Polish Business Survey
Retail association fights foreigners
The Polish Retailers Union (UPSD) which was founded in mid February and currently with eleven members will soon be receiving new applications. According to Małgorzata Więch, chairperson of the UPSD and MD of Sklepy Familijny, several companies have requested membership.
One new applicant, Agro-Coop has 200 shops largely in Masuria in north eastern Poland. Adam Filipowicz, MD of the company sees entry to the association as being a defence against foreign competition and hopes to get better deals when negotiation with suppliers.
The aim of the UPSD is to defend what it sees as the interests of Polish retailers against foreign giants. The plan of action is closer cooperation between members which will include joint training and a logo for all members which they can display in their shop windows.
Grzegorz Ejchart, an analyst at Cal Company Assistance, thinks that this action could improve the position of Polish retailers. However not every Polish retailer is so keen on the idea. Ryszard Jędros, MD of Społem Zatoka which has 66 stores in Gdańsk, Gdynia, Braniewo and Ostróda thinks it a good idea but doubts if the members will be able to find a common front especially due to the different financial standings of the Polish companies. He sees huge problems with a united logistical back-up as members have stores throughout the entire country. He thinks the association ought to buy its own warehouses but doubts if it has the resources. Małgorzata Więch says that warehouses could be built and has started negotiations on this very subject.
Members have 1,769 stores between them with a total floor area of around 250,000sqm.
Informix wants to buy IT companies
The American Informix, producer of data base tools, is planning to enter the Polish market by purchasing up to ten IT companies. It is prepared to invest several hundred thousand dollars into each project. The companies it is looking for will be recently set up. Apart from capital the Americans are prepared to supply both equipment and programs. Konrad Makomaski, MD of Informix in Poland said that it was as yet too early to give any details as the company was still analysing business plans. He said that he was also interested in looking at Internet projects as well.
Informix has different plans to those of its main competitors Oracle and IBM who have a much larger presence in this country. The company is not looking to sell traditional databases but e. business solutions. Last year the Americans bought several companies working in this sector. The most recent purchase was of the company Ardent Software for USD1.1bn. Ardent produces software for the integration of databases with e. business.
Informix had a turnover of around PLN50m in Poland last year. Its main clients are in the television and banking sectors such as Telewizja Polska and BIG Bank Gdański.
Krakchemia slice off wholesale
Retailers KrakChemia, who are trying to develop a retail centre in Kraków, are planning to separate their wholesale business creating a new company for this purpose. It also claims that it might purchase a retail company.
Transocean to be privatised
This month the Treasury chose Nexus Consultants from Gdynia as the privatisation advisors for Szczecin based Transocean. Between ten and eighty percent of the long distance transport company will be sold.
Power station bonds late
The planned USD250m issue of eurobonds for the Elektrownia Turów power station could be delayed. The company should receive a preliminary rating after Easter and then Standard and Poors will give a final decision on how it regards the financial standing of the company.
Private airline gets Boeing
Next year White Eagle Aviation (WEA), a company belonging to Polish entrepreneur Zbigniew Niemczycki, will begin flights with its first Boeing 737-400. The plane has been leased from the German Hapag Lloyd although WEA says that it will buy this plane in time.
Slow steel sell-off
Negotiations with Corus and Danielli concerning the purchase of Huta Katowice are going slower than planned. Business plans for companies to be split from HK which should have been done in March still have not been completed A preliminary agreement between the investors, the plant and the government expected yesterday was not signed. A final contract, due in June is looking increasingly improbable and is feared that talks may come to nothing.
Huta Katowice has assets worth PLN7.3bn but PLN1.4bn has been used for bank guarantees and further debts amount to PLN2m.