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TABLE OF CONTENTS NEWS
INVESTMENTS IN POLAND
FROM THE REGIONS
ANALYSES AND REPORTS
NEWS From the editor The favourable state of Poland’s economy continues. The Polish automotive sector’s position in Europe is growing stronger and developing, as it exports over 80% of its manufacturing output to the EU market; whereas industrial production in January grew by 10%. It is with pleasure that we can inform you of further companies that have decided to invest or increase their investments in the Special Economic Zones and of P&G beginning construction of their factory. The Ministry of the Economy maintains its forecast that economic growth this year will exceed 5.5%...
Further details in today’s publication. Automotive exports reach 14.7 billion EUR Over 11 months of last year (January to November) automotive products manufactured in Poland were exported, valued at a total of 14.73 billion EUR.
This is 1.76 billion EUR more than over the analogous period from the previous year - the Polish Automotive Chamber (PIM) stated on Monday. 86% of the total of exports from the sector reached the EU market. The most important market for the output of the Polish motor industry remains Germany, where 26% of all the production exported was sold. Following were Italy - 19%, Gt. Britain and Spain each at 6% and France - 5%. Of the automotive exports, the largest shares were made up of the private cars and light goods vehicles segments. Over the first 11 months of 2007 the value of these segments exports was 5.24 billion EUR, forming 36% of the total exports from the sector. This was 5% more than in the previous year. Over 86% of the vehicles produced in Poland reach the markets of the EU member states. The second export pillar is parts and components; from the period of January to November 2007 the joint value of these exports was 4.34 billion EUR, which means that almost 89% of the export total is reaching the EU market. GUS figures: there’s no fear of a slowdown in economic growth The beginning of the year is much better than economists had expected. Businesses are continuing production flat out - Gazeta Wyborcza reports.
Reality has once more proved better than the forecasts. Industrial production and pay in the business sector rose last month at a double digit rate. Companies sold goods worth 10.8% more than in January 2007, whereas the average of the forecasts was for 6.5%, with some meagre estimates were of 4%. A positive signal is that the high rate of production was influenced by the food processing industry, where sales increased by 11.1%. The best results were achieved by firms manufacturing radio, TV and telecommunications equipment (production inc. 32.5%), cars (22.8%), machines and appliances (22.4%) and from rubber and plastics articles (11.8%). These are sectors which have traditionally exported large shares of their production. A positive sign is that though exchange rates have been unfavourable, firms have been able to maintain high rates of sales in foreign markets. Poorer results were achieved by building and construction companies - their increase in sales was only 6.8%. These figures are accompanied by information published last Friday of the rapid increases of average pay in January (11.5%) and the unexpected increase in inflation (4.3%). These are clear signals for the proponents of a more restrictive monetary policy, that further increases in percentage rates are necessary. Particularly, as this has led to increased production costs (manufacturers’ inflation) - from 2.3% in December, to 2.8% in January. Analysts believe that an increase could be implemented next week, but many believe that this won’t take place before the Monetary Policy Council’s meeting in March. The market forecasts have stated that throughout 2008 economic growth will be between 5 and 5.5%, with an average inflation rate of app. 4%. The inflation peak would be reached in I Q and would be app. 4.6% (later in August it could reach 5%, but this would be a statistical effect). (Gazeta Wyborcza) INVESTMENTS IN POLAND Korea’s Shinchang will build a factory in Gliwice At a cost of 27 million PLN the Korean firm Shinchang will open an accessories factory for cars and car engines. Work will be provided for 200 people.
