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With €50 M EUR investment into its Klaipeda FEZ facility, Neo Group becomes the second-largest PET producer in Europe
Neo Group, the leading producer of polyethylene terephthalate (PET) granules, launched a new production line at its Klaipeda FEZ facility. This new €50 M investment will allow the company to increase production capacity by 50%, making it the second largest PET producer in Europe. With the new line in place, it is projected that the company will be able to up its production by 155,000 tonnes of products annually, while this investment will also create new employment opportunities to the tune of 35 new jobs. The company expects that, because of this expansion, revenue will exceed 500 million Euros per year, as much of 400 million Euros of which will be generated by export sales.
What has driven this decision to expand operations? At the fore is the company’s intention to better satisfy the demands of an ever-increasing market. As Paulius Ambrazaitis, Neo Group Chairman of the Board, explains: “We are one of the largest suppliers in the European market already. This new production line will further strengthen our position and we will be ready to meet the ever-growing needs of the EU market. This increased capacity will help us expand the geography of our sales. “
This new investment will deliver benefits not only for Neo Group, and its customers. Following the introduction of the new line, the company will become one of the most important exporters and taxpayers in Lithuania. But it doesn’t stop there. Mr Ambrazaitis sees this new investment as a boon for the local economy in general: “We will not only create more jobs directly and indirectly, but we will also pay more taxes, buy more goods and services from other businesses. Increased production will indirectly stimulate job creation. We will transport more goods by road, by rail and by sea, thus increasing cargo business in Klaipėda port. It is estimated that one job in the manufacturing sector creates 4-5 indirect jobs.”
And the company is not only benefitting the local and national economy, it also takes its environmental responsibilities seriously. It is renowned for reusing all the waste generated in its PET production. In fact, in 2014 it brought a biomass boiler station into operation which helped to decrease its annual carbon dioxide emission.
Neo Group has also stated that it has aims for further expansion in Lithuania. Its Klaipeda FEZ facility was established in 2004 and the company has been an active and valued member of the FEZ community ever since.