Kaunas IN
2021 06 30
What attracts small businesses to FEZ?

Are free economic zones only for giants? “Not at all,” claim Peraltis and ABC Farma, small and medium-sized companies that have chosen Kaunas Free Economic Zone (FEZ) for their activities and have been making excellent use of the advantages of this business space.

UAB Peraltis, which started as a trading company in 2017 has fundamentally changed the nature of its business and has become the manufacturer of three different types of paper cups: the most widely used PE coated paper and two types of eco-friendly paper cups. One type is coated with corn starch PLA plastic and the other is a 100% recyclable, without PE and PLA plastic, as new technologies laminate based on water.

Ecological awareness, high quality products, the use of innovations are the main principles that Peraltis operates under and which were quickly appreciated by both the vending machine business and the HoReCa sector. About 74% of the production manufactured in Kaunas travels abroad and the rest remains in Lithuania.

When looking for a location to settle, the decision to choose Kaunas FEZ was largely determined by the fact that high-capacity engineering networks have already been installed in the territory – internal asphalt road network, water supply, domestic sewage system, gas pipeline and rainwater drainage system. This ensured that new settlers would not have to worry about infrastructure and that would save time. The last push was given by tax benefits and strategically appealing location that helps to attract employees not only from Kaunas city but also from the surrounding areas.

Currently, Peraltis employs 25 people, who are engineers, technologists and other technical professionals, graduates of major Lithuanian universities (KTU, VU, ISM).

“Kaunas FEZ is a unique business park both in terms of location and infrastructure, and the subsidies received by the companies located here are a great incentive for the successful implementation of their business. In addition to having a convenient communication and access, Kaunas FEZ has also thought about other important details. For example, the arrival and departure schedules of public transport were adjusted according to the working hours of the companies,” Justas Asevičius, the director of Peraltis, notes.

Considering the company’s growth, the owners are already thinking about further development, the possibilities of which will be discussed with the team of the company that manages Kaunas FEZ. In 2019, with increasing number of orders, Peraltis extended production from one to two shifts and this year plans to start working in three shifts.

From Kaunas – to the whole world

Meanwhile, when Kaunas company ABC Farma was looking for a place to build their new modern medicine warehouse and office, they had their eyes on Kaunas FEZ because of its strategic location which is especially important for the logistics company: near the Lithuanian highway connecting the three largest Lithuanian cities with well-developed internal infrastructure and connections. “After all, we are located in Kaunas, but we provide services to partners from all over the world,” the company’s representatives say.

ABC Farma is a pharmaceutical wholesale company providing a wide range of warehousing and logistics services that meet the highest standards, as well as transportation services for pharmaceuticals and radioactive products.

In two years, the company built a 4,000 m2 warehouse where not only high-tech equipment was installed but also special attention was paid to the quality of working conditions of employees.

Currently, the company has 22 employees, 6 of them are pharmaceutical specialists with higher education degree in pharmacology, as well as managers, warehousemen/forwarding agents, etc. They were provided with a comfortable office, fully separated storage and ramp areas, as well as staff rooms – from changing rooms and showers (thus encouraging employees to come to work by bicycle) to cozy rest and dining areas.

The small businesses evaluate the advantages of FEZ

From production to logistics: small business discovers the appeal of Kaunas FEZ and makes excellent use of these advantages by increasing its competitiveness and operational efficiency.

“Currently we have 18 small and medium-sized enterprises in Kaunas FEZ, which are engaged in commercial activities. Some of them are not only operating successfully but are also thinking about or already planning development. And we, in return, are doing our best to keep Kaunas FEZ attractive for businesses of various sizes and specializations, valuing speed, quality, and carefully considered infrastructural solutions,” Vytautas Petružis, the head of the company that manages Kaunas FEZ, says.

During the last year and a half, 5 new companies have invested in Kaunas FEZ, 5 more companies have announced or implemented development. Since its inception, Kaunas FEZ kas already attracted over 780 million foreign direct investment (FDI).

Source: Kaunas FEZ, agency "Not Perfect".

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