POLISH INFOMATION AND FOREIGN INVESTMENT AGENCY
NEWSLETTER
 September 25th, 2014,
 Issue 401

NEWS

Poland shows its assets in the US
On 24 September, PAIiIZ business mission to America led by Agency president Sławomir Majman and deputy president Monika Piątkowska took part in two events: “The Energy Table” and “V4-Google Summit on Digital Economy”.

“We encourage investors from the United States to participate in both kinds of major energy infrastructure investment projects - those ongoing as: the gas port in Świnoujście, the oil port in Gdańsk as well planned ones including the big petrochemical project in Gdańsk", said Mrs Antoniszyn - Klik during "the Energy Table".


Participants of the meeting entitled “The enery Table” (Source: PAP)

“Poland with its well skilled workforce is ready to welcome high - tech investments from the US”, said PAIiIZ president Sławomir Majman during the V4-Google Summit held in Google office (NY) in the presence of president of Poland Bronisław Komorowski and other presidents of member states of The Visegard Group (V4).The event promoted the innovative potential of the Visegard Group member states as well as young, high-tech companies from the region. Over 200 people took part in the event including Polish high - tech companies as: Brand24, Transition Technologies, Biotrustis, SocialWiFi.


V4-Google Summit on Digital Economy (Source: PAP)

On 25 September “The Polish - American Investment Dialogue” will be arranged by PAIiIZ. Over 150 guests including over 30 representatives of the Eastern Poland macroregion will take part in the event.

More information: www.paiz.gov.pl/20140925/innovation_and_energy_poland_shows_its_assets_in_US. (PAIiIZ)

Towards new aviation cluster in Poland
“It is a day of establishing a new aviation cluster in Dolny Śląsk province”, said PAIiIZ president at the aviation conference that took place on Monday 22 September in Lubin (Dolny Śląsk province). “The engagement of business, universities and public administration is needed to achieve the success in building the cluster”, he added.

Poland has one of the largest aviation clusters in Europe called the Aviation Valley. It is located in south-eastern Poland. In addition two other aviation hubs operates in the country, those are: Wielkopolska Aerospace Cluster in Kalisz and Silesian Aviation Cluster in Bielsko- Biała). Lubin has all of assets to be Poland’s next aviation hub. Such companies as: HS Wrocław, Becker Avionics, GE Aviation - Unison Components or Microtech International have chosen Dolny Śląsk to develop their business there. During the conference "Lubin - new opportunities for the development of the aviation industry" incentives necessary for establish the aviation cluster in Lubin, support for the development of the aviation industry in Poland, the development of local R&D sector and the adaptation of education offer and local staff to needs of the sector were discussed.


Sławomir Majman: “It is a day of establishing a new aviation cluster in Dolny Śląsk province”

According to PwC, Poland is the fourth in Europe and the eighth country in the world in terms of investment attractiveness for the aviation sector. 130 companies from that sector operate in the country, 90% of them represent industrial production for exports.

Between 2004 - 2013 PAIiIZ supported 11 FDI from aviation sector with a total value of €207,5 m. and total amount of over 1,600 planned new jobs. Currently, the Agency helps to establish 12 new projects, worth €319 m. After implementation of these projects 1,481 people should find an employment.

More information: www.paiz.gov.pl/20140922/towards_new_aviation_cluster_in_poland. (PAIiIZ)

Entrepreneurship without borders
"10 years of entrepreneurship without borders" is the motto of this year's The Fourth Congress of Small and Medium Enterprises in Katowice, which is co-organized by the Polish Information and Foreign Investment Agency. In the inaugural session “Europe 2020 - summary of experiences, challenges and development opportunities for enterprises” PAIiIZ was represented by deputy president Anna Polak - Kocińska.

