental Impact Assessment documentation.

The project will be implemented in two stages. During the first stage, two production lines will be installed, with two more during the second stage. The start of operations for the first stage of the factory is scheduled for the third quarter of 2027, while the second stage is planned no earlier than five years later.

In 2025, Klaipėda FEZ announced that it had signed an agreement with Evertis, the world’s largest supplier of multilayer PET film for the food and healthcare industries. It was later reported that the European Bank for Reconstruction and Development had granted IMG Group a €25 million loan for investments in Klaipėda FEZ.

Evertis Lithuania will manufacture sustainable PET film primarily for healthcare packaging, and will join the existing plastics and packaging cluster operating in the FEZ This includes sourcing raw materials from companies already based in the area. Evertis places a strong emphasis on sustainability, the use of recycled materials and drives innovation with the use of bio-based materials – all defined by circular economy principles and reducing its environmental footprint.

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Founded in Klaipėda in 2016, Aromatic •89• is entering a new stage of growth. The company, which exports a significant share of its production to Germany, the UK, Scandinavia and other countries, has established nearly 2,500 square meters of production and administrative space in the FlexStart 03 building developed by the Klaipėda FEZ management company.

Founder and CEO of Aromatic •89•, Arnoldas Bružas, says the business began a decade ago in his kitchen producing handmade scented candles. Within a few years though, it grew into an international brand sold in thousands of locations, covering retail, wholesale, and franchise operations. Klaipėda remains the company’s main hub for operations and creativity, while expansion in the FEZ will allow increased production and logistics capacity.

“We chose Klaipėda FEZ for its modern infrastructure, flexibility for expansion and strategically convenient location for an export0oriented business. The new premises allow more efficient organization of production and logistics processes and create favorable conditions for further growth. We will also create new jobs in production, logistics and administration, and the team is already expanding with ongoing recruitment,” says Bružas.

Until now, the company operated in other premises within the city of Klaipėda. In the new facilities in Klaipėda FEZ Aromatic •89• is consolidating its production, warehousing and logistics processes, which will enable more efficient management of growing order volumes, increased production capacity, and further strengthening of its export direction.

The company’s products are currently sold in more than 16 countries, with key markets including the Baltic states, Scandinavia, Poland, Germany and the United Kingdom. Home and car fragrances currently account for the largest share of Aromatic •89• sales, while perfumed home care and cosmetics categories are growing rapidly.

“In the coming years, we plan to further expand exports in European markets, strengthen our franchise store network, and invest in production and logistics capacity. We are actively expanding in the UK market, where we see strong potential for a Lithuanian fragrance brand. We are consistently strengthening our partner and distribution network there,” says Bružas.

Eimantas Kiudulas, CEO of Klaipėda FEZ, notes that Aromatic •89• is a strong example of high value added in traditional manufacturing, and that internationally competitive products from Klaipėda are a source of pride.

“This investment and expansion by a Klaipėda based company also demonstrates the value created by Klaipėda FEZ and our FlexStart buildings for local businesses. We offered the ability to start operations quickly and flexibility for the future. Lithuanian companies are equally welcome alongside foreign investors both in FlexStart buildings and across the entire Klaipėda FEZ territory,” says Kiudulas.

Klaipėda FEZ is currently actively preparing for the development of the fourth FlexStart building. This largest, highly adaptable facility is expected to begin construction later this year, with planned investment of around EUR 10 million.

In 2024, the company managing the Aromatic •89• brand generated revenues of EUR 4.1 million, 40 percent more than in 2023. According to preliminary data, last year revenues reached EUR 5.6 million, a further 35 percent increase compared to 2024. The company currently employs around 50 people.

Aromatic •89• has already settled in the newest, third building of the FlexStart family, where last year Germany’s hydraulic systems developer HAWE Hydraulik also began operations. Other investors already operating in FlexStart buildings include Retal Baltic Films, KOVO Armor, POD Furniture, Etman, Glob-el, Werner Wirth, Albright International and others.

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In its effort to create conditions for companies focusing on innovation, green technologies and other high-value-added activities to expand, Klaipėda FEZ had previously introduced an urban vision developed together with the studios AKETURI and MMAP.

