POLAND - Economic Newsletter  November 24, 2004

 

Dear Friends
Happy Thanksgiving to You and Your Families

 

  U.S. Treasury Secretary John Snow in Poland

The need for more reforms to sustain economic growth, budget reforms and differences in attitudes of individual countries to joining the euro zone were the main topics discussed in Warsaw by the ministers of finance from Poland, the Czech Republic, Hungary and Slovakia and the U.S. Treasury Secretary John Snow.

  Lockheed Martin offset projects in Poland

LM had completed 17 offset commitments tied to the purchase of F-16 fighter, and filed for their approval worth a total of $1.2 BN. This accounts for 20% of LM's offset obligations. LM had started 27 projects out of 44 selected by the Polish government. Their potential combined value was $10 BN. LM proposed 9 substitute projects worth a total of $2 BN to replace 12 projects worth $150 MN that proved impossible to implement.

  Fewer bankrupties owing to economic recovery

Almost 860 firms went bankrupt in Poland during the first 9 months of this year, or 45% less than in the corresponding period of last year. The decline results from the ongoing economic recovery, Euler Hermes Zarzadzanie Ryzykiem firm reported. The largest number of bankruptcies was recorded in Mazovia, Silesia, and Lower Silesia provinces (150,128 and 102, respectively).

  Logistic City - Piotrkow Distribution Center (Central Poland)

The Center (investment of $150 MN) will become one of the best-located modern logistics-business complexes in Poland covering an area of 1 Acre. It is situated directly at the express road Warsaw – Katowice, as well as close proximity of Lublinek Airport in Lodz (the second largest Polish city). The Center is a greenfield investment and an ideal place for conducting business activity related to storing and warehousing.

  EADS PZL Warszawa-Okecie - the delivery of first Airbus A320 cockpit component

Due to new Spanish investments Polish aerospace industry participates in Airbus A320, A330/340 and A380 Family Programs. EADS PZL has started production of floor grid for nose section of fuselage for Airbus 320. Starting from 1997 and 1999 components for A320 and A340 respectively has provided PZL Swidnik SA. Stocznia Remontowa in Gdansk produced A380 Floating Transfer Station. In 2005 Goodrich Krosno SA is to start manufacturing parts for A380 landing gear shock absorber. EADS estimates that Airbus manufacturing work in Poland will grow from present $6 MN to $12 MN in 2006.

    Poland - Economy in brief

  

The Polish insurance market seems to be gaining pace, with revenues from non-life insurance growing by 7.5% and incomes from life insurance increasing by as much as 10.4% in the first three quarters of 2004, as compared to the same period last year. The life insurance segment was worth $2.6 BN by the end of September.

Cheap phone calls – Onet, one of the most popular Polish portals, has expanded its service with cheap phone calls. The new service, OnetTelefon, will allow connections with 26 countries. The cost is fixed at $0.1 per minute, which is four times cheaper than the offer of the biggest long distance provider TP SA.

 

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