POLSKA POLAND POLSKA POLAND POLSKA POLAND POLSKA POLAND POLSKA POLAND POLSKA POLAND POLSKA POLAND NEWSLETTER September 17th 2009, number 140

NEWS FROM THE EDITOR The upcoming days will see a group of Polish Information and Foreign Investment Agency Dear Readers, representatives from Ministry of Economic organised a discussion panel “Investment In this week's issue we recommend to read an Development and Trade of the Kyrgyz Republic. The acquisition in the times of crisis - CEE's account of the XIX Krynica Economic Forum and group is the second Kyrgyz delegate group which is competitiveness” which also took place on the information on PAIiIZ activities for the development to take part in PAIiIZ training programme. second day of the Forum. The panel enjoyed the of market institutions if the former Soviet Union This year, in October, PAIiIZ will also receive patronage of the Foundation Institute for Eastern Republics. This week UNCTAD presented its annual delegates from the Armenian Development Agency Studies. The idea behind the discussion was to World Investment Report which in Poland was (ADA). The training visit will focus on experience present investment climate in the region of Central published at a conference organised by PAIiIZ. Also sharing in the filed of investment support and and Eastern Europe and the region's potential of this week the European Commission published its enterprise development. investment acquisition in the field of the so called latest economic forecast which confirms the strong Moreover, at the beginning of October the Deputy new wave sectors. The panel attempted to compare position of the Polish economy in a difficult Prime Minister and Minister of Economy Waldemar investment attractiveness of the region with the environment. At the end you will find accounts of the Pawlak will pay a visit to Kazakhstan. The visit will emerging markets in Asia. The debate, chaired by openings of some new foreign investments like overlap with a Polish-Kazakh Economic Forum the president Sławomir Majman, was attended by TBAI, Cargotec and Cadbury. which will be attended by groups of Polish and representatives of Czech, Slovak and Hungarian Pleasant reading! Kazakh entrepreneurs. investment agencies. Among panellists there were : On the eve of the Polish Deputy Prime Minister's visit Alexandra Rudyšarová - Director at CzechInvest, to Kazakhstan, PAIiIZ organises a study tour in Ivan Jukl - Director at CzechTrade, Ágnes Kozma - PAIiIZ SUPPORTS MARKET Poland for a group of major Kazakh media Director at ITDH, Ludwik Sobolewski - President of INSTITUTIONS DEVELOPMENT IN representatives. The visit will serve as an opportunity the Management of the Warsaw Stock Exchange. THE FORMER SOVIET REPUBLICS. to present the journalists possibilities of economic During the panel Mr Majman presented competitive The Polish Information and Foreign Investment co-operation between the countries and its future advantages of the CEE region highlighting those Agency begins to support the development of development perspectives. which are especially attractive in the times of crisis. democratic and free market institutions in the In turn, the Kazakh capital city Astana will in the According to PAIiIZ President, near future may see former Soviet Union Republics. foreseeable future host an exhibition “Designed in our region become the world BPO and R&D Poland”. The exhibition aims at presenting Polish investment valley in the fields of new technologies. design - this time silver and amber jewellery. The Poland stands a very good chance of attracting this idea behind the event is to encourage foreign kind of investment thanks to the country's human consumers to reach for Polish products.(PAIiIZ) capital, competitive labour costs, favourable geographic location and high quality of provided services. Polish experts in investor service, privatisation and PAIiIZ ON THE XIX KRYNICA Panellists representing key investment agencies in economic promotion will provide trainings during ECONOMIC FORUM the CEE region discussed also the issue of the which they will share information and experience This year's forum took place between September region's competitiveness in the context of Asian Poland gained in the process of foreign investment 9th and 12th in Krynica. The forum ranks among the markets (India, China), carried out a direction and project acquisition. biggest yearly gatherings of economists, method analysis of how to encourage investment in Due to its location, on the border between the politicians and businesspersons in the region of the times of crisis and shared experience in the field European Union and the former Soviet Union, Central and Eastern Europe. of investors' expectations towards investment Poland has a special role to play in that the country Over 900 participants from 60 countries in Europe, agencies. (PAIiIZ) may help improve relationships between the Asia and America decided to take