POLISH INFOMATION AND FOREIGN INVESTMENT AGENCY
NEWSLETTER
June 16th, 2011,
Issue 231-232

TABLE OF CONTENTS

 

NEWS

Ernst & Young: Poland at the forefront of the most attractive investment destinations in Europe

Poland came third in the number of jobs generated by foreign direct investment (FDI) in 2010 - according to an annual survey of Investment Attractiveness of Europe prepared by the consulting firm Ernst & Young. Announcement of the report took place on June 15th at the headquarters of the Polish Information and Foreign Investment.

Last year, Poland recorded the highest increase in the number of FDI projects across Europe - 40% more than in 2009. Experts from Ernst & Young say that Poland made a lasting positive impression on the international scene during and after the crisis - Poland was one of the few economies which successfully tackled the crisis what effectively convinces investors that the investment risk may be lower here than in other EU countries. We have also well-qualified staff - particularly in large cities. It is the large number of students and alumni who speak dozens of different languages that made Ernst & Young open its Shared Services Centre this year in Wroclaw. The centre now hires over 200 people - says Duleep Aluwihare, Managing Partner of Ernst & Young Poland.


From the left: Paweł Tynel, Managing Director at Ernst&Young; Duleep Aluwihare, Managing Partner at Ernst&Young and Sławomir Majman, President of PAIiIZ

This view is shared by the President of the Polish Information and Foreign Investment, Sławomir Majman - Positive results of the survey came as no surprise to me. Poland is still perceived as a leader in the region, it has a huge internal market, educated staff and enviable growth. Thus in the race for investment Poland comes ahead of the Central European group. In the latest edition of the E&Y Survey Poland ranks high in terms of the average size of FDI projects. In 2010 one investment project located in Poland tended to create an average of 86.5 jobs, while in countries that ranked ahead of us in terms of the total number of newly created jobs, it was 29.1 in Britain and 26.6 in France. Last year only Hungarians managed to attract larger FDI projects which created on average 97 jobs per project.

In 2010, foreign investors created in Poland 12.4 thousand jobs - more jobs were generated by FDI projects only in the UK and France. Most of the jobs were created by Americans - 3845 what represented over 31% of all jobs created by FDI in Poland in 2010. Despite the fact that they were running only 10 FDI projects in the country, Korean investors hired more than 1.6 thousand people. Third place in this respect was occupied by German companies (943 jobs) and the fourth by entrepreneurs from the UK (926). Paweł Tynel, Director at Ernst & Young drew attention to the growing role of the Swedish capital - The IKEA Group and its subcontractors are active on the Polish market. The company’s investment in Podlasie is a perfect example of IKEA’s appreciation of the market as the factory created 250 jobs.

In 2010, the largest number of FDI projects in Poland was developed in the electronics/domestic appliances sector as well as in the automotive industry - what resulted in the creation of 2.2 and 1.5 thousand jobs respectively. Third place was taken by business services, through which in 2010 there were more than 830 jobs created.

The Ernst & Young report shows that Europe is the second, after China, most attractive investment direction. The number of FDI projects in 2010 on the Old Continent has increased by a total of 14% compared with 2009 and amounted to 3757. The projects created in Europe over 137 thousand jobs. Americans turned out to be the engine of growth across the continent as the U.S projects generated 37.9 thousand jobs, more than double the number of jobs created by German companies (17.5 thousand). (Ernst & Young)

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Reactive statement on press reports

The Japanese company LOTTE Group, owner of the E. Wedel brand, is ready to implement their plans and continue the Group’s development in Central and Eastern Europe.

Świdnica, which forms part of the Wałbrzych Special Economic Zone, is 3rd on the list of potential locations of the Group’s new factory. To date the company’s cooperation with the Wałbrzych Special Economic Zone, the Polish Information and Foreign Investment Agency and the Ministry of Economy was very effective.

