Poland Named 8th Most Attractive Business Location Worldwide

A recent report from the United Nations Conference on Trade and Development titled, "World Investment Report 2005: Transnational Corporations and the Internationalization of R&D," named Poland as the eighth most attractive location for business in the world. At the top of the list were China, the USA, and India.

"Poland's strong economic growth, low business costs, and skilled workforce are responsible for it becoming one of the biggest success stories among the newer EU member countries," stated Wojciech Pobog-Pagowski, Director, Department of Foreign Investment and Economic Promotion in the Ministry of Economy and Labor of Poland. "Manufacturing, aviation, automotive, and information technology are particularly strong and competitive business areas -- as evidenced by the numerous world-class corporations that have chosen to establish a presence there."

The World Investment Report 2005 (WIR05) presents the latest trends in foreign direct investment (FDI) and explores the internationalization of research and development by transnational corporations (TNCs) along with the development implications of this phenomenon. This year's report prepared by UNCTAD is the fifteenth report on Foreign Direct Investments in the world. The report stated that global FDI flows resumed growth in 2004, but inflows continued to decline in developed countries. Developing regions are leading the recovery in FDI flows. Also detailed in the report are trends and patterns between developed and developing countries regarding the financing component of FDI (equity investment, reinvested earnings, intra-company loans) as well as the modes of investment (mergers and acquisitions, greenfield FDI). More information is available at the UNIC website: www.unic.un.org.pl.

Poland's Largest Greenfield investments in 2005:

1.  LG Philips LCD Poland Sp. z o.o.       EUR 429 million
2.  Michelin - Polska S.A.                 EUR 253 million
3.  MAN-STAR Trucks Sp. z o.o.             EUR 92,7 million
4.  LG Electronics Polska Sp. z o.o.       EUR 90 million
5.  Electrolux Polska Sp. z o.o.           EUR 60 million

The Highest Number of New Jobs in Production Sector in 2005:

1.  LG Philips LCD Poland Sp. z o.o.       3149 jobs
2.  LG Electronics Polska Sp. z o.o.       2150 jobs
3.  Wrozamet S.A.                          1000 jobs
4.  Electrolux Polska Sp. z o.o.           800 jobs
5.  MAN-STAR Trucks Sp. z o.o.             650 jobs

Poland's Key Business Sectors

Best Location for Call Centers in Central Europe and Eastern Europe: According to the Datamonitor Report, by the end of 2008 the number of call centers in Poland will double to 1,400 and employ roughly 50,000 people.

R&D and Information Technology: Poland has 30 R&D centers with an established presence from world leading companies such as: Capgemini, Global Software Group, IBM, Intel, Motorola, Oracle, and Siemens.

Automotive Industry: There are currently over 400 companies in Poland that are suppliers to the automotive industry. This includes seven car engine plants.

Aviation Industry: There are 55 enterprises operating in this industry, employing more than 16,000 people. In 2004, 21 Polish and foreign companies created an aviation cluster in Rzeszow.

Poland's Business Advantages

Strong Economic Growth -- Low Corporate Tax Rate

Poland's economic growth was 5.7% for 2004 and is forecasted at 4.0 % for 2005 and 5.0% for 2006. This is much stronger than the Euro zone (1.3%) and higher than an average of 25 EU members (1.6%). This growth has been driven to a significant extent by exports, industrial production and investment. Poland's Corporate Tax Rate of 19% is among the lowest in the EU, which provides investors and companies with incentives of a higher profit margin.

Centralized EU Location -- Gateway to 750 Million Population

Poland's centralized location provides a bridge between the west and the east, the north and south of the European continent, making it an ideal launch pad for direct access to the markets of the European Union and Central and Eastern Europe. Investors and international companies gain easy access to a 500 million population in Western Europe and a 250 million population in Eastern Europe. Many businesses in Poland have excellent experience and strong results in commercial relations with the former Eastern bloc, as well as Russian Federation states.

About the Polish Consulate General of Los Angeles

The Consulate General of Poland in Los Angeles was established in 1991. Its jurisdiction is the State of California, and 14 other western and southern states in the U.S. The mission of the Consulate General -- besides providing Consular services -- is to promote Poland and relations between Polish and American companies. The Consulate arranges events and promotional activities focusing on Poland's most interesting business and cultural areas.

Additionally, the Consulate offers Polish citizens services such as providing passports and assistance in cases of emergency. The Consulate also assists citizens of the United States and other countries to obtain permits for working in Poland. For more information about Poland, its business opportunities, or other services, please visit www.pan.net/tradeconsul or call: (310) 442-8500 or fax: (310) 442-8526.

Distributed by Market Wire