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May 2013

vol. 5 no. 4(35) Price: 20 zł

Energy: Shale, coal and wind projects

FDI News: VW plant in Poland?

Cities Łódź revitalizes factory

Farmland seduces


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Table of Contents May 2013 vol. 5 no. 4(35)

Published by: BiznesPolska sp.z o.o. ul. Długa 44/50, bud. D, lok 704, 00-241 Warszawa tel.: 022 831 7062 General Manager and Editor: Thom Barnhardt (tb@bizpoland.pl) Publisher: Craig Smith (cs@bizpoland.pl) Editorial staff and writers: Leon Paczyński, Monika Tutak Research team coordinator: Magda Adamczyk Advertising Sales: tel.: 022 831 706 2 mobile 508-143-963 Graphic Design: Sławek Parfianowicz sparfianowicz.wordpress.com Subscribe to BizPoland Magazine Annual subscribers to BizPoland Magazine receive our monthly magazine, as well as five business directories for free: O ­ utsourcing in Poland, CityInvestPoland, Top Offices, Top Shopping Centres, and Wind Power in Poland. 500pln for one year.

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Cover Story Farms seduce investors

8 Energy (8) Coal plant scrapped, renewable subsidies adjusted; Construction of Myslino wind farm one step closer; (9) EBRD provides loan for ‘first” gas-fired power plant; (10) Poland working on strategies for first nuclear plant; 3Legs Resources outlines plans for Baltic basin in 2013 11 Taxes 11 New U.S.-Poland Treaty Signed – The End of an Era? 12 FDI News (12) Speculation flies over LOT takeover; Netia S.A. launches first 100G network in Poland; (13) Palmer Capital to shop in Poland; (14) Turkey, Poland race for Volkswagen bid; Poland and Spain top FDI list; (15) A 35 Polish business leaders visit Dubai World Central; AIM: Polish businesses to target UAE and Gulf markets; (16) Kinnevik sells Polish f arm for $60 million; (18) Poland expands its presence in Nigeria; (19) First plant in Kamienna Góra Special Economic Zone 20 City Investment News (20) Poznań; Bydgoszc z; (21) Gdańsk; Łódź; (22) Szczecin; Lublin; (23) Wrocław; (24) Katowice; Sosnowiec; Kraków 26 Chambers of Commerce News (26) Japan; Czech; (27) South Korea; (28) France; Turkey; India; (29) Switzerland; Portugal; United Kingdom; (30) China; (31) Spain; United States; Austria 32 Business Calendar 34 Events 34 MotoIdea Wrocław 35 Kielce bids for BPO business 36 Banking Forum 38 FashionPhilosophy Fashion Week


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Cover Story

Farms seduce investors As investor interest in farmland increases across Poland and eastern Europe, a few top firms are selling. Mark Laird, a 40-year old Englishman, is cashing out. In mid-April, he agreed to sell the firm he founded, Continental Farmers Group, for nearly $100 million, to a Saudi consortium. The transaction highlights the growing appeal of productive farmland in Poland and eastern Europe, as a broad range of investors – Saudi sovereign wealth funds, UK-based pension funds, and American hedge funds – see value in owning large swaths of agricultural land.

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Mintridge International specialises in the sourcing, acquisition and management of farmland across Central and Eastern Europe. We provide a complete professional service to both private and corporate investors, advising on the set-up of suitable investment vehicles, the sourcing and acquisition of farmland, and the implementation of an appropriate long term land management solution. We manage farmland investments with a focus on building capital growth of the asset over the medium to long-term, whilst also looking to achieve an annual return to the investor in the short-term. The focus is on Eastern Europe, and in particular on Poland and Romania, where there are significant opportunities to see good annual returns, allied to anticipated capital growth of the asset as land prices converge with those of their Western European neighbours. We have satellite offices in Warsaw and Poznan, and in Bucharest, which gives us the on-the-ground knowledge that we believe is vital to being able to service the investor requirements efficiently and professionally. From these offices, we can also source farmland in many other Central and Eastern European countries including Bulgaria, Hungary and Serbia, giving investors the opportunity of exposure to further land markets, depending on where they want to be positioned on the risk scale. n

Laird is a graduate of the Royal Agricultural College, and established the group’s farming operations in Poland in 1994 and lived in Poland until 2004. In 2006, he spearheaded the Group’s expansion into Ukraine. The Saudi buyers - comprising dairy giant Almarai, grain importer Al Rajhi and Salic, the agriculture arm of the country’s Public Investment Fund sovereign wealth fund – agreed to pay some £60 million for Continental Farmers Group, which operates farms in Poland and Ukraine. United Farmers Holding Company (UFHC) is incorporated under the laws of the Kingdom of Saudi Arabia, and is whollyowned by Saudi Agricultural and Livestock Investment Co., Saudi Grains and Fodder Holding LLC and Almarai Company. Dr Khalid Al Malahy, director of UFHC, said that “the investment strategy of UFHC is to make long-term investments in the agricultural sector, with the principal objective of developing sustainable sources of food, grain and fodder on a global scale.” Nicholas Parker, Chairman of CFG, said that “for the company, it brings access to substantial capital and to the expertise of the members of the consortium in the international agribusiness sector. It is only 20 months since we listed and new investors joined to support CFG’s strategy for

growth. In that period, under Mark Laird’s leadership, CFG has developed an outstanding farming platform, which is reflected in the offer that we have received.” Continental Farmers Group Plc (CFG) is an Isle of Man-based agricultural holding company with farming operations in the northern Poland and western Ukraine. Its core business is crop production comprising oil seed rape (OSR), sugar beet, potatoes, wheat, and maize. CFG has approximately 21,000 hectares of chernozem (black soil) farmland under lease in Ukraine with approximately 17,000 individual land leases. It also leases approximately 1,100 hectares of land and owns a further 1,600 hectares of freehold land in Poland. CFG’s Polish operations are focused primarily on the production of arable crops. Its Ukrainian land bank consists primarily of five contiguous farm blocks organized in a cluster. The company’s crops are sold when harvested or stored in the Company’s storage facilities for later sale to the Ukrainian domestic market, Russia and the European Union.

Land prices rising Land prices are firming across much of central and eastern Europe, as interest from institutional investors begins to translate into transactions on the ground.

May 2013


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This is mainly through pension funds from the USA and Canada, as well as from some European countries such as the Netherlands and Denmark. These have spent a good while researching and assessing their opportunities and are now acting. As land ownership becomes increasingly compelling and more difficult to realise in many other countries around the world, the trend looks set to continue. While new farmer investment has dried to a trickle in recent years, those who invested in the region in the early and mid 1990s have been through some very tough years and are now seeing capital growth and improved farming results. Although there are significant variations in growth rates, the Central and Eastern European land market has by no means topped out. Farmers looking in this direction to expand can find the land they need and invest, with an exit strategy based on the expectation of further capital growth.

Poland – a mature market? Land values in Poland have continued to mature since EU accession in 2004 and are still firming, particularly for good-quality land. Prices range from £1,200/acre up to £4,800/acre at the top end. For top-quality

2013 May

Cover Story

land this represents an increase of about 25% compared with three years ago. As with other member states, EU accession in 2004 helped the agricultural sector in Poland. It received grants for machinery and buildings, and single farm payments were introduced, which last year amounted to about £170/ha. Over the past 12 months agricultural investment advisory firm Brown & Co has completed several acquisitions and has others ongoing in Romania, Poland and Ukraine, both for institutional clients and family interests. The recent sale of Continental Farmers Group, which farms about 30,000ha in Ukraine and Poland, to the Saudi consortium is an example of the growing interest in the region. This interest has several drivers apart from wider factors such as population growth and the changing economic status and demands of consumers in countries such as China. For investors from the Middle East the main drivers seem to be food security-related issues while land ownership, operating returns and potential land appreciation are important factors for other investors. The countries in the world where land ownership is possible and where title is at least reasonably secure appear to be

Saudi Agricultural & Livestock Investment Company (SALIC) is a Saudi joint stock company 100% owned by the Saudi Government through the Public Investment Fund (PIF). Established in November 2011, the paid-up equity capital is $800mm, with headquarters in Riyadh, Saudi Arabia, and led by CEO Abdullah Aldubaikhi. Wheat: Strong demand outlook driven by population growth and an increasing diversification of diet. Corn: Animal feed a major contributor to domestic corn consumption. Corn is also a key component of local diet. Barley: Saudi Arabia is the largest barley importer globally, which is used for animal feed.

diminishing. The increasing desire of some countries to retain precious resources such as productive agricultural land, minerals and water - often referred to as resource nationalism - is likely to make the CEE region more compelling for investors.

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Cover Story

JV set up to buy Polish and Romanian farmland expansion Britain’s biggest farm management company, Velcourt, which manages 50,400 hectares of arable and dairy farms in the UK for 81 clients, has set up a jointventure with Mintridge International, a farmland acquisition company focused on Poland and Romania. Velcourt, a British company based in Herefordshire, is banking on a rich, black resource of a different nature to boost its business, and rather than America the precious substance is in the emerging European market of Romania. The major attractions are competitive land prices and the fertile soil known as black earth, which have left Richard Williamson, the company’s Farms Director, excited about the future prospects. Williamson, 47, who joined Velcourt in 1987 as part of the firm’s Management Training Scheme after graduating from the Royal Agricultural College, says of the ‘Chernozem belt’ that spans parts of Romania, the Ukraine and Russia: “In Romania, it is particularly prevalent across the southern and eastern parts of the country. Chernozem soil is characterised by a deep layer of humus rich and fertile top soil, or black earth that is dark in appearance. “The soils are ideal for growing wheat, maize, sunflowers and rapeseed, so much so that last year the Black Sea region produced a quarter of the world’s wheat exports. “According to Strategie Grains, Romania will be a net exporter in 2013/14 of 400kt barley, 2mnt wheat and 1 mnt maize. Romania has become an approved supplier to Egypt – the world’s biggest wheat buyer – as quality and reliability of supplies have improved in recent years. With exports of 50kt ships from Costanzia, Romania can compete favourably into the international grain market.” But Richard, who is responsible for overseeing Central and Eastern Europe, says that “our model is based on the features and farmland of Romania, drawing on the knowledge and expertise we have built up from UK and international farming operations ever since 1967.” Velcourt, which is also the biggest company in Europe when it comes to farm management, has now recruited

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most of its new staff in Romania with the team initially being led by one of the firm’s former employees who has lived and worked in Romania for 13 years. “The dynamic of the management hybrid (i.e. a combination of local, expat and UK personnel) we believe provides the best chance for the various businesses to succeed,” said Richard, who is confident that Romania will prove fertile in more ways than one. “Research that we and Mintridge have conducted indicates that land values are poised to emulate the appreciation seen in Poland, which is a few years ahead of Romania following its earlier accession to the EU,” he says. “Our expertise and experience within Eastern Europe will be invaluable here to maximising the land value potential, and we believe the trade routes in Romania, courtesy of its proximity to the Danube and the Black Sea, accentuate the value to be gained from commodity exports. As a member of the EU the main benefit for Romania is trade with other EU countries incurs no taxes or restrictions, unlike Russia or Ukraine. And the response from investors – mainly family offices or private equity – which has been highly positive, seems to have been matched by the enthusiasm of local farmers. “It is likely that there will be investment in grain storage and irrigation facilities. Grain storage allows farms to be protected from the vagaries of the market and where practical and appropriate, irrigation provision provides a more reliable yield of corn,” explains Richard. Of course most of the agribusiness news of late has been about the Chinese buying up huge swathes of land around the world, most notably in the south of Argentina, for soya production. But Velcourt is keeping its focus firmly on this side of the Atlantic, although the company did consider the South American option. “Agriculture – and land specifically – is an incredibly hot asset class right now. As part of our review of where our model was best put into practice we looked at a number of locations across South America, Africa and Australia,” says Richard. n

Crop yields are relatively modest by Western European standards, but so are costs. Across the region, wheat yields range from 3.5t to 8t/ha, with an average around 5t/ha with the highest yields generally in Poland and the lowest in Russia. Added to that, the opportunity to manage land very well and translate improved yields and operating returns into enterprise value and/or an increase in the value of the land seems to be driving a number of investors. Investors have driven up agricultural land prices in Poland by an average of 25% in the last 3 years – and their bets are based on strong beliefs that Polish agricultural land has potential for further efficiency gains, and are a strong inflation hedge with the added bonus that the investment satisfies man’s most basic need.

Swedes seeking $60 million Another firm looking to cash in is Kinnevik, the Swedish investment group which is the biggest investor in Russian ag business Black Earth Farming. In April, the firm announced its intention to sell its Polish farm to cash in on gains in land prices, and bankroll “other opportunities in emerging markets further east”. The group, whose investments range from packaging to online retailing, said that it was time, after 13 years, to sell its Rolnyvik arable farming enterprise in northeastern Poland, with a guide price of some $60m or more. The disposal of the 6,700-hectare business, some 250km from Warsaw will allow the group to crystalise what it said had been “substantial operational and asset value improvement over the last decade”. “With the Polish land market maturing, the sale of the business will allow Kinnevik to focus on other opportunities in emerging markets further east,” the company said.

Price growth “Kinnevik have had their time with it,” David Cousins, the chief executive of Kinnevik’s KinnAgri business, which is handling the sale, told Agrimoney.com. “They now what to put their money into another area. Things are going well, and it is always better to sell in good times.” Poland’s land prices have received a double boost during the time of Kinnevik’s ownership of Rolnyvik, from accession to the European Union in 2004 besides the broader boom in values of agricultural assets in recent years.

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Cover Story In the black

Mia Brunell Livfors, Kinnevik

Polish land prices range from about $1,9007,500 per hectare, with prices of top quality land up some 25% during the last three years, according to consultancy Brown & Co.

Mr Cousins said that the group was looking for offers for Rolnyvik “in excess of Euro 45 million”, equivalent to about $60 million.

