POLISH INFOMATION AND FOREIGN INVESTMENT AGENCY
NEWSLETTER
 May 15th, 2014,
 Issue 382

NEWS

Foreign press praises Poland
Two articles on the Polish economy have just been published by foreign press. According to the German Suddeutche Zeitung, human capital is the strongest asset of Poland. On the other hand, Moldovian Ekonimiczeskoje Obozrienije newspaper writes about “pragmatism” of Poles.

Klaus Brill, the author of the article published in the Suddeutche Zeitung, looked at the Polish economic success, focusing on the booming Business Services Sector that attracts major global players, including many German companies. "It is thanks to the people - especially the young ones - Poland is so attractive", says Brill. German investors operating in Poland, who spoke with the journalist, praise the high qualifications of Polish workforce, communication skills of Poles as well as their flexibility and good motivation to work.

"For a thousand years of its history, Poland has not experienced such a successful period as during the last 10 years ", argues Dmitry Kalak, starting his article about Poland in Moldavian newspaper “Ekonimiczeskoje Obozrienije”. The author evokes words of S³awomir Majman, PAIiIZ president, who says that current economic success of Poland derives from the membership in the EU, pragmatism of Poles, conservative policy of local banks and the inflow of foreign investments to the country. Kalak writes about such Polish companies cooperating with Moldavian business as: ASKET operating in the alternative energy sources industry or EltaCo assembling refrigerators for processing fruits and vegetables. The author also shows that there is a big potential for mutual cooperation in the imports of Moldovan fresh fruit to Poland.

Read more: www.paiz.gov.pl/20140513/foreign_press_praises_poland (PAIiIZ)

INVESTMENTS IN POLAND

18 FDI projects completed
More than €1.5 billion will be invested in Poland thanks to 18 new investors and their successfully completed FDI projects supported by PAIiIZ. They all can let to the creation of nearly 4,933 new jobs in the future.

Currently, PAIiIZ supports 152 ongoing investment projects worth €2,997.45 m that should create over 31,700 new jobs. The Agency provides 38 projects from the United States, 29 projects from Germany and 10 from the UK. The leaders are followed by investments from France and Japan (9 projects each) as well as by China, India, Sweden and South Korea (6 projects each).

The majority investments come from BPO (32 projects), automotive (29 projects) and R&D (11 projects), aviation (10 projects) and electronic and wood  sectors (8 projects each).

More information: www.paiz.gov.pl/20140512/18fdi_projects_completed  (PAIiIZ)

New investments in the WSEZ "Invest -Park"
Five companies have received permits to operate in Wa³brzych SEZ. In total, they will invest PLN 30.7m and create 43 new jobs.

Polish company Gibowski specialising in the manufacturing and selling candles, will build a production, warehouse and office facilities as well as will purchase new machines. The value of the investment has been estimated at PLN 2.6m. The company also plans to employ 5 people. TFP Grafika, a manufacturer of packaging and displays, will build a warehouse and production hall for the production of glass, plastic, wood and metal displays. The investors will spend PLN 12m and hire 10 employees.

The Japanese company Poland Smelting Technologies "POLST ", a producer of base metals products for the automotive industry, will spend PLN 5m for expanding its machinery park, introducing new, innovative technologies and employing 5 new people. Alphavision printing company will purchase new machinery and due to that will extend its offer of printing on sheets of optical film. By investing PLN 1.1m the company will employ additional 3 people.

ILPEA, from Italian, will create 20 new jobs and spend PLN 10m on building production plant with warehouse facilities where magnetic tapes, rubber, plastic and metal elements for the house hold goods, automotive and construction industries will be produced.

Currently, 150 investors with mainly Polish, German and Italian capital operate under the WSEZ. They all have already hired over 36,000 people and invested PLN 16.3 billion. In terms of sectors, automotive, house hold goods and food processing industries predominate among WSEZ’s investors. (WSEZ "Invest-Park")

Thai investor in the Pomeranian Special Economic Zone
Indorama Ventures received a permit to operate a business. The company will invest over PLN 100m and employ 30 new jobs in Pomeranian SEZ.

Indorama Ventures Poland will expand its factory of PET pellets in W³oc³awek and introduce innovative technology to the production process.

The company Indorama Ventures has its origins in Thailand. It is the world's largest producer of PET pellets. (PSEZ)

Ericpol increases employment
By the end of the year, Ericpol plans to employ 250 people. Demand for new employees is due to the increased activity of the company in the public procurement market and to the expansion on DACH markets (Germany, Austria, Switzerland).

Ericpol has invested PLN 60m to build new headquarters in £ód¼ under the £SEZ.


