YIT to develop REHAU’s production facility at Klaipeda FEZ

With this step REHAU is expanding its presence in the Baltic States.

“REHAU was considering a number of locations for its new facility across the CEE region before settling on Klaipeda. Klaipeda FEZ is an attractive location and the strong pool of qualified talent and their professional attitude and work ethic was a major factor in REHAU’s decision, as was the strong cost to quality ratio. In key fields, Lithuania remains highly cost competitive for manufacturers, yet it also boasts some of the most streamlined and business-friendly conditions in the EU,” says Dr. Roger Schönborn, Head of Division Building Solutions.

So early this year, REHAU and Klaipeda FEZ announced an intention to develop a production facility that opened doors to international tender to select an experienced company that would finance, build and rent the production unit to the German polymer company. Such setup was agreed and chosen by REHAU and the FEZ management company to both minimize risks and speed up the launch processes.

Now, after having received more than 10 offers from and beyond Lithuania, both companies selected YIT, a Finnish real estate developer with a strong presence in Lithuania, as the investor in REHAU’s project. Consequently, YIT will both finance and use its Lithuanian construction arm to build the facility that will be rented by REHAU following a contract signed this week. Also, as the Klaipeda FEZ management company has been working on various construction preparation processes over the course of the year, the actual construction will start in the matter of several weeks.

Eimantas Kiudulas, the CEO of Klaipeda FEZ, says that this unique cooperation model has already proven of major value to all parties involved.

"We have always celebrated the speed of launch as our major differentiator. REHAU chose us quoting our promise to deliver on tight deadlines among core reasons and we are happy that our novel and flexible approach helps us achieve the desired results. We started to develop the technical project on our own once we announced this initiative, thus shaving off several previous quarters from the due date. We also admire that the trust in REHAU's brand, coupled with our own solid presence in Lithuania, resulted in major international interest in the tender in spite of the Covid restrictions," E. Kiudulas said.

Even though REHAU will eventually be a YIT’s tenant, the company will still benefit from the official FEZ investor status, as well as from the unparalleled infrastructure, location and ecosystem at the Klaipeda free zone.

“The arrival of an international investor such as REHAU not only proves the growth potential of the Klaipėda region, but is also an evaluation of the local specialists. YIT Lietuva applies the Build-to-Suit model for the implementation of this project: the client is given the opportunity to rent premises that are specially designed, built and adapted to his individual needs. In this way, the client avoids the adaptation of standard premises and the related additional costs. This model of real estate project development is becoming more and more popular, especially among the companies engaged in the specific activities for which standardised premises are not suitable.  In these cases, Build-to-Suit projects are the only rational solution. We appreciate the trust and the opportunity to implement a modern project that meets the requirements of REHAU,” says Kęstutis Vanagas, YIT Lietuva CEO.

The new production unit in Klaipeda will be part of REHAU’s Building Solutions division, which manufactures a range of polymer products including piping, fittings and polymer solutions for telecommunications. The output from REHAU’s Klaipeda unit will mainly be going to wholesalers, telecommunications companies, and municipalities in countries across Europe. REHAU will be looking for a wide range of specialists for its Klaipeda operations, including managers, engineers and technicians, mechanics and electricians, administrative staff, machine operatives and warehouse staff.