POLISH INFOMATION AND FOREIGN INVESTMENT AGENCY
NEWSLETTER
 August 7th, 2014,
 Issue 394

NEWS

Ethiopia and Tanzania -  new directions for companies from Eastern Poland
After numerous trade fairs and business missions in Europe, Asia, and the US, PAIiIZ expands promotion of Eastern Poland marco-region to Africa. In October 2014, companies from Eastern Poland will look for new business opportunities in Ethiopia and Tanzania.

The mission will be held between 8-13 October. It’s open to Eastern Poland companies whose activity is related to the production of food, machinery, chemicals and energy. Currently PAIiIZ is recruting the participants of the mission.

"Africa is a very attractive economic area where companies from Eastern Poland have a lot to offer. We see the great interest on African markets for the Polish food and for agri - food machines made in Poland, that is why we have arranged a trade mission to Ethiopia and Tanzania. Some of  the Polish companies have already been active on the African continent. For example, last year Polish tractor manufacturer from Lublin - Ursus company, signed a contract for the delivery of 3,000 machines to Ethiopia", says deputy president of PAIiIZ Monika Piątkowska.

The representatives of the companies from Eastern Poland interested in participating in the mission to Ethiopia and Tanzania can apply until 14 August 2014. For more details visit: http://whyeasternpoland.eu/aktualnosci/aktualnosci-493/ogloszenia/ogloszenia-o-naborach/nabor-wnioskow-na-misje-do-tanzanii-i-etiopii (Polish version only)

More information:
www.paiz.gov.pl/20130806/ethiopia_and_tanzania_a_new_direction_for_companies_from_eastern_poland (PAIiIZ)

INVESTMENTS

Impressive KGHM investment in Chile
The Lowersilesian company KGHM has just started copper production at the Sierra Gorda in Chile. This is one of the fastest-developing mine investments in the world and one of the biggest Polish investments abroad.

KGHM - the global producer of copper and silver from Poland has just finished works to prepare the ground for investment in Sierra Gorda, Chile. It took only 10 years since placing the first wellbore to starting the production. The company plans to produce approximately 120,000 tons of copper, 50 million pounds of molybdenum and 60,000 ounces of gold annually. The first transfer of copper is planed for September 2014. 50% of copper concentrate will be transefered to Japane, while the rest will be delivered to other markets.

Sierra Gorda is a joint-venture type of coperation operated by KGHM International. KGHM Group owns 55% of the mine’s shares, Sumitomo Metal Mining has 31.5%, while the remaining 13.5% is owned by Sumitomo Corporation. On 1 August 2014, the European Investment Bank has granted KGHM a PLN-2-billion loan. The Company plans to spend those funds on modernization of infrastructure, which will reduce the negative impact for the environment. (KGHM)

Czech Republic with 500 Solaris busses
The 500th Solaris bus has just arrived in the Czech Republic. This is the Solaris Urbino 18 that was ordered by the city of Brno.

Since 2000, Solaris has delivered 500 buses to the Czech Republic. This country was the first  foreign market entered by Solaris. In 2001, Solaris established its subsidiary Solaris Czech in Ostrava. 


Solaris (source: www.solarisbus.com)

A recent order of the city of Brono consists of 36 Solaris Urbino articulated buses.  Busses form Poland also operate in such Czech cities as: Ostrava, Pardubice, Pilsen, Prague and Teplice. (Solaris Bus & Coach)

Poland dresses Italy
Italy is said to be a centre of world’s fashion. It is also a global leader of hosiery market and a perfect place for a Polish company Ferax to develop its tights brand called Gatta. By the end of 2014 the company plans to open 10 - 15 Gatta’s new stores in Italy.

Currently, Gatta owns 14 stores located in major Italian cities, including tourist resorts. Products with Gatta label are manufactured in one of the biggest and most modern factories in Europe. Moreover, since the very beginning, Ferax cooperates with Italian companies specialised in production of hosiery.

Gatta’s expansion is not only focused on European countries but it has also sucessfuly entered Middle East markets of Qatar, the United Arab Emirates, Oman and Bahrain, as well as Mongolia and Australia. Gatta has a showroom located in Berlin and plans the oppening of another showroom in Germany, in Siegen. It also owns retail stores in Iraq and Lithuania. The company is also considering entering the Chinese market. (Gatta)

Developing the Polish defense system
TELDAT and Raytheon signed a letter of intent establishing the cooperation under IT projects regarding Polish air defense system and strengthening the presence of both companies in foreign markets.

