|POLISH INFOMATION AND FOREIGN INVESTMENT AGENCY|
July 24th, 2014,
Governmental support for global expansion
Development of economic diplomacy and the system promoting Polish economy abroad were discussed on 22 July, during the Annual Ambassadors’ Conference. The debate was attended by PAIiIZ president Sławomir Majman, representatives of ministries and ambassadors who represent Poland aboard.
“Polish companies are ready to international expansion”, argued PAIiIZ president Sławomir Majman, during the debate. As the recent GUS (Polish Central Statistic Office) data show, in the first quarter of 2014, the exports of Polish goods increased by 7%, compared to the same period last year. Moreover, popularity of African and Asian markets among Polish companies is rapidly growing. “There is a very effective system of financial supporting for Polish exporters. It bases on EU funds, said Sławomir Majman.
More information: www.paiz.gov.pl/20140723/governmental_support_for_global_expansion. (PAIiIZ)
Eksporter.gov.pl - useful tool for exporters
Eksporter.gov.pl is a public database offering useful information for both - Polish companies interested in global expansion and foreign parties doing business and importing products from Poland. Eksporter.gov.pl is dedicated mostly to SEM’s.
Eksporter.gov.pl bases on the close cooperation with Departments of Trade and Investment Promotion in Polish Embassies all over the world. One can find there macroeconomic data, various databases and information on international tender.
Visit: www.eksporter.gov.pl. (PAIiIZ)
Polish business talks with Guinea
On 18 July, during the meeting at PAIiIZ headquarters, Polish companies discussed opportunities of business cooperation with a delegation from the Republic of Guinea.
The Friday’s meeting between Polish and 13 Guinean companies, was the next highlight of the official visit of Guinean delegation in Poland that begun on 14 July. As Mrs Piątkowska argued, Africa is a land of opportunities and by Polish business the Republic of Guinea is considered as a partner for a long term cooperation, not only in trade and investments, but also in other aspects. She also introduced guests with Go Africa programme. “The effect of the programme have been better then we have ever expected”, she added.
More information: www.paiz.gov.pl/20140718/polish_business_talks_with_guinea. (PAIiIZ)
INVESTMENTS IN POLAND
New rules of public support for investors
On 22 July 2014, the Council of Ministers changed the “Programme for Supporting Investment of Major Importance for the Polish Economy for 2011 - 2020”. The increase of innovation and competitiveness of the Polish economy by promoting direct investments in high-technology sectors is a current goal of Polish government.
The resolution updates the regulatory on providing governmental financial support for investment project implemented in Poland. Until recently, companies representing, electronic, domestic appliances, aviation, biotechnology, and R&D and modern services could apply for public grants. Now, also agri-food sector can benefit from the Programme.
Support can also be applied for by companies planning investments in other sectors if a project’s minimum eligible costs are PLN750m and minimum 200 new jobs will be created or PLN 500m and 500 new jobs (significant investments).
New regulatory is due to new EU regulation in regional aid that that was introduced on 1 July 2014. The total budget of the Programme is PLN 670 m. (Ministry of Economy)
BASF - investment ambassador of Poland
„I hope that BASF will still play a role of the ambassador of Poland, the most friendly country for investors”, said deputy minister Ilona Antoniszyn-Klik during the grand opening celebration of BASF factory in Środa Śląska that was held on 18 July.
The newest BASF investment has been located on Legnica Special Economic Zone. In the company’s factory in Środa Śląska automotive catalysts production will be provided. The plant will be equipped with machinery to manufacture products that meet the Euro 6 emission standards. BASF investment has been supported by PAIiIZ since 2011. “BASF activity in Poland is a real success story”, said PAIiIZ president Sławomir Majman. In BASF factory, 400 new jobs will be created. The total value of the investment reached EURO 150m.
More information: www.paiz.gov.pl/20140714/basf_investment_ambassador_of_poland. (PAIIIZ)
Building STEICO'S factory
On 16 July 2014, STEICO held the foundation stone ceremony of company’s new factory in Czarna Woda. In May, the plot where the factory is to be build, was included into the Pomeranian Special Economic Zone.
In Czarna Woda, STEICO will produce laminated veneer lumber. The company is one of the European leading producers of insulation products manufactured from wood and hemp fibre. 20% of homes in the UK and Scandinavia are built using products made in STEICO Polish factory.
Under the PLN-250m-worth investment, 125 new jobs will be created. The project was supported by PAIiIZ. (STEICO)
Comarch Expands Latin America
Comarch’s BSS solutions for telecommunication market will launch of services in Brazil. The company will offer Brazilian telecoms and consumers cost-efficient services via VoIP technologies.
In Brazil, the company will introduce the complex platform of billing and customer management that enable telecommunications companies to connect with their customers and streamline business operations while achieving maximum efficiency. Comarch BSS Suite features one master database for all types of data and one central dictionary for all involved systems, ensuring consistent data and no redundancy in the configuration.
Comarch is a global provider of complete IT solutions for telecoms. (Comarch)
Polish Energy Partners together with the Chinese
Chinese CEE Equity Partners will buy 16% of Polish Energy Partners assets.
Due to that, the integrated energy group will be introduced. It will be present in all segments of energy market including renewable sources energy as the most important segment for the Group activity. In addition, by 2022 the Group will build wind and offshore wind farms with the total capacity of about 1,000 MW. (www.pepsa.com)
First six months of 2014 in SEZs
The first half of 2014 was very successful for 14 Polish Special Economic Zones. All SEZs have together issued 438 business permits.
