Polska Agencja Informacji i Inwestycji Zagranicznych S.A. Polish Information & Foreign Investment Agency THE LIST OF MAJOR FOREIGN INVESTORS IN POLAND 31st December, 2003 Warsaw 2004 Polska Agencja Informacji i Inwestycji Zagranicznych S.A. Polish Information & Foreign Investment Agency The List of Major Foreign Investors in Poland as of December, 2003 1. Foreign investments in the world According to the preliminary estimates of the United According to the methodology research took into consid- Nations Conference on Trade and Development eration entities with foreign capital of value exceeding (UNCTAD) the declining trend of foreign direct USD 1 million and at least 10% foreign ownership. investment in the world has been stopped. The global PAIiIZ questionnaires have been sent to over 1,300 com- value of FDI flows, after significant drops in the value of panies. FDI definition used by PAIiIZ is in accordance investments in years 2000-2002, remains on the level of with the one applied by OECD1. USD 653 billion. Investors and analysts pay particular The value of foreign capital inflow to Poland in 2003 attention to the region of Central and Eastern Europe. amounted to USD 6.42 billion. This value is larger by Investments in the region of Europe have been growing USD 360 million than in 2002. In the first half of 2003 steadily since spring 2001; the year in which they reached the value of FDI inflow to Poland amounted to USD the value of USD 25 billion. In 2002 the value of FDI 2.52 billion, while in the second half it reached the inflow in the region amounted to USD 28.7 billion, while level of USD 3.89 billion. it has been estimated at the level of USD 30.3 billion in In comparison to previous years when a drop in the 2003. foreign direct investment inflow was recorded in Poland, it has been observed that the trend has been halted and at Graph 1. FDI flows in the world over 1990-2003 (in USD billions, according to UNCTAD) the same time it has been stabilized at the level exceeding USD 6 billion. Graph 3. The inflow of foreign capital to Poland between the years 1993-2003 (in USD million) e -preliminary data Graph 2. FDI inflow to the countries of CEE between 1990-2003 (in USD billion, according to UNCTAD) Source: PAIiIZ The accumulated value of foreign direct investment exceeding USD 1 million in Poland on December 31, 2003 amounted to USD 69.44 billion. The value of capital invested in the entities not included in the research (with the participation of foreign capital not 2. FDI inflow to Poland in 2003 exceeding USD 1 million) has been estimated at USD 3.26 billion, and thus the accumulated value of foreign At the end of 2003 Polish Information and Foreign investment in Poland exceeded USD 72.71 billion. Investment Agency (PAIiIZ), similarly to previous years, carried out a research concerning the inflow of 1 OECD Benchmark Definition of Foreign Direct Investment foreign capital to Poland. (3rd edition), Paris 1996. 3 Polska Agencja Informacji i Inwestycji Zagranicznych S.A. Polish Information & Foreign Investment Agency Graph 4. The accumulated value of foreign capital in 2.4 billion in 2003, which constituted over 38% of the Poland between the years 1993-2003 (in USD million) total value of capital inflow last year (see Table 2). In 2003 the largest foreign investor were Dutch companies (USD 2.06 billion), followed by international corporations (USD 986 million), German firms (USD 806 million), French (USD 616 million) and American (USD 535 million). Taking into account the accumulated value of foreign capital invested in Poland the first position is held by Source: PAIiIZ France (almost 20% of all investments carried out in Poland). The second largest investor in Poland are Dutch Among the foreign investments carried out in Poland in companies (14%), followed by American firms (13%), 2003 dominate greenfield investments, which accounted German (12%) and Italian (6%). The share of the for over half of all investments. This situation was due to remaining countries in the accumulated value of foreign the fact of large investments in the automotive and real direct investments in Poland amounted to 36%. estates sectors. Privatization processes (22%) and The second position in terms of the value of accumulated acquisitions, as well as joint ventures (7%) also had capital invested in Poland is taken by companies from a major share in the inflow of foreign direct investment the Netherlands. One should however take into account in 2003. that the ongoing globalization process and the freedom of capital flow in the world imply the phenomenon of Graph 5. Percentage share of particular forms of foreign investments, as being of transnational range and investments in the inflow of FDI to Poland nature. Due to this a number of investors originating in 2003 (according to PAIiIZ) from the American or Asian markets invest in Poland through their subsidiaries located mainly in the European countries. Such companies are among others Coca-Cola, Goodyear or United Technologies investing through Greece, Luxembourg and France respectively. 