Mažeikiai YOUR NEXT BUSINESS LOCATION MAŽEIKIAI | YOUR NEXT BUSINESS LOCATION
Lithuania
1.8% GDP growth in 2015 [1] -0.7% inflation in 2015 [1] 4th lowest profit tax in the EU [2] 1st for industry-university collaboration in R&D in the CEE [3] 13th freest economy in the world [4]
Source 1: Statistics Lithuania, 2016 Source 2: KPMG, 2016 Source 3: WEF Global Competitiveness Report 2016-2017 Source 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 MAŽEIKIAI | YOUR NEXT BUSINESS LOCATION
Convenient geographical position allows to reach four International Airports (3 in Lithuania and 1 in Latvia) within less than 3 hour drive.
*Kilometers are approximate MAŽEIKIAI | YOUR NEXT BUSINESS LOCATION
Road, connecting two biggest ports in the Baltics - Klaipėda (LT) and Riga (LV) goes via Mažeikiai.
Close proximity to the European route Via Baltica. MAŽEIKIAI | YOUR NEXT BUSINESS LOCATION
Two major seaports - Klaipėda and Riga - can be reached within 2 hours drive.
Source 1: Port of Klaipėda, 2016 Source 2: Freeport of Riga, 2016 Source 3: Port of Liepaja, 2016 MAŽEIKIAI | YOUR NEXT BUSINESS LOCATION
Economic growth Sectors with the and industrial competences highest turnover in Mažeikiai-Telšiai region:
6th region in Lithuania by GDP
90% of Mažeikiai turnover is manufacturing
Employees: 1300 Employees: 800 Employees: 4200
Source: National Statistics Departments, 2016 MAŽEIKIAI | YOUR NEXT BUSINESS LOCATION
Mažeikiai is the 7th city in Lithuania according to FDI Foreign Direct 244m EUR of FDI Investment (FDI) 4454 EUR of FDI per capita
92% of FDI in Telšiai region is in Mažeikiai region
Source: National Statistics Departments, Mažeikiai district data, 2016 MAŽEIKIAI | YOUR NEXT BUSINESS LOCATION
Top FDI industries
Manufacturing accounts for 94% of the region’s total FDI
Source: National Statistics Departments, Telšiai county data, 2016 MAŽEIKIAI | YOUR NEXT BUSINESS LOCATION
Top investing countries:
Poland The Netherlands 1700 United Kingdom Over 1700 people Denmark Norway employed by FDI manufacturing companies
Source: Orbis, 2013 MAŽEIKIAI | YOUR NEXT BUSINESS LOCATION
Mažeikiai was a destination for
CASE STUDY CASE 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 Area of refinery – 1014 ha Leader in export, with 13% share of the total Lithuanian export in 2015 Build up territory – 670 ha Important partner for the biggest state controlled enterprises: Actual capacity of refinery – 10 mln tonnes of crude per year 17% of Railways (Lietuvos geležinkeliai) transshipments in 2015 14% of Klaipėda Sea Port sea port turnover in 2015
Source: PKN ORLEN MAŽEIKIAI | YOUR NEXT BUSINESS LOCATION
Products & services: Advantages: Main Clients:
Plasma, laser cutting World – class quality VOLVO Stamping, rolling, pressing, Flexibility and special VALMET welding support for the customer AGRAFA s.r.o CNC machining (milling, Wide variety of services Etebra Maskin & Companies turning, etc.) & products Vagn AB Design, deep drawings Small quantities available Y-Agro OY WESTERN FABRICATIONS Montage of steel structures in & fast supply Weeks Trailers LTD STRONGA place Convenient location for the Various local&Baltic RUDESTA Special operations: Anodizing, export in both directions partners ABF LT Aluminum casting (to EU countries and to TAULIDAS Customs Union) AUROMETA ELMAGA POREMO MAŽEIKIAI | YOUR NEXT BUSINESS LOCATION
Advantages Main clients:
Long traditions in milk and Local retailers (Maxima, meat processing industries IKI, Norfa, RIMI, Lidl)
Law labor costs and a pool Foreign retailers (KESKO, Companies of skilled professionals ICA, TESCO) UNILEVER Good location for the PIENO ŽVAIGŽDĖS export in both directions („MILK STARS“) (to EU and to Customs MAŽEIKIŲ MĖSINĖ Union) VIGESTA MAŽEIKIAI | YOUR NEXT BUSINESS LOCATION
Highly skilled and educated workforce
10.6% 72% Working in manufacturing 23200 10.3% Speak a foreign Workforce Seeking employment language
260 Nearly 900 83% 16% Graduates at Students at Russian 32% German vocational school vocational school English Source: Ministry of Education and science of the Republic of Lithuania Telšiai Labour exchange, 2016 National Statistics Departments, 2011 MAŽEIKIAI | YOUR NEXT BUSINESS LOCATION