The total value of investments that received permits to operate under the zone programme has reached PLN 21billion in this period. They all have together declared creation of 20,500 new jobs in Poland. (www.premier.gov.pl)
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 Gamescom in Cologne (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 exhibitor 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: email@example.com. 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: www.paiz.gov.pl/20141117/big_dubaj_zapraszamy_na_targiand send it to: firstname.lastname@example.org until 18.08 2014.
Development of costal regions
“Development of costal regions” conference is one of the most important event dedicated to the offshore wind energy in Poland will be held on 29-30 September in Słupsk.
Expectations of the offshore industry towards industry organisations concerning a joint and effective action to establish conditions for the development of offshore wind energy in Poland will be discussed there.
More information: www.konferencja-offshore.pl/index.php/en/the-conference. (PSSE)
ANALYSES AND REPORTS
Report on R&D activity in Poland
The number of companies in Central Europe that plan to increase investments on research and development (R&D) in growing. Companies expect changes in the system of investment incentives. They also wish the definition of R&D in Poland to be sharpened and the system of co-financing this sector to be less complicated, say authors of the Deloitte’s "Research and development in Poland. Report 2014”.
The experts argue that providing research and development activities is no longer associated with something groundbreaking. A year ago, 75% of Polish companies considered research and development as working on highly important innovations. Now, only 23.6% of respondents define it this way. It is clear that R&D is becoming a part of doing everyday business and build competitive advantage of a company.
Over the next two years, 47% of Polish companies plan to increase expenses on R&D. In the long, 5-year term, even 61% of them declare the will to invest more in R&D activities. This is a significant improvement comparing to the former Deloitte’s survey. Moreover, this year’s results of Polish companies are much better then the European average: 41% and 57%, respectively.
The Romanians are leading in terms of plans for increasing expenditures on R&D sector. 80% of them will spend more during the next 3-5 years. The key issues for companies that provide R&D project are: the availability of attractive incentive offer, well skilled and experienced staff.
The survey also shows that Polish companies expect changes in the system of tax incentives for R&D sector. 76% of them declare that the introduction of the income tax relief would increase expenses on research and development over the next five years. Respondents also argued that the governmental grant system is too formal and complicated (nearly 39%). (Deloitte)
Poland in Baseline Profitability Index
Poland went up by 5 places in Baseline Profitability Index 2014, reaching 14th location among 112 surveyed countries. It is also the best result among all European countries.
Botswana leads in the Baseline Profitability Index 2014. It overtook over Hong - Kong, Qatar and Singapore. What is interesting, China reached 60th place. In terms of European countries Poland is a leader. Lithuania and Estonia which fallow Poland gain 16th and 18th places, respectively.
Baseline Profitability Index examines eight factors to predict total pretax return investors might expect in countries around the world, including: economic growth, financial stability, physical security, corruption, expropriation by government, exploitation by local parties, capital controls and exchange rates. (Foreign Policy Magazine)
Situation of Polish companies improves
The economic condition in the Polish corporate sector is gradually improving. Forecasts for the third quarter 2014 are more optimistic than in the second quarter, say experts of NBP.
According to the NBP data, in the QII, Polish companies said that their economic condition is better than in the previous quarter. Moreover, 75% of them described it as very good.
During last quarter, the exports forecasts rate increased by 4.5% while the export contracts index decreased slightly by 0.08% (q/q). Therefore, the export growth is highly expected. Its value should increase due to the growing value of contracts, but not to their number. In addition, the situation of exporters is clearly better than the companies selling goods only in the domestic market. Russian-Ukrainian crisis did not affect much the level of sales and economic condition of Polish companies present in these markets.
In the third quarter of 2014, 24,1% of companies (usually big companies, industries and exporters) plans new investments. This is 1.3% more than in the previous period. Investment recovery coincides with the improvement of situation among companies offering investment products.
NBP data also shows that the liquidity of Polish companies is good. Fewer companies face with delays in supplies and services clearing. Also the percentage of companies with large, overdue receivables and liabilities went down. (NBP)
FROM THE REGIONS
753 contracts thanks to EPEPP
Since 2011, under the Eastern Poland Economic Promotion Programme, provided by PAIiIZ, companies for Eastern Poland macro-region have already signed 753 contracts with foreign partners for a total value of over PLN 350m.
Results of the survey provided among all participants of the programme show that since the beginning of the project until May 2014, 753 business contracts have been already singed between Polish companies form the macro - region and their foreign counterparts. The total value of all contracts reached PLN 352,2m. Investments in new equipment needed in new business project worth PLN 23,6m as well as investment in construction of new factories (total value of PLN7,5m) or modernisation of plants (total value of PLN 27,6m) are the next benefits of the Eastern Poland Economic Promotion Programme.
The survey also shows that due to the participation in the Programme, companies from Eastern Poland increased exports by 41%. Also the sales went up by 19% and production increased by 16%. 322 new employees have been hired - the vast majority of them are inhabitants of Eastern Poland.
The Eastern Poland Economic Promotion Programme aims to promote and develop five provinces of Poland: Warmia and Mazury, Podlasie, Lublin and Subcarpathia and Świętokrzyskie. Under the programme, companies from the region participate in trade fairs and investment missions organised by PAIiIZ. (PAIiIZ)
New reports on Polish BSS sector
Pro Progressio Foundation, a partner of PAIiIZ, has issued reports on attractiveness for Business Service Sector in Poland.
A series of reports entitled "Focus on" describe the investment environment of Polish cities. Publications include information on macroeconomic situation of the country, its human capital, business environment, as well as a list of outsourcing companies, level of salaries and information on cultural and entertainment centres of each city.
Report has been issued in four languages: Polish, English, German and French.
Publications are available on:
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,