French head for Silesia

French carmaker PSA Peugeot Citroen is reportedly hardening on Silesia to locate its €700-million car plant next year. Poland is now strongly tipped to head off rivals Hungary and the Czech Republic, according to the Ministry of Economy. The final decision is scheduled for mid-December. “There is proof that Poland is attractive,” said Ewa Freyberg, deputy secretary of state at the Ministry of Economy, who is at present negotiating with PSA. Freyberg pointed out Toyota had already awarded the country a vote of confidence this year by selecting Jelcz-Laskowice as the site of its new diesel-engine plant. Officials at the ministry have sharpened financial inducements that Peugeot Citroen is demanding to bring them in line with those offered by the Czechs. The French are also concerned with infrastructure improvements to service the new plant, in Legnica or Radomsko, with a basic capacity of 300,000 units a year. The ministry is on points to avoid a repetition of the disaster it suffered late last year when bureaucratic fumbling led Peugeot Citroen in alliance with Toyota to select the Czech Republic over Poland for a new car plant. Wojciech Drzewiecki president of industry research firm Samar said: “Poland is better prepared. There will be no mistakes this time.”