Sumika Electronic Materials Poland Expands Production

Tokyo, Japan, July 13, 2007 - (JCN Newswire) - Sumitomo Chemical Co., Ltd. today announced that it will expand a plant for the production of light diffusion plates for LCD televisions, currently under construction at its European subsidiary, Sumika Electronic Materials Poland Sp. Z o.o. (SEMP below), located in a suburb of the city of Torun, in northern Poland, in order to meet the rapidly growing demand for LCD panels in Europe.

In recent years, the LCD display market has been seeing rapidly increasing demand for large-screen televisions, and LCD panel manufacturers are increasingly establishing operations in Europe. Therefore, Sumitomo Chemical is strengthening its local capabilities to enable timely development and delivery in response to the increasing requirements of its customers. Sumitomo Chemical established SEMP last year as its base of manufacturing operations for IT-related materials in Europe.

The Phase 1 plant currently under construction includes lines for the chip-cut processing polarizing film and the production of light diffusion plates. The line for light diffusion plates has an annual production capacity of 5000 tons of light diffusion plates, and is scheduled to start operation in November 2007. In order to meet the booming demand, Sumitomo Chemical has decided on the new construction of a Phase 2 production line, which will boost production capacity for light diffusion plates to 10
thousand tons per year. Furthermore, the Phase 2 line will be designed so as to allow for production of higher-performance light diffusion plates developed through future technical innovations to meet the demands of our customers.

The amount of investment in the Phase 2 line expansion is JPY 1.5 billion, bringing Sumitomo Chemical's total amount of investment in SEMP to approximately JPY 7 billion. SEMP's annual sales following the Phase 2 line expansion are expected to be JPY 15
The establishment of Sumitomo Chemical's European base of operations in Poland, announced in August 2006, and the currently scheduled expansion will further enhance the Company's ability to provide LCD-related materials promptly to panel manufacturers with operations in Europe and offer a broader range of flexible services to its customers.

Sumitomo Chemical will leverage the advantages of its expanded European operations to further the global expansion of its core business in IT-related materials.

Summary of SEMP:
1. Company Name:        Sumika Electronic Materials Poland Sp. Z o.o.
2. Established: September 2006
3. Location: Lysomice, Torun, Kujawsko-Pomorskie Voivodship,
Republic of Poland
4. Area: Approx. 200 thousand m2
(including space for future expansion)
5. Capacity: Polarizing film: 500,000 sets/mo.
Light diffusion plates: 10,000 tons/yr.
(after Phase 2 line expansion)
6. Start of operations: Phase 1 production line: November 2007 (planned)
Phase 2 production line: (current expansion)
Summer 2008 (planned)
7. Personnel: Approx. 400 persons
About Sumitomo Chemical

Sumitomo Chemical Co. Limited (TSE:4005) is one of Japan's leading chemical companies, offering a diverse range of products in the fields of basic chemicals, petrochemicals, fine chemicals, IT-related chemicals, agricultural chemicals, and pharmaceuticals. While expanding business worldwide and aggressively pursuing cutting-edge R&D, we continually strive to contribute to the sustainable development of society through our Responsible Care activities. For more informaion, please visit www.sumitomo-chem.co.jp.

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Poland seen top spot for Bosch-Denso diesel particulate filters joint venture

Poland's southwestern region of Lower Silesia is seen as the favorite to land a EUR 65 mln investment by a joint-venture of German Robert Bosch and Japanese Denso in a new plant for development and manufacturing of diesel particulate filters.

According to an unnamed source for the weekly Automotive News Europe, the new factory could be establish near to a Bosch plant for security and chassis systems located in the area of Wroclaw, the principal city of Lower Silesia.

The new plant with 250 new jobs would be accompanied by a research and development center that will offer an additional 50 posts for specialists.
According to official reports, the 50-50 joint venture is to be set up somewhere in Eastern Europe to start operations in 2009.

Rather than producing the more commonly used silicon carbide filters, the two companies plan to made them of cordierite - less expensive and lighter though more prone to damages from high temperatures, according to Bosch.
Source: gielda.wp.pl

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Technip wins 160 mln eur contract from PKN Orlen for Poland refinery unit

Technip (NYSE:TKP) said it has won a 160 mln eur contract from PKN Orlen to build a new paraxylene complex at its refinery in Plock, Poland.

Copyright AFX News Limited 2007. All rights reserved.

The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.