Both companies will develop IP-based network solutions, software and communication devices for military purposes. Since 17 years, a Polish - based TELDAT has been operating in Polish defense market. It is a leading designer and manufacturer of the most advanced IT solutions for security and defense. Raytheon, which has its headquarters in Waltham, Massachusetts (US), is a one of the world’s leading provider of defense and security innovative solutions (BARR)

MACROECONOMIC POLAND

  • Exchange rates (as of 07.08.2014):

Buy

Sell

USD

3.1189

3.1819

EUR

4.1629

4.2471

Source: www.nbp.pl

EVENTS

Polish Game Evening
Polish Trade and Investment Promotion Section in Cologne invites video game industry in Poland to participate in the Polish Game Evening. The meeting will be held on 12 August.

The meeting has been arranged on the eve of Games.com in Cologne (between 13-17.08.2014) - one of the world’s biggest video game event. The Polish Game Evening aims to present Polish companies to the global industry and to customers who visit trade fairs. Polish exhibitors will also have the opportunity to take part in panel discussion on the development of the industry as well as to participate in matchmaking meetings with German giant video game companies.

Confirmation of participation: karolina.kozlowska@trade.gov.pl. Participation is free of charge (WPHI Kolonia)

Big 5 trade fair in Dubai
Under the promotion of Polish companies in United Arab Emirates programme, PAIiIZ invites companies to participate at the "Big 5" trade fairs in Dubai. The event will be held on 17-20 November 2014.

"Big 5" is the largest trade fair of construction and building industry in the region, that is visited by over 35,000 visitors each year.  Polish companies will have the opportunity to present their advertising materials at trade stands and in informational folder prepared by PAIiIZ (English and Arabic version).  The Agency will also help to arrange meetings with local business during the event.

Companies interested in participating in the project should fill in the form (in Polish only) available on: http://www.paiz.gov.pl/20141117/big_dubaj_zapraszamy_na_targi and send it to: katarzyna.rosinska@paiz.gov.pl until 18.08 2014.

4th China Expo Poland
Between 4 and 6 September, MT Polska in Warsaw invites all to 4th China Expo Poland 2014. This event is dedicated to Poland - China trade cooperation. PAIiIZ took the patronage over the exhibition.

The fourth China Expo Poland, arranged by Targi Polska and Pol-Chin Consulting, is a place where the offer of Chinese companies will be presented. The exhibition is also the best opportunity to establish Polish - Chinese business contacts.

This year’s China Expo Poland is dedicated to interior decoration and house appliances, lightning, electronics and textiles.

More information: www.chinaexpo.pl (MT Polska)

Business mission to Scandinavia
Pomeranian Regional Development Agency organizes business missions to Norway and Denmark. Companies representing Polish ICT and eco-friendly agri-food sectors from Pomerania can apply for financing the participation in those missions.

The mission to Norway will be held between 13 and 16 October. Oslo is said to be the major centre for ICT and new technologies in the country. Over 60% of Norwegian ICT companies is located on the city. The program of the mission includes meeting with Norwegian companies, B2B talks and study visits.

The second mission, to Denmark, will be arranged between 24-26 November. Participants will take part in Agromek 2014 - one of the biggest exhibitions of the agricultural sector in Europe.

Both economic missions to Scandinavia are organised by the Pomeranian Regional Development Agency in Słupsk under the project entitled "INVEST IN POMORSKIE II - Promotion of investment attractiveness of the region of Pomerania in the Nordic countries and Germany."

More information: www.sse.slupsk.pl (SSSE)

INDAGRA FOOD 2014
Between 29 October and 2 November, Bukarest will hold INDAGRA FOOD 2014 - agri-food exhibition.

The participation in the fair is open to companies (manufacturers and distributors operating in the international market) representing the Eastern Poland macro - region.

The application is available by 14 August 2014.

Participation in the fair is arranged by PAIiIZ under Eastern Poland Economic Promotion Programme. (PAIiIZ) 

ANALYSES AND REPORTS

Poland among the 25 world’s best ecomomies
According to the EY’s and Oxford Econimics’s quarterly forecasts, by 2018, Polish sovereign debt will decrease by 7 percentage points. ‘Rapid-Growth Markets Forecast’ has analysed economic situation of 25 contries - including Poland - that have the growing impact on the global economy. Authors of the report say, that the economic growth in those countries will reach over 4,5% next year.

According to experts from EY and Oxford Economics, the rapid-growing markets are the 25 most influential economies with the strongest impact on global GDP growth over the next decade. These are: Saudi Arabia, Argentina, Brazil, Chile, China (including Hong Kong), Czech Republic, Egypt, Ghana, India, Indonesia, Qatar, Kazakhstan, Colombia, Korea, Malaysia, Mexico, Nigeria, Poland, Russia, South Africa, Thailand, Turkey, Ukraine, Vietnam, United Arab Emirates.

In Poland, in the first quarter of 2014 economic growth has accelerated to 3.4% y/y from 2.7% in a previous quarter. According to the report, the growth rate is expected to remain on the same level in the incoming quarters, while the economic growth may be close to 3.4% in 2015 and even to 3.7% in 2016.