part in panels, countries of the East and West of Europe. Study visits discussions and other types of meeting at this year's in Poland and training programmes offered by PAIiIZ CONFERENCE ON OECD forum. Poland was represented by Deputy Prime GUIDELINES PAIiIZ experts will provide the representatives of the Minister, Minister of Economy Waldemar Pawlak, The Polish Information and Foreign Investment former Soviet Union countries with information on Minister of Tresury Aleksander Grad, Deputy Agency invites to a conference on OECD market economy principles, democratic institutions Minister of Finance Ludwik Kotecki and Secretary of and effective investment acquisition. State at the Chancellery of the Prime Minister Michał Guidelined for Multinational Enterprises 12 At the moment PAIiIZ has been realising the project Boni. Among panellists there were also the former Bagatela Str. at 10 a.m. The conference is “Enhancing the performance of market economy Polish President Aleksander Kwaśniewski and organised in co-operation with the British-Polish institutions in the Republic of Belarus”. The aim of President of the European Parliament Jerzy Buzek. Chamber of Commerce and the Responsible Business Forum (FOB). the programme is to support Belarus in the process Debates on the forum fell into several categories, of privatisation and commercialisation of state-run among others, regional issues, investment, enterprises. In the framework of the programme on th privatisation and economic development. Major August 24 the first training session for Belorussian issues brought up on this year's forum concerned the civil servants took place in Minsk. The focus of the economic crisis, summary of the transformations session was to help the participants prepare a which took place in Europe in the last 20 years and The National OECD Information Point wants to preprivatisation strategy. The series of trainings in the set of challenges faced by the European Union. encourage companies active in Poland to implement Belarus will be concluded with a training conference The inaugurating session was held with the motto: OECD guidelines and to promote them in everyday in Poland during which representatives of “European Solidarity - 20 years after the Revolution” business practices. Together with BPCC, CSRInfo Belorussian administration will have the chance to and was devoted to a discussion on Europe's unity in and FOB the OECD Information Point team learn the workings of Polish privatisation processes. the time of crisis. The second day of the forum prepared a programme which includes a pilot self- Among conference panellists there are: professor focused on economic issues. The Warsaw Stock assessment questionnaire in which a company will Aldona Kamela-Sowińska, Wiesław Rozłucki PhD, Exchange (GPW) organised a panel on M&As and be able to self determine to what extend has it been Marcin Święcicki PhD and Richard Mbewe PhD. portfolio investment. Among the analysts who meeting the standards set in OECD Guidelines for The Polish Information and Foreign Investment participated in the panel there were the GPW Multinational Enterprises. The conference will serve Agency in co-operation with German Federal President - Ludwik Sobolewski, Undersecretary of as an opportunity to present the role of the National Ministry of Economics and Technology organises a State in the Ministry of Foreign Affairs - Paweł OECD Information Point and to review the OECD twinning programme geared towards the Wojciechowski and PLL LOT President - Sebastian guidelines. Participants will have the chance to learn investment agency Invest in Ukraine which is Mikosz. The discussion was also attended by the what recommendations result from OECD expected to help the agency reach European PAIiIZ President Sławomir Majman, who Guidelines for multinational companies active in standards. The programme is planned to start by emphasised that in the time of crisis Poland does Poland and what are the potential benefits from the the end of the year and will include trainings in the stand out from among other European countries, application of the guidelines.There will also be a field of regional co-operation, investment being the only state recording positive economic presentation of companies which filled out incentives and data base creation as well as in growth indicators, thanks to the country's sound questionnaires concerning the standards of the economic development and promotion strategy financial system, absorbent market and attractive guidelines. For more information contact Danuta preparation. The programme has been financed investment incentives, including European Funds Łożyńska at 0048 22 3349983, e - mail: from EU funds in the frame of the European allocated to the development of the country. The [email protected] (PAIiIZ) Neighbourhood and Partnership Instrument. Polish Information and Foreign Investment Agency www.paiz.gov.pl POLSKA POLAND POLSKA