British firms find Poland increasingly attractive
The total value of major investments with significant participation by U.K. firms - of $1 million or more - is $522.5 million, according to a list supplied by the British embassy. Tony Gooch, the embassy's commercial secretary, puts the British share of those projects at between $350 and $400 million.
"That's a ball-park figure," he cautions. "The previous regime estimated that it was actually twice as much as the official PAIZ (Polish Agency for Foreign Investment) figures, because smaller-scale ventures aren't counted." PAIZ only records foreign investments of $1 million or more.
British investments in Poland have been growing, especially since 1992, but so has the involvement of other countries, as well as international financial institutions and multinationals. This means the United Kingdom has held the same relative position - fifth or sixth place - for three years, Gooch says.
Accelerating investments
"There's no doubt we've seen a rapid acceleration of British investments in Poland in the recent past," he says. "We've had United Biscuits (which acquired an 80% stake in the San biscuit factory in Jaroslaw), Cadbury's (which opened a $30 million greenfield chocolate factory outside of Wroclaw last month), and a whole lot more. And we're currently working on a series of major investments that can't be discussed yet."
If international financial institutions are considered as a separate category, Gooch says, British investments in Poland currently rank sixth. The five larger foreign presences are, in order: the United States, Italy, international institutions, Germany and France.
At this point, British firms are more heavily invested in Hungary and the Czech Republic than in Poland, Gooch comments. "But you might well see a general catching up in the near future. More and more (British) companies are coming into Poland.
"The prospect of opening up of sectors that had previously been closed to foreign investors - particularly power generation and petroleum refining, should encourage further British investment."
Gooch also expects to see continued investment growth in the food-processing sector, where major players from the United Kingdom include British Sugar, Cadbury's, Lettinane Investments, Unilever and United Biscuits.
Other sectors have been targeted for additional British export by the Foreign Trade Office. These include the automobile industry, mining equipment and environmental clean-up. "We've been very active in international consulting on environmental matters," Gooch says. "And some of our technologies ... are particularly well-known."
Imports and exports
"Poland is by far the biggest export market in the region," Gooch observes, adding that Britain currently holds fourth place in terms of exports to Poland - which accounts for some 5% of the import market. A recent increase in exports from Russia - primarily oil and gasoline - has pushed the British into fourth place.
"We were third in 1993," Gooch says." Russia has seen a surge in its figures. Then there's Germany and Italy, which are roughly tied (for first place)."
The embassy's commercial section, in cooperation with the trade office, assists in promoting targeted sectors of British trade in Poland. This is largely accomplished through the organization of seminars and meetings focusing on a particular industry or sector. Promotion of the automobile industry, for example, involved two meetings for interested British and Polish companies, one of which was held in London. And last week, another automotive presentation will took place in Poznan, for the annual auto show.
A seminar promoting British "invisible exports" in the finance, pensions and insurance sectors is scheduled to take place on May 25.
Know-How Fund
Through its Know-How Fund, the British government spends roughly $16.2 million a year on programs designed to expose major sectors of the Polish economy to U.K.-based business and financial skills. The fund supports management training centers as well as assistance for several privatizations.
Poland's association agreement with the European Union should also benefit British exports, along with those of other EU countries, Gooch says. "We're already seeing benefits through the agreement. It's bringing down tariffs at asymmetrical rates, and we'll be benefiting. Of course, the United States doesn't like this very much." By 2002 all tariffs on industrial goods imported from the EU are supposed to be abolished.
Britain's recent extension of export credits to firms selling to the Polish market should also increase the presence of U.K. products here. Britain's program of government-backed credits to firms exporting to Poland ended in 1980. Its revival was announced during then-Prime Minister Waldemar Pawlak's visit to London in December.
"Germany, France and the United States have all provided this service. We've just restored it," Gooch says. "It means a more level playing field for British firms exporting to Poland."
"That's a ball-park figure," he cautions. "The previous regime estimated that it was actually twice as much as the official PAIZ (Polish Agency for Foreign Investment) figures, because smaller-scale ventures aren't counted." PAIZ only records foreign investments of $1 million or more.
British investments in Poland have been growing, especially since 1992, but so has the involvement of other countries, as well as international financial institutions and multinationals. This means the United Kingdom has held the same relative position - fifth or sixth place - for three years, Gooch says.
Accelerating investments
"There's no doubt we've seen a rapid acceleration of British investments in Poland in the recent past," he says. "We've had United Biscuits (which acquired an 80% stake in the San biscuit factory in Jaroslaw), Cadbury's (which opened a $30 million greenfield chocolate factory outside of Wroclaw last month), and a whole lot more. And we're currently working on a series of major investments that can't be discussed yet."
If international financial institutions are considered as a separate category, Gooch says, British investments in Poland currently rank sixth. The five larger foreign presences are, in order: the United States, Italy, international institutions, Germany and France.
At this point, British firms are more heavily invested in Hungary and the Czech Republic than in Poland, Gooch comments. "But you might well see a general catching up in the near future. More and more (British) companies are coming into Poland.
"The prospect of opening up of sectors that had previously been closed to foreign investors - particularly power generation and petroleum refining, should encourage further British investment."
Gooch also expects to see continued investment growth in the food-processing sector, where major players from the United Kingdom include British Sugar, Cadbury's, Lettinane Investments, Unilever and United Biscuits.
Other sectors have been targeted for additional British export by the Foreign Trade Office. These include the automobile industry, mining equipment and environmental clean-up. "We've been very active in international consulting on environmental matters," Gooch says. "And some of our technologies ... are particularly well-known."
Imports and exports
"Poland is by far the biggest export market in the region," Gooch observes, adding that Britain currently holds fourth place in terms of exports to Poland - which accounts for some 5% of the import market. A recent increase in exports from Russia - primarily oil and gasoline - has pushed the British into fourth place.
"We were third in 1993," Gooch says." Russia has seen a surge in its figures. Then there's Germany and Italy, which are roughly tied (for first place)."
The embassy's commercial section, in cooperation with the trade office, assists in promoting targeted sectors of British trade in Poland. This is largely accomplished through the organization of seminars and meetings focusing on a particular industry or sector. Promotion of the automobile industry, for example, involved two meetings for interested British and Polish companies, one of which was held in London. And last week, another automotive presentation will took place in Poznan, for the annual auto show.
A seminar promoting British "invisible exports" in the finance, pensions and insurance sectors is scheduled to take place on May 25.
Know-How Fund
Through its Know-How Fund, the British government spends roughly $16.2 million a year on programs designed to expose major sectors of the Polish economy to U.K.-based business and financial skills. The fund supports management training centers as well as assistance for several privatizations.
Poland's association agreement with the European Union should also benefit British exports, along with those of other EU countries, Gooch says. "We're already seeing benefits through the agreement. It's bringing down tariffs at asymmetrical rates, and we'll be benefiting. Of course, the United States doesn't like this very much." By 2002 all tariffs on industrial goods imported from the EU are supposed to be abolished.
Britain's recent extension of export credits to firms selling to the Polish market should also increase the presence of U.K. products here. Britain's program of government-backed credits to firms exporting to Poland ended in 1980. Its revival was announced during then-Prime Minister Waldemar Pawlak's visit to London in December.
"Germany, France and the United States have all provided this service. We've just restored it," Gooch says. "It means a more level playing field for British firms exporting to Poland."
