Newly released data shows that German firms are the largest foreign direct investors in Lithuania’s manufacturing industry. The figures, published by foreign investment and business development agency Invest Lithuania, show that out of total investments from Germany of 1.1 billion EUR, approximately 400 million EUR go into manufacturing operations. The main focus of these investments are the oil, chemical, pharmaceutical and automobile sectors.
According to Invest Lithuania, the Baltic country is proving increasingly attractive to German companies primarily due to its highly competitive quality to cost ratios, with personnel costs approximately one-fourth of the EU average. A well-developed business environment, offering corporate and income taxes of 15%, is also a major factor in attracting firms from Germany. There are currently 325 companies located in Lithuania with German parent companies. Beyond these, the Lithuanian Foreign Office estimates that around 1,200 German corporations are represented, including Heidelberg Cement, Thyssen Krupp, Cleantec, Schmitz Cargobull, and Lidl. After Sweden and the Netherlands, Germany is the largest overall investor in the country, contributing approximately 10% of total foreign direct investments.
Read the full article in German in Nachrichten für Außenhandel issue 51, 13th March, Friday, p. 3
