Plunge district municipality and the territories which surround it
Plunge district is situated in the northern part of Lithuania in the Telsiai district. There is one city in the district (Plunge), 4 small towns (Asledziai, Kuliai, Plateliai and Zemaiciu Kalvarija). Plunge district is encircled with Mazeikiai, Telsiai, Skuodas, Kretinga, Klaipeda districts and the Rietavo municipality.
Plunge district is home to one of the greatest natural treasures that Lithuania possesses – the Zemaitijos National Park (hereinafter ZNP). The deepest and largest lake in Zemaitija is also there. The natural resources potential for the purposes of tourism and recreation is the thing that differs Plunge district from most of other places in Lithuania. Yes, the gifts of nature, historical and cultural heritage are the main factors that make tourism one of the most promising district’s businesses. At this point of time, the Plateliai lake, Zemaitijos national park and Plunge manor are the three symbols that represent the whole Plunge district. One of the buildings of the Plunge manor – the servants’ residential building is proposed as a site to build a hotel.
A very significant highway, the Klaipeda – Vilnius (A1) passes near the Plunge district, roads Siauliai – Palanga (A11) and Taurage – Mazeikiai (164) passes through the Plunge district. The ice-free and never freezing Klaipeda sea-port is approximately 60 kilometers away. A railroad (Vilnius – Klaipeda) passes through Plunge. The distance to a well-known Lithuanian resort Palanga and the nearby airport is approximately 55 km. Plunge and the surrounding areas have all of the public infrastructure it takes to make life comfortable (post offices, cultural facilities, libraries, healthcare facilities, banks etc.) Engineering infrastructure is also well developed (roads, electricity supply, utility networks, gas supply, etc.)
Historically there was a large impact on the Plunge industry from the Jews who lived here and developed their businesses and craftsman workshops, together with the long cherished agricultural traditions of the local folk and flax fiber and cotton “Kucinskis – Pabedinskiai” factory activities.
Some separate industry types (flax, leatherworks, machinery and metal processing) were growing until the declaration of independence by Lithuania. After the year 1990 and the change of economic reality (there was an immediate transition from planned economy to market economy after the declaration of independence), most of the industrial businesses have ceased to exist.
Nowadays the larger part of the industrial companies concentrated in the northern part of Plunge. The industrial zone accounts for approximately 40 companies who participate in different types of production. A well-known Lithuanian “Viciunai” company group has settled near them, on the Birutes st. The attractiveness of this place for industrial businesses is caused by the nearby railway branch, good transport connection with the center of the city and major highways connections. There are 8 land plots offered in this area with all of the engineering infrastructure you need to develop your industrial business, already installed.
Apart from large businesses, the economy of Plunge relies on a quite significant sector of small and medium businesses (hereinafter SMB), which showed a growth tendency during the last year. During the year 2013, out of 822 companies active in Plunge, a total of 76 percent (626) are accounted to fit in a “very small company” category. According to the data provided by the Statistics division of the Republic of Lithuania, 12 companies were deregistered (all had 0 – 4 employees) so the total became 482 instead of 472, but the number of companies employing 10 to 19 people has increased by16 companies, raising the total number from 73 to 89.
While we are evaluating the changes it should be stated, that during the last year there was a decrease in the number of legal person’s from the risk company group (individual companies). There were 158 individual companies active in the Plunge district during 2013, when in 2011, there were 229 of them. The number of joint stock companies has increased, reaching a total of 411 (377 in 2011, 387 in 2012).
Statistically, enterprises in Plunge have a tendency to engage in agriculture, industrial activities and construction works more than the state average.
It should be noted, that in the beginning of 2013, the number of companies with annual revenue of 138 millions of Litas and more, has increased by 1, with the total of 2 such companies in Plunge.
While evaluating companies that have been registered and/or are active in the beginning of 2013, we can state that industrial companies’ situation in Plunge district had a tendency to improve. The number of registered industrial companies has grown by 21 (from 137 to 158), when during the same period of 2011-2012, there were only 3 industrial companies registered. Power supply, steam supply and air conditioning economy sector position seems to be good to enter the market, since there are 18 companies that have registered such activities in 2013 (there were only 4 active companies during 2011 and 2012). Other 3 industrial companies registered their activities in the field of manufacturing.
We can see positive construction works market changes. There were 84 construction works companies registered in 2011, 89 in 2012, and 91 in 2013.