An advisor to Lithuanian President Dalia Grybauskaitė says the size of the Lithuanian market and shortage of specialists are probably the reasons behind Coca-Cola's decision to close its plant in the country.
© AP/Scanpix

"One of the most prominent factors is the market factor. Companies optimize their operations and look at where to manufacture their products in the region for the local market. No doubt, Poland has a competitive edge over us in this respect," Mindaugas Lingė said on Žinių Radijas on Tuesday.

The American soft drinks manufacturer announced last week that it was closing its plant in Alytus, southern Lithuania, by late November. About 80 employees of the factory are losing their jobs.

"Another thing is that investors look for highly specialized workforce and if there is a lack of these specialists in the market, this is a factor for withdrawing," he said.

The presidential advisor does not link Coca-Cola's decision to Lithuania's failure to adopt a new Labour Code, noting that the soft drinks manufacturer moved production from Estonia in 2010, a year after the country liberalized labour relations.

"We are talking about a complex [of reasons] and this is a signal and a bell for Lithuania, the government and its policies," he added.

Earlier this year, Estrella Baltics, a potato chips producer owned by Intersnack Group, and Suslavičius-Felix, a Lithuanian sauce and ketchup maker that is part of the Norwegian-owned Orkla Group, also announced their plans to pull out of Lithuania.

It is prohibited to copy and republish the text of this publication without a written permission from UAB „BNS“.
Leave a comment
Commenting is allowed for registered users only!
By posting, you agree to terms
Read comments Read comments

Internet connection in Lithuania – one of the cheapest in the European Union

According to the study of the European Commission , Lithuania is among four Member States of the...

Icelandic payment entrepreneurs establish HQ in Vilnius

Paystra, a fintech company founded and financed by Icelandic payments experts, providing payment...

Food prices to be announced on official website in Lithuania: ministry

Prices of main food products in five largest Lithuania's retail chains will be regularly announced on...

Retirement pension rises 7%

With January arriving, pensioners will see an increase to their pensions. Some of them will have their...

Targeting the informal economy in markets, construction sector and wage payments

The government has taken aim at the informal economy, just as many prior to it has. This time, the...