Lithuania. GDP growth 2.4% [1] Inflation 1.9% [1] 4 th lowest profit taxes in the EU [2]

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Rosalyn Carpenter
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1 KELMĖ REGION

2 GDP growth 2.4% [1] Inflation 1.9% [1] 4 th lowest profit taxes in the EU [2] Lithuania #1 for industry-university collaboration in the CEE region [3] #2 most favourable country for investment in Europe and #16 in the World [4] 1 st in the CEE for quality of roads [5] Source 1: Ministry of Finance, 2016 Source 2: KPMG, 2016 / BNP Paribas European Office Market, 2016 Source 3: European Commission, 2013 / WEF Global Competitiveness Report Source 4: Foreign Policy s Baseline Profitability Index 2015/ Centre of Registers, 2015 Source 5: FTTH Council, 2015 / WEF Global Competitiveness Report

3 Kelmė region Kelmė municipality is situated in Central Lithuania, in the county of Šiauliai. Population 28,661 Labour pool 17,322 Source: Statistics Lithuania, 2016

4 Effective transport chain Maximizing rail, sea, land and air links Rail Seaports Roads International Airports

5 Rail Tytuvėnai railway station, which is 20 min from Kelmė connects with Kaunas one of the key rail distribution hubs in the Baltic States. Cargo freights: Saulė Runs from China to Belgium. Delivery time from Almaty (KZ) to Kaunas is 8 days. Vikingas Connects the Baltic and Black seas, offering up to 30% reduction on logistics costs compared to road transport. More at Source: Lithuanian Railways, 2016

6 Seaports Kelmė is less than hour and a half drive from Klaipėda Seaport, which is the most northern ice free port in Europe. Cargo handled in 2016 Klaipėda m tons Riga m tons Source 1: Port of Klaipėda, 2016 Source 2: Freeport of Riga, 2016

7 Roads E77 connects Kelmė to A1 (E85) highway, which connects biggest Lithuanian cities. A1 connects with the Via Baltica highway, which links Eastern Europe with Western Europe and Scandinavia.

8 International Airports Passengers carried in 2016: Vilnius International Airport 3,814,001 [1] Kaunas International Airport 740,448 [1] Riga International Airport 5,400,243 [2] Cargo carried in 2016: Šiauliai International Cargo Airport 2,665 tons [1] Source 1: Lithuanian Airports, 2016 Source 2: Riga International Airport, 2016

9 Foreign Direct Investment (FDI) 4673 EUR of FDI per capita FDI in Kelmė region ( EUR per capita) Source: Statistics Lithuania, 2016

10 Skilled workforce and attractive labour cost 17,322 Working-age people 71% speak at least one foreign language 14,6% Seeking employment 58% speak Russian 22% speak English 13% speak German Source 1: Statistics Lithuania, 2016 Source 2: Lithuanian Labour Exchange, 2017

11 Attractive labour cost Kelmė boasts a pool of highly skilled and competitive professionals, making it a sustainable location for business growth. Monthly average gross salary (EUR) , ,1 Lithuania Vilnius Šiauliai Kelmė Source: Statistics Lithuania, 2016

students 27% studying engineering Gives both young people and adults the opportunity to gain

12 Qualification and competences. Vocational education Kelmė Vocational Training Center Located in Kelmė and Tytuvėnai 548 students 27% studying engineering Gives both young people and adults the opportunity to gain new skills and knowledge Provides training and retraining, and opens up new professions Helps improve professional skills Source: Statistics Lithuania,

13 Talent pool close to Kelmė Region Within 1 hour you can reach: Šiauliai city 1 university, 3 colleges and 1 vocational school Over 2,000 students studying engineering, manufacturing and construction programs Source: Statistics Lithuania,

14 Business friendly environment Ease of starting Business / World ranking 11th [1] Ease of doing business / World ranking 24th [1] Time for establishing a business 3 days [2] VAT 21% [2] Personal income tax 15% [2] Social security tax paid by employer 30.98% [3] 15% corporate tax rate 4 th lowest corporate tax in EU [2,4] Real Estate tax 0-1% [5] Land lease tax for commercial areas 0-1.5% [5] Source 1: Forbes, 2014 Source 2: State Tax Inspectorate Under the Ministry of Finance of the Republic of Lithuania, 2014 Source 3: State Social Insurance Fund Board of the Republic of Lithuania under the Ministry of Social Security and Labour Source 4: KPMG, 2014 Source 5: Kelmė Region Municipality, 2015

15 The city s greatest asset is its experienced workers specialised in: Electro Electronics Metal proccesing Furniture production Other manufacturing skills

16 Operating foreign companies in Lithuania

17 ROL Group The Swedish group ROL Group has opened a factory for the production of metal components.it was invested almost 8 million Eur. ROL / Statga has almost tripled turnover over the four years, and the export geography now includes not only traditional Western European but also new markets in the US, Canada and China.

A place to visit, enjoy, discover and invest in The respendent St.