The Rolnyvik operation, which grows crops such as barley, sugar beet and wheat, has run at a profit in every year under Kinnevik operation, Mr Cousins said. Most crops are sold to the open market, “national and internationally as well as locally”, although the sugar beet is sold under contract to a local processor. Roknynik is expected to attract international interest, potentially from institutional investors, Mr Cousins said, with Kinnevik billing the site as offering “excellent infrastructure and extensive crop storage facilities” besides the land for sale. “It is one of the largest commercial agricultural investment opportunities to be offered for sale on the open market in recent years,” Kinnevik added. Kinnevik shares were trading, in early May, at SEK175 on the Stockholm stock exchange, up a healthy 40 % since January. n

What’s available – examples CEE: 200ha of freehold good-quality arable land in southern Poland - guide price of £1m plus cost of machinery/work in progress 3,000ha of freehold of good-quality land in southern Romania - guide price of £9m plus cost of machinery/work in progress 1,200ha in southern Ukraine, 10 year leasehold - guide price of £600,000 plus cost of machinery/ equipment, work in progress 20,000ha in southern Russia - ringfenced, registered leasehold with 37 years remaining - guide price £10m

Poland: Most developed market with land price firming, helped by EU accession Prices range from £1,200/acre up to £4,800/acre Top-quality land price has risen about 25% in past three years Single farm payments were worth about £69/acre last year

Around the region: Romania Land market gaining compared with 2012 - up about 5-10% on a year ago

Values split between lower priced very small parcels of land priced from £600/acre to large workable blocks at £1,000-1,800/acre. Romania’s land market is also gaining. It is divided into two distinct markets very small parcels of land that are not consolidated and similar parcels that are merged into large workable blocks. Consolidation is the process whereby very small parcels of land owned by many small landholders are amalgamated, sometimes by purchase and sometimes by swapping, to achieve workable blocks that are 100% in the same ownership. Where 100% is not possible, a small proportion is rented. Unconsolidated blocks on the primary market range from £600/acre while consolidated workable blocks of land normally change hands at £1,0001,800/acre. This is about 5-10% higher than a year ago and there is definitely increased interest in the Romanian land market compared with 2011 and 2012. Ukraine No agricultural land sales permitted but long-term lease rights are possible. Value of rights has firmed in the past six months and ranges from £75/

acre to £300/acre for typical 10 year agreements Annual rent of c £20/acre also payable Prices have risen 10-20% on a year ago but mostly still only 50% of highs paid in 2008 before global financial crisis. There is a moratorium on all agricultural land sales in Ukraine. This means it is not possible to own land in Ukraine, but long-term lease rights are available. The value of these rights has firmed in the past six months, ranging from £75/acre to £300/acre for typical 10-20 year agreements, on top of which an annual rent of perhaps £20/acre is paid. This typically represents a 10-20% rise from 2012, but in many cases is still only 50% of the market highs that were being paid in 2008 before the global financial crisis. The moratorium has been scheduled for review in the past but has so far not resulted in a change in the legislation. While it is likely to be revisited in the future, there are no guarantees or timelines for when this may take place although lease agreements carry the right of pre-emption to purchase the land whenever the legislation is changed.  n

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2013 May


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Energy

Coal plant scrapped, renewable subsidies adjusted Polish utility PGE scrapped plans to build two 900-MW coal-fired power units worth $3.6 billion at a plant near the southwestern city of Opole, citing falling electricity prices and weak demand.

“Changes on the energy market and the macroeconomic environment have limited the economic effectiveness of this investment for PGE,” the statecontrolled company said to Reuters. 

The project at Opole was considered a strategic investment, because Poland needs to replace its outdated capacity with new power plants to avoid blackouts.

Grid operator PSE expects that 6.6 GW of the current 37 GW of installed capacity will be taken off the grid by 2020 as outdated plants close.

In April, Poland’s deputy economy minister said the government plans to cut renewable energy subsidies after an economic slump boosted the budget deficit. Jerzy Pietrewicz, who was named to his post in February, said he’s updating proposals set out in a renewable energy draft law in October, according to Bloomberg. The revamped subsidies will be combined with a “more balanced economic approach” to energy, emphasizing wind and biomass plants while keeping a lid on solar photovoltaic, he said. 

“We don’t plan a retreat from support, but we see that progress in technology allows us to reduce rates proposed earlier,” Pietrewicz said. 

Prime Minister Donald Tusk’s government is attempting to ease jumps in power prices while

complying with European Union rules and an EU court decision requiring it to adopt incentives for renewables. Poland produces 90% of its electricity from coal and aims to expand the amount of energy it derives from cleaner sources to 15% by 2020 from about 2% now. Those cleaner sources include nuclear, though financing a planned 2023 plant is proving difficult. 

Poland estimates that the cost of state support for renewables will rise to 10.8 billion zloty in 2020 from 5.5 billion zloty in 2014. The government budget deficit in the first quarter widened to 25 billion zloty, the most in a decade. 

Support for existing

biomass co-firing projects, Poland’s most popular renewable energy source, reportedly will be maintained until 2017. Polish power plants doubled their biomass burning from 2006 to 2011, resulting in a jump in prices for the fuel, according to data from the Economy Ministry. 

Wind power should become the “base” renewable source, weaning the nation away from its dependence on coal, Pietrewicz said. Wind capacity grew 55% last year to 2.5 GW, according to the Polish energy-market regulator. For solar energy, the government plans to encourage smaller projects while limiting support to large plants. n

Construction of Myslino wind farm one step closer The company Energa has called a tender for the supply of parts for, and the construction of, the Myslino Wind Farm.

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The tender is a restricted procedure.
A total of four contractors have entered the tender to supply, assemble and startup 10 wind turbines for the Myslino Wind Farm in Goscino municipality in Zachodniopomorskie voivodship, which will have a total connected load of 20.5 MW. They are a consortium comprising Gamesa

Eolica and Gamesa Wind Poland and the companies RE​ power Systems, VestasPoland and Vensys Energy.
Furthermore, a total of 14 businesses have applied to take part in a tender to carry out electrical work within the framework of the project and nine contractors have entered a tender to perform the construction work. All the procedures will be based on negotiations and the main criterion for choosing the most attractive bids will be the lowest price. The investor wants to invite a maximum of five contractors to compete in each tenders and all the scheduled investments are to be carried out within 11 months of the day a contract is signed with the contractor. n

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Energy

EBRD provides loan for ‘first” gas-fired power plant The European Bank for Reconstruction and Development (EBRD) is supporting the modernisation of the Polish power sector with a long term senior loan of up to PLN 283 million for the construction of a new combined cycle gas turbine (CCGT) power plant in Stalowa Wola, a city of around 65.000 inhabitants in southeast Poland. The new plant will have a capacity of 449 MWe/240 MWt generated by the country’s first large scale gas fired power plant. The new facility will replace the old coal-fired power units at the Stalowa Wola plant and is expected to lead to a carbon emissions reduction by at least 950.000 tonnes of CO2 per annum. The project company is owned, in equal shares, by Tauron Wytwarzanie S.A. and PGNiG Energia S.A., subsidiaries of the leading Polish power utility Tauron and the country’s biggest gas company PGNiG, respectively (together the Sponsors). The project is part of an ambitious Polish energy investment programme driven by the need to decommission and replace obsolete, inefficient and ecologically harmful power units from the 1950s and 1960s. The new gas-fired

plant will meet all EU and local environmental standards. The EBRD funding of PLN 566 million was equally divided into a loan of up to PLN 283 million to be taken on its own books. PLN 283 million was syndicated to Pekao S.A.. The European Investment Bank (EIB) will provide a parallel loan of up to PLN 566 million. The total project costs are estimated at around PLN 1.56 billion, with the remaining funding to be provided by the Sponsors. Nandita Parshad, Director, Power and Energy Utilities said: “The Bank is proud to invest into the modernisation of Poland’s power sector with the aim of strengthening efficiency and lowering emissions. Replacement of old coal-fired generation units with a modern gas-fired unit allows an increase of combustion cycle efficiency, as well as significantly lowers CO2 and NOx emissions. In addition the project will reduce the Polish dependency on the coal-based power generation.” The EBRD has been one of the most active investors in Poland in almost all sector of economy since 1991. To-date the Bank has invested EUR 6.046 billion of its own

funds in Poland for the total projects’ value of EUR 31.313 billion. The energy sector is one of the Bank’s top priorities in Poland given the climate change challenges that the country is facing on its way to diversification of its energy mix and reduction of the CO2 emissions.. n

RWE adds 39MW of Polish wind RWE Innogy, the renewables unit of German utility RWE, has expanded its Polish onshore wind capacity to 192MW after grid-connecting Nowy Staw, its sixth wind farm in Poland. REpower installed 19 of its turbines at the 39MW Nowy Staw, which cost more than €60m to build, RWE said. The company is slated to erect three more turbines at the wind farm, close to Gdansk, to bring its total capacity to 45MW. RWE Innogy’s six Polish wind farms are spread over three regions: Gdansk, Western Pomerania and the northeast of Poland. n

CONFERENCE OF THE WINDPOWER ENGINEERING COMMUNITY WITH EXHIBITION JUNE 18–19, 2013 / BERLIN, GERMANY An event organized by VDI Wissensforum GmbH

Over 80 renown speakers from 20 countries will speak on the following topics:

OFFICAL PARTNERS

– Innovative Gearbox Design: Today and Tomorrow – Increasing Reliability of Main Shaft Bearings – Future Rotor Blade Designs – Effective Reliability and Failure Analysis of Wind Turbines – Innovative Technology for Vibration Control & Damping

VDI THE ASSOCIATION OF GERMAN ENGINEERS

Panel discussion: “What can manufactures do to reduce the cost of energy?”

– Testing and Simulations – New Approaches to realistic Load Assumptions – Offshore Certification and Risk Analysis – New Concepts for a Sustainable Maintenance – International Emerging Markets for Wind Power

Panel discussion: “Which further expansion of wind energy in Europe is desirable?”

WFEO WORLD FEDERATION OF ENGINEERING ORGANZIATIONS

FEANI EUROPEAN FEDERATION OF NATIONAL ENGINEERING ASSOCIATIONS

SUPPORTING ASSOCIATIONS

www.cowec.de

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2013 May


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Energy RWE rules out big Poland acquisition without a partner German utility RWE said it would not make a bid for Polish state power company Energa unless it finds a partner to share the cost.

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RWE, Germany’s second-biggest utility group, is focusing for now on divestments to lower its debt, said Filip Thon, the chief executive of its Polish business RWE Polska. RWE’s main asset in Poland is energy distribution company RWE Stoen Operator. In the past it showed an interest in buying another state-controlled utility, Enea, in a privatization, but plans for the sell-off came to nothing. Poland plans this year to float a minority stake in Energa, the smallest of its four major power companies, and will look for a large or strategic investor in the company. Thon told Reuters that RWE did not have the money for large scale investments or acquisitions. “We have to divest in different markets, apart from Poland, to get the leverage factor under control,” he said. “If we wanted to invest into larger assets, we would have to do it with a partner in an intelligent way. We have to concentrate on asset-light projects with attractive returns and short pay-back periods.” RWE invested almost 5 billion zlotys in Poland in the decade to 2012. Its focus is on renewable energy, with Poland trying to increase the share of renewables in its energy mix to at least 15 percent by 2020 to meet European Union regulations. RWE’s plan is to spend 500 million euros to build Polish wind farms with installed capacity of 300 megawatts by 2015. It expects to have installed 200 MW of that by the end of 2013. In recent months, a number of coalfuel power plant projects in Poland have been frozen or scrapped because of falling energy prices, which make the ventures untenable. “Energy wholesale prices in Poland are among the lowest in the central and eastern European countries. As long as there is no clear legislation concerning CO2 (carbon dioxide emissions) and renewables I do not see a reason for a significant price change,” Thon added. Source: Reuters

Poland working on strategies for first nuclear plant Poland has made “significant progress” in its programme for introducing nuclear power and is developing strategies for procuring the first plant. Experts from the International Atomic Energy Agency (IAEA) reviewed the country’s nuclear infrastructure development and noted good practices and made recommendations for further actions. In a preliminary report, the Integrated Regulatory Review Service (IRRS) team said Poland’s nuclear regulator has a “clear commitment to safety, high level of transparency and good recognition of challenges ahead” in its efforts towards developing nuclear power.

Three potential sites are under consideration for the planned nuclear power plant: Choczewo, Gaski and Zarnowiec. PGE, the chosen operator and owner, plans to install around 3,000MWe of nuclear capacity, with its first unit expected to be online by 2025. Robert Lewis, Team Leader and a Senior Executive in the US Nuclear Regulatory Commission said: “Poland’s regulatory framework and the work of PAA (Poland’s National Atomic Agency) give high confidence of strong radiation protection for the Polish people. Further, there has been significant progress in the development of Poland’s regulatory framework in preparation for the challenge of regulating nuclear power.” n

3Legs Resources outlines plans for Baltic basin in 2013 3Legs Resources is preparing for further testing at the Lebien LE-2H horizontal well in northern Poland. Testing is expected to begin in the second half of May and it is intended that the well will be flow-tested for 30-60 days. In addition, preparations continue for a single-stage hydraulic fracture stimulation on the Strzeszewo LE1 well - the first of two hydraulic fracture stimulations planned for the site also on the company’s Baltic Basin concessions. The firm’s 2013 drilling programme, due to begin in the second half of 2013, involves sinking two further vertical wells, and it is intended that the wells will be completed with a similar DFIT and stimulation programme as on the Strzeszewo LE-1 well.

“We are very pleased that we will shortly be conducting a third phase of testing on the Ordovician horizon in the Lebien LE-2H well. We see this as an important further step in the ongoing appraisal of our western Baltic Basin concessions, which should provide a further indication of this well’s reservoir potential,” said chief executive Kamlesh Parmar. “The hydraulic frac stimulation of the Cambrian Alum shale at the Strzeszewo LE-1 well will also yield significant additional data on the potential of the high-graded area within our western Baltic Basin concessions, and will advance our understanding of the potential of the Cambrian Alum shale on our acreage. We look forward to analysing the results of these two operations and updating the market in due course.” n

San Leon Energy and Halliburton prepare to start fracking in Poland

of the assets in Poland’s carboniferous unconventional gas play. “This is the first operation to be carried out under our new agreement with Halliburton. “The carboniferous unconventional play contains significant potential for our shareholders and the next few weeks will increase our understanding of the play.” “Halliburton’s commitment of technical expertise and funding to this project underlines the potential for Siciny and we look forward to updating our shareholders at the appropriate time.” n

San Leon Energy told investors that testing and fracking operations got underway in late April at the Siciny-2 well in Poland. The actual fracking is expected to take place in June. Last year the Siciny-2 well was drilled to a depth of 3,520 metres and it encountered over 250 metres of tight gas sands. In March, the company agreed to a partnership with American fracking specialist Halliburton to jointly assess the potential

May 2013


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Taxes

New U.S.-Poland Treaty Signed – The End of an Era? By Philip D. Morrison, Esq. Deloitte Tax LLP, Washington, D.C.