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Dominet has capital to develop in Poland

Jacek Oblekowski, the new CEO of Dominet Bank asked for PLN 100m (EUR 26.2m) and got the funds. He is ending the strategy which will help Dominet Bank to develop faster.
Dominet Bank had its capital increased by PLN 113.6m to PLN 194.5m by its new investor, the Fortis group of Belgium. Although the bank is still relatively small, it is going to develop faster now. Jacek Oblekowski who became Dominet Bank CEO in April, promised a new strategy.
“We are about to implement a new plan providing for new products, improvement of existing ones and develop the sale network”, Jacek Oblekowski said.
He wants to strengthen the bank’s position on the market of individual clients and micro enterprises.

Dominet will also take over the consumer finance unit from Fortis Bank Polska owned by the same owner. The companies will also start preparations for a merger planned in 2008.
(PLN 1 = EUR 0.262)

Etykiety: , ,

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Polish Business - Poland makes an already unfriendly business environment less friendly

Warsaw, Poland 9 July 2007 The Polish Government has increased pressure on Poland's small businesses by establishing new criminal penalties for owners and managers.

Small businesses will be examined to confirm that they have binding contracts with their employees. And they will be checked to be sure that no people have accumulated vacation time from the previous year.

What is changed is that the task has been moved from Regional Government Offices to the State Labor Inspectors.

And as of 1 July, 2007, infractions are criminal offenses.

The standard fine is 2000 zloty but fines may be as high as 30000 zloty.

The fines will be levied not against the business but against the individual owners and managers.

In January of this year the Heritage Foundation criticized Poland as being business unfriendly and pointed out what problems existed. See In Poland Freedom From Government, Corruption and Labor Freedom Weak - Report

Prime Minister Kaczynski commented that he wanted emigrant Poles to come back to Poland after they have gained experience and start a business in Poland. See Millions Of Polish Workers Want To Leave Poland - Poll

But the Heritage Foundation showed Poland to be a business unfriendly country where people would rather emigrate to the West than stay in Poland and try to run a business.

Now a business owner faces criminal penalties if workers accumulate vacation time or there is some difference in opinion between a labor inspector and a business owner over the type and terms of a contract agreed to by a business owner and an employee.

And, as an added does of deterrence, in line with the creeping centralization of power under the Kaczynski Regime, the inspections will be done by the State Labor Inspectors and not the Regional Offices.


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Ukraine and Poland Unprepared for Hosting Soccer Cup

Five years from now, Poland and Ukraine will host the European Soccer Championships. Both are struggling to find billions of euros needed to build basic infrastructure such as roads, stadiums and hotels.

Poland needs to do construction work on approximately 4,000 kilometers (2,485 miles) of roadway. But they're 10 billion euros ($13.6 billion) short with no solution in sight, according to Wojciech Malusi, who heads an association of Polish road construction companies.

Warsaw's city hall doesn't know where to get money needed for projects like lengthening the metro lines. A regional train route needs to be built along with a national sports center with ultra-modern arena needs to go up.

Finding enough money is not the only one problem. Vendors at a fairground that is supposed to be razed to make way for the national stadium, are holding out for more compensation.

"They shouldn't think that we're going to willingly leave this place. If necessary, we'll take to the streets, like the miners did. Our work place here is more important than soccer and a show for Europe," one man said.

European Union will help out

Can Ukraine and Poland play ball?

Bildunterschrift: Großansicht des Bildes mit der Bildunterschrift: Can Ukraine and Poland play ball?

At least Poland, unlike Ukraine, can count on getting some help from the European Union. Brussels has promised 18 billion euros in the next years for infrastructure plus an additional 11 billion for road construction.

Polish Prime Minister Jaroslaw Kaczynski has taken a confrontational tone with the EU. Most recently, Poland angered its EU counterparts by nearly derailing a treaty deal over disagreements about voting rights.

"The government should simply refrain from this tone that we're the tiger of Europe. We're one of the poorest countries in the European Union," Malusi said.

While the money from the EU is welcome, Poland doesn't have the necessary 15 percent co-financing the EU help requires, Malusi said.

Kaczynski urged people to be patient and not to be influenced by the "hysteria created by the media." There's no problem yet, Kaczynski said. Preparation work has started and a minister will soon be appointed to oversee the projects.

"We're only human and can't do everything at once," he said. "But we certainly will have a handle on it."

The Polish public seems less optimistic. Only half of people in a recent survey thought the country was preparing well for the 2012 games.

Ukraine distracted by political problems

Both countries need to improve their roads

Bildunterschrift: Großansicht des Bildes mit der Bildunterschrift: Both countries need to improve their roads

The Ukrainian government plans to invest more than 20 billion euros to get the country ready for the European soccer championships.

