BizPoland Magazine - September 2015

September 2015 vol. 7 no. 3(49) Price: 20 zł

Łódź region bets big on infrastructure Roads, rail, city center projects drive growth in offices and distribution centres SSC:

Energy:

City News:

Goldman in major IT expansion

PGE crushed by wind energy

Port of Gdańsk expands

Table of Contents City Special – Łódź:

September 2015

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Łódź region bets big on infrastructure

12

EU funds stimulate the region’s economy

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Łódź and Łódź SEZ join the Aviation Upland Cluster

20

Mayor seeks to restore the previous splendor of the city centre

24

Tight market in Łódź Retail

26

Łódź office market buoyant with new schemes

vol. 7 no. 3(49)

Published by: BizPoland Media Group sp. z o.o. ul. Długa 44/50, bud. D, lok 704, 00-241 Warszawa tel.: 022 831 7062

Energy

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(27) Amec Foster Wheeler wins second heat power plant contract (28) CVC Capital Partners buys PKP Energetyka from Polish State Railways; FWT to build wind farm with 33 wind turbines (29) PGE share price crushed by wind competition and plunging electricity prices

BPO/Shared Services 30

Goldman to add several hundred IT Jobs in global tech push

31

US Financial Services Giant Invests in Gdańsk

32

Orange Polska sells off its Contact Center to outsourcing firm

FDI News 34

Production savings lures global automotive suppliers

35

GKN Driveline in major expansion

36

179 new investments in works by PAIiIZ

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Fish processing slows down on lower EU funds, overcapacity

38

Scanaqua again in ŁSEZ

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Rolls-Royce and Hispano-Suiza JV to build production plant in Poland

40

Katowice SEZ: PLN 900m in 2015

41

Chipita expands its plant in Łódź SEZ

City News

(42) Gdańsk/Gdynia (44) Kraków; Katowice (45) Poznań (46) Lublin; Wrocław

Chambers of Commerce News

(48) Austria; Canada; Czech (49) France; Germany (50) India; Ireland; Italy (51) Latvia; Luxemburg (52) Netherlands; Sweden; Scotland

Events 53

Taiwan Minister boosts trade ties to Poland

54

Pride of Poland Arabian Horse Auction

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Poland’s Aviation Valley at Paris Air Show

FDI Poland Investor Awards 15 October 2015

3rd annual FDI Poland Investor Awards, recognizing top foreign companies operating in Poland

Nearly 300 international guests.

Top executives from 23 countries.

Awards categories for 19 countries/regions.

Special discounts for 17 Chambers of Commerce members: UK, France, Japan, Korea, Poland-China Chamber, Spain, Portugal, Switzerland, Austria, Germany, US, Italy, Scandinavia, Belgium, Netherlands, Canada, Ireland.

Supporting Chambers of Commerce

Organizer

Organizer

WWW.FDIPOLANDAWARDS.PL

FDI Poland Investor Awards 15 October 2015

FDI Poland Investor Awards 2014 Winners Top Technology Park of the Year

Top Special Economic Zone of the Year

Top CEE (Central East Europe) Investor

Top German or Austrian Investor

Top Swiss Investor

Top French Investor

Top Benelux Investor

Top Iberian Investor

Top Scandinavian Investor

Top UK/Irish Investor

Top Indian Investor

Top Japanese Investor

Top Korean Investor

Top Chinese Investor

Top Investor of the Year – Rest of World

Top Canadian Investor

Top U.S. Investor

FDI Poland Investor Awards 2014 Jury Steve Rank

Marek Matraszek

Senior Trade Commissioner - Central Europ, Australian Trade Commission

Founding Partner, CEC Government Relations

Karl Schmidt

Minister-Counsellor, Embassy of France

Commercial Counselorm, Austrian Embassy in Warsaw

Antoni F. Reczek

Chairman, British-Polish Chamber of Commerce

Nicolas Lepage

Counsellor (Commercial) and Senior Trade Commissioner, Embassy of Canada in Poland

Edward Zhu

Jean-Marc Fenet Michael Kern

Chairman, Polish-German Chamber of Industry and Commerce (AHK Poland)

Kari Vähäkangas Commercial Counsellor, Head of Finpro Poland

Amit Lath

Sr. Vice President, Indo-Polish Chamber of Commerce & Industry

Mike Hogan

Commercial Counsellor, Embassy of Ireland

Tal Harmelin

Director for Economic Affairs to Poland and Czech Republic, Embassy of Israel to Poland

Yoshito Okada

President / Zwiazek Pracodawcow Shokokai, Japanese Chamber of Commerce

Kwon Dong-seok

Counselor, Embassy of the Republic of Korea in Poland

Inese Sulzanoka

Head of the Representative Office in Poland, Investment and Development Agency of Latvia

Ernesto Malda

Head for Commercial and Economic Affairs, Embassy of Mexico to Poland

Stefan Bekir Assanowicz

Chairman, Polish-Spanish Chamber of Commerce

Vladislav Chlipala Commercial Counsellor, Embassy of the Slovak Republic

Chi-young Chen

Slawomir Majman

Director, Economic Division of Taipei Economic and Cultural Office in Poland

Antonio Castro

Director, UKTI Poland

President, Polish Information and Foreign Investment Agency S.A. (PAIiIZ) Vice-President, Polish Portuguese Chamber of Commerce (PPCC)

vicepresident, PolskoChinska Rada Biznesu

WWW.FDIPOLANDAWARDS.PL

Martin Oxley

Nguyen Duc Thanh Commercial Counselor, Vietnam Embassy

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European Economic Forum – Łódź

Łódzkie

Łódź region bets big on infrastructure Big investments in infrastructure for Łódź and the Łódź region are due to come online in 2016, and private investors are following the lead.

International and Poland-wide real estate developers like Skanska, GTC, Echo Investment, and Griffin all have targeted Lodz for further office projects.

Global logistics firm UPS has set up major logistics operations, and followed up that investment with a new Shared Services centre in Lodz. And warehouse giants like Panattoni and P3 see the value of Lodz's central location at the intersection of the A4 and A2 highways.

Add to that a major overhaul of Lodz's local road and suburban rail networks, combined with the major Lodz Fabryczna rail station project, and the Lodz region stands tall and ready to welcome new investors.

Here below are some of the major initiatives underway in Lodz and the region:

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New Centre of Lodz (NCL) project It will cost PLN 2 billion to restore the centre of Łódź to its splendour. Much of the necessary funding is

being obtained from EU funds supporting the restoration of rundown urban areas. One element in the projected revitalization of the centre of Łódź is the New City of Łódź (NCL) Programme.

The above definition of revitalization applies well to the New Centre of Łódź Programme, the purpose of which is to give new life to almost 90 hectares of land that quite recently was lifeless, inaccessible and neglected. Railway tracks running through the centre of Łódź cut it into two parts and contributed to the appearance of a functionless desert that deepened the degradation of infrastructure and social fabric. The construction of the new underground Łódź Fabryczna station will open up this post-railway area to new

functions and will enable its being connected with the historic city centre and Piotrkowska Street. New business, service, cultural, educational and housing functions created in the area will shine on the nearby quarters and will attract young creative people who see their future in Łódź. “Residents should feel safe and comfortable here”, says Błażej Moder, the director of the Management Board of the New Centre of Łódź. “We want them to return to the centre, because their outflow to the outskirts of Łódź and the adjacent municipalities

September 2015

that increased in the last decades has badly affected the demographic and functional situation of the city.

For us, the NCŁ is a true laboratory of revitalization projects and one of our main goals is to ensure that its area is seamlessly connected with Piotrkowska Street.”

Mr Marek Janiak, the City of Łódź Architect, endorses this vision. “As far as the NCŁ is concerned, the most important purpose of revitalization is to ensure functional and social integration between the newly developed area and the historic city centre that surrounds it. The cultural, commercial and housing functions of Zone I will make it the roundthe-clock centre of life for the whole NCŁ area. The project involving the revitalization of the EC1 power station and its adaptation towards cultural and artistic functions, the Special Zone of Culture, the market, and the festival and congress centre are to ensure that it will be really so. Zone II is intended for commercial and revitalization projects aimed at preserving the historic properties and creating urban fabric with distinctly “city character” and well integrated with its surroundings. Zone III is densely developed with historic buildings dating from the 19th and 20th centuries forming big-city quarters.

These buildings have priority in the revitalization programme. The concept developed for this area is based on the outcomes of the “Sewing up the City” workshop of 2011. This zone is envisaged as a bridge between new structures and their historic setting.”

Łódzkie 3rd Poland - China Regional Forum A trade office of Chinese city of Chengdu was opened in Łódź on 28 June. The opening ceremony was held under the 3rd Poland - China Regional Forum that this year has been dedicated to regional cooperation between the two countries.

[GoChina] Łódź is the third city, after Gdańsk and Canton (China), where the forum is held. The regional perspective is the new dimension of the cooperation between Poland and China and a key topic of this year’s forum.

The conference gathered 200 representatives of 12 Chinese provinces, and 300 representatives of the Polish site including minister of foreign affairs Grzegorz Schetyna, deputy minister of the Ministry of Economy Grażyna Henclewska and PAIiIZ president Sławomir Majman. “Benefiting from the good political climate between Poland and China matters the most, now”, commented Mr Majman.

The 3rd Poland - China Regional Forum coincided with the establishing the trade office of the city of Chengdu in Łódź. This is the next step and the best example of strengthening the local cooperation between the two countries. In June 2015, during the recent visit of Polish minister of foreign affairs Grzegorz Schetyna to China, a Polish consulate was opened in Chengdu. It is the forth Polish consulate after Shanghai, Hong Kong and Canton in China.

The new office of Chengdu in Łódź of will support the economic cooperation between the two sides. It will also provide promotion activities regarding the rail road linking both cities since two years. Also this year, a cooperation agreement establishing join venture between Polish PKP Cargo and Zhengzhou International Hub (Henan province) was signed to develop new rail road between Poland and China. •

European Economic Forum – Łódź

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European Economic Forum – Łódź

Łódzkie

Renovation of the historic estate of Księży Młyn As well as launching the massive NCŁ programme, Łódź has also tried for several years to develop some ways of saving its architectural heritage. The longstarted renovation of the historic estate of Księży Młyn consisting of workers’ houses has been accompanied by attempts, unfortunately futile, to obtain funds for the revitalization of the big-city area from the Regional Operational Programme through the city’s project „Pro-revita”. The first full-scale project involving the renovation of the municipality-owned historic tenement buildings is Mia100 Kamienic (the City of 100 Tenement Buildings) initiated in 2010. The renovation of the symbolic one hundred buildings, most of which have unique architectural value, will be complete by 2014. The project has changed the way the centre of Łódź is perceived. Residential units in the newly refurbished buildings will not be used for social housing but they will serve as an asset capable of drawing the middle-class citizens to the centre. The City of Łódź has rented out some of the units to students and graduates of higher education institutions based in Łódź to encourage them to stay in the city.

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Lodz Fabryczna station Tracks are nearly fully laid at the new Lodz Fabryczna station with more than 10km of the required 12.5km of track now in place for the station, which is set to become a hub of regional and long-distance railway

services and a key interchange in the proposed Warsaw - Lodz - Poznan Y line high-speed network.

Regular deliveries of construction materials for the track project began in February and at the end of March, Tines, Poland, which is responsible for laying track as a subcontractor to Torpol, laid the first section of slab track. A consortium consisting of Torpol, Astaldi and PBDiM is responsible for executing the project, which is partly funded by a €85.5m grant from the European Union, and is estimated to cost about $US 500 milion). The European Commission approved €89m towards the €111m cost of the Łódź Fabryczna Multimodal Hub project, which includes construction and upgrading of tram infrastructure, and the creation of a tram and rail interchange and a park & ride site.

The three-level station will become the main part of a multi-modal transport junction which will connect agglomeration and conventional railway, long-distance buses, city public transport and private car transport in the city center. The façade of the new building will resemble the original Lodz Fabryczna station which was demolished in June 2012. The second level is situated eight metres below the surface and includes commercial facilities and office space as well as 960 car parking spaces and a bus terminal.

The third level 16m below the surface is the platform area with four platforms and eight tracks.

The station reconstructed in this way will become a part of a designed cross-city railway line (including

September 2015

www.bizpoland.pl tunnels connecting Łódź Fabryczna with Łódź Kaliska will be necessary. Travel time between the capital and Łódź via express train Warsaw-ŁódźPoznań-Wrocław will be shortened to circa half an

Airbus Helicopters opens R & D facility in Łódź Airbus Helicopters has opened an engineering design office in Poland, expanding its research and development capabilities. The facility, with about 100 engineers, is in the city of Lodz and is the company’s fourth such facility. The others are located in France, Germany and Spain.

“We see a significant potential from Poland, particularly with its young and skilled engineers who can contribute to a new way of bringing innovation to our products and systems,” said Airbus Helicopters President Guillaume Faury. “Our goal is to have Airbus Helicopters Polska directly involved with us in many fields, including organization, processes and design.”

Airbus Helicopters said the design facilty will deal with a variety of mechanical design work and focus on breakthrough technologies in such

areas as rotorcraft drive systems and equipment for military and commercial helicopters.

The company said it has been cooperating with Polish institutions for the past decade, among them the Lodz University of Technology, the Technical University of Radom and Gdansk University of Technology.

Development of its X3 high-speed hybrid demonstrator aircraft was assisted by the Lodz University of Technology’s work on propellers, aerodynamic optimization and engine integration, Airbus Helicopters said.

Fifty-four Airbus Helicopters aircraft operate in the country, with maintenance, repair and overhaul services for them being provided by Heli-Invest, Airbus Helicopters’ local distributor and partner. •

European Economic Forum – Łódź

a 4.2km underground section) which would run under the city center of Łódź and which would service regional and high-speed trains. In order to create this line, additional system of underground

Łódzkie

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European Economic Forum – Łódź

Łódzkie

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hour, which will also enable faster access to Wrocław and Poznań, and further – to Prague and Berlin.

The station is expected to handle up to 200,000 passengers per day, with an expected opening date currently estimated at September 2016.

Textiles industry to get €95m to spur innovation The Polish government has unveiled plans to invest as much as PLN 400 million to fund research and development activities in Lodz, the centre of Poland's textile industry. Local observers say that the programme could provide the city with a much-needed opportunity to overhaul and modernise its underinvested and troubled textile players. As part of the Innotextile programme, the Polish government aims to fund the development of innovative textiles, such as hydrotextiles, geotextiles and agritextiles, and their production by local manufacturers. The programme will be carried out with the use of funds provided by the European Union as part of its financial perspective for the years 2014 to 2020. Of the €95 million of available funds, 50% are to be provided by the EU, and the remainder by local companies and consortia.

Textile manufacturers interested in obtaining the funds will be required to apply to the country’s National Centre for Research and Development (NCBiR), a state-run entity in charge of implementing programmes within the area of science, technology and innovation. A feasibility study which led to the launch of the Innotextile programme was developed

by Poland’s textile industry association Federation of Apparel and Textiles Industry Employers (PIOT) which cooperated on the study with consultancy firm PWC. "We hope that the funds obtained through the Innotextile programme will have a significant contribution to increasing the competitiveness of the textile sector, and allow to develop new technologies and products by the industry," PIOT said.

Tadeusz Wawrzyniak, the president of the industry association, said that the funds would be allocated directly to the producers, which will develop the most promising textile technologies. "The programme

www.bizpoland.pl is an opportunity for companies active in the textile sector, research and development units, but, above all, for small- and medium-sized enterprises which we represent, to experience a rapid growth and increase their competitiveness," Wawrzyniak said. "It will also provide them with a chance to establish themselves in the global textile market."

Aviation Upland launched The official letter of intent to establish Wyżyna Lotnicza (the Aviation Upland) was signed in late spring. The concept is to develop a highly specialized military aviation cluster covering the area of Łódź, Radom and Dęblin and to attract aerospace investors to create new jobs in the region.

According to the signed letter of intent, the three cities will join forces regarding aircrafts production, servicing and R&D. “Wyżyna Lotnicza” is also supposed to be associated with highly specialized professional education centre of aeronautics and military pilots. It will offer training for both Polish and foreign pilots that are not able to be trained in their own country. The prestigious military training schools "School of Eagles” in Dęblin is this year celebrating the 90th anniversary of establishment of the school. The institution trains not only Polish military pilots, but also foreign ones from countries that will not be able to organize the training themselves.

