Economy

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Respublikos g. 38, 35173 Panevėžys, tel. 8 45 505700, faksas 8 45 465517, kodas 188607727, el.paštas: pan.apskritis@panevezys.aps.gov.lt

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INDUSTRY

Average annual amount of manufactured and sold products in 228 companies of Panevėžys County was 579 million Euros.

61 %, i.e. the greatest amount of the County output is produced in the City of Panevėžys, which has more than a half (55 %) of all regional companies.

SOLD INDUSTRIAL OUTPUT BASED ON THE ACTIVITIES

The following industries prevail in Panevėžys region: foodstuff and beverage, electronics, glass, timber processing, textile, apparel sewing, electrical equipment and appliances:

The Largest Companies of Panevėžys County for their Sales of 3 quarters of 2004

Company	Major Activities	Sales and Services, million EUR
Ekranas , AB	Production of colour TV picture tubes	105.7
Rokiškio sūris, AB	Production of dairy products	91.2
Danisco sugar Panevėžys , AB	Sugar industry	36.7
Kalnapilio Tauro grupė, AB	Brewery	30.8
Panevėžio statybos trestas, AB	Construction	28.9
Panevėžio keliai, AB	Construction of roads & bridges	27.2
Panevėžio pienas, AB	Production of dairy products	20.9
Panevėžio energija, AB	Steam and hot water supply	17.6
Linas , AB	Production of textile goods	15.7
Ochoco Lumber, UAB	Timber processing	21,6

BUSINESS

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26 thousand companies were registered in Panevėžys County since the Lithuanian regain of independence. Market competition influenced the shut down of of a certain number of companies. 40 legal entities were estimated for 1 000 inhabitants and 5 999 companies were in operation at the beginning of 2005, what made up 8.3 % of all Lithuanian operating legal entities.

Private and joint stock companies make up 95 %. The establishment and promotion of small and medium-sized companies is the basis for the regional economical development.

Small and medium-sized trade companies and the ones providing services prevail in the region.

Trade companies make up half of the regional ones.

The entrepreneurship coefficient of Panevėžys City is above these of Panevėžys County and the whole country.

Favourable conditions for investment, establishment of new companies and businesses are created in the region. Great attention is delivered to the development of tourism and services, environment, transport and infrastructure.

You are welcome to apply to the following business information enterprises for more detailed information:

Business Training Centre of Panevėžys Institute of Kaunas University of Technology

Klaipėdos g. 3, LT- 35209 Panevėžys - (+370 45) 596105
Aukštaitija Proffessional Career Centre
Respublikos g. 34, LT- 35173 Panevėžys - (+370 45) 581256
Panevėžys Business Advisory Centre
Kranto g. 25, LT- 35172 Panevėžys - (+370 45) 465454
Panevėžys Chamber of Commerce, Industry and Crafts
Respublikos g. 34, LT- 35173 Panevėžys - (+370 45) 463687
Biržai District Business Info Centre
Rotušės g. 24B, LT- 41137 , Biržai (+370 450) 37997
Kupiškis District Business Info Centre
Gedimino g. 34-5, LT-40130, Kupiškis (+370 459) 35603
Pasvalys District Business Info Centre
Biržų g. 14B, LT-39145, Pasvalys (+370 451) 34031
Rokiškis District Business Info Centre
Respublikos g. 96, LT-42136, Rokiškis (+370 458) 31097

AGRICULTURE	Top
In 2003 agricultural land comprised 482 082 ha area or 61 % of the total area of Panevėžys County . On 1 July, 2004 it was registered 8918 farms with the average area of 15.5 ha. Agriculture is one of the most developed fields of Panevėžys County . Over 23 % of Lithuania 's grain, 12 % of sugar beets are cultivated, 16 % of cattle and 13 % of poultry are bread, and 14 % of milk is sold in the region. Non profit Public Enterprise “Tatulos programa” is active in the County. It promotes organic and sustainable farming. The program encompasses Karst phenomenal area of the Northern Lithuania and has 218 members: 189 farmers (82 - certificates of ecological farms), 15- product processing companies (2 - certificates of ecological processing), 6 agricultural companies, 1 co-operative and a vegetable sales club.