Due to the fact that the company was assured by the Deputy Prime Minister Waldemar Pawlak and the PAIiIZ President Sławomir Majman that further cooperation with the institutions will have a similarly active and positive character, LOTTE plans to pursue its development plans in Poland. (Lotte)

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Employers’ plans - a report of the Research Institute Randstad and TNS OBOP

Employers’ plans in the context of the recently opened German labour market were presented on June 13th, 2011 at the Polish Information and Foreign Investment Agency.

Opinions considering possible difficulties in obtaining workers as a consequence of the opening of the German and Austrian labour market are divided. The majority of surveyed companies (58%) do not expect the opening of the new markets to cause problems. However, a large group (the remaining 42% of respondents) acknowledges that the new situation can contribute to difficulties in recruitment processes.

Regardless of these opinions, the majority of employers say they did not receive signals about their employees intentions to leave work for Germany (86%). Almost every eighth surveyed employer declared that they had received such signals rarely (13%) and only 1% of the respondents admitted that such intentions appear so frequently that they could interfere with the functioning of their company.

Despite the lack of big changes on the labour market, the fear of losing workers in recent months was, for every second respondent, the driving force for the introduction of additional benefits (49%). Such bonuses were used primarily in medium-sized and larger companies. Professional trainings were among the most popular measures used to motivate workers to remain in the company (22%).

A similar share of respondents offered their employees wage increases (20%) or raised granted bonuses (17%). In the second quarter of the year, 40% of surveyed companies decided to increase salaries i.e. 1/3 more than in the previous edition of the survey (29% 02/2011).

For more information please contact:
Katarzyna Gurszyńska, Communication Manger at Randstad,
tel.: +48 695 155 355,
mail: katarzyna.gurszynska@pl.randstad.com.

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ICEX i PAIiIZ signed a Memorandum of Understanding

The Spanish-Polish Cooperation Agreement signed on June 14th, 2011 is the beginning of the joint promotion and business initiatives.

The two-day Polish-Spanish Forum for Investment and Business Cooperation was inaugurated by representatives of both countries: the Deputy Minister of Economy Grażyna Henclewska, Ambassador of Spain in Poland Francisco Fernandez-Fabregas, the PAIiIZ President Sławomir Majman and the Deputy President of the Spanish Institute for Foreign Trade ICEX Fernando Salazar.

Ambassador Fernández-Fabregas indicated Spain’s openness to expand trade relationships with Poland and drew attention to the changing image of the country - Historical relations and events tended to classify Poland as the east of Europe. And yet this country has always been situated in the middle of the continent, has always been a fully European country and always will be - the Ambassador stressed.


The PAIiIZ and ICEX Cooperation Agreement was signed by the PAIiIZ President Sławomir Majamn and the Deputy President of ICEX Fernando Salazar

President Sławomir Majman in his speech encouraged Spanish companies to explore the Polish market and the new Polish society. - International research and surveys show that we are people of common sense and optimism. This translates into what economic conditions we create in Poland for the development of both domestic and international business. We have political and economic stability, dynamic growth, excellent human resources and huge European funds to be used, available also to foreign investors who decide to run projects in Poland - emphasized President Majman. He also informed that Spanish companies, which have so far invested in Poland a total of EUR4 billion, mainly go for projects in infrastructure, production of equipment for the production of renewable energy as well as automotive and BPO sector.

Fernando Salazar the Deputy President of ICEX focused on the need to intensify trade and investment relations between Poland and Spain. He mentioned some of the key sectors which offer most business opportunities to Spanish investors: infrastructure, railway and aviation sectors as well as projects connected with the production of wind energy. - Spanish companies have the know-how and capital. We can adapt to local market and we have much experience on international markets. And here in Poland, in many fields, such as tax law, we feel like at home - said the deputy President of ICEX.