The Curonia campus aims to transform the image and function of industrial territories by developing infrastructure and an environment more typical of cities or so-called campuses, attractive to creators of novel products and technologies. Consequently, some currently undeveloped parts of the FEZ area are planned not for traditional industry and logistics but for offices, research centres and light production, with the Curonia campus becoming the first step of this vision.

Klaipėda FEZ is now detailing the first practical steps of this vision by presenting the Curonia campus concept and the first building complex prepared together with architecture studio Š A Atelier on a site at Lypkių St. 6.

The first Curonia campus project envisions development in two stages across a 1.8 hectare site, creating more than 12,000 square metres of production, storage, administrative and community spaces suitable for technology companies. This complex could become the anchor of the entire campus, around which further development would take place in the future.

Klaipėda FEZ is currently preparing for the first stage of the building, which will provide more than 6,000 square metres of space. The new building typology will provide functional connections between administration and production areas required by high-value-added companies while maintaining flexibility to adapt to the needs of specific tenants.

After analysing similar campuses, competence centres and projects in Belgium, the Netherlands and other countries, the new building will include shared spaces designed for creative collaboration, rooftop terraces, sports facilities and bridges connecting the buildings. The project is also aligned with the urban vision presented earlier this year for part of the FEZ territory, which emphasises green public spaces and recreation. While the first Curonia building focuses on technological functionality for business, it will also provide space for ecosystem connections.

The first campus complex has been designed with phased expansion in mind. After the first stage is completed, buildings developed in the second stage would form a functionally and architecturally unified ensemble.

Investment in the first stage of the building could amount to around EUR 10 million, although the final details are still being coordinated. Klaipėda FEZ management company will serve as the general designer, and a contractor tender could be expected by the end of the year.

Klaipėda FEZ CEO Eimantas Kiudulas says the Curonia campus vision and the concept of the first building strengthen the territory’s strategy of focusing on high-value-added investors and infrastructure tailored to their needs. In the future, the new project could also serve not only as rental space but as a hub for competence development, for example, by hosting a testing or training centre for advanced industrial technologies.

“We expect to begin actual construction works on this complex already next year. The Curonia campus and its first building are not only spaces intended for innovative businesses from Lithuania and abroad. They are also the beginning of a much broader transformation of the territory aimed at making it far more attractive to companies creating high value, their employees and the entire coastal region,” says Kiudulas.

Shaping the image of Klaipėda FEZ

The first Curonia campus building also stands out because the Klaipėda FEZ management company organised an architectural concept competition for it. Five studios participated: Heima architects, Fragment, Altitudes, Nebrau and Š A Atelier.

Simas Ozolinčius, the Real Estate Development Manager at Klaipėda FEZ, says that as the territory transforms from traditional warehouses and industrial premises into hybrid innovation infrastructure, the project required strong urban and architectural direction. For this reason, the competition participants were carefully selected and each of them was personally introduced to the development vision of the Klaipėda FEZ territory.

“Through the architectural competition, we sought to create not just an industrial building but the core of a contemporary smart manufacturing ecosystem. It had to be urbanistically integrated into the Curonia campus structure while consciously contrasting with the traditional scale of Klaipėda FEZ and the typical warehouse typology. Our aim was to shape a new identity for the territory and create a human-scale environment,” says Ozolinčius.

According to him, the building is aimed at advanced companies by combining creative workspaces with easily divisible production spaces, ensuring convenient functional links between work and production zones, as well as a strong visual and physical connection with the main street of the Curonia district and the planned park. The park will act as a green community axis providing infrastructure for recreation, social interaction and sports.

High architectural quality standards were also set for the project, including contemporary expression, the use of natural and recyclable materials, and a construction system that allows phased and rational expansion. Due to the strong focus on the surrounding environment, light and heavy transport flows are clearly separated near the complex, while the area will feature community-oriented spaces attractive to employees, landscaping, sustainable rainwater management solutions and green parking areas.

“The winning proposal stood out for its restrained yet identity-forming architecture that reflects the spirit of the ecosystem being created, as well as for its clear and functional urban structure and rational spatial layout,” says Ozolinčius.

One of the authors of the building concept, architect Antanas Šarkauskas, adds that the contemporary and rational architectural expression created for this project aims to organically integrate into the emerging urban vision of the new FEZ district.