Ukraine needs to make massive improvements to its infrastructure. Streets and rail lines need to be built. Airports and hotels are not up to international standards. And it all has to be done in five years.

A political standoff has kept the government distracted. But Ivan Fedorenko of Ukraine's football association said all political parties signed on to a letter guaranteeing their support of the event and understand what it means to Ukraine.

"In only five years we must do the impossible," Fedorenko said. "Then we can invite the representatives from the European Union to the final game in Kiev and say to them: look here, we're a European country and we're ready to become part of the European community."

It's an ambitious goal. The country is still far behind European standards and won't get any money from the European Union to help get up to speed. Of the 20 billion euros, 90 percent will come from private capital, primarily from abroad. For foreign investors, the soccer championship is a signal that Ukraine is a good place to do business, said Ricardo Giucci, of the German advisory group for the government in Kiev.

But Ukraine still has an image problem. Until now, many politicians didn't worry about what the rest of the world thought. That's changing, Giucci said.

More hotel beds a priority

Ukranian fans are ecstatic

Bildunterschrift: Großansicht des Bildes mit der Bildunterschrift: Ukranian fans are ecstatic

Giucci expects a lot of foreign investors to be interested in the hotel sector. The country lacks modern hotels. Without modern accomodations, Ukraine will face a lot of criticism come tournament time, Giucci said.

Ostap Protsyk, who is responsible for international affairs in the Ukrainian host city of Lviv, said the city continues to attract more European tourists. There are currently 6,000 beds available in town. To accommodate rising interests, they could use three or four times as many, Protsyk said.

"This is not only for the European Championships, but also for normal requirements for a city with a large tourist potential," he said.


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France, Poland put IMF names in hat

France has revealed that it wants to reclaim the leadership of the International Monetary Fund and Poland said it could field a rival candidate as calls intensified for the abolition of Europe's monopoly of the job.

President Nicolas Sarkozy planned to use a Sunday newspaper interview to propose Dominique Strauss-Kahn, a Socialist former finance minister with solid political and economic credentials. Poland said it would be prepared to back former central bank governor Leszek Balcerowicz as a candidate.



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Warsaw shares set new records due to commodities and foreign fund inflows

WARSAW, 07.06.07 (Thomson Financial) - Warsaw shares set new record highs late afternoon as PKN Orlen and KGHM jumped on the back of higher commodity prices, and signs of foreign money pouring into the region kept the bull run on eastern Europe's biggest bourse alive.

At 1605 CET the broad-based WIG index rose 0.7 pct to 67,326.20 pts, while the blue-chip WIG20 increased 1.3 pct to 3.883,01, 3.0 pct away from the psychological barrier of 4,000.

'The market has no intention of falling,' said fund manager at DWS in Warsaw, Tomasz Filipiak. 'Some day the correction will happen, but for the moment investors are frightened to sell, and therefore I expect the 4,000 barrier on WIG20 to be broken next week.'

Poland's top oil refiners PKN and Lotos, as well as copper producer KGHM and gas monopoly PGNiG, led the gainers thanks to rising commodity prices. KGHM and PKN -- Friday's most active stocks -- have risen 4.8 and 2.4 pct respectively.

The news of stronger inflows of foreign money to Polish and other east European equity markets last week also helped keep the market afloat, fund managers said.

'The market's rise is driven by portfolio inflows,' said Mathias Siller, fund manager at Barings Asset Management in London. 'EMEA (Europe, Middle East and Asia) gets a little bit more of them, and rightfully so, as the region has been neglected recently.'

According to reports by Polish brokers, Emerging Europe funds reversed their recent underperformance and posted net inflows of 61 mln usd in the week to July 4. The bulk of new money poured into the Emerging Europe Regional (EER) funds, the largest global investor group committed to Poland.

'Interest rate environment is a risk factor in Poland, but rates are on the rise because of economic growth potential and that, on the other hand, urges earnings estimates to be generally upgraded,' said Siller.

