POLSKA POLAND POLSKA POLAND POLSKA POLAND POLSKA POLAND POLSKA POLAND POLSKA POLAND POLSKA POLAND NEWSLETTER August 6th 2009, number 134

NEWS FROM THE EDITOR September 28 (support for business activity in the agreement due to which the Polish producer has field of electronic commerce). Some days later been selling the IKEA group most of its output in Dear Readers, October 5 the Polish Agency for Enterprise Poland. In the course of the first 7 years the This week we encourage you to read about one Development will start an intake of applications company plans to hire 800 people. Com.40 of the biggest greenfield investments started in in Measure 8.2 (Support for the implementation Limited belongs to a group of companies owned 2008 in the USA. The project is run by a Polish of electronic business of the B2B type). At the by Bogdan Kaczmarek (Big Star, PROFIm, AB furniture manufacturer. Moreover, we inform same time it is worth remembering that the intake Wood Sławno, AIB Starachowice) one of the about investment plans of Starco Polska and of applications in some measures is still open (till biggest furniture manufacturers in Poland. present the latest forecasts prepared by the the end of this year or till the financial allocation Com.40 has been selling its products in major Gdańsk Institute for Market Economics which is finished). Entrepreneurs can apply for grants in Polish cities and in foreign markets, among show that the most dangerous moments in Polish Measure 4.5 Support for investment of others, in the UK, France, Belgium, economy seem to be over. considerable importance to the economy (4.5.1 Holland, Switzerland and Germany. In Nowe Pleasant reading! innovative investment in production sector, 4.5.2 Skalmierzyce the company hires 1800 support for investment in modern services sector employees. (WPHI Washington) PAIiIZ's editorial team IT, R&D centres) and Measure 4.3 Technology Credit. For more information see page www.paiz.gov.pl/europeanfunds. Information 925 MLN EUR FOR SCIENTIFIC WHAT IS WAITING FOR about possibilities of getting grants in the RESEARCH FROM EIB ENTREPRENEURS AFTER Innovative Economy Operational Programme THE SUMMER? The European Investment Bank granted can also be obtained at European Funds Poland a 675 mln EUR loan for institute and This September is going to be a hot time for Information Point in PAIiIZ: 0 801 005 075, info- university research. Two more loans, jointly entrepreneurs interested in obtaining a grant [email protected] 250 mln EUR, will be allocated to projects run from the Innovative Economy Operational by small and medium-sized enterprises Programme. POLISH INVESTMENT AMONG - informed PAP. According to the new intake schedule in the THE BIGGEST GREENFIELD According to the Bank’s deputy president Innovative Economy Operational Programme, PROJECTS IN THE USA IN 2008 Ms Marta Gajęcka, the funds should make it the intake in Measure 1.4 Support for goal- easier to develop knowledge-based society and oriented projects (complementary with 4.1 According to the latest report by the American facilitate SMEs' access to medium and long-term Support for the implementation of the outcome Organization for International Investment, financial aid. The 675 mln EUR may be of R&D works) will start in September 14. Support a project realized by Polish Com.40 ranks distributed among: the Ministry of Science, in 1.4 can be given to entrepreneurs who plan to among the biggest greenfield investments in national research institutes and universities. The carry out R&D, technological or organizational the USA. Com.40 will invest 36.3 mln USD to funds, to be expended in the years 2009-2010, projects (industry-related research and construct a plant in Danville (Virginia) where may be invested in research infrastructure and development work) conducted by entrepreneurs 800 jobs will be created in the upcoming equipment as well as allocated to co-finance individually or in cooperation with research units. 7 years. salaries of research workers responsible for the Measure 1.4 is related to time until the prototype The report published by the American implementation of govern-mental programmes. is created, Measure 4.1 provides support for Organization for International Investment Moreover, EIB granted a 150 mln EUR loan to implementation of the outcome of R&D work analyses FDI inflow to the USA which in 2008 PKO BP. The funds will be allocated to smaller carried out under Measure 1.4 or the reached 36.6 bn USD. In the category of projects run by public and private enterprises. Technological Initiative (Ministry of Science and greenfield investment the report mentions the ten Projects eligible for financials support should Higher Education Programme) and is connected biggest projects. The first two positions were focus on environment protection and energy with investment (purchase of material and/or taken by an Arab enterprise Advanced efficient strategies or may deal with infrastructure inmaterial assets) necessary for the imple- Technology Investment worth 2.8 bn USD and issues in the field of health care, education, mentation process. Another competitions will be a BMW project worth 100 mln USD. The services and tourism. The third loan was granted related to stimulation of R&D activities of investment realized by the Polish Com.40 to BRE