POLISH INFOMATION AND FOREIGN INVESTMENT AGENCY
NEWSLETTER
 July 3rd, 2014,
 Issue 389

NEWS

The Economist: Poland’s Golden Age
The Economist weekly has published Special Report on Poland. As the author, Vandeline von Bredow, says “Poland is thriving. Not since the days of the Jagiellonian kings in the 16th century, when Poland stretched from the Baltic almost to Black Sea, has it been so prosperous, peaceful, united and influential”.

When describing the changes in Polish economy, the Report shows performances of few Polish cities. Gdańsk, known as the place of the origin of the Solidarity movement and the location of shipyards in Poland is now facing with the decline of the ship building industry. Thus the city had to reinvent itself as a hub of another, relatively new and fast developing industry: offshoring and outsourcing, says the author. The Polish BSS rector has been described by the Economist as one of the fastest - growing in the CEE region.

The next city mentioned in the report is Wrocław. It was said to be the place that “embodies Poland’s successful transformation and does not have the image problems”. The city, as the whole country, has risen nearly from the total destruction after the WW2 and “now wants to become the specialist hub for R&D.

Read more: www.paiz.gov.pl/20140702/the_economist_polands_golden_age. (PAIiIZ)

Poland - Georgia. Improvement in bilateral cooperation
“We need more bilateral business relations. This Forum should help to develop our partnership”, said Mikheil Janelidze deputy minister of economy of Georgia during the Poland - Georgia Investment Forum that was held on 1 July 2014.

“Economic stability and high quality of human capital as well as low level of corruption describes the best both, Georgia and Poland”, said PAIiIZ president Sławomir Majman who moderated the Forum. According to latest Doing Business report, Georgia is the 8th in terms of ease of starting a business in the world. Moreover, the country promotes itself as the leader of reform in post-Soviet countries.


"We need more bilateral business relations. This Forum should help to develop our partnership", said Mikheil Janelidze deputy minister of economy of Georgia

During the meeting, Giorgi Piertaia representing Invest in Georgia (GNIA) presented investment opportunities in Georgia. Foreign companies are welcome to enter such Georgian sectors of economy as: hydropower, tourism, manufacturing, agri-food and logistics. Poland and Georgia can also benefit from cooperation in business services sector, which in Georgia has a significant share of foreign direct investment (57% in 2013, according to GNIA).

B2B talks, the last highlight of the Forum, were attended by about 90 Polish and Georgian companies. The Forum was arranged by PAIiIZ on 1 June in the Warsaw Stock Exchange.


Panel discussion moderated by PAIiIZ president Sławomir Majman

More information: www.paiz.gov.pl/20140701/poland-georgia_bilateral_cooperation. (PAIiIZ)

Poland is not afraid of Chinese investments
On the occasion of the visit of deputy governor of Shandong Province, Xia Geng and local businessmen to Poland, Shandong - Poland Trade & Investment Promotion and Business Matchmaking Forum was held on 30 June 2014.


- Poland is the most important business partner of China in the CEE region, says deputy governor Xia Geng

„We are not afraid of Chinese investments. We want Chinese companies to participate in the Polish re-industrialisation and to play an active role in new jobs creation in Poland”, said PAIiIZ president Sławomir Majman while welcoming participants of the Forum. As it was stated by undersecretary of State in the Ministry of Foreign Affairs, Katarzyna Kacperczyk, mining industry is one of the most promising sectors of Polish - Chinese cooperation. Two Polish companies - Famur and Kopex - were mentioned by Mrs Kacperczak as an example of successful cooperation between both countries. “China has been and will be a key partner of Poland in the Asian region”, added deputy governor of Shandong Province, Xia Geng.


Ceremony of signing the cooperation agreement

During the meeting, three cooperation agreements were signed: between PAIiIZ and CCPIT Shandong; between Xinwen Mining Group and Kopex; between Hisense International and Top Victory Investments. After the Forum, B2B talks were held between Polish and Chinese companies representing such sectors as: construction, biotechnology, chemical, agricultural, food, energy, mining, machinery, electronics, environmental protection and IT.

More information: www.paiz.gov.pl/20140630/poland_is_not_afraid_of_chinese_investments. (PAIiIZ)

High qualified workforce wanted!
The results of the ninth ManpowerGroup 2014 “Talent Shortage Survey” show that 33% of companies in Poland declare the difficulties in recruiting qualified workforce. It's still less than the world’s average, where the problem of talent shortage is declared by 36% of employers.