Wyżyna Lotnicza has been also created to deliver new technologies and develop vocational

World Expo in 2022?

The transformation of the image of Łódź has a great chance of becoming an instance of showcase revitalization and of gaining a lot of publicity across Europe and the world. The Polish government supported the City of Łódź application for the organization of the International Expo dedicated to the revitalization of urban areas. The city has formulated its application around the NCŁ and revitalization programme carried out in the centre of the city. International Expos are organized between the World Expos that are bigger events held every five years with the purpose of presenting world’s achievements in civilization and technology. If the city’s application is successful, Łódź would host the International Expo in 2022. Because International Expos live three months and receive several million visitors, the Łódź Expo would be a perfect opportunity for the world to see the long road that the centre of Łódź has had to go from its status of one the most degraded areas to becoming a truly European, attractive centre. •

training regarding aviation and aircraft building.

“Well prepared staff - including engineers - working there can lead to the fast development of such creative sectors as an aviation and aerospace

September 2015

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project. Produced by Airbus Helicopters, H225M Caracas was invited as the only participant to the final stage of the tender. Thanks to the investment, at least 3,500 new jobs will be created in the Łódź - Radom - Dęblin region: 1,250 people will be hired directly in the production of helicopters and other 2,000 in the supplier companies. “The potential of the region can be used under the Polska Grupa Zbrojeniowa (PGZ).

Two projects from PAIiIZ will probably be implemented in Wyżyna Lotnicza, while 7 in the Aviation Valley near Rzeszow. “We expect that in Autumn, PAIiIZ portfolio of aviation projects will grow to 20 investments”, commented deputy director of Foreign Investment Department in PAIiIZ, Marek Szostak.

This is the next aviation hub in Poland after Aviation Valley, and clusters in Wielkopolska, Lublin and Śląsk and other fast developing aviation centres in Poland. Project was announced together by the head of the Ministry of National Defense Tomasz Siemoniak and PAIiIZ president Sławomir Majman at the beginning of May in 42 Base Aviation School in Radom. “Poland has an ambitious plan to become an international training centre for military pilots. This project derives not only from our ambitions but also from Polish aviation tradition”, commented minister Siemonak. n

European Economic Forum – Łódź

industry. This is also a great opportunity for students from Łódź to start a career”, said major of Łódź, Hanna Zdanowska. “Dęblin is the wings of Poland; the city deserves a fast developing aviation industry”, added major of Dęblin, Beata Siedlecka.

A tender for 50 multi-role helicopters for Polish army is the core of the “Wyżyna Lotnicza”

Łódzkie

• In the Center of Poland • Close to A1 Highway • Intermodal Terminal near by • Utilities Prepared • 2 Energy Operators • Łódź Special Economic Zone Status • Real Estate Tax Exempt • Complex Investor Service

Contact:

2015 September

LAST MINUTE 3,8 ha Parcell

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European Economic Forum – Łódź

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EU funds stimulate the region’s economy An Interview with Witold Stępień, Marshal of Łódzkie Voivod

Mr. Marshal, let us talk about the economic development of the region. First of all, what are the biggest opportunities of the Łódź Province?

Marshall of Łódzkie Voivod Witold Stępień: The Łódź region is placed dead-center in the middle of Poland, at the crossroads of the major transportation routes. Thanks to Polish government's roadbuilding drive over the last few years, the country has hundreds of kilometers of new highways and express routes, Our location has become “strategic” and the whole region benefits from it. There are more and more companies that are locating their businesses at the intersections of main roads, and the region is becoming a true logistics center. The voivod is also actively engaged in expanding transportation options. For example, we have helped create multi-modal ports, with an excellent example being the new rail link from Lodz to China. These investments are creating opportunities for reloading the goods to then be transported via road across Europe. Also Łódź's Władysław Reymont airport plays an increasingly important role in the transport of cargo.

What concrete actions are regional authorities taking to develop the region’s economy? And also tell us about obstacles to development and steps that authorities are taking to overcome these obstacles.

The most effective tool to stimulate the region's economy is certainly EU funds. In the previous round (ending 2014) we invested in the region approximately 1.5 billion euros, now we have negotiated an increase of 700 million euro for the next seven year period. The key for the develop-

we have negotiated an increase of 700 million euro for the next seven year period

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ment of the region is entrepreneurship, mainly small businesses, because of the sheer volume of such companies. In the new round of EU funding, money will be available primarily in two priority areas: first, providing funding for research, development and commercialization of knowledge; the

second to support an innovative and competitive economy. From this we will have money for the development of entrepreneurship, improving the competitiveness of small and medium enterprises and their support for business institutions. These two areas account for nearly half a billion euros, which represents almost 30 percent of the allocation from the European Regional Development Fund.

Our regional problem is depopulation, but we try to counteract it by encouraging young people, especially young, enterprising people, to stay in the region. We have targeted them with the Regional Center for Entrepreneurship, so-called. business incubators, established by the Province and Lodz Regional Development Agency. These are the places where young people opening a company can count on substantial support, assistance from experienced entrepreneurs, as well as accounting and legal support. We have created such a center in Lodz already, but together with local governments we will open similar centers in other cities in the region.

September 2015

Also note the support of the Science and Technology Park - a birthplace for companies aimed at new technology in the region.

Investments in this Park are an important point in promoting development of the region. Lodz is generally supporting business-friendly policies aimed at creating new jobs, as well as seeking ways to develop innovation in enterprises and their cooperation with research centers.

What are the biggest development and infrastructure projects of the province for 2015-2020?

We want to continue to grow in terms of transport and logistics. therefore among the most important investments are: Expansion and modernization of the rail transfer stations in Lodz Zdunska Wola - Karsznice. During next year the construction of the underground railway station Lodz Fabryczna will be finished, which would support the second phase of the project - construction of a tunnel-town near Lodz, allowing for quick passage through the city and better connected region.

We will develop a Railway support-environment for the Lodz agglomeration, to connect people in the region closely with its capital. In the plans there are also innovative projects like the Łódzkie Centrum Nowych Mediów, Bioeconomy Center, and expansion of the medical oncology center.

Łódzkie The most important center of the region is Łódź.

Are other towns in the Łódź Voivodeship able to effectively attract investments having such a strong competitor? How? Łódź naturally attracts most investors, but our strategy provides for the sustainable development of the region. Cities are the centers of growth, on which the development of sub-regions have been based. Each of them has been assigned sectors of the economy to focus on, with particular support of EU funds and investments. This is facilitated by the action of the Lodz Special Economic Zone,

In plans are innovative projects like the Łódzkie Centrum Nowych Mediów, Bioeconomy Center, and expansion of the medical oncology center

European Economic Forum – Łódź

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which includes 45 sub-zones scattered around the region and attracts investors with investment incentives. Smaller centers also attract with investment areas prepared just next to the highways. The voivod is also trying to activate the smaller towns, by creating clusters of entrepreneurship and stimulating the weaker sub-regions for investment.

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European Economic Forum – Łódź

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What advantages does Łódz Province offer to encourage potential investors – both foreign investors and large domestic investors?

Our main potential is location - in the center of the country and with very good motorway links, which allow the development of logistics centers. Łódź has a very good base of universities with 120 000 students, as well as highly-skilled and committed employees. Universities and research centers are also counting on the country's scientific potential - research. The Special Economic Zone presents a wide range of tax reliefs and exemptions. We have an attractive innovation strategy developed til the year 2030 and very interesting start-up proposals for the young.

Which large companies have invested in the region?

Which cities are the most effective in attracting investors?

www.bizpoland.pl The most efficient in attracting investors is Łódź, but there are also places strong in using their strategic location along major transport routes: road or rail. These cities for example are strong in infrastructure: Kutno, Radom, Zdunska Wola and Piotrkow. Stryków is using its location near highways to its strategic advantage. American firm

The Chinese are rebuilding the Silk Trail, and we want to be on this route

UPS has just opened its logistics center. Other companies from the logistics sector that have invested in us are: GLS, DHL, Raben, DPD, and DB Schenker. Among the biggest companies of other branches are: ABB, AIG Lincoln, Amcor, BSH, DELL, Euroglas, Fuji Seal Group, Fujitsu, GE Power Controls, Gillette, Hutchinson, Indesit, LG Group, Merloni Elektrodomestic, Metro AG, Procter & Gamble, SouthWestern BPO. A promising transportation link is the new rail connection to China. Regular freight rail now connects Łódź to China. Tell us about the significance of this.

China is one of the most powerful economies in the world. Its a huge market with the largest population of potential customers and is now open to the world. This fact should be utilized fast enough so as not to fall behind the competition. Łódź Regional Government seeks to fulfill this task by establishing relationships with local provinces, especially Sichuan and Canton. These actions stem from our belief that the rapprochement with the Chinese economy is a huge opportunity for companies from our region. The Chinese are rebuilding the Silk Trail, and we want to be on this route. Visitors already call us the gateway to Europe and we want to use it to boost the importance of Łódź and Łódzkie Voivod in Europe, and contribute to the improvement of life in the region.

What will the economy of Łódź Voivodeship look like in 5-7 years?

It will be an economy based on a combination of knowledge and business. Here will be developed innovative ideas and new technologies. Here, creative people will come, seeing that this is the place to look for ideas, and launch their best ideas, even the improbable ideas. I say this with such conviction, because it is our focused policy of Łódź region carried out in cooperation with universities and most rooted in our region concerns. In 5 years Łódź will also be the best transport region in Poland and a major logistics center in Europe. From here many companies will ship their exports. Łódź is one of the fastest growing regions in the country. In five years we will see the effects. n

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European Economic Forum – Łódź

Łódzkie

Łódź and Łódź SEZ join the Aviation Upland Cluster Interview Tomasz Sadzyński with Łodź SEZ’s President of the Board between them and vocational institutions with the aim of creating dedicated courses and adjusting vocational curricula to the needs of local employers.

Moreover, the region offers the possibility to develop business and export its products thanks to the cargo railway connection between LodzChengdu (China). Companies are offered attractive overall conditions of li ving including the British International School of the University of Lodz which guarantees multinational education for foreign investors’ children.

This year, Lodz and Lodz SEZ have also joined the Aviation Upland C luster that was initiated with the aim of developing the production, service, B+R and training potential of three Polish cities (Lodz, Radom, Dęblin), which can become the hub of military aviation. Thanks to the cooperation, we can benefit from air and space investments and new workplaces in the region.

The first half of 2015 was a period of increased activity of new investors in Special Economic Zones across Poland, after recent regulatory changes.

What was the situation in Łódź? Has the area managed to attract many investors so far this year, and what are the prospects?

2014 was a record year in the Zone, mainly because the level of state aid had to be changed and investors were rushing to start their business within the Zone being granted higher levels of tax exemption. 2015 is much calmer, but still successful. During the first half of 2015, we managed to attract 6 investment projects, 5 of which are reinvestments. It means that investors feel good and secure in the Zone and this is the place where they want to expand their business. In 2015, companies

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Mr. President, what is the attractiveness of the Zone compared to other economic zones? What is the biggest asset of the Łódź area?

Tomasz Sadzyński: Apart from the obvious assets of the region, which result from its location in central Poland at the intersection of motorways and expressways with well-developed railway network and the international airport, there are many other benefits that attract investors to us. Lodz SEZ provides the entrepreneurs with a professional team ensuring comprehensive service on every level of the investment process as well as good contacts with local authorities. We support our companies in establishing cooperation

the Aviation Upland Cluster will help us to attract more projects from the aviation sector

declared to invest at least 57,5 million euros creating at least 204 new workplaces and maintaining the employment on the level of 966 employees.

We plan to close 2015 with the number of 15-20 business permits issued. We believe that our commitment to the Aviation Upland Cluster will help us to attract more projects from the aviation sector.

September 2015

Currently, we are also making various steps to start the project of building our own office space (within a historic area where Lodz SEZ’s headquarters is located) dedicated to SMEs and BPO and IT sector. The team of Lodz SEZ has been working on the economic analysis of how to manage the space best. Thanks to the project, the Zone will have its own additional office space within the status

Extension of special economic zones to 2026 was very important information for us and our investors

of the Zone. The project is planned for the end of 2018.

Is the extension of the tax-advantaged period for the Special Economic Zones in Poland to 2026 a sufficient step to ensure a steady supply of new investors?

Extension of special economic zones to 2026 was very important information for us and our investors. Thanks to that, companies have more time to plan their projects and use state aid they were granted. Moreover, it makes Poland

Łódzkie more competitive to other European countries.

However, operating until 2026 is not the only advantage that will enable the Zone to attract various investment projects. Not only do they look for financial incentives, but also well-qualified employees, developed infrastructure, friendly business environment and openness of local authorities. These aspects combined with the Zone operating till 2026 guarantee new investment projects for Poland, regions and special economic zones.

As for the business profile of investors present in the Zone, which sectors are most represented?

And which sectors are your highest priority?

A company located inside the Lodz SEZ should operate within the following sectors: production, IT&BPO and logistics. So far, Lodz SEZ has managed to attract investors from different branches, mostly IT/BPO (e.g. Dell, Ericpol, Fujitsu, Infosys), household appliances (e.g. Indesit, BSH company), ceramics (e.g. Ceramika Paradyż, Ceramika Tubądzin), logistics (e.g. Partner Logistics), packaging (e.g. Interprint, Amcor), automotive (e.g. Haering, Hutchinson), food industry (e.g.

Bakalland, Barry Callebaut, Chipita), cosmetics and pharmaceuticals.

To encompass all major sectors in the Zone, we examine their role in the Polish and worldwide economy, their expectations and demands and adjust our offer to them. We co-organize dedicated events, business meetings and conferences (e.g.

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for household appliances sector, BPO/IT, logistics) and present them our potential (state aid, location in the very centre of Poland and Europe, highlyqualified employees and graduates, etc.).

To intensify attracting IT investors, we became a co-founder of ICT Cluster (cooperation with Lodz University of Technology) which encompasses several dozens of the biggest and most active ICT companies. All members act together to strengthen the sector in the region and better educate future ICT employees.

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Are foreign investors a large part of the companies investing in the Zone? How do you evaluate cooperation with the Zone and the decision by Łódź to invest in the Zone?

52% of the business permits issued in the Zone are for foreign projects. Many of them decide to reinvest in the Zone which confirms our opinion that they feel good with us. In our portfolio, we have large multinational and well-known companies, but also small and medium enterprises.

In 2014 we were titled the best special economic zone for SMEs in Europe in fDi Global Freezones

of the Year ranking published by fDi Magazine (Financial Times Group).

Germany is one of the most strategic business partners for us. Since 2012, we have had our representative in Germany working and cooperating with German investors and institutions and promoting the potential of the Lodz Region.

What are the most distinct successes of the Zone for 2015?

2015 has been very busy for the Zone’s team mostly because of the additional activities and events we have been introducing to our offer. We put a great emphasis on cooperation with Chinese companies and authorities. Only in June 2015, we hosted five delegations from various Chinese provinces (among others 60 companies from EUPIC). The Zone has been strongly promoting Lodz-Chengdu cargo train connection among Polish companies and investors operating mainly within food sector helping them to export their products to Chinese province.

In 2014 we organized a special event called Speed Business Mixer in cooperation with bilateral

September 2015

chambers of commerce. The event was a great success so in 2015 we intensified the project, organizing the second edition in March, and planning another one for November. The event is dedicated for our investors and business partners, and for the members of the chambers (foreign companies representing usually the sector of SMEs). 200 companies (from every corner of Poland, 95% of participants are members of the board and general managers) meet in Lodz SEZ, get to know the Zone

We put a great emphasis on cooperation with Chinese companies and authorities

and companies they can potentially cooperate with.

The event includes sitting at round tables, presenting the company in 2 minutes and exchanging business cards. The participants are offered a special mobile platform where they can get in touch with all companies present at the event.