Average monthly labour costs (EUR) in Mažeikiai and other major cities in Lithuania
Attractive labour 1000 costs 900
800
700
600
500
400
300
200
100
0 Source: National Statistics Vilnius Klaipėda Kaunas Mažeikiai Panevėžys Šiauliai Departments, 2016 municipality municipality municipality municipality municipality municipality MAŽEIKIAI | YOUR NEXT BUSINESS LOCATION
INDUSTRIAL PARK (30ha) Territory for the development of industry, business and logistics SPECIFICATION: - Free state land (6.6ha) - Private land for the development (10.1ha) - Teritory under development (12.3ha)
Distance to the city center - 2km
Planned territory for logistics center MAŽEIKIAI | YOUR NEXT BUSINESS LOCATION
Territory for the development of industry, business and logistics (45ha) MAŽEIKIAI | YOUR NEXT BUSINESS LOCATION
Well-developed infrastructure in Mažeikiai industrial zone:
Power line nearby Optical cable nearby 300 mm 600 mm 800 mm PE O ~400 average pressure
Source: Mažeikiai District Municipality, 2016 MAŽEIKIAI | YOUR NEXT BUSINESS LOCATION
st Business Ease of doing business / World ranking – 21 (Doing business 2017, World Bank) friendly Time needed to establish a business – 3 days (State Tax Inspectorate Under the environment 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 MAŽEIKIAI | YOUR NEXT BUSINESS LOCATION
Mažeikiai Municipality offers:
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 | YOUR NEXT BUSINESS LOCATION
Business support services: Mažeikiai tourism business and information centre Mažeikiai Association of Entrepreneurs
The aim is to unite entrepreneurs in order to help improve the business environment and Technical office and business administration services represent member interests. Consultations on starting of the business and opening of an enterprise
A non-profit organization that seeks to further develop commerce and industry Consultations on business financing and planning issues 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. More information: Positive business people image formation within the society. www.mazeikiutvic.lt Events, conferences, seminars, and training programs for entrepreneurs. MAŽEIKIAI | YOUR NEXT BUSINESS LOCATION
Quality of life
Well-developed city With a developed network of Plenty of activities throughout UNESCO renowned pristine infrastructure: education institutions - from the year: from three museums, beaches in Curonian Spit (LT) or renovated main kinder gardens to high schools, sport arena to open-air music a 300 km long sea cost (LV) can roads, new bicycle Mažeikiai is a great place for venues during the warm be reached within a short 1,5 paths and children young families with kids. season. hour ride from Mažeikiai. playgrounds MAŽEIKIAI | YOUR NEXT BUSINESS LOCATION
„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.”
Ireneusz Fąfara,
CEO and Chairman of the Board in Profile: FTE: „ORLEN Lietuva” 1300+ . Production and sales of petroleum products. . Main competences: engineering, finance and accounting, ecology, lean Est.: management. 2006, Mažeikiai . 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. MAŽEIKIAI | YOUR NEXT BUSINESS LOCATION
„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 Darius Jurkus, outside of the capital and the larger industry centers.”
Managing Director of „Western Fabrications“
Profile: FTE: 100 . Manufacturer of agricultural equipment, such as agricultural semitrailers, equipment for soil cultivation and fertilizing. Est.: . The main competence of employees is metal processing, namely cutting, 2002, in Mažeikiai distr. bending, turning, milling, coating. MAŽEIKIAI | YOUR NEXT BUSINESS LOCATION
They’re already here
Oil processing and refinery: MAŽEIKIAI | YOUR NEXT BUSINESS LOCATION
Mayor‘s advisor for investment matters
Mob.: +370 630 52872 Private.: +370 699 44730 E-mail: [email protected]
In cooperation with Virgilijus Radvilas
www.investlithuania.com