4. Foreign investments with respect to the sectors of the economy Sector structure of foreign direct investments in 2003 3. Foreign investors in Poland with regard to the confirms that the majority of investments is still country of their origin inflowing to the manufacturing sectors of the Polish economy. The inflow to the manufacturing sector Foreign investments carried out in Poland in 2003 were amounted to USD 2.9 billion in 2003, which constituted in majority originating from the EU countries, with the 46% share in the total FDI inflow to Poland. This share dominant position held by companies registered in the increase by 12 percentage points in comparison to 2002. Netherlands, Germany and France. Poland remains an The largest share of the capital, USD 570 million, has attractive country for American investors, which had an been invested in the chemical and pharmaceutical 8% share in the inflow of foreign investment into sectors, as well as non-metal products especially related Poland in 2003. Corporations, which identify to the production of cement, lime and gypsum. themselves as international, also located their capital in The inflow to non-metal sector amounted to USD Poland. 533 million, which constituted 8% share in the total The value of the investment expenditures borne by the inflow of foreign capital to Poland in 2003 and 18% 15 largest foreign companies amounted to almost USD inflow to the manufacturing sector. 4 Polska Agencja Informacji i Inwestycji Zagranicznych S.A. Polish Information & Foreign Investment Agency The capital is also gradually pouring into the food sector Table 1. Accumulated value of foreign direct especially in the form of reinvested profits. In 2003 the investment in Poland with regard to inflow to the food products sector reached the level of the country of origin of the investor USD 314.9 million, which constituted 11% inflow to the (December 31, 2003) whole manufacturing sector. This is especially important in the light capital outflow, which had been recorded in Country Capital invested Plans of registration (USD million) (USD million) the year 2002. 1 France 13,857.2 1,733.1 The second sector, which seems to be the most attractive 2 The Netherlands 9,863.2 1,262.5 for foreign investors, is the widely recognized financial 3 USA 8,689.3 2,898.4 intermediation. In 2003 investors located USD 2.4 billion 4 Germany 8,414.7 1,372.7 in this sector of the economy, which constituted 38% of 5 Italy 3,837.4 1,113.0 the total inflow of foreign direct investment to Poland. 6 United Kingdom 3,689.8 279.7 7 International 3,161.5 237.0 Foreign direct investment were also pouring into the 8 Sweden 3,062.3 259.8 service sector, especially to the media and entertainment 9 Denmark 2,111.4 460.8 segment, which recorded a 2 percentage point increase in 10 Belgium 2,048.1 349.8 comparison to 2002. 11 Russia 1,291.9 50.0 In terms of accumulated values the sector structure of the 12 Austria 1,122.9 221.9 foreign capital has remained unchanged in comparison 13 Cyprus 1,106.1 180.0 to previous years, as manufacturing and financial 14 Ireland 1,087.7 69.7 15 Switzerland 1,087.3 168.9 intermediation sector still remain dominant. Investors 16 South Korea 965.8 na have so far invested USD 27.7 billion (40%) and USD 17 Greece 556.5 na 16.7 billion (23%) in these sectors respectively. They 18 Luxembourg 541.4 134.0 were followed by trade and repairs (11.7%) as well as 19 Finland 479.2 179.0 transportation services (10.2%). 20 Portugal 423.4 66.6 21 Spain 387.4 40.5 22 Norway 343.7 69.8 23 Japan 258.0 262.4 5. Foreign investors in Poland 24 Canada 212.7 287.9 25 Croatia 173.0 16.0 On December 31, 2003 there were 996 companies from 26 Australia 158.1 11.0 35 countries on "The List of Major Foreign Investors in 27 Turkey 100.1 58.0 Poland", which is prepared by PAIiIZ (including 28 Israel 70.4 131.0 companies, which have invested in Poland at least USD 29 Slovenia 66.2 42.5 1 million). Over the recent few years the number of 30 Czech Republic 61.3 na 31 South Africa 57.2 na entities with the share of foreign capital monitored by the 32 Hungary 55.8 10.0 Agency has been growing dynamically.