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Vingės Logistika Considering a 12 million EUR Investment at Klaipeda FEZ
Vingės Logistika, a logistics company, is planning to invest 12 million EUR into an expansion of its warehousing space in two plots of land at the Klaipeda Free Economic Zone. This decision was inspired by the needs of their existing clients and the trend of stopping inessential activities, observed in modern manufacturing.
Algimantas Buškis, the CEO of Vingės Logistika, says that the company’s shareholders have confirmed an initial agreement to this investment project, so a study of the project, including detailed calculations, are being carried out. The result of the study will decide the company’s approach going forward, either forcing it to split the projects into stages or allowing it to be realized in its entirety at the same time. The most ambitious plan, if it came to fruition, would expand Vingės Logistika’s warehousing space to almost 40,000 square meters from the 20,100 square meters the company has now.
The company is solving financing questions at the moment, looking at seeking help from banks or other investment companies. Vingės Logistika expects to lay the foundations for the new warehousing space in 2020, the search for a contractor will start soon.
According to A. Buškis, around 96-98% of the current warehousing space available to the company is being used. The biggest clients for Vingės Logistika are closeby neighbours and other companies from the Klaipeda FEZ, like Philip Morris and Neo Group. DSV Lithuania, Žemaitijos Pienas, Ravago Group, Transkomsta, Kaducėjus, and other companies can also be counted among Vingės Logistika clients.
Vingės Logistika reported income of over 3.2 million EUR in Lithuania or 7,5% more than the previous year. The company also employs close to 90 employees.
Eimantas Kiudulas, the CEO of the Klaipeda FEZ, comments that the expansion ambitions showed by Vingės Logisitika will afford even more opportunities for the 30+ manufacturing companies currently working from the Klaipeda FEZ.
“The company quickly saw the advantages of being close to a seaport, being able to use tax relief measures and being in close proximity to strong manufacturers. We are happy that this decision paid off for them and congratulate them on their second expansion project in a decade,” says E. Kiudulas.
Vingės Logistika started its activities in Klaipėda in 2009, after investing 8.2 million EUR into a 18,000 square meter warehouse with space for the administration. In 2014, the company realized its first expansion project, investing 630,000 EUR into building a warehouse extension.
Regimantas Kacevičius, a consultant for the industrial sector department at Colliers, a real estate consulting company, directs attention at the fact that the logistics space market in Klaipeda has been developing much less actively than in Vilnius or Kaunas over the last decade, only three projects of meaningful scale (37,000 sq. m.) were realized.
“This is why this step by Vingės Logistika is completely natural. The scope of activities in the manufacturing and logistics sectors have been growing for a while, demand has almost reached supply. The vacancy numbers in the warehousing market have been for falling for a while, dropping from 10% in 2010 to just 0.3% in 2018. It is believed that a “healthy” number of vacant warehousing space in the market is 5%. For all of these reasons, it is very reasonable to believe that the state of the market and an extremely strategically attractive location will help Vingės Logistika to attract the attention of not only their already existing and quickly growing new clients but also outside companies, looking for rentable warehousing space,” comments R. Kacevicius.