Economy Poland: International Giants Invest
In the recent weeks, two huge investments in Poland have been confirmed. Not only will they help create several thousand new jobs but they should also have a positive influence on the country’s economy.
Foreign investors see Poland’s potential is no longer limited to production. It turns out to be a country in which it is worth developing new technologies and carrying out product research. This is confirmed but the two latest investments which have been confirmed in the recent weeks. It is the Rolls Royce investment which is starting co-operation with the Polish Armaments Group and the joint undertaking of Lufthansa and General Electric.
Rolls Royce invests in R&D
Rolls Royce will open a new plant with research and implementation facilities near Rzeszów in the south-east of Poland. As stated by the deputy prime minister and the minister for development Mateusz Morawiecki, this investment is to bring several hundred new jobs within the actual facilities and a further 2-3k in co-operating companies. There are three main entities involved in the project: the Rolls Royce plc. holding, the Polish branch of Rolls Royce and the Polish Armaments Group which have already signed a framework co-operation agreement. On that basis, an analysis and assessment will be carried out on the business co-operation potential with regards to the maritime, energy, civil and military aviation sectors as well as drive systems. Currently, the PGZ (Polish Armaments Group) comprise of over 60 companies representing the military, shipyard and new technologies industries. It is one of the biggest companies of such kind in central Europe with annual revenue of circa EUR 1.1 billion. Thanks to the contract with the British Rolls Royce, PGZ should strengthen its position in the region’s military industry.
Rolls Royce, on the other hand, has been present in Poland for over 20 years and it seems that its development has a long way to come here. Not only should the agreement between the Polish Armaments Group and Rolls Royce contribute to the creation of new jobs but also to the transfer of technologies to the plants in Poland, as well as future export of new goods.
Lufthansa and General Electric rely on service
Rolls Royce’s development in Poland is not the only big investment by an international concern within the territory of this country. In the recent weeks, the initiative put forward by the American General Electric and the German Lufthansa has been confirmed. The cost of the undertaking will be around EUR 250 million and concerns building new servicing plants for aircraft engines for the latest Boeings used by Lufthansa. As announced by the Polish Ministry for Development, approx. 600 will find work thanks to this investment. It will demand mainly employees with higher technical educational background with extensive employment experience and knowledge of new technologies. A modern factory will be located near Środa Śląska (dolnośląskie province) and it is supposed to cover the area of 13,5 ha. Its convenient location near a national road will make good communication with the plant feasible.
The deputy prime minister Mateusz Morawiecki emphasizes that Poland managed to get the investor’s approval mainly due to “stable conditions for highly advanced engineering and technical projects” which, once again, shows that this country is a good location for such investments.
Investments in full swing
It is not just Rolls Royce, General Electric and Lufthansa which decided to locate their capital in Poland as part of their research, development and production operations. The Japanese Toyota in Wałbrzych (dolnośląskie province) is to produce hybrid gearboxes, whilst in Jelcz-Laskowice which is only 100 km away – new types of petrol engines. The development of production will cost the Japanese around EUR 150 million. Mercedes, on the other hand has decided to build a factory manufacturing modern engines, providing several hundred new jobs. It will also be located in the south-west of Poland, in the town of Jawor. The investment’s been valued at around EUR 500 million. Half of this amount will be invested in Wrocław by the Canadian Bombardier which will build a production hall for the so-called boxes (tilting bodies) for high-speed trains.
The latest investment plans of foreign concerns in Poland show that Poland is a country with a good development perspective. Despite the country’s political changes, companies with large capital still value Poland for its access to qualified specialists, convenient location and competitive business environment.