Construction of REHAU factory in Klaipėda FEZ completed
Finnish developer YIT Lietuva has completed a nearly 20,000 sqm micro cable pipe factory in the Klaipėda Free Economic Zone. The project, launched in December 2020, has already produced first test products and is fully ready for production.
YIT Lietuva, a Finnish-owned real estate development company, has completed the construction of a micro cable pipe factory with an area of almost 20,000 square meters at the Klaipėda Free Economic Zone (FEZ). The project began in December 2020 after YIT Lietuva won an international tender for the financing and construction of the plant, initiated by REHAU together with Klaipėda FEZ.
Despite COVID-19 restrictions and remote work with German colleagues, the first test products were produced just over ten months after the start of construction. Within 12 months, the facility was fully prepared to begin production. Plant manager Giedrius Kaukas called it one of the fastest and most efficient plant construction and commissioning projects, achieved through joint efforts of Klaipėda FEZ management, YIT Lietuva, and REHAU teams in Germany and Lithuania.
The plant is expected to create about 100 jobs in the current phase, with the REHAU team expanding by dozens more employees later. The company has already recruited and will continue to hire specialists in security, production, logistics, quality, and maintenance, as well as managers, electricians, machinists, toolmakers, support workers, crushing operators, shift craftsmen, and technicians. A quality laboratory has been set up, and some initial employees have already started work, with further training to take place at the company's plants in Austria or Germany. The Klaipėda plant will produce floor heating pipes.
Eimantas Kiudulas, head of Klaipėda FEZ, stated that the REHAU project is a great success story for Klaipėda and Lithuania, implemented under extraordinary circumstances and exceeding expectations in terms of deadlines. REHAU chose Klaipėda because the FEZ promised to deliver the project almost six months faster than other locations. Many city and national organizations worked as a team to attract this top-tier company.
Kęstutis Vanagas, CEO of YIT Lietuva, said the project was complex due to the pandemic and supply chain disruptions but was delivered successfully and on time. He emphasized that the project will benefit all parties, especially the economy of the Klaipėda region and Lithuania as a whole. In November, YIT Lietuva announced a deal with Maltese investment company Hili Properties to hand over the REHAU factory building. Hili Properties will become the owner by the end of the year, and REHAU will lease the facility. This transaction adds to Hili Properties' portfolio, which includes six shopping centers and six restaurants in the Baltics.
REHAU is a German polymer giant that started as a family business and remains one. It now has over 170 locations worldwide and an annual turnover of around €3 billion. Two years ago, the company scouted locations across Europe for a new plant. Klaipėda FEZ offered not only well-developed infrastructure and an active business community but also solutions that allowed the desired start-up date to be advanced by nearly half a year.
Klaipėda FEZ is the longest operating and leading free zone in Lithuania. It hosts 45 companies on 412 hectares, with a total turnover of €927 million in 2020 and exports of almost €478 million. Since operations began, €747 million has been invested in the zone, mostly in foreign direct investment. In total, over 100 companies and nearly 6,000 employees work in the area. Investors in Klaipėda FEZ specialize in PET, electric transport and components, the food industry, industrial equipment, and other sectors. Some companies are engaged in production and intensive scientific, research, and innovation activities.
