"Lithuania and Germany have built close and intensive political relations, as well as economic ties and even military cooperation. Such political cooperation usually leads to the arrival of businesses. We see an example of this today," Lithuanian President Dalia Grybauskaitė said at the inauguration ceremony.

She described the opening of the Hella plant in the Kaunas free economic area as proof of Lithuania's transformation from a country of cheap labor to a country of innovative and high- skilled labor.

Hella President and CEO Rolf Breidenbach said that the company had chosen Kaunas as the location for its new plant after a very careful selection process.

"We chose Lithuania, the region of Kaunas because here in Kaunas we found exactly what we require: a traditional industry region with a very educated workforce," he said.

The Hella plant manufactured and shipped out its first products in late August. The company currently employs almost 70 people and plans to hire up to 250 within three years.

The Lithuanian electronics plant is the 14th one in Hella's global network.