POLISH INFOMATION AND FOREIGN INVESTMENT AGENCY
NEWSLETTER
 March 20th, 2014,
 Issue 374

NEWS

Volkswagen has parked in Poland
On 18 March, Volkswagen has officially announced a new project in Poland. The company will invest about PLN 3.4 billion and employ more than 2,300 people in the newest VW van factory in Września, in Wielkopolska province that will operate under the Wałbrzych Special Economic Zone.

The company chose Września, due to many advantages of this area. The investment plot is located close to A2 motorway and 60 km from Poznan - Ławica Airport. “Volkswagen has trusted the Poles once again”, said Deputy Prime Minister Janusz Piechociński during the ceremony of announcing the investment.


Volkswagen factory in Poznań

In the close neighbourhood of VW factory, smaller plants with necessary infrastructure and a special training centre will be created. The start of construction works of the new factory in Września is planned for the autumn this year. The production of VW van vehicles should begin in 2016. The project will cost an impressive value of PLN 3.4 billion (about €800 m). More than 2,300 people will be hired there.

Volkswagen's investment project has been supported by PAIiIZ.

More information: www.paiz.gov.pl/20140318/volkswagen_has_parked_in_poland. (WSEZ/PAIiIZ)

South Africa - the gateway to Africa
“While planning to invest in Africa, you can’t omit investing in South Africa - argued deputy minister of economy Ilona Antoniszyn - Klik, during the Poland - South Africa Economic Forum held on Friday, 14 March in Warsaw. Vice-president of South Africa Kgalema Motlanthe was the guest of honour of the event. He paid a visit to Poland together with South African entrepreneurs.

Mrs Antoniszyn - Klik remained to the audience that for Polish businessmen South Africa is the most important economic partner in the whole Africa. Comparing to the region, the country has a well developed business culture and advanced automotive, legal and financial sectors. South Africa has also one of the leading stock market is the world. Moreover, it is also a regional logistics hub. Business opportunities are waiting for Polish investors in the automotive industry, tourism, renewable energy, biomedicine, jewellery industry and even in the fashion business.


Sławomir Majman welcomes the Forum’s audience

African entrepreneurs also believe in the success of the mutual cooperation. For Poland, South Africa is “the gateway to Africa”, argued Johannes Hlongwane representing the National African Federated Chamber of Commerce and Industry (NAFCOC). He also said that for South African entrepreneurs, Poland is an attractive market.

“Poland is in a group of 50 countries with which we have the biggest trade relations”, said Yunus Hoosen, director of Investment Promotion & Facilitation, Trade and Investment South Africa. The guest of honour of the Forum, vice-president of South Africa, Kgalema Motlanthe said that signing a tripartite agreement between South Africa, Poland and another African country is also planned. Mr Motlanthe also stated that South Africa is interested in the know - how exchange, especially in maritime transportation that Poland is advanced in.


- South Africa is interested in the know - how exchange in maritime transportation that Poland is advanced in - argues vice-president of South Africa Kgalema Motlanthe

After the official part of the Forum, B2B meetings were held. They were attended by over 160 representatives of the Polish business and more than 50 representatives of the South African business. Poland - South Africa Economic Forum has been arranged by the Ministry of Economy, PAIiIZ and TISA. The Agency was represented by PAIiIZ president Sławomir Majman, who opened the event. One day before the event representatives of TISA and South African entrepreneurs visited Solaris Bus & Coach, CenturyLink Technology, General Motors, Farmur, Kopex and Izodom 2000, which do operate in Poland. They also paid a visit in Katowice Special Economic Zone and the Łódz Regional Development Agency.


African businessmen visiting KOPEX company (source: H. Smoliński, KOPEX)

More information: www.paiz.gov.pl/20140314/south_africa_gateway_to_africa. (PAIiIZ)

Moldovan journalists discover potential of the Polish economy
Representatives of the main Moldovan media came to Poland. The media trip precedes the official visit of Polish prime minister Donald Tusk to Kishinev that will be held on 28 March.

On 19 March, representatives of Moldovan media visited PAIiIZ. They met with PAIiIZ president Sławomir Majman. The process of transformation of the Polish economy and politics was the main highlight of the discussion. Both parties also looked at Polish investments in Moldavia. Currently, more than 50 companies with Polish capital are present there. One of the biggest Polish investments in Moldavia is Polski Cukier, which has already invested $15m there. According to the Ministry of Economy, prospective sectors of cooperation between Polish and Moldovan businesses are renewable energy, green technologies, environmental protection, agriculture and agriculture food industry, products and technologies. The visit has been organized by PAIiIZ and lasts until 22 March. (PAIiIZ)


Moldovan journalists visiting PAIiIZ

More information: www.paiz.gov.pl/20140319/moldovan_journalists_discover_potential_of_polish_economy.