The plant will be built within the area of the Katowice Special Economic Zone (KSEZ). Mr Igor Jelonek of KSEZ, stated that the company had been awarded permission to trade in the Zone. Shinchang specialises in electronic components designed for car engines and equipment. The company is part of an international corporation producing car parts and components. In the first stage of the operation the investor plans to begin the production of plastic car parts, mainly for the Hyundai and Kia works in Slovakia. In the second stage of the development the firm plans to broaden its range of plastic components, to electrical and domestic appliances. The KSEZ investment will provide work for 200 people. Shinchang Poland is the second Korean investment in the KSEZ. In autumn of last year, the firm: Korea Fuel-Tech Poland - belonging to the Korea Fuel-Tech Corporation Inc., a joint venture company from the Italy Ergom Group - decided to invest in D±browa Górnicza. As Mr Jelonek said, there are other South Korean investors that are considering investments in ¦l±sk, with whom talks are in progress. The increasing interest in investments in ¦l±sk, by Korean corporations from the motor industry is one of the reasons for the impending increase of the KSEZ’s area by 135 ha. According to Mr Piotr Wojaczek, the KSEZ president, throughout 2008 the Zone is expecting investments valued at 1.5 billion PLN, which will create a total of 2.5 to 3 thousand new jobs. (PAP) MTU Aero engines opens a new branch in Poland In the spring of this year MTU Aero Engines manufactures of power units, will begin the construction of a Polish branch in Rzeszów. Production is due to begin in 2009.
A branch of MTU Aero Engines, will be established on a 7 ha site within Aviation Valley - Poland’s aviation cluster. Among the tasks of the subsidiary company, will be the design and production of stator blades and moving blades for low pressure turbines, together with their installation and the repair of parts. - We’ve decided to locate our new plant in Rzeszów, as this region has a well developed industrial base, including businesses from the aviation industry and large reserves of well qualified specialists - explained Mr Richard Maier, the MTU Aero Engines project director. - The whole process from design, through production and finally repairs, will take place at one location - Maier added. Initially 100 workers will be employed in the Polish branch, which will increase to 400 by 2012. Over the next three years MTU intends to invest app.70 million EUR at the site of the Podkarpacki Science and Technology Park. The MTU Aero Engines corporation is a German engine manufacturer and employs 7,100 workers; in 2006 its turnover was 2.4 billion EUR. On a global scale, it’s the largest independent manufacturer in the field of the renovation of engines designated for civil aviation. (MTU Poland) New investors in Kraków and Legnica Kraków is preparing itself for new investors - e.g. Nidec, the Zas³aw Trailer Works, Foodcare (formerly Gellwe) and Woodward. Legnica is following closely - currently talks are in progress for projects valued at over 1.1 billion PLN.
On Tuesday the Government took the decision to widen the Kraków and Legnica Special Economic Zones (SEZ). As new areas are added to the Zones fresh investments will be entering them. The Japanese firm Nidec, producer of motors for sun roofs and car seats, intends to invest in Kraków. The investment is significant: the sum at stake is a 56 million PLN investment and 500 hundred workplaces; the plant is to be built at Niepo³omice. Foodcare, from the food market, Woodward Governor Poland, from the electronics industry, Hannecart Poland, producers of rubber coatings and the Zas³aw Trailer Works, are all also preparing to enter the Kraków SEZ (the Kraków Technology Park). In Legnica the firms NG2 and TBMECA are awaiting their permits. NG2 is a shoe manufacturer that already operates in Polkowice and intends to invest a further 30 million PLN in Poland, resulting in another 150 jobs. TBMECA which produces car components already employs over 100 personnel in the Legnica SEZ and intends to expand their employment by investing a further 40 million PLN. Companies from Spain and Germany, mainly from the food and motor sectors, are also currently involved in negotiations. (PB) P&G begins construction of their factory The symbolic first digging of foundations was performed by Mr Alex Blanco, Vice President of Global Production and Distribution of Skincare Products and Mr Robert L. Robinson, Director of Global Production and Distribution of Skincare Products.
- This is our third Polish project, following the Pampers nappy factory in Warsaw and the Gillette factory for razors and blades in £ód¼ - said Mr Blanco - We chose Aleksandrów in £ód¼ due to its central location and broad access to qualified personnel. What was very important prior to taking the decision was the offer from Aleksandrów’s local authorities and the representatives of the £ód¼ Special Economic Zone - he added. The value of the Aleksandrów investment is 50 million USD.