Our another new initiative is focused on a recently built expressway “S8” that runs through five various regions of Poland and eleven districts of the

Łódzkie Lodz Region. Lodz SEZ, together with three other Polish SEZs decided to act together and prepare an offer for SMEs of investment sites located by the expressway. The decision was announced during a conference with 400 investors, government representatives and local authorities that was hosted by Lodz SEZ. The Zone is going to build warehouse and production spaces along these sites dedicated to SMEs. 3rd International Forum of Home Appliances Manufacturers and Suppliers in Europe held for the first time in central Poland (earlier in the Silesia region) was another success which we were a part of. Over 150 representatives of manufacturers, distributors and experts in the field of home appliances met at an annual conference dedicated to the future of this sector in Poland and worldwide. The event is organized

by Muller – Die lila Logistik Polska and Bluevine Consulting. Lodz SEZ was a Strategic Partner of the project.

In 2015, we have been also active in the field of clustering. We cofounded “Lodz Educational Cluster” including most important institutions, schools and companies that will work together for educating potential employees to meet the standards of companies locating their business in the region. We are going to work together on building and strengthening a positive image of vocational education and training. n

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Mayor seeks to restore the previous splendor of the city centre Interview with Mayor of Łódź Hanna Zdanowska

What is different about Łódź in 2015 from that of 2010? Łódź is a city of strong industrial roots based on light industry. After a difficult time of the economic and political system transformation in Poland, it has become the third city, after Warsaw and Krakow, in terms of population and one of the five metropolises with a population exceeding 500,000 people. The last five years is marked with constant undertaking of modernization activities which keep the city on a new growth route allowing it to achieve the state of balanced and diversified economy. What is more, we have to notice the importance of revitalization processes – in 2010 the city centre experienced social – spatial – economic problems, in 2015 – thanks to Miasto Kamienic program and the spatial revitalization it is possible to restore the previous splendor of the city centre.

The proximity of Warsaw has its advantages and disadvantages. Soon travel from Łódź to Warsaw will be via high-speed trains (2016), reducing travel time to just 70 minutes. Do you think that easier access to Warsaw also carries potential risks for the development of Łódź?

The proximity of Warsaw may cause some difficulties, but also provides a lot of benefits. We try to focus on them, prefering to cooperate rather than compete. This year, after years of discussions the will to cooperate and desire to build one strong area has been formalized, consisting of two centrally located provinces. Common trends have been developed and accepted by adopting the “Strategy for the Development of Polish Central

Both the New Center of Lodz and efforts to host the International Exhibition EXPO in 2022 guarantee the longterm development impulses for Lodz

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2020 with the prospect for 2030”. The document is particularly important because we are in the initial phase of using the EU funds in the financial

perspective 2014 - 2020. The strategy sets directions for the joint development of the region based on our potential including: innovative, creative, pharmaceutical, and medical industries; as well as our central location and transport infrastructure.

Both the New Center of Lodz, as well as efforts to host the International Exhibition EXPO in 2022 guarantee the long-term development impulses for Lodz, Warsaw, the macro region and the whole country.

In the mind of many people from outside the region, Łódź is a city where the population is decreasing faster than in other large Polish cities. Will

September 2015

Łódź be able to again attract people from other regions?

The city is aware of the fact that the primary factor in attracting residents and investors is to provide attractive conditions for life and business. Hence the number of existing large-scale investment processes. The agency believes large investment projects will increase the appeal of the center of Łódź and help keep residents in the area. According to

Young people know very well that the world’s largest companies are investing with us, developing their production and R&D centers

the S&P agency “planned, significant investment program for the city should help in the transformation of the local economy into a logistic center, contributing to a further reduction in unemployment.”

It should also be remembered that thanks to good communication within the metro area and strong functional linkages between cities, Łódź has access to a large base of employees from across the region - nearly 1.5 million people within a radius

Łódzkie of 30 km. Evidence of socio - economic development of Łódź is the fact that we note the positive migration balance - about 700 people per year (about 200 more than the year before) – and the most important age group is 20-29 year olds.

Young people know very well that the world’s largest companies are investing with us, developing their production and R&D centers, as evidenced most recently by the Airbus project.

What is your idea of the image of Łódź in Poland and Europe? Łódź has the ambition not only to be geographically in the center of Europe, but especially - in terms of economy and tourism - to take a place among the most attractive, growing European metropolises. The city still increases the attractiveness of its central areas by restoring historical urban fabric as well as giving it new features.

In addition, Łódź has a unique opportunity to appear in the consciousness of the international community in connection with applying for the right to host the International Expo in 2022.

EXPO is an opportunity for Łódź to attract modern investment and economic stimulation.

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In connection with the next EU financial budget for 2014-2020, Łódź has very ambitious investment plans. Can you tell us about the most significant urban projects?

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Łódzkie The biggest currently conducted investments include: “Miasto Kamienic” (PLN 114.3 million), the multimodal hub of the Łódź Fabryczna station (PLN 450.2 million), the Program of the Łódź New City Centre – reconstruction of infrastructure in the neighbourhood of Łódź Fabryczna station (PLN 24.7 million), Piotrkowska Street (PLN 62.3 million), East-West route (PLN 741.8 million) and the revitalization of EC-1 (PLN 317.7 million). The city of Łódź has also adopted a list of strategic projects thanks to which, in the new financial perspective 2014-2020, it plans to make investments in the amount of PLN 3.25 billion divided into four areas: revitalization, transport and communication, environmental protection, education and sport.

The flagship project of the development of the city is New Centre of Łódź - the largest public investment in Europe. Tell us about the project and how it will help the city?

The New Centre of Łódź is one of the key elements of the city centre’s revitalization which aims at rediscovering the beauty of the “undiscovered Łódź”. The area of almost 100ha in the city centre became a place which needs to be made more attractive and needs to be given new functions, and that is why it has become a field of extensive works aiming at restoring it to the previous splendor. Among the elements that are part of the New Centre of Łódź is the revitalized EC-1 power plant which will be adapted to functions connected with new technologies, among others a planetarium or 3D cinema. Another big investment is the under-

investors and encouraging existing ones to expand; this particular sector is growing in numbers of employees and manages to handle more and more sophisticated processes, which I believe will be the trend for the coming years.

Mayor lures film centre to Łódź During the summer, Poland’s minister of culture Małgorzata Omilanowska signed a letter of intent with the mayor of Łódź to locate the National Centre of Film Culture in the city.

To be co-financed by the ministry and the city, the Centre plans to host exhibitions and workshops at its new headquarters, to be located within the new EC1 complex.

This complex is the core of the city’s redevelopment plans, and is being developed on the site of the former power station EC1.

Lódź achieved worldwide recognition thanks to its film school set up there after WWII, and top alumni include directors Andrzej Wajda and Roman Polanski, as well as up and coming talents such as Jan Komasa and Borys Lankosz. The school also trained numerous cinematographers from Sławomir Idziak to Paweł Edelman. Łódź was also the site of the first cinema to open on Polish lands in the 19th century. A previous plan for a film centre, backed by David Lynch and Camerimage Festival director Marek Zydowicz, was rejected by the city as being too costly. •

Another big investment is the under- ground Łódź Fabryczna station which will become a part of the multimodal communication transportation hub

ground Łódź Fabryczna station which will become a part of the multi-modal communication transportation hub.

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The city is doing well attracting investments in the Shared Services/BPO/ITO sectors. What are the prospects for the further development of this industry in the coming years?

Shared Services/BPO/ITO are one of the fastest growing sectors of the economy in Łódź. The development of this branch of business is related both to the good image of the city itself, which for several years has been undergoing a great transformation, and numerous groups of well-educated students and graduates. Łódź is attracting new

What large companies have invested in Łódź in recent years?

Acquisition of investors for such industries as BPO/SSC, IT, logistics, home appliances, as well as power industry and biotechnology is of special importance.

In recent years we have enjoyed the trust of a number of well-known international companies, e.g.: Hewlett Packard, McCormick & Company, Veolia Centre of Excellence SAP, Oberthur Technologies. Last year also UPS launched their SSC. New investment projects of companies located here for years, like Fujitsu Technology Solutions or Nordea Operations Centre, are a clear indication of the business-friendly environment in Łódź. Łódź is well-known as a centre of producing household appliances. The biggest companies from that sector located in Łódź are BSH and Indesit.

Apart from its two factories in Łódź (washing machines and dishwashers), in 2005 BSH launched another plant producing clothes dryers. After another two years BSH decided to open the R&D centre. Also Indesit has three factories in Łódź, the last one was openned 2 years ago (production of hoods). Those two companies together with their subcontractors have created over 7,000 workplaces. Based on the outcomes of our conversations

September 2015

with companies from white goods sector we do truly believe that it will be developing in Łódź at least for the next decade.

Developers wishing to build in Łódź often complain about the shortcomings of spatial development plans. What is the City Hall doing to meet those expectations?

The city area which is covered by the local spatial development plans is currently 10.62%. The

Łódź is widely perceived as one of the major Polish academic centres, with the University of Łódź, Technical University, Medical University, and Film School

Municipal Planning Bureau is currently working on 55 projects of local spatial development plans covering a total area of 5720 ha (19.50% of the area of the city). 35 draft plans ( the total area of 4330 ha - 14.78 % of the city area) are at arrangements stage and advanced design work.

Łódzkie We should remember, though, that even if there is no local spatial development plan, there are no obstacles for investors, as the Department of Urban Planning and Architecture prepares the administration decisions of urban planning and land development.

Can you indicate the three greatest strengths of the city.

First of all, our main advantage in terms of doing business is definitely our location. We are situated on the crossroads of the main highways connecting Eastern and Western parts of Europe, Moscow with Berlin, as well as Baltic Sea with the Adriatic Sea. It is a perfect spot for logistics and transport business, moreover, it is also a great advantage for any kind of economic activity. The rail connections play also a crucial role, with the famous Łódź-Chengdu-Xiamen link which is a unique project on a world scale.

Also, Łódź is widely perceived as one of the major Polish academic centres, with the University of Łódź, Technical University, Medical University, Film School and several private educational facilities. Those institutions very often provide education on a world class level, attracting students from many countries. There are currently around 95,000 students enrolled, and annually about 25 000 graduates of academic level entities. n

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Tight market in Łódź Retail Currently, there are 13 shopping centres (schemes over 5,000 sq m of GLA with more than ten units in an adjacent shopping mall) trading in the Łódź agglomeration, which together offers 482,300 sq m of GLA. The two largest shopping centres in Poland are in Łódź: Manufaktura (109,500 sq m of GLA) and Port Łódź (104,000 sq m of GLA).

Additionally, in Rzgów, there is Ptak trade fair centre (80,000 sq m of GLA). In terms of shopping centre market saturation, Łódź, with 493 sq m/ 1,000 residents, is the fifth highest amongst Polish major agglomerations, lower than numbers in Poznań, Wrocław, Kraków and Tri-City, but still higher than in Warsaw, Szczecin and the Katowice agglomeration. However, this is data as of the end of H1 2015, after the completion of the Sukcesja shopping centre, scheduled for September 2015, the shopping centre density in the agglomeration will rise to 540 sq m per 1,000 residents.

The Łódź Agglomeration includes Łódź, Pabianice, Konstantynów Łódzki, Ksawerów, Andrespol, Brojce, Nowosolna, Rzgów, Zgierz, Ozorków Miasto, Stryków, Aleksandrów Łódzki. In terms of shopping centre space, the agglomeration takes seventh place among the largest agglomerations in Poland.

The purchasing power is €6,856 per capita / year (11% higher than the national average of €6,170).

Shopping centres under construction and planned As of the end of H1 2015, one new shopping centre was in the construction stage in Łódź – Sukcesja by Fabryka Biznesu. The scheme is due to be completed in H2 2015 and its total GLA area is expected to be 46,300 sq m. Plans for an additional four shopping centres have been announced, but it is unlikely that the construction of these will start in the near future.

The four centres are: Centrum Fabryka Pabianice (6,100 sq m, currently on hold), extension of Galeria Łódzka (11,000 sq m), Łódź Plaza (35,000 sq m), and Galeria Zgierz (10,000 sq m). The construction timetable for these schemes is currently unknown.

Retail formats As of H1 2015, modern retail stock in the agglomeration of Łódź totalled 606,800 sq m distributed over various retail formats: shopping and shopping & leisure centres, stand-alone retail warehouses, retail parks, and outlets.

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Other retail formats As of H1 2015, the outlet retailing sector in Łódź agglomeration was represented by one outlet centre Ptak outlet in Rzgów totalling 12,600 sq m of GLA. No

other assets of this type are planned for Łódź at this time.

Existing stand-alone retail warehousing stock in Łódź is estimated at 106,300 sq m of GLA. The sector is well represented in the agglomeration, with schemes such as Praktiker, Castorama, Top Shopping, Obi, Agata Meble, Meble Bodzio, Bricoman and Black Red White.

As of H1 2015, one retail park was present in the city - the Vis a Vis scheme located on Zgierska Street.

Shopping and shopping & leisure centres (above 5,000 sq m)

482,300

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Guliwer Carrefour, E.Leclerc, Carrefour Przybyszewskiego, Tesco Widzewska, M1, Tulipan, Carrefour Szparagowa, Tesco Pojezierska, Pasaż Łódzki, Echo Pabianice, Galeria Łódzka, Manufaktura, Port Łódź

Stand-alone retail warehouses

106,300

11

Praktiker, Top Shopping, Castorama Wróblewskiego, Castorama Wydawnicza, Castorama Sikorskiego, Agata Meble, Meble Bodzio, Black Red White, Bricoman, Obi Szparagowa, Obi Rokicińska

Retail parks

5,600

1

Vis a Vis

Outlet centres

12,600

1

Ptak outlet

Total

606,800

26 Source: JLL, H1 2015

The scheme has 5,600 sq m of GLA (with Intermarche as a food anchor) and was opened in December 2014.

Retail offer and tenant demand in Łódź The food store sector in Łódź is well -developed. All hypermarket chains that are active in Poland are present in the city. There are 12 hypermarkets in Łódź operated by: Real (to be rebranded to Auchan), Auchan, Tesco,

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Other major tenants

36,500

77

Real

Praktiker

Media Markt, Jysk, H&M, Deichmann, Martes Sport, Rossmann

Tulipan

1999

Piłsudskiego 94

32,300

80

Real

-

RTV Euro AGD, Jysk, Komfort, ABRA, Reserved, CCC, Carry, Home&You, Kari, McDonald’s, Rossmann, Sephora

Pasaż Łódzki 2000

Jana Pawla II 30

37,100

95

Auchan

-

TK Maxx, RTV Euro AGD, H&M, Mohito, Camaieu, CCC, Decathlon, Reserved, Sinsay, Takko Fashion, Rossmann, Sephora

Galeria Łódzka

2002

Piłsudskiego 15/23

45,000

136

Tesco

-

Media Markt, Peek&Cloppenburg, H&M, Zara, Reserved, KappAhl, Orsay, Pull&Bear, Stradivarius, Mohito, Empik, CCC, Go Sport, Smyk, Home&You, Big Star, Deichmann, Douglas, Rossmann, Duka, Sephora

Manufaktura

2006

Drewnowska 58

109,500

305

Auchan, Alma

Leroy Merlin

Cinema City, Saturn, RTV Euro AGD, Jupi Park, Intersport, Van Graaf, Tommy Hilfiger, Massimo Dutti, Reserved, Zara, H&M, Mango, C&A, Camaieu, KappAhl, Bershka, Mohito, Terranova, CCC, Empik, Smyk, Deichmann, Rossmann, Sephora, Douglas

Port Łódź

2009

Pabianicka 245

104,000

200

Piotr i Paweł

Leroy Merlin

Ikea, Saturn, RTV Euro AGD, Marks&Spencer, Zara, KappAhl, H&M, Cubus, Reserved, New Yorker, Bershka, Carry, C&A, Go Sport, Deichmann, Empik, Smyk, Douglas, Home&You

DIY

Brzezińska 27/29

Units

1999

GLA (sq m)

Location

M1

Scheme

Opening

Food store

The largest existing shopping centres operating in Łódź (GLA above 30,000 sq m).

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Source: JLL, H1 2015 Carrefour and E.Leclerc. Apart from the large food retailers there is also a wide spectrum of smaller supermarkets and discount stores present on the market, such as: Kaufland, Lidl, smaller formats of Tesco and Carrefour chains, Intermarche, Alma, Piotr i Paweł, Biedronka, Delima, Polomarket, Marcpol and Stokrotka. DIY chains are represented by Castorama, Praktiker, Leroy Merlin, Obi, and Bricoman. The electronic sector is represented by the following chains: Saturn, Media Markt and RTV Euro AGD. The fashion industry in Łódź is relatively wellrepresented with major Polish and international popular brands present in the largest shopping centres. Many popular Polish brands were established in Łódź, including Redan Group (Top Secret and Troll), KAN (Tatuum), Monnari or Hexeline.

