Railway in Poland: Stadler Rail Beats Bombardier and Wins Contract for 14 EMUs

Mazovian Voivodship decided that it will be the Swiss rolling stock supplier Stadler Rail who will deliver 14 electric train sets for two Polish regions, Mazovia and Silesia. The Office Of Public Procurement (UZP) decided to dismiss Bombardier's protests and agree that Mazovia and Silesia sign the agreement with Stadler. It took almost 2 years to conclude the contract.

Polish companies were eliminated from the bid in the earlier phase. (see Railway in Poland: 14 electric trains for Mazovia and Silesia and Railway Industry in Poland: Bombardier Hopes Purchase EMU Repair Facilities for details)

Bombardier has still a possibility to demand further decisions on judicial way. The Public Orders Office dismissed all the previous Bombardier cancellations.

Janusz Kućmin of Bombardier decided not to comment on the UZP's decision yet. It is not yet decided if Bombardier will appeal to court.

Stadler's Flirt is the bets Poland could chose. We are starting preparations to build Flirt construction and maintenance facility in Siedlce (Mazovia) right away - said Teresa Wiśniewska, of Stadler.

(Source: Source: Railway Market Magazine, 30 June 2006)

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Insect exterminator specialist in Poland

Berson, the Dutch manufacturer of the Insectron range of insect exterminators, has appointed Insectron pl EAH 'DAG' as its exclusive distributor in Poland.

The company has extensive experience selling into the Polish market and will be supplying both resellers and end-users. The Insectron range utilises ultraviolet (UV-A) and green light to attract flying insects, particularly flies, which are very sensitive to these two light sources.

It is designed especially for industrial, catering and agricultural applications where hygiene is vital.

Examples include food and pharmaceutical manufacturing plants, hotels and restaurants, poultry, dairy and livestock farms, or grain storage facilities.

The Insectron EX range has been granted ATEX approval for use in explosive, dusty and wet environments.

It has ingress protection to IP65 and is suitable for areas where water is sprayed or where large quantities of dust or powder could cause explosions if a high tension grid was used.

The Insectron EX range is supplied with a certificate from KEMA, the internationally recognised certifying body, which is a member of the European Network for Quality System Assessment and Certification (EQNET).

The entire Insectron range is designed, manufactured and distributed from the Berson state-of-the-art facility in the Netherlands.

Source: processingtalk.com

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Bonduelle sees 50% growth ahead in Poland

The Bonduelle Group, which is specialized in the production and sales of processed vegetables, has announced its strategy for growth in Poland. The group wants to gain 50% within 5 years. Bonduelle is already active in Poland with a certain amount of success as the company is market leader in conserved vegetables. Its market share amounts 40% already, of which 75% is sold under the own brand Bonduelle.

It appears that the Polish still consume little conserved vegetables compared to other East-Europeans. In 91% of all cases consumers by fresh produce, while this share amounts 62% in France and 42% in the USA. This also represents a favourable growth perspective for the Polish market.


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CB Richard Ellis residential department in Poland

The new department is a joint venture between CB Richard Ellis Poland and CB Richard Ellis Spain and is a response to the growing international interest in the Polish residential market. Mikołaj Martynuska will be the director of the new department, which will offer services such as land development and advisory, residential investments joint ventures, residential agency, consultancy and market research, and residential development marketing. Poland has a significant number of Spanish and international developers who are seeking advice on the residential market. The company explains that the joint venture will benefit from the local knowledge of the Polish team and the experience of the Spanish residential team, who have had exceptional success in the Spanish residential market with more than 117 residential developments with a value of euro 2.315 (z..9.494) million. "With the Polish residential market developing rapidly, this seems a natural progression in the development of the Polish business. This will enable us to provide our clients with a combination of skills and contacts that will allow them to capitalize on the expanding area of residential development," said Mike Strong, chairman of CB Richard Ellis, EMEA. The UK joint venture between CB Richard Ellis and Hamptons International remains unchanged. CB Richard Ellis Hamptons International (CBREHI) is a 50/50 joint venture between CB Richard Ellis and Hamptons International and was formed to provide a residential specialist service capability to CB Richard Ellis and residential development consultancy and sales opportunities to Hamptons International (WBJ Real Estate Newsletter)

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Poland undecided on U.S. offer to build anti-missile shield: official

Polish Deputy Defence Minister Stanislaw Koziej said on Thursday that Poland was yet to make any decision on a U.S. offer to build an anti-missile shield in the country, the PAP news agency reported.

