POLAND - Economic Newsletter  January 10, 2004

 

Pratt & Whitney sponsors Materials & Structures Research Center in Warsaw

Pratt & Whitney, a United Technologies company based in Connecticut, USA, a world leader in the design, manufacture and service of aircraft engines, space propulsion systems and industrial turbines is the manufacturer of the F100 engines that will power Polish F-16s. Materials & Structures Research Center has been established as a part of the offset commitment following the purchase of F-16 Falcon fighter aircrafts for Polish Air Force.

More than 40 machines for a variety of tests have been installed, special equipment which allows testing of thermal shock cycles as well as several dozens of computing stands where analyses of thermal durability and processes of materials fatigue, breaking and creep will be made. The customers of the Center will be Pratt & Whitney, other foreign manufacturers of combustion engines and Polish companies implementing new materials. The Center plans to expand its services to both aerospace and non-aerospace business in domestic and international markets.

In March 2002 Pratt & Whitney paid $70 MN for a 85% stake in one of the three largest aerospace companies in Poland, WSK “PZL – Rzeszow” SA. As a result WSK manufactures world-class engines using the latest lean manufacturing techniques and progressive business practices. Now, WSK is the largest and most modern engine plant in Central Europe, also leads one of the most interesting cluster initiatives in Poland.

TRW Automotive – auto part production in Poland

TRW Automotive, based in Michigan plans to open an R&D center in Czestochowa, Poland focused on airbags and seat belts for 238 engineers. The center is the next investment of TRW in Poland. Other Polish subsidiaries of TRW manufacture: in Czestochowa (3,300 employees) airbags, seat belts, and all kinds of auto safety locks and in Gliwice steering systems.

Economic Freedom in Poland is up

Experts from the US foundation “Heritage” and the Wall Street Journal noticed an increase of the business liberalism in Poland. In the nearly issued report “Index of Economic Freedom” Poland was placed on the 41st place (up from the 56th for 2003). Five categories was assessed: banking system, monetary policy, trade policy, taxation and property rights.

F-16 offset – ammunition for F-16 from Poland

MESKO – based in Skarzysko, Poland plans to produce ammunition for F-16 jets and non-guided missiles with the technology obtained from the Scandinavian military corporation NAMMO – Nordic Ammunition Company. The contract (if negotiated – the value of $876 MN) could be a part of the Lockheed Martin offset program for Poland.

Privatization in Poland in 2005

Ministry of the Treasury plans to privatize 150 state-owned companies in 2005. The approximate value of these offers is $2 BN. The biggest corporations to be privatized operate in the energy and chemical sectors. Among them are: ENEA – electric energy distributor, PGNiG – distributor of oil and natural gas, manufactures of ammonium fertilizers in Pulawy and Police, Lotos Group cosnsists of refinery in Gdansk and three smaller refineries.

Radio commercials market in Poland

Experts from the CR Media Consulting forecast 9-14% increase of spending for radio commercials in 2005-2005. However TV stations take a much bigger stake in the advertisement market. The radio broadcast stations are very diversified in Poland and consists of more than 200 companies. The biggest radio stations are based in the capital; Warsaw and most of them are spread through the whole country. The leading stations in the value of commercials are: RMF FM, Radio Zet, Eska, Radio PiN, Radiostacja, and Polish Radio.

 

Outsourcing and Investment Opportunities in Poland

    

    For economic information on the Polish market potentials please contact:

 

 

Polish Information & Foreign Investment Agency ul. Bagatela 12 00-585 Warsaw, Poland tel.: (+48 22) 334 98 00 fax: (+48 22) 334 99 99 e-mail: post@paiz.gov.pl

Commercial & Economic Division Consulate General of the Republic of Poland 12400 Wilshire Blvd. # 555 Los Angeles, CA 90025 tel.: (310) 442 – 8500 x 114 fax: (310) 442- 8526 e-mail: tradeconsul@earthlink.net