Prime shopping centre rents in 8 major agglomerations (€ / sq m / month)

Source: JLL, Q2 2015

Major multiplex cinema operators present on the Polish market can be found in Łódź: Cinema City and Cinema City IMAX in Manufaktura, Multikino (Silver Screen) on Piłsudskiego Street and Helios (to be opened in Sukcesja).

Prime rents Prime shopping centre rents – typically for approx.

100 sq m shop from the fashion and accessories category in the leading shopping centres- are estimated between € 50-55 / sqm / month. n

2015 September

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Łódź office market buoyant with new schemes Real estate commentary provided by

The increased interest in the city from companies such as Accenture, Bosch, Infosys, Unicredit, Indesit, Fujitsu or Dell was reflected in rapid developer activity, especially between 2005 and 2010 when the market expanded by around 170,000 sq m.

In 2011-2013, office stock grew by 20,000 sq m per annum (3-year average). However, the rate of new completions noticeably slowed in 2014. The supply side of the market will, however, rebound in 2015, with a total of 15,500 sq m from four office blocks (including Olimpia Software Pool entirely occupied by Ericpol and the refurbished Plac Zwycięstwa 2) delivered in H1, and a further 24,600 sq m expected later this year.

In Q2 2015, more than 58,000 sq m was under active construction, including University Business Park II (19,000 sq m), Traugutta 25 (12,800 sq m) and Targowa 35 phase II (8,500 sq m). These last two developments are renovation projects. In addition, Echo Investment has relaunched its office project: Symetris Business Park I (8,600 sq m). Łódź Office Market: Completions (sq m) and Vacancy (%), 2010-2016 F

Q2 2015; vacancy rate in 2015 – as of the end of Q2, F - forecast Łódź, with its office stock totalling 289,300 sq m as of end of H1 2015, is the seventh largest market in Poland, after Warsaw, Kraków, Wrocław, Tri-City, Katowice and Poznań. The majority of office space is located in the very centre of the city, along Piłsudskiego Street, Adama Mickiewicza Avenue and Kościuszki Street.

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It is, however, true that the robust level of demand seen in 2014 was mainly due to Infosys' vigorous expansion in the city: last year the company renewed its lease for 21,000 sq m in Green Horizon. One may claim that the record-breaking take-up volumes were masked by the aforementioned transaction. Nevertheless, this does not imply that the city underperformed in this respect; on the contrary, net take-up volumes outperformed those seen in 2013 by 30%. Following the strong 2014, the first half of 2015 saw steady growth, with 23,200 sq m of registered take-up and seven transactions for more than 1,000 sq m, with the largest deal signed by mCentrum Operacji for 4,500 sq m in Park Teofilów C. The key office tenants are from the business services sector, which is a common picture for all the regional office markets in Poland. It should also be underlined that office space demand is driven not only by newcomers, but also by companies already operating on the market. Such companies, as their scale of operations grow, seek space that will fully meet their expectations in terms of technical standards and development opportunities. The market is growing mainly in response to such organizations’ needs.

Vacancy rates The vacancy rate in Łódź has been on the decrease since 2010, when it stood at almost 22%. Since then it has plunged to 7.5% recorded at the end of 2014 (7.7% in Q2 2015). At present, the city offers around 22,400 sq m. This, however, gives tenants hardly any choice for larger space occupiers, as the vacant stock is scattered across 27 office developments with only one option of >1,000 sq m available in existing A class buildings (as of H1 2015). In contrast, almost 40,000 sq m is unoccupied in buildings under construction and those under renovation. The latter category, however, comprises the greater part of volume under construction.

Rents & Rental Forecast Prime headline rents were under downward pressure from 2009 until the beginning of 2012. For the last two years, they have been relatively stable. At present they range from €11.50 to €12.50 / sq m / month and are some of the lowest among major regional cities.

Tenants may also expect numerous incentives such as rent free periods and fit-out contributions.

Prime Headline Rents: Łódź vs Other Regional Markets in Poland (€/ sq m/ month)

Office demand In terms of demand, Łódź last year undoubtedly exceeded our expectations. Developers have returned to the market with new projects and renovations to respond to growing demand with high quality products.

September 2015

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Energy

Amec Foster Wheeler wins second heat power plant contract Amec Foster Wheeler has won a contract by Fortum Zabrze S.A. for the design, supply, construction and commissioning for a new multi-fuel circulating fluidizedbed (CFB) steam generating combined-heat-and-power (CHP) plant in Zabrze.

The plant will be 220 MW with a maximum production capacity of 145 MW for heating and 75 MW for electricity generation. Commercial operation is planned to start by the end

of 2018, providing district heating to some 70,000 households.

The value of the competitively awarded project was not disclosed.

The new multi-fuel boiler will primarily be powered by refuse derived fuel (RDF) and coal but can also use biomass and a mixture of other materials. The amount of RDF can be up to 50 percent of the total fuel usage. The new plant will replace the outdated existing coal-fired units in Zabrze and nearby city of Bytom. The

investment is expected to significantly improve the efficiency of operations and reduce CO2 and other emissions in the area.

Gary Nedelka, group president of Amec Foster Wheeler’s Global Power Group, said, “This is the second CFB project we have supplied to Fortum in Poland and another demonstration of the fuel flexibility of our CFBs. Our units are capable of firing nearly all solid fuels – including waste products that otherwise would have been land-filled.” n

China-CEE Fund expands its investment portfolio with a new wind farm The China-CEE Fund and GEO Renewables (via a SPV company) acquired the Zopowy wind farm from Gamesa Energia.This new investment includes 15 wind turbines for a total capacity of 30 MW and is located in the south-west of Poland. The investment was

2015 September

financed with equity and nonrecourse project finance provided

by Alior Bank.

The project is located in the town of Zopowy in the Głubczyce municipality (Opole Voivodeship). The wind farm was officially opened in 2015 and

includes 15 Gamesa G90 turbines of a total capacity of 30 MW. The new investment will belong to a newly-established joint venture company with China-CEE Fund holding 90% of shares and GEO Renewables – the remaining 10%. GEO Renewables is a leader in

27

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Energy the wind energy industry in Poland and will be responsible for the asset’s management. Additionally, Gamesa will continue to provide maintenance works for the turbines installed in the project.

“Given the experience GEO Renewables brings to the project, we are very pleased to be able to once again work with them. The investment in the Zopowy wind farm reflects our

strong interest in the Polish energy market. We will continue to analyse opportunities in renewables in preparation for the upcoming auction system”, said Dario Cipriani, Investment Director at CEE Equity Partners.

The Zopowy wind farm is yet another project of China-CEE Fund in the field of wind energy. This investment is an element of the strategy of the Fund’s development

through the acquisition of similar projects in the whole CEE region.

“This project constitutes another element of our investment strategy related to wind energy. Its value has been confirmed by both China-CEE Fund’s sector experts, and external partners such as Alior Bank who provided financing of the investment”,, said Rafał Andrzejewski, Investment Director at CEE Equity Partners. n

CVC Capital Partners buys PKP Energetyka from Polish State Railways CVC Capital Partners announced that its fund has signed an agreement to acquire PKPE Energetyka, the energy unit of the Polish National Railways in a transaction valued at nearly 2 billion pln.

PKP Energetyka is a crosscountry electricity distributor to the Polish railway network and to other customers. It also provides nationwide maintenance and emergency response services to the railway network, operates fuel stations for diesel locomotives and is active in electricity and gas reselling.

CVC has a track record of successfully investing in regulated industries and major strategic assets across Europe, such as its 2002 investment in Inalta, the operator of a nationwide high-voltage electricity network in Spain, its 2008 investment in Evonik, the world’s largest speciality chemicals company based in Germany and its 2011 investment in Delachaux, the global rail infrastructure group headquartered in France.

István Szőke, Partner at CVC, commented: “We are excited about our first stand alone, direct

investment in Poland and expect to expand our business and on the ground presence in the years to come. We are looking forward to working with the management and employees of PKPE and supporting the on-going multiyear investment programme as we seek to develop the business to be able to perform on par with the best- in-class global operators. “ The transaction is subject to regulatory approval and is expected to close in Q3 2015. Unicredit acted as financial adviser to CVC with CMS Cameron McKenna acting as legal counsel. n

FWT to build wind farm with 33 wind turbines

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FWT Production GmbH has signed binding contracts for 33 wind turbines with a total of 90.5 MW for the wind farm Krzanowice in Poland. The company’s contract partner is VisaVento Holding AG from Frauenfeld in Switzerland.

FWT has been active on the Polish market with wind farm services since 2013 and is currently building its first 2-MW plant. Later this year, the company will begin the first phase of the wind farm Krzanowice III: three FWT 2500 turbines with 2.5 MW capacity, 100-m rotor diameters and 100m hub heights will be installed there. In 2016, a total of fourteen more turbines of this type will be installed for Krzanowice I. In 2017, during the construction phase Krzanowice II, the investor

will begin using 3-MW turbines: sixteen FWT 3000 systems with 140-m-Ventur hybrid towers and 120-meter rotors will be connected to the grid during the third phase.

“This success emphasises FWT’s proximity to the market and its ambitions for the Polish market,” FWT’s managing director Henning Zint said. In his view, the fact that the contract was signed in record time and that the wind farm is scheduled to be commissioned before the end of 2015 is a tribute to FWT’s flexibility. “We are now in high demand, even when jobs involve large quantities. We can provide the security of many years of practical experience as well as fast, efficient decision-making processes and response times to our customers,” Zint continued.

FWT ‘s strategic partner in this project is Strabag Sp.zo.o, which will be responsible for the entire range of infrastructure work. n

September 2015

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Energy

PGE share price crushed by wind competition and plunging electricity prices Shares of government-controlled energy giant PGE have slumped 30% in the last 12 months, battered on all sides by lower energy prices, and serious competition from Poland’s rapidly emerging wind energy sector.

In a sign of trouble to come, PGE delayed the release of second-quarter earnings by three weeks to Aug. 31 and said it may devalue assets. The company has stated that it plans to invest 50 billion zloty through 2020, including in its biggest project, a coal-fed power plant in Opole.

“This may impact dividend payouts,” said Bartlomiej Kubicki, a Warsaw-based analyst at Societe Generale SA. “PGE’s dividend policy is based on net income rather than cash flow, while its capex needs for next years are significant.”

Tauron Polska Energia SA, PGE’s smaller competitor, sees

“no significant” asset writedowns for the first half of this year, Chief Financial Officer Krzysztof Zawadzki said, adding that the company will conduct standard tests at the end of 2015.

Societe Generale’s Kubicki cut PGE’s price-estimate by 9.3 percent to 18.6 zloty last week due to “lower electricity price projections.”

Baseload Polish power for delivery next year has slumped 11 percent this year amid declining coal prices, according to broker data compiled by Bloomberg.

Poland’s wind generation, which has the lowest operating costs once built, increased 24 percent from a year earlier in the first six months of 2015. n

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BPO/Shared Services

Goldman to add several hundred IT Jobs in global tech push Goldman Sachs Group Inc. is building up its digital workforce in Poland as information technology becomes more important to its operations.

“The expansion will be realized in a phased approach over the next three years to an office size of several hundred employees,” said Adib Sisani, a spokesman for Goldman Sachs in Frankfurt.

“Most will be working in the technology and operations divisions.”

The new positions will mainly support investment banking and securities operations, helping the company to hand over work processes globally across different time zones.

Goldman Sachs, which has largely steered clear of retail businesses, is seeking to move into more digital niches of the financial services industry, such as online lending and cooperations with startup technology firms.

“We’re a technology firm - we’re a platform,” Chief Executive Officer Lloyd C. Blankfein said in an interview on Bloomberg TV in June. On top of IT for day-to-day operations, financial services firms need technology

for compliance, risk management and other processes, he said.

Earlier this year, Goldman hired Harit Talwar, who at the time was overseeing the U.S. cards division of Discover Financial Services, to help develop online lending for individuals and businesses.

Poland is a growing IT hub for financial institutions in Europe due to its affordable labor force, tax incentives and large IT graduate pool, according to a report from Rule Financial, the U.K.-based investment banking consultancy acquired last year by German technology company GFT Group.

The Poland operations of Goldman Sachs were set up a few years ago in Warsaw and led by Englishman Michael Kennedy. Kennedy had been expecting a major expansion of the firm’s IT operations, after successfully and consistently building up a track record in Poland. n

OpusCapita to expand financial management services for Fortaco Group Opus Capita, a Finnish e-Invoicing services provider, is expanding its cooperation with Fortaco Group, a European manufacturing partner for the engineering industry.

Under the new contract, OpusCapita will continue as outsourcing partner for Fortaco’s financial management services,

overseeing the dispatch and receipt of invoices, management of AP and AR, travel expenses management, fixed assets accounting and general ledger services for Fortaco’s subsidiaries in Finland, Poland and Slovakia. OpusCapita will also provide payroll services for Fortaco’s companies in Finland.

OpusCapita focuses on purchaseto-pay and order-to-cash processes where it combines software, outsourcing and services with a delivery model that aims to provide enhanced value for its customers. The company has operations in 9 countries and approximately 10,000 customers, with end-users in more than 50 countries. n

UPS opens GBS center in Poland

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United Parcel Service, Inc. formally announced that it has begun operations at its newly established Global Business Services (GBS) center. This facility is located in the city of Lodz and is the company’s second center situated in Poland.

The GBS provides shared international services, including information services, customer service and accounting. The facilitiy is expected to improve the company’s

administrative operations and standardization of processes, leading to improved customer service.

The new center is expected to create an additional 130 new job openings in addition to creating more economic opportunities to the local population.

UPS Vice President Carol Brolley said: “Poland represents an important market for UPS and our customers. This new

GBS center in Lodz will allow us to increase the efficiency of our administrative operations throughout Europe, which will result in improved quality and standardization of processes, while offering skilled jobs to members of the community in the Lodz area.”

UPS opened its first GBS center in Poland in Wroclaw in 2006, where more than 600 people are employed today. n

September 2015

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BPO/Shared Services

US Financial Services Giant Invests in Gdańsk State Street, a global leader in the financial services sector, is opening its 2nd major Poland office in Gdańsk.

With more than 2500 employees in Krakow, State Street has been known to be considering new locations to support its continued growth.

The company plans to employ more than 300 employees in Gdansk in 2016. It is the most significant investment venture so far within the business services sector in the Pomeranian region and one of the largest in Poland over recent years.

The decision resulted from a complex location study and ultimately Gdańsk was identified as the preferred location. The city

was required to satisfy several key criteria including: location, access to qualified staff, the presence of reputable and cooperative

universities and high quality office space with supporting communication and infrastructure.

The investor also placed great value on the effective cooperation with local authorities.

“New employees in the Gdańsk office will be providing the same services as their colleagues working in other State Street’s offices across the globe like, London, Boston and Hong Kong” says Scott Newman, Managing Director of State Street Bank Poland.

State Street Corporation is one of the world’s leading provider of financial services to institutional investors including investment servicing, investment management and investment research and trading. State Street operates in more than 100 geographic markets worldwide. n

Three new SSCs in Poznań The City of Poznan has successfully landed three new major shared services centres. A. Schulman plans to move its shared services centre serving the EMEA from Londerzeel in Belgium to Poznań. The new SSC will be open in October 2015. The company is

currently recruiting finance, IT and HR specialists.

Capgemini, one of the leading suppliers of IT services, consulting and outsourcing in the world, will open its software development centre in Poznań at the end of the year. The company is to employ 300 people.

Ciber company has opened a new office in mid-June. Ciber plans to increase employment from 180 people in 2015 to 320 in 2016. The company operates in the market for over 40 years providing services in IT, accounting and recruitment. n

CEE Shared Services and Outsourcing Awards 2016 Gala 4 February 2016, Warsaw www.ceeoutsourcingawards.com 2015 September

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BPO/Shared Services

Orange Polska sells off its Contact Center to outsourcing firm TP Invest and Orange Poland have completed the sale of Contact Center to Arteria S.A. for PLN 9 million. The investor expects continuing and further development of Contact Center’s business and its integration with the Arteria group. Contact Center has been operating on the market for fifteen years. Since 2002, it has been providing services to clients outside the Orange Poland group, too.

