Industrial parks in Lithuania: Šiauliai, Alytus

Lithuania is a small country with limited possibilities for development and growing. It is a country of North Europe on a shore of Baltic sea with estimated population of 3,4 millions. Lithuania is called Eastern Europe country because of the latest historical events. In 1990 the independence of Lithuania was restored and over that period about 20 logistics and industrial parks have been developed or started to create. The main purpose of these industrial parks is to attract green-field investments to Lithuanian market, create new workplaces and develop high-tech industries.

The country’s welfare usually relates to the equal development of all its regions. If the regional policy is working, investments should reach even the outmost regions of the country. But Lithuania is one of the most centralized countries of the EU.  Regional strategy tends to allocate the investments to the largest cities and richest regions turning them even wealthier, not being able of keeping problematic regions out from their underdevelopment. Because of this, the government is trying create industrial parks in those regions which are more remote from main cities and investment places of the country as a solution to this problem.

Now there are nine industrial parks in Lithuania. They cover about 600 hectares. These parks are controlled by local governments. Their development, utilities, building of communication system, improving infrastructure should be included in every region policy and all operators should manage industrial parks by themselves because it is important if they want to attract investors.

The biggest industrial parks are in Alytus, Šiauliai, Panevėžys and Kėdainiai. All parks have different size and conditions but they are less than 200 kilometers away from Vilnius airport and all of them are near main roads. Investors can choose the industrial park and region which is the best for them meaning better logistics, partners’ location and infrastructure. Every year conditions in these parks are being improved. Šiauliai and Kėdainiai infrastructure was built in 2009.  In 2010 Alytus and Panevėžys started big constructions in the cities to improve roads and communication. Main requirements for new investor are just two, in 2010 government reduced them because of the crisis.

During last two years a lot of money has been invested in Šiauliai and Alytus industrial parks. Almost 18.9 million LTL were given by the European Regional Development Fund and the local government took the loan from a bank to fulfill the left needed amount. In total it was 36,3 million LTL invested in infrastructure of Šiauliai industry park. During the economic stagnation Šiauliai did not find any investors and the local municipality decided to start the second level of park development. In 2010 they made a strategy for expanding the parks territory for new companies. For this project Šiauliai region needs 70 million LTL from European Union Structural Funds, region and state budget. Finally, in the beginning of 2011 Šiauliai industry park signed two agreements with two big companies: Saldos prekyba and Lietmeta, which are ready to build new factories in Šiauliai region. According the Head of the Investment and Urban Development Division of Šiauliai Municipality Aistė Žalevičienė more six discussions are being held during this year. Šiauliai is expecting to get at least 3 more projects.

Constructions work full speed in Alytus as well. Industrial park in Alytus covers 45 hectares. Alytus is the sixth biggest city in Lithuania. It has always been famous for industry. Alytus was made industrial centre in the soviet times. But the industrial traditions in this region are old and industry declined but experience, qualification of inhabitants left. Because of this municipality made a project for new roads and infrastructure. Alytus got over 19 million LTL from European Union Structural fund to make this project real. In Alytus industrial could be interested those companies which are exporting their products to Belarus or Poland, because Alytus is located less than 60 kilometers from the borders. Recently one meat company invested in building a canned meat factory in 1,65 hectare territory in Alytus, which will create a lot of new workplaces and will bring new investments in the region. Also one Lithuanian company decided to prepare the 2,4 hectares territory for the demonstration of a modern houses creation in Lithuania.

Nowadays more remote regions need investments badly especially to help to solve the unemployment problem. Industrial parks are an important part of regional policy. Lithuania’s government is trying to deal with centralization problem and pay more attention to remote regions development. But in Lithuania still we can see enormous differences: in Vilnius (capital city of Lithuania) and in Alytus (situated in South of Lithuania) standard of living is different by 5 times. Regional policy experts say that to solve this problem Lithuania should encourage new investment. One of the ideas how to attract new investors is to give free economic zone status to industrial parks which are now controlled by municipalities. Extended favorable conditions for businesses more aggressive presentation of Lithuania to foreign markets and finding the right segment would grant a define success.

Brigita Saikeviciute


[artigo de opinião produzido no âmbito da unidade curricular “Economia Regional” do 3º ano do curso de Economia (1º ciclo) da EEG/UMinho]