However, Lithuania has its advantages, notably the geographical location and membership in the EU. Costs may be reduced, and the availability of skilled labor is great.
However, there are often many questions regarding a foreign establishment in Lithuania.
I have been in contact with Linas Stankus, which is one of the owners of Taurage Industrial Park in Lithuania. An industrial park with a great concept, which is the future business model, a business model taking market shares as it minimizes most of the risks related to start-ups.
The Owners' family behind the Taurage Industrial Park development and progressTo establish abroad often requires a lot of work and issues arise along the way. Should you send employees from your company or hire local staff in the new country?
Linas says that most companies employ staff locally, and that only a few companies have chosen other options for their management positions. There are advantages with local staff since they have knowledge and experience in the local market.
But of course, personnel from the parent company are represented during the start-up phase, which may differ in amount of time depending on the product.
The main reasons to why companies establish abroad are cost-related. Some markets are of course less expensive than others. At Taurage Industrial Park, industrial or warehouse premises with detailed infrastructure cost between 2-4 Euro per square meter per month.
This is a favorable price compared to many other countries. It should be mentioned that the Swedish industrial company Trelleborg has production at Taurage industrial park in Lithuania.
What also is attractive to investors is the ability to be supported by EU grants. 6,700 Euros are granted to Lithuania during the period 2007-2013. Acquisition of technological innovations, implementations of quality systems, recruitment and training of staff and many other activities can be financed by the EU grant.
Many Swedish and other foreign companies choose to establish production in China. But there are advantages in Lithuania.
Linas says that their current customers state that the efficiency and quality is better in Taurage Industrial Park and that it is only a 1-2 days delivery time for products to other countries in Europe.
In addition to various quality measures that seem better, it is an advantage to keep production within the EU's borders and regulatory framework. Over time, this can save you money and time since the EU rules are increasingly harmonized between all EU countries.
Cecilia Helland