Gambling on Poland

Procter & Gamble has begun construction of its largest factory in Europe

Construction on Procter & Gamble's (P&G) largest European factory has begun following the issuance of a permit allowing the world's leading FMCG manufacturer to expand its activities in the Łód� Special Economic Zone (ŁSSE). The new plant, worth some $50 (zł.120.9) million, will be based in the ŁSSE's sub-zone of Aleksandrów Łódzki and will produce Olay skin-care products.

The factory, located on a 33-ha plot which formerly housed a sports airfield, will cover an area of 15,000 sqm. The area has already been fitted with a sewage system and has seen improvements made to the local road network. The total cost of this work amounted to zł.5 million and was covered by the local authorities.

The first phase of the project is scheduled for delivery in August of this year, while production is scheduled to begin in 2009. The plant, although fully automated, will employ at least 300 staff, and the investor expects to see a daily output of 30 tonnes of beauty creams and oils.

"This is our third project in Poland, following a Pampers factory in Warsaw and a Gillette razors factory in Łód�," said Alex Blanco, P&G's vice president in charge of global production and distribution of beauty products. "We chose Aleksandrów Łódzki because of its central location and access to well qualified staff. The stance of the Aleksandrów municipal authorities and representatives of the ŁSSE was also a very important decision making factor," he added.

ŁSSE was established in 1997. It covers a total area of 900 ha and constitutes 29 sub-zones. Last year 20 investors received permits to trade in the ŁSSE and they are expected to generate zł.1.9 billion and 5,100 new workplaces.

Procter & Gamble has some 130,000 employees globally and has a turnover of over $70 (zł.169) billion.

Source: By Anna Kapica-Harward, wbj.pl