Brexit undermines massive investment plans in Lithuania

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The lack of clarity with Brexit processes has halted millions-worth investment plans in Alytus, a city in Lithuania’s southern parts, Lithuanian public media LRTreports.

British company Sofa Brands, which manufactures furniture upholstery, had plans to build a plant in Alytus Industrial Park. The planned investments were estimated around five million euros.

However, Lithuanian banks have refused to finance the British company’s expansion plans, pointing towards the uncertainty that surrounds UK’s exit from the European Union.

«There’s Brexit and financial institutions see more risks, which affects interests rates and other conditions for financing,» says Sofa Brands director Saulius Bitinas.
He adds that the company itself has come to reconsider its expansion plans, considering that Brexit has impacted production output. The company may postpone its development plans for a couple of years, at least until the situation on the market has become clearer.

Alytus municipal administration had previously tried developing the four hectare area in the industrial park. There was even an offer of subsidies worth EUR 200 000 to anyone interested to develop a company there.

«Investors do not need a swamp with bushes, they need a plot with access, communications, so that they are able to build at once,» says Alytus Mayor Nerijus Ciesulis.

There are currently six companies active at Alytus Industrial Park. Together they have invested EUR 37 million and have created more than 200 jobs.

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