|POLISH INFOMATION AND FOREIGN INVESTMENT AGENCY|
September 17th, 2009,
TABLE OF CONTENTS
INVESTMENTS IN POLAND
ANALYSES AND REPORTS
FROM THE EDITOR
In this week’s issue we recommend to read an account of the XIX Krynica Economic Forum and information on PAIiIZ activities for the development of market institutions if the former Soviet Union Republics. This week UNCTAD presented its annual World Investment Report which in Poland was published at a conference organised by PAIiIZ. Also this week the European Commission published its latest economic forecast which confirms the strong position of the Polish economy in a difficult environment. At the end you will find accounts of the openings of some new foreign investments like TBAI, Cargotec and Cadbury.
PAIiIZ’s editorial team
Polish Information and Foreign Investment Agency supports market institutions development in the former Soviet Republics
The Polish Information and Foreign Investment Agency begins to support the development of democratic and free market institutions in the former Soviet Union Republics.
Polish experts in investor service, privatisation and economic promotion will provide trainings during which they will share information and experience Poland gained in the process of foreign investment project acquisition.
Due to its location, on the border between the European Union and the former Soviet Union, Poland has a special role to play in that the country may help improve relationships between the countries of the East and West of Europe. Study visits in Poland and training programmes offered by PAIiIZ experts will provide the representatives of the former Soviet Union countries with information on market economy principles, democratic institutions and effective investment acquisition.
At the moment PAIiIZ has been realising the project “Enhancing the performance of market economy institutions in the Republic of Belarus”. The aim of the programme is to support Belarus in the process of privatisation and commercialisation of state-run enterprises. In the framework of the programme on August 24th the first training session for Belorussian civil servants took place in Minsk. The focus of the session was to help the participants prepare a preprivatisation strategy. The series of trainings in Belarus will be concluded with a training conference in Poland during which representatives of Belorussian administration will have the chance to learn the workings of Polish privatisation processes. Among conference panellists there are: professor Aldona Kamela-Sowińska, Wiesław Rozłucki PhD, Marcin Święcicki PhD and Richard Mbewe PhD.
The Polish Information and Foreign Investment Agency in co-operation with German Federal Ministry of Economics and Technology organises a twinning programme geared towards the investment agency Invest in Ukraine which is expected to help the agency reach European standards. The programme is planned to start by the end of the year and will include trainings in the field of regional co-operation, investment incentives and data base creation as well as in economic development and promotion strategy preparation. The programme has been financed from EU funds in the frame of the European Neighbourhood and Partnership Instrument.
The upcoming days will see a group of representatives from Ministry of Economic Development and Trade of the Kyrgyz Republic. The group is the second Kyrgyz delegate group which is to take part in PAIiIZ training programme.
This year, in October, PAIiIZ will also receive delegates from the Armenian Development Agency (ADA). The training visit will focus on experience sharing in the filed of investment support and enterprise development. Moreover, at the beginning of October the Deputy Prime Minister and Minister of Economy Waldemar Pawlak will pay a visit to Kazakhstan. The visit will overlap with a Polish-Kazakh Economic Forum which will be attended by groups of Polish and Kazakh entrepreneurs.
On the eve of the Polish Deputy Prime Minister’s visit to Kazakhstan, PAIiIZ organises a study tour in Poland for a group of major Kazakh media representatives. The visit will serve as an opportunity to present the journalists possibilities of economic co-operation between the countries and its future development perspectives. In turn, the Kazakh capital city Astana will in the foreseeable future host an exhibition “Designed in Poland”. The exhibition aims at presenting Polish design - this time silver and amber jewellery. The idea behind the event is to encourage foreign consumers to reach for Polish products. (PAIiIZ)
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PAIiIZ on the XIX Krynica Economic Forum
This year’s forum took place between September 9th and 12th in Krynica. The forum ranks among the biggest yearly gatherings of economists, politicians and businesspersons in the region of Central and Eastern Europe.
Over 900 participants from 60 countries in Europe, Asia and America decided to take part in panels, discussions and other types of meeting at this year’s forum. Poland was represented by Deputy Prime Minister, Minister of Economy Waldemar Pawlak, Minister of Tresury Aleksander Grad, Deputy Minister of Finance Ludwik Kotecki and Secretary of State at the Chancellery of the Prime Minister Michał Boni. Among panellists there were also the former Polish President Aleksander Kwaśniewski and President of the European Parliament Jerzy Buzek.
Debates on the forum fell into several categories, among others, regional issues, investment, privatisation and economic development. Major issues brought up on this year’s forum concerned the economic crisis, summary of the transformations which took place in Europe in the last 20 years and the set of challenges faced by the European Union.
The second day of the forum focused on economic issues. The Warsaw Stock Exchange (GPW) organised a panel on M&As and portfolio investment. Among the analysts who participated in the panel there were the GPW President - Ludwik Sobolewski, Undersecretary of State in the Ministry of Foreign Affairs - Paweł Wojciechowski and PLL LOT President - Sebastian Mikosz.