- The surface area of the cosmetics plant is estimated to be 15,000 m2 and the whole area of the investment site will be around 80,000 m2. That’s an area the size of 13 football pitches - Ms Katarzyna Wojciechowska, Director of the projected Olay cosmetics factory stated. The cosmetics produced at Aleksandrów will reach the markets of Western and Eastern European, the near East and Africa. The production lines will be able to produce over 100 types of face creams and their daily output will be several tons of cosmetics. - The investment in Aleksandrów is of great significance for the region’s development. The Olay plant will be a workplace for 300 people, including both skilled and highly skilled personnel. 210 of the staff will be employed directly by P&G and 90 by selected contractors - said Ms Wojciechowska. The process for the recruitment and training of workers began in November 2007 and is continually in progress. Currently the firm is seeking engineers and production technicians. The land for the Aleksandrów factory was purchased in September of last year; the plant’s project was completed in October and in December the contractor received permission for the site’s development, with work connected to the plot’s redevelopment began in January. Completion of the first stage of construction is planned for August of this year. According to the work plans, the production lines for the first creams produced will open in December and the first packaging lines will be operating in January 2009. It’s forecasted that the initial cosmetics produced by the plant will reach the markets within the first half of next year. MACROECONOMIC POLAND
Source: www.nbp.pl FROM THE REGIONS Zones are enlarged On Tuesday 19th February the Government issued a directive for the enlargement of two Special Economic Zones (SEZ) - in Kraków and Legnica.
The area of the Legnica SEZ will be enlarged by 40 ha to almost 460 ha. The additions to the terrain will be in the dolno¶l±skie voivodship and lie close to the main communication routes - the A4 and A18 motorways and the international E65. The plans for their development are mainly for alternative investments that are unrelated to the copper industry. They plan to create 2,850 new workplaces within the Zone and app. 700 in the surrounding area. The estimated capital sums for investment are over 1.1 billion PLN. At the same time the Kraków SEZ (the Kraków Technology Park), will be increased by almost 120 ha, growing to app. 420 ha in total. According to initial estimates this will enable 4,060 new jobs to be established in the area of the KSEZ and app. 1,000 in the surrounding area. Planned investments will cost in the region of 470 million PLN. (Government Information Centre) ANALYSES AND REPORTS 38 billion EUR to organise EURO 2012 Nearly 38 billion EUR will be spent organising EURO 2012 in Poland and Ukraine. 60% of this sum will be spent on building and modernising Poland’s roads, twice as much as will be spent by Ukraine.
From a report by the research company PMR, it appears that the total cost of organising EURO 2012 in Poland and Ukraine will be 38 billion EUR. The lion’s share of this sum (12 billion EUR) will be spent on road investments. These funds will finance the construction of almost the whole A1 motorway, the southern section of the A2 motorway and the eastern A4 motorway, together with a network of express routes - most significantly the S5, linking Wroc³aw, Poznań and Gdańsk. The value of the Ukrainian road projects is estimated at 5 billion EUR.
There are also projects to modernise the main rail routes running through the towns that are organising the championships and rail links from airports to the centre of towns, together with the redevelopment of railway stations. As a result of the EURO 2012 investments, a second underground link will be built in Warsaw. Among the largest projects relating to the airports there are investments in 8 Polish airports (apart from 6 airports in the large cities - there will also be investments in Modlin and Gdynia) and a further 8 airports in the Ukraine. Jointly the investments in these types of investments in both countries will be app. 2 billion EUR. 2008 is to be the crucial year in the EURO 2012 preparations. The organisers must hasten to be on time with preparation of the investment projects and the appointment of contractors. Currently the priority among the projects being organised, is for the construction of stadiums. According to the experts from PMR, though there has been some delay, these investments should be completed before the championships begin.  Editorial office: Polish Information and Foreign Investment Agency, 00-585 Warsaw, Bagatela Street 12Economic Promotion Department tel: | ||||||||||
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