POLAND POLSKA POLAND POLSKA POLAND POLSKA POLAND POLSKA POLAND POLSKA POLAND INVESTMENT IN POLAND THE JAPANESE INVEST IN DOLNY CARGOTEC STARTS NEW operation we have had with the local government. ŚLĄSK CONSTRUCTION IN POLAND Cargotec offers goods loading and unloading solutions on land and at sea - wherever cargo is Japanese motor company has invested in Cargotec initiates the construction of a multi- needed. Cargotec's main daughter brands Hiab, Nowogrodziec - Wykroty. This is the first TBAI assembly unit in Starogard Szczeciński. Foundation Kalmar and MacGregor are global market leaders in investment in the EU and will be located within the stone-laying ceremony was chaired by Cargotec their fields. The total value of Cargotec's sales Kamienna Góra Special Economic Zone for President - Mikael Mäkinen and attended by the amounts to EUR 3.4 billion in 2008 and it employs Medium Business. Under-Secretary in the Ministry of Economy Rafał about 11,000 workers. Cargotec's class B shares are Baniak and PAIiIZ President Sławomir Majman. The The 8 ha lot has already been prepared for the first quoted on the NASDAQ OMX Helsinki. (Cargotec) construction project which is to start in a few days. A Polish Information and Foreign Investment Agency production complex planned by the investor will provided Cargotec with assistance through the consist of a stamping press and a paint and welding investment-connected process. CADBURY'S NEW CHOCOLATE shop. Starting from June 2011 the new company FACTORY IN BIELANY planes to reach production capacity of 280 000 of WROCŁAWSKIE frames and car seats coatings a year, which will then Cadbury finishes another stage of its investment be delivered to an assembly plant of Toyota Boshoku Group in Europe. Iwona Krawczyk, President of the in Poland i.e.one of the biggest investments in Kamienna Góra Special Economic Zone sees the Poland and the company's another project in investment among the most important projects Dolny Śląsk. The project was realised with the realised in the zone. The Japanese will invest here PLN help of PAIiIZ. 120 mln. - Chances are that the project will be one of Bielany Wrocławskie based factory, which has the biggest investment not only within our zone, but currently been extended, has doubled its size. It was th also in the whole region - said President Iwona The Ceremony was attended by Rafał Baniak – ready for use on September 10 ,2009. Krawczyk. Undersecretary in the Ministry of Economy and Sławomir Majman – PAIiIZ President. Source: Cargotec In recent years Poland hosted Cadbury's investment President of the TBAI Poland management board, worth EUR 200 mln. The newest set of projects Masaki Suzuki said: - Today we have only a germ of The new plant will play a crucial role in Cargotec's consisted in: extension of the Bielany Wrocławskie our future plans. We will use and combine state-of- long-term supply strategy. Thanks to its convenient factory, modernization of Wedel's factory in Warsaw the-art technologies. We will provide our clients from localisation the plant will not only supply European and construction of a new chocolate factory in all over the world with products of the highest quality markets but will help reduce costs of production and Skarbimierz. These ventures form part of a complex and for an affordable price. TBAI declares it will create transport. It will also stimulate Cargotec's purchase 420 new workplaces. The Japanese underline that strategy which makes Poland one of the investor's strategy in Central-Eastern Europe - We are proud of they do see their company develop in Nowogrodziec major links in the chain of Europe-oriented our investment and pleased to take this step in in the future. These declarations were warmly distribution. building the most modern and energy-efficient welcomed by the city's authorities. The extension of the facility in Bielany Wrocławskie assembly unit within the corporation - said president started in February 2008 and was finished on July Mäkinen. Cargotec announced the investment plan in th 2 20 , 2009. The factory's area rose from 13 000 m April this year and in June bought a 41 ha investment up to 30 000 m2. Thanks to the extension the facility lot. Construction develops according to its schedule. Production should start in the second quarter of 2010. will now be capable of producing a double amount Then a number of employees will rise to reach 200 of products under Cadbury and Wedel. The factory persons. The plant is planned to support other offers employment to 650 people. (Cadbury) facilities in the production of Cargotec's appliances for reloading of commodities. - Stargard Szczecinski Tokuichi Uranishi - TBAI. Rice, salt and sake on a building offers excellent road and waterway connections to our site are to ensure the success of the investment. Source: Kammienna-Góra SEZ 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- REPORTS AND ANALYSYS WORLD INVESTMENT REPORT 2009 the