INVESTMENTS IN POLAND

Seven projects more
Currently PAIiIZ runs 163 investment projects worth €3,153m, which in the future can create 31,309 new jobs. It means that on the Agency’s list there is 7 projects more than during the same period last year.

United States, Germany and Japan lead in terms of the number of FDI projects provided in Poland with PAIiIZ support. BPO is the most popular sector among foreign investments. On the next positions there are: automotive, R&D, and aviation industries.

Since the beginning of 2014, the Agency has completed seven projects with a total value of € 320.64 m. Due to all of them at least 653 people can be hired.

More information: www.paiz.gov.pl/20140317/seven_projects_more. (PAIiIZ)

Two SEZs are getting bigger
On 18 March, Polish government issued a regulation extending the boundaries of two Special Economic Zones: the Pomeranian SEZ and Kostrzyńsko - Słubicka SEZ. Due to that Pomeranian Special Economic Zone will cover 1,452 hectares, while Kostrzyńsko - Słubicka will increase to 1,715 hectares.

Changes of boundaries in Pomeranian SEZ should lead to the creation of over 270 new jobs in the area and to maintaining the existing 1386. In the increased by 151 hectares Kostrzyńsko-Słubicka SEZ, it is expected that the number of new jobs will grow even by 4400 during next years. Moreover, the value of all new investments in KSSEZ area should reach about PLN 1292.50m. Private plots in Krosno Odrzańskie and Wągrowiec will also enter to the zone to support two, incoming investment projects. The first one is Homanit Krosno that is a fiberboard’s manufacturer. The company plans to invest PLN 211,60m and create at least 20 new jobs. Under the second new investment, worth PLN 93.10m, Polinova Poland an upholstered furniture plant in KSSEZ will be introduced. (ME/CPM)

New investment in Kraków Technology Park
Radionka received a permit to operate in the Kraków Technology Park. The entrepreneur will invest nearly PLN 10 m and create at least 4 new jobs.

Under the project, an office building will be build. The company will also buy diagnostic equipment and introduce the R&D programme.

Radionka is a manufacturer and supplier of radio communications equipment for railways. The investor cooperates with AGH Univesticy of Science and Technology in Krakow. This partnership allows the company to implement modern and advanced technical solutions. (KTP)

MACROECONOMIC POLAND

  • Exchange rates (as of 20.03.2014):

Buy

Sell

USD

2.9873

3.0477

EUR

4.1551

4.2391

Source: www.nbp.pl

EVENTS

13th China International Consumer Goods Fair
PAIiIZ invites Polish entrepreneurs to participate in the 13th China International Consumer Goods Fair on 8-11 June in Ningbo.

Central and Eastern European Countries' Products Expo 2014 is the most important highlight of the fair. During the event, exporters from the CEE region will display their products and will take part in a conference on trade and investment cooperation and cultural exchange. The event will be attended by ministers of Poland and China.

The organizers will cover the cost of trade stands and costs of transportation in China.

Companies interested in participating in the fair, should fill the online form at www.gochina.gov.pl/CICGF_2014_Ningbo by 31 March. (PAIiIZ)

Logistic Hub Silesia
Silvia Gold Hotel in Gliwice invites to the 3rd “Hub Silesia: logistics as a driver of the region’s economic growth”. The event will be arranged on 26 March. PAIiIZ is the official patron of the meeting.

Conference participants will discuss the ways logistics shapes economic landscape of Upper Silesia and its image on the international arena. Panellists will analyse both recent changes in and opportunities for the city and the region in the context of Poland’s growth in the area of logistics services and with reference to changing consumer market. The City of Gliwice is the organizer and host of the event, and Bluevine consulting is its coorganizer.

More information: www.prospectsinpoland.com. (Poland Today/PAIiIZ)

Polish Outsourcing Forum
On 26 March at 8.00, Polonia Palace Hotel in Warsaw will held the Polish Outsourcing Forum. The event has been organised by Bonnier Business Poland. PAIiIZ took the honorary patronage over the event.

During the meeting, speakers will look at the evolution of the Global Business Services Sector, cooperation in the start - up phase of business and development of IT systems. The meeting also consists of the panel discussion on the future of outsourcing in Poland, during which the impact of such sectors as BPO/SSC/R&D/KPO/ICT/BIFS on the development of Polish regions will be discussed.

The program of the event and registration is available at: www.konferencje.pb.pl. (PB)

ANALYSES AND REPORTS

Exports goes up
According to Polish Statistic Office (GUS), in January, Polish exports increased by 5.7% comparing to the same period last year and reached €12.9m. Imports improved by 0.7% and was marked at the level of €12.7m. As a result, the trade balance improved. The January’s deficit that had a value of €426m, was turned into a €176-m surplus.

In January, exports to developed markets increased by 6.7% to €11 billion, therefore the trade surplus increased by € 850m, to nearly € 3.2 billion.