On Ash Wednesday, February 13, Pope Benedict XVI celebrated his last mass as Pope and a new income tax treaty between the United States and Poland was signed. Both events were near-final acts in closing an era, one a Papacy, the other the era of relatively easy treaty shopping into the United States. For the Roman Catholic Church, a single Papacy is but a blip in a two-millennia history. For U.S. tax treaties, with a history of less than 100 years, the end of treaty shopping is a big deal. Treaty shopping into the United States got its first meaningful roadblock with the entry into force in late 1993 of the 1992 U.S.-Netherlands Income Tax Treaty. The Netherlands’ favorable domestic tax regime, together with its large network of tax treaties, allowed the 1948 U.S.Netherlands Income Tax Treaty to operate as, essentially, the U.S.’s treaty with the world. While the Netherlands remains today a significant source of inward investment into the United States, it was perceived, prior to the entry into force of the 1992 U.S.-Netherlands treaty, that some of the heavy U.S.-bound investment from the Netherlands was due to the ability of non-Netherlands investors to use the Netherlands as a conduit allowing access to favorable U.S. treaty benefits. Among existing U.S. income tax treaties, it is believed that the present Dutch treaty has been notable in its susceptibility to abuse. The combination of Dutch internal law and the Dutch treaty network, including the present treaty, makes it possible in some cases for persons including residents of third countries to earn U.S. income relatively free of all tax, U.S., Dutch, or otherwise. Dutch law in many cases exempts Dutch residents from tax on foreign income, including foreign income that bears very little tax. It was considered “abusive” for thirdcountry residents to use the U.S.Netherlands treaty to obtain benefits in part because U.S. residents could not obtain reciprocal benefits from the third countries. Since those countries’ residents could obtain favorable benefits via the U.S.-Netherlands treaty, there was no need for those countries to offer a similar

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reduction in withholding tax rates for U.S. investment inbound into such countries. This was true both for countries with no tax treaty with the United States as well as those with treaties that had higher rates on such income than the U.S.-Netherlands treaty did. The entry into force of the 1992 U.S.Netherlands treaty with its more complex limitations did not end treaty shopping into the United States, however. It just moved it to other jurisdictions. First, treaty shopping moved to Ireland, Luxembourg, or Switzerland. In the mid-to-late 1990s, however, new treaties between the United States and those countries were negotiated. The jurisdictions of choice for the past decade have been Iceland, Hungary, and Poland. Each had a treaty with the United States offering favorably low rates on dividends and exemption for interest and royalties. And each had an adequately inviting domestic tax system providing low rates. Most importantly, a nonresident could set up a resident conduit company through which it could invest in the United States and still obtain treaty benefits. The Iceland “window” was the first to close. A new U.S.-Iceland treaty with a comprehensive Limitation-On-Benefits provision entered into force in 2008. In 2010 a new treaty with Hungary was signed, threatening to close the Hungary treaty shopping route. Oddly, however, while the treaty was quickly ratified in Hungary, some have speculated that the U.S. Treasury appeared to acquiesce in “slow walking” the new treaty through the U.S. ratification process. While a hearing before the Senate Foreign Relations Committee was finally held in the summer of 2011 and the treaty was voted out of committee shortly thereafter, the treaty still has not received a vote in the full Senate. Some have commented that it appeared as though an arrangement had been made between the United States and Hungary negotiators that the Hungary window would not be closed until the Polish window was shut simultaneously. The key article in the pending U.S.Poland Income Tax Treaty includes several “tests” to reduce its potential for abuse, including a headquarters company test, a publicly-traded company test, and an active trade or business test.2

Publicly traded companies: The publicly-traded test in the pending treaty is identical to the publicly-traded test in the pending U.S.-Hungary treaty. The test requires that either: (1) the company’s country of residence be its primary place of management and control; or (2) certain economic activity zones be the location of the exchange on which its principal class of shares is primarily traded. To be a qualified person on the basis of place of primary trading of principal class of shares, a Polish resident company’s shares would need to be primarily traded on a recognized stock exchange located within the European, and a U.S. resident company’s shares would need to be primarily traded on a stock exchange located in a country that is a party to the North American Free Trade Agreement. Subsidiaries of public companies: As with the pending U.S.-Hungary treaty, to be a qualified person on the basis of direct or indirect ownership of a company’s shares by U.S. or Polish publicly traded companies, ownership by such companies must add up to 50% or more of the aggregate vote and value of the shares and at least 50% of any disproportionate class of shares. In the case of indirect ownership, each intermediate owner must be a resident of either Poland or the United States.4 Headquarters company test: The headquarters company test in the pending treaty is identical to the headquarters company test in the pending U.S.-Hungary treaty. The headquarters company test provides that a headquarters company for a multinational corporate group that is resident in either Poland or the United States may qualify for benefits under the pending treaty if it and its corporate group meet certain specified requirements. So, what do treaty shoppers do now that the last real “windows” into the United States are likely to close within a year? For persons resident outside those jurisdictions, it appears treaty shopping may be, for all practical purposes, impossible. We may actually be witness to the end of an era, a successful conclusion of a 25-year effort to implement a tax treaty policy that, when it was embarked upon, few would have predicted would come to a successful conclusion in so “short” a time.

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FDI News

Speculation flies over LOT takeover Norwegian Air has confirmed that its chief executive Bjørn Kjos has attended a meeting with government authorities in Poland, but won’t say what was on their agenda. A Polish newspaper, however, reports that the meeting involved Norwegian’s possible takeover of the country’s national airline LOT. “I can confirm that Bjørn has been at a meeting with authorities in Poland,” Norwegian’s communications director Anne-Sissel Skånvik told newspaper Dagens Næringsliv (DN) on the last day of April. “I can’t say anything about the subject of their talks.” Polish newspaper Rzeczpospolita, however, has reported that Kjos was asked to either take over or buy into state-owned LOT Polish Airlines, which hasn’t turned a profit for five years. The government reportedly is keen to privatize LOT, which is part of the large global frequent flyer program Star Alliance (along with Norwegian’s arch rival SAS and airlines including Lufthansa and United) but has serious economic problems. Kjos reportedly asked for detailed information on the company before he and his colleagues might formulate a bid for LOT, which has a fleet of 33 short-haul and seven long-haul aircraft including one of the first Boeing 787 Dreamliners that Norwegian is also acquiring for its new intercontinental expansion. LOT clearly was aware that Norwegian Air, which recently reported strong profits and has seen its share price soar, may have the financial muscle and interest to take over the troubled Polish carrier. The two airlines may also be a good strategic fit, since Norwegian has long been active in the Polish market and

now is keen to expand with long-haul routes, not just routes within Europe. LOT also has two of the Dreamliners that Kjos wants to use on long-haul routes and has six more on order. Kjos, who’s in an expansion mode, has been looking for more Dreamliners himself, and also may be able to acquire LOT at a relatively low price given its financial turbulence. Legislation can clear the way
A spokesman in Poland’s finance ministry told DN that the Polish prime minister has proposed a new law that would allow the state to own less than 51 percent of LOT and eventually sell off the state’s holdings

completely. The proposal is now under consideration in the Polish parliament. Kjos declined immediate comment and the Polish spokesman would confirm only that the privatization process for LOT was underway “and we have contact with possible private investors. But we won’t say anything about our talks underway.” Analyst Kenneth Sivertsen at Arctic Securities noted that Norwegian Air has bought other airlines earlier, including FlyNordic in Sweden, and that it once had a base in Poland. It was shut down, however, because Norwegian lacked an operation large enough to make it profitable. n

Netia S.A. launches first 100G network in Poland

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Netia, Poland’s largest alternative provider of fixed-line telecommunications services, has become the country’s first operator to introduce 100G (gigabit per second) wavelengths in its optical fiber network. Based on Nokia Siemens Networks’ optical transport technology, the upgraded network provides a 40fold increase in capacity. The solution was integrated seamlessly into Netia S.A.’s existing fiber optical infrastructure provided by a third party vendor, thereby protecting its investment in its infrastructure.

Increasing use of smartphones and other bandwidth intensive devices were putting a strain on Netia’s existing fiber network. Instead of replacing the infrastructure, Nokia Siemens Networks connected the third party network to its multivendor 100 GbE (Gigabit Ethernet) transponder, which was integrated into the existing network management systems. This increased the capacity of the existing optical network from 2.5G to 100G per channel. “With this upgrade, we can transmit over a single fiber the capacity required for more than 800,000 broadband

service customers to be connected simultaneously to the Internet,” said Marek Owczarski, technology development manager, Netia S.A. “Netia S.A. not only protected its investment in the existing infrastructure, but also significantly expanded the capacity of the network for a fraction of the cost of having swapped out the existing infrastructure,” said Herbert Merz, head of Optical Networks, Nokia Siemens Networks. “The upgrade to ultra-fast data transmission allows Netia S.A. to offer superior mobile broadband services.” n

May 2013


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FDI News

Palmer Capital to shop in Poland One of those investors attracted by Poland’s newfound quality as a bustling island of real estate opportunities in a becalmed sea is Palmer Capital. 

The UK-based real estate fund manager, which beefed up its continental European business in 2012 by acquiring Middle Europe Investments, a struggling Dutch real estate fund manager with €232m of assets under management in Central and Eastern Europe, is planning a new fund that will target Polish retail properties in the country’s regional cities. 

“We are trying to play on our regional knowledge and coverage, and what we like are the dominant shopping centres and retail property investments in Poland’s regional centres – we’re not trying to buy class-A properties in Warsaw,” says Ben Maudling, the regional managing director of Palmer Capital and a longtime resident of the Czech Republic. 

The targeted investors for the planned fund are German institutions, which prefer lower risk property investments, such as well-located regional retail properties that can be purchased with debt financing. “There’s less investment risk in Czech and Poland compared to somewhere like Ukraine, and we are

looking to offer an income return of 8% net of tax,” says Maudling. 

Palmer Capital has had an instant impact on the funds it acquired as part of that deal in 2012. The Emerging Europe Property Fund for example, which has six Czech properties and 11 Slovak ones, mostly class-B and class-C office buildings, was the best performing real estate fund on the Amsterdam NYSE Euronext exchange (and the fourth-best performer among NYSE Euronext funds of all kinds) in 2012, with its share price rising 42% from €6.70 to €10.00 during the calendar year. 

Maudling says they undertook a number of asset management initiatives to improve the performance of the property funds they took over from Middle Europe Investments last year. Many of these such as cost cutting were not rocket science and led to quick improvements in portfolio performance. “The current share price of our listed Palmer Capital Emerging Europe Fund still, however, reflects a 50% discount on NAV [net asset value]. We hope to further reduce this by continued restructuring including renegotiating leases and rents, moving tenancies and improving the financing of the portfolio, which includes

bank debt and mezzanine financing,” says Maudling. 

Palmer is in the process of “pruning” the fund’s portfolio – it recently sold one building in the Czech town of Zlin and plans to sell another two this year, something that testifies to the relatively high liquidity that exists in the Czech market, a stark contrast to the moribund markets further west. 

That liquidity is also enabling Palmer to entirely liquidate one non-listed fund it inherited from the acquisition, which holds 60 class-B and class-C properties in the Czech Republic that were owned by the former telecommunications monopoly Czech Telecom. “We are seeing good liquidity in the Czech Republic for sales of these types of buildings worth €1m to €5m,” says Maudling. “We’ve made a strong effort to access the local investor market and in the last 6 months we have sold five office buildings. There is a good level of interest in other properties we have.” 

Maudling says Palmer Capital would like to double its assets under management in the region from the current €300m. “We want to expand our Central European fund management business. At the moment, for us, Poland and Czech Republic offer better investment opportunities than Hungary.” Source: Business New Europe

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FDI News German Greiffenberger outsources to Polish Lublin SEZ German motors and gearboxes manufacturer ABM Greiffenberger is leasing 8,000 sq.m. in Wikana’s Biznes Park in Lublin Special Economic Zone, including warehouse and office space and 6,900 sq.m. for outsourcing production. ABM Greiffenberger said it will create around 120 jobs in Poland, integrating services previously bought-in. The new plant will take over production and assembly currently done at Plauen in the east German state of Saxony near the northwestern Czech border. CEO Robert Lackermeier said Lublin is an attractive location due to its development potential, qualified staff and improving transport infrastructure. Lublin will integrate into ABN Greiffenberger’s global supply chain and strengthen its positioning as supplier of drive technology, he added. 
Construction of the 28,000 sq.m. Wikana Biznes Park logistics and office centre, based on sustainable standards, started last year and it is scheduled to open at end-2013. The Lublin Special Economic Zone, along with the city’s research and scientific capacity and location near a new airport in Swidnik, is driving inward investment, said Industrial department expert Marek Skrzydlak of Cushman & Wakefield, leasing agent for Wikana Biznes Park. Wikana Invest is a unit of Wikana Capital, one of the largest privately held developers in south-eastern Poland. ABM Greiffenberger is part of listed family-led industrial holding Greiffenberger.  n

French Somfy to invest 120 million pln and hire 800

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The French manufacturer of specialized motors and control systems for retractable awnings plans to invest PLN 120 million in the Krakowska Special Economic Zone. The company bought some 8.5 ha of land in Niepołomice, near Kraków, where Somfy plans to build a new manufacturing centre, as well as a logistics centre. With this investment, the company expects to create approximately 800 new positions. The investment is divided in to two phases, first the construction of the manufacturing centre - the other - to create a logistics centre.  n

Turkey, Poland race for Volkswagen bid

Volkswagen, which plans to make a factory investment in Europe to produce a new light commercial vehicle, remains undecided between Turkey and Poland, according to Turkish Economy Minister Zafer Çağlayan. 

Under government pressure to make an investment plan, Volkswagen will announce its final decision regarding its latest investment in the near future. Çağlayan said Volkswagen was considering Turkey for the location of its investment for the new product. 

“Currently, they are trying to decide between Poland and Turkey. They remain undecided. They put irrelevant logistic costs on us in the figures they were given. Some groups in Europe are trying to block it, but it’s beyond dispute that we’re ahead of them. We expect the results in May,” Çağlayan

said. 

“I explained to them why they were weak in the Middle East, and how we would contribute to them. Now they are considering Turkey for the new light commercial vehicle they will produce. We will see what happens during the month,” Çağlayan added. 

Volkswagen, which decided to increase its investments after the high profits it achieved in 2012, added 10 new factories to its investment plan following their decision to invest 50.2 billion euros. 

Volkswagen CEO Martin Winterkorn announced that seven of these 10 plants would be set up in China, and one would be established in the U.S. for SUV production. However, he refrained from giving a location for the remaining two, which led to some assumptions that it would be Turkey or Poland.  n

Poland and Spain top FDI list Poland and Spain are the only countries which experienced positive growth in Foreign Direct Investments in 2012, according to Financial Times’ “The FDI Report 2013”. The amount of FDI in Europe has decreased by over 20%, with Germany as the country where the decrease was the largest (-47%). Only two European states experienced positive growth in FDI, namely Poland and Spain, even though the amount of FDI is still smaller than it was before the recession.

