The most important news from February 12 until February 18 of the year 2005

MICHELIN EXPANDS IN OLSZTYN
Michelin Group expands its tyres plant in Olsztyn, as part of its strategy related to operations on developing markets. The value of the investment, is estimated at EUR 253 million. The new factory will begin operations in 2006. 520 new jobs will be created
The investment envisages increasing production capacity of tyres for cars and vans, rubber mix as well as developing warehouse facilities.
Jerzy Hausner, deputy Prime Minister and Minister of Economy and Labour, and Pierre Michallat, president of Michelin Polska S.A., signed the framework agreement concerning the investment of Michelin in Olsztyn.
Andrzej Zdebski, President of PAIiIZ, said that bringing this project to a successful end is a proof of high efficiency of activities undertaken by the Polish Information and Foreign Investment Agency (PAIiIZ). “The Agency assisted Michelin throughout the whole project which lasted one year Today's event is a successful end to an important chapter in the history of PAIiIZ,” stressed Zdebski.
Poland is becoming an unquestionable leader in tyre manufacturing sector. The country has earlier attracted the investments such as Bridgestone or Goodyear.
Investment decision of Michelin is the reflection of Poland's investment attractiveness. The company participated in the privatization of domestic tyre maker Stomil-Olsztyn S.A., which brought about good financial results and high efficiency of production and thus convinced the firm to invest further in Poland," believes Sebastian Mikosz from PAIiIZ who supervised the Michelin project.
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GLOBAL STEEL MOGULS BUYING WARSAW’S STEEL MILL
“Lucchini decided to sell some of its shares in steel mill Huta Warszawa to Arcelor,” announced Giuseppe Lucchini, Chairman of Luccini.
Arcelor, which represents mixed Luxemburg-French-Spanish capital, is one of the world’s largest steel producers. Neither company wants to reveal the details of negotiations. Giuseppe Lucchini added that Italian steel maker will leave some minor stake in Huta Warszawa.
Source: Życie Warszawy


POLES LOVE SHOPPING MALLS
Europe went nuts about shopping. According to a survey of Cushman & Wakefield Healey & Baker, the next two years will witness the construction of 9.5 million square metres of additional selling space in shopping malls. Out of this amount, roughly 1.6 million square metres will be available in Poland. This will be the largest share among European countries. It is the result of EU accession and the fact that Poles really enjoy spending their free time in shopping malls.
Source: Gazeta Wyborcza


POLISH EXPORTS TO IMPROVE
In 2004 value of Polish export amounted EUR 59.7 billion, which was over 25% more than year before. Polish imports reached the value of EUR 71.1 billion. Foreign trade deficit declined by EUR 1.4 billion in 2004 in relation to respective figure for 2003.
According to Central Statistical Office (GUS), Polish macroeconomic indicators are showing strong growth tendencies despite recent strengthening of the Polish currency. In 2004 the highest growth of 43% was recorded in exports to Central and Eastern Europe as well as other developing countries.
Source: Rzeczpospolita


DEVELOPING DEFENCE TECHNOLOGIES FOR EUROPEAN MILITARY FORCES
DGT, Polish electronics producer from Gdańsk, will cooperate with Military Communication Institute (Wojskowy Instytut Łączności) on developing communication systems for European Military Forces. European Union will spend EUR 2 billion for this purpose over the coming years.
Other Polish consortium will still have a chance of participating in related research and development of projects financed by the EU. It is a consortium of radar and aviation makers including Telecommunication Research Institute (Przemysłowy Instytut Telekomunikacji), Radwar, PZL Mielec.
Polish Defence Ministry in cooperation with representatives of the Polish industry has shortlisted 20 new technologies, which they would like to receive. These include - electronics, network security, light construction materials for the aviation industry and advanced material technologies.
Source: Rzeczpospolita


EUROPEAN COMMISSION. SOLID SUPPORT FOR SME
According to the European Commission (EC), all of the new EU members have achieved progress in developing their small and medium enterprises (SME).
“Poland has done much to support its SME market, especially by launching incentives programs and facilitating regulations,” reported the EC. Poland is among the leaders in business education, adjusting new regulations to the needs of SMEs and introducing measures against the shortages of skilled labour force.
Source: PAP


RECORDS ON WARSAW STOCK EXCHANGE
On 16 February foreign investors purchased shares worth half a billion PLN. As a result, index of Warsaw Stock Exchange reached the highest level in 15 years of its existence. The stock market witnesses large inflow of capital, which is attracted by remarkable results of Polish companies as well as promising macroeconomic indicators.
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