"I think that we do not have to accept an offer if it is not good for us. We do not have to have such a base on the Polish territory if it does not serve our security," Koziej said during a press conference on the future of transatlantic relations.

"No decision has been taken yet. The Polish state authorities have been convinced that the decision should not be taken in an emotional way because this is our strategic partner," Koziej said.

Currently, Poland is waiting for a more concrete offer and detailed information about whether or not Washington is going to take into account Poland's security needs and national interests, the official added.

"Poland must know if its security grows after the shield is installed on the Polish territory," Koziej said.

It is always risky if one associates only with one partner, even it is as attractive, big and strong as the United States, he said, adding "diversification is significant also in security."

Poland's Deputy Foreign Minister Witold Waszczykowski told PAP later that Koziej's statement did not mean Poland was going to dismiss the shield, but he also admitted that Poland had yet to decide whether to accept or reject it.

"This is a consistent position. Until there is a concrete U.S. offer, we are asking questions. So far we have held a few technical talks with the U.S. but the American side has not taken any decision yet," he said.

Source: Xinhua

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Germany : Polyester fibres maker Trevira starts production in Poland

On the 12, June, manufacturer of polyester fibres Trevira started production of texturised yarns in Zielona Gora, Poland. As announced at the start of the year, Trevira has transferred to Poland part of production from its plant in Silkeborg, Denmark.

Zielona Gora is only some 60 km from Guben and it is here that Trevira has found and rented a suitable production hall and now the first 13 of some 45 employees have been found and recruited. The manager at the new site is also new to Trevira: Andrzej Majewski is an engineer with some experience of the car industry, most recently in R&D. On July 1, 2006 he takes over as Works Manager at the new site.

“This was bound to be a bitter decision for our colleagues at Silkeborg“, says Trevira CEO Jörg Hellwig. “But there was sadly no alternative to transferring KDK/chenille to a lower cost location. To remain competitive in future we need to make manufacture of products that are especially wage intensive more cost effective.

The only other possibility open to us would have been to remove this product group from the market, which would have had dramatic results on our business overall, since all our big customers in filaments take these special products. With the transfer to Poland and the wage costs in place there, we are again earning with these filament yarns, to the benefit of the Trevira Group”.

Trevira, a company of the Reliance Group, is recognized internationally as the specialist manufacturer of high-tech polyester fibres and filaments, making, in close collaboration with our partners, textile products that epitomise the highest functionality.

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Winter flights to Poland from £21/€26

Centralwings will launch its winter flight schedule on Friday, June 30. Between Friday, June 30, and Sunday, July 9, one-way tickets for selected flights from the airline’s new schedule will be on sale from £1 plus the fixed passenger’s fee of £19.89.

If departing from a eurozone country, one-way flights will cost €1 plus €24.89 fixed fee.

Visit the website to check the new schedule. Currently, Centralwings flies from Gatwick airport to Krakow and Warsaw. From Edinburgh, there are flights to Gdansk, Katowice and Warsaw.

The airline also flies from Irish airports: Shannon to Warsaw and Dublin to Gdansk, Wroclaw and Katowice.

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Railway in Poland: EURO 1bn Euro to Modernize Polish Railway Lines

PKP Polskie Linie Kolejowe (a company managing Polish railway infrastructure) wants to spend 1 bln Euro on infrastructure repair next year. However, experts doubt the railway company's announcement.

-This is the first year when we receive planned financial assistance due to system solutions and not only our resolute requests - says Zbigniew Zarychta, the member of PKP PLK board.

"If expenditures and pace of modernization works do not spped up, it will take 160 years only to maintain and repair the 21.000 km of tracks managed by PKP PLK" - he added.
Source: railway-market.pl

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Poland to offer multilingual hotline

With record numbers of tourists flocking to Poland aboard budget airlines, Polish police have decided to open a multilingual information hotline for non-Polish speakers, police headquarters in Warsaw confirmed on Tuesday.

