KAUNAS Free Economic Zone

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2 KAUNAS Free Economic Zone Rapidly growing industrial development area which offers privileged conditions for your business: Strategic geographic location Land plots with complete infrastructure Tax incentives Favorable business environment Specialized areas Management company's experience and results

3 Strategic geographic location WHERE we are in Europe? SE FI 3 DAYS NO Oslo Helsinki Saint- Petersburg Stockholm Talinn EE 1 DAY RU IE DK Copenhagen Klaipeda LV Riga LT Kaunas To China Moscow LEGEND European Union member states Duration going by truck Railways Rail Baltica Kaunas FEZ UK London Antverp Kiel NL Hamburg Amsterdam Roterdam DE BE LU CZ Gdansk PL Warsaw SK BY UA Main roads Main water roads Main air roads FR CH IT AT SI HR HU RO MD Odesa BA RS PT ES ME XK MK AI BG TR GR

4 Strategic geographic location WHERE we are in Riga SIAULIAI KLAIPEDA PANEVEZYS Saint- Petersburg A1 A8 A6 LEGEND Inland waterway Roads Railways Rail Baltica City territory Kaliningrad A5 KAUNAS A1 VILNIUS Kaunas region Warsaw Berlin Minsk Moscow Kiev DISTANCES (km) Vilnius Siauliai Klaipeda Riga Warsaw Talinn Helsinki Berlin Panevezys Kaliningrad Minsk

5 Strategic geographic location WHERE we are in Kaunas? A8 A1 Panevezys Riga Talinn Helsinki Klaipeda A6 KAUNAS INTERNATIONAL AIRPORT MARVELE CARGO PORT KAUNAS INTERMODAL TERMINAL A1 Vilnius Minsk RAILWAY STATION LEGEND Inland waterway Roads Railways Rail Baltica FEZ territory City territory A5 Kaliningrad Warsaw

6 Strategic geographic location KAUNAS FEZ territory KAUNAS INTERNATIONAL AIRPORT LEGEND Production and Logistics Business street Airpark Occupied territories by investors Aircraft taxiways 330/110 kv District electrical substation Railway KAUNAS INTERMODAL TERMINAL

7 Strategic geographic location EFFICIENT multimodal access PALEMONAS 4KM AIRPORT 6KM VIA BALTICA 7KM KAUNAS CENTER 9KM Rail cargo routes direct to Latvia, Poland, Germany, Russia, Belarus, China. 2-3 hours flight to major European cities or Moscow. VILNIUS 100KM KLAIPEDA SEAPORT 200KM The biggest ice-free seaport in the Baltics.

8 Strategic geographic location Elinta was founded in 1991 and from the beginning it engages in industrial automation. While expanding our company we began to look for the industrial zone around Kaunas, which would be suitable for our development. We chose Kaunas Free Economic Zone, where we set up in 2007 as the first production company. In the beginning we had some worries - will the Zone continue developing, will more companies simillar to ours settle there? Now I can surely confirm - we really are where we wanted to be. Of course, not only the location is important tax incentives are also one of the benefits. Vytautas Jokuzis director

9 Land plots with complete infrastructure LAND PLOTS with complete infrastructure Settlement duration and stages Agreement 2-4 weeks Construction process 8-12 months Technical project, preparation of required paperwork 4-6 months Infrastructure up to the land plot Asphalt road Water supply and sewerage system Rainwater drainage system Gas pipeline

10 Land plots with complete infrastructure While planning the expansion of our company we were looking for a strategically attractive location. One of the main criteria was the duration of the settlement. Kaunas Free Econominc Zone offered us exclusive conditions thanks to which we managed to finish our factory and start business in less than a year time. Dainius Svilpauskas director

11 Tax incentives TAX INCENTIVES in Kaunas FEZ Investors in logistics or manufacturing of at least 1 million EUR or service of at least 100 thousand EUR benefit from exemption Corporate Tax: No real estate taxes are paid in FEZ territory No taxes on dividends earned by foreign investors (pursuant to the Law on Corporate Income Tax) 100 % exemption during the first 10 years 50% exemption for the following 6 years

12 Tax incentives Ryterna Group expansion is based on opening new export markets. While doing this, our product stock grow and increase the need of warehousing and production area. This has prompted us to construct new production and warehousing facilities. Luckily in Kaunas FEZ we always had the opportunities to expand according to our business needs. We hope that tax incentives which we have here will accelerate the payback of our investments. Vytautas Rinkevičius director