Bank i.e.100 mln EUR which should be enterprises and support in the area of industrial classified in the 3rd position. Com.40 Limited used to support small and medium projects in the design (Measure 4.2), new investment of a high situated in Nowe Skalmierzyce (Wielkopolska) industry and service sectors. The projects may be innovation potential (Measure 4.4) or searching plans to invest over 36 mln USD in a plant which realized both in Poland and in other EU for trade partners in foreign markets as well as will produce mattresses and furniture elements. countries. To date, the co-operation with BRE participation in trade fairs and exhibition events The USA-based Com.40 factory’s production will Bank resulted in several loans, jointly 140 mln abroad as the exhibitor (Measure 6.1). The be closely connected with the IKEA Group in EUR, granted to smaller investments realized by intake of applications in Measure 8.1 will start North America. The companies have an public and private companies. (PAP) INVESTMENT IN POLAND

STARCO POLSKA DEVELOPS AND mainly in trading but is now turning also to spring 2010 . The modern factory will produce OFFERS JOBS production. Last year the company received axes and running gears for agriculture and a permission to develop its activities in the Mielec garden vehicles, Melex electric vehicles and The Mielec Industrial Park will host a new Special Economic Zone and in autumn bought wheel chairs. Starco has been active on factory producing running gears. Starco looks a lot worth 1 mln PLN situated in the Mielec- international markets. While the Starco for workers with experience in metal working. based Industrial Park. Production floor which will parent company is situated in Denmark, its During the first investment phase the company be constructed on the 4ha lot will measure4,000 daughters companies are located in the UK, planes to hire 35 people. sq m, including a small office space. Germany, Russia and in the Benelux. (Puls Starco has been operating in Mielec for Construction costs are estimated to exceed Biznesu/www.mielec.pl) 8 years now. The company has been active 11 mln PLN. Production is planned to start in

Polish Information and Foreign Investment Agency www.paiz.gov.pl POLSKA POLAND POLSKA POLAND POLSKA POLAND POLSKA POLAND POLSKA POLAND POLSKA POLAND POLSKA POLAND FROM THE REGIONS WROCŁAW UNIVERSITY annually on research - Jacek Murawski, for Teaching Activities, Andrzej Jabłoński PhD OF TECHNOLOGY TO managing director of Microsoft Polska told Secretary of the Managing Committee at the CO-OPERATE WITH MICROSOFT Gazeta Wyborcza. - We want to work with the Knowledge and Innovation Community for Microsoft and the Wrocław University best and that is why we chose the University of Information and Communication Technologies, of Technology signed a co-operation Technology in Wrocław. The agreement will Tomasz Gładkowski - Director for Microsoft agreement. enable research workers and students to test the Polska Internet Service. (Gazeta Wyborcza The agreement assumes the entities will co- company's software, run research projects for the Wrocław) operate in two fields. First, Microsoft joins the concern and take part in Microsoft internship Knowledge and Innovation Community for programmes. Every year the company tends to Information and Communication Technologies. invite several students from the University to serve The major aim of the cluster is to combine efforts an internship in the Microsoft headquarters in the of scientists and companies active in the field of USA. The agreement signing ceremony was modern technologies. Microsoft is the 54th attended by: professor Tadeusz Więckowski - member of the Community. Secondly, the Rector of the Wrocław University of Technology; concern will actively engage in both research and Jacek Murawski - Managing Director of teaching activities in the University. - We are Microsoft Polska, professor Eugeniusz Rusiński - Rector for Scientific Research and Economic Co- among world leaders when it comes to research Jacek Morawski and professor Tadeusz Więckowski sign expenditure. The company spends 9 bn USD operation, professor Andrzej Kasprzak - Rector the agreement. Source: J.Pająk MACROECONOMIC POLAND 567.6 mln EUR from the EU in June Car sales in July rose by 5% y-o-y Exchange rates (as of 06.08.2009) EU funds transfer to Poland in June accounted for The overall number of sold car accounted for 567.64 mln EUR - informed the Ministry of over 24,000 - informed the Polish Automotive Buy Sell Finance. The first six months of the year saw Industry Association. Dealers expected the falling USD 2,8283 2,8854 5 bn 530 mln EUR transferred to Poland. The sales tendency to persists, the number of sold EUR 4,0662 4,1484 country contributed 2 bn 32 mln EUR. (PAP) cars this year exeeded 193,000 i.e. 0.7% more than in the same period in 2008.