The hotline line will provide tourist information in English, German and Russian and is set to run through peak tourist season between June 30 to September 30.

Visitors arriving in Poland will receive flyers detailing the free land line number( 0 800 200 300) and pay cell hotline number (+48 608 599 999).

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OECD: Economic Survey of Poland 2006: Executive Summary

Poland’s growth performance since 2004 suggests that the process of catch-up with higher-income countries has been renewed. But an improved balance of macroeconomic policies and further efforts to improve structural policies are needed to sustain and accelerate convergence.

Monetary policy may have temporarily been somewhat too cautious, but it would be easier for the central bank to relax if fiscal policy were put on a sustainable footing, with consolidation focused on social transfers, which have many adverse work incentive effects.

Links between the education system and the labour market are still insufficient, and the financing of tertiary education is leading to both inequity and inefficiency.

Weak performance on adult training, reliance on passive income support and too little attention to job-search or mobility requirements contribute to the high level of structural unemployment.

Growth has been held back by poor framework conditions for entrepreneurship and innovation.

Seek a better balance of monetary and fiscal policies

The National Bank of Poland has acquired a reputation for inflation aversion. It may no longer need to be quite so cautious and could afford to do more in the future to test the limits of available capacity. Although the budget deficit improved in 2005, this was partly due to one-off factors. Clear expenditure priorities need to be defined and enforced, preferably within a multi-year planning framework. Social transfer payments absorb too large a share of public spending and GDP and should be better controlled.

Consolidate and extend the education reforms

Reforms of compulsory education have decentralised education management to local governments. Further steps are needed to align financial and management responsibility with accountability for performance and to ensure flexibility in allocating resources as needs change. Expansion of tertiary education has increased human capital formation, but it is inefficient to prevent public institutions charging fees; a concomitant reform of student grants and loans could increase equity and overall resources.

Boost employment with active labour market policies and by making work pay

Poland’s very poor labour market performance is partly due to the costs of structural change, but many social transfer payments and the large tax wedge act to reduce employment. They need to be changed to strengthen incentives to work. The public employment service must increase its emphasis on job-activation, making more use of adult training as well as job-search requirements for benefit recipients.

Raise investment and growth by reducing regulation and improving conditions for entrepreneurs

Sluggish investment and low innovation activity are related to Poland’s high degree of regulation; this is due mainly to high public ownership, perceptions of an ambivalent attitude to foreign investment and a considerable burden of bureaucracy, though progress has been made in recent years. Without improvements in all these areas, measures to improve flows of finance and information to small companies and innovators will be less effective.
Source: www.noticias.info

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OECD says Poland could cut rates further without boosting inflation

The OECD said Poland could cut interest rates further without boosting inflation.

In its annual report on the Polish economy, the OECD noted that several analysts have criticised monetary policy as too cautious, with inflation frequently undershooting the central bank's target range.

It acknowledged that inflation below the bottom end of the National Bank of Poland's target range of 1.5 to 3.5 pct 'may be a sign that monetary conditions have been too tight'.

The central bank's monetary tightening 'most likely delayed a rebound from the growth slowdown' in Poland in late 2004 and the first half of 2005.

'Monetary conditions at the beginning of 2006 still appeared to be relatively tight, although uncertainty as to the fiscal stance after the election period, volatile energy prices, and uncertainty as to the transmission of the past energy price increases can explain the bank's cautious approach to further easing,' it said.

'But the forecasts in the April inflation report suggest that further easing would be unlikely to put price stability at risk,' it said.

The OECD said exchange rate movements have had a big effect on monetary conditions in Poland, which has yet to set a target date for entering the euro zone.

'Joining the euro area would reduce this source of volatility and uncertainty,' it said.

It assessed the likely cost of delaying euro zone entry as small if monetary policy is sound.

It called on Poland to use the extra time to improve flexibility in product and labour markets and to put public finances in order.

The OECD said Poland's fiscal policy may also be a key factor determining the room for manoeuvre of monetary policy.

'The current level of the general government deficit is too high, and the government's plans as described in its convergence programme are not very ambitious,' it said.

