Polish Business Survey
New factory in Katowice SEZ
The German Lucas Varity Braking Systems, part of US multinational TRW, has announced that it will invest USD7m in the construction of a factory in Gliwice for the manufacture of auto brake parts. The factory will be located within the Katowice Special Economic Zone.
Man from Mars announces growth
Retailers Mars from Gorzów Wielkopolski have announced that they will invest USD7m in the development of a network of shops selling electronics and white goods. The network currently has 80 outlets and intends to add a further twenty before the end of the year. These shops will be situated in western and northern Poland like the stores that are currently open. According to Zdzisław Kałamaga, the owner of the company, this new development will be financed from Mars s reserves and a loan from Bank Handlowy. These shops will be built in medium sized towns where there is no competition from hypermarkets.
In October of this year the company will move its HQ to the Panorama shopping centre which is currently under construction in the centre of Gorzów. Panorama has 20,000sqm of space. It is being built at a cost of USD6m and will include a mall with seventy stores.
Zdzisław Kałamaga claims that next year Mars will probably become a publically limited company. He is prepared to sell 49 percent of it in order to raise finance for continued development.
Salaries limited in State sector
Today a law limiting how much public servants and those employed in nationalised industries comes into force. Directors of State owned companies may have their salaries reduced. The law has been attacked as it will slow privatisation as better managers will flee to the private sector leaving less capable people in their place.
Hortex finds buyers
Foodstuffs producer Hortex Holding has lengthened the deadline concerning the sale of its factories in Siemiatyce, Płońsk and Środa Wielkopolski by several days. It seems as though buyers have been found and the closure of these plants is no longer likely.
NATO tender worth PLN3bn
This month the Ministry of Defence may announce a tender to find an advisor who will oversee bringing Polish military installations up to NATO standards. The full value of this project will be around PLN2.7bn — PLN3bn. Only Polish companies will be allowed to bid, 31 companies in Poland have the right to tender for NATO projects.
All of these investments will be part of NATO s programme of improving its NSIP security system. The investments in Poland will be financed 80 percent by NATO and twenty percent by Poland.
The programme will begin next year and will continue until 2008.
The Ministry of Defence must initially choose an advisor which must be approved in Brussels. This is unlikely to happen until the end of the year. Then the contractors of the projects will be chosen..
Tax breaks for some
In certain cases tax authorities can freeze payment of back tax which is still owing. A list of this cases is published annually. Yesterday the most recent list was published showing the biggest beneficiaries in the past year to have been Polmos Łódż, Stomil and Daewoo Motor Polska.
Trouble selling assembly plant
Optimus may find it difficult to sell its factory and computer brands. Branch investors are unlikely to want to pay more than PLN22m for its assembly plant in Nowy Sąd in the south of the country. As well as known brand names there are also a number of Far Eastern companies interested in the company.
Agros consolidates three companies
Agros Holding, one of the largest domestic producers of fruit and vegetable juices has founded a new company called Agros Fortuna with a capital of PLN180m. It will take over the business of the consolidated Agros companies in Łowicz, Tarczyn and Białystok. Each factory will have a different specialisation and will not be doing the same as the others which was hitherto the case. Consolidation should help the company to reduce costs and improve profitability.
A new distribution system has also been devised which the company hopes will lead to sales hitting PLN600m annually. Recent financial results of the three plants have not been revealed although it is common knowledge they are not in good shape. Despite consolidation costs profits are expected next year.
Pernod Ricard, the main shareholder in Agros, is also hoping to increase export sales and produce for other brands.
As well as production facilities the new company will take the best known Agros brands Fortuna, Karotka, Tarczyn and Łowicz.