mazeikiai - your next business location

MažeikiaiYOUR NEXT BUS INESS LOCAT ION

Lithuania

1.8%-0.7% 4th

1st

13th

GDP growth in 2015 [1]

inflation in 2015 [1]

lowest profit tax in the EU [2]

for industry-university collaboration in

R&D in the CEE [3]

freest economy in the world [4]

Source 1: Statistics Lithuania, 2016Source 2: KPMG, 2016Source 3: WEF Global Competitiveness Report 2016-2017Source 4: Heritage Foundation, 2016

MAŽEIKIAI | YOUR NEXT BUSINESS LOCATION

Mažeikiai city

Lithuania’s 8th largest citylargest city

Population of 54000

Working age population: 34700

Catchment area of Telšiai region population: 141000

Catchment area working age population: 88000

Source: National Statistics Departments, 2016


*Kilometers are approximate


Convenient geographical position allows to reach four International Airports (3 in Lithuania and 1 in Latvia) within less than 3 hour drive.

Road, connecting two biggest ports in the Baltics - Klaipėda (LT) and Riga (LV) goes via Mažeikiai.

Close proximity to the European route Via Baltica.


Two major seaports - Klaipėda and Riga - can be reached within 2 hours drive.

Source 1: Port of Klaipėda, 2016Source 2: Freeport of Riga, 2016Source 3: Port of Liepaja, 2016


6th

90%

region in Lithuania by GDP

of Mažeikiai turnover is manufacturing

Economic growth and industrial competences

Source: National Statistics Departments, 2016


Sectors with the highest turnover in Mažeikiai-Telšiai region:

Employees: 1300 Employees: 800 Employees: 4200

Foreign Direct Investment (FDI)

Source: National Statistics Departments, Mažeikiai district data, 2016

Mažeikiai is the 7th city in Lithuania

according to FDI

244m

4454

92%

EUR of FDI

EUR of FDI per capita

of FDI in Telšiai region is in

Mažeikiai region


Source: National Statistics Departments, Telšiai county data, 2016

Manufacturing accounts for 94% of the region’s total FDI

Top FDI industries


Over 1700 people employed byFDI manufacturing companies

Source: Orbis, 2013

Poland

The Netherlands

United Kingdom

Denmark

Norway


Top investing countries:

1700

Area of refinery – 1014 ha

Build up territory – 670 ha

Actual capacity of refinery – 10 mln tonnes of crude per year

MAŽEIKIAI | YOUR NEXT BUSINESS LOCATION CASE S

TU

DY

Mažeikiai was a destination for

the biggest oil company PKN ORLEN.

In 2006 PKN ORLEN acquires 84% stake in Mazeikiu Nafta

In 2009 PKN Orlen acquires full ownership of the company and is renamed to ORLEN Lietuva

With a turnover of over 3 bln EUR, ORLEN Lietuva is the only petroleum refinery and the biggest company in the Baltics

The largest taxpayer in the state, according to the State Tax Inspectorate

Leader in export, with 13% share of the total Lithuanian export in 2015

Important partner for the biggest state controlled enterprises: 17% of Railways (Lietuvos geležinkeliai) transshipments in 2015 14% of Klaipėda Sea Port sea port turnover in 2015

Source: PKN ORLEN

WESTERN FABRICATIONS

STRONGA

RUDESTA

ABF LT

TAULIDAS

AUROMETA

ELMAGA

POREMO

Products & services:

Plasma, laser cuttingStamping, rolling, pressing, weldingCNC machining (milling, turning, etc.)Design, deep drawingsMontage of steel structures in placeSpecial operations: Anodizing, Aluminum casting

Companies

Advantages:

World – class quality

Flexibility and special support for the customerWide variety of services& products Small quantities available& fast supplyConvenient location for the export in both directions (to EU countries and to Customs Union)

Main Clients:

VOLVO

VALMETAGRAFA s.r.oEtebra Maskin & Vagn ABY-Agro OYWeeks Trailers LTD Various local&Balticpartners


UNILEVER

PIENO ŽVAIGŽDĖS

(„MILK STARS“)

MAŽEIKIŲ MĖSINĖ

VIGESTA

Long traditions in milk and meat processing industries

Law labor costs and a pool of skilled professionals

Good location for the export in both directions (to EU and to Customs Union)

Advantages Main clients:

Companies

Local retailers (Maxima,

IKI, Norfa, RIMI, Lidl)

Foreign retailers (KESKO,

ICA, TESCO)


Students at vocational school

Highly skilled and educated workforce

Working in manufacturing

Seeking employment

Source: Ministry of Education and science ofthe Republic of LithuaniaTelšiai Labour exchange, 2016National Statistics Departments, 2011

23200

WorkforceSpeak a foreign

language

72%

83%Russian 32%

English

16%German

260

Graduates at vocational school

Nearly 900

10.3%


10.6%

Average monthly labour costs (EUR) in Mažeikiai and other major cities in Lithuania


