The most important news from October 30 until November 5 of the year 2004

INDIA WILL SPEND USD 7 BILLION ON MILITARY EQUIPMENT
Representatives of India’s Ministry of Defence is visiting Poland to watch the presentation of Polish military equipment, including tanks and armored vehicles.
Polish Deputy Defence Minister Janusz Zemke announced after the meeting with Pranab Mukherjee, Indian Minister of Defence, that India is interested in purchasing light transport aircraft Skytracks and helicopters.
Mukherjee is also looking for cooperation with companies that would be interested in modernizing around 2,000 Soviet tanks T-72. Minister Mukherjee, who has an annual budget of USD 7 billion, stressed the necessity of setting up bilateral cooperation between Polish entrepreneurs and Indian companies.
Source: Rzeczpospolita
Source: Życie Warszawy


POLISH STEEL MILLS – PART OF THE LARGEST STEEL PRODUCER IN THE WORLD
Lakshmi Niwas Mittal, 54-year old Hindu, is creating the largest steel company in the world – Mittal Steel Company, which will produce 70 million tones of steel annually. This will be achieved thanks to taking over American International Steel Group. Mittal’s LNM Holdings owns Polish Steel Mills (currently known as Ispat Polska Stal), but it also triggers Częstochowa Steel Mills.
Source: Puls Biznesu


DECREASING FOREIGN TRADE DEFICIT
According to the preliminary data of the National Bank of Poland (NBP), August data concerning the foreign accounts balance turned out to be better than anticipated, as Poland recorded an over EUR 460 million surplus. “This data shows that Poland’s situation after EU accession is continuously improving and it is another evidence for the fast growth of the economy. In July Poland recorded a EUR 318 million deficit, while in August 2003 the figure stood at EUR 147 million in the red. Analysts expected the deficit to amount to roughly EUR 70 million.
Source: Rzeczpospolita


SPECIAL ECONOMIC ZONES HAVE SO FAR CREATED 62,000 NEW JOBS
Total investment outlays in 14 existing Special Economic Zones (SEZ) in Poland exceeded PLN 15 billion. This allowed creating over 62,000 new jobs in SEZ and at least 120,000 new jobs indirectly.
Special Economic Zones issued 658 operating permits to foreign companies, out of which 409 entrepreneurs have so far launched their business activity. Among the operating companies are firms, such as: Gillette, Motorola Electronics Polska, ComArch, Man Stars Trucks & Busses, Toyota. General Electric, Bauer, Philips, International Paper, and many others. According to experts, over the next three years the inflow of FDI to Poland should substantially increase. The trend will concern especially small and medium sized companies.
Source: Gazeta Prawna


THE EMPLOYMENT WILL INCREASE IN Q4 OF 2004
According to Hudson Job Index report, during the fourth quarter of 2004 the number of employed in the Polish economy should increase. The largest amount of new jobs should be created in companies operating in IT and logistic-transport sectors.
Forecasts referring to employment figures are optimistic. “Only 3% of Polish entrepreneurs consider laying off workers”, assessed Hudson Global Resources. The figure is 8% lower in comparison to 2003. According to Hudson Job Index report 36% polled intend to increase number of jobs.
Source: Gazeta Prawna


POLAND - RUSSIA AGREEMENT ON ECONOMIC COOPERATION
An agreement concerning economic co-operation between the governments of Poland and the Russian Federation was signed in Warsaw by the Deputy Prime Minister Jerzy Hausner and Russian Minister for Economic Development and Trade German Gref.
Bilateral relations are currently regulated by the trade agreement existing between Russia and the EU, which embraced Poland from November 1.
The ministers were conducting discussions concerning power industry, investments support, co-operation in the Kaliningrad district, border crossings, construction of transit infrastructure, trade issues, veterinary problems. German Gref assessed that the agreement is a very good foundation for undertaking further steps. He also thanked for warm welcome and businesslike atmosphere of the talks.
Source: Rzeczpospolita


EADS TO CREATE 500 NEW JOBS IN POLAND
On October 28 EADS PZL Warszawa-Okęcie SA celebrated the delivery of the first Airbus A320 Family cockpit component. Due to new the orders and further investments in Warsaw 500 new jobs will be created at EADS PZL plant and its Polish subcontractors.
The new component, floor grid for nose section of fuselage (Section 11), will be manufactured by EADS PZL Warszawa-Okęcie SA in Building B42 earmarked solely for Airbus production. EADS CASA as the prime contractor will support the transfer. Production of Section 11 is to reach 15 sets per month by the end of 2004. Spanish investor estimates that new projects will lead to 20 percent growth in sales in the next 4-5 years. 500 new jobs will be created in Warsaw area, about 200 of which directly at EADS PZL plant.
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SWEDISH SAPA INVESTS EUR 4.7 MILLION IN TRZCIANKA
Sapa, a European leader in aluminium profiles, will invest EUR 4.7 million (PLN 20 million) into a third press in its Polish plant in Trzcianka. About 50 new jobs will be created.
It will be the third production line in Sapa’s factory in Trzcianka (northwestern Poland). The new investment will double annual capacity of the plant from present 12,000 tons of aluminium to 24,000 tons. Due to the new project Sapa Aluminium will be able to press larger profiles of up to 280 mm which will also broaden its customer base. The new press is scheduled to commence production in September 2005. The capacity for anodising and fabrication in Trzcianka plant will be also expanded.
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