Schmitz Cargobull in Lithuania has started operations as an assembly plant. Raimundas Petrauskas, CEO, and the local team of innovative engineers have outgrown the primary targets and developed the Center of Excellence focusing on the new product development.
What makes Lithuania a natural choice for Manufacturing? Its eager and skilled workforce, the close ties it builds between business and education, and its commitment to creating the right infrastructure and support for manufacturing growth. What is more, as the bridge between East and West, access to new markets is right on your doorstep.
Quality and costs
Ranked alongside Ireland, Germany, Switzerland for its business environment, Lithuania can also guarantee a fantastic cost to quality ratio.
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Klasmann-Deilmann Lithuania CEO Kazimieras Kaminskas has returned from Germany to Lithuania in 2004 to drive the growth of the operations. Company currently employs more than 400 people and exports products to 80 countries worldwide and has grown to one of the key manufacturing sites globally as well as important R&D center focusing on experimental production.
How to grow a company from 0 to 2000 employees in 20 years? Sigitas Žvirblis would know the answer as he has developed Intersurgical by shifting the company from mechanical assembly to robot-based manufacturing plant in Lithuania.
Industry - university collaboration
Situation: Ensure increasing enrolment to Electronics and Aviation Engineering studies.
Key Actions: To facilitate scalable growth for large-scale newcomers in the Automotive and Aviation industry, a marketing campaign provided 9-12 grade student visits to FDI companies; meanwhile the Ministry of Education agreed to increase government financed places for bachelor education in the most needed areas.
Industrial problem fixing
Problem: Crystal residue had formed inside the strictly-closed piping system of a food production facility.
Challenge: The deconstruction of pipes and mechanical cleaning was not possible/too expensive within the food production facility.
Solution: Industry reached out to universities and received options/solutions for reactive gas and ultrasound residue removal.
R&D on business demand
Business Idea: Develop machine products with exceptional qualities for aluminum friction, wear, and aesthethics.
Approach: Chemical coating laboratory was assigned with a task to create new technology for aluminum surface modification for rigidity, resistance to friction and wear.
Result: Multiple technologies for aluminum surface treatment have been developed and applied for world known producers of machinery and optoelectronic products.
Logistics: fast connection infrastructure
- The location of Lithuania, coupled with its flexible, well-developed logistics networks, allows for fast, efficient and cost-effective delivery to the EU and the CIS markets.
- The country is 1st in the CEE for quality of roads (World Economic Forum, World Competitiveness Report 2017 – 2018)
- Klaipėda, one of the 5 largest ports in the Baltic Sea is capable of accommodating ships with a maximum draught of 13.4 m, and handling up to 46 million tons of goods a year.
International logistics companies in Lithuania
Free Economic Zones
With 7 Free Economic Zones (FEZ) ready for business at the moment, Lithuania has the infrastructure in place to meet your needs.
Free Economic Zone companies are subject to a facilitated tax regime.
Greenfield Investment track record shows that in some FEZs >80% of new-comers exceed their initial plans within two years.
Competitive utility prices
European Union support
- Up to 50% refund for R&D activities
- Up to 50% refund for employee training
- Support measures for renewable energy, regional development, and others apply
- Taxation Treaties with 50 countries
- Corporate profit tax incentives for R&D – fully deductible expenses x3
- Reduced 5% corporate income tax rate can be applied for commercial exploitation of patented inventions.
- Entities involved in an investment project are able to reduce their taxable profits by up to 50% of the actually incurred acquisition costs of long-term assets, meeting certain requirements
For automotive manufacturing, Lithuania has the right balance: a highly educated, unsaturated talent pool, strong logistics, and a high cost to quality ratio.
Lithuania has the range of expertise needed for thriving Industrial Machinery & Equipment manufacturing operations today and tomorrow.
Lithuania can offer just the right conditions to meet the growing demand for battery gigafactories that would follow sustainable manufacturing guidelines.
What's happening in the sector