Lithuanian architecture, but also within all North-Eastern European art.

surroundings, encompassing the beautiful Dubysa and Venta rivers, calm glistening lakes and more than

18 A place to visit, enjoy, discover and invest in The respendent St. Virgin Mary church and Bernardine monastery in Tytuvėnai is unique not only in the context of Lithuanian architecture, but also within all North-Eastern European art. Situated alongside the old merchant road Via Hansa, Kelmė offers a rich diversity of natural surroundings, encompassing the beautiful Dubysa and Venta rivers, calm glistening lakes and more than 400 cultural heritage sites. While for the more adventurous and sporty types there are a number of bike trails on offer, giving you a more dynamic way to witness this fascinating landscape.

19 EU structural fund support measure SMART FDI Requirements for applicants and projects: Applicants: private legal persons (foreign investors or branches of foreign companies). Private legal person or branch registered in Lithuania must be established before the project financing contract is signed.

20 Objective: Attraction of foreign direct investment (FDI) to Lithuania for applied research and experimental development (R&D).

21 Duration Duration of the project implementation: - 24 months 1st and 3rd financed activities; - 36 months 2nd financed activity. The project may start only after submitting the project application (all risks are borne by project prosecutor before the project financing contract is signed).

22 Location: The project must be implemented in the area of the Republic of Lithuania.

23 Partners A very small, small or medium enterprise must be involved for the third activity, if the applicant is a large enterprise.

24 Supported activities and budget Total call budget: EUR 39 million Financed activities: 1. Applied research and experimental development 2. Initial company investment in the creation or development of existing R&D infrastructure (including a pilot line) 3. Activities related to the introduction of processes and organisational innovation

25 Support budget Support per project: MIN EUR : all financed activities MAX: 1st activity EUR nd activity EUR rd activity EUR

26 Support intensity Support intensity (MAX financed by EU structural funds): - 1st financed activity: Big, medium, very small and small enterprise * 15 % included for cooperation with science and knowledge organizations or for publication of project results

27 2nd financed activity: Big enterprise 25 %; Medium enterprise 35 %; Very small and small enterprise 45%;

28 3rd financed activity: Big enterprise 15 % Very small, small, medium enterprises 50%

29 Investor must have invested into production or services in Lithuania previously (during last 10 years until submission of application) or Requirements for investors - Investor has never performed any activities in Lithuania

30 Deadline 2020 November 30th (ongoing competition until budget of the measure is maxed out)

31 EU structural fund support Regio Invest LT+ No. 2 Requirements for applicants and projects: Applicants: Small, very small and medium enterprises (SME): production enterprises that produce new production capacity and service enterprises that create new service capacity.

32 Objective To encourage SME`s investment into innovative production and (or) innovative service by establishing new enterprises (or developing current). This will allow the growth of labour productivity, increase the pace of development of regions in Lithuania and will encourage the growth of regional economy.

33 Duration Duration of project implementation - no longer than 36 months since contract signing day.

34 Location Territory of Republic of Lithuania, excluding city and region municipalities of Vilnius, Kaunas and Klaipeda.

35 Partners No partners allowed.

36 Supported activities Implementation of modern technology by adjusting existing and creating new production and service delivery by producing new and existing products and services. Support is intended to encourage the investment of enterprises in: purchasing and implementing new production technology lines; modernising currently existing production technology lines; installation of internal engineering network, required for implementing new production technology lines or for modernising currently existing lines; implementation of modern and effective technology in services sector.

37 Support budget and intensity Total budget: 9,6 MM Eur MAX support per project Eur MAX support intensity: Very small and small enterprises- 45 proc.; Medium enterprises- 35 proc..

38 Expenditure Applicable expenses: 1. new building, current building reconstruction or capital maintenance costs, local infrastructure costs (required for new technological line implementation (or new modernization) not more than 30 % of total applicable expenses; property must be owned by applicant; 2. equipment and other long term assets and equipment financial leasing expenses; 3. employees (who will work with newly installed modern technologies) salaries; (additional conditions apply); 4. employees training on working with newly implemented modern technologies; 5. Vehicle leasing expenses, required for implementing project activities employees (who are working with modern technology) transportation to and from work.

39 Requirements for applicants 1. Business plan and business financial plan (according to recommendations of LVPA); 2. If building, reconstruction or capital maintenance costs are included in application costs full extent of building technical project must be provided.

40 Deadline 2017 m. November

Strategic planning and investment departament of Kelmė District Municipality Lina Samulyte Mob: +370

41 Strategic planning and investment departament of Kelmė District Municipality Lina Samulyte Mob: Vytauto Didžiojo str. 58 LT Kelmė Lithuania

42 Thank you for your attention!

We speak fluent business JULY 2018

We speak fluent business JULY 2018 Facts & figures 1st in EU for GDP per capita growth since 2000 1 GDP growth: in 2016 2 : 2.3% in 2017 2 : 3.9% In 2018 3 : 3.1% Population 2 Labour Pool 2 2.8 million