£ód¼ Special Ekonomic Zone (Source: £SEZ)

Ericpol is one of the leading Polish ITC companies offering IT consulting and providing dedicated solutions for telecommunication, medical banking and finance sectors. Ericpol has 3 offices in Poland. (Ericpol)

MACROECONOMIC POLAND

  • Exchange rates (as of 15.05.2014):

Buy

Sell

USD

3.0244

3.0854

EUR

4.1476

4.2314

Source: www.nbp.pl

EVENTS

Meeting with Chinese engineering industry
On 26 May PAIiIZ holds a matchmaking meeting with the Chinese delegation representing machinery sector. The event starts at. 10.00.

The delegation of China Chamber of Commerce for Import and Export of Machinery & Electronic Products (CCCME) includes 13 companies representing the engineering and mining sector in China.

Companies interested in participating should register on-line until 20 May by: www.gochina.gov.pl/CCCME

The companies’ description is available on:
www.paiz.gov.pl/20140526/meeting_with_chinese_engineering_industry (PAIiIZ)

Zhejiang - Poland Matchmaking Forum
On 27 May, Warsaw's Hilton Hotel will host the Zhejiang-Poland Matchmaking Forum. The Zhejiang Provincial Governor and the Polish Ministry of Economy are patrons of the event.

The Forum's programme includes sessions of individual business meetings between Polish and Chinese entrepreneurs from Zhejiang.

Companies interested in participating should register by www.gochina.gov.pl/Zhejiang_forum.

The China Council for the Promotion of International Trade (CCPIT), PAIiIZ and the Embassy of China are the organisers of the Forum.

More information: www.paiz.gov.pl/20140527/zhejiang_poland_matchmaking_forum (PAIiIZ)

5th ABSL Conference
PAIiIZ is the honorary patron of the 5th ABSL Conference that will take place in Poznań on 22-24 May. Madeleine Albright, former US Secretary of State will be the guest of honour of the event.

The main theme of the 5th ABSL Conference will be "Poland - taking on the world!".

Participants of the event will discuss about all aspects of business decision-making.

More information: www.absl.pl/pl/conference-2014 (Linkleaders)

4th Forum of Human Resources in the automotive sector
During this year's HR Forum in the automotive sector issues related to recruitment, selection and employment planning, training and development of staff, as well as methods in management, motivation and increasing the efficiency of employees will be discussed. The meeting will be held between 22-23 May in Jawor near Bielsko-Biala.

During the two-day meeting, participants will be provided with case studies, prepared by the heads of HR in key automotive companies operating in Poland.

The meeting has been arranged by AutomotiveSuppliers.pl. PAIiIZ is the patron of the event PAIiIZ.

More information: www.hrwmotoryzacji.pl (AutomotiveSuppliers.pl)

Towards South America
On 27 May at 10.00, National Stadium will host the workshop on investment opportunities in South America.

During the meeting all participants will look at the prospective sectors for Polish companies interested in investing in or trading with South America. They will also talk about ways of providing  support for Polish exporters and investors by Polish diplomacy. Case studies of Polish companies  that have been successfully developing business in South America, including KGHM, Polska Mied¼ or Selena will be presented there.

More information:
www.konferencje.pb.pl/konferencja/814,polskie-firmy-ruszaja-za-granice-kierunek-ameryka-poludniowa (PB)

ReDI - Retail Destination Initiative
Between 28-29 May, National Station will host ReDi Trade Fair. PAIiIZ took patronage over the event.

ReDi Trade Fair is the European platform of meeting and discussions of representatives of cities, tenants and developers who want to develop in the Central and Eastern Europe region. The event consists of presentations and panel discussions of mayors, representatives of shopping centers’ and retail chains’ in Europe and retailers planning to enter the Polish market. The Fair has been prepared by the Polish Council of Shopping Centers (PRCH).

More information: www.prch.org.pl (PRCH)

The Health Tourism Show
On 10-12 July, for the fifth time London will held The Health Tourism Show.

The event is dedicated to promoting medical treatment abroad, as an option for those who can not afford to use the health care system in the UK or want to use medical services outside the country.

Last year's show was visited by 10,000 visitors. The event brings together representatives of medical institutions, spa towns, medical doctors of various specialities, medical agents representatives of medical tourism, as well as tourist agencies and hotels.

Companies interested in participating in the Polish exhibition stand should contact:karolina.dresler@paiz.gov.pl.

More information: www.paiz.gov.pl/20140710/health_tourism_show_en (PAIiIZ)

ANALYSES AND REPORTS

Foreign trade
According to preliminary data published by Polish central statistic office (GUS), in Q1 2014, Polish exports of goods was higher by over 6.8% compared with the same period last year and reached €39.6 billion. On the other hand, an import increased to the level of €39.3 billion and was higher by 2.6% y/y.