The discussion was also attended by the PAIiIZ President Sławomir Majman, who emphasised that in the time of crisis Poland does stand out from among other European countries, being the only state recording positive economic growth indicators, thanks to the country's sound financial system, absorbent market and attractive investment incentives, including European Funds allocated to the development of the country.
The Polish Information and Foreign Investment Agency organised a discussion panel “Investment acquisition in the times of crisis - CEE’s competitiveness” which also took place on the second day of the Forum. The panel enjoyed the patronage of the Foundation Institute for Eastern Studies.
The idea behind the discussion was to present investment climate in the region of Central and Eastern Europe and the region’s potential of investment acquisition in the field of the so called new wave sectors. The panel attempted to compare investment attractiveness of the region with the emerging markets in Asia.
The debate, chaired by the president Sławomir Majman, was attended by representatives of Czech, Slovak and Hungarian investment agencies. Among panellists there were :Alexandra Rudyšarová - Director at CzechInvest, Ivan Jukl-Director at CzechTrade, Ágnes Kozma-Director at ITDH, Ludwik Sobolewski - President of the Management of the Warsaw Stock Exchange.
During the panel Mr Majman presented competitive advantages of the CEE region highlighting those which are especially attractive in the times of crisis. According to PAIiIZ President, near future may see our region become the world BPO and R&D investment valley in the fields of new technologies. Poland stands a very good chance of attracting this kind of investment thanks to the country's human capital, competitive labour costs, favourable geographic location and high quality of provided services.
Panellists representing key investment agencies in the CEE region discussed also the issue of the region’s competitiveness in the context of Asian markets (India, China), carried out a direction and method analysis of how to encourage investment in the times of crisis and shared experience in the field of investors’ expectations towards investment agencies. (PAIiIZ)
PAIiIZ conference on OECD Guidelines
The Polish Information and Foreign Investment Agency invites to a conference on OECD Guidelined for Multinational Enterprises at 12 Bagatela Str. at 10 a.m. The conference is organised in co-operation with the British-Polish Chamber of Commerce and the Responsible Business Forum (FOB).
The National OECD Information Point wants to encourage companies active in Poland to implement OECD guidelines and to promote them in everyday business practices. Together with BPCC, CSRInfo and FOB the OECD Information Point team prepared a programme which includes a pilot self-assessment questionnaire in which a company will be able to self determine to what extend has it been meeting the standards set in OECD Guidelines for Multinational Enterprises.
The conference will serve as an opportunity to present the role of the National OECD Information Point and to review the OECD guidelines. Participants will have the chance to learn what recommendations result from OECD Guidelines for multinational companies active in Poland and what are the potential benefits from the application of the guidelines.
There will also be a presentation of companies which filled out questionnaires concerning the standards of the guidelines.
For more information contact: Danuta Łożyńska at 0048 22 3349983, e - mail: email@example.com (PAIiIZ)
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INVESTMENTS IN POLAND
The Japanese invest in Dolny Śląsk
Japanese motor company has invested in Nowogrodziec - Wykroty. This is the first TBAI investment in the EU and will be located within the Kamienna Góra Special Economic Zone for Medium Business.
The 8 ha lot has already been prepared for the first construction project which is to start in a few days. A production complex planned by the investor will consist of a stamping press and a paint and welding shop. Starting from June 2011 the new company planes to reach production capacity of 280 000 of frames and car seats coatings a year, which will then be delivered to an assembly plant of Toyota Boshoku Group in Europe.
President of the TBAI Poland management board, Masaki Suzuki said: - Today we have only a germ of our future plans. We will use and combine state-of-the-art technologies. We will provide our clients from all over the world with products of the highest quality and for an affordable price. TBAI declares it will create 420 new workplaces. The Japanese underline that they do see their company develop in Nowogrodziec in the future. These declarations were warmly welcomed by the city’s authorities.Go to top...
Cargotec starts new construction in Poland
Cargotec initiates the construction of a multi-assembly unit in Starogard Szczeciński. Foundation stone-laying ceremony was chaired by Cargotec President - Mikael Mäkinen and attended by the Under-Secretary in the Ministry of Economy Rafał Baniak and PAIiIZ President Sławomir Majman. The Polish Information and Foreign Investment Agency provided Cargotec with assistance through the investment-connected process.
The new plant will play a crucial role in Cargotec’s long-term supply strategy. Thanks to its convenient localisation the plant will not only supply European markets but will help reduce costs of production and transport. It will also stimulate Cargotec’s purchase strategy in Central-Eastern Europe - We are proud of our investment and pleased to take this step in building the most modern and energy-efficient assembly unit within the corporation - said president Mäkinen.
Cargotec announced the investment plan in April this year and in June bought a 41 ha investment lot. Construction develops according to its schedule. Production should start in the second quarter of 2010. Then a number of employees will rise to reach 200 persons. The plant is planned to support other facilities in the production of Cargotec’s appliances for reloading of commodities.
