Europe moves to bring industry back: Klaipėda FEZ sees new opportunities for regional growth

Europe is preparing for one of its most significant economic policy shifts in decades – an effort to reclaim a portion of the industrial and manufacturing capacities that have relocated to Asian countries over recent years. The European Commission is drafting a legislative package to stimulate manufacturing within the European Union.

Experts estimate that these changes could open up new opportunities for Lithuanian regions, particularly for territories that already possess a strong industrial and investment ecosystem. Capitalizing on this opportunity will require not only business investments but also active cooperation between the state, local municipalities, and regions.

These trends were discussed during a debate held at the Klaipėda Free Economic Zone (FEZ). Vice-Minister of Economy and Innovation Paulius Petrauskas, who attended the event, emphasized the importance of Lithuania’s readiness for new industrial development opportunities, which were presented to businesses by Tomas Garuolis, Head of the Industry Policy Division at the Ministry of Economy and Innovation. Representatives from local businesses and the Klaipėda Municipality also joined the discussion.

“Lithuania has a real opportunity to showcase its strengths during the upcoming Lithuanian Presidency of the Council of the European Union. However, we must start preparing now by strengthening ecosystems, ensuring a proper legal environment, and fully exploiting the potential of Lithuanian industry. Through targeted efforts, we can achieve a breakthrough and build a stronger foundation for long-term economic growth,” says Vice-Minister of Economy and Innovation Paulius Petrauskas.

Europe changes course

According to T. Garuolis, Europe currently faces a serious challenge: over the past decades, a significant portion of manufacturing was relocated to third countries, primarily China and other Asian regions.

“Europe is losing part of its capacity in manufacturing, chemicals, metals, and other industrial sectors. This is no longer just an economic issue – it is becoming a strategic question of European competitiveness and security,” says T. Garuolis.

According to him, the European Commission is already drafting a legislative package aimed at creating the right conditions for manufacturing to return to Europe. Most of these initiatives are expected to be adopted in 2027. It is emphasized that a portion of future funding will be directed toward purchasing products made in Europe. Therefore, states and regions must prepare in advance.

“For Lithuania, this opens up opportunities to become one of the locations where this manufacturing could establish itself and expand,” states the ministry representative.

A new role for regions and FEZs

According to the ministry representative, European industrial policy is increasingly focusing on decarbonized, sustainable manufacturing and advanced technologies. This is precisely why free economic zones can become some of the most critical arenas for this transformation.

“We are talking about industrial and green industrial zones, where product demand will be further stimulated within the European Union in the future. The Klaipėda FEZ is already advanced in this area, but it is worth emphasizing that this is an opportunity for the whole of Lithuania,” says T. Garuolis.

According to him, the state’s task today is to help businesses identify the directions that align with the European industrial strategy and where the highest value-added will be created in the future.

Eimantas Kiudulas, CEO of the Klaipėda FEZ, also emphasized the role of free zones in bringing back traditional industry and attracting next-generation manufacturing. According to him, businesses are increasingly looking not just for infrastructure or vacant plots, but for functional ecosystems – companies already specializing in a certain field, talent, and academic communities.

“We already have multiple examples where new investors chose the Klaipėda FEZ because of the long-standing companies already operating here, potential partners, and the specific specializations of the local labor market and educational institutions. I am glad that Europe understands the strategic importance of manufacturing, and Lithuania’s obvious track record in advanced and sustainable industries provides a strong foundation to expect that we will definitely seize these new opportunities,” says E. Kiudulas.

Investment begins with cooperation

According to I. Butenienė, Head of the Strategic Planning Division of Klaipėda Municipality, closer cooperation between state institutions, municipalities, and businesses is one of the most critical factors in seizing these emerging opportunities.

“Wherever industry and investment arrive, jobs and residents follow, the economy grows, and smaller businesses develop. This is the foundational basis for regional growth,” says I. Butenienė.

According to her, regions still lack information regarding the state’s investment attraction policy and ways to get more actively involved in its implementation.

“We would like to see closer cooperation between institutions. The better the regions understand national priorities and future directions, the better they can prepare for new opportunities,” states the municipality representative.

The fight for investment is a fight for people

I. Butenienė points out that attracting investment is important for regions not only in an economic sense.

“Regions today are competing for people. To retain young specialists and families, it is essential to create jobs, attract investors, and ensure a high-quality living environment,” she says.

According to the speaker, the role of municipalities in this area is very concrete – ranging from engineering infrastructure to public transport, educational institutions, and other solutions that allow businesses to set up and expand.

“When an investor arrives in a region, they create jobs, attract residents, and stimulate the growth of other businesses. This is how the entire municipality develops,” emphasizes I. Butenienė.