POLISH INFOMATION AND FOREIGN INVESTMENT AGENCY
NEWSLETTER
 May 8th, 2014,
 Issue 381

NEWS

The European Economic Congress
One of the CEE’s biggest and most important economic event - the European Economic Congress in Katowice has just begun. For the three next days, the main city of the Śląsk province becomes the centre of economic, politics and business events.

On 8 May, a panel entitled “25 years of foreign investments in Poland” has been held at the EEC. PAIiIZ president Sławomir Majman moderating the panel summed up this period together with panel’s participants asking them about the experiences of Poland and their CEE neighbours in encouraging foreign investments? As Mr Majman said, all Polish governments during the period respected the policy of opened doors for foreign capital. Acceleration of FDI inflow to Poland started with accession to the OECD in 1996, than it strengthened due to joining NATO in 1999 and the EU in 2004, noticed the panelists.

The trading and investment opportunities for European investors, the most attractive African regions as well as the balance of Go Africa governmental programme were discussed during the 2nd Africa - Central Europe Economic Cooperation Forum. Panel discussion was joined by PAIiIZ deputy president Monika Piątkowska. As Mrs Piątkowska noted, only the African countries with the biggest potential for economic cooperation that are open for foreign products and services become destinations of trade missions arranged under the Go Africa programme. “While choosing mission’s destination we explore the potential and needs of a particular African country and match the companies from Poland with a suitable offer. All our experience with the Go Africa programme as well as the successes of Polish companies participating in the programme show that we are doing the right thing”, argued PAIiIZ deputy president.


Sławomir Majman summing up the 25 years of FDI in Poland

Also on 8 May, a panel on possibilities of cooperation between Poland and Pakistan has been held. PAIiIZ president Sławomir Majman takes part in the meeting. In 2012-2013, trade between the Poland and Pakistan has increased by 33%. Among the most attractive sectors of the economy of Pakistan there are financial services, IT sector, the BSS.

On 9 May the EEC will held the 3rd European Union - China Forum for Economic Cooperation European Union - China moderated by the President Mr Majman.

Panels were co-organised by PAIiIZ under the 6th European Economic Congress in Katowice. Agency is the official partner of the Congress.

More information:

Investment opportunities for Poland and Luxemburg
“Luxembourg is the most important place for Polish capital investments that today are worth € 9.5 billion - said president Bronislaw Komorowski while opening Poland - Luxembourg Business and Financial Forum. The Grand Duke of Luxembourg stressed that his country could learn a lot from Poland. “I hope that this visit will help companies from Poland and Luxemburg to develop cooperation” - he added. During the event the PAIiIZ president Anna Polak - Kocińska and CEO Chamber of Commerce of Luxemburg, Carlo Helen signed the memorandum of understanding between PAIiIZ and the Chamber of Commerce of Luxembourg has been signed.


Signing the MoU

According to National Bank of Poland (NBP), the value of the investments of companies from Luxemburg companies in Poland reached €18.2 billion at the end of 2012. Due to this, Luxemburg has a 4 position among foreign investors in Poland.

More information: www.paiz.gov.pl/20140508/investment_opportunities_of_poland_and_luxemburg(PAIiIZ)

Exports to China go up
The ceremony of signing MoU between PAIiIZ president Sławomir Majman and deputy director of Bureau of Commerce, Deng Li was one of the highlights of the meeting with the delegation of the city of Qingdao. The event took place on 5 May in PAIiIZ.

Signing the agreement is a next step of the fast-developed business relations between Poland and China. The effects of trade between the two countries show a growing interest of Chinese market among Polish companies. The Polish business is attracted by such Chinese sectors as energy, engineering, IT and telecommunications and household goods. The presence of Polish companies in the city of Qingdao is a good example of successful cooperation between partners from both countries. “Two Polish companies that produce mining machinery operate in Qingdao. They have just begun their business there”, said Mr Majman. By the end of 2013, 11 Polish investment projects have been successfully completed in Qingdao. Their total value reached $380 m.


The ceremony of signing the agreement between PAIiZ and Bureau of Commerce

“Our visit to Poland is the step towards implementation of projects established by the prime minister of China, Li Keqiang. It is also an occasion to find new business opportunities for mutual cooperation”, added party secretary of the CPC Qingdao Committee Li Qun.

Qingdao is a city located in the eastern Chinese province Shandong, with the access to the one of the largest sea ports of China. Among the major companies from Qingdao there are: Haier (household goods sector), Hisense (electronics devices sector), Tsingtao Brewery (brewery sector).

More information: www.paiz.gov.pl/20140505/exports_to_china_goes_up. (PAIiIZ)

INVESTMENTS IN POLAND

New VW engine’s production begins in Poland
“This is the fifth investment of an automotive giant in Poland this year”, said PAIiIZ president, Sławomir Majman during the inauguration of the new VW Motor Poland engine’s production in Polkowice. The production line was launched by deputy prime minister, Janusz Piechociński.