In case of Poland, the percentage of companies reporting the lack of qualified staff declined over the past few years. No longer than four years ago, every second company had a problem in finding employees with the most wanted qualifications. Now, every third employer can’t find a proper employee. In Poland, skilled manual workers are the occupation with the biggest lack of workforce. Among the most wanted there are also: welders, fitters, machinists, assemblers, forklift operators, mechanics and electricians. “The employees’ shortage is due to the elimination of vocational training in the Polish education system in the ’90”, commented PAIiIZ president Sławomir Majman. “To remove the shortage of specialists in the production area, more young people should enter technical universities, mathematical and physics and programming faculties. Technical secondary education should also be re-established”, added Mr Majman. The authors also observed a high demand for employees with sales competence. Drivers, as in previous edition of the survey maintained the fifth position of the list.


Speakers presenting results of the survey

More than half of the surveyed companies, both in the world (54%) and Poland (55%) believe that the talent shortage have the medium or high impact on their relationships with customers. It also shapes their competitiveness.

More information: www.paiz.gov.pl/20140702/high_qualified_workforce_wanted_press_conference. (PAIiIZ/Manpower Group)

INVESTMENTS IN POLAND

Kirchhoff celebrates 15 years in Poland and starts new investment
Kirchhoff Automotive is celebrating the fifteenth anniversary of its presence in Poland. During the jubilee ceremony that was held on 27 June 2014, the company officially launched a new investment project in Kirchhoff‘s Mielec factory. The event was attended by representatives of Kirchhoff family who own the company and PAIiIZ deputy president Anna Polak-Kocińska.

Kirchhoff Poland entered Poland in 1999 by opening the car components’ factory in Mielec. The company has also launched a production plant in 2004, in Gliwice. Kirchhoff’s factory in Mielec operates under the Special Economic Zone Euro Park Mielec, where currently more than 900 people are employed and the annual sales reaches PLN 500m. Recently, the company decided to expand the existing production hall and buy new equipment. As a result 20 additional jobs will be created. The total value of investment has been estimated at PLN 24.6m. During the fifteen years of Kirchhoff Polska Sp z o.o. presence in Poland, the company has invested more than €156 m in the Polish market.

More information: www.paiz.gov.pl/20140630/kirchhoff_celebrates_15_years_in_poland. (PAIiIZ)

Business permit for Synthos Dwory 7
On 2 July, Synthos Dwory 7 received new business permits during the official ceremony. The event was attended by PAIiIZ president Monika Piątkowska.

“The Ministry of Economy has created a catalogue of 15 top important sectors that are the ambassadors of Polish economy abroad. Among them there is a chemical industry, which is represented by Synthos Dwory 7”, argued deputy president Monika Piątkowska during the ceremony. “This is a company which enters global markets very bravely and has a strong impact on the recognition of Polish products and a positive image of the country in the world”, she said.


The ceremony of recieving business permit

Synthos Dwory 7 is one of the biggest chemical companies in Central Europe. The company has received three business permits for its new investment projects. Due to that about 300 new jobs will be created. (PAIiIZ)

Lundbeck to launch shared services centre
Danish pharmaceutical company Lundbeck, which specialises in the treatment for brain diseases, will create 130 new jobs in its newly established Business Service Centre in Kraków. The centre will be opened in July at Quattro Business Park.

The centre will support all Lundbeck European locations. The Kraków office will serve customers in Denmark, France, Italy, Spain, Germany and England. Choosing Kraków as a location for Lundbeck’s Business Service Centre illustrates the city's leading position on the global business services map.

Lundbeck develops, produces and distributes treatments for people living with brain diseases. The Polish unit of the company, Lundbeck Poland Sp. z o.o., has been active on the Polish pharmaceutical market since 1999. The project was partly supported by PAIiIZ. (PAIiIZ/Poland Today)

Messner plant gets bigger
Messner has just started building the liquefied gases factory in Turek, under the Łódź Special Economic Zone. The total value of the investment has been estimated at €.30m.


Visualisation of the factory (source: Messer Group)

This is the second production facility of Messner in Poland. The company has been operating on the Polish market since 1992. Currenty, Messner employs 250 people. (Messer Group)

A record number of permits in Łódź SEZ
Łódź SEZ has issued new permits to companies. Only due to the four of the biggest investments provided by: Medana Pharm, Union Industries Poland, Pini Polonia Uno and Superdrob, 905 new jobs will be created. The total value of projects provided by the Four will reach PLN 598m.

Medana Pharma is a leader in pediatric medicines’ and vitamin supplements’ production. The company plans to expand its plants producing liquid drugs and gelatin capsules, as well as to develop R&D centre. Under the PLN-222m - worth project, 15 new jobs will be created.

Another investment is Superdrob, a poultry and meat company which will build new, modern poultry processing and preservation plant as well as magazines and ramps. The company will invest at least PLN 140m and employ 650 people. Union Industries Poland will build a plant for the manufacturers of non-woven hygiene products and medical devices in Radomsko Subzone. The cost of investment has been estimated at PLN 132.5m. 40 new jobs will be created. The investment project in Pini Polonia Uno, which will construct a meat processing facility in Kutno Subzone, is worth PLN 103.5. 200 new jobs will be created.