Among the major EU countries, exports increased the most to Finland (44%), Sweden (31.5%), Belgium (13.1%), Spain (10.7%), France (7.9%) and Hungary (7.5%). Moreover, exports to developed markets outside the UE significantly grew - by 25.7% and reached the value of about €1 billion. Poland strengthened the trade with Norway by 40%, with the USA by14.2%, with Japan by 64 % and to South Africa by about 50%.

Sales of goods to other emerging markets (except Commonwealth of Independent States) increased by 4.1 % to €980 m. In this group, China marked a dynamic increased by 28.4%, so did the United Arab Emirates (by 53.6 %), Algeria (by 2.4-fold ) and Egypt (by almost 60%).

In terms of sectors, the exports of eletromechanical products that predominate in the Polish trade exchange, was the most significant. It grew by 11.7% to € 5.1 billion. Also the foreign sale of mineral products improved by 8.4%, to € 0.7 billion. On the other hand, exports of food and agriculture products increased only by 1.5 % to € 1.6 billion. (ME/GUS)

Poland attractive for manufacturers
In Cushman & Wakefield’s Manufacturing Index 2014 for the best global manufacturing locations, Poland moved up by 3 positions to 13th place in the world and 4th in the EMEA region. The survey was conducted among 30 countries.

Compared to last year's report, Poland has overtaken Sweden, Austria, Great Britain, Japan and France. In Europe, the list of leaders consists of Russia, Turkey and Switzerland. The first place of the report and the title of the world’s best manufacturing location went to Malaysia.

Manufacturing Index 2014 assesses factors likely to affect the successful operation of production facilities in the 30 countries with the largest manufacturing output, as defined by UNCTAD (United Nations Trade and Investment). (Cushman & Wakefield)

Poland improved in HSBC high-tech ranking
According to HSBC forecasts for the world’s biggest "high-tech" manufacturers in 2030, Poland will reach 11th place, overtaking Great Britain, France and Turkey.

In the global ranking of the high-tech manufacturers, Poland has climbed from 21th in 2010 to the 14th place and has overtaken Ireland, Turkey India or Brazil. Analysts argue that such improvement reflect the increase of internationalisation of supply chains. Therefore, to maintain the progress Poland should invest in R&D sector and concentrate on the development of local technology capabilities.


Alexander Raths- Fotolia.com

China has become the major player in the global market for high-tech goods overtaking EU, The US and Japan. However, in 2000, China produced only 6 % of the world’s technology. Now, the country supplies the world with 37% of high-tech goods and soon will reach the level of 50%, argue the experts of Oxford Economics and HSBC. They also expect trade in high-tech goods to outpace growth in total merchandise exports, resulting in the value of high-tech exports increasing more than three-fold by 2030. (www.globalconnections.hsbc.com)

FROM THE REGIONS

Introduction of Bydgoszcz Regional Development Agency
Bydgoszcz Regional Development Agency (BARR) that was invented in November last year, has been officially opened on 12 March. BARR aims to promote the city of Bydgoszcz, to support the business activities and to attract new investment projects that will lead to the creation of new jobs.

The Agency’s mission is to provide all actions that will contribute to the economic development of Bydgoszcz. Thus, BARR will provide comprehensive services for investors, cooperate with companies, business organizations and support SME sector. The Agency will also play a role of economic think-tank centre in the city and the region, cooperating with academic centres, consulting agencies, PAIiIZ and local government and business representatives. (BARR)

DID YOU KNOW...?

Movies - new FDI opportunities for Poland
Central and Eastern Europe has a great chance to attract new kind of foreign direct investments - film blockbusters. Now, it is the perfect moment to enter the game. Revenues of the international film industry are growing and Hollywood is looking for cheaper places to produce over $-100-million budget movies.

World’s film industry is experiencing a time of prosperity. In 2012, total revenues of cinemas around the world amounted to $34.7 billion. It is the 6% growth year on year. However, due to the rapidly rising costs, the production of blockbusters in the American “factory of dreams”, has become unprofitable. Thus the film industry has started to search for new, attractive and cheaper locations and found them in CEE region. Central Eastern Europe can offer not only beautiful, historic surroundings, and lower cost of film making, but also good investment incentives. Among the most popular film destinations there is Hungary, Bulgaria and the Czech Republic. The last one is considered as the Hollywood’s “backoffice” in this part of the world. In 2010, Poland’s southern neighbour introduced a special system of incentives for foreign film investors. It allows them to acquire 20% of return on investment (ROI). In 2013 the Czech government invested $25m in the programme.

Recently, Poland has been chosen by filmmakers mostly form Bollywood, while the last American blockbuster - Steven Spielberg's “Schindler's List” has been made in Poland 20 years ago. Thus, it is the time to acquire new ones. (Bloomberg BusinessWeek)


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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