In 2012, the number of projects in Poland grew by 4.87%, and their share in the capital investments market grew to 6.54%. The country has also enlarged its share in total new jobs created in the EU to 12.7%, which proves Poland as an attractive destination for large projects, both in industry and services. According to the FT report, the countries with positive FDI growth included also other countries such as Chile, Indonesia and Oman.  n

May 2013


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FDI News

35 Polish business leaders visit Dubai World Central A delegation of 35 business leaders from Poland recently visited Dubai World Central, the world’s first purpose-built aerotropolis, to learn about the state-ofthe-art infrastructure and discuss investment opportunities in the aviation, logistics, trade and tourism sectors. Headed by PAIZ, the delegation was in Dubai for the third Annual Investment Meeting (AIM) organized by the UAE Ministry of Economy in cooperation with Strategic Marketing and Exhibitions. There are more than 120 aviation-related companies in Poland with annual revenues of €800 million, the majority

of which are small and medium-sized enterprises (SMEs).

 Bozena Czaja, Member of the Management Board for Regional Development, PAIiIZ and member of the delegation said: “We are impressed with the development and sophistication of Dubai World Central as DWC offers a huge opportunity for Polish investors. We have therefore invited DWC officials to visit Poland and present the wide-ranging business and investment opportunities that the project offers.”

Rashed Bu Qara’a, Chief Operating Officer, Dubai Aviation City Corporation, said: “The aviation industry in Poland dates back more than 80 years, and we are keen to cooperate

AIM: Polish businesses to target UAE and Gulf markets A Polish delegation of more than 20 firms attended the AIM Annual Investment Meeting in Dubai during the first days of May. Led by PAIZ with its mandate to promote Eastern Poland trade and investment opportunties, Bozena Czaja, Deputy President of the Polish Information and Foreign Investment Agency said: “We are a latecomer to the UAE but it is never too late with such a growing market.” Trade between Poland and the UAE has increased more than 13 per cent, from $400 million in 2011 to $453 million in 2012. She

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regretted the poor exposure of the Polish businesses in the UAE and the low volume of bilateral trade between the two countries despite the rich resources in Poland. Last year, Poland imported goods worth $88 million from the UAE while it exported products worth $365 million, PAlZ stated. Key exports included metallurgic, ceramic and chemical products, machines and mechanical devices, and food products. The UAE is not only a potential market for our exports and investments but it is our gateway for many markets, she said.

with them to build on this long tradition of aviation excellence.”

 The Polish delegation also included Agnieszka TukaszewskaWojnarowska, Director of the Regional Development Department, PAIZ; Bozena Czaja, Member of the Management Board for Regional Development, PAIZ; Professor Tadeusz Truskolaski, Mayor of Bialystok; Jarostaw Zygmunt Dworzanski, Marshal of Podlaskie Voivodship; Tomasz Pawtowski, prezes Zarzadu, Condohotels Management; Kamil Sapeta, Business Development Manager, Grupa Anders Hotels and Tourism; and Karolina Kaminska-Maslarz from the City of Kielce.  n

Czaja added that the president of Poland is planning to visit the UAE during his tour to the region by the end of this year with the aim of taking forward the cooperation process with the emirates. Nina Kowalewska, CEO of New Communications Company, said that they are launching an editorial driven advertising campaign representing the government of Poland, to promote its economy, focusing on different business sector. The UAE could be a major customer for food products, luxury yachts manufactured in Poland, in addition to other industries including cars, she said. n

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FDI News Biomaterial innovation wins gold medal Gold medal of the sixteenth Moscow Salon of Inventions and Innovation Technologies “ARCHIMEDES - 2013” won by scientists from the Department of Chemistry, Technical University of Gdańsk. The jury appreciated a new generation of biomaterial that can be used in medicine, cosmetology and veterinary medicine and which was developed by a team lead by mgr. Eng. Gregory Mustard. The innovative biomaterial will be used mainly as a dressing for difficult to heal skin wounds, especially those infected with Staphylococcus aureus. This material distinguishes oneself with biopolymer antioxidant properties, high absorbency and provides also a moist environment for wound healing. It also has a high capacity to absorb odors and due to its possession of chitosan, it works quicker than other products in inhibiting the bleeding. Dressings are very absorbent - 1 g involves about 50 g of wounds exudate. The unit cost of raw material (12x12x04cm) is estimated to be approximately USD 0.04. Manufacturing of these materials is protected by a patent and in the near future is expected to expand in internationally.  n

Consortium wins Poland rail renovation

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Polish rail operator PKP Polskie Linie Kolejowe is to modernise the KoluszkiCzestochowa section of railway line No. 1. The work will be carried out by a consortium of companies including Pol-Aqua, Dragados, Vias y Construcciones and Electren, at a cost of PLN 483.3 million. The project will involve replacing track along a section of more than 158km long, changing 83km of overhead contact lines and revamping 30 bridges, 15 culverts, five viaducts and a retaining wall. In addition, 43 platforms and 24 level crossings will be renovated, and 142 crossovers will be changed. The work will take two years to complete. The investment will reduce travel time along the Koluszki-Czestochowa section by almost 30 minutes. Pol-Aqua, the consortium leader, will only have a 1% share of the project. Earlier the company announced that its share would be in the region of 25-30%.  n

Poland won’t cut Pension Funds

Poland has no plans to scrap its privately managed pension funds as it reviews a system that’s weighing on the state budget, Finance Minist er Jacek Rostowski said. “The intellectual system that has underpinned the pension funds has turned into rubble,” Rostowski told TOK FM radio in an interview. “We need to find a way to lead Poland out of this trap.” The state may gradually shift pensionfund assets to the social-security system for people due to retire within at least 10 years, Rzeczpospolita reported today, citing recommendations by the Labor Ministry. It may also scrap fees the funds charge for contributions, the newspaper said. The proposals are among “versions” being analyzed, Janusz Sejmej, the ministry’s spokesman, said. The review of the privately managed pension system comes as Poland’s economy battles its steepest slowdown in 12 years. Contributions to the plan have reduced funding for the pay-as-you-go state system that pays current retirees, forcing the government to cover the shortfall through bond sales. The government has pledged to narrow its budget deficit and is trying to keep public debt below 55 percent of economic output, a level that would trigger austerity measures.

Mandatory Contributions The 14 funds, which are run by companies including ING Groep NV and Aviva Plc, have grown to $85.4 billion in assets

since they were set up in 1999. The mandatory contributions they receive are then invested in stocks, cash and government bonds. Pension funds held 114.6 billion zloty of government securities at the end of February, or 21 percent of the total. Two years ago, Hungary took over $13 billion in privately managed pension assets to meet EU-imposed deficit goals and cut debt by canceling government bonds held by funds. The Polish government in 2011 reduced cash transfers to funds to 2.3 percent of a worker’s pay from 7.3 percent to help narrow the budget gap. It also pledged to gradually increase the level of contributions to 3.5 percent in 2017. Measures similar to those adopted two years ago “would boost short-term fiscal revenues, while exposing the sovereign to larger future contingent liabilities,” Jaime Reusche, an analyst at Moody’s Investors Service, said in a report. The changes would be “neutral for the sovereign’s rating.” Moody’s rates Poland A2, the sixthhighest investment grade. The government will announce its decisions about the pension system by the end of June based on changes proposed by the Labor Ministry, Prime Minister Donald Tusk said in April. “We’re still far from final proposals and the talks are still ongoing,” Labor Ministry spokesman Sejmej said. “Our draft document should be ready at the beginning of May.”  n Source: Bloomberg

May 2013


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FDI News

Poland ready to deepen economic ties with Taiwan Poland welcomes more investment from Taiwanese businesses and is ready to deepen economic relations with Taiwan, the Polish envoy to Taiwan said at a reception in Taipei held in celebration of Poland’s National Day.

Marek Wejtko, chief representative of the Warsaw Trade Office in Taipei, said during an address that he is optimistic that the double taxation between Poland and Taiwan could be lifted this year.

“We also hope to get the final approval for exports of Polish pork to Taiwan very soon,” Wejtko said at the reception attended by government officials and foreign envoys in

Taiwan.

In addition to trade, Wejtko said student and scientist exchanges between Poland and Taiwan are also becoming more fruitful.

 Today, around 700 Taiwanese students study in Poland and there are also many Polish students enrolled in programs in Taiwan, he added.

Deputy Foreign Minister Simon Ko, who attended the reception, also expressed hope that Poland and Taiwan can sign an agreement on double taxation avoidance “as soon as possible” so as to expand bilateral trade and investment.

He said trade between Taiwan and Poland reached US$840 million in 2012.  n

KTP

mainly related to the production of power generators as well as cogeneration and trigeneration generators. The company is focused on open cooperation with representatives of Kraków universities. In the first quarter of this year Krakow Technology Park approved 9 expansion plans, for companies such as: Valeo Autosystemy Sp. z o.o., Integer.pl S.A. and Motorola Solutions Systems Polska Sp. z o.o. These companies have committed to invest at least PLN 220 million and to increase employment by at least 675 new workplaces.  n

At the end of the first quarter of 2013, the board of the Krakow Technology Park approved another investment in the Kraków Special Economic Zone. Two companies received authorisations: Nasza Tradycja Sp. z o.o. and Pex-Pool Plus Technologie sp. z o.o. Nasza Tradycja intends to build a modern bakery plant in the Tarnów subzone. Pex-Pool Plus Technologie Sp. z o.o. will create an R&D centre in the building of the Business and Innovation Centre Copernicus, located in the subzone in Kraków downtown. The centre will be

PAIZ touts its clout PAIZ has closed so far this year 16 investment projects worth EUR 479 million. New investments will create 4,529 new workplaces in the near future, mainly in the BPO, R & D, automotive and electronics sectors. Currently, the Agency is working on 153 investment projects with a total value of EUR 3542.42 million, which could create 29,054 jobs. The United States leads on the list of the largest investors (45 projects, EUR 538 million, 9,907 jobs). Subsequent positions are Germany (19 projects, EUR 484 million, 3,470 jobs), China (12 projects, EUR 244 million, 2,158 jobs), the UK (10 projects, EUR 25.7 million, 1,418 jobs), Switzerland (8) and India (6). Most popular industries are: BPO (38 projects, EUR 39.2 million, 9,228 jobs), automotive (22 projects, EUR 963 million, 6,925 jobs), R & D (15 projects), ICT (10 projects, EUR 265 million, 2,870 jobs), food (8 projects EUR 310.5 million, 1,280 jobs) and the machinery and packaging (7 projects each).  n

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FDI News

Poland expands its presence in Nigeria

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An official visit to Nigeria lead by Polish prime minister Donald Tusk gave an opportunity for Polish companies to establish new business relations with one of Africa’s leading countries. On April 18th, representatives of these companies shared their impressions with the media on talks with their Nigerian counterparts. The guests emphasized that the Nigerian side was well prepared for the meeting with the Polish delegation. “During prime minister Tusk’s meeting with president Jonatan, most Nigerian ministers responsible for economy were also present, including those coordinating such sectors as finance, oil or agriculture. They were perfectly aware of the strengths and weaknesses of our economy, and had their own ideas on what Poland should do in Nigeria”, said Sławomir Majman, the president of PAIZ. During the visit, PAIZ organized a Polish-Nigerian Economic Forum, which took place for the first time in history. “The forum was attended by nearly 190 businessmen and women, mostly top league”, Mr Majman remarked. ”Its aim was to share the basic knowledge on the real face of Polish economy, as well as to learn about the fast-growing Nigerian economy.” During the visit, an agreement was signed between the Navimor company and the state of Bayelsa, which is the richest state of Nigeria. We have been talking with our partner for half a year already. - If it wasn’t for this visit, we would probably need much more time to finish it - said Andrzej Olpiński, NAVIMOR company’s African markets CEO. The parties agreed upon a construction and equipment project of a maritime academy in Bayelsa, total value of EUR 100 mln. JAKUSZ company’s CEO said that the company has decided to provide the Nigerian Police a test sample of their product - a container for transporting explosives and terrorist explosive devices. Energoprojekt has been carrying out a project in Nigeria for 10 years already. “We have two completed power plant construction projects. The first one was completed in 2007, and another power plant construction project agreement was signed a year after. The plant will most probably be completed by June”, said Wojciech Grzesiuk, eastern markets CEO of Energoprojekt Katowice.

President of Nigeria Goodluck Jonathan

According to Mr Grzesiuk, only 7% of Nigeria’s population of 170 million has access to electricity. It is a huge challenge and opportunity, but also a difficult project due to such factors as lack of industrial infrastructure. “Together with the Cegielski company’s CEO, we’ve decided to repeat the Greek scenario, where in 5-6 years time Energoprojekt Katowice and Cegielski have designed, provided and built an oil power plant. Nigeria has rich crude oil resources, which makes an excellent fuel for Cegielski’s engines. We’ve decided to penetrate the market from this angle”, he stated. Ursus is a Polish brand already well known and appreciated In Nigeria. Mariusz Lewandowski, Ursus’s executive commissioner for PR admitted that the tractors exported to Nigeria are older types which

in Europe are no longer in use, but they are very durable and simple in use. High quality and competitiveness of Polish products is well known to Nigerians. Those advantages have been frequently emphasized by the Nigerian side during the talks with Polish companies. Jakusz’s CEO believes that the company does not have much competition on the world market, nor do Chinese products pose a threat. “The Nigerians are aware that Chinese products are very cheap, but they don’t trust their quality.” Guests also shared their specific experiences with the Nigerian market. “Time flows differently in Africa. You have to change your way of thinking and adjust to the local conditions”, said Andrzej Olpiński, who has 30-years experience in dealing with African partners. n

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FDI News

First plant in Kamienna Góra Special Economic Zone Aerosol International, a company owned by MAXIM Group, a European manufacturer of cosmetics, will begin construction of a modern plant for the production of packaging for aerosols. The location will be the Zgorzelec subzone of Kamienna Góra Special Economic Zone. The project will be built on a 6 hectare plot. Aerosol will invest PLN 180 million and employ over 300 people. According to Iwona Krawczyk, CEO of Kamienna Góra SEZ the amount with regard to this investment will be, in fact, about 50% higher, and

as the project develops, far more workplaces will likely be created. The uniqueness of the project of Aerosol International is not only the use of innovative technologies for the production of packaging, but also to create in Zgorzelec a research and development center. Thanks to innovative technology, the company produces annually about 100 million seamless cans. It will meet the demand of the MAXIM group for packaging for cosmetics, which are sold in more than 40 countries around the world. This investment

New investment in Goleniów Industrial Park

group has offices in the United Kingdom, the Netherlands, and also one branch in Opole, employing a total of over 1,000 people. Its office in Opole has been operating since 2008 in the industrial district of Metalchem, close to the port on the River Oder. The company mainly supplies items such as plate girders, railings, staircases, and others that are used in the manufacture of towers and platforms. This year the company will build a new production hall with an area of 4 000 sqm and will employ about 135 people. The plant will be called a “green plant” that is environmentally friendly through the use of renewable energy sources (LED lighting, gas heat pump). The investment cost is estimated at PLN 20 million.

