Polish Business Survey
Electric deadline near
The deadline for the Swedish Vattentall to come to a deal with the treasury over the sale of a 25 percent share in the Upper Silesian Energy Concern (GZE) will be reached. The Swedes have got until this time to formulate a contract with the treasury on the sale and the precise conditions of the social packet. Employees were hoping for a privatisation bounty of PLN20,000 whereas the investor was offering up to PLN12,000.
More budget money for guns
The budget proposals for 2001 assume maintaining the deficit at 1.6 percent of GDP. In order to meet this plan, the government is expecting to get more from higher excise duties. Many businesspeople doubt that this would work as higher excise leads to sales dropping in several sectors. It has been noted that higher duties have led to increases in smuggling and less legal sales.
Combined harvester investment
The Plock based New Holland Bizon intends to invest USD10m — USD15m in starting combined harvester production here with an aim to exporting them to the European Union. The poor state of the Polish agricultural sector limits the domestic market which prefers to import used machines from Germany.
Poisoned deal
The reason for the failure of negotiations between Kalisz based soft drinks producer Hellena and Hortex over the sale of a disused factory may have become clear. It would appear that the heavy debts of the factory was the reason why Hellena pulled out. However another reason for a food producer to be frightened is the five tons of unprotected ammonia which is on the premises. City authorities say that this is an ecological time bomb waiting to explode.
It was reported that Hellena was very interested in purchasing the factory and had even prepared the sales documentation and notarial acts. Krzysztof Abram, head of marketing for Hellena have said that the matter is not completely closed. Before making such a decision, he said, production capabilities would have to be examined. In the summer the company needs greater production facilities so this factory was rented.
The tax office has been demanding PLN12m from Hortex on back taxes from the plant although it has now said that it is willing to negotiate.
Concorde buys glass share
The British Concorde Glass has bought a 36.1 percent share of the Kara glass works situated at Piotrków Trybunalski. Concorde Glass will be spending around GBP200,000 on improving machinery at the plant although experts think that it needs around ten times more.
Bigger profits for bank
Kredyt Bank has announced that it thinks its profit forecast will be greater than the PLN50m it originally said.
Military privatisation in preparation
The treasury has until the end of the year to choose a privatisation advisor for the Niewiadów military plant. The government will put the offer to tender on 30 November.
Big bang in Warsaw
Today it is big bang day for the Warsaw stock market with the Warset system coming on line. However stock market players are not so much excited about the new possibilities of the system rather than worried about what might happen next. The introduction of Warset was postponed and its cost has been highly criticised.
Computer shopping
Agora and Computerland have taken a decision to found a company called CHI (Centrum Handlu Internetowego). This will be a virtual shopping gallery.
Full steam at PKP
The transport ministry has until the end of November to agree to a planto commercialise the bankrupt PKP rail system. If the answer is yes it will be full steam ahead for the division of the company into twelve companies and four branches.
Winterthur changes boss
The Winterthur life insurance company is planning a major expansion of its sales network next year. This year its costs almost doubled with the obvious effect on its results. The current chairperson, Franz Fuchs, will be replaced in December by Bernard Retali.