Cooperation Agreement signed between PAIiIZ and ICEX aims to promote the two countries and business opportunities among entrepreneurs in Poland and Spain. (PAIiIZ)

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Invitation to take part in a trade mission to Ukraine

The Embassy of Ukraine in Poland together with the Ukrainian Chamber of Commerce and the State Administration of the Dnepropetrovsk Oblast organize a trade mission to the oblast on July 7-8, 2011.

The trade mission is geared towards the management staff of Polish companies that are interested in finding commercial partners and research opportunities in one of the most developed regions of Ukraine. The organizers invite Polish companies operating in the engineering industry, agriculture, manufacturing, food processing, construction and bio-energy sectors.

Organizers of the mission will arrange an official meeting with the Governor of Dnepropetrovsk Oblast State Administration and with the management of state institutions operating in the Oblast as well as bilateral meetings and visits to leading business enterprises of the Oblast and a presentation of the economic potential of the region and its business conditions.

Each company will be approached individually, both in terms of business partners selection and in the context of the organizational conditions of the stay in Ukraine. For more information concerning the mission please contact: Anastasia Weżnewets, tel: +48 530 062 030. To register please send a notification via e-mail at: borodiy@ukraine-emb.pl. (Embassy of Ukraine in Poland)

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Information seminar on the Economic Promotion Program of Eastern Europe

PAIiIZ and the President of Przemyśl have the pleasure to invite you to the seminar which is geared towards entrepreneurs and local government units.

The seminar will be held on June 21st, 2011 in the Krasiczyn Castle Complex. The meeting will be attended by the Minister of Regional Development Elżbieta Bieńkowska and representatives of PAIiIZ and the City of Przemysl. The seminar program and registration form are available at: www.paiz.gov.pl/seminarium_informacyjne_polska_wschodnia_krasiczyn. (PAIiIZ)

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INVESTMENTS IN POLAND

Foreign direct investment in Poland on the increase - latest data from the National Bank of Poland and PAIiIZ

Data on this year’s FDI inflow to Poland is very positive. Prospects for FDI inflow in the whole 2011 look promising.

FDI inflow after the first 4 months of the year totalled EUR 5.9 billion. i.e. 23% more than in the same period of the previous year. The figure accounts for 81% of the whole 2010 FDI inflow to the country.

In April balance of foreign investment in Poland was positive and amounted to EUR1.5 billion (EUR 1476 million). This balance comprised: net inflow of equity capital to Polish direct investment enterprises (EUR 742 million), positive reinvested earnings (EUR 670 million), and net inflow of debt instruments (EUR 64 million). The high level of inflow of equity capital indicates that investors start new projects.

As of June 10th, 2011 the Polish Information and Foreign Investment Agency (PAIiIZ) has been running 154 investment development projects worth EUR 5599.86 million which are estimated to generate 36 332 new jobs. The greatest number of projects come from the USA (36), the UK (15), South Korea (14) and China (13). Among sectors it is the automotive sector (25) that results to be the most popular. It is followed by the BPO (24) and the machine sectors (14).

This year PAIiIZ managed to successfully close negotiation processes in 23 projects worth EUR 829.2 million which will create 6084 new jobs. (PAIiIZ)

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Japanese investment in Katowice - Yamazaki Mazak Technology Centre

Yamazaki Mazak, the world's largest producer of machine tools for metal cutting, constructs a technology centre in Katowice.

In 2004 at the beginning of its operations in Poland Yamazaki Mazak chose Katowice due to the location of major Polish industry units, good communication context of the city and the access to highly skilled engineering staff. Today the Poland-based section of the company employs 21 people in the departments of trade, technology and service.

The new Technology Centre, which Yamazaki Mazak Corporation also decided to locate in Katowice, will become not only the distribution and service centre for machine tools, but above all a place where the company’s latest technologies in metalworking will be implemented as well as a place where Polish specialists will get professional training. The Centre's activities will focus on technical and technological support for users of machine tools produced by Yamazaki Mazak and on the organization of training courses for their buyers and users. - We really wanted to attract thet Yamazaki Mazak here because it is a company active in high-tech industry. We also hope that this project will encourage other Japanese companies to invest in Katowice - says Piotr Uszok, President of Katowice.


