New Mestilla plant to create value for all of Lithuania

The new Mestilla rapeseed processing plant, officially opened on Thursday in Klaipėda FEZ, represents far more than just another business investment, representatives of business and government state. The project is expected to create strategic value in the fields of energy, agriculture, environmental protection and the economy.

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.