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Lithuania demonstrates highest production volume in EU for second consecutive month
 
Lithuania’s competitive advantage in manufacturing is enabling companies to expand their production here.
 
KB Components, a manufacturer of plastic parts for light and heavy vehicles and medical and industrial applications by way of injection moulding, with both automatic and manual assembly, is planning to build a new production line in Lithuania.
 
The company intends to expand its operations and introduce more advanced technologies in order to meet the demands of its customers and expand in Western European markets.
 
The company will allocate about EUR 1.2 million for modernization, an investment that will provide jobs for additional 50 employees in Lithuania. 
 
“Lithuania is well situated from a logistical point of view, and we can deliver our products quickly to neighbouring markets. We also value the quality of the local specialists, whose skills are up to the task of manufacturing complex parts or components for demanding customer applications,” said Lars Holtskog, President and CEO of KB Components. 
 
“Lithuania is receiving a wave of investments into new, complicated manufacturing technologies that require highly qualified specialists. This will have a direct influence on growth in this sector, which has been faster here than in any other EU country”, says Milda Dargužaitė, Managing Director of Invest Lithuania. “Moreover, by expanding their production in Lithuania, foreign companies are giving Lithuania access to new markets and new clients, some of the most prestigious European companies among them.” 
 
According to the latest data of Eurostat released in November 2012, industrial production in the European Union fell by 3.7 per cent compared to the same period of the last year.
 
Meanwhile, Lithuania has demonstrated an extremely fast growth in industrial production (+8.9 per cent). In this respect, Lithuania has been ahead of all the other EU states for two months in a row, leaving Italy (-7.6 per cent), Spain (-7.2 per cent), Ireland (-6.6 per cent) and other developed countries far behind.
 
Last year, Bio-chem Cleantec, a German company of white biotechnologies, invested in a new manufacturing subsidiary in Elektrėnai. The company will produce surface care products for the heavy industry, e.g. for the protection of surfaces in railway, air transport and other industrial infrastructure. Kitron, a Norwegian manufacturer of electronic components, is planning to continue to increase its production volumes. 
 
Foreign investment in manufacturing makes up to one-fourth of all foreign investment in Lithuania.