Another business permissions have been granted to: Cornette Underwear (investment worth PLN 0.5m, 70 new jobs), MGL (investment worth PLN 5.5m, 10 new jobs), WAGRAN (investment worth PLN 3.5m, 15 new jobs), Delia Cosmetics Distribution (investment worth PLN 12.5m, 15 new jobs), Interprint Polska (investment worth PLN 33.5m and 15 new jobs), Sirmax Polska (investment worth PLN 12.5m and 60 new jobs), Coko-Werk Polska (investment worth PLN 22m, 12 new jobs), Drahtzug Stein Łódź (investment worth PLN 828,000 m and 14 new jobs), SISA Polska (investment worth PLN 4m 15 new jobs). In the first half of 2014, Łódź SEZ have granted 36 business permissions.

Companies will jointly invest PLN 922m and create 1 576 new jobs. (Łódź SEZ)

Legnica SEZ in investments
Recently, Legnica SEZ held the ceremony of giving the business permits to investors. Among the biggest investments there are: Volkswagen Motor Poland, Winkelmann and Pittsburgh Glass Works.

Volkswagen Motor Poland plans to adapt its plant in Polkowice to expand the production of smaller capacity engines by producing 1,000 engines a day. Investor also plans to launch three new production lines. The total value of investment will reach PLN 240m. Next big investment in the zone will be provided by Winkelmann for PLN 150m. The company intends to buy new equipment, build new production lines of water heaters and parts for automotive industry. The third on the list is Pittsburgh Glass Works that plans to purchase a new production line for manufacturing car’s laminated glass components. The project is worth PLN 120 m.

In the first half of 2014 Legnica SEZ issued 15 new permits to conduct business. In total, all companies declared the will to invest over PLN 1 billion and the creation of 543 new jobs. (SEZ)

More information: http://lsse.eu/aktualnosci/nowe-zezwolenia-w-lsse-2.

Four permits in Suwałki SEZ
The SSEZ has issued four next business permits. The new investors will spend PLN 245,5 m there.

Malow plans to build a factory for the production of innovative kiosks and metal cabinets. The value of investment will reach PLN 43m. Another company, PHU Okleina in Łomża subzone will build plant for the production of furniture parts. While Impress Decor will spend nearly PLN 190m whose investment is currently. ECO-PROGRESS is going to pay PLN 12.5m for development of its current business activity. (SSEZ)

New inwestor in Starachowice SEZ
NEMEX has recived the permit to conduct business in SSEZ. In Połaniec Subzone the company will build the prefabricated elements for construction business.

The value of the investment has been estimated at PLN 152m. 1000 new jobs will be created due to the investment.

The investment plot in Słupsk SEZ sold
32 hectares of investment area in Słups SEZ have been sold to Kronospan BS from Poznań.

Kronospan BS plans to build a modern woodworking factory there and spend PLN 62m on the newest investment. (The City of Szczecinek)

MACROECONOMIC POLAND

  • Exchange rates (as of 03.07.2014):

Buy

Sell

USD

3.0106

3.0714

EUR

4.1111

4.1941

Source: www.nbp.pl

EVENTS

Polish Game Evening
Polish Trade and Investment Promotion Section in Cologne invites video game industry in Poland to participate in the Polish Game Even. The meeting will be held on 12 August 2014.

The meeting has been arranged on the eve of Gamescom in Cologne (13-17.08.2014r.) - 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: karolina.kozlowska@trade.gov.pl. Participation is free of charge. (WPHI Kolonia)

HR Business Service Centres
Between 16 and 17 October 2014, Kraków will host a conference addressed to managers and specialists representing business service sector and ICT. PAIiIZ took patronage over the event.

The programme of the meeting consists of presentation of case studies and debate on the most crucial topics of the HR in outsourcing indystry. The main highlight of the meeting are trends and prospects of development of the sector in Poland.

Business service centres in Poland are specialising in vast range of services, including: accounting, finance, IT support, R&D, customer service, marketing, consulting and HR management.

More information: www.hrwcentrach.pl. (Advisory Group TEST Human Resources)

FROM THE REGIONS

Łódź province promoted in China
In June 2014, the Regional Office of the Łódź Province and the City of Łódź has been opened in Chengdu, in China.

The project aims to increase the promotion effectiveness of companies form Łódź and to introduce the synergy effect in common activities provided by Łódź Cityhall and the government of the Łódź province while entering the Chinese market. The Office in Chengdu will arrange various actions to promote local companies interested in exporting their products to China. For instance, under the One Open Showroom project, companies form Łódź will have the opportunity to present their offer and samples to the Chinese counterparts and customers. Participation in all projects is free of charge.

More information: www.lodzkie.pl/biznes. (the City of Łódź)


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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