Panellists discussed results of the implementation of the Europe 2020 Strategy. The session was moderated by Jerzy Buzek, former prime minister of Poland and former president of the European Parliament. By implementing the Europe 2020 Strategy, the European Union promotes innovation, education and support for SMEs. New Multiannual Financial Framework 2014-2020 gives Poland the highest amount of money to distribute, € 82.5bn. As PAIiIZ deputy president Anna Polak - Kocińska pointed out, 40% of all funds will be distributed on the level of local governments. She admitted that Polish SMEs generate nearly three quarters of the Polish GDP and are the driving force of the Polish economy. Polish small and medium enterprises are mainly active in trade and services sectors (76%), less likely in construction (13,4%) and industry (10,6%). Currently, besides automotive projects, BPO and R&D sectors are the most significant among all projects supported by PAIiIZ. In 2009-2013, PAIiIZ completed 28 R&D projects. The total value of all of them reached €134,63m. Together they can create 3,700 new jobs.

More information: www.paiz.gov.pl/20140922/entreprenuership_without_borders. (PAIiIZ)

Polish design awarded in Zagreb
The 21th “Designed in Poland” exposition held in Avenue Mall Zagreb has just finished. Exhibition in Croatia attracted many thousands of visitors. As the best piece of the exhibition, the Croatian audience has chosen project made by one of the most recognizable Polish designers - Tomek Rygalik.

During the exhibition, the audience has chosen “Hidden” sofa as the best piece of the exposition. “Hidden” was designed for Polish company Iker by one of the most famous Polish designers - Tomek Rygalik.


Hidden sofa - the winner of the Designed in Poland exposition in Zagreb

Croatians also appreciated the classic porcelain figures that have been produced since 50 year by Fabryka Porcelany AC Ćmielów. Those little masterpieces are listed on Poland’s 20 best Icons of Design. Also dresses made by Polish fashion designer Michał Starost occurred to be one of the most interesting elements of the exposition. His products are famous among clients from London, Vienna and Paris. The “Designed in Poland” is a prestigious event project which presents and promotes Polish modern art and design. Event is arranged in various countries by PAIiIZ since 2005. Exhibition in Zagreb was organised together by PAIiIZ and Trade and Investment Promotion Section of Polish Embassy in Croatia.

More information: www.paiz.gov.pl/20140924/polish_design_awarded_in_zagreb. (PAIiIZ)

From Belarus to China
First Eastern Economic Congress in Białystok - one of the largest economic events dedicated to development of Eastern Poland - has started. On behalf of PAIiIZ, president Sławomir Majman, discussed the expansion of Polish companies in Eastern Europe and Asia.


Panelists of The First Eastern Economic Congress in Białystok (Source: PAP)

Despite the geopolitical factors - the Russian embargo and the Ukraine crisis, Polish exports between January-July2014 was higher by 5.5% compared to the previous year. “Not a decline in trade with Russia and Ukraine, but low level of trade exchange with those countries is a real problem of Poland”, argues president Majman. However, to expand their activities, Polish companies should consider expansion to developing countries where absorption capacity of markets is increasing. Moreover, Mr Majman suggested that also Belarus to China should be considered as a long-term goal of Polish economic expansion. According to HSBC data, by 2030 China will be the fifth direction of Polish exports.


Panelists of The First Eastern Economic Congress in Białystok (Source: PAP)

"Partnership for development. Europe. Poland. East" is the main highlight of the first Eastern Economic Congress. Several dozens of debates have brought together more than thousand people there.

More information: www.paiz.gov.pl/20140918/from_belarus_to_china. (PAIiIZ)

INVESTMENTS IN POLAND

PAIiIZ investment projects
173 is the number of projects currently run by PAIiIZ. The total value of all of them is €3402.8m. Together they can create 37,602 new jobs. What is more, during last two weeks 6 new projects have been added to PAIiIZ portfolio.