- Stargard Szczecinski offers excellent road and waterway connections to our markets in Europe, said Axel Leijonhufvud, Cargotec’s Executive Deputy President for Product Supply. - We are also very satisfied with the good and fruitful co-operation we have had with the local government.
Cargotec offers goods loading and unloading solutions on land and at sea - wherever cargo is needed. Cargotec’s main daughter brands Hiab, Kalmar and MacGregor are global market leaders in their fields. The total value of Cargotec’s sales amounts to EUR 3.4 billion in 2008 and it employs about 11,000 workers. Cargotec’s class B shares are quoted on the NASDAQ OMX Helsinki. (Cargotec)Go to top...
Cadbury’s new chocolate factory in Bielany Wrocławskie
Cadbury finishes another stage of its investment in Poland i.e.one of the biggest investments in Poland and the company’s another project in Dolny Śląsk. The project was realised with the help of PAIiIZ.
Bielany Wrocławskie - based factory, which has currently been extended, has doubled its size. It was ready for use on September 10th,2009.
In recent years Poland hosted Cadbury’s investment worth EUR 200 mln. The newest set of projects consisted in: extension of the Bielany Wrocławskie factory, modernization of Wedel’s factory in Warsaw and construction of a new chocolate factory in Skarbimierz. These ventures form part of a complex strategy which makes Poland one of the investor’s major links in the chain of Europe-oriented distribution.
The extension of the facility in Bielany Wrocławskie started in February 2008 and was finished on July 20th, 2009. The factory’s area rose from 13 000 m2 up to 30 000 m2. Thanks to the extension the facility will now be capable of producing a double amount of products under Cadbury and Wedel. The factory offers employment to 650 people. (Cadbury)Go to top...
ANALYSES AND REPORTS
World Investment Report 2009
On September 17th the World Investment Report 2009 Transnational Corporations, Agricultural Production and Development prepared by United Nations Conference on Trade and Development was published on a conference at the Polish Information and Foreign Investment Agency.
This year’s issue of the report, analysing world trends in foreign direct investment (FDI) flows, shows that prospects for global FDI remain gloomy. As a result of a worsening of the financial and economic crisis the estimated FDI inflow in 2009 fell from about US$1.7 trillion in 2008 to below $1.2 trillion in 2009. Recovery is expected to be slow in 2010, reaching no more than $1.4 trillion, but gathering momentum in 2011 to approach $1.8 trillion.
The crisis has changed the FDI landscape, with a surge in the developing and transition economies' (according to UNCTAD the term refers to the South-East Europe and CIS) share in global FDI flows to 43% in 2008. This change in the pattern of inflows is partly due to the large decline in FDI inflows to developed countries, which in 2008 shrank by 29% compared with their level of the previous year. In turn, the least developed countries (LDCs) attracted a record US$33 billion worth of inward FDI in 2008. Nevertheless, the United States remained the world's largest recipient country, followed by France, China, the United Kingdom, and the Russian Federation.
Despite the fact that its outflows declined by 18% the United States maintained its position as the largest outward investor in 2008, followed by France and Japan, making its début on the list of top five investing countries, with a 74% increase in outward FDI.
Strong effects were felt by TNCs in 2008 and early 2009 when TNCs experienced declining profits, increasing divestments and layoffs, and a number of major restructurings and bankruptcies. Transnational corporations from developed countries continued to account for about 84% of total cross-border M&As in developed countries, while TNCs, mainly from China and the Russian Federation, were by far the largest investors from developing countries and transition economies.
New prognosis by the European Commission
According to he latest prognosis from the European Commission, the Polish GDP is to grow by 1%.
EC economists expect Poland to be the only EU member state to record a positive GDP. The forecast emphasises that Polish economic indicators for the first half of the year were better-than-expected.
In the report Polish economic situation was described under a heading: Strong resilience in a difficult environment.” EC has appreciated the intensive economic activity of Polish companies, relatively low dependence on export and import thanks to domestic production and the strength of domestic demand.
In his comment on the prognosis, Polish Minister for Finance Jacek Rostowski told the Polish Press Agency that the information has not come as a surprise to him. Mr Rostowski emphasised the fact that Poland will be the only EU country with a positive GDP growth. Polish GDP is expected to grow at the fastest rate from among EU countries and in the future also from among OECD member states.
The high economic growth rate has to a large extent been influenced by the unflagging entrepreneur and consumers spending. The Ministry adds also that it was the fact that IMF provided Poland with the flexible credit line that substantially helped Polish economy reach positive indicators. At the same time the Commission has not changed forecasts for the whole EU and the euro zone and confirmed that GDP in the zones is expected to shrink by 4%. (European Commission, PAP)
Editorial office: Polish Information and Foreign Investment Agency, 00-585 Warsaw, Bagatela Street 12
Economic Promotion Department, tel: (+48 22) 334 98 15, fax: (+48 22) 334 99 99,