On 25 August 2015, the formal agreement was signed concerning the sale of all of

the shares in Contact Center

by Orange Polska S.A. and its subsidiary TP Invest Sp. z o.o.

Arteria S.A. Operates in the area of sales support process outsourcing.

The company has four call centres with over 700 employees. Clients are from the insurance, banking and IT industries. The Arteria capital group is one of the market leaders in outsourcing for sales and customer service, as well as other BPO (Business Process Outsourcing) services.

The sellers were represented by FKA Furtek Komosa Aleksandrowicz. The transaction was led and executed by Edyta Jusiel, attorney-at-law and partner in the Corporate Law and M&A Department.

“The sale of Contact Center is yet another transaction on which we have advised Orange. We could not be happier about the trust placed in us by the client. We are constantly striving to gain the best possible understanding of our clients’ business needs and provide the highestquality service” said Edyta Jusiel. n

Troubled Lundbeck targets 1,000 layoffs in HQ, commercial revamp

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Danish Lundbeck is going on a cost-cutting binge. Amid falling sales - and a few months after new CEO Kåre Schultz took the helm the Danish drugmaker says it will layoff 1,000 employees as part of a plan to save about $445 million by 2017.

Most of the job cuts will hit headquarters in Valby, Denmark, and commercial operations, mostly

in Europe. Though Lundbeck has been restructuring its commercial organization in Europe for a few years now, that hasn’t been enough, the company said.

As part of that revamp, Lundbeck will bring 5 products to the forefront: The long-acting antipsychotic Abilify Maintena, which it sells in partnership with Otsuka; the new antidepressant Brintellix, intended to pick up where blockbuster Cipralex left off; Northera, used to treat sudden drops in blood pressure related to neurological problems such as Parkinson’s disease; the seizure drug Onfi; and the antipsychotic Rexulti, approved last month to treat schizophrenia and depression. Notably absent from the list is Selincro, an alcohol-addiction drug rolling out across Europe.

All headquarters functions will be restructured, the company said, and Lundbeck will expand its business services center in Krakow to take on administrative and accounting functions. Finally,

Lundbeck will shut down a selection of early-stage R&D projects.

The cuts are billed as a way for Lundbeck to gin up the cash it needs to beef up its pipeline and improve returns. “Lundbeck needs higher profitability to be able to invest in future profitable growth initiatives leading to better treatments for patients and secure a competitive return on investment,” the company said.

The moves will help the company deliver operating profits by 2016 and improve that margin in 2017. And that’s part of the mission handed to CEO Kåre Schultz when he joined the company from Novo Nordisk in May. At the time, Chairman Haakon Bjorklund said Schultz’s “most important task” was to take Lundbeck into the black as soon as possible.

Lundbeck will spend 1.1 billion kronor on the restructuring, much of it in severance payments. The company will also write down some assets in the third quarter by about 600 million kronor. n

September 2015

CEE Shared Services and Outsourcing Awards 2016 Gala 4 February 2016, Warsaw

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FDI News

Production savings lures global automotive suppliers Thanks to lower production costs, suppliers continue to head to Eastern Europe, often following their customers.

Volkswagen’s new factory in Poland, which will build the replacement for the Crafter commercial van near Poznan, illustrates the trend.

Kirchhoff, a German mediumsized supplier, is building a plant in Gniezno to supply the VW factory. Kirchhoff already operates three plants in Poland.

Eastern Europe was the top choice for a number of suppliers from North America and Asia as they settled on a site for their first European plant. For example, Global Steering Systems, a U.S. producer of steering columns, chose Opole.

CEO Larry Finnell said the company also looked at sites in the Czech Republic, Spain and Germany.

The expansion of the Skoda factory in Kvasiny in the Czech Republic is drawing new suppliers such as Simoldes Plasticos. The Portuguese supplier is making its investment in Rychnov nad Kneznou, not far from Skoda. VW’s Czech brand plans to build SUVs besides the Yeti crossover and Superb sedan in the expanded factory.

Eastern Europe also is attractive to growing numbers of

Half year of investments in Kraków SEZ

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Due to new investments worth PLN 228m, 350 new jobs will be created.

New business permits of the Kraków SEZ went to: Japanese automotive company Nidec; Elettrostandard Polska that plans to increase its production capacity and enlarge office space; Alupol Films; Dako and SWT. Additionally, two companies Olident and JCG will build new production facilities and equip them with new machines. Also

German suppliers. They have announced several new factories for Poland alone. For example, Muhr und Bender, a specialist in heavy-duty spring components, is building a plant in Ujazd. Until now, it only manufactured in the Czech Republic. Wheel manufacturer Uniwheels is building its third factory in Stalowa Wola.

A. Kayser Automotive Systems is establishing its second Polish plant on the Czech border. Vacuum, air and fuel lines will be manufactured near Klodzko. Ralf Jakubiak, the company’s managing director for Poland, cited the financial benefits resulting from the plant’s integration into a special economic zone.

“It’s also easier to find workers there than in the Poznan region,” said Jakubiak.

Other companies have announced plans for factories in Eastern Europe. They include the plastic parts manufacturer ABC Group, which has selected Poland; Brose and the French CCN Group, a provider of turbocharger parts, both of which chose Slovakia; NHK Spring and Samvardhana Motherson Peguform, both of which picked Hungary; and Tsubakimoto, a manufacturer of power transmission components, which selected the Czech Republic.

A number of Korean suppliers, which mainly supply Hyundai and

Kia, are expanding capacity in the Czech Republic and Slovakia.

Cost pressures are also leading auto-related companies to build plants in Southern Europe. For example, Romania is experiencing a significant increase in capacity.

Companies such as Continental, Draxlmaier and cable harness manufacturer Yazaki operate several factories in the country.

Continental alone will hire more than 1,000 employees this year, CEO Elmar Degenhart said. It already has about 15,000 employees at its six Romanian production and r&d sites.

The French company Hutchinson is building a factory in Ruma, Serbia. And Spain’s Teknia, which supplies plastic and metal parts, has acquired the Serbian supplier Promotor Irva.

Germany’s I.G. Bauerhin plans to expand its plant for seat heating, sensors and cables in Indjija, Serbia. In the medium term, the number of employees is due to rise to 1,800 from 1,300.

I.G. Bauerhin also manufactures in the Czech Republic.

CEO Josef Hilmer explained the decision to expand in Serbia: “In the Czech Republic, it is increasingly difficult to hire suitable employees, and the wage rates are lower in Serbia.”

(Source: Automotive News Europe)

three Polish software developers: Grape Up, Wind Mobile and Noala entered the zone. So did Poland-based Pracownia Ślusarska Bartosz Wójcik.

of PLN 900m. Due to that 4,300 new jobs will be created.

Kostrzyn-Słubice Special Economic Zone gets bigger

Czech-based company Marbach received a business permit in Starachowice SEZ. The Czech packaging producer will build a new plant for over PLN 7m where 30 people will be employed. In Poland, Marbach already owns three factories - two in Tarnowskie Góry and one in Kielce.

Council of Ministers approved the extension of Kostrzyn-Słubice Special Economic Zone. The zone is supposed to be enlarged by 121 hectares.

New investments that will placed on the zone’s new area have a total value

New investment in Starachowice SSE

September 2015

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FDI News

GKN Driveline in major expansion GKN Driveline, the world’s leading supplier of automotive driveline systems and technology, announces the first phase of a significant expansion of its operations in Poland, with the construction of a new production facility. The expansion will create the capability to manufacture a range of Driveline technologies, with a specific focus on increased sideshaft capacity in the country.

The Phase One €16.5 million investment supports the growing needs of customers across Europe and strengthens GKN’s position as the leading driveline technology provider in the region. Approximately 400 new

jobs could be created in a phased plan over the next four years to support the anticipated growth.

The new facility, which is expected to be complete by April 2016, will supply major car manufacturers in Europe and Russia, including Volkswagen, Porsche, Audi, Volvo, Jaguar Land Rover, Mercedes and FCA. The facility is being constructed adjacent to GKN’s existing plant in Olesnica, which produces Constant Velocity Joints (CVJ), and increases the site’s overall footprint by over 50%. The expansion will also increase GKN’s Poland driveshaft production capacity to over 10 million units a year.

In addition, the site’s technical capabilities will be expanded as part of a large investment program in GKNs global technology network. Peter Moelgg President of Engineering for GKN Automotive, said:“Olesnica is a perfect location for advanced technology research and development, with outstanding potential engineers and scientists available from excellent local universities.“ Helmuth Rohregger, GKN Driveline President Europe, added: “Poland is an increasingly important automotive market, particularly as automakers expand into Eastern Europe, so this investment strengethens our position as the leading supplier of driveline technology to European manufacturers. I’m delighted to be part of this ground breaking ceremony and I look forward to returning to the site next year when the facility is complete and operational.

Originated in Great Britain, GKN Driveline is a global producer of powertrain systems cooperating with such automotive giants as: Volkswagen, Toyota, Porsche, Volvo and Audi. GKN Driveline owns 56 plants in 22 countries and employs 22,000 people globally. n

Automotive sector driving employment growth Polish automotive sector is ready to increase production and create new jobs. According to „Badania opinii i nastrojów przedstawicieli Automotive” (Survey on Opinion and Moods of Automotive representatives) by Exact Systems, such optimism in the sector hasn’t been recorded since 3 years.

59% representatives of automotive sector in Poland expect that the production of cars and automotive accessories will increase in the nearest six months. The growing demand for cars in the EU that has been observed since two years is the

2015 September

main engine powering the optimism of Polish automotive producers.

Over 80% of Polish automotive production is sold to EU customers.

The survey also shows that the sector is ready to increase creation of new jobs due to the expected growth of the production. 39% of surveyed companies plan to increase employment. Poland is described as the country with strong economy, stable political environment and developing infrastructure. Also competitive labour costs, highly qualified engineers and the access to variety of car accessories’ plants, make

Poland the “Best Cost Country”.

Poland is no longer the „Low Cost Country”. Now, one should look for the “Low Cost Countries” in the East of Europe - in Romania, Bulgaria or in the Balkiness. Thus, the strong advantages of Poland create new opportunities for new orders for the sector and the inflow of new automotive investments”, comments HR expert Tomasz Tomasz Hanczarek from Work Service.

The survey was made by Exact Systems using CATI system among producers of cars and accessories operating in Poland. n

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FDI News

179 new investments in works by PAIiIZ “PAIiIZ is working at full steam.

We support an impressive number of investment projects and we are preparing new missions promoting Polish business in the world”, said PAIiIZ president Sławomir Majman about the Agency’s plans for autumn and winter.

Since the beginning of 2015, the Agency has successfully finished 29 investment projects worth € 366m. Due to that, 6,428 new jobs will be created. It is nearly 600 more than in the same period last year. Currently, PAIiIZ portfolio consists of 179 investment projects with a total value of € 3.83bn and a chance for another 32,738 new jobs in Poland. “Negotiations and new investments come to Poland mostly as a result of effective investment marketing. The Agency managed to win 43 ongoing projects after its investment missions all around the world. On the other hand, 24 investments were gained due to investment aftercare

provided by PAIiIZ”, commented Majman. By the end of 2015, the Agency plans to arrange five more investment missions to attract new investors to Poland. “We are going to “hunt” for investments in the US, Canada, Italy and Germany,” PAIiIZ president said.

Participants of the meeting talked about the trends in investments supported by the Agency.

The automotive industry, especially investments of automotive suppliers, have a dominant role in PAIiIZ’s portfolio. The Agency supports 37 ongoing investments represented by the industry, worth €677.75 m in total. The second position, with 34 projects, is held

by BPO sector. Also the increasing importance of R&D activities is observed. With 16 ongoing projects worth €650.4m in total, the sector is listed as third biggest.

According to Mr Majman, investments with Polish capital are a rising star in the portfolio.

“We work with 8 Polish investors, who intend to invest €170.42 m. We also notice an increasing activity of the Italian investors.

Projects from Italy jumped to the fifth position in the ranking of PAIiIZ. There is a growing number of agri-food investments under our wings as well”, the president commented. “Large projects have started to knock on our doors”, added the director of Foreign Investment Department Iwona Chojnowska-Haponik.

The Agency also supports Polish capital on its way to global expansion and foreign investments.

Two “study tours” are planned for Polish IT companies interested in opening IT offices in US and United Arab Emirates. PAIiIZ will also arrange a study visit to Belarus for agri-food producer considering building a factory PAIiIZ. This autumn, the Agency will also focus on Polish food companies interested in entering China. n

Discovery Channel in production with first Polish series The documentary miniseries Polish Truckers is the first show produced

The investment in productions made locally in Poland is aimed at increasing the number of viewers of Discovery Channel on the Polish market. In the

first half of 2015, the Discovery Channel had 0,55% share in the 4+ market and 0,73% in the 1649 group, according to Nielsen Audience Measurement. n

by Discovery Channel in Poland.

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The six-episode mini-series is produced for Discovery Channel

by Op1. Polish Truckers will follow the lives of Polish truck drivers working on long-distance trails.

“Discovery Channel invites the viewers into the world of professional truck drivers. We will accompany them at their jobs, but not only that. Polish Truckers is also a story about their families and their lives outside of work”, says Marcin Ziółek, Senior Channel Manager Factual at Discovery Networks CEEMEA.

September 2015

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FDI News

Fish processing slows down on lower EU funds, over-capacity Investment in the rapidly-developed Polish fish processing industry has lost momentum on lower availability of EU funds and issues related to overcapacity, according to industry players at the recent PolFish trade show.

“At the moment Polish processors have more production capacity than fish availability,” Jerzy Safader, president at the Polish Association of Fish Processors (PSPR) told Undercurrent during the exhibition. “I would say our capacity is enough for now,” he said.

Since Poland became a EU member back in 2004, the fish processing sector has been boosted with €300 million in investments, of which half came from private investors and the rest from EU funds, Safader said.

“We have now facilities that are almost new,” said the president.

However, he noted, “Not so many companies as before are investing in expanding plants, as European funds are now lower. Ten years ago we imported about 4,000t of salmon, while now we import 150,000t, of which about 90% goes for exports after processing.”

Boosted by the European funds, the turnover of Poland’s fish processing sector has soared by 400% to €2.5 billion,

from €0.5bn of revenue before the country joined the EU. “Poland has more than 500 processing plants operating, facilities have increased in number and, therefore, production capacity has gone up,” Safader said.

Salmon-focused processing in Poland, led by the sector leader Morpol, which sold nearly 100,000 metric tons of

smoked salmon products in 2014, has contributed significantly to boost the industry.

“We are investing in equipment for our processing plants, and to keep up with safety and quality standards,” said Katarzyna Kowalska, deputy director for exports at Graal, which last year produced 75,700t of fish products. n

focused on marketing the product, so we can offer premium marinated products to the high end market,” the company’s business development manager Bartosz Ramocki said.

In Autumn, frozen fish importer Morex will start processing at a new plant located in Gdynia, with a capacity of 20t per day. “We want to develop, become more independent, and this is the first

stage,” said Marianna Kolosza, export assistant at Morex. “With the new plant we will save costs as we will not depend of third parties for processing and we can be more flexible in terms of production volumes,” Kolosza said.

A major Polish canner, which preferred to remain unnamed, is also investing in a new plant for ready-meals to push for product diversification. n

Niche in herring Processor Baltic United will start supply of marinated herring and fresh fish for the high end market thanks to a new plant that will start operating in September.

“I think the potential is big, although there are several important competitors they are much more

2015 September

37

www.bizpoland.pl

FDI News Paged-Sklejka invests Operating in the Warmia-Mazury Special Economic Zone, “PagedSklejka” will invest PLN 151.7 m and create 110 new jobs. The investor is to construct a production hall, equipped with new technological lines and production machinery.

Permits in Suwalki Special Economic Zone As a result of new permits issued by the management board of Suwalki Special Economic Zone, 14 new jobs will be created. Novigo decided to reinvest within the zone and spend PLN 16 .6m for purchasing new equipment for wood production.

Installation Department Wod Kan and CO Gal Inst, however, plan to build a new production facility, manufacturing concrete products.