SmartGuy Group A/S, a Danish company representing e-commerce sector, announced this summer’s opening of large distribution center in Goleniów Industrial Park. In the first stage, by August, SmartGuy will invest PLN 30 million and create 150 jobs. SmartGuy Group is the European leader in online sales of fashionable clothing. The company sells about a thousand different brands to the majority of European countries through www.stylepit.com web site. It has offices and subsidiaries in Sweden, Norway, Germany, Great Britain, Russia, the Netherlands, Finland and now also in Poland. The decision to move storage from Denmark to Poland was made as a result of further development of the company. SmartGuy Group A/S, through the newly established Polish StylePit Poland Sp. z o.o., bought a warehouse and office building located in the Goleniów Industrial Park. The building - with a total floor area of 14,000 square meters - will be finished by July in accordance with the expectations of the new owner. The investor plans to expand the area by additional 10,000 sqm. In August, the company will start fulfilling orders from the warehouse in Goleniów. All other functions of warehouse in Poland will be operational by January 2014.

Manufacturer to invest 20 million in Opole HFG Poland bought an investment area in the district Metalchem, where it plans to build a new manufacturing plant later this year. Heerema Fabrication Group (HFG), headquartered in Zwijindrecht in the Netherlands, is a world leader in the design and implementation of oil and gas platforms for the “offshore” industry. The main clients of the company are the leading energy producers in the world. The

2013 May

Dr Schneider to expand Polish car parts plant Automotive interior parts supplier Dr Schneider Kunststoffwerke GmbH plans to expand its manufacturing plant in southwest Poland despite the continuing European car industry slowdown. The Kronach, Germany-based group intends to invest more than 20 million euros in a project to install a sophisticated new production line and a research and development center at the Radomierz plant. The additional production line will add new technology including thermal imaging cameras and an automatic quality control system. Dr Schneider’s latest Polish project, located in the Kamienna Góra special economic zone, has recently won formal investment approval from the authorities. Radomierz site produces a wide range of automotive components, among them innovative air vent ventilation systems for many of the leading car manufacturers. Customers

is the nucleus of a cluster, within which co-operation between large, small and medium-sized enterprises will trigger the transfer of modern technologies used in the production of cosmetic packaging.  n

include Daimler, BMW, Jaguar, Porsche, Ford, VW/Audi and General Motors. The plant currently employs around 700 directly with a further 200 working at another nearby site in Jelenia Góra. But expansion could in time raise the total workforce to around 1,200. The German supplier group needed to grow its Polish capacity to handle a steady flow of new business and to meet new manufacturing challenges it is taking on. To date, Dr Schneider, which has had 85 years of plastics molding experience, has invested in the region of 22 million euros in the Kamienna Góra SEZ. It originally launched the Radomierz facility in 2006.

DENSO to establish new company to produce automobile Instrument Clusters To strengthen its manufacturing footprint of instrument clusters in Europe, Japanese firm DENSO Corporation established a new company that makes instrument clusters in Myslowice, on April 5, 2013. DENSO’s investment in the new company will total 16.1 million Polish zloty and DENSO expects to employ approximately 70 people by the fiscal year ending March 31, 2016. The new company, DENSO Poland Sp.zo.o, will start producing instrument clusters in August 2013. Ownership is split 66.6 percent by DENSO PS Electronics Corporation, and 33.4 percent owned by DENSO International Europe B.V. The firm projects revenues in 2015 of more than 104 million pln and plans to hire about 70 people. DENSO produces instrument clusters for automobiles in eight countries and regions, and the company will further increase its production capability to meet the needs of customers. The President of Denso Poland is Kim Jung Ho (Executive director of DENSO PS Electronics Corporation). The new operations will take up about 4500 sm floor area.  n

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Poznań SITA Waste-to-Energy plant largest ever PPP SITA Polska has signed a 25 year contract to build and operate a 220,000 tonne per year waste to energy plant in Poznan. According to the company - a part of SUEZ Environnement - the contract is the largest ever Public Private Partnership (PPP) tender in Poland, with a construction cost estimated at some 725 million zloty. The project is being undertaken by SITA Green Energy, a joint venture which has been fully financed by SITA Polska and Maguerite Waste Polska, a subsidiary of the Marguerite Fund. The technology for the plant is being supplied by Hitachi Zosen Inova, while HOCHTIEF Poland will carry out the construction work. Power and heat produced at the facility will be sold to utility company Dalkia, with the City of Poznan set to benefit from the revenue generated. SITA said that the facility is expected to be commissioned in the second half of 2016, and will allow the city to meet the EU regulatory requirements for limiting the amount of municipal waste sent to landfill.

Warburg Pincus invests in Polish cable operator INEA Polish cable operator INEA SA says it has received a strategic investment from an affiliate of Warburg Pincus. The investment firm has committed additional funding for growth and consolidation, including planned roll out of fiber-to-the-home (FTTH) technology. 
The funding will be used to support a major expansion of INEA’s next generation access (NGA) network, providing tripleplay bundles and high-speed broadband access to homes and businesses across the region, as well as supporting consolidation of the sector.

Since its foundation in 1992, INEA has grown into the fourthlargest cable operator in Poland and claims

Bydgoszcz Neupack opens production facility in Bydgoszcz

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MMP Neupack is investing in a new production facility opened in the Bydgoszcz Industrial and Technological Park (BPTT). The opening ceremony was attended by Austrian ambassador in Poland, Dr

it is the leading triple-play operator in the Wielkopolska region. Passing 360,000 homes and serving 170,000 subscribers, INEA provides telecommunications services over its fully upgraded network, including HotSpots throughout Poznan and its own local TV channel. 
The FTTH roll out will extend fiberoptic broadband access to over 200,000 additional households and a significant number of businesses in Wielkopolska. Part of the investment will be devoted to funding Wielkopolska Sieć Szerokopasmowa, a partnership with the local government that will construct over 4,000 km of fiberoptic backbone and distribution network, putting 95% of Wielkopolskie households within a 4-km radius from the closest distribution node. Once completed, INEA says its network will be the most advanced in Poland, providing high-speed broadband access to over 500,000 homes across the entire Wielkopolska region.

In addition, the investment by Warburg Pincus will support INEA’s ability to consolidate the highly fragmented local cable market.

Janusz Kosinski, president of the

management board and co-founder, said, “Since we engaged in the project to construct a NGA network we have been looking for a partner who would allow us to complete this project on as large a scale as possible. The involvement of Warburg Pincus will help ensure the success of this project.”

Warburg Pincus has significant experience as an investor in the cable industry, having formed Ziggo, the largest cable company in the Netherlands, through the merger of three smaller regional cable companies, Multikabel, Casema, and @ Home. Warburg Pincus has also invested in cable operators in several Central and Eastern European markets.

Paul Best, a Warburg Pincus Managing Director, commented, “The Polish TV and broadband markets benefit from long-term structural growth and cable has a significant advantage over other technologies. We were attracted to INEA due to its strong market position and the potential for further growth and industry consolidation.”

The transaction is believed to be the largest private equity investment in Poland this year.  n

Herbert Krauss. Rafał Bruski, mayor of Bydgoszcz, expressed his satisfaction with Neupack’s decision to invest in Bydgoszcz again. Neupack Polska Sp. z o.o. belongs to Vienna-based Mayr-Melnhof international group. The Mayr-Melnhof Group is the world-leader in coated recycled cartonboard with a growing position in virgin fiber based board and Europe’s leading

manufacturer of folding cartons. The MM group provides employment to over 8,000 people in 34 facilities worldwide, with total sales of EUR 1.5 billion. In Poland, the MM group operates two facilities in Bydgoszcz and one in Józefów, which have been merged into a single company named MMP Neupack Polska, as of September 2010. The company is one of he leaders in producing printed folding cartons in Poland.  n

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Gdańsk Gdańsk promotion in Paris The city of Gdansk attended the annual MEEDEX International business fair in Paris to promote both the region and Poland overall as a destination for tourists.The Poland Convention Bureau (PCB) organized the road show under the theme - “Polska. Move your imagination”. PCB and its partners presented Polish meeting destinations to French industry professionals.

Other Polish participants included the Warsaw Convention Bureau, ICE Krakow and Polish DMCs (Destination Management Company), as well as InterCrac and DMC Poland. The goal of Meedex was not only to deliver the most important information about cities, regions and its conference facilities but first of all to “move the imagination” of French guests and encourage them to visit Poland. About 100 guests interested in organizing events in Poland took part in the meetings, with strong interest

Łódź Lódź Economic Zone to revitalize historic factory at cost of 18 million zł


City Investment News in the Gdansk region. At the conclusion, Gdansk Convention Bureau gave out lottery prizes, including the acclaimed firewater Goldwasser and the book “Gdansk according to Lech Walesa”.

subsea electrical voltage cables, to be used by offshore wind farms and offshore oil and gas exploration. Units with a length of 95 meters will be able to take on board more than 4200 tons of cables. They will be supported by a 60-person crew.

“Ships 500 million zł contract for shipyard
 will meet the highest standards of environStocznia Remontowa Shipbuilding SA w mental protection and safety of navigation Gdańsku has signed a contract worth 500 (...), and sailing under the most renowned million zł for the construction of specialized Norwegian flag”, says Wojtkiewicz. They vessels for the installation and maintenance will be equipped with the latest navigation of submarine cables. The contract is with a systems, diesel-electric propulsion system Norwegian fleet operator serving the off- and systems for laying down deep submashore industry. The shipyard now has a full rine cable connections.

The design of the order-book through the end of 2014. 

”The ships and part of the technical documentaexecution of this contract is not only impor- tion shall be made by the Norwegian Vard tant for Remontowa Shipbuilding SA, but Design office and documentation of work also for the whole of the shipbuilding in- performed by Remontowa Marine Design & dustry in Poland, because it will be the most Consulting sp. z o.o. technologically advanced vessels that were 
The shipyard recorded revenues for ever built in Polish shipyards - says shipyard 2012 of more than 500 million zł, and in CEO Andrzej Wojtkiewicz. The units will be 2013 it is planned to exceed 800 million zł. built entirely in Gdansk.

Ships will be used It is the only shipyard in Poland constructfor stacking, lifting and maintenance of ing fully-equipped ships.  n

people, and more than 1,400 square meters of office space for rent. Initially, it was estimated that the investment would cost 16 million zł, but now is more than 18 million zł. The Zone is in talks with potential tenants who may also be potential investors. The project was carried out by architectural firm AGG Grabowski Architects Group and MCKB is the general contractor.

Łódź Fabryczna train station 
 The massive renovation of the train station is well underway, with most excavation work complete, going down 8 metres

More than 18 million zł will be invested to revitalize the nineteenth-century factory Ludwik Grohman in the Łódź Special Economic Zone. The opening is scheduled for June. It will include office space for rent, meeting r ooms and office zones.
The post-industrial complex of factory buildings located at ul. Tymienieckiego in Księży Mill, and is listed as an historical monument. The renovation started in December 2011. 
Marcin Kwintkiewicz of the Lodz Special Economic Zone: “We decided to save the nineteenth-century monument, which fell into disrepair and decided to change its function to offices.”
The renovated building will include modernly equipped conference and training rooms of various sizes - the largest for 250-300

2013 May

underground. In mid-May, the concrete foundation will be poured, according to Maciej Dutkiewicz, a spokesman for the PKP Polish Railway Lines. “It will be a very complicated operation. First you have to prepare formwork. Since the slab will have a very large surface area it is likely to be made ​​in three stages. When you begin pouring concrete, it can not be idle. Therefore, you must also prepare additional mixing plant to provide the right amount of concrete and protect yourself in the event of failure of any of them”, said Dutkiewicz.  n

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Szczecin Bristol Airport scores with Szczecin In early May Ryanair commenced a new route to Szczecin from Bristol Airport. The introduction of this new route brings the number of Polish destinations served from Bristol Airport to nine, with a total of 23 departing flights each week. This is the largest number of direct Polish routes operated by Ryanair from any British airport outside London. Bristol Airport aviation director Shaun Browne said: "We are delighted with this new destination. The growth in services between Bristol Airport and Poland demonstrates the strength of the cultural and business links the country has with the South West and Wales. Szczecin in particular, has similarities with Bristol as a centre for the service industry and maritime business in Poland."

Contractor sought for Szczecin shoreline replenishment Urzad Morski in Szczecin has invited bidders to submit their offers for the artificial recharge of a length of the Szczecin shoreline by using dredged materials from a designated area. The quantities of materials dredged from a sandy seabed will take into account the geological conditions and parameters of the layers, which, following hydrographic investigation will provide a fixed minimum for this field of dredging. An embankment will also be constructed in order to provide further coastal defences against future or increased erosion. The Szczecin shoreline replenishment

program should begin on May 21, and the completion is scheduled for June 15, 2013.

150 new jobs are to be created in SzczecinDąbie in two years time. On the eve of the 10th anniversary of their debut in Poland, KK-Electronics is opening a new production and test station for manufacturing modern wind power plant control systems. The new investment, worth PLN 12 million, is a result of cooperation between the Danish company with Siemens Wind Power. KK-Electronic Polska Sp. z o. o. is a Polish branch of a Danish concern, which has been operating in Poland since 2003. The company is a leading equipment manufacturer

for the renewable energy market, with more than 18,000 wind turbines operating worldwide using KK Electronics’ control systems. The main receiver of their switchgears and control systems is the Siemens Wind Power company. Components from Szczecin are shipped to Siemens’ factories in Denmark, USA and China. From there they are transported together with the turbines to Germany, UK, Canada, South Korea, New Zealand, Morocco and Poland. Expansion KK-Electronic’s Fidel of activity means an increase in company’s employment, which already provides 350 jobs. The concern cooperates with the Maritime University and West Pomeranian University of Technology. n

completed in October by Soletanche. Immofinanz is investing PLN 480 mln in the project, including PLN 50 mln in

improvements to the local transport infrastructure. Tarasy Zamkowe is scheduled to open in autumn 2014.
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Wind energy firm opens in Szczecin

Lublin Warbud to build €117 million mall in Lublin for Immofinanz

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Vienna-based listed property group Immofinanz has selected construction company Warbud as general contractor for its €117 million Tarasy Zamkowe shopping and entertainment project in the centre of Lublin. Begun last October, it is scheduled for completion in 2014.
The centre will offer a leasable area of 38,000 sq.m. and house 150 retail units, including cafés, restaurants and entertainment facilities and a 2,000 sq.m. supermarket. The foundation work for the centre was

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Wrocław Wrocław Global Forum in June One of the premier foreign policy conferences in Europe, the Wrocław Global Forum will be held in mid-June, bringing together more than 350 top policymakers and business leaders from the United States and Europe. Speakers and participants gather to discuss the region’s role as a critical partner in US efforts to strengthen ties across the Atlantic, and as an increasingly important player in determining Europe’s regional and global role. During the Forum, the Atlantic Council Freedom Awards recognize extraordinary individuals and organizations that defend and advance the cause of freedom around the world. These awards embody the Council’s mission to strengthen transatlantic leadership on global values.

