DVD's world leader picked Poland

By Aleksander Nowacki

Last week's opening of new production lines at Technicolor Home Entertainment Services' (THES) manufacturing facility in Piaseczno near Warsaw, boosted the company's total capacity in this country to more than 200 million DVDs a year, or two thirds of its capacity in Europe. This represents a threefold expansion of capacity as compared to last year.

The investment, worth zł.85 million, constitutes a major part of Thomson's worldwide drive to increase its production capacity to 1.1 billion DVDs by the end of the year, a 500 percent increase on the level of 2001.

According to Quentin Lilly, THES president, industry projections indicate that the current double-digit growth rates for the company will continue for another three to five years.

Lilly named the support the company was accorded by the authorities, at both the central and local level, as a principal factor that led to Technicolor's choice of this country as "an ideal manufacturing base for our operations". He also cited the highly educated and relatively inexpensive manufacturing and engineering workforce as making the country an attractive investment destination. Other factors included the potential size of the domestic market and convenient location, both of which make it a good base for exports to Western Europe.

Jacek Mielczarek, THES Polska general manager, explained that all the production is exported, as international film studios distribute the product across the continent and some DVDs are re-imported. He did not venture to put a date on when the domestic market can be expected to reach a size that would make it a significant target for multinational film corporations. Mielczarek went on to say that the company still has the potential to expand its production capacity in this country at a later date, pending further market growth.

THES's parent company, US-based Thomson, acquired a controlling stake in the Piaseczno color TV picture tube facility in May 1991. The plant diversified into DVD production last year with the opening of its first 10 production lines. The current investment is twice the size of last year's. THES has created more than 520 jobs since September 2002, in addition to an earlier total of 180 employees.