Two business permits in Starachowice SEZ Alucrom Kielce and KB-PRO will invest in new production in the Starachowice SEZ. Over PLN 1m will be invested by Alucrom Kielce that also declared the creation of 5 new jobs and expansion of its company within the zone. On the other hand, KB-PRO will invest PLN 3,75m to create a car trailer manufactory. The investor will also hire 10 new people.

170 new jobs in WarmińskoMazurska SEZ Żuławska Fabryka Mebli recieved a business permit to operate in WarmińskoMazurska Special Economic Zone.

Under the investment, the production capacity of the company’s factory in Elbląg will be increased. The investor also plans to build a production hall and a warehouse that will provide storage and logistic services for local furniture producers. The total value of investment reaches PLN 75m. 170 new jobs will be created by the Żuławska Fabryka Mebli within the project.

New investments in KTP

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Two companies - Olident and JCG – have received permits to conduct business in the Kraków Technology Park. Olident intends to build dental products factory worth PLN 1.8 m. 10 new jobs will be created there. JCG, in turn, invests in a wooden pallets plant.

The investment cost is PLN 5.3 m and it is supposed to generate 8 new jobs.

Invest Park builds 10 new production facilities for PLN 80m Wałbrzych Special Economic Zone is to invest PLN 80m for constructing new industrial facilities for rent. The project should increase the investment attractiveness of the zone.

WSEZ has already started building production hall with the area of 5000m2 in Dzierżoniów and the two times bigger facility in Września.

New ready-to-use industrial buildings will be also built in Wałbrzych, Twardogóra, Bolków and Wądroż Wielki. According to the deputy minister of economy Ilona Antoniszyn-Klik, one should also expect new buildings in Bielawa, Nowa Ruda and Bystrzyca Kłocka.

This is the continuation of the project of constructing production facilities within the Wałbrzych Special Economic Zone that has been started in 2014. It has been implemented to activate small business centres in the zone. Last year, the zone built facilities for rent in Wałbrzych, Bolecławiec, Nowa Ruda and Kłodzko. In total, the WSEZ plans to construct 10 of such buildings. n

Scanaqua again in ŁSEZ Scanaqua Ltd has just received the second business permit from Łódź Special Economic Zone. This is also the sixth investment entering Łódź SEZ this year.

Under the reinvestment in ŁSEZ, the member of international Geberit Group, Scanaqua, intends to invest at least PLN 8.2m and create at over 20 new jobs by the end of 2017.

Located in Ozorków subzone of Łódź Special Economic Zone, Scanaqua manufacturing facility specializes in the production of bathtubs and acrylic shower trays.

It is also the centre of design and manufacturing of these products.

Due to the new investment, the company plans to diversify its production capacity by manufacturing new components for water and gas disposal systems, made of stainless steel, carbon steel, copper as well as the alloy of copper and nickel, iron and brass. n

Steico invests Eu 4 million in new plant Steico, a company with German capital, launched the first-in-Poland plant producing LVL wood-based panels in Czarna Woda. The opening ceremony was attended by deputy prime minister Janusz Piechociński and PAIiIZ president Sławomir Majman.

Under the Steico’s investment that was supported by PAIiIZ from 2013, the company built a production facility where Laminated Veneer Lumber will be manufactured. The value of the project has been estimated at € 4m. In the new plant, nearly 120 new jobs will be created.

Last year, Czarna Woda area, where Steico operates, was incorporated into the Pomeranian Special Economic Zone.

As a result, the company received permit to conduct business there and benefited from the public aid.

Steico is one of the largest producers of wood fibre insulating materials in Europe. It has two factories in Poland and one in France. n

September 2015

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Rolls-Royce and Hispano-Suiza JV to build production plant in Poland Rolls-Royce and Hispano-Suiza have announced the creation of Aero Gearbox International and plans to construct a production plant in Poland manufacturing accessory drive trains (ADTs) for all of RollsRoyce’s future civil aircraft engines.

Aero Gearbox International will cover the entire range of civil aircraft, from business jets to widebody commercial jets. The construction of a new production plant will start at the end of 2015. It will be located in the Podkarpackie Province in southeast Poland. The new facility will initially grow to approximately 110 people and the first deliveries are expected in 2017.

Accessory drive trains, sometimes referred to as accessory gearboxes, are a critical component of a gas turbine engine, harnessing its power to drive systems and accessories such as fuel pumps, hydraulic pumps and electrical generators.

This dedicated production facility will harness the region’s mechanical expertise and draw on the experience of the Hispano-Suiza Polska facility located in Sedziszow Malopolski. n

FDI News Pasta Food Company investment in Opole In the Wałbrzych Special Economic Zone, the French-Belgian join venture will build a chilled food plant for PLN 80m in Opole. In new plant, ready made dishes for Biedronka supermarkets will be produced by JV of two companies: the French market leader in production of frozen lasagna, Stefano Toselli and the Belgian Ter Beke, manufacturer of fresh food. Initially 50 people will be employed in the Pasta Food plant in WSEZ. The employment is planed to grow up to 150 people.

Reinvestments in Łódź SEZ Two companies - Ambro Logistics and Wirthwein - received business permits in Łódź Special Economic Zone. This is the second investment of Ambro Logistics in Łódź SEZ. This time, the company will construct a warehouse and hire 5 people. The value of investment is PLN 4.5m. Ambro Logistics offers logistics services for furniture and construction industry.

Wirthwein Poland, a company with German capital, will invest PLN 16m in expanding its plant and will create 48 new jobs. The company produces parts for household appliances.

Investment in WarmiaMazury SEZ

Bagpak and Stalgast to reinvest Industrial Development Agency issued next business permits for Bagpak Poland and Stalgast Radom companies allowing them to reinvest in Tarnobrzeg Special Economic Zone EURO-PARK WISŁOSAN. Companies will invest PLN 67m in total and employ at least 9 people. The two companies enter the area for the second time. This is the 5th permit issued for Bagpak Poland.

The investor is going to build a storage and production hall in Stalowa Wola subzone. At the same time, Stalgast Radom, received the second permit in Radom subzone -this time to purchase of machinery and production equipment. Tarnobrzeg Special Economic Zone EURO-PARK WISŁOSAN has already issued 13 permits for activities within the zone in 2015. n

6 million pln investment in Suwalska SEZ Lainer from Suwałki is going to invest PLN 6m in Suwałki SEZ. It has already received a permit for operations in this area. The company has operated in the local market since 1995. It specializes in resinous and concrete floors. It also has run a three-star hotel since three years. Now, the investor decides to build factory unit to produce semi-finished chemistry products. The production is supposed to start in the mid of 2018. Six new jobs will be created due to new investment. According to president of Suwałki SEZ, Robert Żyliński, access to mineral resources and well-qualified staff in the zone have impacted on choosing Suwałki as a investment location of Lainer’s new investment.

This is the 209th business permit issued by Suwałki Special Economic Zone, and the third this year. n

2015 September

Vivenge received permit to conduct business activity in Warmia-Mazury Special Economic Zone. The value of investment is estimated at PLN 1.7m. The project is supposed to generate 10 new jobs. Vivenge’s investment plan consists of construction of production and service facility, where regional logistics centre will be created. The company produces and distributes promotional and functional components, as well as exterior signage and furniture.

Poldan-net in Słupsk SEZ Danish company Poldan-Net is launching a new project. Under the business permit issued by Słupsk SEZ, a new production hall will be built and equipped with modern technological line for the production of fishing nets.

Modern technology should help the company to expand its business in foreign markets. Poldan-Net is one of the biggest manufacturers of fishing and sports nets as well as ropes in Poland. In the Słupsk region the company owns two production facilities.

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FDI News

Katowice SEZ: PLN 900m in 2015 Mubea Automotive Poland joins the group of investors located in Katowice Special Economic Zone. This international producer of automotive components has already started to recruit employees that will work in the factory in Ujazd. The investor’s new production facility will be located in the 14-hectare-plot in regional Park of Katowice SEZ in Ujazd that is a part of Gliwice sub-zone. This is the first factory of Mubea Automotive in Poland. The company plans to create 350 new jobs there.

The production of spring band clamps and tensions systems will be launched in 2016. On the request of investor, the total value of investment is confidential.

Mubea’s plant is the second biggest investment - after Japanese NGK Ceramics Polska, (the automotive sector) - that entered the Katowice Special Economic Zone in 2015. In the first quarter of 2015, the zone issued 20 investment permits worth in total about PLN 900m. The total number of planned new jobs that will be created under new projects will reach

780. The growing interest of investors in recently joined investment areas in Częstochowa has been

observed by the zone; 6 out of 20 new projects are to be implemented there. n

Tarnobrzeg Special Economic Zone expanded The area of Tarnobrzeg Special Economic Zone Euro-Park Wisłosan was officially expanded on 4 July 2015.

Plots of Gorzyce, Radom, Rudnik near San and Łapy that cover about 21 hectares will be joined to the zone.

The incorporation of new areas in Podkarpacie and Podlaskie would create conditions for implementation of innovative investments there. Due to the new investment, 610 new jobs are to be

created there, while the estimated value of investments should reach about PLN 178 m. After the incorporation of new areas, Tarnobrzeg Special Economic Zone covers over 1,700 hectares. n

Pomeranian Special Economic Zone: PLN 104m in the first half of 2015

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Seven new business permits were issued by the Pomeranian Special Economic Zone, during the first half of 2015. Due to that the zone recorded PLN 104m of the capital inflow.

Construction of new production facilities was announced by KL Poland, a manufacturer of steel doors (value of investment PLN 17m; 122 new jobs planned), BAUS AT, which plans to start

production of vehicles for special purposes in Łysomice for PLN 13m, as well as Normex. In addition, GDA intends to spend nearly PLN 16m and launch manufacturing of innovative composite membranes using natural properties of minerals in the sub-zone in Gdańsk Kokoszki. Within the sub-zone in Stargard, SPG Poland is going to start the production of packaging,

investing PLN 28m and creating at least 20 new jobs. Investments in new production lines were declared

by Plastica (value of investment PLN 20m; 30 new jobs planned).

Moreover, Mueller Candle Factory decided to start a business in a warehouse facility rented from Grodzisk Logistics Poland in Pomeranian Special Economic Zone sub-zone - Łysomice. n

September 2015

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FDI News

Chipita expands its plant in Łódź SEZ Chipita Poland received the second business permit to operate in Łódź SEZ. The company will expand its plant in Tomaszów Mazowiecki and plans to hire 50 new staff.

Packaged snacks producer Chipita Poland operates in Poland since 1998. In 2005, the company began its investments in

Tomaszów Mazowiecki in the Łódź SEZ. Chipita is to expand its plant in order to increase the production capacity and to diversify product offer. The company intends to invest about PLN 64 m and hire at least 50 new employees maintaining the total employment in the Zone over three years at the level of 468 employees. n

Mielec SEZ pulls in 15 new projects Due to 15 new business permits issued since the beginning of 2015 by the authorities of Mielec Special Economic Zone, 425 new jobs will be created in the Podkarpackie and Lubelskie provinces. The majority of projects will be developed in Mielec. Gumotiv,

South Bay Solutions Europe, CNC Innovation and AKSIL will build new production halls and equip them with specialized manufacturing machinery. Several companies have decided for reinvestments in Mielec SEZ. Among them there are: Samdex,

Melex, Spiroflex, Colfarm, Elmat and ML System that plan the expansion of existing buildings and modernisation production equipment. Three other investors will operate in the Lublin region: ELPES, Modern Expo and “PolSkone”. n

Two Special Economic Zones get bigger The Council of Ministers decided to enlarge investment areas of two Special Economic Zones Wałbrzych and Kamienna Góra.

The area of Wałbrzych SEZ will be extended by 318 hectares while Kamienna Góra by over 19 hectares. New areas incorporated to

Wałbrzych Special Economic Zone will create conditions for innovative investments targeted at the export production. Within the next few years thanks to new investments worth approx. PLN 4bn in total, around 8,482 jobs may be created. In turn, the development

plan of Kamienna Góra Special Economic Zone consists of obtaining new locations in Dolny Śląsk province. Within the next few years, new investments (planned total value of PLN 245m), are supposed to generate approx. 750 new jobs. n

Support for R&D activity The Polish government introduced new tool supporting R&D projects.

Access to the project is available between September and November 2015. The PLN 460m-worth project is held under the EU Operational Programme “Smart Development” 2014-2020 with the total budget

reaching PLN 2,3m. The newly established tool will help to develop, implement and commercialize effects of the R&D activities within companies. The programme supporting R&D projects is available for companies planning to invest in new equipment, technology and other

infrastructure elements that allow conducting research and development. One can expect the support reaching 70% of the total value of investment; however, the final level of co-financing will depend on the location and the size of the company applying for the support. n

Three companies, 150 new jobs Bisek-Asfalt, Schneider Pojemniki Transportowe and Centrum Intermodal Ritex Transport Spedycja Logistyka have received permits to operate in the Legnica Special Economic Zone. Total investment will be more than PLN 80m.

Schneider’s investment project - worth PLN 36m - includes launching the production of

2015 September

specialized baskets and containers made of steel. The company works for BMW, Volkswagen, Daimler AG, Bosch, Siemens and Continental. Bisek - with an investment of PLN 16m - will produce and sell bituminous mass.

Due to the two abovementioned investments, over 100 new jobs will be created in the zone.

The third newest investment will be provided by Ritex that will create 50 new jobs. Under the project, the company will establish an innovative R&D and logistics centre. Additionally, technology park and business incubator will be created on the investor’s plot. The investment totals PLN 28m. n

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City News

Gdańsk/Gdynia Port of Gdansk to invest PLN 800 million during next 5 years The investment programme will see wide-ranging improvements made in the Inner and Outer Port, and will be partly funded by European Union funds, with more than half to come from Port of Gdansk Authority SA’s own budget. Some investments are already underway, such as the expansion of the intermodal container terminal at the Szczecinskie Quay, which by the end of this year.

Investment work is also in progress at the Oliwskie Quay, which will be thoroughly modernized both on land and in water.

The port still has many planned investment projects

for the future, but among them the two largest in terms of scope are the modernization of the fairway in the Inner Port and the road and rail networks in the Outer Port.

The first project, worth nearly 500 million PLN will include the reconstruction of 16 quay sections at the Inner Port with a total length of 5.8 km and the deepening of the port channel in order to improve navigation in this part of the port. The outcome of the investment will be a 90m wide fairway in the Inner Port with a depth of 12m.

In the so-called Kashubian Channel, navigation conditions will be slightly different with a track width of 75m and a depth of 10.8m. n

Huge rail investment to support Port The Port of Gdansk is the most important logistical hub in Poland, through which millions of tonnes of cargo are transported by rail every year. About 20% of the tonnage serviced annually at the port is transported by rail. Over 30% of the container cargo is carried by rail at the Port of Gdansk.

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Given that within the next decade the volume of freight in Gdansk is expected to even triple, particularly in the case of unitised goods, it has been necessary to modernise the rail infrastructure allowing access to the port, especially to its right bank.

Investment by the PKP PLKworth over 500 million PLN includes in total a 12 km stretch of railway line between the Pruszcz Gdanski and Gdansk Port Polnocny (Northern Port) stations, whose modernisation has comprised as many as 24 engineering structures, including 10 bridges, 4 overpasses and 10 culverts.

The largest of the objects is the bridge over the Dead Vistula, which is already in place parallel to the road suspension bridge.

This object, requiring approximately 2,000 tons of steel and concrete, will cost 38 million dollars and will increase the traffic capacity of the railway to the right bank of the port six-fold.

This massive steel structure spanning 124 meters and with a height of 21 meters will eventually be located 8 meters above the water.

Improving the navigation conditions on this stretch of the Dead Vistula, i.e. the five-fold expansion of the waterway, through the implementation of modern engineering solutions, is vital in the context of the long term future development of inland waterway transport at the Port of Gdansk.

This bridge is made up of as many as 72 finished steel elements

produced in Ruda Slaska at the Huta Pokoj steelworks - and then transported overland to Gdynia, where they were transformed at the Nauta shipyard so that the whole bridge could be transported on a special barge to its final destination.

The national railway infrastructure authority - PKP PLK – recognizes the enormous potential of the port and related rail infrastructure and its importance for the further development of the Polish maritime industry. The Port of Gdansk has become not only a sea and road gateway, but also a rail link for Central and Eastern Europe. By the end of this year, one track will have been launched on this line with a maximum speed of 100 km/h.