'General government debt is not excessively high -- at the end of 2005 it was about 48 pct of GDP according to national definitions -- but it is increasing,' it said.
Source: www.forbes.com

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Gallaher warns of tough markets in Sweden, Poland

Gallaher, whose cigarette brands in Britain include Benson & Hedges and Silk Cut, said its cigarette volumes rose 4.4 percent in the first five months, after a first-quarter 6.7 percent rise, as it said trading was in line with its expectations.

The world's fifth-largest cigarette group was giving a trading update towards the end of its half-year, and ahead of its first-half 2006 results due in early September.

It said due to tough markets in Sweden and Poland and spending on a new plant in Singapore, first-half earnings before interest, tax and amortisation (EBITA) in its so-called rest of the world region will be sharply down on 2005.

The company earns 70 percent of its profits from the shrinking cigarette markets of Britain, Ireland, Austria and Sweden and, to offset this, has been expanding into the former Soviet Union.

Analysts expect higher growth from the former Soviet Union will marginally offset flat annual profit growth in the rest of the world region and push group EBITA forecasts for 2006 up 1-2 million pounds to 687-688 million pounds ($1.25 billion).

Gallaher shares were one of the top 10 losers in a generally firmer FTSE 100 index, being off 0.9 percent at 820-1/2 pence by 0920 GMT.

he Swedish duty-paid cigarette market fell 9 percent in the first 5 months after a tax rise in January and a smoking ban in public places in June 2005. Gallaher also lost market share in Poland where it did not cut prices.

It added that trading in its Europe region continued to be challenging especially in Austria and Spain, and first-half EBITA was expected broadly flat although full-year profits in the region are expected to be marginally ahead of 2005.

The group has suffered from higher taxes, cheaper Eastern European brands coming into western markets as well as lower tourist numbers and workplace smoking bans, while weak pricing hit Austria and sharp price cuts Spain.

In the UK, which accounts for nearly half of group profits, Gallaher held its 38.7 percent market share in the first 5 months, similar to the first-quarter, and expected EBITA to be more weighted to the second-half after a May price rise.

Rival Imperial Tobacco gave its latest share at 45.2 percent share driven by its Lambert & Butler and Richmond brands.

In countries of the former Soviet Union such as Russia, Kazakhstan, and Ukraine, which make nearly 12 percent of group profit, analysts expect the region to show around 20 percent profit growth in 2006 compared to 17 percent in 2005.

Source: By David Jones

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McData Scores Win In Poland

Broomfield, Colorado-based McData has scored a new win for the company's fabric switching hardware in Poland, saying this week that PKO Bank Polski will use its equipment. PKO is the largest commercial bank in Poland. The bank has deployed McData's 10000 Director and 4700 Fabric Switch products as part of a system upgrade. McData is a developer of switching and networking products for Fibre Channel and other storage area networks.

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Autostrade buys 21.7 pct in Poland's Stalexport, may raise to 66 pct

Autostrade SpA said it will acquire 21.7 pct in Polish group Stalexport SA for 17 mln eur by subscribing to a capital increase, and may bid for 66 pct of the company at a later stage.

The initial stake will be for 34.2 mln newly-issued Stalexport shares at a price of 2 zloty each.

Autostrade said it may subscribe to a second recapitalisation, which would raise its stake to 50 pct plus one share, also at 2 zlotys each, for a total of 47 mln eur.

Once it passes the 50 pct threshold, Autostrade will be required by Polish law to launch a takeover offer for up to 66 pct of Stalexport's capital, it said.

The second capital increase is conditional on Stalexport shareholders' approval, the sale of the company's steel activities, and regulatory clearances.

Stalexport, a Warsaw-listed company, operates in the steel business and holds a concession to operate the Cracovia-Katowice motorway until 2027, it said.

Autostrade said it intends to keep Stalexport listed.

Autostrade and Stalexport are bidding for the construction and management of two new motorways in Poland, the Strykow-Pyrzowice and the Varsavia-Strykow, it said.

Unicredito Italiano SpA, West LB, and Core Investments Group are acting as advisers to Autostrade.


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EU funds transform Poland

Two years after Poland joined the European Union it is clear that Polish regions have exploded into activity and wasted no time to win EU subsidies in an effort to catch up with the old member states.

