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MažeikiaiYOUR NEXT BUS INESS LOCAT ION

Lithuania

2.3%2.5% 4th

1st

16th

GDP growth in 2016 [1]

inflation in 2016[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, 2017Source 2: EUROSTAT, Feb. 2017Source 3: WEF Global Competitiveness Report 2016-2017Source 4: Heritage Foundation, 2017

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 Department, 2016

MAŽEIKIAI | YOUR NEXT BUSINESS LOCATION

*Kilometers are approximate


Convenient geographical position Less than a 3 hour drive to four International Airports (3 in Lithuania, 1 in Latvia).

The road connecting the Baltic's two biggest seaports - 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 Department, 2016


Sectors with the highest turnover in Mažeikiai-Telšiai region:

Employees: 1300 Employees: 800 Employees: 4200

Foreign Direct Investment (FDI)

Source: National Statistics Department, 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 Department, Telšiai county data, 2016

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

Top FDI industries


On top of traditional industry sectors in Mažeikiai we have also companies well known in automotive and biotechnology industries.

Over 1700 people employed byFDI manufacturingcompanies

Source: Orbis, 2015

Poland

Denmark

The Netherlands

Switzerland

Germany


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 the destination for the large oil company PKN Orlen

In 2006 PKN ORLEN acquired 84% stake in Mažeikių Nafta

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

With a turnover of over 3 bln EUR, ORLEN Lietuva is the only refinery in the Baltics, as well as the biggest company in the region

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 turnover in 2015

Source: PKN ORLEN

WESTERN FABRICATIONS

STRONGA

JUBANA

ABF LT

MIGIRIS

AUROMETA

MT Group

ELGAMA

POREMO

UNIVERSE Group

ANDRAVA

TAULIDAS

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

Main Clients:

VOLVOVALMETAGRAFA s.r.oEtebra Maskin & Vagn ABY-Agro OYWeeks Trailers LTD Various local & Baltic partners


UNILEVER

www.unlever.com

PIENO ŽVAIGŽDĖS

(„MILK STARS“)

www.pienozvaigzdes.lt

MAŽEIKIŲ MĖSINĖ

www.mazeikiumesine.lt

VIGESTA

www.vigesta.lt

Long traditions in milk and meat processing industries

Low labor costs and a pool of skilled professionals

Good location for 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, oth.)

BB clients inside and outside EU


Export clients:

UK

Poland

Finland

Latvia

Estonia

Italy

China

Other

http://www.unlever.com/

http://www.pienozvaigzdes.lt/

http://www.mazeikiumesine.lt/

http://www.vigesta.lt/

LYRA GROUP

www.lyragroup.eu

AG BALDAI

www.agbaldai.lt

MAJEDNUS

http://www.majednus.lt/

TAUMONA

www.taumona-furniture.lt

Products & services:

Soft furniture (Sofas, Armchairs, etc.)Bedroom furnitureKitchen furnitureOffice furnitureFurniture for the hotels

Companies:


Export clients:

UK

Norway

Sweden

Denmark

Finland

Latvia

Estonia

http://www.lyragroup.eu/

http://www.agbaldai.lt/

http://www.majednus.lt/

http://www.taumona-furniture.lt/

VUDESTA

www.vudesta.lt

DORVINDA

www.dorvinda.lt

BALĖNŲ MEDIS

www.balenumedis.lt

MEDŽIO PROFESIONALAI

www.woodprofesionals.lt

MEDRIEVĖ

www.medrieve.lt

Products & services:Scandinavian windowsEurowindowsExterior&interior doorsBathhousesSauna cabins, pods,Sauna barrelsCamping podsWooden housesOutdoor furnitureOutdoor&indoor planksConstruction timber, etc.

Companies:

Export clients:

Norway

Sweden

Denmark

Latvia


http://www.vudesta.lt/

http://www.dorvinda.lt/

http://www.balenumedis.lt/

http://www.woodprofesionals.lt/

http://www.medrieve.lt/

Students at vocational school

Highly skilled and educated workforce

Working in manufacturing

Seeking employment

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

23200

Workforce

72%

83%Russian

32%English

16%German

260

Graduates at vocational school

Nearly 900

10.3%


10.6%

Speak a foreign language

Average monthly gross salary (EUR) in Mažeikiai and other major cities in Lithuania


Source: National Statistics

Department, 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

Planned territory for logistics center


Specifications

Available state-owned land(6.6ha)

Private land for businessdevelopment (10.1ha)

Occupied land (12.3ha)

Area border

Distance to the city center - 2km;

Area – leveled;

Soil – natural, stable;

Main communications:

- Power– from 5MW

- Wastewater - Ø200;

- Domestic wastewater K – Ø500;

- Drainage K – Ø700

Territory for the development of industry, business and logistics

Territory for the development ofindustry, businessand logistics


Specifications:

Private land, no plots defined (46ha)

Operating facilities

Distance to the city center - 4km;

Power– according to the needs (City’s electrical substation ESO – close by);

Central water supply and sewerage system passes through the area.

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)


Construction permits – 21-42 working days

Spatial planning procedures – 1-3 month

A direct contact person to guide you through all processes

Co-funding the development of infrastructure projects (public transport, street

infrastructure and pavements) alongside new investors for projects which create over 20 FTE.

Decisions on lowering real estate and land lease tax rates

Real Estate tax: 0.3%. For new FDI – 0.00% for 2-5 years, depending on investment

1,3% land lease tax for industrial purposes. For new FDI – 0.00% for 2-5 years, depending on investment

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

0.00% for 2-5 years, depending on investment

Mažeikiai Municipality offers:


Technical office and business administration services.

Consultations for new business on how to begin operations.

Consultations on business financing and planning issues.

More information:

Business support services:

Mažeikiai Association of Entrepreneurs

Mažeikiai tourism business and information centre

The Mazeikiai Association of Entrepreneurs' is a non- profit organisation formed

of 60 members from across all business fields.

Its aim is to develop commerce and industry in the region by representing the

interests of entrepreneurs and building a strong dialogue between private

business and local government.

A member of Presidium of Lithuanian Business Confederation.

Entrepreneurs interests representation and a dialogue between business and

government institutions.

Building a positive public image for business among the local community.

Organizing conferences, events 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

Mažeikiai in brief (video):https://www.youtube.com/watch?v=QjoHIAPlfDg&t=2s

https://www.youtube.com/watch?v=QjoHIAPlfDg&t=2s

Quality of life

Plenty of activities throughout the year to enjoy: from three museums, a sport's arena, to open air music venues during the summer.

With a developed network of education institutions -from kindergardens 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

The UNESCO renowned pristine beaches of the Curonian Spit (LT) or a 300 km long sea coast (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 most important supplier of petrol and diesel fuel in Lithuania, Latvia

and Estonia. ▪ Products are also exported to Western Europe, USA, Ukraine, and other

countries.

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 industrial 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, Mažeikiai

They’re already here

Oil processing and refinery:


Mayor‘s advisor

for investment matters

Mob.: +370 630 52872

Private.: +370 699 44730

E-mail: [email protected]

www.mazeikiai.lt

In cooperation with

www.investlithuania.com


Virgilijus Radvilas

mailto:[email protected]

http://www.mazeikiai.lt/

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