13 Favorable business environment ADVANTAGES of 11th 4th x4 in World Bank's Doing Business ranking for starting a business. (World Bank, 2015) for the smallest corporate profit tax rate in European Union (KPMG, 2015) smaller labour costs than the average of European Union (Eurostat, 2013) 1st x2 in Eastern and Central Europe for the cooperation between business and universities in research and development. (WEF Global Competitiveness Report, ) more students are choosing to study engineering, manufacturing or construction compared to the average of European Union (Eurostat, 2012) Most of company's administration procedures can be conveniently executed online through governmental electronic gates system (Elektroniniai valdzios vartai, 2015)

14 Favorable business environment QUALIFIED labour force In Kaunas region: 2016 people in labour pool From them works in manufacturing In average earns % % 92% of ns speak two foreign languages can speak at least one foreign language average gross salary Students and higher education Top 5 educational programmes students 7 universities vocational schools Other 16 % Humanities and arts 7 % Services 8 % Health and welfare 18 % 8 colleges Engineering, manufacturing and construction 25% Social sciences, business and law 26 %

15 Favorable business environment KAUNAS FEZ clients Logistics & distribution Itella Finland Genesta Property Nordic Sweden ALG Logistika Lavisos LEZ terminalas Hellmann Worldwide Logistics /Germany DPD France Tomegris UPS Manufacturing Ryterna Hidrobalt Finnfoam Finland Littec Rokor Spain/Russia Kopa Peraltis Kame Chemsys Run Engineering Hollister USA Electronics & automation Food & pharmaceuticals Energetics Elinta Hitech MTTC Hella Germany Continental Germany Aconitum Vičiūnai Pienas LT Aibe Kauno kogeneracinė jėgainė

16 Favorable business environment Our company was established to start inovative and perspective business in. Currently we are installing our laboratory to improve the existing technology. While being established in Kaunas Free Economic Zone, we have great opportunity to efficiently cooperate with Kaunas University of Technology. Students of this educational institution often visit our company. We hope that in time some of them will become our employees. Kristina Aliabjeva Rumbinienė director

17 Favorable business environment KAUNAS city with industrial traditions Main industries in Kaunas region * Chemistry Electronics Textile Food & beverage IT & shared service centres Logistics & warehousing *Companies operating in Kaunas region

18 Favorable business environment KAUNAS city with industrial traditions ~ foreign companies chose Kaunas for their investments. work places were created Foreign Direct Investments Top investing countries Manufacturing 54% Other 10% Construction 6% Germany Netherlands Luxembourg Real estate 14% Retail 16% Canada Finland

19 Management company EXPERIENCE and results ha mln. EUR first investor FEZ territory investors investments work places were created creating 0,31% 70% of direct n GDP of which is foreign direct investments status of Free Economic Zone until

20 Management company EXPERIENCE and results FEZ management company recomends and consults about Project management Design EU funding programmes Construction Environmental impact assessment Hiring of staff Projects in Kaunas FEZ were carried out by Partners Design Construction Environmental impact assessment BSP Šarakausko biuras

21 Specialized areas MANUFACTURING & LOGISTICS TERRITORY fastest development in FEZ 1. UAB GNBLIT Kaunas Logistics 24. AB Freda 2. UAB Elinta 25. Logistics company 3. UAB Lavisos LEZ terminalas 26. UAB Chemsys 4. UAB Aconitum 5. UAB Ryterna Group 6. UAB Finnfoam 7. UAB Baltic fish export (Vičiūnai Group) 8. ŽŪK Pienas LT 9. UAB LITTEC 10. UAB Rokor 11. UAB Raguvos baldai (Kamė) 12. UAB Interchemie werken 13. UAB DPD Lietuva 14. UAB MTTC 15. UAB Fortum Heat Lietuva 16. Pharmaceuticals 17. UAB Peraltis 18. Warehousing 19. Printing house 20. Business centre 21. UAB Run Engineering 22. UAB Axis Industries 23. Restaurant

22 Specialized areas AIRPARK 27. UAB Hella 28. UAB Hollister 29. Furniture 30. UAB Continental KAUNAS INTERNATIONAL AIRPORT MRO companies are already operating in Kaunas airport. Connection from FEZ territory to airport apron. Startegic location for companies related to aircraft maintenance, aviation industry (aircraft assembly, testing and sales) FEZ territory, bordering Kaunas international airport - a combination of air, land and railway transport means.

23 Specialized areas BUSINESS street 11,8 ha of landplots on A6 road, reserved for offices and hotels land plots with detailed plans traffic intensity on A6 road by Kaunas Free Economic Zone per twenty-four hours Convenient to reach from the region or city, not affected by traffic jams. Easily accesible territory with ready infrastructure Bicycle track from Kaunas city (2014 m.)

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