United States dominate in terms of the country with the biggest number of FDI in Poland. PAIiIZ supported 53 American investment projects with total value €967.4 m. Thanks to them in the future 8,190 new jobs should be created. Next is Germany with 26 investments project (worth € 400,55m; 6,805 planned new jobs). On the following places there are investors from France and United Kingdom 11 projects each) each, India (8 projects) and China (7 projects).

In terms of supported sectors BPO (38 projects, worth € 30.9m; 11,505 planned new jobs) is a leader. It is followed by automotive (32 projects, worth € 990.25m; 8,172 planned new jobs) and R&D (16 projects, worth €60.3m; 1,676 planned new jobs), aviation (12 projects), wood (8 projects), electronic and food (each 7 projects) sectors.

Since the beginning of the year, 34 investors completed FDI projects with PAIiIZ support. In total, they will invest € 1,724.74m. They have also declared to create 6,320 new jobs. (PAIiIZ)

Ursus already in Ethiopia
The first part of ordered tractors from Ursus has left Poland to Ethiopia.

Under the agreement signed between Ursus from Lublin with Metals and Engineering Corporation (METEC) of the Federal Democratic Republic of Ethiopia, Ursus will deliver 3.000 tractors to Ethiopia. The Polish company will also equip cervices centres of the Ethiopian partner and provide it with spare parts. (Ursus)

Cooperation between science and business
Miranda 2 and Miranda 3 - two companies which belong to Lubawa Capital Group, will invest PLN 34,5m and create 100 new jobs in Kamiennagóra Special Economic Zone for Medium Business Plc.

Miranda 2, has modernized production facilities located in Kamienna Góra and under the investments plans to quip them in pneumatic looms and knitting machines. It will manufacture raw textiles and knitwear, which will be used by advertising and automotive industries. It will also produce mask systems for military issues. On the other hand, Miranda 3 will buy the equipment for completion and confection of produced textiles and knitwear. The company is developing its specialization in powder coating, staining and printing with screen printing method.

Kamienna Góra plans to become a textile and knitwear production centre. Additionally Vocational and High School Complex will educate textile producers and textile machine operators. All parties will benefit from this cooperation - students by achieving a specific occupation and employers by gaining skilled employees. New investments in KSEZ will be connected with emerging Education Zone Cluster which will adjust educational offer to various expectations of employers. (SSEMP)

New workplaces in Kielce
Polish company Transition Technologies has opened centre for innovative IT solutions in Kielce.

Currently 10 programmers are employed in the company’s office in Kielce. However, this number will grow to 30 people by the end of the year. Moreover, within two years, Transition Technologies plans to increase the employment to 150 professionals - mainly JAVA programmers who will work for the international automotive companies in Europe such as Ferrari, Honda, Continental and Renault. (www.tt.com.pl)

MACROECONOMIC POLAND

  • Exchange rates (as of 25.09.2014):

Buy

Sell

USD

3.2306

3.2958

EUR

4.1298

4.2132

Source: www.nbp.pl

EVENTS

China Yiwu International Commodities Fair
Supporting Polish-Chinese cooperation, PAIiIZ invites you to participate in a trade mission to 20th China Yiwu International Commodities Fair. The fair takes place between 21-25 October.

The participation in China Yiwu International Commodities Fair is an opportunity for Polish business interested in the Chinese market to establish contact with partners in the Far East.

The number of participants is limited. Applications will be accepted until 30 September; the form is on:

www.gochina.gov.pl/YIWU_2014.

Cooperation with Chinese local authorities
On 26 September, Łódź hosts a meeting on the Experiences, Perspectives and Challenges in cooperation of Polish-Chinese local administration”. PAIiIZ took the patronage over the event.

The purpose of the meeting is to present the specifics and the role of local authorities in mutual Polish - Chinese cooperation.

More information (Polish version only): www.lodzkie.pl/aktualnosci/rss/konferencja-w-%C5%82odzi-o-wsp%C3%B3%C5%82pracy-samorz%C4%85d%C3%B3w-z-chinami. (The City of Łódź)

Poland-Korea Economic Forum
PAIiIZ took the patronage over the Polish-Korea Economic Forum. The meeting will be held between 29 and 30 September at the Marriott Hotel in Warsaw.