Source: forbes.com

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Polish press review 06/07/2007 - Government & Economy

ENERGY: Poland Not to Sign Declaration on Participating in Lithuanian Power Plant Construction Friday as Planned - Poland will not sign a declaration on participating in the construction of a nuclear power plant in the Lithuanian town of Ignalin Friday, as Prime Minister Jaroslaw Kaczynski cancelled his visit to Vilnus. Poland could not joint Lithuania, Estonia and Latvia in the project at all due to high costs of the Ignalin power plant, according to earlier declarations by economy minister Piotr Wozniak. [Rzeczpospolita]

TAXES: EU Maintains Lower VAT Tax Rates Until 2010, Instead of 2007 - The European Commission decided to maintain current VAT tax rates in all EU countries until 2010, rather than 2007. The resolution is seen as highly beneficial to Poland. [Rzeczpospolita]

POLITICS: Parliament Starts Work Thursday on Preventing Offenders from Becoming MPs - Parliament decided to start work Thursday on implementing a constitutional ban on convicted offenders becoming MP's. If the regulation is adopted, coalition member Samoobrona (Self Defense) leader Andrzej Lepper, among others, could be excluded from Parliament. [Rzeczpospolita]

POLITICS: Prime Minister Suspends Prominent Governing Party Member for Criticizing Foreign Minister - Prime Minister Jaroslaw Kaczynski suspended the vice-chairman of his ruling conservative Law and Justice (PiS) party, Pawel Zalewski, after the latter criticized Foreign Affairs Minister Anna Fotyga for her handling of the negotiations on the EU's internal voting system at the recent Brussels summit on June 21-22. [Gazeta Wyborcza]

HEALTHCARE: National Health Fund (NFZ) May Direct PLN 1 bln to Nurses' Salary Raises - Nurses are likely to terminate their strike if the government earmarks 80% of a PLN 1 bln National Health Fund (NFZ) cash injection on nurses' salary rises. Prime Minister Jaroslaw Kaczynski is said to possibly agree on the proposal under two conditions; that nurses remove protest pickets outside his chancellery, and that all the unions concerned agree. [Rzeczpospolita]

BUDGET: Finance Minister to Limit other Ministries' Spending - Finance Minister Zyta Gilowska is expected to announce within days new limits on other ministries' spending. The new savings plan is envisaged to save the budget PLN 48 bln, as the government will direct the means to finance family support among other expenditures. [Rzeczpospolita]

TRANSPORT: Poland's Highway Investments to Cost PLN 164 bln by 2015, Transport Minister - Poland's road infrastructure investments are to cost PLN 164 bln by 2015, Transport Minister Jerzy Polaczek said Thursday, though he did not say where the government would acquire money for the purpose. Poland needs around 1145 km of highways, according to the ministry's estimates. [Rzeczpospolita]

EU: Polish MEPs Do Not Function Well in European Parliament, Institute of Public Affairs - Polish MEPs do not function well in the European Parliament as they often fail to look after issues other than strictly Polish ones and have more ambitions to gain significance on the Polish, rather than the European political scene, according to the Institute of Public Affairs. [Dziennik]

LABOR: Poland Eases Bureaucracy on Foreign Seasonal Workers Thursday - Poland adopted an executive ordinance allowing foreign nationals to work in Poland for no longer than three months without a valid work permit. Foreign seasonal workers will simply have to present a Polish employer's declaration of willingness to employ the person at the border crossing. [Dziennik]
Source: gielda.wp.pl

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Estonia welcomes Poland's participation in construction of Lithuanian nuclear power plant

The Estonian government Friday welcomed Polish declarations of interest in participating in four-country construction of a new nuclear power plant in Lithuania, Estonian Prime Minister Andrus Ansip said.

"I hope we will manage to reach an agreement on construction [of the power plant] as soon as possible, because Estonia is really interested in the project of a new power plant," Ansip said. "We are glad about the fact that the Polish company also wants to participate in the project."

During Friday's meeting of the prime ministers of Lithuania, Latvia and Estonia in Vilnius no declaration was signed about the new power plant due to the absence of Polish Prime Minister Jaroslaw Kaczynski, who canceled his visit due to his involvement in a domestic dispute with nurses demanding pay hikes.

Polish Economy Minister Piotr Wozniak said recently that Poland will Friday not sign any declaration concerning the nuclear power plant due to concerns about the terms of its participation in the project. Lithuania is planned to have a 34% stake in the power plant, while the remaining three participants would have 22% stakes each.

Latvian Prime Minister Aigars Kalvitis said Friday that Latvia is also concerned about the level of its stake in the project, but that this is not the fundamental issue.

"It is more important what share the participating sides will have in the plants' production capacities and what will be their influence on managing of the plant," Kalvitis said. "There are no other obstacles for realization of this project."

Lithuanian Prime Minister Gediminas Kirkilas said that the stakes in the project are an the important issue for Poland.

"They raised the issue," Kirkilas said.

The PMs from Lithuania, Latvia and Estonia declared that they want to complete talks on the project by fall 2007.

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