Inaugurated in Berlin on the 20th anniversary of the fall of the Berlin wall, the 2009 Freedom Awards recognized the efforts of the American, German, Polish, Czech and Slovak, as well as the allied troops of NATO, to bring about a peaceful end to the Cold War. In 2010, on the 30th anniversary of Solidarity’s founding,

Wrocław became the permanent European home of the Freedom Awards in recognition of Poland’s unique role in spreading the message of solidarity and freedom globally. Each year the awards celebrate past triumphs of freedom, but also those who continue the struggle today. In 2013, the dinner will take place on June 14.

New Office going up near hotel Plaza Firm ANG Poland Sp. z o.o. plans to develop a 3700 sm office building in Wrocław, and plans to receive building permission by June. The developer is represented by Michał Modro, who said the Project will

WROCŁAW GLOBAL FORUM 2013 | 13 - 14 czerwca 2013 Wrocław Global Forum po raz czwarty zgromadzi przywódców politycznych, ekspertów oraz znakomitości świata biznesu, którzy przez 2 dni trwania Forum będą dyskutowali na temat zmieniającej się roli Europy Środkowej, zarówno jako europejskiego gracza, jak i globalnego partnera Stanów Zjednoczonych. W tym roku Forum skupi się przede wszystkim na tym, w jaki sposób budować silną i odporną gospodarkę, szerzyć wartości demokratyczne oraz jak zapewnić bezpieczeństwo w obliczu globalnych wyzwań. Wśród prelegentów poprzednich edycji Forum znaleźli się m.in.: Prezydent RP Bronisław Komorowski, amerykański senator John McCain, były Prezydent Niemiec Horst Köhler, lider ukraińskiej Partii UDAR Witalij Kliczko, byli Prezydenci RP Aleksander Kwaśniewski i Lech Wałęsa, biznesmen

Jan Kulczyk, Prezes KGHM Polska Miedź S.A. Herbert Wirth, Prezes BZ WBK S.A. Mateusz Morawiecki oraz wielu innych znamienitych Gości.

ATLANTIC COUNCIL FREEDOM AWARDS Jak co roku w stolicy Dolnego Śląska rozdane zostaną prestiżowe nagrody Atlantic Council Freedom Awards, honorujące wybitne jednostki, walczące o pokój i rozwój demokracji na świecie. Poczynając od 2010 roku nagrody otrzymali m.in.: Jerzy Buzek, Javier Solana, John McCain, Władysław Bartoszewski, Las Damas de Blanco, Esraa Abdel Fattah czy też Emma Bonino. W 2013 roku lauretami nagrody zostaną m.in.: Tadeusz Mazowiecki, Europejski Uniwersytet Humanistyczny (EHU) oraz Malala Yousafzai.

Organizatorzy:

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City Investment News hale 7 floors, with parking entrance from ul. Drobnera. ANG is also planning to develop a medical centre, to be named White Medical Center Wrocław.

Echo sells Wroclaw office to Spanish firm for Euro 67 million Listed Polish developer Echo Investment has signed agreements to sell Aquarius Business House office, under development in Wrocław, for €66.51 million to two units of Spanish private equity firm Azora Europe, extending Azora’s CEE investments. Aquarius Business House has two seven-floor buildings with leasable office space of 25,000 sq.m, and signed tenants include Tieto Poland, PwC, BNY Mellon, AXIT, Randstad, Lux Med, BOŚ Bank,

Katowice Katowice Airport expands capacity by 100%
 In July, Katowice’s Pyrzowice airport will become host to thirteen medium-distance aircraft, as well as three extended taxiways designed to support the wide-body Jumbo Jet aircraft. The airport is investing 81 million pln to accommodate the increased aircraft parking needs. The new investment will mostly support charter flights.

Kraków Deutsche Telekom to open Start-Up Incubator in Krakow

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“Krakow is to Berlin what ying is to yang,” wrote Clarissa Steinhöfel on the Berlinbased digital innovation news website, VentureVillage. Steinhöfel, co-founder of the tech and start-up conference Startup Safary in Krakow, observes that it is easy to find tech-savvy entrepreneurs capable of starting companies in the German capital, but hard to find competent programmers. By contrast, she continues, in Poland: “Tech talent outweighs business brains,” which prevents small companies with innovative ideas from breaking through. It is this mix of talent and inexperience that has prompted global player Deutsche Telekom to locate a start-up incubator in the city. Called hub:raum, the centre opened in April. Following in the footsteps of similar innovation centres established by Google and Motorola, DT describes

Expander Advisors, Credit Agricole and Farmacja Plus. Echo’s Adrian Karczewicz said purchasing interest this time has come in as early at the first construction stage. Azora Europe is making the investment via two subsidiaries Horta and SKUA. In February the group bought two new A-class office buildings in Krakow’s Green Office Complex for €24 million, its fifth CEE office acquisition and second in Krakow.

Skanska launching its largest office project in Wrocław Skanska starts the construction work on its fourth office building in Wrocław. Dominikański, as it has been named, will be developed in one of the most prestigious spots of the city, in the very heart of


“July is our busiest month, as we have both our regular business travelers and also substantially more charter flights. This year, we will be prepared to receive a larger number of aircraft. With the expansion of the apron at the airport, we can accommodate almost 100% more aircraft than before”, says Cezary Orzech, a spokesman for the Upper Silesian Aviation.
This project is being implemented with the support of EU funds from the Cohesion Fund under the Operational Programme Infrastructure and Environment. The funding will amount to almost half of the investment costs. n

hub:raum as a “hub that connects your team, vision, and expertise with the corporate power of Deutsche Telekom.” The first hub:raum was opened in Berlin last year, and Krakow has been chosen as the location for the second. DT’s aim is to support promising telecom start-ups by providing coaching, supervision from mentors, access to their corporate infrastructure, financing and physical co-working space. In return, DT gets a share in the equity of the start-up. The extent of this share expectation has not yet been published but, according to Jakub Probola, Innovation Unit Manager for T-Mobile Polska, which is owned by DT, it will be: “the same as in other, similar programs – a smaller share rather than a larger share.” The Berlin hub:raum is now working with four start-ups, one developing an app for lifelong learning, another offering an online marketplace for vintage fashion and design items, the third creating an online portal for beauty services, and the

Wrocław. It will be the developer’s largest office investment in the city. The Dominikański office complex, with a total leasable space of around 40,000 sqm, will comprise 2 underground levels and 7 storeys above ground. Skanska’s new office project will be developed at the meeting point of Piotra Skargi and Kazimierza Wielkiego streets, near the Dominikański Square, which will ensure the building’s users excellent access to public transport. The location is a great advantage of the project, also due to direct vicinity of the shopping centre Galeria Dominikańska and the proximity of the Market Square, within just a five-minute walk. The first phase of the investment will consist of a building with office and retail space totaling around 16,000 sqm.  n

Sosnowiec Sosnowiec unveils $20 Million USD sewage network investment Sosnowiec municipality in southern Poland is planning to build 18 kilometers of new sewage networks and three sewage pumps, and to modernize its existing sewage infrastructure as part of a $20 million deal. n

fourth developing a management service for online reviews. DT plans to accept a minimum of five start-ups this year for the Krakow hub:raum. These places are open to both Polish and non-Polish initiatives operating here. Anybody interested in a place should submit an application through the hub:raum website:
www.hubraum.com.

4 billion pln plan to develop Krakow’s Nowa Huta district An agreement between Krakow’s mayor, Jacek Majchrowski, and the Marshall of Małopolska, Marek Sowa, may be the first hopeful step towards the urban renewal of the Nowa Huta post-industrial suburb of Krakow. The plan calls for the redevelopment of a 5,500-hectare area stretching from ul. Bulwarowa and ul. Klasztorna eastward to the city limits, with ul. Igolomska as the main artery. This area lies to the east of the main concentration of housing estates that make up Nowa Huta and includes the vast steel mill that gave the district its

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name. It represents about 15 percent of the total area of the city. The first stage and ‘fly wheel’ of the concept is to be the establishment of a stateof-the-art research and development centre called the Branice Technology Park (a sub-sector of the Krakow Technology Park Special Economic Zone). It is hoped that some metallurgy-related businesses, as well as academic institutions and local government departments will be the first to set up shop in the park. This should create jobs in the area and encourage private investors to build residential developments and recreation areas.

Krakow – Nowa Huta Of The Future architectural contest, which was won by Gliwice-based firm, ARAC Office of Urban Planning and Architectural Design. The scope of the competition was one of the largest in Polish history, in terms of both area and projected spending. The 450,000 zł prize money for the Nowa Huta Of The Future competition was put up by ArcelorMittal Poland, the company that now owns the Tadeusz Sendzimir Steelworks and is by far the biggest corporation operating in the district. Estimates put the total cost of the redevelopment plans at 4 billion zł. The first 4

building plots and putting the necessary infrastructure in place, particularly the upgrading of ul. Igolomska. Also of vital importance will be the completion of the S7 expressway, which will sweep around the eastern edge of the city and provide the main access to the development zone via a junction with ul. Igolomska. Speaking about the S7 and the Nowa Huta development plan, Krakow city councillor Paweł Węgrzyn said: “The design phase should be completed by mid 2014. Obviously there are many factors that might delay the process of reviving Nowa Huta, such as delays to the S7 road, or the railway connection,

Also within the redevelopment area are several large lakes near the village of Przylasek Rusiecki, which will become part of a 37-hectare Large-Scale Open Space Cultural Events Centre. Already being referred to as a new Błonia, the Cultural Events Centre will have multiple sports facilities and it is also hoped that the hot springs in Przylasek Rusiecki can be used to construct geothermally-heated pools. The vision of a developed eastern fringe of Krakow has been around for some time now. Last year, local authorities held the

million zł is to come from the city and regional authorities, but the rest will have to come from EU subsidies over the period 2014 to 2020. This will depend on local government and private investors winning these funds for specific projects. “We will be presenting at the most important business events and fairs to promote our idea and attract the big players,” said Marek Sowa. There is a long road ahead for Nowa Huta. In order to attract private investors, Krakow’s authorities face the huge and complex task of merging fragmented

or some problems with merging building lots, or numerous others that I don’t even want to mention, and we are aware of them, but still, we need to be optimistic about our plans and do our best to ensure progress.” Krzysztof Krzysztofiak, vice-chairman of the Krakow Technology Park, speaks warmly of the project, though he advises patience. “Krakow now faces an enormous amount of planning and conceptual work – attracting investors will be a task that will take many years,” he said. Source: Krakow Post

2013 May

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Japan Polish-Japanese Economic Forum A Polish-Japanese Economic Forum took place on April 19th in Górzykowo (Lubuskie voivodship). The forum was attended by roughly 30 representatives of Japanese concerns, including Bridgestone, Funai, Suzuki Motor Poland, Takenaka Europe and Hitachi Europe. The Japanese guests had an opportunity to familiarize themselves with economic and investment advantages of Lubuskie voivodship, and for the region’s entrepreneurs to establish relations with firms gathered in the Shokokai Polish-Japanese Industry and Commerce Chamber and Japanese Foreign Trade Organization (Jetro). The meeting with potential investors was attended by representatives of the cities, NGOs and

Czech Polish-Czech cooperation

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Poland is the third most important trading partner for Czech Republic. On the 8th of April, Prague held an economic forum devoted to Polish - Czech economic relations. The event was the preview before the European Economic Congress in Katowice which will be held in May and during which the speakers will discuss such cooperation within the Visegrád Group. Deputy Minister of Industry and Trade of Czech Republic, Bedrzich Danda, said that the value of Czech exports to Poland in 2012 amounted to approximately EUR 7.4 billion, while import up to EUR 7.7 billion. He stressed that the increase in trade occurred despite the economic slowdown, which was reflected in the Czech Republic last year with a negative GDP growth of - 1.2 percent. Deputy Minister also announced that the Czech Republic is planning to increase exports to Poland. Undersecretary in Ministry of Economy of Poland, Andrzej Dycha,

Special Economic Zones of the Lubuskie voivodship. Jarosław Wałęsa European Parliament MP and a co-author of the EU-Japan trade negotiations EU parliament resolution, and Sławomir Majman - President of PAIZ were the special guests of the meeting. The meeting was also attended by Elżbieta Polak Marshall of the voivodship, as well as Japan’s Ambassador to Poland - Makoto

Yamanaka, and Japan’s Ambassador to the EU - Kojiro Shijoiri. The Japanese companies plan further cooperation and development. “I know about Japanese companies operating here that created around 5,000 jobs. Considering the favourable conditions offered by this region I am sure that the relations will develop and strengthen’, said Makoto Yamanaka, Japan’s ambassador to Poland. n

said that the Czech Republic is Poland’s fifth largest economic partner. The advisor of the Embassy in Prague, Marek Minarczuk, stressed that relations between Poland and Czech Republic have been very positive for a very long period of time. In the past few years, trade has increased by a quarter, and Polish investments in the Czech Republic increased by 50 percent. Polish investment in the Czech Republic amounts to EUR 1.9 billion while Czech investment in Poland comes to almost EUR 300 million. The biggest Polish investor in the Czech Republic is PKN Orlen. “For Polish entrepreneurs Czech Republic is in fact the second largest investment market in the world. This is not surprising, since first of all the company searches for markets where they feel confident and stable”, said Majman. Majman also noted that the world often perceives Eastern and Central Europe as one entity, which should persuade and lead the Visegrád Group countries to a closer cooperation and mutual undertakings. In his opinion, Polish and Czech companies should think about cooperation, in which

they could jointly commence at third markets such as China, but also for example in Africa as part of the “Go Africa” program. Representatives of both Ministries of Economy assume that this year’s PolishCzech bilateral trade and investment will continue to grow. This year Polish-Czech intergovernmental consultations are already planned - in the Warsaw governmental delegation with Prime Minister Mr Petr NEČAS as well as the visit of the new Czech President Milos Zeman.  n

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Chambers of Commerce News

South Korea South Korea – EU Public Project Development Forum On May 20 - 21 Korea Trade and Investment Promotion Agency (known as KOTRA) hosts a business event promoting cooperation in public projects on European Union market. Participation in the event is open to potential ordering parties from the EU willing to learn about the Korean experience in implementation of public projects in the world as well as to companies interested in partnership with Korean companies to join forces for public tenders. The conference will also summarize public market trends in 2012 covered by public procurement office (UZP) and provide analysis of recent changes to public procurement law in Poland. Among honorary guests participation of high official from Ministry of Administration and Digitalization is expected. South Korea has recently initiated its presence on the public market in Poland by winning two tenders in 2012 related to development of broadband internet in Podlaskie province and construction

of state of the art waste incinerator in Kraków. Successful start - up and experience on non-EU regions drive Korean companies to discover more business opportunities among the 27 countries of European Community. As the largest CEE country with highest allocation of EU funds Poland is considered a stepping stone to large EU public procurement market.