During the last decade, Poland has become one of the major automotive manufacturers in Central and Eastern Europe. Many of highly engineered car parts and components used all over the world have been designed and created in Poland.

In new, €250 million-worth facility in Polkowice, VW will produce MDB diesel engines. The expansion of the company’s plant allows increasing the production of the VW’s diesel engines up to 1 million units per year.

More information: www.paiz.gov.pl/20140430/new_vw_engines_production_begins_in_poland. (PAIiIZ)

PAIiIZ new investment projects
Since the beginning of 2014, foreign companies decided to invest €1,244.44m and implement 17 investment projects in Poland. As a result 4,733 jobs will be created.

The United States (39 projects), Germany (29 projects) and the United Kingdom (10 projects) lead in terms of the origin of investments. The leaders are followed by French and Japanese investors (9 projects each).In terms of the sectors, the majority projects come from BPO (32 projects), automotive (30 projects) and R&D (11 projects).Currently PAIiIZ supports 152 investment projects worth €3,341.45m that may create 31,754 new jobs in the future.

More information: www.paiz.gov.pl/20140428/paiz_new_investment_projects. (PAIiIZ)

New investments in the Łódź SEZ
Four companies received the permit to conduct business in the Łódź Special Economic Zone. The value of all investments will reach PLN 56m. All companies declared the will to create together over 100 new jobs.

Digital One BPO will implement ITC solutions as creation of websites, e-shops and mobile applications as well as providing hosting services and developing IT services for current clients. Meanwhile, Logiq Rożko will build a distribution centre of bathroom furnishings and provides logistic services. The third company, Organika-CAR that operates as the supplier of automotive fluids and household chemicals will spend at least PLN 20m for its new investments. Epicom that also received a permit to operate in ŁSEZ distributes hygiene products to large retail chains representing FMCG sector. (ŁSEZ)

First investment in Piła subzone
On 8 May, Pomeranian Special Economic Zone has issued a permit to Polskie Zakłady Zbożowe Wałcz. Due to that in Piła subzone 50 new jobs will be created.

Under the PLN 75m-worth project the company will build a modern animal feed plant. This will be the most modern animal feed plant in Poland, producing a new generation of products. (PSEZ)

Two permits in WMSEZ
Two companies: Dawo Opakowania Dariusz Wolski and Cedrob SA received permits to conduct business in the Warmia-Mazury Special Economic Zone. The number of planned new jobs that will be delivered together by those investments should reach 120.

Dawo Opakowania Dariusz Wolski operates in Nowe Miasto Lubawskie subzone. Under the newest investment the company will modernise and expand its production facilities, purchase machinery, equipment and means of transport. The value of the project has been estimated on PLN 7 m. The company specialized in production of plastic packaging and corrugated cardboard.

Meanwhile the latest investment of Cedrob SA will be implemented in Ujazdówek subzone. Cedrob SA is a poultry meat producer and sells its products in Poland as well as on the EU’s, Asian and African markets. The expenditures for new investments will cover PLN 138m. (WMSSE)

New project of Jeppesen Poland
Jeppesen Poland, a subsidiary of Jeppesen, a global IT information solutions company, whose headquarters is located in Gdansk plans to double the number of strategic departments till 2015 with the Boeing support. The company will also increase employment to over 300 people.

Investor plans to employ highly skilled staff including programmers specialised in mobile applications and experts in navigation, geodesy and cartography, geoinformation, aviation and materials engineering. Jeppesen Poland provides advanced digital cartography and navigation solutions that improve safety and operational efficiency for customers representing all kinds of transportation. The office in Gdańsk also provides R&D activity in cooperation with Polish universities as Gdynia Maritime Academy. (Invest in Pomerania)

Windows - Polish export’s star
Last year, the total value of windows sold by Oknoplast abroad reached over PLN 290m. The company has 65% of the Polish market share of windows’ exports. Due to those results Oknoplast is considered as the biggest Polish exporter of PVC windows.

In the past year, more than 40% of windows manufactured in Poland went to foreign markets. PVC windows predominate in the share of exported windows, which reached nearly 50% in 2013. However, the Polish manufactures of windows and doors recorded a decline in the domestic market, the exports let them gain an impressive increase of sales.

During the last years, Oknoplast - the leader in the export of PVC windows has had the biggest share in the exports reaching 57% in 2012 and 65% in 2013. The company has a very strong position in the EU markets. In Italy it is ranked as the second largest producer of PVC windows operating on the local market. Last summer, the company signed a contract with the famous German football club Borussia Dortmund. (OKNOPLAST)

MACROECONOMIC POLAND

  • Exchange rates (as of 08.05.2014):

Buy

Sell

USD

2.9776

3.0378

EUR

4.1492

4.2330

Source: www.nbp.pl

EVENTS

Zhejiang - Poland Matchmaking Forum
On 27 May, Warsaw's Regent Hotel will host the Zhejiang-Poland Matchmaking Forum. The Zhejiang Provincial Governor and the Polish Ministry of Economy are patrons of the event.

