Industrial production growth in Lithuania, except for refined oil products, remains rather robust. In November 2013, industrial production decreased by 2.7 per cent as compared with November 2012.
Excluding refined oil products, production increased by 6.1 per cent in real terms. Production of pharmaceuticals went up by 156.7 per cent, paper products by 36.2 per cent, transport vehicles by 28.1 per cent, wood products by 27.1 per cent, clothing by 8.5 per cent, construction materials by 7.6 per cent, furniture by 13.9 per cent, rubber and plastics by 0.7 per cent, beverages by 4.0 per cent, machinery and equipment by 28.0 per cent. On the other hand, production of food products decreased by 1.2 per cent, refined oil products by 23.1 per cent and chemical products by 6.8 per cent.
In January–November 2013, manufacturing production was up by 5.0 per cent at constant prices. Despite deceleration of industrial growth over the course of the year, industry does not face fundamental difficulties. Instead, most of the challenges are related to weak growth in both Western and Eastern export markets and high statistical base. Furthermore, with capacity utilization lingering at all-time peak level, further production expansion requires more investment.
Kaunas Free Economic Zone (FEZ) has reported its ambitious plans with largest construction volumes planned in the region. Firstly, there are plans of establishing airpark, bordering with Kaunas International Airport, which would be convenient for transport, aircraft service and aviation industry companies. Kaunas FEZ has already attracted LTL 1.2 billion of investment from 18 companies, of which 70 per cent are foreign direct investment. There are 7 companies operating at Kaunas FEZ and 3 companies are under construction. The companies that intend to invest in Kaunas FEZ include companies of production of straw pellets, thermal insulation boards, automatic doors, fish processing and production of synthetic sapphires.
Source: SEB Bank