The increasing population, growing number of investments and the fast development of technologies and urbanization are the main factors strengthening the economic growth of the rapid - growing markets. By 2030, more than two thirds of the population of China, Indonesia, Nigeria or Ghana will live in cities. By this time, 40% out of 50 largest world’s metropolis will be located in China. Jakarta, Istanbul and Sao Paulo together with China will  be ranked among the world’s top 20 cities leading in industrial production. (EY)

Polish foreign trade in 2013
Polish Central Statistic Office (GUS), has published final data on Polish foreign trade in 2013. According to GUS, exports from Poland increased by 8% compared to 2012, reaching a €155 billion. Imports amounted to €157 billion and it was higher by 1.9% than last year. As a result, the trade deficit has been reduced by € 8.6 billion to € 2 billion.

Exports to the EU increased by 6.3% (to €116.3 billion). Germany, that is Poland’s biggest trading partner recorded the growth by 7.8% (to €38.9 billion). In 2013, exports have also increased rapidly in the EU markets such as Latvia (by 33.5%), Spain (by 20.7%), Belgium (by 14.3%) and Hungary (by 13.8%).

The surplus in trade with EU markets increased by €3.8 billion (up to €24.5 billion). The biggest improvement in trade balance was recoded by Germany (about €1.7 billion), Slovakia (about €480 million), Czech Republic (about €430 million) and Hungary (€410 million).


© Victoria-Fotolia.com

In 2013, agri-food products were the fastest developing sector of Polish foreign trade (increase by 14.2%), while the imports recorded much slower grow rate (by 5.6%). It affected the surplus in turnover that went up by almost €1.8 billion to €6.1 billion euros.

After a fairly slow growth in 2012 (by 1.1%), in 2013, the foreign sales of electromechanical industry products accelerated by 8.9%. Also export of chemical industry products improved by 9%. (GUS/ Ministry of Economy)

Polish food export is growing
According to the Agricultural Market Agency, during the first five months of 2014, Polish food export reached €8.8 billion, while at the same period of 2013 it was estimated at €8 billion.

The positive balance of food trade products between January - May was higher by €400 m y/y reaching €2.5 billion. At this time, the value of imports amounted to €6.1 billion and is improved by €0,2 billion comparing to the first 5 month of 2013. Export of meat, fruits and vegetables decreased. In contrast, the sales of grain, milk, and dairy products increased significantly.

After the 10 years of being a member of the EU, Polish import recorded the increased by 3,5 fold while the export by 4,5 fold. Trade balance went up from €0.5 billion to over €6 billion. It shows that the market is in good contition. (PAP)

The success of the automotive industry in Poland
According to the PZPM’s and KPMG’s quarterly report, the automotive industry is becoming more optimistic as the production of automotive parts and accessories together with the export of the sector is improving.

The authors of the report argue that the first half of 2014 was successull for manufacturers and exporters of automotive parts and accessories. The sold production of automotive factories in Poland increased by 4.9% y/y bringing 58 billion PLN income to the sector. Over the first six months of 2014 at least 323,300 new cars were produced in the country, which is 3.3% more than the year before. The improvement was caused by the growing level of  LCV and truck’s production. Also the production of buses increased by 26,6%.

It was a good period for Polish exporters.  The sale of Polish automotive industry is related to the growing demand for vehicles in the EU. In the first quarter, exports of Polish automotive products increased by 6.6% y/y reaching €6.3 billion. The sale of components and car parts (including engines), which was higher by 9.4% comparing to the first quarter of  2013 (€4.2 billion)  is considered as the main factor of the exports’ growth . (KPMG)

DID YOU KNOW THAT...?

Łodź Film School the second best in the World
The Hollywood Reporter magazine had released its list of the Top 15 International Film Schools. The second place went to Łódź Film School in Poland, exceeded only by London National Film and Television School.

According to the magazine, The Polish National Film, Television and Theatre School has launched a pantheon of cinema greats, including Oscar winner Roman Polański. Filmmakers who have graduated from the Łódź Film School are very successful not just only in Poland but also in the world. Polish and international students learn from the school’s most-successful graduates - the masters of Polish cinema such as Jerzy Skolimowski, Krzysztof Zanussi, Zbigniew Rybczyński, Krzysztof Kieślowski, Adam Holender, Witold Sobociński, Sławomir Idziak and Paweł Edelman”. More than 300 student projects are created each year in the school's production studio.

The second place for Łódź Film School is one of the most important success of Polish universities in recent time. The third place went to French La Famie. The leaders were followed by Czech FAMU and Norwegian Film School.  (www.hollywoodreporter.com)


Editorial office: Polish Information and Foreign Investment Agency, 00-585 Warsaw, Bagatela Street 12
Information and Communication Department, tel: +48 22 334 99 49, fax: +48 22 334 99 99, e-mail: redakcja@paiz.gov.pl
Polish Infomation and Foreign Investment Agency www.paiz.gov.pl

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