Pawel Tynel, an analyst from Ernst & Young, explains.

“Polish regions have been doing pretty well. They have applied for two times more money than they could receive. It shows that the activity of the local authorities is huge. Also enterprises are very active.”

The race for subsidies was tough and local governments used various arguments, including some quite original ones, to make their point. The mass circulation Gazeta Wyborcza reports how a local community argued that construction of a cemetery chapel was a road investment.

When it is built, funeral processions will stop damaging road surfaces. It did not get funds, alas. But another one, which said that the construction of a waste disposal system will create equal prospects for men and women, won the badly needed money.

Generally the focus is on improving local infrastructure, health care, education and sports facilities. The mid-northern Kujawsko-Pomorskie province is building a broad-band regional light fibre network. It is a pilot project in Poland and Europe, says a spokesman at the province head office Miroslaw Radzikowski.

“This project will improve access to broadband information services. It will link health care, culture and administration institutions, making it possible, for example, to hold medical consultations with experts in distant hospitals or to have access to library and museum collections.”

Starting from 2007 until 2013 each Polish province will receive about 1 million euro for development. For some regions, like the central Mazowsze, it will be almost three times more than before. Other provinces will be showered with money – Opolskie will have fifteen times more money to spend. Will they be ready to cope with such funds? Pawel Tynel believes that they will.

“These last 2 years have been an extremely fruitful learning process. Many people on the local level but also on the ministerial level have gained experience, which will be helpful in the next budgetary period. True the level of support if five times more than before which may be an obstacle. There has to be money for the local authorities so that they can invest it and then have it reimbursed.”

Polish regions are improving their condition with the help of EU funds and the fast changes are making the local people show interest in what is happening next to them in a process which leads to strengthening the civic society in Poland.

Source:By Krysia Kolosowska

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7 million mobile phones to be sold in Poland in 2006

A total of 7 million newly made mobile phones will be sold in Poland in 2006, up from 6 million in 2005, Grzegorz Gierejko, director of the leading French high-tech company Sagem Communications' Polish subsidiary, told PAP news agency on Monday.

The Sagem projection echoed an earlier estimate by South Korean group Samsung which also predicted a rise of 1 million pieces in mobile phone sales.

Sales of mobile phones in Poland have reflected new trends that are present in the EU market, such as a growing popularity with multimedia phones with camera and MP3 player functions and large displays, which account for 30 percent of the Polish market, said Sagem's GSM sales manager Piotr Lewczuk.

The business sector, in particular, is showing a liking for mobile phones with Bluetooth, push-to-talk and videoconference capabilities, said the manager.

Source: Xinhua

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GM to build Chevrolet Aveo in Poland - report

General Motors Corp is close to announcing that it will build its Chevrolet Aveo small car in Poland, according to the pre-release of an article to appear in tomorrow's Automotive News Europe.

Citing sources, the magazine said the move will help GM solve capacity problems.

The sources said GM will announce a joint venture with Ukrainian automaker UkrAVTO to build the Aveo at the 300,000 capacity FSO assembly plant just outside Warsaw.

Polish carmaker FSO would initially build around 25,000 Aveo units starting by the year end, with production expected to increase significantly within a short time.

UkrAVTO is the majority owner of the FSO Poland plant and Ukrainian auto manufacturer ZAZ.

Commenting on the report, the head of GM's works council in Europe, Klaus Franz, said this move would lead to additional capacity reductions at GM plants in Europe, and warned that it could result in transfer of some production of GM's high volume Opel/Vauxhall Corsa small cars to central Europe from Western Europe.

The Corsa is currently built in Eisenach in German and in Zaragoza in Spain.