According to KOTRA’s analysis, the ICT sector as well as energy, environment and transport infrastructure are areas of highest potential for South Korean companies on the public market in EU and Poland. Therefore, the program of the conference includes presentations of Korea’s recent achievements in the world as well as vision for development of these sectors in Europe. Among speakers will be leading companies such as Samsung, SK C&C, Posco Engineering & Construction, as well as Polish experts sharing their opinion in ICT, ITS, waste management, energy and infrastructure. The second day of the event gives the opportunity to discuss potential cooperation in public projects and consult product/ technology issues with Korean companies present at the event. Such business - to business consultations are arranged by KOTRA according to individual requests of EU/Polish participants and economic profile of Korean companies. Participation in the event (both conference and b2b meetings) is free of charge. As over 70 institutions applied for participation we recommend to confirm attendance urgently to secure place and not to lose opportunity for successful business networking. Details at www.Kotra.pl. n

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2013 May


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Chambers of Commerce News

France General Assembly of French Chamber of Commerce and Industry in Poland The Ordinary General Assembly of members of French Chamber of Commerce and Industry in Poland (CCIFP) was held on April 22 at the Orange Polska premises. The meeting was attended by over 100 representatives of French and Polish companies and a special guest of the meeting was Mr. Pierre Buhler, French Ambassador to Poland. First part of the meeting was dedicated to the presentation of the 2012 annual report. Among the events organized by CCIFP the most successful were: Polish-French Economic Forum attended by the Presidents

Turkey Poland to be promoted in Turkey PAIZ, in framework of the measure 6.5.1 Innovative Economy Operational Program, will implement a program promoting the Polish economy in Turkey. By the end of this year, the Agency will conduct promotion-informational activities aimed at specific target groups in Turkey, organizing bilateral business missions, study visits for journalists, Turkish

India Poland eyes Indian investors with low-cost advantage

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Poland is beckoning Indian industry to invest by taking advantage of its low-cost labour, tax rates, proactive policies and state-of-the-art infrastructure. Speaking at the eighth Polish Outsourcing Forum held in Bangalore, India in late April, Polish consul general in Mumbai Janusz Wach said: “Poland is the only country in Europe which did not get affected by the global financial crisis in 2008 and avoided recession that gripped many European Union (EU) memberstates.” According to Wach, though Indian IT bellwethers firms such as TCS, Infosys, Wipro, HCL, Zensar and Genpact have invested in Poland by setting up development centres and back office services for their global and European clients, investment potential for other sectors is also high.

of Poland and France, celebration of June 14 (Bastille Day) and French village in Saska Kępa, as well as numerous regional networking meetings. The CCIFP members listened with great interest to the report on the activity of Training Centre and Business Development Center, which during last year recorded a significant growth of provided services. The next part of the meeting attention was focused on the activities that CCIFP wants to implement in the coming months. It is planned to increase the presence in the regions through the appointment of permanent representatives and the organization of new business meetings. Activities dedicated to companies of SME sector, such as Business mixers, business Rendez-vous cycle or development of companies’ tutors are to be continued. Large companies can count on Chamber’s

support for the lobbying activities as well as on exchange of experiences at the managerial level. CCIFP will also develop its activity aimed at promotion of Poland in France and France in Poland. The Business Development Center through strengthened cooperation with French regional chambers will be able to support larger number of companies and provide them with verified market information by means of continuously updated knowledge base. The Training Center will offer numerous types of courses and seminars grouped in different cycles and will also extend its offer of meetings held in French. CCIFP is planning as well to launch the project of economic and intellectual debates involving prominent personalities from Poland and France in order to demonstrate French way of thinking in the context of European and Polish social and economic challenges.  n

and Polish stands at the biggest fairs in Turkey, including: Yapı Fuarı - Turkeybuild Mining, Natural Resources and Technology Fair, the World Food - International Food Products & Processing Technologies Exhibition, CeBIT Bilisim Eurasia and International Health Tourism Exhibition. “We want to work altogether to strengthen the Polish export and investment on the Turkish market:, said Marek Łyżwa, Board Member of PAIlIZ during a meeting held with Polish entrepreneurs interested in cooperation with Turkey.

PAIZ held an informational meeting, during which Polish companies interested in promoting their products and services on the Turkish market obtained detailed outlook of the program implemented by the Agency. The entrepreneurs can apply for financial support if they decide to participate in the program. The financial aid amounts up to 75% of the incurred costs. The application must be submitted directly to the Ministry of Economy, Department of Implementation of Operational Programmes, Plac Trzech Krzyży 3/5, 00-507 Warsaw. n

“It is not only in the IT industry spanning software and business process outsourcing (BPO) services that can take advantage of the favourable conditions for investment, but also other verticals such as banking, financial services and insurance (BFSI), automobile, engineering design, pharma, healthcare and tourism,” Wach said. Poland is also a great destination for mergers and acquisitions, especially in the IT and BPO sector, as about 200 BPO firms are operating from five major cities in the country, employing about 85,000 people. “As the second fastest outsourcing market after India, with 20 percent growth per annum, Poland has the potential to emerge as the largest destination for the knowledge industry, taking advantage of its vast talent pool, proximity to other EU member-states and lower cost of operations,” Indian ambassador Monika Kapil Mehta said. Indo-Polish Chamber of Commerce and Industry president J.J. Singh said that Indian investment in Poland was around

$3.5 billion as against Polish investment of $350 million in India. Balance of trade is in favour of India, which accounts for 40 percent of exports to Poland as against its 27 percent to India in 2012, he said. “Poland ranks third in the world as an outsourcing location and presence of the Indian IT bellwethers is a testimony to the advantages it offers. There is a huge potential for the Indian IT/BPO services companies to expand in central and eastern Europe,” Singh said on the margins of the day-long interactive session between representatives of both the countries. While seven editions of the forum (Roadshow Polska), dedicated to the outsourcing industry in Poland, were held in various Polish cities since 2006, the eighth edition has been organised for the first time in India by the Indo-Polish Chamber of Commerce and Industry in association with the National Association of Software and services companies (Nasscom), which is the Indian IT industry representative body. n

May 2013


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Switzerland Mach-tool fair 2013 The Chamber together with Swiss Business Hub Poland organize for the second time a Swiss Pavilion at Mach-Tool fair in Poznan. The event will take place during the ITM Fair on 4th – 7th June 2013.

Portugal Portuguese Week “Flavours of Portugal” 2013 20 – 25 May, Hotel Intercontinental

United Kingdom UKTI and British-Polish Chamber of Commerce forge new growth focused on Trade & Investment Partnership Under the leadership of Robin Barnett, British Ambassador to Poland and the broader British Embassy Commercial Diplomacy Team, UK Trade & Investment Poland and the British Polish Chamber of Commerce (BPCC) have signed an important Memorandum of Understanding to forge a new British Polish Trade and Investment Growth Partnership. The brainchild of Lord Green of Hurstpierpoint, this new venture will see UKTI and the BPCC working in partnership together to significantly increase coverage and reach in promoting the bilateral trade and investment opportunities which exist between the UK and Poland. During a special signing ceremony at the Ambassador’s Residence, the BPCC Board, Patrons and staff, British Embassy Commercial Diplomacy and UKTI teams joined the Ambassador and Chairman of the BPCC in celebrating this excellent new venture. The President of COBCOE who has played a role in capacity building the BPCC to enable it to participate competitively in this new initiative was also present.

2013 May

Chambers of Commerce News Mach-Tool is one of the leading Polish fair events dedicated to machinery industry. The Swiss Pavilion enables Swiss companies already present in Poland to create appropriate positioning on the market in a good company. For the growing number of Swiss exhibitors not yet operating in Poland it is a perfect opportunity to get to know the Polish market. We kindly invite you to visit our stand: hall 8, no 28 n

Biedronka has received double Superbrands prize in category shopping
 For the 4th time, Biedronka was the winner of Superbrands in Poland, in the category of Shopping. The brand was also classified as one of the most powerful brands in image terms.
 


During his speech just before signing the joint memorandum, HMA Barnett remarked: “I am extremely pleased to see you all here this evening, so motivated to grasp the opportunity of driving the UK’s aspirational growth ambition in Poland and playing a great role in the UKs expanded success in this exciting market.” BPCC Chairman, Antoni Reczek, responded by saying: “This is an exceptional moment. The Board of the Chamber and I are honoured and inspired to have the opportunity to take part in such a logical and practical programme to drive forward bilateral trade and investment. This is absolutely the right moment to launch this Great programme and we will work with commitment and diligence to make it a great success.” For more information on accessing the British Polish Trade and Investment for Growth programme aimed at making it easy for you to do business in Poland contact the Director of UKTI Poland martin.oxley@fco. gov.uk or Paweł Siwecki, Executive Director, BPCC pawel.siwecki@bpcc.org.pl.

British-Polish Infrastructure Forum – 23 May. A sustainable transport policy for Poland This one-day strategic forum, organized with the British Embassy in Warsaw, will look at the big-picture questions facing Poland’s transport planners, defining an optimal policy that will serve Poland’s and Europe’s – transport infrastructure needs for decades ahead. The forum will also consider all the options for financing

“Quinta do Vallado” was elected best producer of the year 2012
 Quinta do Vallado was honored as the producer that excelled during 2012, accordingly to the 10th edition of “Essence of Wine - Oporto”. Further, Quinta do Vallado’s wine “Quinta” was placed in the 2012 Wine Spectator’s prestigious Top 100 wines, for the third consecutive year. n

the kind of network that would most benefit Poland’s economy in the long run. Aimed at construction sector, logistics companies, financial institutions as well as government officials and transport/ infrastructure regulators, the forum will offer insight into UK best practice in finding and financing optimum solutions. The forum will be split into two parts. Part one – Policy. Shaping Poland’s Transport policy for the foreseeable future Speakers from the Ministry of Transport, Ministry of Regional Development, European Commission, Parliamentary Infrastructure Committee, Center for Analysis of Transport Infrastructure, Atkins, Freightliner, will present a vision of an ideal transport policy that is acceptable to stakeholders private and public. Part two – Financing Poland’s transport infrastructure development The second part of the forum will discuss the financing options available, starting with EU structural and cohesion funds for 2014-2020, and the TEN-T action plan, then looking at prospects for funding projects by from Polish state or local authorities’ budgets, and considering PPP as an alternative model of project finance. Speakers will focus on the European and Polish legal frameworks for infrastructure development, identifying the optimal methods of financing a given infrastructure project and what EU funds are available. We will also present UK best practice in innovative financing solutions for infrastructure projects. n

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Chambers of Commerce News

China 1st Regional Forum Poland-China On April 22, 2013, under the honorary patronage of Polish President Bronisław Komorowski, in Gdańsk, the 1st Regional Forum Poland - China was held. This is the first such initiative in Poland. The Forum was attended by representatives of Polish and Chinese regions and cities, including by approximately 200 representatives from the Chinese side.

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During the Forum, four thematic panels were organized: economic, educational, touristic and cultural, with PAIZ putting emphasis on the renewable energy sector. In his message to the participants of the event, President Komorowski expressed his hope that the Forum will be a good formula for creating a strategic partnership agreement between Poland and China with concrete cooperation. The President emphasized that an important issue is the trade balance between the two countries,

which is currently tilted heavily in favor of China. At the invitation of Mrs Dr. Cheng Hong Deputy Mayor of Beijing - PAIZ’s President Sławomir Majman took part in a working meeting on the development of cooperation with companies from ICT and new technologies sector. The meeting was also attended by Andrzej Szewczyk - Deputy Director of the Economic Promotion Department, PAIZ; Yu Yang - Advisor to the Board, PAIZ; Lu Yan - Director-General of Trade Commission of Beijing City, Shi Minghui - Deputy Director of Foreign

The purpose of the meeting was to discuss the possibility of establishing a Chinese economic and technological park in Poland. The meeting was attended by representatives of the Ministry of Economy, Łódź and Pomeranian Special Economic Zones and the President and Vice President of PAIZ. The Chinese delegation was accompanied by experts from various Chinese economic zones. During the brief presentation of the Pomeranian and the Łódź SEZ, favorable conditions for foreign investment were presented as well as assurances made that

Affairs Office of Yunnan Province. PAIZ’s representatives also met with the Vice Governor Yunnan Province, Mrs Li Jiang. The talks focused on economic cooperation and organization of missions for Polish entrepreneurs to China.

SEZ are prepared to adapt the area to the requirements and expectations of Chinese entrepreneurs. The assistance to investors in the form of consulting and creating most optimum climate for Chinese investment, was also offered. During the meeting, the representatives of the Chinese Ministry of Commerce asked a number of questions relating to the functioning of Special Economic Zones and the possibility of establishing China’s economic and technological park. n

MOFCOM in PAIZ On 9th of April in PAIZ, representatives of the Ministry of Economy met with the delegation from the Ministry of Commerce of Peoples Republic of China (MOFCOM).