“From a typological perspective, the project subtly combines two seemingly different elements, industry and a human scale understanding of space. The key spatial idea is the perspective opening between the buildings in the centre of the site, emphasised by bridges. This solution not only ensures functional connections but also creates a clearly recognisable identity for the complex linked to the broader context of the location,” comments Šarkauskas. You can view all competition entries on the website www.curonia.eu

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Over recent decades, Klaipėda FEZ has naturally and gradually evolved from a traditional industrial territory into an ecosystem based on innovation, technology and product development.

Among the most obvious examples are large PET manufacturers that have been operating here for decades and have over time supplemented their production activities with laboratories and new product development centres. On the other hand, new advanced investors are continuously entering Klaipėda FEZ, and from the very beginning they plan not only manufacturing, but also “creative” activities that generate much higher added value.

Changing needs of investors, employees and Klaipėda residents themselves have led Klaipėda FEZ to define new guidelines for its future development. The free zone also sought to further strengthen its ambition to become a fully integrated part of Klaipėda city, offering not only jobs but also services and even opportunities for recreation.

These goals were supported by AKETURI, which created a long term urban and architectural vision for part of the undeveloped FEZ territories. This vision continues and elaborates on the earlier Klaipėda FEZ development strategy prepared by the urban planning studio MMAP, which already at that time foresaw zones for a science and innovation park, commercial activities and other functions.

New functional zones

The new vision covers two separate areas along Pramonės street and Lypkių street. These two areas are adjacent and can form a continuous green space, but each zone is assigned different functions and priorities.

The first area, closer to the city, located in the western part of Lypkių street, is intended to serve as an innovation and competence centre. Most of the space here is allocated to office buildings, research centres and laboratories, while also leaving room for modern factories.

The centre of the first area is planned to be occupied by a kind of flagship building, a more expressive structure dedicated to advanced product development, technological progress or other innovative activities, with attractive, community-oriented and open access. This core is deliberately oriented towards attracting companies in green technologies and creating an ecosystem of climate-neutral innovation. The experience of the architects shows that further development usually forms around such a focal point over time.

In addition, the innovation and competence zone will include a public square, an open active leisure area with opportunities for various sports, and a continuous, richly landscaped green corridor for pedestrians with a pond in the western part. A wellness centre or at least an outdoor micro sauna village would also be possible in this part of the FEZ.

The second new zone, along Šilutės road in the eastern part of the FEZ, has for now been dubbed the “big shopping centre”. As the name suggests, one or more large retail facilities could indeed appear here, but the area is also planned for commercial warehouses, offices, and possibly a hotel as well as conference and exhibition centres. The future highlight of this zone could become the currently barely noticeable Žydrė stream, whose surroundings would turn into the axis of a future park and green recreational corridor. Among alternative ideas for this part of the FEZ is also allocating one plot for an artificial wave sports centre.

In both zones, part of the streets are planned as calm traffic streets, meaning that motor vehicles, pedestrians and cyclists would all have equal importance. The areas are also planned to have especially rich landscaping, reflecting the latest trends in residential areas and public spaces, with their own specific guidelines. Finally, the newly planned zones allow for considerable flexibility in building functions, public spaces and small scale architectural solutions. For example, green islands or amphitheatres for seating are proposed, whose location could be easily changed.

For the new territories, AKETURI also created a so called architectural style book, a set of recommended guidelines for future buildings. These guidelines cover both public and private buildings. Public buildings are encouraged to be more expressive, while private ones are encouraged to be more flexible. All buildings are advised to have more prominent representative facades, always oriented towards public spaces. The guidelines also discuss facade possibilities, colour schemes, materials and other aspects in order to reconcile a unified territorial identity with each organisation’s desire to express its own uniqueness.

Necessary for value creation

The head of AKETURI, Lukas Rekevičius, states that in order to attract high added value to a territory, one must first attract the right people. And not only from the local suburbs, but from across Europe. Therefore, in this project architecture and urban planning were primarily designed to attract people.

“We paid great attention to greenery in the area, not superficial, but genuine and abundant landscaping, the use of water and even its expansion. The area will essentially remain industrial, but the environment can become one where people want to be and want to take care of. That is why we also proposed the idea of a sauna village. It costs little, but can create a strong effect. In general, these territories should resemble a university or science campus,” says Rekevičius.