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Poland, after 2 years in EU, is riding a property wave

After running a property development business in London, Colin Halliwell and his Polish girlfriend, Malgorzata Kuriata, moved to another land of opportunities: Warsaw.
For more than 1 million zloty, or $313,000, they bought a prewar house of 200 square meters, or 2,200 square feet, in the city's prestigious Mokotow district. They plan to add another floor, renovate the whole building into three luxurious apartments and then sell. Since their investment about a year ago, prices in the neighborhood have already gone up by more than a third.
"We looked at what has happened on the property markets after Spain and Ireland entered the EU, and we thought, there must be a boom," Kuriata said.
And there has been.
Since Poland entered the European Union two years ago, residential prices have soared as the growing economy and falling interest rates prompted the country's newly created middle class to buy their first homes since the fall of communism. But there was a limited supply, and, due to the lack of master plans for development and lengthy permit procedures, construction has not been able to keep up with demand.
According to a recent report by the Knight Frank real estate agency, sale prices in Warsaw last year grew by 10 percent to 20 percent, depending on location, with the most significant increases - as much as 30 percent - in the central Srodmiescie district and in Mokotow, both areas dotted with old buildings that have recovered their prewar elegance after costly renovations. Apartments in the densely developed Kabaty district, along the only Metro line, have also experienced steep increases because the city lacks good public transportation and has constant traffic jams. Even cramped apartments in drab communist-era housing projects and the decaying prewar buildings on Warsaw's right bank are now more costly.
The growth has not been limited to Warsaw. In the first four months of 2006 prices have risen by 14 percent in Krakow, 13 percent in the tri-city chain of Gdansk, Sopot and Gdynia along the Baltic, and as much as 20 percent in the historic city of Wroclaw, in the southwest.
Selected investments have brought even higher returns. For example, there was a 48 percent increase in prices between June 2005 and April 2006 at the Marina Mokotow, a sprawling 14-building development in Warsaw that was financed by the state-owned PKO Bank Polski, Poland's largest bank, and the European Bank for Reconstruction and Development. Also, the large Salwator City development in Krakow, which has views of the Old Town, had a 64 percent price increase between November 2005 and April 2006, according to redNet Property Consulting in Warsaw.
"The market is crazy," said Marek Strzelecki, 40, a Polish professional who has been looking for a three-bedroom apartment in Warsaw's Mokotow area for a year. "Prices are rising in your eyes."
Lukasz Madej, director of redNet, said: "This year will be another hot year. The average price of 5,500 zlotys per square meter in Warsaw is still low compared with other EU cities. It will catch up." That is the equivalent of €1,360, while, for example, the average price per square meter in Madrid is €5,000 and in Dublin, €4,300.
Analysts expect the country's urban population to grow - only 4 percent of Poland's population lives in the capital, compared with an average of 10 percent in other EU countries - and for its housing supply to lag behind demand for several years to come. According to Knight Frank, Warsaw now needs some 103,000 housing units but construction began on only 10,000 in 2005.
Meanwhile, mortgage lending grew by 30 percent, to 45.8 billion zlotys, at the end of last year. And, with the economy expected to increase by more than 5 percent this year, further growth is likely because home loans account for only 5 percent of the country's gross domestic product, about seven times less than the average in EU countries.
Encouraged by the financial signs, foreigners have been investing. They make up 5 percent to 7 percent of all buyers countrywide, but in selected developments - like Miasteczko Wilanow, or Town of Wilanow, built on Warsaw's outskirts by the Spanish developer Fadesa - foreigners accounted for about 90 percent of the sales.
"It's mostly Irish and English who bought investment properties in Spain, and perhaps in France, and now are looking East," said Steven Doran, a Briton who used to be the mortgage manager at Bank Zachodni WBK in Warsaw. Doran is now an owner of Capital Properties, an agency that helps foreigners buy property in Poland.
But experts caution that such investments, while generally promising, are not without their risks. "Poland is not Spain," said Dror Kerem, president of Ronson Development in Warsaw. "It does not attract so many tourists or retirees; people don't buy second houses here."
In addition, Polish law is very protective of tenants' rights, so evicting a tenant who does not pay rent could be a long, drawn-out process, and new units are sold unfinished, so completing them increases the initial costs.
In the secondary market, which frequently involves renovating and reselling prewar buildings, as Halliwell and Kuriata have planned, the fact that only about 15 percent of the Warsaw area has master plans means that investors are likely to run into obstacles. For example, their project has been delayed for months because officials cannot decide whether the renovation needed official approval.
Another reason for prudence is that price growth has been so steep in some segments that future yields may be smaller. For example, some apartments already cost €4,000 per square meter or even more, as in the Belvedere Residence, near Warsaw's historic Lazienki Park, where prices are €6,000. "This is already pretty high, even for the old EU countries," so the yields will not increase quickly, Madej said.
Over all, price growth in Warsaw and Krakow is expected to slow - most analysts expect a total of 10 percent to 15 percent over the next five to seven years - while the markets in smaller cities begin to emerge. For example, a loft with 5.5-meter-high ceilings in a former factory in Poznan, in western Poland, is still only 3,500 zlotys per square meter.
"Make your choices well," Kuriata said. "The market is such that one cannot lose, but one might make much smaller profit than he could have made."
Source: By Beata Pasek www.iht.com