(PZPM) Source: www.nbp.pl ANALYSES AND REPORTS IBNGR: THE CRISIS LEAVES POLAND their opinion in the 4th quarter of the year 1 USD member states. The report highlights also the Experts from the Gdańsk Institute for Market should cost 2.9 PLN and for 1 EUR we may pay most important anti crisis initiatives taken by the Economics claim the worse time for Poland 4.1 PLN. Further strengthening of the Polish Polish government. In response to the crisis- is over. The Institute's economists assess the currency is expected next year. (IAR) connected effects emerging in the country's th GDP growth in the 2nd quarter of the year rose economy, on November 30 , 2008 the by 0.2% y-o-y. ENTERPRISE IN POLAND government accepted a “Stability and Marcin Peterlik from the Institute expects the GDP - A REPORT BY THE MINISTRY Development Plan” which was devised to support dynamics to improve in the upcoming quarters OF ECONOMY the Polish economy in the face of the spreading what should result in a 0.7% GDP increase in the The Ministry of Economy published its 7th slowdown. The Ministry prepared a document whole 2009. Next year the economy in Poland is edition of the report “Enterprise in Poland” “Initiatives of Ministry of Economy for stability expected to develop at the pace of 1.8%. Among which provides an analysis of Polish and development”. The document assumes factors that determined the fall in GDP dynamics enterprises and the business environment in increase of consumer and investment demand, experts indicate the decrease of import and the country. improvement of the SME financing system, nd export levels. According to IBnGR, the 2 quarter Last year saw a number of enterprise-oriented acceleration of EU financed investments' of the year saw a negative pace of export i.e. initiatives which focused on legislative issues. The realization, innovation development and more -4.4% while the falls in import accounted for “Package for Enterprise” prepared by the Ministry flexible labour market. The report shows also that -9.3%. Krzysztof Łapiński from IBnGR may serve as an example of such actions. Thanks 2008 saw over 317, 000 applications for emphasizes that the indicators depend heavily to the Package it will now be possible to suspend registration in the REGON register i.e. 8% more on the economic situation in our major trade business activity, limit redundant audits in than in the previous year. The overwhelming partners. The Gdańsk Institute for Market companies and take advantage of the one- majority (97%) of active economic entities Economics expects the unemployment rate to rise window rule which effectively facilitates comprises of micro enterprises i.e. businesses rd at the end of the 3 quarter of 2009 and to reach administrative procedures. Moreover, the frame employing up to 9 workers. In 2007 such entities 12.8% at the end of the year. Nevertheless, 2010 of public-private partnership projects and value made up 96% of active entrepreneurs. While should see the rate fall to 11.2%. Due to the added tax regulations could effectively be small companies (10 - 49 workers) constitute weakening economic conditions also the overall streamlined. The package introduces also the 2.5%, the number of medium enterprises (50 th price growth rate is bound to drop. By the 4 taxpayers' presumption of honesty. The report 249 workers ) account for less than 1%. The big quarter of the year inflation should reach 2.7% presents a general situation of Poland's economy companies offering employment to over 250 while the overall 2009 inflation level should in the 2nd quarter of 2008 when clear effects of persons compose 0.2% of the total number of hover at around 3.2%. Next year the average the global economic slowdown began to be felt. active enterprises. The joint value of enterprises' price growth rate should stay at 2.5%. The GDP data for the 1st quarter of 2009 shows the revenues in 2008 rose by 11% and reached 2.3 experts expect the Polish złoty to strengthen. In country among the most crisis immune EU trillion PLN. (Ministry of Economy) DID YOU KNOW THAT... CONSTRUCTION OF THE POLISH an unflagging popularity and interest on the part trends. During the International Exposition EXPO PAVILION FOR THE EXPO 2010 of Chinese population. The construction stands 2010 in Shanghai the pavilion will host a number The construction of the Polish EXPO pavilion out from among other pavilions and thanks to its of cultural events promoting Poland's economy, started officially on August 4th, 2009. aesthetic individualism, which is at the same time culture, science and tourism. (PARP) The official ceremony was attended by: Deputy eligible for the Chinese canons, became Marshal of the Polish Senat - Marek Ziółkowski, a recognizable cultural emblem of Poland. The Charge d'Affaires at the Polish Embassy in Beijing 30 metre high structure renders the motif of a Andrzej Kneifel, the Commissioner General of folk-art paper cut-out allowing the light filtering the Polish Section of EXPO 2010 - Sławomir through the patterns of the elevation to create a Polish Information and Foreign Investment Agency Majman, President of the Polish Agency for 'chiaroscuro' effect. The message behind the 00-585 Warsaw, ul. Bagatela 12 combination of modern elements with folk tel. (+48 22) 334 98 15, fax (+48 22) 334 99 90 Enterprise Development - Bożena Lublińska- e-mail: [email protected] Kasprzak and numerous representatives of motives consists in the necessity of combining the Chinese authorities and EXPO organizers. Since contemporary with the traditional, especially in Public Relations Division Economic Promotion Department its presentation, the pavilion has been enjoying the era of fast developing social and cultural Polish Information and Foreign Investment Agency www.paiz.gov.pl