47 (142) 2021
Download PDF-version

Looking beyond Brexit - inward investment to Poland

Business is great in Łodz Special Economic Zone

By Mateusz Słonecki, press spokesman at Lodz Special Economic Zone
Header  sse

Indicators showing the results of economic cooperation between the UK and Poland are constantly growing. In the years 1995-2018, trade between the countries increased five-fold. Since the transformations initiated in 1989 until the end of 2017, British companies invested nearly 48 billion PLN in Poland (around £9.6 billion). And they are not going to stop, the best example of which are the recent investments in the Lodz Special Economic Zone (Lodz SEZ), recognised as third in the world and first in Europe by fDi Magazine.

British companies play a significant role in many sectors of the Polish economy. The statistics included in the Deloitte report from 2019 examining economic ties between the UK and Poland show that the cooperation has visibly tightened over the years. There are over 400 British companies successfully operating in Poland, and more are considering entering the Polish market. It is particularly attractive in connection with the tax exemptions offered by the Lodz SEZ in return for locating the investment within its borders. This opportunity was used by the British company Johnson Matthey, which decided to locate a new investment in the Lodz Zone in central Poland, near Konin.

“It’s an important investment for the region and for the Lodz SEZ. The automotive industry is developing rapidly and is investing heavily in modern technologies related to the production of electric cars. The Johnson Matthey factory, currently under construction near Konin, will produce advanced materials for batteries. The choice by such a large investor of the location in the Lodz Zone shows that we have prepared great investment areas, the location is considered strategic, and there’s a very good communication network, facilitating logistics” says Marek Michalik, president of the Lodz SEZ.

Centrally located in Poland, near the junction between the main north-south and east-west motorways, Lodz is well-placed to serve wealthy EU markets across central and north-western Europe.

Another British investor, Hellyar Plastics, is also developing near Lodz – with over 50 years of history and experience in the production and trade of modified polypropylene-based plastics. The decision to invest was made by the company's management in 2017, and its implementation took less than two years.

“We started operating activities in September 2019 and is being carried out in accordance with our multi-year plans. Today the plant works and produces compounds for many customers, both in Poland and abroad. Further projects are being implemented to develop production capacity, employment in the company is increasing and we conduct research on new engineering plastics - says Wojciech Waryszewski, managing director of Hellyar Plastics Polska. “Thanks to the experience of our crew, we can offer our customers alternative, more modern, lighter and cheaper products. A combination of British business culture with Polish creativity brings great results,” he says.

To meet investors expectations, the Lodz Zone prepares dedicated investment plots for them. These are connected to the municipal utilities, with the possibility of adjusting the water infrastructure, appropriate power of electric or gas connection. The 40-hectare “Ksawerów” complex bordering Lodz is of particular interest. Global brands such as Nippon Seiki and Miele have located their locations there. The German manufacturer of household appliances also uses a start-up offer for investors. The Lodz Zone focuses on technology development and gives its investors the opportunity to cooperate with startups. Miele uses solutions designed for their factory in 5G technology. This is the offer for which the Lodz Zone was awarded by experts from fDi Magazine (from the Financial Times group).

“We use the technological potential of start-ups and combine it with the experience of large investors. The cooperation results in the creation of ready-made innovations dedicated to the investor that accelerate their development. Building innovation based on 5G technology allows us to develop competitive advantages that introduce a revolution on the market of new technologies and accelerate the transformation of Industry 4.0,” says Agnieszka Sygitowicz, vice president of the Lodz SEZ.

The zone also has investment areas in Lodz itself, at the railway terminal from which freight trains depart for China. In addition, it builds modern warehouse and industrial halls with ramps for trucks and office facilities, ready for rent. Investing in the Lodz SEZ means an income tax exemption depending on the amount of investment outlays and the investor who incurs them. Large companies can count on 35% of the investment value, medium-sized firms 45%, and small- and micro-firms as much as 55%.

“Exemption from corporate income tax is a very attractive incentive for everyone running a business. It is particularly important in the first years of running a business, when the costs related to starting a business are high and you need to get straight ahead as soon as possible,” explains Wojciech Waryszewski of Hellyar Plastics Polska. Poland, apart from being a large European market in its own right in terms of consumption, is a great location for reasons of technical and communication infrastructure, local governments open to new investments, creative people, hungry for success and wanting to raise their standard of living. And new investments provide such opportunities. However, people, not only young people, want to take advantage of this opportunity,” says Wojciech Waryszewski.

More in Looking beyond Brexit - inward investment to Poland:

Different relocation perspectives - a key factor in process optimisation

By Anna Skałecka, CEO, Exclusive Worldwide Sp. z o.o.

The assistance of experts specialising in investment projects related to relocating resources – as in many other cases of outsourcing non-core activities – can add significant value for companies, which should focus on their core business processes, while counting on high-quality effective support for the development of their businesses.

Investment attractiveness of Poland in Europe

By Grzegorz Chmielak, managing partner, Knight Frank

The year 2020 made history and will be remembered but not necessarily for positive reasons. The Covid-19 pandemic has affected world markets, forcing governments to introduce unprecedented restrictions in our daily lives to counteract the spreading virus infection and consequently severely affected many economic sectors. All this coincided with the end of the transition period for the UK’s withdrawal from the EU. How have all these things affected the individual sectors of the commercial property market in Poland? Does Poland remain an attractive country for foreign investors?

Influx of new investment into Poland: key factors behind business location decisions

By Jan Banasikowski, CBRE Advisory & Transactions, CBRE

Foreign investor interest in Poland and the CEE region has gathered considerable speed over the past several months. At the same time, changes are taking place in terms of the scope of requirements and the general characteristics of the analysis process for new business project locations. Poland is fast becoming one of the main beneficiaries of those changes (go to CBRE’s Market Outlook 2021 report to read more about it).

A smart solution to customs headaches caused by Brexit

By Krzysztof Laskowski, sales specialist / customs agent, Connectivity & Products - Governments Services, SGS Polska Sp. z o.o.

Two months after the moment when UK finally left the EU, we can note significant changes in circulation of goods between EU and UK. These changes have affected a variety of areas of our life.