May 2013


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Spain Financing Polish projects; opportunities for Spanish investors The Polish-Spanish Chamber of Commerce would like to announce that in cooperation with the Ministry of Treasury of Poland and the Spanish Confederation of Employers’ Organizations (CEOE) we will be organizing two conferences in Spain entitled New ways of financing projects carried out in  Poland; opportunities for Spanish companies. The conferences will be held under the Honorary Patronage of the Embassy of the Republic of Poland in Madrid on May the 16th and 17th,

United States American Chamber at Krynica Economic Forum 2013 Encouraged by last year’s success and to meet member expectations the AmCham would like to invite you to partner with AmCham at the Krynica Economic Forum 2013. The”AmCham Diner” at the Krynica Economic Forum was AmCham’s coup of the year 2012. AmCham had a solid and well-attended panel discussion on what America has done for Poland in the past 20 plus years, as well as a variety of interviews with VIPs that visited the AmCham tent. Guests included: Ministers Michał Boni, Olgierd Dziekoński, Beata Stelmach, US Ambassador in Poland Lee Feinstein, and US General Consul in Kraków Ellen Germain; Members of Parliament Ryszard Kalisz, Michał Szczerba, Róża Thun, Grzegorz Napieralski, Bolesław Piecha, Ludwik Dorn; Politicians Mikołaj Dowgielewicz, Hanna Gronkiewicz Waltz,

Austria PlastPol Trade Fair in Kielce At this year’s Plastpol, Advantage Austria, Austria’s trade promotion agency, will be present with a group exhibition where 6 companies will show their latest product and

2013 May

Chambers of Commerce News in Madrid and Barcelona respectively. Poland continues to be the favourite destination of numerous direct investments coming from abroad that have played a key role in the economic growth of the country over the last few years. The Polish government aims at  maintaining the current investment dynamics at the same level through the implementation of a new investing formula, that is the Polish Investments programme, anounced in the end of 2012. The details of this new investment formula shall be presented during the meetings in Spain. We are honoured to welcome among the speakers Mr Paweł Tamborski, the  ViceMinister of State at the Ministry of

Treasury, and Mr Mariusz Grendowicz, the Chairman of the company Polish Development Investments. More details in the Chamber’s office: tel: 0048 511 15 70, email: phig@phig.pl. The enrollment form is available at: www. phig.pl

Janusz Lewandowski, Jan Krzysztof Bielecki, Cezary Grabarczyk, Janusz Palikot and representatives from AmCham Member Companies.

AmCham announces the launch of an “AmCham Gdańsk” initiative to follow the needs of members and U.S. companies invested in the Tri-City region. Initiatives include a

series of meetings to start getting the local companies organized and to give the general membership the chance to network with businesses up north. The first such meeting will be hosted by the Deepwater Container Terminal in Gdańsk with a discussion about the changes taking place in transport and logistics across Poland. The meeting will start at 9:30 a.m. on Monday, May 13th and will end with a networking lunch. Details at marzena.drela@amcham.pl n

technology innovations: shredding experts UNTHA, leading tool producer for the fittings industry IFW Mould TEC, plastic compounds developer GEBA, recycling machinery producer Recent, underwater pelletizing specialist ECON and the Austrian Business Agency. Advantage Austria will be located in Hall C, booths 56-58 and 67-69. Apart from the Advantage Austria group

exhibition, some other Austrian companies will show off their expertise in the plastics industry: Borealis AG, EDS GmbH, Engel Austria, Greiner Extrusion, Haidlmair, MAS- Maschinen- und Anlagenbau Schulz, Meusburger Georg, Politsch Kunststofftechnik. The Plastpol 2013 trade fair takes place from May 7th to 10th in Kielce. n

AmCham Gdańsk” initiative” - and tour at DCT Gdańsk

Tarde de Sabores – Evening of Tastes As we do every month, the Polish-Spanish Chamber of Commerce will organize the Tarde de Sabores meeting in May. The meeting, combined with the tasting of Spanish wines, will be held on the 23rd of May. For more information, please contact the Polish-Spanish Chamber of Commerce. n

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Business Calendar May 13- 15 May 5th European Economic Congress Katowice The European Economic Congress is a three day long series of debates and meetings, featuring 6,000 guests representing Poland and other European countries. Several hundred speakers contribute to nearly one hundred panel discussions

14 – 15 May Fourth Forum of Innovation Rzeszów

ASPIRE. Acting Local, Winning Global 2013; 16 – 17 May; Kraków, Sheraton Hotel

Rzeszów Innovation Forum, held for the fourth year, will cover the aviation and aerospace industry in the context of the adoption of Polish as a member of the European Space Agency (ESA).

14 – 16 May Green Power Poznań, MTP During the International Renewable Energy Fair GREENPOWER, exhibitors will present the latest developments in the field of RES. The visitors are mostly B2B, including private investors interested in energy-saving technologies, representatives of local governments and companies operating in the tourism, hotel and spa sectors.

20 May Economic Roundtable: Investment
Bydgoszcz Economic Roundtable Conference: Investing from the local economy to the global economy will take place 20-21 May in Bydgoszcz.


21 May Top 10: Markets for Polish exports, 2013-2015
 Warsaw, Primate’s Palace


TOP10: The most promising markets for Polish exports in the years 2013 to 2015.
In the coming years the driving force of the Polish economy will be export. Rapidly growing countries have become a great market for our goods and services, and Poland is more attractive due to the open market, low production price and high quality products.

23 May Forum – Triangle economic cooperation: Poland, Czech Republic, Germany
Katowice, Angelo Hotel Polish-Czech economic relations despite the crisis and economic turmoil continues apace. Geographically and mentally both countries are close to each other, which gives great strength to the joint lobbying internationally.

23 May

First Polish-Serbian Economic Forum Silesian Voivodship Office, Katowice

4th Annual Emerging European Investment Products Warsaw, Hotel InterContinental The 4th Annual Forum will review and analyse the product offering from 2012/2013 and showcase opportunities for 2013/2014 and beyond. This analysis will include the steadily maturing ETF industry and the various trading platforms.

16 – 17 May

23 May

ASPIRE. Acting Local, Winning Global 2013 Kraków, Sheraton Hotel Industry Branding, Benchmarking, Knowledge sharing & Networking are the focus areas of

British-Polish Infrastructure Forum
Warsaw
 British-Polish Forum for Infrastructure: Sustainable Transport for Poland - assumptions and funding. The Forum will be divided

16 May

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‘Acting Local, Winning Global 2013’. Over two days we will bring together leaders in the shared services, outsourcing & IT space to explore the opportunities and challenges for the industry in the region. The second day will conclude with sessions led by ASPIRE’s working groups, addressing areas identified by members as being of critical and urgent interest and requiring collaborative action, such as market information, sourcing candidates and talent management.

May 2013


www.bizpoland.pl into two parts: Part I - Development of Polish transport policy in the context of the European strategy. Part Two - Funding the development of transport infrastructure in Poland

Business Calendar 13 – 15 June

17 – 19 June

Congress of Maritime
Szczecin


Organic Marketing Forum 2013

Northern Chamber of Commerce together with the Polish Steamship Company organized the First International Congress of Maritime. This will be the first event of its kind in Poland. Co-organizers of the Congress are: Marshal of the Westpomerania Voivodship Olgierd Geblewicz and the Mayor of Szczecin Piotr Krzystek as well: Polish Shipowners’ Association, the National Chamber of Maritime Commerce, the Office for Promotion of Short Sea Shipping and Seaports Szczecin and Swinoujscie.



Warsaw
European professional exhibition of organic products and Networking Conference.

14 – 15 June

18 – 19 June

V Congress of Women
Warsaw
 The Congress is two days filled with plenary sessions and panels in parallel, development workshops and many attractions for professional women. Last year, there were more than 7000 participants in the Congress. Participation in the Fifth Congress of Women is free of charge.

COWEC 2013 Berlin Berlin COWEC (Conference of the Wind Power Engineering Community) on 18th and 19th June 2013 in Berlin, Germany, brings together experts from the wind energy industry worldwide and discusses current challenges. n

June 5 June Private Equity Forum Warsaw

7 June WallStreet17
Karpacz For 17 years now, SII organizes WallStreet Conference, which is the largest meeting of individual investors in this part of Europe. At the meeting from 7-9 June 2013, in Karpacz organizers expect more than 900 guests. Traditionally, a partner organization of the Conference will be Stock Exchange in Warsaw and the National Depository for Securities. The plan of the Conference includes 22 hours of interesting lectures on stock exchange, financial and economic, panel discussions and meetings with the most active stock market investors.

11-13 June AutoEvent 2013 Zawiercie 9th edition of the conference dedicated to the automotive industry - AutoEvent, organized by the Polish Chamber of Automotive Industry. AutoEvent is an annual conference dedicated to the automotive industry in Poland and Central and Eastern Europe, which for eight years, organized by the Polish Chamber of Automotive Industry. This two-day event attracts an average of 250-300 participants.

13 – 14 June Wrocław Global Forum Wrocław Political leaders, experts and top business people will meet and discuss over two days the changing role of Central Europe, both as a European player and global partner of the United States. This year’s Forum will focus primarily on how to build a strong and resistant economy, spread democratic values​​, and how to ensure safety in the face of global challenges. Among the speakers previous forums were, among others: the President of Poland Bronislaw Komorowski, U.S. Senator John McCain, former President of Germany, Horst Köhler, the leader of the Ukrainian Party of UDAR Vitali Klitschko, former Presidents of the Republic of Poland Aleksander Kwasniewski and Lech Walesa, and Jan Kulczyk. President of KGHM Polish Copper SA Herbert Wirth, President of BZ WBK SA Mateusz Morawiecki and many other distinguished guests.



2013 May

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Events

MotoIdea Wrocław The automotive industry met in Wroclaw for the annual Moto Idea 2013 event. This year’s meeting was attended by about 120 participants from 85 companies. During the two days of lectures guests had the opportunity to hear 16 speeches

delivered by 19 speakers. Participants had the opportunity to learn about topics related to global phenomena that affect the health of the automotive industry, the issues of strategic business management and the search for the best

possible solutions for them, from several points of view about the most important factors for the development of enterprises, as well as different perspective on opportunities and threats for the Polish automotive industry. n

Wind energy off-take solutions at its best. Axpo offers customized short and long term off-take and hedging solutions to optimize your wind farm production income for both electricity and green certificates. Axpo Polska Sp. z o.o. | Al. Jerozolimskie 123 | PL-02-017 Warsaw T +48 22 529 79 45 | F +48 22 529 79 44 | biuro.pl@axpo.com

ranked # 1 dealer in power in Eastern Europe

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34 axpo_ins_190x133.indd 1

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Events

Kielce bids for BPO business BPO development perspectives for Kielce and other cities of Eastern Poland was the subject of a conference that was held on 4th and 5th of April in the capital of Świętokrzyskie Voivodeship. “Kielce, with their investment offers, professional officials and personnel educated in 11 local universities, places itself among the most attractive locations for BPO sector”, said the Mayor of the City. Today Kielce offer around 45,000 square meters of office space, and the number will double very soon. Nowadays, 20 companies connected to the sector operate just in Kielce, employing around 2000 people. ”In the last 10 years as many as 47 outsourcing/services centres have been created in eastern Poland voivodeships, and they will certainly gain in importance in the nearest future, because the BPO sector needs new locations”, stressed Agnieszka

Wojnarowska, director of Regional Development Department at PAIZ. The conference created an opportunity to match and discuss cities investment offers with investors expectations. “Logistic attractiveness is as important as investment costs. Kielce may not have an airport, but they should have a good road network, which will help in getting to the airport in a neighbouring region. Good access roads are as important as good internal organization of the city”, said Marcin Nowak from the Krakow division of Capgemini Polska. n

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2013 May


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Events

Banking Forum On 10-11 April 2013 at the Radisson Blu in Warsaw, MM Conferences once again organized a meeting of representatives of the largest banking and insurance firms. Discussions at the conference included the following: the impact of European Union banking on the situation of the banking sector in Poland; the future market for payments; what is the future business model of the banking sector; the future of corporate banking; payments systems - regulatory and technological perspectives; new technologies for the banking and insurance sectors; crime insurance and claims management.
The conference session was attended by Boguslaw Kott - CEO, Bank Millennium, Tomasz Bogus - CEO, BankPocztowy,

prof. Dr hab. Margaret Zaleska Member of the Board of the NBP (right) Boguslaw Kott – CEO, Bank Millennium Boguslaw Kott - CEO, Bank Millennium

Mateusz Morawiecki - President, BZ WBK, Wojciech Sobieraj - President, Alior Bank, Leszek Niemycki - President Management Board, Deutsche Bank, Artur Olech - CEO, Generali Group,

Joseph Wancer - Advisor to the Board of Deloitte, prof. Dr hab. Margaret Zaleska - Member of the Board of the NBP, and Andrew Kopyrski - Vice President, Bank Pekao.
 n

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May 2013


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Events

FashionPhilosophy Fashion Week The spring edition of FashionPhilosophy Fashion Week Poland in Łódź was held 17 – 21 April. The main event was again held in Ksieży Młyn in the Łódź Special Economic Zone. During this spring edition, autumnwinter trends 2013/2014 were presented. FashionPhilosophy Fashion Week Poland is the largest and most important fashion event in Poland. Apart from presenting the trends for the upcoming seasons, it serves also as a business networking platform for the fashion industry. An important goal of the event is also the promotion of Polish designers internationally. Key side events were Designer Avenue and Off Out Of Schedule, showcasing new, young designers, and “Showroom”, which featured 120 fashion exhibitors. Other features were the Young Fashion Photographers Now event. Featured

designers included: Agata Wojtkiewicz, Berenika Czarnota, Kamila GawronskaKasperska, Natalia Jaroszewska, and Lukasz Jemiol.

Debuts of designers at Designer Avenue included: Charlotte Rouge, Cocoon, Shabatin, Filip Roth, Sylwia Rochala, and Wojtek Haratyk.  n

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Events

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2013 May


FDI Poland Investor Awards 17 October 2013 Hotel Intercontinental, Warsaw BizPoland Magazine and BiznesPolska are proud to host the inaugural FDI Poland Investor Awards Gala, an evening dedicated to recognizing top foreign companies operating in Poland. With more than 200 international executive guests from more than 25 countries expected, the awards gala will be preceded by a half-day of discussion panels covering key issues and practical experiences related to direct investment in Poland. Poland has emerged as a world-leader for inward Foreign Direct Investment (FDI), and continues to attract top global investors, from a wide range of sectors including car and white-goods manufacturing, aviation, business services, energy, retail, and pharmaceuticals. Poland’s top international direct investors will be presented with awards of acknowledgment – by an independent Jury – for their economic commitment to the Polish economy, judged by size of investment, employment levels and strategic importance. This invitation-only event will attract top international executives in charge of investment decisions related to Poland, with support from more than 15 international Chambers of Commerce, representing a broad mix of top executives from amongst Poland’s largest and most economically-important foreign investors. Chambers of Commerce that are invited include: Britain, USA, Canada, France, Spain, Portugal, Holland, Italy, Ireland, Germany, Austria, Switzerland, Scandinavia, Czech, Australia, Japan, Korea, China, and Brazil.

www.FDIPolandAwards.pl Time: 18:30-24:00 | Attendees: 200+ | Dress Code: Black Tie (formal attire)

BizPoland Magazine - May 2013  

Monthly english-language magazine covering business in Poland, with special focus on direct Foreign Investment

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