Government pledges to help Daewoo as investor sought for Lublin plant

Korean car concern Daewoo has announced restructuring plans and will soon file a motion in court to choose a proxy manager for the company. It may decide to sell off foreign subsidiaries, including its Polish companies. Deputy Economy Minister Edward Nowak, who returned a few days ago from negotiations in Korea, said that continued production in Lublin is a necessity. About 70%-80% of preparatory work has been completed for production of the new model LD-100 truck, and approximately $130 million more is needed to begin assembly. An investor could provide such financial means. "We received positive feedback [from the Korean government] for conducting talks with potential investors for the Lublin factory and for backing them up. In my opinion there is interest in these factories," said deputy minister Edward Nowak. The Polish government is willing to help Daewoo finance the design of a new engine for Daewoo Matiz, which means guaranteeing 60% of a $100 million loan. The government already supported the company when it entered the Polish market by exempting it from customs duties for parts imported from Korea, which amounted to approximately $300 million. (Rzeczpospolita, p.B3)