Polish Business Survey
Philips demands SEZ expansion
On 20 November the economy ministry will consider a request of Tczew-Żarnowiec special economic zone concerning the request to include part of the town of Kwidzyn in the zone. This is seen as the only way of stopping Philips closing its television factory in the town where 2,400 people are employed. Local authorities in Kwidzyn have already agreed to the move.
Andrzej Gołyga, MD of Philips Consumer Electronics Ltd, has promised that the town will be compensated for its loss of rates and the part of direct taxation it receives. If the factory is to be included in the Tczew-Żarnowiec zone the company will not have to pay income tax for ten years. Profits recently increased from PLN55.6m in 1998 to PLN89m the following year.
Back from the brink
Jelenia Góra based Beloit Poland which produces machinery for the paper industry was saved from bankruptcy by the American Braaten Company and Polish Inwestycja 2000 who bought it. The former American mother company, Beloit Corporation part of Harnischfeder Industries, went bust last year.
The company must of course rebuild its network from zero as used to use that of Beloit Corporation. At the same time it also hopes to diversify and supply machinery to the construction industry.
Steel privatisation planned
This month the treasury will announce a tender for the privatisation of the Huta Stalowa Wola steelworks. At the same time management has requested that the government add PLN212.7m to its capital.
Y2K virus continues to strike
In the first half of this year IT companies expected bad results and they got them. Yet results for the first three quarters of the year continue to be bad leaving little hope of improvement.
Aiming for retirement success
The Pekao bank is hoping that its pension fund will reach the same position on the market as the bank itself in its own sector. To this end it intends to consolidate with other funds. This scheme is planned to last for the next two years.
Forecasts for the food industry do not look good. Losses already forecast from the first three quarters are likely to be confirmed and enlarged by the end of the year. Apart from a few exceptions most will be posting losses.
Interia goes alone
Readers may remember that on 17 October we reported that PZU NFI Management was considering investing in the Interia portal. The company decided against this plan to take twenty to thirty percent of the portal. It would now seem that Interia will attempt to enter the stock market alone. Earlier this year it failed also to come to an agreement with Lycos.
After the first ten months of the year, figures from the brewing industry show a seven percent increase for the sector. Total sales to the end of October were just over 2bn litres. By the end of the year this could reach 2.4bn litres. Żywiec has improved its position at the top of the brewing league as has Kompania Piwowarska in second place.
Insurers to decide
At tomorrowŐs AGM of the shareholders of insurers PTR, a decision will be made on a possible stock market entry. Management is against this proposition.
Daewoo unworried by bankruptcy
Representatives of Daewoo in Poland have stated that bankruptcy in Korea will not threaten the company in this country. Both analysts and other auto companies are treating this somewhat sceptically.
Corus less certain on HK Long
It appears that the investment of Corus in HK Long, a subsidiary of the Huta Katowice steel works, is less certain. Negotiations were held last night between Mirosław Wróbel, MD of Huta Katowice and Chris Hollick of Corus (formerly British Steel). The results of those talks are now known. It would seem that the British — Dutch concern is unhappy about unsuccessful negotiations between Huta Katowice and its debtors as well as government plans to consolidate the sector. The position of the EBRD, which was to be a financial backer, is also unclear.