Participants of the forum will discus investment opportunities of Poland and Korea, bilateral economic relations in the areas of trade, investments and public procurement. Korean companies participating in the Forum represent such sectors as: infrastructure, environmental protection, energy and ICT.

More information: http://kotrawarsaw.wix.com/forum. (PAIiIZ)

Opportunities of cooperation with Africa - 2nd POLANDAFICA CONGRESS
On 9 October at 11 PAIiIZ hosts the conference regarding opportunities of cooperation with African countries. The meeting will precede the most important event regarding mutual cooperation - the 2nd POLANDAFRICA Congress in Łódź.

During the meeting in PAIiIZ, organisers of POLANDAFRICA Congress will provide participants with the highlight of the incoming Congress. Opportunities of business expansion to markets outside Europe, especially African ones will be also discussed. The registration to the meeting is available online at: www.paiz.gov.pl/PolandAfrica2014.

Between 6-7 November Second POLANDAFRICA Congress will be held in DoubleTree hotel in Łódź. The aim of meeting is to develop business relations between Poland and Africa, in particular with countries which participate in Go Africa Programme. The event is organised by Central Poland Chamber of Commerce-Lodz in cooperation with African Institute, Łódź Regional Development Agency and PAIiIZ.

Applications for participants is available at www.polandafrica.pl until 31st of October.

For more information please visit www.polandafrica.pl. (PAIiIZ RIG)

“Teraz Polska Promocja” MA thesis contest
By 17 October 2014, authors of the MA thesis on various aspects of promotion of Poland can submit their access to competition „Teraz Polska Promocja” for the best master's thesis on the promotion of Poland. The winners will receive cash prizes. Moreover best MA thesis will be published and their authors will be invited to internships and trainings.

The competition is open to authors of MA thesis on all issues related to the promotion of Poland including: tourism, branding, economy, agri-food, sports, culture, science as well as foreign promotion of the country.

„Teraz Polska” Foundation together with Polish Information and Foreign Investment Agency, Polish Tourist Organization and the Polish Agency for Enterprise Development organise competition for the eight time.

More information (Polish version only): www.terazpolska.pl/pl/konkurs-teraz-polska-promocja. (Fundacja Polskiego Godła Promocyjnego)

ANALYSES AND REPORTS

China - economy based on innovations?
China, with its 1.3 billion population and GDP reaching US$ 9,000 per capita, is the second biggest global economy. In order to sustain this trend China has to change profile to a more innovation-based economy, write authors of “Competitiveness: Catching the next wave. China”, report made by Deloitte.

Experts forecast future China GDP growth of no more than 6.6% per year between 2015-2018, in comparison with 12% in recent years. In 2013 there was an increase in GDP by 7.7%. First signs of a slowdown are already visible. These include excessive debt, slowdown of investment in infrastructure, increase in labour costs, demographic problems, manifested by an aging population and a dwindling number of people of working age.

Over the last decade, China has transformed its economy into more innovative one. Rankings compiled by the World Economic Forum indicate that China today performs reasonably well relative to other nations in its level of R&D spending, ranking 22nd, and its capacity for innovation, where it is ranked 30th, although it continues to lag some of its more technologically advanced Asian peers, including South Korea, Taiwan, and Japan. According to the U.S. National Science Board, China today accounts for the second-largest share of global R&D spending, exceeding each nation of the European Union.

According to authors of the report China should give up the labour-intensive and capital-intensive economy for the knowledge and innovation based. A key element to ensure China’s continued competitiveness and economic prosperity is to open further to foreign investment. Liberalizing the capital account would entail allowing freer movement of investment across borders. This would enable a greater two way flow of capital, both in terms of foreign companies’ penetration of China and Chinese companies’ overseas investments. (Deloitte)


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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