Polish Business Survey
Troncetti build factory in SEZ
The Italian paper producer Troncetti will shortly begin to construct a production facility at a cost of at least PLN200m in the Kostrzyń-Słubice Special Economic Zone on the German border. Domestic paper producers are complaining that a major producer should be allowed to gain a position where it is freed from paying taxes and thus reduced costs. The factory will produce around 85 tons of tissue paper daily. Ninety percent of this will be exported in the first three years of operations. Lesław Kwasik, MD of ICT Poland, the daughter company of Troncetti in Poland said that he has already signed contracts and has no intention of changing them.
Nonetheless Marek Ściążko, MD of IP Klucze, said that the ten percent that has been reserved for the domestic market represents half of the high quality tissue paper sold in this country. As Troncetti has set up in the zone it could seriously effect his company he thinks.
From 2004 the Italians plan on increasing production for the domestic market and obtain a 30 percent market share by this time.
Brewery looks to export
The Krotoszyn brewery is planning the purchase of a can bottling line with a speed of 10,000 units per hour and six fermentation tanks which will allow it to increase production to 300,000 hectolitres (30m litres).
Last year the brewery spent PLN1.5m on new technology, this year investments will exceed PLN2m.
The brewery is also hoping to export to the USA, UK, Sweden and Lithuania.
In January the State increased excise duty from 14 to 21 percent and liquidated the tax breaks for small breweries. This has made it more difficult for small breweries to survive.
PTR buys Lithuanian insurer
Insurers PTR have obtained around 80 percent of the Lithuanian Preventa, the third largest property insurer in that country at a cost of USD2.4m. PTR itself may find an investor for itself this summer, it has been talking to two European reassurance companies for several months. Krzysztof Jarmuszczak of PTR thinks that it particularly important that an investor will explain the role foreseen for PTR in Poland and Central Europe in general.
Cefarm Śląsk to restructure
Pharmaceuticals distributor ORFE has decided to speeden the restructurisation of Cefarm Śląsk, one of its daughter companies. Cefarm Śląsk noted a PLN52m loss in 1999 and 100 of the 400 employees will be made redundant immediately. That will not be the end of the sackings, the company which specialised in storing pharmaceuticals should have an employment of 150 - 160 people.
No help for steel
The state will not consolidate steel mills and Emil Wąsacz of the Privatisation Ministry has stated that the only help they can expect will come from foreign investors.
Internet metals exchanges coming on line
There will shortly be two Internet based local metals exchanges. The first will be started by Impexmetal along with an IT partner (most probably Prokom) and will trade in the non ferrous metals market. ComputerLand together with several partners is also in the advanced stages of providing a site for the steel traders.
Energy contracts to wait for banks
In mid-June the energy law should be renewed. Nonetheless negotiations with the banks have yet to begin which might resolve the problem of long term energy supply contracts which currently block 70 percent of energy sold in this country and seriously hinder plans to deregulate and privatise the sector as a whole.