INVESTMENTS

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Panevėžys County is the fourth largest one in Lithuania regarding the amount of foreign investments. Vilnius , Klaipėda and Kaunas Counties attract more foreign investors.
Better regional investment climate and conditions and successful business development prove that partnership cooperation at Panevėžys County leads to mutually beneficial results.

FOREIGN DIRECT INVESTMENTS

At the beginning of 2005 foreign direct investments in Panevėžys County made up 210.9 m. € or 666 € per an inhabitant. It comprised 4.5 % of all foreign direct investments of Lithuania .

The largest investors are: Denmark (40 %), Poland and the United Kingdom (8 % each), Germany , USA and Norway (3.2 % each).
Panevėžys has the only Norwegian Industrial Park in Lithuania covering 14 000 sq. km area.

Investor	Country	Company	Activity
Danisco Sugar A/S	Denmark	Danisco Sugar, UAB	Sugar production
Bryggerigruppen	Denmark	Kalnapilio – Tauro grupė, AB	Brewery
Farimex S. A, Profilo Holdings	Switzerland , Turkey	Ekranas , AB	Electronics

Most of the County investments were made in the following fields:
• Processing industry (foodstuffs and beverages - 53 %, TV and communication equipment – 21 %, other non metallic mineral products – 7.9 %, vehicles, trailers, timber processing – 3 % each.
• Wholesale and retail – 3 %.
In 2004 Panevėžys City companies attracted 87 % of the County investments.

TANGIBLE INVESTMENTS

In 2003 the share of Panevėžys County tangible investments made up 165 million € what comprised 6.58 % of the Lithuanian tangible investments.

Panevėžys County was the fourth one in Lithuania according to this datum:
Tangible investments in Lithuania, 2003, mln. €
Reference: The Lithuanian Department of Statistics

Countries	2000	2001	2002	2003
Lithuania	1898	2266	2353	2513
Panevėžys	105.21	130.02	147.1	165.3

The greatest amount of tangible investments was attracted by Panevėžys City and District. The share of investments comprised 75.2 % of all tangible investments of Panevėžys County .

EASY TAX TERMS FOR INVESTORS

Local municipal law of the Republic of Lithuania gives the right to the Municipal Councils to apply easy terms of taxes, levies, etc.

Regional municipalities apply easy terms of land rent, land and real estate for their investors. Such terms are applicable to small and medium-sized entities having created new working places and having retained them for a longer period than one year. Taxes are decreased for the companies by 30 %, 50 % and 80 % depending on the number of new working places. Exact easy term is applied to the company on the decision adopted by the Municipal Council.

One can find basic information about business, investment conditions and legal basis on the website of Regional Development Agency http://www.lda.lt/guidebook.phtml

LABOUR MARKET	Top
Panevėžys County system of education, science and re-qualification meet the needs of local inhabitants and industrial development. Panevėžys labour market has highly qualified staff and the costs of labour force are lower by 10 % in comparison with the Lithuanian average. There are about 172.5 thousand able-bodied people who comprise 58.5 % of all county residents.

UNEMPLOYMENT
At the beginning of 2005 unemployment rate in the County was 7.8 %, i.e. higher by 1.8 percentage units than the Lithuanian one. The highest unemployment rate, i.e. 12.6 %, was in Pasvalys, 11.4% - in Rokiškis and 9.9 % - in Panevėžys districts. In Biržai district unemployment rate was 7.7 %, in Panevėžys City – 5.3 % and in Kupiškis district – 4.9 %.

In 2004 local labour market had decreasing demand of labour force and the number of registered unemployed. Positive economical tendencies and increased emigration have impact on the labour force. Non-qualified and with elementary education unemployed make up the greatest part of the total unemployed number. The number of the youth applicants decreases at the labour exchange market. This is due to emigration and possibilities to move to other jobs. Specialities of accounting, audit and finance, management, teachers of foreign languages, services have been of great demand lately. SALARY
In 2004 call pay was 500 Lt (144.8 EUR). In the 4 th quarter of 2004 average gross monthly salary in Lithuania was 379.4 EUR. Average gross monthly salary in Panevėžys City almost coincided with the Lithuanian one. The lowest average monthly gross salaries are in the districts of Pasvalys and Panevėžys. It made up 72 % of the Lithuanian average gross salary. Average gross monthly salary was higher in the districts of Rokiškis, Kupiškis and Biržai. In 2003 it made up 80 % of the Lithuanian one.

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