Source: National Statistics

Departments, 2016

Attractive labour costs

0

100

200

300

400

500

600

700

800

900

1000

Vilnius Klaipėda Kaunas Mažeikiai Panevėžys Šiauliaimunicipality municipality municipality municipality municipality municipality

Territory for the development ofindustry, businessand logistics

Planned territory for logistics center


INDUSTRIAL PARK (30ha)

SPECIFICATION:- Free state land (6.6ha)- Private land for the development (10.1ha)- Teritory under development (12.3ha)

Distance to the city center - 2km

Territory for the development ofindustry, businessand logistics (45ha)


Well-developed infrastructure in Mažeikiai industrial zone:

Source: Mažeikiai District Municipality, 2016

300 mm 600 mm 800 mm PE O ~400


average pressureOptical cable nearbyPower line nearby

Business friendly environment

Ease of doing business / World ranking – 21st(Doing business 2017, World Bank)

Time needed to establish a business – 3 days (State Tax Inspectorate Under the

Ministry of Finance of the Republic of Lithuania, 2016)

VAT – 21% (State Tax Inspectorate Under the Ministry of Finance of the Republic of

Lithuania, 2016)

Personal income tax – 15% (State Tax Inspectorate Under the Ministry of Finance of

the Republic of Lithuania, 2016)

Social security tax paid by employer – 30.98% (State Social Insurance Fund Board

of the Republic of Lithuania under the Ministry of Social Security and Labour)

15% corporate tax rate – 4th lowest in the EU, (KPMG, 2016)

Sources - pataisyti atitinkamai


Construction permits – 21-42 working days

Spatial planning procedures – 1-3 month

A direct contact person to guide you through the processes

Municipality co-funds the development of infrastructure (public transport, street

infrastructure and sidewalks) for new investors which create over 20 FTE

Decisions on lowering real estate and land lease tax rates:

Real Estate tax: 0.4% for small and medium size companies and 1,5% for large companies. For the

new FDI – 0.00% for 2-6 years, depending on investment

1,3% land lease tax for industrial purposes. For new FDI – 0.00% for 2-6 years,

depending on investment

Tax for the private land: 0,5% for industrial purposes and 0,8% for the commercial purposes. For the

new FDI – 0.00% for 2-6 years, depending on investment

Mažeikiai Municipality offers:


Technical office and business administration services

Consultations on starting of the business and opening of an enterprise

Consultations on business financing and planning issues

More information:

Business support services:

Mažeikiai Association of Entrepreneurs

Mažeikiai tourism businessand information centre

A non-profit organization that seeks to further develop commerce and industry

in the region.

60 members representing from various business areas.

A member of Presidium of Lithuanian Business Confederation.

Entrepreneurs interests representation and a dialogue between business and

government institutions.

Positive business people image formation within the society.

Events, conferences, seminars, and training programs for entrepreneurs.

The aim is to unite entrepreneurs in order to help improve the business environment and

represent member interests.


www.mazeikiutvic.lt

Quality of life

Plenty of activities throughout the year: from three museums, sport arena to open-air music venues during the warm season.

With a developed network of education institutions - from kinder gardens to high schools, Mažeikiai is a great place for young families with kids.

Well-developed city infrastructure: renovated main roads, new bicycle paths and children playgrounds


UNESCO renowned pristine beaches in Curonian Spit (LT) or a 300 km long sea cost (LV) can be reached within a short 1,5 hour ride from Mažeikiai.


Ireneusz Fąfara,

CEO and Chairman of the Board in

„ORLEN Lietuva”

„We continue to be impressed with the high level of

competence that we find in the people of Mažeikiai,

many of whom are also our employees. People are the

core of every business, and it is with them that we are

able to meet our strategic targets.”

Profile:

Production and sales of petroleum products. Main competences: engineering, finance and accounting, ecology, lean

management. The Company is the most important supplier of petrol and diesel fuel in

Lithuania, Latvia and Estonia. Company’ products are also exported to Western Europe, USA, Ukraine,

and other countries. PKN ORLEN S.A. owns 100 per cent of ORLEN Lietuva shares.

FTE:1300+

Est.:2006, Mažeikiai


Darius Jurkus,

Managing Director of„Western Fabrications“

„With its pool of talented engineers and technical staff,

Mažeikiai has proved to be the right fit for us. We are

proud that we are residents of Mažeikiai, and we

believe our company shows that it is indeed possible to

reach high levels of efficiency in areas that are located

outside of the capital and the larger industry centers.”

Profile:

Manufacturer of agricultural equipment, such as agricultural semitrailers,

equipment for soil cultivation and fertilizing.

The main competence of employees is metal processing, namely cutting,

bending, turning, milling, coating.

FTE:100

Est.:2002, in Mažeikiai distr.

They’re already here

Oil processingand refinery:


Mayor‘s advisor

for investment matters

Mob.: +370 630 52872

Private.: +370 699 44730

E-mail: [email protected]

In cooperation with

www.investlithuania.com


Virgilijus Radvilas

mazeikiai - your next business location

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