Polish Business Survey
Cosmetic uplift
After a long downward run, yesterday the stock market decided, at last, to change its course. Unfortunately it is clearly too early to start getting excited, yesterday s small increase was only cosmetic and was not accompanied by an increase in turnover. Without some major capital being pumped into shares, it is hard to see any upwards trend lasting.
Internet research company close
It is rumoured that Wirtualna Polska, Onet and Agora are about to sign a contract to form a company that would be engaged in researching the internet.
Consortium to develop Biała Podlaska
The Polish KRWZ together with it main shareholder the Turkish developer Epit are about to invest USD2.3bn in the development of the site around the airport in Biała Podlaska. Vahap Toy, MD of Epit, is hoping to persuade the Polish authorities to allow tax breaks in this area and perhaps the opening of a new special economic zone. He insists that work will begin next year and the whole investment will be finished in June 2004.
The whole plan suggests that almost a completely new city of Biała Podlaska is likely to spring up. The first step is turn the military airport to civilian use, modernising its infrastructure and building passenger and cargo terminals. Further plans then call for the construction of an aquapark, hotel, casino, sports complex, housing as well as entertainment, shopping and conference centre. Finally a duty free zone is also planned.
Vahap Toy claims that 35,000 people could be employed in constructing the scheme and once finished, 43,000 people could be employed here. He believes that all contracts will be signed by the end of next month and claims that seventy international companies have shown an interest. For example, a Spanish company wants to build the aquapark and Malaysians and Americans want to build the passenger and cargo terminals.
Medical acquisitions
Enterprise Investors has invested USD10m in the company Medycyna Rodzinna, taking 90 percent of the shares. In the next three to four years EI is earmarking some USD50m for acquisitions in the medical sector.
More good news for smugglers
According to the distribution industry employers organisation ZPPD, around 460m packets of cigarettes entered Poland illegally last year, causing a loss of PLN730m to the treasury in the form of excise tax and VAT. The ZPPD has also claimed that whereas last year planned income was almost the same as actual income, by 2002 there could be a deficit of PLN6bn between the two The government thinks it will raise PLN14bn in duties in that year, the ZPPD thinks it will be nearer PLN8bn.
The reason for the fall in legal tobacco sales in the opinion of the ZPPD, is the large difference between the costs in Poland and its eastern neighbours. Furthermore recent evidence goes as far as to suggest that cigarettes may be smuggled into Poland from as far away as Croatia. As a means of comparison a packet of Marlboro costs EUR1.46 in Poland and EUR0.87 in Russia and EUR0.91 in the Ukraine. It is a well known fact that less than one percent of smuggled cigarettes are actually seized on the border. Jan Adamski, MD of the ZPPD says that the way to stop the smuggling is to change the excise policy and make the eastern border airtight.
Centrozap opens steel portal
Centrozap has combined with the Polish CZH and Euro American to open a portal to serve the steel and building industry.
A fertilising investment
A consortium made up of the Police chemical concern and Szczecin based Inmarc is now waiting for permission from the treasury to take a majority share in fertiliser producer Superfosfat.