Along with its launch, the existing railway bridge will be demolished and work will begin on the construction of a parallel track, scheduled to be operational by August 2016, which will ideally coincide with the completion of the ongoing expansion of current investments in the container terminal DCT Gdansk and the almost finished investment in the new PERN oil terminal. n

September 2015

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City News

Maritime Economy Forum Gdynia – 9 October 2015 Maritime Economy Forum is the new name of the International Economic Forum, organised since 2001 in Gdynia. The event is a place of meetings and discussions of the foremost representatives of the world of business, specialists, representatives of local authorities and scientific communities. The

Forum is held under the patronage of PAIiIZ. This year’s Forum will have the form of open discussion panels with participation of business practitioners from different maritime sectors, but also entrepreneurs and scientists, which will provide opportunities for exchanging opinions, experience and ideas.

The Forum will be held on Friday, 9th October 2015 in the Conference Centre of the Pomeranian Science and Technology Park in Gdynia. The Forum is organised by Gdynia city.

More information: Witold Okun, tel: 58 712 47 13 or witold.okun@ arg.gdynia.pl n

New banana distribution center near Gdansk Citronex, a bananas distributor, tomatoes producer and owner of petrol stations and hotels chains, will soon complete another round of investments.

A new banana distribution center will be opened in the town of Pruszcz Gdański this year. The center will be equipped by the Dutch company, De Laat, with 55 specialist chambers. The chambers will make it possible to ripen 75,000 cartons of bananas. The whole investment will be about 10 million euros.

Citronex has a huge modern storing surface of 11.000 m2 with the possibility for expansion.

Rafał Zarzecki, the vice president of Citronex company said, “The location was stragically chosen. It is only a 20 minute drive from the Gdańsk port where our bananas are brought from South America. This helps shorten the distribution time

2015 September

and improve the quality of the fruit delivered to the supermarkets. We look forward to the future and we are ready to build at this place another 100 chambers if needed.”

Distribution centres in the north of Poland is another part of the company’s long term strategy.

The aim is to supply a full chain of delivery system. Citronex produces bananas in Ecuador. Last year Citronex bought the majority shares of the Cargofruit company, which allowed control of its operations in Gdańsk port. Citronex distributes bananas to chain supermarkets in several countries.

Citronex has already built the biggest maturing warehouses in Europe in Zgorzelec.

The company has at present 140 chambers near the German and Czech borders. The warehouses supply bananas for the south of Poland and customers abroad. When all new

warehouses will be ready in November Citronex is able to ripen 300,000 cartons a week.

The company isn’t only about bananas. Last winter, raspberry tomatoes from Bogatynia appeared in Polish shops. Citronex produces them with specially lighted and heated greenhouses.

The company invested in another 17 ha in Siechnice near Wroclaw.

By the end of 2016, Citronex will be using more than 60 ha of very modern greenhouses to become one of the biggest tomato producers in Poland.

“Citronex plans on spending almost 34mln Euros in investments on the fruit and vegetable sector this year.’ concludes Marek Szulc. n

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City News

Kraków ArcelorMittal to invest PLN 500 million in Krakow ArcelorMittal will restart preparations for the relining of blast furnace No. 5 in Krakow, which will reach the end of its lifecycle in mid-2016. Investments in the primary operations will total PLN 200 million, including modernization of the basic oxygen furnace No. 3.

Moreover, the company will add further projects in the downstream which entail the extension of the hot rolling mill capacity by 0.9 million tons per annum and increasing the hot dip galvanizing capacity by 0.4 million tons annually. Combined value of these two projects is more than PLN 300 million.

ArcelorMittal expects a level playing field for the energy-intensive industries in Poland, which will avoid competitive disadvantages and allow it to provide high

quality cost competitive products.

In order to meet the increasing customer demand in Poland, the company has decided to expand capacity in the downstream operations of its plant in Krakow.

ArcelorMittal will invest in excess of PLN 500 million in its operations in Krakow, including both upstream and downstream installations. These investments also confirm the strategic importance of the Central- and Eastern-European market in which the Krakow plant is the centre of flat products operations in Poland.

ArcelorMittal conducted a viability review of the conditions for sustainable and cost-competitive steel making in Central- and Eastern-Europe. The company reached a conclusion after discussing with its trade union partners and relevant stakeholders the aspects like improving productivity that is vital to remain a sustainable steel producer in the future.

Recently, ArcelorMittal supplied 900 tons of rebars for the construction of an iconic bridge across the river Wislok in Rzeszow. The 108.5 meters-tall, 400 meters-long and 29 meters-wide bridge will be the second-highest one in Poland.

With a construction budget of €44 million, the bridge will utilize ArcelorMittal rebars to reinforce the structure’s concrete components.in the U.S. and elsewhere in Europe, including Germany. About 200 to 250 jobs will be affected over the course of 2014 and 2015. n

Katowice Public Consulting Group acquires Librus

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Public Consulting Group (PCG) and its PCG Polska z o.o. wholly owned subsidiary announced the acquisition of Librus, a leading provider of IT solutions for the education sector in Poland, from Oresa Ventures, a private investment firm. The Librus management team will stay in place and additional investments in personnel and technology are planned.

Further terms of the transaction were not disclosed.

Founded in 2002 and headquartered in Katowice, Librus is well known for its e-DziennikandSynergia advanced student information systems (SIS), which currently

serve more than 20 percent of Polish schools and 27 percent of K-12 students. The integrated IT solution responds to a variety of management and administrative needs of education institutions such as supervision, compliance, and effective communication with teachers, parents, and students.

“Our mission is to introduce schools to new technologies. We have always tried to be one step ahead of the market and have been building our solutions and gathering priceless experiences for over twelve years now,” said Marcin Kempka, President of the Board of

September 2015

www.bizpoland.pl Librus. “To keep our momentum, we need a partner with strong subject-matter expertise and a global reach. I am personally very pleased to have found that partner.”

PCG President, CEO, and Founder William Mosakowski attributes his Polish heritage to long-term business interests in Poland that led the firm to establish its first PCG Polska office in Lodz in 2010. A second office opened in Warsaw in 2012. For the education sector, PCG Polska offers a training center and online training tool to support managers and staff of educational and social welfare institutions; the EdPlanweb-based student case management and support system; and program consulting, training, and review services.

PCG Polska also recently acquired Partners in Progress, a Rzeszów-based software services

City News provider to higher education institutions. With the investments in Librus and Partners in Progress, PCG Polska becomes a leader in education IT solutions in Poland and now employs nearly 200 Polish citizens.

“PCG is deeply committed to Poland. Through this and other investments, we intend to play a significant role in the success of the Polish education sector as we continue in our efforts to promote improved outcomes for Polish students,” said Mosakowski.

“I am excited to further our collaboration with Librus and with Marcin Kempka as he leads the Librus team and continues to broaden our offerings in the Polish education sector,” said Piotr Dmochowksi-Lipski, President of PCG Polska. “Librus nicely

compliments our current offerings and recent additions under Partners in Progress, and we look forward to continued growth.”

Prior to the acquisition, PCG Polska and Librus collaborated for several years, with the common goal to improve educational outcomes for Polish students.

“We have full confidence in Marcin Kempka and the Librus senior management team and we look forward to their continued delivery of quality services and products to the Polish education sector,” said Grant Blair, Director of PCG Education.

“This is an exciting time for PCG Polska. Its growth potential is significant and we look forward to its future expansion and successful achievement of its mission in Poland.” n

Poznań First REIT buys Skanska office building for 38 million pln Skanska has sold Malta House in Poznan to the REINO Dywidenda FIZ, the first real estate closed-end investment fund set up and managed by REINO Partners. The value of the transaction is EUR 38 million.

The sale will be recorded by Skanska Commercial Development Europe

in the third quarter of 2015 and the transfer of the property is also scheduled for the third quarter of 2015.

Malta House, located on the shore of Lake Malta, is the first office project developed by Skanska in Poznan. The total leasable area of this class A office complex

is approximately 14,700 square meters. Malta House is already 97 percent leased with major tenants such as Franklin Templeton, Ciber Poland and Owens-Illinois (O-I).

The complex is the first LEED Platinum certified office building in Poznan. n

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City News

Lublin Nevada city partners with Lublin Both Carson City Manager Nick Marano and Northern Nevada Development Authority Director Rob Hooper say their trip to Europe set the stage for a partnership that will bring huge economic benefits to both western Nevada and Poland.

The trip took them not only to Eastern Europe but Dublin, Ireland and London. But both men were most impressed with the potential offered by Poland.

Marano, who paid his own way on the two-week trip organized by the Governor’s Office of Economic Development and Gov. Brian Sandoval, said his goal was to find small, start-up companies looking for “a landing pad ” in the United States.

He said what those companies need that they can’t get in Poland is access to venture capital, which they can get in the U.S. Marano said one firm, Axence, has already agreed to open for business in Carson City.

During his visit to Lublin, he met with that city’s manager and they have agreed to formalize city-to-city exchanges.

He and Carson City Mayor Bob Crowell will meet with Lublin officials for further talks when

they attend the Smart Cities Conference in Israel in October.

Hooper said western Nevada is a great location for the Poles to consider because it has easy access to California markets at a much lower price than Silicon Valley. Hooper said Nevada also offers low taxes and favorable regulations for companies interested in coming to the U.S. Hooper said a Polish delegation will come to Carson City this fall and that they intend to treat

them just as well as Nevada’s delegation was treated in Poland.

“They treated us like royalty,” he said. “We’re going to treat them the same way.”

Marano added that Poland is a great location for Nevada firms looking to get into the European market because it’s costs are far lower than neighboring countries in that area such as Germany.

“We’re really creating a two-way street between them and us,” said Hooper. n

Wrocław Pesa trams enter service in Wrocław MPK Wroclaw’s new fleet of Pesa Twist low-floor LRVs entered passenger service in Wroclaw on August 14, when the first three vehicles were introduced on Line 3.

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MPK Wroclaw awarded Pesa a contract in December 2014 to supply

six three-section bidirectional vehicles, and an option for two additional vehicles was exercised in March, taking the total value of the order to 66 million pln.

The first vehicles were delivered in June, but alterations were required to platform faces at 15 stations before the fleet could

enter service. The 30m-long standard-gauge LRVs accommodate up to 220 passengers.

Last month MPK Wroclaw placed a 23 million pln contract with Modertrans for six Moderus Beta partially low-floor trams with an option for a further 16 units.

The first of these vehicles will be delivered in December. n

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City News

National Forum of Music due to open 5 September Dubbed the most advanced facility on Europe’s cultural map, the NFM was conceived as a new home for the majority of Wrocław’s initiatives, productions and artistic projects. Located in the city’s Liberation Square, it is also the headquarters for numerous assemblies including the Wrocław Philharmonic Orchestra and Choir.

Commissioned by Andrzej Kosendiak, the Managing Director of the Wrocław Philharmonic and the Wratislavia Cantans International Festival, the NFM’s design was developed

by Pracownia Architektury Kuryłowicz and its associates.

The building will open on 4th September 2015, just in time for Wrocław to take its place as European Capital of Culture 2016.

Over 100 Philips Entertainment Lighting products have been installed into the National Forum of Music. Philips distributor PS TEATR was responsible for

the delivery and installation of the Philips lighting package.

“The Philips luminaires were chosen for the NFM as they are

known worldwide for their reliability,” says Gumiński. “It was also important that the lighting fixtures worked as quietly as possible and the Vari-Lite luminaires met this demand perfectly.”

In addition, PS TEATR worked alongside the Wrocław Philharmonic to specify a wide range of loose equipment to be used as part of temporary installs for the orchestra and choir’s various events and productions.

“We recommended the extra Philips fixtures as a means to increase the capability of the rig should the Philharmonic need it,” continues Gumiński. “Their unique features and multi-functionality makes them ideal for a whole range of applications. We chose a wide range of Philips LED luminaires in particular on account of their energy efficiency and reliability.

With the NFM being such a prestigious facility there is no place for mistakes.” n

City Invest Poland Ultimate Biannual Business Guide to Polish Cities

New edition: Fall 2015–Winter 2016

Distribution starts October 2015 47 2015 September

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Chambers of Commerce News

Austria Vamed to build spa complex for 50 million euros Austrian health and wellness firm Vamed plans to invest in a new spa & wellness complex in Poreba. The project will likely be completed via a Public-Private Partnership (PPP) framework. Dariusz Skrobol, mayor of Pszczyna, said that cooperation with the Austrian company would bring many benefits to the town, but most importantly for residents would bring new jobs.

Austrians assume that the complex will employ about 250 people. n

Canada Canadian soldiers deployed to Poland as part of NATO response About 90 soldiers from 5 Canadian Mechanized Brigade Group in Valcartier, Quebec deployed to Poland as part of a NATO response to Russian actions in central and eastern Europe.

During August, approximately 200 soldiers took over Operation Reassurance duties from the 4th Canadian Division’s 2 Canadian Mechanized Brigade Group based in Petawawa, Ontario.

Officials say the soldiers are to take part in a series of exercises over the next six months with NATO allies and security partners.

Members of the Canadian Forces have been in central and eastern Europe since May 2014.

Earlier this month, a Canadian warship carrying Stephen Harper in the Baltic Sea was shadowed by two Russian frigates, giving the prime minister a front-row seat in the naval chess game between the West and Russia.

Harper’s visit with Canadian sailors came during a planned NATO training exercise called Baltops 2015, part of the alliance’s ongoing reassurance mission aimed at countering Russian-backed unrest in Ukraine. n

Republic. Representatives of local governments and chambers of commerce from both sides of the border will be present there.

The event is co-organized by Sudecka Chamber of Commerce in Świdnica, the Euroregion “Nysa” in Jelenia Gora, Polish Trade and Investment Promotion Office in Prague, the Czech Ministry of Industry and Trade as well as the Czech chambers of

commerce. Details: www.mg.gov. pl/node/24715 n

Czech Polish-Czech Economic Conference

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The Ministry of Economy and the Special Economic Zone for Small Entrepreneurship in Kamienna Gora will host the Polish-Czech Economic Conference, on 24 September 2015 in Jelenia Góra. The aim of the conference is to support cross-border economic and investment cooperation as well as expanding cooperation between Poland and the Czech

September 2015

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Chambers of Commerce News

France New strategy pays off for Marie Brizard The recently renamed Marie Brizard Wine & Spirits has reported a 4.5% sales increase for the first half of 2015 after implementing a new strategic plan. Marie Brizard Wine and SpiirtsThe French group, formerly known as Belvédère, looks set to reverse its -4.1% decline last year, which was primarily attributed to the decision to abandon several “non strategic or not very profitable” distribution contracts, third party vodkas and the sale of its Danzka vodka brand.

Although its performance was flat during the first quarter of 2015, a revival during the second quarter saw Marie Brizard’s net

sales for the first half reached €222.7 million, boosted in particular by Poland and the US. Other measures taken include projects to upgrade vodka production facilities in Lithuania and Poland, the renegotiation of procurement and bottle-sourcing contracts, the sale of Polish retail chain Galerie Alkoholi and its 39 outlets to Carrefour, and the broadened distribution of its portfolio into new markets.

Marie Brizard’s largest market remains its native France, which accounted for €96.9m of the group’s first half sales. However a sluggish start to the year saw this market lag -1.3% behind

its performance over the same six-month period a year ago.

There was a brighter picture from the group’s second largest market Poland, which was responsible for much of Marie Brizard’s 2014 woes. Net sales rose 4.5% for the first half of this year, boosted by strengthened distribution for Krupnik vodka.

The company anticipated further growth from the Polish market this year thanks to the recent launch here of its William Peel blended Scotch whisky and Fruits and Wine brand, the latter playing a key role in the growing trend across several markets for fruit flavoured wine. n

French Touch! – partners with CCIFP French-Polish Chamber of Commerce, more than 20 years, supports the development of French companies in Poland and is committed to promoting trade with France. The aim of the French Touch is to continue this initiative and build a positive image of France, promoting the savoir-faire of French companies and the quality of their

products among a wide range of Poles.

What is French Touch? French Touch is a national trade event, addressed to the entire Polish society, involving a number of French companies from 23rd September to 10th October. Prestigious Gala, which will take place on October 5th at the Grand Theatre in Warsaw and VIP cocktail, bringing

together visitors from all sectors: public administration, showbiz, fashion and above all French and Polish entrepreneurs. n

Germany Poland - the number one for German investors “Poland is the most attractive country in Central Eastern Europe regarding investments. This is the third gold we received from German investors”, said PAIiIZ president Sławomir Majman during the presentation of the report prepared by Polish - German Chamber of Industry and Trade (AHK). Under the report 1,400 German companies operating in CEE were surveyed.