Yamazaki Mazak Technology Centre

The new building will consist of two-storey office section area of about 400m2 and a space prepared for the organization of exhibitions (of about 500m2). Japanese firm Takenaka Europe is the general constructor of the building. In fact, the company carries out almost all building projects run by Japanese investors in Europe. Yet the company’s subcontractors are local construction companies from Silesia. The Construction Technology Centre was launched on March 1st, 2011 but the new building will be ready in December 2011. The project was actively supported by the Polish Information and Foreign Investment Agency (PAIiIZ).

Yamazaki Mazak was founded in 1919 in the Japanese city of Nagoya. The Japanese manufacturer of weaving machines was developing relatively quickly and started producing machines for the processing of wood and metal. In the 1960s Yamazaki Mazak entered the international arena, starting to export its products to the U.S. Yamazaki Mazak Corporation, currently in its nine manufacturing facilities (located in Japan, Singapore, China, USA and UK), employs approximately 7,000 employees, of which about 900 in Europe. Yamazaki Mazak is the official supplier to Formula 1 Team Vodafone McLaren Mercedes, supplying machine tools, on which this team’s cars are produced. (UM Katowice).

For more information please contact: Jacob Jarząbek, UM Katowice, tel +48 32 259 38 51 / +48 609 308 975, e-mail: jakub.jarzabek@katowice.eu, PhD. Tadeusz Szczepanik, Yamazaki Mazak Director, Central Europe Department in Poland, tel: +48 32 781 61 02, fax: +48 32 781 06 04, e-mail: TSzczepanik@mazak.com.pl.

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New investment in the Wałbrzych Special Economic Zone

The Zone attrcated three new investment projects.

The Polish PROMATIK starts production of machines and domestic appliances. The investor has committed to invest at least PLN 1.1 million and to increase the current employment level with 4 new persons.
The second investor, ENVO, plans to launch production of steel and metal boilers. ENVO plans to invest PLN 13.1 million. The company will create 34 new jobs.

The Loxley company, with capital from Liechtenstein and Poland, plans to expand the production of doors, door frames, thresholds and other metal products. This is the second business activity permission the company got in the SEZ. Loxley will invest PLN 1 300 000 and hire three new employees.

In 2011 the Starachowice SEZ issued 10 business activity permissions for projects jointly worth PLN 129 071 500 which will create at least 131 new jobs. (Starachowice SEZ)

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MACROECONOMIC POLAND

  • Exchange rates (as of 16.06.2011):

Buy

Sell

USD

2.7241

2.7791

EUR

3.8955

3.9741


Source: www.nbp.pl

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FROM THE REGIONS

PAIiIZ signs cooperation agreement with Częstochowa and Zamość

On June 9th, 2011 the Polish Information and Foreign Investment signed a cooperation agreement with the City of Czestochowa, and on June 15th with Zamość. The aim of the agreements is to promote the economic potential of the cities and thus to increase their chances of attracting new foreign investment.


From the left: Joanna Wolff , Deputy Director of the Regional Cooperation Department at PAIiIZ, Bożena Czaja, Deputy President of PAIiIZ, Marcin Zamoyski, President of Zamość, Tomasz Kossowski, Deputy President of Zomiść

In the agreements PAIiIZ declared to help in the field of professional preparation of investment offer for potential foreign investors. The cooperation includes joint activities which will e.g. help the cities be more professional in providing economic data and in managing data bases. So far PAIiIZ has signed such agreements with Lublin, Rzeszów, Białystok, Olsztyn, Bydgoszcz, Koszalin and Krosno. (PAIiIZ)

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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 99 49, fax: +48 22 334 99 99,
e-mail: redakcja@paiz.gov.pl
Polish Infomation and Foreign Investment Agency www.paiz.gov.pl