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Heinz to Strengthen in Poland

22 June 2006 - As part of its strategy for 2007 and 2008, HJ Heinz has announced that it plans to invest in key segments including ketchup, sauces, ready-to-eat dishes and snacks. In 2007, the company wants to introduce over 100 new products and increase sales by 3-4 %. Heinz also announced that it would focus on its emerging markets, such as Russia, China, India, Indonesia, and Poland.

In Poland, Heinz employs 650 people and has two plants: Pudliszki and Miedzychod, both of which will be expanded.
The food producer said that it will focus on the Pudliszki brand first of all by developing their products and by introducing new ones, with a particular focus on sauces (ketchups, mustards, etc.) and ready-to-eat meals.

Most recently, In May 2006, Pudliszki soup concentrates were launched on the market, with four new flavours: cucumber concentrate soup 345 g, tomato soup 360 g, beetroot soup 375 g and zurek (soup made from fermented rye flour) 350 g.


In a written statement, Heinz Polska told FLEXNEWS that the 2006 financial year was very successful for Heinz in Poland. The company reached an 11% increase in net sales compared with the previous year. As a result, profit also increased. Net sale in Poland totaled PLN 274.5 million (67.5 million euro).

Heinz Polska also informed FLEXNEWS that Pudliszki is the leading brand on the ketchup market with a 20% share and 36% in tomato pastes. Both Pudliszki and Miedzychód brands have a 27.3% share in the ready meals sector which gives them the first place. Furthermore, the Pudliszki brand is second in the market in terms of hot sauces (19.5%) and pasteurized vegetables (22.3%).


The statement also mentioned that the greatest competitor for HJ Heinz Polska is Unilever which offers products in several categories: ketchup with two brands Tortex (18.4%) and Hellman's (10.4%). Unilever also produces Knorr hot sauces (17.4%).

Competition also comes from Agros, who is the market leader for hot sauces with its Lowicz products (37.1%). Agros is also second in the tomato paste market (15%).

In the vegetable market, Heinz competes with the leader Bonduelle (27.5%). Finally, for ready meals, their main competitor is Pamapol (26.6%).

Source: flexnews.com

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Boeing to open its centre in Poland

The world largest aircraft maker Boeing plans to open its centre for Central and Eastern Europe in Warsaw. The decision gave rise to hopes for further investment, contracts with Polish companies, and also new technology. It was triggered by an increase of competition on the airplane manufacturing market, and the growing popularity of air travel in the region. The American giant faces competition from the rapidly growing European Airbus, as well as Brazil's Embraer whose planes have been bought by Polish national airline LOT. The head of the new centre will be Henryka Bochniarz, ex finance minister.


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Poland to get 21 billion euros in aid from EU for infrastructure, environment

Poland will get more than 21 billion euros (26.6 billion US dollars) in aid from the European Union between 2007 and 2013 under an "Infrastructure and Environment" program, the state PAP news agency reported on Thursday.

The aid package includes 4.2 billion euros (5.3 billion US dollars) to be used for environmental protection and 1 billion euros (1.3 billion US dollars) for power sector development, Deputy Regional Development Minister Jerzy Kwiecinski was quoted as saying.

The program is set to be approved by the government next week. The final version for negotiations with the European Commission will be drafted at the start of October, Kwiecinski told a news conference.

The Cohesion Fund and the European Fund for Regional Development are the contributors to the program, and will for the first time finance Poland's power sector, said Kwieciński.

Source: Xinhua

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