Seeing if lightning will (not) strike twice in the same place
For those of you with long memories, cast your mind back to this time last year, and the debacle with the proposed Peugeot Citroen investment. The French car manufacturer wanted to build a plant near a town called Radomsko, but pulled out amid much recrimination and took its money to Slovakia instead. Officially, the reasons given were the pluses of the Slovak offer; better transport links, closer to target markets, lower labor costs etc. Unofficially, the Polish press speculated about the undue delays the local gmina imposed on issuing a permit for the investment, while others claimed that the whole thing was politically motivated - as Poland had opted to buy American F16s as part of its NATO commitments, the offended French government put pressure on Peugeot to shift the plant to Slovakia.
Whatever the reason, Radomsko lost several thousand much-needed jobs and Poland lost zł.3.3 billion (€700 million) of much-needed Foreign Direct Investment (FDI).
Now here we are at the start of 2004 and the sense of déja-vu is unsettling. However, this time the stakes are higher, with zł.5.7 billion (€1.2 billion) of FDI up for grabs courtesy of the Korean car manufacturer Hyundai.
This week's Slovak Spectator carried a story reporting a mistake made by Slovak television when it announced that Hyundai had in fact already chosen Slovakia as the location for a plant which will produce 300,000 cars and directly create 7,000 new jobs. The director of foreign public relations at Kia Motors (which belongs to the Hyundai group) was quick to point out that no final decision has yet been taken. Hungary and the Czech Republic were eliminated at an earlier stage, and the final round is still between Poland and Slovakia.
The article included details of the Slovak offer, which were quite impressive. Hyundai are looking at a 270 acre site in the Żilinia region, which has borders with Poland and the Czech Republic, includes a major railway route, and is only 13 kilometers from an airport. The local chamber of commerce helpfully listed 183 potential subcontractors of which Hyundai could take advantage, as well as a further 280 across Slovakia. It also claimed that there are 450,000 'economically active' people in the region, and that not only are these workers more productive than their Polish counterparts, but they also cost a third less.
The only fly in the ointment, according to the Slovak Economy Minister, is the ongoing conflict within the ruling coalition government (sound familiar?), which might repel foreign investors and put Slovakia at a disadvantage in its competition with Poland. Be that as it may, the Slovaks are nevertheless banging heads together to do all they can to get this investment. Let's hope that, after the Peugeot mess a year ago, the Polish government has learned something and will do its best to meet the Slovak challenge. Hyundai, meanwhile, will make its final decision later this month.
Whatever the reason, Radomsko lost several thousand much-needed jobs and Poland lost zł.3.3 billion (€700 million) of much-needed Foreign Direct Investment (FDI).
Now here we are at the start of 2004 and the sense of déja-vu is unsettling. However, this time the stakes are higher, with zł.5.7 billion (€1.2 billion) of FDI up for grabs courtesy of the Korean car manufacturer Hyundai.
This week's Slovak Spectator carried a story reporting a mistake made by Slovak television when it announced that Hyundai had in fact already chosen Slovakia as the location for a plant which will produce 300,000 cars and directly create 7,000 new jobs. The director of foreign public relations at Kia Motors (which belongs to the Hyundai group) was quick to point out that no final decision has yet been taken. Hungary and the Czech Republic were eliminated at an earlier stage, and the final round is still between Poland and Slovakia.
The article included details of the Slovak offer, which were quite impressive. Hyundai are looking at a 270 acre site in the Żilinia region, which has borders with Poland and the Czech Republic, includes a major railway route, and is only 13 kilometers from an airport. The local chamber of commerce helpfully listed 183 potential subcontractors of which Hyundai could take advantage, as well as a further 280 across Slovakia. It also claimed that there are 450,000 'economically active' people in the region, and that not only are these workers more productive than their Polish counterparts, but they also cost a third less.
The only fly in the ointment, according to the Slovak Economy Minister, is the ongoing conflict within the ruling coalition government (sound familiar?), which might repel foreign investors and put Slovakia at a disadvantage in its competition with Poland. Be that as it may, the Slovaks are nevertheless banging heads together to do all they can to get this investment. Let's hope that, after the Peugeot mess a year ago, the Polish government has learned something and will do its best to meet the Slovak challenge. Hyundai, meanwhile, will make its final decision later this month.