record high 2007 (US$16.6 billion) the country member state to record a positive GDP. The forecast On September 17th the World Investment Report together with Romania, the Czech Republic and emphasises that Polish economic indicators for the 2009 Transnational Corporations, Agricultural Bulgaria attracted the greater share of FDI in EU first half of the year were better-than-expected. Production and Development prepared by United (77%). According to UNCTAD data, 2008 saw 353 In the report Polish economic situation was described Nations Conference on Trade and Development greenfield projects realised in Poland what constitutes under a heading: “Strong resilience in a difficult a 6.6% share of all projects located in Europe. was published on a conference at the Polish environment.” EC has appreciated the intensive Despite the fact that its outflows declined by 18% the Information and Foreign Investment Agency. economic activity of Polish companies, relatively low This year's issue of the report, analysing world trends United States maintained its position as the largest outward investor in 2008, followed by France and dependence on export and import thanks to domestic in foreign direct investment (FDI) flows, shows that production and the strength of domestic demand. prospects for global FDI remain gloomy. As a result of Japan, making its début on the list of top five investing In his comment on the prognosis, Polish Minister for a worsening of the financial and economic crisis the countries, with a 74% increase in outward FDI. estimated FDI inflow in 2009 fell from about US$1.7 Strong effects were felt by TNCs in 2008 and early Finance Jacek Rostowski told the Polish Press Agency trillion in 2008 to below $1.2 trillion in 2009. 2009 when TNCs experienced declining profits, that the information has not come as a surprise to Recovery is expected to be slow in 2010, reaching no increasing divestments and layoffs, and a number of him. Mr Rostowski emphasised the fact that Poland more than $1.4 trillion, but gathering momentum in major restructurings and bankruptcies. Transnational will be the only EU country with a positive GDP 2011 to approach $1.8 trillion. corporations from developed countries continued to growth. Polish GDP is expected to grow at the fastest The crisis has changed the FDI landscape, with a account for about 84% of total cross-border M&As in rate from among EU countries and in the future also developed countries, while TNCs, mainly from China surge in the developing and transition economies' from among OECD member states. (according to UNCTAD the term refers to the South- and the Russian Federation, were by far the largest investors from developing countries and transition The high economic growth rate has to a large extent East Europe and CIS) share in global FDI flows to 43% been influenced by the unflagging entrepreneur and in 2008. This change in the pattern of inflows is partly economies. According to the authors of the report, consumers spending. The Ministry adds also that it due to the large decline in FDI inflows to developed TNCs in industries that are less sensitive to the countries, which in 2008 shrank by 29% compared business cycle and which experience fairly constant was the fact that IMF provided Poland with the flexible with their level of the previous year. In turn, the least demand (such as agribusiness and some services), as credit line that substantially helped Polish economy developed countries (LDCs) attracted a record US$33 well as those with positive long-term growth prospects reach positive indicators. At the same time the billion worth of inward FDI in 2008. Nevertheless, the (such as pharmaceuticals), have the brightest FDI Commission has not changed forecasts for the whole United States remained the world's largest recipient prospects and are thus likely to drive the next FDI EU and the euro zone and confirmed that GDP in the boom. country, followed by France, China, the United zones is expected to shrink by 4%. (European Kingdom, and the Russian Federation. Commission, PAP) FDI to the European Union (EU) amounted to US$503 NEW PROGNOSIS BY billion in 2008, down 40% from its level in 2007. This THE EUROPEAN COMMISSION was largely due to sharp declines in inflows to the According to he latest prognosis from the European United Kingdom (over 47%), Germany (round 56%), Commission, the Polish GDP is to grow by 1%. Italy (over 57%) and France (25.6%). Although FDI inflow in Poland in 2008 was round 27% lower than in EC economists expect Poland to be the only EU MACROECONOMIC POLAND Exchange rates (as of 17.09.2009) Buy Sell Polish Information and Foreign Investment Agency 00-585 Warsaw, ul. Bagatela 12, tel. (+48 22) 334 98 15, fax (+48 22) 334 99 90 USD 2,7935 2,8499 e-mail: [email protected] EUR 4,0966 4,1794 Public Relations Division Economic Promotion Department Source: www.nbp.pl Polish Information and Foreign Investment Agency www.paiz.gov.pl