Today, Philip Morris announced the launch of a new LTL 137 million investment project to expand its factory in Klaipėda. The expansion and modernisation of the factory, which is already set to start this year, will increase production capacity by 40%. All extra production will be exported, primarily to the highly quality exigent market of Japan. The investment will create 40 new jobs at the factory and provide more orders for local Lithuanian service suppliers and business partners. Currently, more than 90% of Klaipėda-based factory production is exported to around 60 global markets.
“This project of production industry expansion proves the fact that our efforts to bring foreign investment to Lithuania are effective. I am pleased that major international companies like Philip Morris value the investment environment of the country, continue their operations and make additional investment that boosts production and creates new jobs,” said Evaldas Gustas, the Minister of Economy.
According to Alberto Bernardi, the Managing Director of Philip Morris Baltic, this investment demonstrates company’s further commitment to continue its operations in Lithuania and is the result of more than 20 years of successful presence in the country. “Philip Morris was one of the first foreign investors in independent Lithuania and today the company’s investment in the country amounts to LTL 713 million”, said Mr. Bernardi.
Rimvydas Pundinas, Director Operations of Philip Morris Lietuva, pointed that a qualified staff, an effective dialogue with state institutions and a healthy business environment are essential to increasing the potential of attracting foreign investment to Lithuania.
“Investment will boost production, which will enable us to ensure the highest quality products and successful competition in export markets,” commented Director of Operations. “The new investment is also indicative of the appreciation of a highly qualified staff, strong motivation and experience on an international level,” Mr Pundinas noted.
Justinas Pagirys, the Director of the Investment Development Department at Invest Lithuania, is convinced that the production will also benefit Lithuania indirectly. “When companies like Philip Morris are successfully operating in Lithuania and are able to expand their production volume and exports, it sends a clear signal to other international companies that our country can offer an exclusively favourable environment for setting up and developing a business,” he said.
[quote text=”Investment will boost production, which will enable us to ensure the highest quality products and successful competition in export markets” name_surname=”Rimvydas Pundinas” description=”Director Operations of Philip Morris Lietuva”]
New investment project of Philip Morris Lietuva marks solid investments into production capacity increase as well as creation of approximately 40 new jobs in the factory. Increased factory production volumes will allow to produce top quality products and increase exports to Japan, in addition to such markets as Northern Europe and duty free shops.
About Philip Morris in Lithuania
With its investment in 1993, Philip Morris became the first international investor in Lithuania after the country restored its independence. The construction of the new factory in Klaipėda by Philip Morris in 1997 was the first Greenfield project to be implemented in Lithuania.
Currently, the company employs over 540 people in Lithuania (Vilnius and Klaipėda). The factory exports products to more than 60 markets globally. The Klaipėda-based factory is the only tobacco factory in the Baltic States. Since 1993, Philip Morris has invested LTL 713 million in Lithuania.
Last year, Philip Morris Baltic was the second-largest taxpayer in Lithuania (LTL 555 million).
In 2002, Philip Morris Lietuva sold the property of its factory to Klaipėda City Municipality for a symbolic price of LTL 1. The old factory was redesigned into a creative incubator, the Cultural Factory, and opened to the public in 2014.
Philip Morris has sponsored nearly 60 charity projects in Lithuania.
¹ Data of the State Tax Inspectorate: www.vmi.lt
Subscribe to our newsletter!
Don't miss out on all the latest news on the Lithuanian business environment