German automotive industry company Continental plans to invest 95 million euros (1.1 billon U.S. dollars) and create around 1,000 jobs in Lithuania in the largest green field investment project in Lithuanian history, Lithuania's investment promotion agency announced Monday.
A green field investment is a form of foreign direct investment where a parent company builds operation in a foreign country from scratch.
Continental is to build a new manufacturing plant in Central Lithuania to expand automotive electronics production in Europe. The plant is to manufacture door and seat control units, gateways, intelligent glass control units, radar sensors for adaptive cruise control and emergency braking assistance systems.
"Building the first Continental plant in Lithuania is an important part of our growth strategy in Europe," senior vice president at Continental Hans-Jurgen Braun said in a press release.
The investment of 95 million euros is the largest of its kind for the small Baltic country with a population of less than 3 million.
Lithuanian Prime Minister Saulius Skvernelis said such manufacturing investment would "have a tremendously positive impact on this industry in Lithuania. Continental is bringing the biggest green field investment project in the Lithuanian history."
The German automotive company is to make the investment in the next five years.