The Forum's programme includes sessions of individual business meetings between Polish and Chinese entrepreneurs from Zhejiang.

Companies interested in participating should register by www.gochina.gov.pl/Zhejiang_forum.

The China Council for the Promotion of International Trade (CCPIT), PAIiIZ and the Embassy of China are the organisers of the Forum.

More information: www.paiz.gov.pl/20140527/zhejiang_poland_matchmaking_forum. (PAIiIZ)

PLUGGING IN: establishing Poland’s image in the home appliance sector
On 15 May, at 10.30, Rezydencja hotel in Piekary Śląskie will hold the second edition of International Forum for Home Appliances Producers. PAIiIZ took patronage over the event.

Creating an opportunity of knowledge and experience exchange between producers and distributors of home appliances experts as well as chances and challenges for the sector on the Polish market organizers will be discussed during the event. This year’s edition will be mainly dedicated to creating a positive image of Polish home appliances sector not only in Poland, but also outside of country.

More information: www.prospectsinpoland.com/intro42.html. (Prospects in Poland)

21st International Petrol Station 2014 Fair
The largest exhibition of the fuel sector in Poland and the CEE region will be held between 14-16 May at the EXPO XXI Centre in Warsaw. PAIiIZ is the patron of the event.

International Trade Fair "Petrol Station" brings together the representatives of the energy sector and many visitors from outside the industry.

For more information: www.targi.paliwa.pl. (PIPP)

FAIR B2B Outsourcing Services
On 15 May, Gdańsk will host the B2B Outsourcing Services Fair. The event is a combination of a sector’s trade fair as well as the experts’s meeting and workshops for entrepreneurs.

The first such meeting was held in March in Walbrzych. Businessmen and companies already benefiting from this type of service and those who are considering starting a business will take part in B2B talks.

Pomeranian Special Economic Zone is a co-organizer of the meeting in Gdańsk. PAIiIZ took patronage over the event.

More information: www.b2btargi.com.pl. (Prospects Magazine)

The Health Tourism Show
On 10-12 July, for the fifth time London will held The Health Tourism Show.

The event is dedicated to promoting medical treatment abroad, as an option for those who can not afford to use the health care system in the UK or want to use medical services outside the country.

Last year's show was visited by 10,000 visitors. The event brings together representatives of medical institutions, spa towns, medical doctors of various specialities, medical agents representatives of medical tourism, as well as tourist agencies and hotels.

Companies interested in participating in the Polish exhibition stand should contact karolina.dresler@paiz.gov.pl and register until 13 May.

More information: www.paiz.gov.pl/20140710/health_tourism_show_en. (PAIiIZ)

ANALYSES AND REPORTS

Spring GDP forecast for Poland
According to the European Commission's spring forecast, by 2014 Polish GDP will grow to 3.2% and in 2015 will increase to 3.4%. In both cases, the forecast was increased by 0.3%.

As the experts in Brussels argue, that the recovery that took hold in the second half of 2013 is expected to strengthen in 2014 as domestic demand overtakes trade as the main growth driver. Poland’s labour market situation is expected to improve. The European Commission forecasts that the GDP of the whole European Union will reach 1.6% in 2014 and 2% in 2015. (www.ec.europa.eu)

Visegrad Four - 10 years of EU membership
Poland, Czech Republic, Slovakia and Hungary are economically stronger and more relevant 10 years after accession to the EU. The GDP per capita in Poland and Slovakia has doubled during this period - argue authors of the report prepared by Erste Group Research.

The V4 countries joined the EU in 2004 as rather economically weak nations, however, with huge growth potential. After 10 years of the EU membership, the V4 have recorded the average annual increase by about 1%. Three out of four V4 countries were promoted in the Quality of Life Index, while the local leader in this ranking, the Czech Republic, even overtook Italy and Great Britain.

For the V Four, joining the EU has opened up new opportunities as they gained access to a single market with more than 500m customers. The accession has made exports one of the most important economic characteristics the region. The exports of the V4 grew three times faster than exports of old EU member states in the last decade. The V4 region is now ranked as the fourth largest exporter in the EU28 (compared to the sixth position in 2003).

For Western companies, the enlargement of the EU has created a unique opportunity to extend their production capacity in the CEE countries. Car manufacturing became the most prominent export-oriented industry in the V4. While around a decade ago, the V Four was producing fewer cars than France, Spain, the UK and Italy, now it is the second largest car producer in the EU after Germany.

As for the challenges for the next decade - the increases in R&D spending and transition of the national economy to the economy based on innovations, seems to be the most crucial key points for the future of Poland. (Erste Group)


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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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