Higher Sales in Industry

 The first six months of 2004 were successful for Polish industry: in June, sales climbed 15.7 percent and since the beginning of the year - 17.6 percent. Analysts estimate that the economic growth rate in the second quarter will total about six percent. Sales in several heavily exporting industrial branches continue to grow fast. This concerns mainly carmakers, who boosted sales up to nearly 80 percent. However, the remaining industrial branches also record good results, which means that not only export is important but also the growing domestic demand.

Optimism in Industry and Building Engineering

In July, Polish industrial and construction companies assessed market conditions better than in June. The reason for their optimism was both the current state of the order portfolio and hopes for its enlargement in the coming months. Thirty-one percent of companies investigated by the Central Statistical Office informed about an improvement in market conditions. Companies receive more orders than they expected last month; they have no difficulties with reserves or settlement of obligations and expect an improvement of their financial standing. Further price hikes are in the offing but on a scale smaller than in June. Motor vehicle makers fare the best (market condition index for that branch is 30 points), along with producers of radio and television equipment (24 points). The influx of orders to construction companies caused that 28 percent of them recorded an improvement of market conditions. Most of them expect large orders also in the future, counting on an improvement of their financial situation. This, most often than not, concerns state-owned companies.

Meat Sector - Investment Boom

Export of Polish meat to the European Union may soon rise 30-40 percent as the branch is experiencing an investment boom. This year may bring record-breaking investments worth more than two billion dollars. Investments are made in both small and big plants for years present on world markets. Indykpol will spend 30 million zlotys, Animex - 20 million, Sokołów - 37 million and Morliny - more than 20 million zlotys. The Duda SA Meat Plant from Grąbkowo is an investment potentate. The company signed the fifth contract with the Agency for Restructuring and Modernisation of Agriculture for financing from the EU SAPARD programme. In all, the Community will spend 9.9 million zlotys on investments in that plant. The Końskowola Meat Factory wants to build a new production line for 50 million zlotys. The second largest meat factory in Lublin province will open in Wierzejki this August. Its owners - Jan and Marek Zdanowski - spent ten million zlotys on the modern plant, cold stores and storehouses. The factory will produce 30 tons of meat and meat products a day. Experts predict that the investment boom in the meat sector will last for at least two coming years. Next to the growth of export, big investment projects result in new workplaces and better effectiveness of companies. The fashion for Polish food in the European Union may mark a long-term growth of sales.

Polish Companies Among the Biggest

Bank Pekao and Polish Telecom are among the 1,000 biggest world companies in the ranking run by BusinessWeek. The classification was based on the market value of companies. Bank Pekao with its capitalisation of 5.42 billion placed 985th and Polish Telecom - with the same sum - 987th.

Development of Low-Cost Air Traffic

During the first six months of 2004, Polish airports serviced 20 percent passengers more than a year ago. This was the biggest growth during the past decade and the same concerns prices. The explosion of air traffic is an effect of the emergence of low-cost lines on the Polish market and price rivalry among carriers. During the first six months of 2004, the number of passengers in Polish airports grew 600,000 as compared with last year and this may be the beginning of a boom. There can be 1.7 million passengers more in all of 2004. The number of connections offered by both the low-cost airlines, new on the Polish market, and the traditional carriers, is growing dynamically. Today, planes belonging to six low-cost airlines fly from Poland to 20 cities in Europe.

Growing Number of Credit Cards

The number of credit cards issued by the biggest Polish banks is growing slowly but systematically. At the end of June, customers of 12 banks had nearly 16.7 million cards with which it is possible to pay cash from more than 7,900 automated-teller machines. The number of credit cards issued by the biggest retail banks grew more than 1.9 percent or 29,000 cards in the second quarter, of traditional bank accounts - 1.5 percent and Internet accounts - 21 percent. The Raiffeisen Bank Polska recorded the biggest growth rate both in the second quarter and during the six months. The number of cards in that bank during the first six months of this year increased 54 percent (up 50,000 cards) and from April until the end of June - 26.3 percent (up 29,500 cards). In the first six months, the mBank issued much more cards than other banks. Its customers had 470,200 cards, 75,000 more than at the end of 2003. The PKO BP, the biggest retail bank is a decisive leader in terms of the number of cards issued. In the second quarter, it issued 173,500 new cards. The bank's retail customers possess more than five million cards. The number of teller machines grows the fastest in co-operative and small banks.

Śnieżka Invests in Belarus

Śnieżka Dye and Varnish Factory has taken over a majority block of shares in the Belarus-Polish Śnieżka Company. The company's share capital is 124,500 dollars. The company deals in the production of dyes, varnishes, solvents and wholesale and retail trade in building materials. In 2003, the value of Śnieżka's export in Belarus amounted to 6.4 million zlotys or 11 percent of the foreign company's overall sales.

Maco Pharma: the Second Plant in Poland

The French Maco Pharma medical branch company wants to build the second production plant on the territory of Wrocław Technological Park. The project will cost several dozen million zlotys and will offer employment to a staff of 200-400. The company's representatives expect that production will start at the end of 2005 at the earliest. Since the end of 2003, Maco Pharma turns out in Poland filter sets for blood drawing and preparation.

        German Man and Swiss Biella Invest in Starachowice Special Economic Zone

 115 new jobs have been added since the beginning of this year at Starachowice plant of Man Star Trucks & Busses, Polish manufacturing subsidiary of German MAN Nutzfahrzeuge Gruppe.

        Siemens Expands Its R&D Center in Wrocław

 Within the next 3 years Siemens AG will invest additional €15 million in its Wrocław R&D center increasing the present employment by some 40% by the end of 2005.

        Faurecia will Invest €10 Million in Gorzów Wielkopolski

 French Faurecia, the second biggest producer of car components in Europe, will invest € 10 million in Gorzów Wielkopolski creating 100 new jobs. In June French company purchased the 2.3 ha plot next to its existing plant in Kostrzyn-Słubice Special Economic Zone

        Outsourcing and Investment opportunities in Poland

 For economic information on the Polish market potentials please contact: