In Philips' footsteps

A host of companies have followed in the wake of the massive LG Philips deal to build production plants in Lower Silesia. By 2011, LG Philips along with its subsuppliers intends to invest zł.2.5 billion and will provide jobs for 10,000 people in Kobierzyce on the outskirts of Wrocław.

At the beginning of September 2005 LG Philips signed an agreement with the Polish government to construct a liquid crystal module plant. Now, a number of companies have followed in their footsteps, including Heesung Electronics, LG Innotek, Dong Yang Electronics, LG Chem, Ochsung Display and Lucky SMT. These firms provide monitor elements, polarization panels and printed circuits.

The six firms will invest EUR 292 (zł.1,139) million and the government has promised a zł.122 million subsidy to be spent mainly on creating new jobs.

"It is estimated that between 2006 and 2011 the investment will generate an influx of zł.1.6 billion to the budget and to the local authorities," said Piotr Woźniak, the Economy Minister. The investors will benefit from several government incentives, including property-tax and CIT exemptions and preferential prices.

When signing the agreements, Prime Minister Kazimierz Marcinkiewicz said that Lower Silesia needs the new investments especially because they are related to modern technologies. "Poland has the biggest potential of all the European countries [with] 10 million well-educated young people. This potential is worth taking advantage of," he added.