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NEWSLETTER
27th September 2007
Number 39

TABLE OF CONTENTS

 

NEWS

PAIiIZ Conference: “Challenges and Opportunities of Marketing&Doing Business in the U.S.”

The challenges and opportunities facing companies exporting to America, was the theme for the conference that took place at 11 am, on Thursday the 27th September, in the Polish Information and Foreign Investment Agency (PAIiIZ) Press Centre in Warsaw.


President of PAIiIZ Paweł Wojciechowski, Vice President of American Chamber of Commerce Tony Housh, President of KUKE Piotr Soroczyński and president of Top Spin Communications Joe Waldygo

The dynamic growth in the inflow of American investments to Poland, means that the USA now stands as Poland’s most important trading partner. During the first seven months of 2007, the value of Poland’s exports to the USA has exceeded 1.1 billion USD, while American imports into Poland have reached 1.8 billion USD.

In USA trading contacts from the beginning of last year, the largest areas of growth have been in the export of arms, ammunition and in works of art. Increases in turnover have also been noted in the export of goods based on vegetable products, of food articles, chemical products and in plastics.

In 2007 amongst all the projects serviced through the Agency, the American projects have taken the first place, making up 17% of all the completed investor’s projects. The forecasted investments for American companies this year form 1/3 of the total of all the declared capital investments to take place through PAIiIZ this year; they have also become the largest employers committed to employing 35% of all the new workers, i.e. more than the combined efforts of the remaining four of the “big five” countries – Japan, Germany, France and China, whose employment forecasts combined, are for 28% of all the new work places.


Joe Waldygo, President of the Top Spin Communications

The Seminar’s special guest was Mr Joe Waldygo who gave a presentation on the subject of promotion activities in America. Mr Waldygo presented the main challenges ahead of those exporters who intend to trade in the USA, such as the choice of the appropriate business partners, information channels and pricing strategies.


Tony Housh, Vice President of the American Chamber of Commerce

Mr Tony Housh, the vice president of the American Chambers of Commerce in Poland, assessed the main strengths and weaknesses of Polish firms exporting to the USA. In his opinion Poland’s EU membership is a very positive factor, as is the participation of our country in joint military operations with the US. As a result of these endeavours as well as the international certificates gained by Polish firms, the credibility of Polish companies on the international forum has grown significantly.

A different perspective – experiences of Polish firms on the American market and the perception of the market by Polish entrepreneurs – was provided by Mr Piotr Soroczyński the President of the Export Credit Insurance Corporation (KUKE).
More detailed information, as well as reports on the conditions of trade exchange with USA are available at the web page of the Trade and Investment Section of the Embassy of the Republic of Poland in Washington D.C. : www.wehusa.gov.pl.

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Invitation to a PAIiIZ conference: “Poland’s jobs market and the attraction of investments”

PAIiIZ issues an invitation to the conference: “Poland’s jobs market and the attraction of investments”. This will take place on Wednesday 3rd October 2007 at 10 am in PAIiIZ’s Press Centre, 12 Bagatela St. Warsaw.

During the conference the influence of foreign direct investments on the creation of new work places will be discussed and also the type of workers most sought after by the investors. At the meeting the wage levels of workers in Poland will be compared to those in the remaining EU countries. The invitations to participate have been directed to the ministries of the economy, labour and education and to higher education institutes.

We would ask you to confirm your attendance to: aleksandra.ptak@paiz.gov.pl.

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Unemployment could fall to 11.7% in September

- The unemployment level could fall from 12% in August, to 11.7% in September - said Ms Joanna Kluzik-Rostkowska, the minister of Labour and Social Policy.

These are the initial figures at the labour ministry. The minister believes that the level of unemployment could fall to 11.5% by the end of the year, whereas next year it could carry on falling to below 10%.

The minister commented the recent figures from the Central Statistical Office on August’s unemployment level: - 12% was no surprise, however the period for seasonal work is ending, so unemployment might not continue to fall so quickly - said Kluzik-Rostkowska. - Next year single digit unemployment is possible, due to the continuing strong economic growth - the minister added.

According to the minister, the people currently registered in labour offices, are mostly those that aren’t seeking work and are only signing on to receive health insurance. Minister Kluzik-Rostkowska is considering making the receipt of health insurance from those signing on, conditional on their readiness to start work. This solution could come into effect next year.

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Poland has finished negotiations on the “Innovative Economy”

- Poland has finished negotiations with the European Commission on the “Innovative Economy” operational program (IE OP) - the head of the Office for the Committee for European Integration (OCEI), Mr Tomasz Nowakowski announced on Monday.

- This means that at the turn of October and November the first competitions for business can be announced - said Mr Nowakowski.

The IE OP is one of five national programmes that will utilise EU funds. Its budget for the years 2007-2013 amounts to almost 10 billion EUR (including Polish capital). The overwhelming majority of these funds are to be allocated to achieving the goals of the Lisbon Strategy, i.e. the increase in innovation and competitiveness of Poland’s economy.

On the list of priorities, i.e. the key projects to be realised under the programme can be found the construction of the European Technology Institute, in Wrocław and the replacement of traditional identification documents with electronic I.D. cards. The list only relates to the financing of projects in the fields of IT, technology parks and tourism. The investments will be chosen for businessman by means of competitions.

From 2007 to 2013 Poland will be the largest recipient of benefits amongst all the EU countries. Over the next seven years, up to 67 billion EUR may be awarded. The funds will be allocated through 5 different national and 16 regional programs - one for each of the voivodships.

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INVESTMENTS IN POLAND

Doors open in Kamienna Góra

The Japanese company Novoferm Door Sp. z o.o. began production in September, in the Kamienna Góra Special Economic Zone for Small Businesses in Wykrotach. The firm has invested 12 million PLN and work will be found for several dozen people.


Opening of the new plant of the Novoferm Door company

A construction hall of a surface area of 4 thousand m2 was built during a six month period on a 2.7 ha site.

- The company specialises in the production of doors and windows in aluminium and steel frames - said Mr Szymon Madera, the president of the Kamienna Góra Zone.

The Novoferm Group, with its Headquarters in Rees Haldern, Germany, employs 2,100 workers, throughout its 15 factories in Europe and Asia. Novoferm is one of the leading manufacturers of doors and gates, both for industrial and private clients.

The firm comes under the Sanwa Shutter Group, the worlds largest producers of gates, that has an annual turnover of 2.1 billion EUR. The opening of the plant by the corporation’s president Mr Toshitaka Takayama, proves how important the factory is to the company.

Further information: www.ssemp.pl

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Packaging in Lubaczów

The Belgian company conTeyor opened a packaging factory on 27th September. By the end of the year, 150 people are expected to be working there.


The conTeyor's packagings are used mainly in the industry

The factory will be producing packaging formed from a textile base there, in which the material is hung in specially designed pockets. The packaging is designated for the transport of delicate articles, which are either painted, or particularly susceptible to scratching during transportation; products assigned for the motor industry, electronics or white goods sectors.

The conTeyor Group already has one plant in Poland – in Czechowice-Dziedzice. The investment in the Podkarpacie region is intended to broaden operations for the remaining countries of Eastern Europe.

- Though there were other attractive locations, including one in Slovakia, Lubaczów was chosen, mainly due to the availability of qualified personnel and its advantageous location on the Eastern Polish border - said Ms Dorota Hendzel from conTeyor Poland Sp. z o.o.

The company doesn’t exclude further investments in Lubaczów, however these are dependant on the establishment of a sub-zone of the EURO-PARK Mielec Special Economic Zone there.

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MACROECONOMIC POLAND

  • Unemployment: unemployment in August fell to 12.0% according to the figures of the Central Statistical Office (CSO). The initial analysis of the Ministry of Labour and Social Policy concludes that unemployment could fall to 11.7% in September.

  • Inflation: according to the CSO the prices of goods and consumer services rose in August by 1.5%, when set against the analogical period in 2006, whereas when compared with July 2007 it had fallen by 0.4%. The CSO’s Vice President Mr Janusz Witkowski, stated that at the end of the year inflation would be higher “but not so high as to cause concern”.

  • Harvests: the harvest of cereals has increased by 25.7% when compared to last year. There have also been increases in the harvest of rape seed – 27.9%, potatoes – 24.9% and root vegetables – 8.7%.

