# Klaipėda Free Economic Zone

Klaipėda Free Economic Zone (Klaipėda FEZ, KFEZ) (Lithuanian: Klaipėdos laisvoji ekonominė zona) is designated economic area in the Baltic region. Established in 1996 and officially launched in 2002, it spans 412 hectares and is primarily used for manufacturing, logistics, and business activities. Located in Klaipėda, Lithuania, the zone is situated near the Baltic Sea and is accessible by road and rail connections to continental Europe.

## History

Tax incentives :
| Tax | |
| Corporation tax | 0% (first 10 years) 7.5% (following 6 years) |
| Real estate tax | 0% |
The first steps for the establishment of the Klaipėda zone were undertaken in 1996. In 1997, a management company was selected after reviewing five proposals. The Klaipėda FEZ is managed by Klaipėda FEZ Management Company (Lithuanian: Klaipėdos LEZ Valdymo Bendrovė), a private limited liability company. The Baltic Fund, an investment fund, financed through foreign investors which owned about 60% of the management company. The remaining shares are owned by city enterprises, municipalities, and the Government of Lithuania. In 2001, the Rockefeller Foundation sold its shares to Pierre J. Everaert Family Trust based in Demarest New Jersey, which then became the largest private shareholder of the KFEZ.
Another set of obstacles was raised during Lithuania's negotiations for accession to the European Union. Klaipėda FEZ began its activities in December 2001. In 2003, Thailand-based Indorama announced an investment of 80M euros into a plastic production factory. To further attract investors to FEZ, Lithuanian-based companies have been allowed to participate since 2004. A year later, the FEZ began plans for expansion and further development of its land, requesting assistance from structural funds of the European Union. By the end of 2007, FEZ attracted some 600M litas (174M euros) of investments. The total attracted investments since 2002 are 783M Eur.
Currently, more than 5,000 employees work at the FEZ investor and supporting companies.

## Location

Klaipėda FEZ is located in the southeastern part of the city of Klaipėda, near the main transport Klaipėda-Vilnius highway. The distance from the headquarters to the Port of Klaipėda is 8km, to the Klaipėda-Palanga International Airport is 35 km, to the Kaunas Airport is 218km and to the Vilnius Airport is 304km.

## Operations within FEZ

Klaipėda FEZ community currently connects over 5,000 employees working in more than 100 industrial businesses focused on Plastics & PET, food processing, offshore & large metal structures, electric vehicles & components, value-added logistics and other industries.
Klaipėda FEZ has 45 clients right now, which are foreign and Lithuanian companies. In total, 19 countries are represented. Total investments are approx. 825M Euros.
Klaipėda FEZ is a recognized economic project of national significance.

## Companies

Companies operating within Klaipėda FEZ:
* Orion Global PET
* Neo Group
* Retal Baltic
* Glassbel Baltic
* Espersen
* Mestilla
* Be-Ge Baltic
* Pack Klaipėda
* Skuba Lietuva
* Klaipėda Business Park
* Albright Lietuva
* Gren Klaipėda
* Dancer Bus
* ANI Plast
* HeidelbergCement Group
* Vingės logistika
* AD REM LEZ
* Lavango Engineering LT
* Lindström
* Rehau Production LT
* Baltic Comri Technologies
* Elme Metall Klaipėda
* Werner Wirth Baltic
* Etman
* Philip Morris International (operating outside the official Klaipėda FEZ territory)
and others.

## Achievements

* Main Award for Digitization and Red Tape Reduction, Honourable Mention for Industry 4.0 and Positive Impact at Economic Zone Sustainable Recovery Strategies Awards 2021
* Honourable Mention for EU Compliance, 5G connectivity at Global Free Economic Zone of the Year Awards 2021
* Bespoke Award for Sustainability at Global Free Economic Zone of the Year Awards 2020
* Honourable Mention for Investor Expansions, Local transport, Workforce Amenities, FlexStart at Global Free Economic Zone of the Year Awards 2019
* Bespoke Award for Investor Expansions, Investor Incentives, Economic Impact and Flexible Space at Global Free Economic Zone of the Year Awards 2018
* In 2017 Klaipėda FEZ was recognised within the categories of “Quick Launch award” (Editor’s choice), Expansion, Energy Efficiency, Specialism (for Plastics industry) and Contribution to the National economy. Investors wishing to establish operations in Lithuania’s Klaipėda FEZ can use the zone’s Fast Factory Launch scheme. The scheme offers companies ready for use sites that come complete with all the required construction permits, as well as the ability to make minor adjustments to customise the site to fit the investor’s needs. Outside of Klaipėda, construction permits in Lithuania can take up to six months. Additionally, the Flexstart programme aims to allow investors to commence operations in less than one month, with customisable pre-built manufacturing facilities. New offices are currently under construction that will be offered to SMEs as part of the programme.

## General facts and information

* Address – Pramonės Str. 8, LT-94102, Klaipėda, Lithuania.
* Official website: https://www.fez.lt/
* Klaipėda FEZ is managed and administered by the Klaipėda FEZ Management Company, CEO Eimantas Kiudulas.
* Start of operations: 2002
* Total area: 412 ha
* Number of operating companies: 100+, Klaipėda FEZ clients: 45+.
* No. of countries represented by companies: 19
* Jobs created: 5000+
* Total attracted investments: 825M Eur.
* State investment: 7,8M Eur.
* Revenue generated by investors in 2023: about 1,34bn Eur.
* Export in 2023: 611M Eur.