The most important news from August 14 until August 20 of the year 2004

Chemical industry had good results in 2003, but this year even better
After couple of lean years, Polish chemical industry marks prosperity this year. Each realized and planned investment proves that. A few of the largest ones reach the value of EUR 1 billion.
In 2003 capital investments of Polish chemical companies, with only few exceptions, were not impressing and amounted to 1-2% of their income only. This resulted from weak conjuncture faced few years earlier. At present, the situation in the branch is very good.
By the beginning of 2005 the biggest investment in Polish chemical industry is planned to be finished, namely the construction of two polyolefin manufacturing plants (materials for plastic manufacturing). The value of the investment amounts to EUR 500 million.
Source: Rzeczpospolita 
 
 
Export keeps increasing fast
During the first six months of 2004 Polish companies made EUR 27.9 billion profit from sale abroad, while the value of imported goods amounted to EUR 33.9 billion. A trade deficit value was then EUR 100 million lower than after June 2003. This year export increased by 24.4% (denominated in euro), while import increased by 18.8%. Sale directed to the European Union increased the most, approximately by 25%.
At present, EU is a receiver of 87,4% of Polish export, while 70% of imported goods are delivered by European companies. Domestic companies faced the fastest growth of export to the EU states: Spain, Italy, Czech Republic, United Kingdom and Russia, while the biggest purchase was encountered in Czech Republic, Sweden, Holland, France and China.
Source: Rzeczpospolita
 
 
Good results of industry manufacture
A pace of industry manufacture growth lowered almost twice in July 2004 and, according to Polish Official Statistics, amounted to 6% growth only in comparison to the same period a year before. Such a small figure amazed the majority of economists who forecasted an 11.1%-11.6% growth. "The fact of smaller production wasn't astonishing at all but its scale amazed us", notified Piotr Bielski, BZ WBK economist. Taking periodical factors into account, the pace reached a considerably higher value of 9,2 % in comparison with July 2003. However, when comparing to June 2003, a 4% fall of production was faced.
Following the economists' opinions, the prices of production increased by 8,6% in July, which is just a little more slowly than a month before. The deterioration in production might be caused by motorization and processing sectors. Previously, 21 sectors noticed a fourfold growth in comparison with June.
'Last month automotive sector was responsible for 80% of production growth. When the demand for cars decreased, the dynamics of the sector fell down by 50%', explains Marcin Mróz, Societe Generale Main Specialist. He adds that it may result even in a 4% decrease of production.
Source: Gazeta Wyborcza
  
 
Does Żerań encourage new investor
Polish FSO Żerań company will probably have a new investor, namely British MG Rover. The negotiations shall be conducted at the beginning of September this year. MG Rover shall provide FSO Żerań with a new technology. Furthermore, Chinese Shanghai Automotive Industry Corporation and probably Ukrainian ZAZ might support British MG Group with some money transfer.
Source: Parkiet - Gazeta Giełdy