Last year, €-1.2-billion trade deficit has been converted into a €-292- million surplus. After the first quarter of 2014, exports to developed countries increased by 9.6% to €33.4 billion, while imports grew by 1.4% reaching €25.4 billion. As a result, the surplus of trade with this group of countries has increased by almost €2.6 billion to €8 billion.

The exports to the European Union increased faster than to the entire group of developed markets (the increase by 10.1%) reaching about €30.6 billion. Among the major EU countries the greatest increase of exports has been recorded by Spain (27.2%), Sweden (19.4%), Belgium (17.2%), Hungary (15.2%), Germany (11%), France (8.4%) and Italy (8.1%).


© Victoria-Fotolia.com

On the other hand, exports to non-EU developed markets grew slower year on year (by about 3.9% to about €2.8 billion). United States recorded growth by 0.5%, Canada by 16.1% and South Africa by19.4%.

In terms of products, the biggest increased of exports has been recorded by light industry (15.8% to €1.6 billion) and electromechanical products’ sectors that dominate in Polish foreign trade (by 9.9%, to €15.7 billion). The export of agri -food products also recorded a relatively quickly increased (by 7%). The decrease in foreign trade was noticed by mineral producers (by 6.1 %) and metallurgy (1.7%). (MG/CSO)

Industrial production in Poland
According to Eurostat, Industrial production in Poland has grown by 5.5% in comparison to the same period last year.

Compared with February 2014, industrial production in March decreased by 0.3% in the euro zone and by 0.2% in the whole UE28. In contrast, in February, industrial production grew by 0.2% and 0.3% respectively.

In the annual comparison, industrial production in the euro zone dropped by 0.1% and increased by 0.5% in the UE28. (Eurostat)

The automotive industry gets stronger
According to the latest PZPM and KPMG report entitled “Branæa motoryzacyjna” (“The Automotive Sector”), in the first quarter of 2014, the sold production of Polish automotive industry grew by 6.8% compared to the same period last year and reached the value of PLN 28.3 billion. The increase has been influenced by the production of both - motor vehicles and automotive components and accessories.

The visible signs of economic recovery in the EU market directly impacts on the number and the capability of automotive factories located in Poland. The segment of components and car accessories is getting stronger. However, the European vehicle production is stagnating. In 2013, the exports of accessories and engines grew by 7.1% and reached €15.5 billion. The most significant exports’ increase has been recorded in glass for vehicles (by 43%), sub-assemblies and electrical parts (by 15.3%), mechanical parts of internal combustion engines (by 9.7%), brake systems (by 14,7%), suspension systems (by 14.9 %), airbags (by 18.6%) and tires industry (by 4.8% y/y). Among the key customers the most impressive exports was recorded by Hungary (18.7 %), Slovakia (15.1 %), the UK (14%), Italy (9.3 %), Czech Republic (by9 % y/y) and  Spain (by 7%).

As experts said, a further increase in exports of components, parts and automotive accessories can be expected even this year. This segment is growing rapidly due to the FDI and reinvestments. In 2013 PLN 4.5 billion (the increase by 13.1% comparing y/y) has been  invested in the automotive industry in Poland. (KPMG / PZPM)

FROM THE REGIONS

Innovative electric bus from Lublin
Ursus, Miejskie Przedsiźbiorstwo Komunikacyjne and Lublin University of Technology, supported by the City of Lublin, created a consortium to cooperate under the project of innovative electric bus. The vehicle will be designed to operate in Lublin.

The cooperation starts with research and development activities that will lead to the creation of a 12-meter low-floor electric bus, powered by lithium-ion batteries able to ride 200 km distance on one set of fully charged batteries.  It is the batteries that will be put externally on both sides of a vehicle that make the bus so innovative. Moreover, the battery system will be easily charged only in 15 minutes at but stops. (Ursus)

Norwegian media group in Gdańsk
Schibsted Media Group - one of the biggest media companies in Europe will invest in Gdańsk. The company has already started recruiting IT programmers to the new unit.

Schibsted Tech in Gdańsk will develop projects related to new media. Gdańsk was chosen by the company as a second location in Poland due to the frequent direct flights to Scandinavia, short travel time and close relations of the city to Scandinavia. Programmers employed in Gdańsk will work for various companies in Schibsted Media Group. As a first step a consultancy unit will be established to assist companies in the media group with realizing short-term development projects.

Schibsted Tech Polska was established in Kraków in January 2012. The company serves as a programming hub for no less than 12 different companies associated with the media group, all of them in Norway and Sweden. (Invest in Pomerania)


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

Click on the icon to download the Newsletter in the PDF format: