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German manufacturer to launch €1.5 million production operations in Klaipeda
The German manufacturing company Baltijos Eukutecas is to become the first tenant of Klaipeda FEZ’s newly developed FlexStart facility. The wiring systems producer will invest €1.5 million in its new production operations in Klaipeda FEZ, which will employ 80 specialists this year rising to 100 in 2019. And Baltijos Eukutecas will have its operations up and running in just 3 months, thanks to the adaptability of Klaipeda FEZ’s new FlexStart facility.
Flexibility, infrastructure and strong potential for growth
Baltijos Eukutecas is a specialist manufacturer of electric wiring systems, with most of its output for the automotive sector, and in Klaipeda FEZ it found the flexibility and business environment it needed.
“We are relocating here because of the attractive business environment and the space and flexibility there is for us to grow,” explains Baltijos Eukutecas’ CEO, Ina Vaicekauskiene. Indeed, the company has already factored in plans for growth. “We will grow our team to 80 employees once we launch in Klaipeda FEZ and are looking to employ another 20 next year,” states Ina Vaicekauskiene. Along with access to a talent pool that allows this rapid expansion, Klaipeda FEZ’s excellent infrastructure and surroundings were also key selling points. “We were attracted by the excellent infrastructure and roads suitable for heavy transport, plus the incredibly attractive environment which creates just the right impression for our business guests.”
A great start for FlexStart
Baltijos Eukutecas will be the first tenant of FlexStart, a manufacturing and administrative complex in Klaipeda FEZ that gives businesses the opportunity to launch operations in only 3 months. Baltijos Eukutecas will occupy 2,700 sq m of the new facility, which has a total of 6,000 sq m of dedicated production space, plus 1,400 sq m of office space.
Since Klaipeda FEZ announced its plans to build the FlexStart complex a few months ago, it has received a number of enquiries from prospective tenants. As Mantas Katinas, General Manager of the investment development agency Invest Lithuania, explains, FlexStart’s speed and adaptability are meeting clear needs in the market. “Set up and launch speed are key factors for manufacturing and logistics companies when selecting a location,” comments Mr Katinas. “I am pleased Klaipeda FEZ was bold and decided to develop this project before signing a contract with its first tenants. That decision has paid off.”
Growth in automotive sector and beyond
Baltijos Eukutecas is the 3rd new company to invest in Klaipeda FEZ this year, and to date, €15.5 million worth of investments have been announced in 2018. Baltijos Eukutecas’ arrival will also add further momentum to the development of the automotive sector in Klaipeda. “Baltijos Eukutecas is already an active supplier for one Klaipeda FEZ based company – the electric bus producers Dancer Bus,” points out Eimantas Kiudulas, CEO of Klaipeda FEZ. “Hence, we see a great synergy developing in the supply chain for electric vehicle components within the FEZ.” Klaipeda FEZ’s automotive and electric vehicle ecosystem currently includes Dancer Bus, Yazaki, Albright and Be-Ge.
The rapid growth of Klaipeda’s automotive industry is just the tip of the iceberg in terms of international investment. Strong infrastructure, a convenient geographical location, and an excellent environment for business growth are all driving international investment in Klaipeda, as the city’s Mayor Vytautas Grubliauskas explains: “Klaipeda has seen strong growth from new investors in the automotive sector, but also in the expansion and development of companies already established here. This highlights the competitive and dynamic business environment the city has to offer.”