He notes that the buildings and solutions in the vision are designed as soft rules. In other words, if a specific tenant or investor arrived with precise needs, the solutions would be adjusted primarily to those needs. However, the general principles and recommendations of the vision should still remain. The new street network structure and building zones should eventually be reflected in changes to the detailed plan of the area, but a certain degree of flexibility is still necessary nowadays.

“In projects like this, the first buildings are extremely important, those that break the ice, set the tone and inspire development around them. We would very much like to see such a building in the first innovation and competence zone. For the other part of the FEZ and for the whole city, a conference centre could create a huge impulse. I think that all Lithuanian FEZs will sooner or later no longer be able to remain purely industrial, because it is hard for us to compete with cheaper labour in third countries. Therefore, such fresh territories can become like a new generation of Gediminas’ letters, promising and truly attracting research, innovative businesses, university branches and most importantly people and families,” says the architect.

Martynas Marozas, founder of the MMAP studio, which continues to work with Klaipėda FEZ and other urban projects in the city, also emphasises that these plans are primarily intended to respond to changing needs of employees and investors.

“Today’s investor asks not only about electricity capacity, but also about how they will commute to work by bicycle. Klaipėda FEZ has been successfully fulfilling economic aspects for three decades, but looking to the future, factors such as connection with the city, biodiversity, human environment and after-work activities, sustainability, fairness and social responsibility become crucial for creating high added value. Therefore, both we and our colleagues are not changing the existing urban structure, but creating an area where new industries and the environment they need can emerge,” comments Marozas.

Thus, long time FEZ stakeholders will recognise in both MMAP and AKETURI projects the Pramonės and Lypkių streets that form the backbone of the FEZ and are here to stay. However, urban planners are trying to emphasise their axes: Pramonės Street is shaped as a logistics artery, while Lypkių Street gains a more human scale, becoming a future living green connection with the city centre.

“Such plans, even if implemented over many years, step by step and not necessarily one hundred percent precisely, create value from day one. They provide a clear vector. Society and stakeholders immediately know where the territory wants to go and how it sees its future. This creates a basis for discussion and for gathering like-minded partners. Such documents also build credibility and facilitate communication with existing and future investors. Ultimately, plans help implement complex real development gradually, making it clear what should be built where and why,” says the urban planner.

A foundation for actual development

The CEO of Klaipėda FEZ Eimantas Kiudulas comments that this urban vision is long term, but the FEZ management company is already preparing some real projects in the new territories. For example, Klaipėda FEZ is currently actively working on a concrete idea for an innovation and competence centre or even a cluster, with architectural solutions being prepared and discussions ongoing with potential clients and public sector partners.

“This vision provides part of Klaipėda FEZ with guidelines and direction for long term, consistent and resilient growth. In this document, architecture and urban planning seek to address very real business, city and even state challenges: attractiveness to employees, integration with the city, orientation towards the highest added value, strong ecosystems and so on. Although most real investments in these territories would be made by private businesses, in this vision we still commit ourselves to creating a new generation of urban and at the same time very green public spaces. Finally, this vision also becomes an impulse to look with fresh eyes at other FEZ territories and public spaces not covered in the document, and at our entire city as well,” says Kiudulas.

He emphasises that the new urban and architectural vision covers several dozen hectares of currently undeveloped Klaipėda FEZ territory, but not all plots. In other words, there will still be opportunities in the FEZ for conventional greenfield investments, designing and developing new buildings, including factories, according to the choices of specific investors, both in the renewed territories and across the entire free economic zone. The total area of the FEZ in the Klaipėda city and district municipalities is 412 hectares.

Kiudulas also hopes that a more modern, cosy and urban FEZ will further contribute to the daily comfort of the southern districts of the city. Currently, the parts of the city between the FEZ and the port still lack quality recreational spaces and services, which over time could be provided by the transformation of the free zone and by strengthening the connections between the new territories and the city.

“I have spoken many times about Klaipėda FEZ moving closer to the city, about more services in our territory, the “city within a city” principle, clean industry, sustainability and other aspects that are important to all of us. We have been gradually pursuing all of this naturally for years, but the new urban vision will become a very clear goal that we would ultimately like to reach. I see Klaipėda as the best place to live, work and do business, and in this document, a small part of such ambition is truly reflected,” says the head of the FEZ.

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