Almost all companies surveyed

by AHK (96%) declared the will to choose Poland once again when investment decision making.

Poland scored 4.16 points in the overall investment evaluation of

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CEE counties. This result made Poland the best investment destination in the region for German investors the thirds time in a row. The second place went to the Czech Republic (4.00 points) while Estonia was the third (3.89).

“According to half of German companies, the business environment in Poland improved comparing to the last year. Only 5% of them complain about it”, adds Majman. Poland’s access to EU, high quality of staff, good education offer at universities, the access to good suppliers and highly motivated staff to work - this is what attracts German

investors to Poland. This positive image of Poland impacts on the fact that Germany is the biggest foreign investor in the country.

According to KPMG data, the total share of German investment in Poland was estimated at 17% and reached PLN 117bn.

“Poland has a great potential to become the European Union’s leader”, said Rolf Nikiel, the Ambassador of Germany in Poland. Over 6,000 companies with German capital operate in Poland mostly in automotive and chemical industries. In total, German investors employ 300,000 people in Poland. n

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India Poland woos Indian firms to set up manufacturing facilities Poland seeks to woo Indian entrepreneurs to set up their manufacturing facilities offering support and presenting itself as a gateway for tapping the European Union.

While the bilateral trade between India and Poland is loaded in favour of India with €1,282 million against €413 million for Poland, there is huge potential to boost the trade between the two countries.

Speaking at a meeting hosted

by FICCI, Tomasz Lukaszuk, Ambassador of Poland, said there is potential to partner with Indian companies in the areas of manufacturing, coal mining,

food processing and research and development. As a largest producer of coking coal in EU, Poland sees itself as a country that can share its expertise in coal mining with Telangana and possibly other states too.

Referring to the food processing sector potential, he said, “As one of the largest producers of milk and dairy products and a leading player in agri-food processing, there is potential for a number of collaborations in upstream and downstream agri-food value chain.”

FICCI is hosting the second India-Central Europe Business Forum (ICEBF) meeting in

Bengaluru during October 5-6 with Poland as a country partner. The first one was held in New Delhi and the next one may possibly be in Hyderabad.

Devendra Surana, Co-Chairman, FICCI Telangana and Andhra Pradesh, said, “ICE now refers to India and Central Europe and collaborations between the two would be of immense help for sharing technologies and entering into partnerships.”

Over 130 companies from Central Europe, covering automotive, technology, renewable energy, food processing, are expected to take part in the meeting, he said. n

Ireland Origin Enterprises to buy Polish firm Kazgod for €22.4m Irish agricultural group Origin Enterprises has reached an agreement to spend €22.4m to acquire Polish agri-services business Kazgod group. Under the terms of the deal Origin will acquire 100pc of Kazgod with about €20.3m of the total consideration to be satisfied on completion of the deal.

Kazgod specialises in providing agronomy services, inputs and crop marketing solutions. It employs over 200 people and has about 2,600 customers across central and eastern Poland. For the year to the end of 2014 it had sales of €200m and earnings before interest and tax of €1.2m.

Origin said that the acquisition will augment the company’s

existing operations in Poland, which are currently servicing approximately 3,500 largely arable farmers under the Dalgety brand.

Origin chief executive Tom O’Mahony said: “Kazgod furthers Origin’s strategic development objectives and positions the group as the premier service provider to primary arable producers in Poland. The combination of Kazgod and Dalgety will bring benefits through new customer extension opportunity and an enhanced capacity for the development of new and innovative service propositions.”

Flavours of Ireland, October, 1st – Sheraton Hotel n

Italy Value of Italian direct investment in Poland exceeds PLN 38 billion 50

KPMG recently released its new report (prepared in cooperation with the Embassy of Italy in Poland and under the honorary patronage

of the Ministry of Economy) “Towards Development. PolishItalian Economic and Business Cooperation”.

According to the report, more than 1,300 companies with Italian capital have invested in Poland, and employ around 90,000 people.

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In 2013, Italy was the sixth largest direct investor in Poland, with investments exceeding PLN 38 billion. According to Italian investors, Poland is the most attractive investment country in the region, and in the future its attractiveness will increase. As many as 98% of surveyed businesses evaluate the last 20 years of Polish-Italian economic and business cooperation positively.

Since Poland’s accession to the European Union, Italian direct investment in Poland has increased significantly, exceeding PLN 38 billion in 2013. This puts Italy in 6th place in terms of the volume of direct investment in Poland, just behind Germany (PLN 114 billion), the Netherlands (PLN 107 billion), France (PLN 79 billion), Luxembourg (PLN 64 billion) and Spain (PLN 43 billion).

Most of the Italian investments have been in the financial and

insurance sector (PLN 24 billion) and in manufacturing (PLN 11 billion).

“It is worth noting the mutual openness of Italians and Poles, which allows good business relations to be maintained and the scope of cooperation to be gradually increased. Undoubtedly, the declaration is strong: that 94% of Italian respondents said that they would recommend Poland to foreign companies”, said Andrea De Gaspari, manager of consulting services, Italian Desk at KPMG in Poland.

Food products are an important part of Polish-Italian trade. In 2014, Poland purchased food products worth over PLN 2 billion from Italy.

In this category, fruits and nuts (PLN 445 million) and alcoholic beverages, soft drinks and vinegar (PLN 262 million) had the largest shares. Interestingly, Poland exports more food to Italy than it imports. In 2014, Polish exports to

Italy were worth PLN 3.6 billion, of which most were meat and offal (PLN 1.6 billion) and dairy products, eggs and honey (PLN 0.7 billion).

“Italians are famous worldwide for their top quality luxury goods. Among the luxury brands present in Poland the highest proportion (22%) are Italian brands. Italian luxury cars are enjoying growing popularity in Poland – in 2014, 68% of luxury car registrations in Poland were Italian”, said Andrea De Gaspari, manager of consulting services, Italian Desk at KPMG in Poland.

The five areas with the best prospects in which, according to Italian investors, Polish-Italian cooperation will develop in the next 10 years are: food (57% of responses), automotive (52%), luxury goods (44%), clothing and footwear (34%) and hospitality, tourism and recreation (25%). n

Latvia Latvian platform takes extra steps to attract investors It’s challenging enough to establish yourself in a disrupted industry as a start-up, but an even bigger challenge when your industry is taking baby steps in your region. Ieva OzolińaBērzińa said that unlike platforms operating in Western Europe, Twino had to market itself in an area unfamiliar with the peer-to-peer concept.

“In Latvia, unlike Western Europe where peer-to-peer lending has been around for six to eight years, it is a new idea here.”

That meant trust was as issue, Ms. Ozolińa-Bērzińa said. Twino, which was developed by FinaBay,

knew from the FinaBay experience they would have to earn that trust.

Twino introduced a loan buyback program where they purchase default loans, a move Ms. Ozolińa-Bērzińa said has attracted investors from more than 15 European countries.

That buyback will be a key part of Twino as it shifts away from lending and toward becoming a peer-to-peer marketplace, a transformation beginning in earnest this week.

Twino users will now be able to invest in FinaBay loans made

to borrowers in Latvia, Poland, Czech Republic, Georgia, Denmark and Russia. Ms. Ozolińa-Bērzińa said in the three months the platform has been live, Twino investors have displayed a strong appetite for investing in highquality loans with no risk class.

“Because Latvia has few natural resources and a small population we have to promote our people. We have many beautiful minds behind startups in the Baltics. Take Skype in Estonia and AirDog in Latvia for example.”

“And hopefully Twino.” n

Luxemburg Luxembourg Presidency of the EU Council For the 2nd half of the year 1015, Luxembourg assumes the Presidency of the EU Council.

The Luxembourg Presidency work programme is based around 7 headings: stimulating investment to boost growth and employment;

2015 September

deepening the EU’s social dimension; managing migration, including freedom, justice and security; revitalising the single market with a focus on its digital dimension; placing EU competitiveness in a global and transparent

framework; promoting sustainable development and strengthening the EU’s presence on the global stage. n

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The Netherlands New jobs in Bolesławiec Over 50 new people will be employed by Dutch firm Favorite Gifts Print Europe that will operate in Bolesławiec in a warehouse built by the Wałbrzych SEZ. The investor will spend PLN 9,5m on that purpose.

Favorite Gifts Print Europe is a Dutch, family-owned advertisement producer. The

company has been operating in Holland and Belgium. So far 20 people have been employed in Bolesławiec. “Many young people from the local community returned from Ireland or Great Britain to work and develop with us”, comments Paweł Zech, MD of Favorite Gifts Print Europe in Bolesławiec.

This is the eighth company operating under Wałbrzych SEZ in Bolesławiec. The total value of investments established there is PLN 220m. 490 people have been working in the Bolesławiec sub-zone which is located on the German border. 54 hectares of the investment plot still waits for new investors. n

Sweden Swedish molder Rosti acquires Bianor Poland and Romania Injection molding company Rosti AB has secured the purchase of Bianor Sp. z.o.o. from the DutchGerman private equity company Nimbus Investments.

Bianor is an injection molder and assembly-solutions provider within the small household appliances, electrical goods and safety accessories sectors. The firm was founded in 1997 as a Polish-Dutch joint venture in Bialystok. It has since developed a factory in Bialystok and a second facility in Ploiesti, Romania.

Combined, the two facilities offer 20,000 square meters of manufacturing capacity, plus an additional 12,000 square meters of warehousing space.

Bianor has more than 80 injection molding machines ranging from 50

to 1,200 tons of clamping force and will be incorporated into Rosti’s European division, led by Barry Coughlan, executive vice president and deputy chief executive.

“We are delighted with the acquisition of Bianor. This will enhance our capacity, capability, customer base and geographic positioning, giving Rosti the opportunity to support additional customers within our global footprint.

Bianor has an excellent culture, a skilled and dedicated workforce, modern facilities and a reputation for innovation and continuous improvement”, said Coughlan.

Malmo, Sweden-based Rosti has 10 manufacturing facilities, located in the United Kingdom, Sweden, Germany, Poland, Turkey, China and Malaysia. The

company is owned by Swedish investment group Nordstjernan.

Edwin Puijpe of Nimbus Investments, a hands-on investor with offices in the Netherlands and Germany, said: “Together with local management, we have worked hard over the last eight years to bring Bianor to where it is today. In this period we have invested in two brand new factories. The customer base has been increased from three to more than fifteen OEM customers, all with leading positions in their sector. We are very proud of what has been achieved through the dedicated management team and workforce, which we like to thank for that. We are confident that Bianor will continue to grow and develop under the Rosti leadership.” n

Scotland St Andrew’s Caledonian Charity Ball 2015

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A few new attractions await at this year’s St Andrew’s Caledonian Charity Ball at the Marriott Warsaw Hotel on Saturday 28 November 2015. In addition to enjoying the usual Scottish themed dinner and ceilidh, the organizers have set a stroll along Edinburgh’s

Royal Mile where you can savour fine whisky, vodka and beer in our pubs. If our ceilidh leaves you with an appetite for more, the Ball will run into the wee hours with a buffet breakfast of Scottish favourites and a disco featuring the music of Scottish bands. n

September 2015

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Events

Taiwan Minister boosts trade ties to Poland In early summer, Taiwan’s Deputy Minister of Economic Affairs, Mr. Shih-Chao Cho, accompanied by a top delegation of investors, including Mr. Michael Lin, President, Taiwan Stock Exchange, visited Warsaw to promote further business ties between Taiwan and Poland.

Currently about 27 Taiwanese companies are operating in Poland.

Taiwan is especially lobbying for passage of an “EUTaiwan Economic Cooperation Agreement”. The goal of the toplevel visit was to discuss possibilities of economic cooperation stemming from the pending Economic Cooperation Agreement between Taiwan and the EU. A Taiwan-EU economic cooperation agreement would create considerable benefits for both sides, as the EU is Taiwan’s largest source of foreign direct investment and one of its biggest trading partners.

According to a feasibility study by a Danish think tank, Taiwan and the EU would respectively gain more than 10 billion euros of growth from such an economic agreement.

The European Parliament has passed multiple resolutions urging the signing of an ECA with Taiwan.

Minister Cho emphasized that Taiwan can be a strong intermediary and partner between China and other investors in Europe

While current negotiations between the EU and U.S. on a free trade agreement is an important

2015 September

development for global integration, Taiwan is also actively seeking to sign similar pacts with TransPacific Partnership members to create favorable conditions for its future participation in the trade bloc.

Minister Cho emphasized that Taiwan can be a strong intermediary and partner between China and other investors in Europe.

Taiwan is one of the largest investors in China, and many major Chinese companies are controlled

by Taiwanese owners. He also emphasized Taiwan’s world-leading positions in ICT, automotive components, and green technologies, including renewable energies.

Taiwan is a leading producer of solar panels and semiconductors, as well as wind turbines, for both offshore and onshore.

Other opportunities for Polish companies include food exports to Taiwan, which produces only 34% of the food it consumes. Taiwan imports large amounts of food from the United States and New Zealand.

Mr. Cho’s visit reflects a successul pattern of business development: bilateral cooperation with private businesses and supported by government institutions. n

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Events

Pride of Poland Arabian Horse Auction Ten-year-old mare Pepita fetched €1.4 million at last weekend’s Pride of Poland sale.

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The first lot into the ring at the famous Pride of Poland Arabian Horse auction, held in mid-August, auction topped the sale with the Esktern daughter Pepita fetching an impressive €1.4 million.

The 10-year-old mare, in foal to Pogrom, won the National Champion Senior Mare title at the Polish Nationals in 2014, earning a massive score of 94.5, with top marks for type and her head and neck.

Pistoria has many show titles to her credit, including finishing second to Pepita at the 2014 Polish Nationals.

Her dam, WAHO Trophy recipient Palmira, remains one of Michałów’s archetypal broodmatrons. Her many wins include Polish National Champion/Best in Show, All Nations Cup Champion, and World Reserve Champion.

Another mare by Ekstern was the next highest priced, with

Pepita was the cover horse for this year’s auction catalogue, and her dam Pepesza was also a cover girl, in 2006. Pepesza sold for €135,000 to Hennessey Arabians in the US at the 2006 sale.

Bred by Janów Podlaski Stud, Pepita has had five foals including four colts. Her two-year-old, Pitawal, by Kahil Al Shaqab, was Polish National Silver Champion Junior Stallion as a yearling.

Pepita’s new owner has not yet been revealed.

Six of the seven Ekstern daughters on offer at the sale fetched a total of €2.115 million.

The second highest priced lot this year was Pistoria, who was sold

by Michałów Stud for €625,000.

The 11-year-old daughter of Gazal Al Shaqab, from the Monogramm mare Palmira, is in foal to Vitorio To.

Wieża Róż fetching €270,000 for Michałów Stud. From the Laheeb mare Wieża Babel, the chestnut seven-year-old was sold in foal to Emerald J to Hilke De Bruycker of Al Thumama Stud.

Wieża Róż was Polish National Junior champion mare in 2009, and has several other top five titles to her name.

In other notable sales, Britain’s Shirley Watts of Halsdon Arabians, a regular buyer at the sale, bought the 10-year-old Ekstern mare Altamira for €250,000.

Last weekend’s main sale realised €3.995 million, and the Summer Sale made €603,500, making an overall total of €4,598,500.

The Pride of Poland sale is held annually, and is of horses bred mainly in the state stud farms of Janów Podlaski, Michałow and Białka. n

September 2015

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Events

Poland’s Aviation Valley at Paris Air Show Over 2,200 exhibitors, 7,000 business meetings and 200,000 visitors - those are the statistics of this year’s Paris Air Show. Poland was represented there by the “Aviation Valley” cluster. Presentations were made of the full range of offers based in this hub, including from aircraft made in Mielec to highly-engineered engine components made by such companies as WSK Rzeszów, Hispano Suiza or Ultratech. Also a delegation of companies from the Eastern Poland Macro-region headed by PAIiIZ deputy president Anna PolakKocińska came to the show to see the trends in the aviation industry and build new business contacts.

The City of Rzeszów also had a strong presence the show. n

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