Germany is investing in Kaunas: between achievements and opportunities
Paskelbta: 2019-09-25 (Wednesday)
Germany – one of the biggest and most important countries in terms of investing into Kaunas. During “German days” in Kaunas, a forum called “Lipe Region and Kaunas: Business Relations and Future Opportunities” discussed the challenges and opportunities for Kaunas companies that come with working with German capital organizations.
At the moment, German capital investment is in the forefront in terms of foreign investment in Kaunas, with 23% of all foreign investment, beating out the Netherlands (22%) and Finland (19%). 2017 is considered the most successful year in recent memory, as German companies such as “Continental” and “Hella” were drawn to invest and expand in the city of Kaunas.
Not only in Kaunas, but also in Lithuania as a whole, Germany is one of the main markets, that ties are constantly growing with. 2018 Germany is ranked third in terms of foreign direct investment in Lithuania, and the country is the most important market for Lithuanian exports.
The elder and giant settlers supporting the city
According to Andrius Veršinskas, Chief Project Manager of “Kaunas IN” Business Division, German businesses investing in Kaunas is mainly focused on industry, manufacturing, and it is not surprising: Kaunas is the leader in Lithuania in the field of engineering and industrial industry. As one of the most striking examples, he mentions “Festo”, a German-owned company operating in the field of industrial automation for almost three decades.
“We have noticed that German capital companies which have been operating in Kaunas for a long time associate their success with the city and the opportunities it offers. They feel part of the city and actively show support for Kaunas, as well as the growth stories of these companies that succeed and inspire other German investors.” “Moreover, large companies such as “Continental” and “Hella” naturally attract potential subcontractors and subcontractors, which gives the entire local market credibility and legitimacy.”
From Kaunas to Germany and the whole World
The German-Baltic Chamber of Commerce organized a business forum “Lipe Region and Kaunas: Business Relations and Future Opportunities” together with Public Institution “Kaunas IN” and Kaunas City Municipality: as part of the German Days program in Kaunas thirty years of county cooperation. For the first time, the forum was organized in two directions: both about German investors coming to Kaunas – their attitude, experience, success stories, as well as Lithuanian businesses cooperating and trading with Germany.
According to Tadas Četkauskas, the Business Development Manager of NFQ Technologies, a German capital innovation company that has been operating in Lithuania for 17 years and currently one of the largest software service providers in Kaunas: “Relations with Germany are very important to us and our business model is export oriented, with more than 90% of income coming form it. And the industry of Germany being our No. 1 market”
Meanwhile, Antanas Vizgaitis, the director of “Selteka” – a firm that works closely with the German market, said that decades of experience with the Germans has taught them a key lesson: “If we don’t think about efficiency and productivity, we will be forced to repeat failure stories.”
Speaking about the peculiarities of working in the German market, A. Vizgaitis mentioned the German accuracy that fascinated him: “How to make useful business contacts in Germany? In our experience, personal contacts and meetings are the most important, the second would be business contact with organizations, and the third are business exhibitions.”
Information prepared by Public Institution “Kaunas In”