  • Sales: according to the CSO’s figures, retail sales this August increased by 17.4% compared to August 2006.

  • The automotive sector: the Samar Institute stated that sales of new lorries had increased by 60.9% against last year’s sales. In May, the motor industry achieved exports of above 1.3 billion EUR – 4.48% higher than April’s figures. In the first five months of this year, a total value of 6.47 billion EUR in goods was exported from the automotive sector.

  • The Polish Chamber of the Automotive Industry estimates, that next year the value of the motor industry’s exports should reach 16.2 billion EUR.

  • Exchange rates (as of 27.09.2007):

Buy

Sell

USD

2.6469

2.7003

EUR

3.7385

3.8141


Source:
www.nbp.pl

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FROM THE REGIONS

The Górny Śląsk Business Park

The emerging Business Park in Katowice is expected to attract both national and international investments. Its project plans a site layout creating a production and warehousing hall, office buildings and a well developed business support back up.

The GPP is being built under an EU programme called the Sectoral Operations Programme – the Improvement of the Competitiveness of Enterprises. Great attention is being given by its instigators to companies from the BPO sector, that are ever more eagerly moving their operations to Poland. The layout of the Park has been planned in such a way as to encourage entrepreneurs from other sectors to develop their operations in the Katowice region.

The investors are to be provided with a whole range of diverse services offered by the GPP. These will include a full legal services, bookkeeping and tax assistance, assistance in seeking finance – including EU finance, help with searching for and training workers, modern technology and access to R&D results.

Also of interest to potential investors will be the location of the Park – close to the airports of Pyrzowice, Balice and Ostrawa and the A1 and A4 national roads. Most importantly the close proximity of Katowice’s city centre will provide access to large numbers of well educated personnel both now and in the future. Apart from this the GPP location will provide the potential of a large consumer market, formed by the 2.7 million population of Śląsk’s urban areas.


Visualisation of the Górny Śląsk Business Park

On the site of the Park, there will be a huge production and warehousing hall with a mezzanine area (its construction is to be finished by November 2007) and an office building, in which firms from the BPO sector will be located, together with service units for the workers and guests of the Park. The office building is to be included into the Special Economic Zone, as a result of which the leaseholders will be able to receive many tax breaks.

The GPP will begin its activities and be opened for use at the beginning  of 2008.

Further information: www.gppkatowice.pl

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DID YOU KNOW?

The Poles are returning home

Three years after the opening up of the British job market, the Poles are beginning to return home – it was reported in the daily Metro.

Thousands of Poles moved to Gt. Britain, immediately after the job market there was opened to the Poles. According to various information sources in the British Isles (England, Scotland, Wales and Northern Ireland), between 400,000 and a million Polish émigrés live in the U.K. However the most up to date British statistics shows that the direction of the flow of the Poles has begun to change, as they are increasingly returning home to Poland.

As Metro reports, last year about half of those that Britain granted permanent residence to - app. 60 thousand people, were according to immigration office officials from Poland. This year the trend is expected to continue, meaning that as many as 50 thousand people are expected to return here. This tendency is also confirmed by Britain’s Foreign Office; who state that whereas in the final quarter of 2006 - 65 thousand workers came from the new EU countries, in the first quarter of this year there were only 52 thousand people.

Generally those returning are young well qualified people, who went to the British Isles in search of their first jobs, money and experience. On returning to the country they intend to either invest their savings in a property or in setting up their own business.

Another positive news item is, that Poles are not only increasingly returning to the country, but are also increasingly reluctant to emigrate. Far fewer job seekers have reported to the agencies that are concerned with finding job offers in the U.K., than in recent years. As Metro reports, Poland’s economic revival and in particular the falling unemployment is convincing many Polish people to remain. – Many Poles see that the situation on the job market has changed for the better and that they can find jobs without leaving the country. Over time very many more should return – said Mr Michał Garapich from Surrey University, who has researched Polish emigration to the British Isles.

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Editorial office: Polish Information and Foreign Investment Agency, 00-585 Warsaw, Bagatela Street 12
Economic Promotion Department
tel: (+48 22) 334 98 15, fax: (+48 22) 334 99 99, e-mail: redakcja@paiz.gov.pl
Polish Infomation and Foreign Investment Agency www.paiz.gov.pl