In 2017 , it confirmed that 471,600 Poles were employed in the automotive industry . Volkswagen , FCA , Daimler and Toyota have production plants in Poland . The new Mercedes-Benz engine plant in Jawor , Poland , is a key element in the growth strategy of the Mercedes- Benz Cars division .
“ There are over 140 aviation-related companies in Poland , whose sales value in 2018 amounted to 1.93 billion euros . They employ a total of around 120,000 people . Five of the largest aircraft engine manufacturers in the world have located their production plants in Poland : Lufthansa , GE Aviation , Sikorsky , UTC Aerospace Systems and AugustaWestland . The Lockheed Martin factory in Mielec is the aerospace giant ’ s largest production plant outside the United States ,” added the agency .
From 2013-2019 , the Polish renewable energy sector was worth approximately PLN 48 billion ( 10.6 billion euros was allocated to lowemission energy investments in Poland ), according to the agency . This made it possible to finance RES installations with a capacity of 8.6GW . Poland ranks fifth in Europe in terms of increases in new installed photovoltaic source capacity .
From January to April 2020 , 16 investment projects in the renewable energy sector were launched in Poland .
Additional EU support
Thanks to € 642 million made available under the EU ’ s Recovery Assistance for Cohesion and the Territories of Europe ( REACT-EU ), regions in Belgium ; the Czech Republic , Poland and Romania will now be able to further support their economic recovery and their digital and green transition .
In Poland , the Łódzkie region received € 26 million to support SMEs , the health sector and renewable energy sources . The ‘ Digital Poland ’ programme receives € 81 million for projects developing innovative IT tools for public services and the general digitalisation of the local public administration , including improving cybersecurity and providing digital skills training for administrative staff .
REACT-EU is part of NextGenerationEU and provides € 50.6 billion in additional funding over the course of 2021 and 2022 to the 2014-2020 Cohesion policy programmes .
Overseas investments
Investors are drawn to Poland due to the country ’ s large population , well-educated and competitive workforce , strong prospects for economic growth and location , all of which affords broader access to the European Union market of 500 million . Business opportunities include retail ; healthcare ; manufacturing ; defence ; fintech ; aviation ; cleantech and sustainable transport .
A view of Warsaw ( Shutterstock . com ).
Business opportunities include retail ; healthcare ; manufacturing ; defence ; fintech ; aviation ; cleantech and sustainable transport
Poland is open to foreign investment . Leading sectors have historically included automotive ; aerospace ; information technology hardware and software ; food products ; transportation and pharmaceuticals ; paper production ; appliances and financial services . Poland is a key producer of white goods and passenger cars e . g . the Opel Astra III and IV , the Fiat 500 , the Lancia Ypsilon , the Ford Ka and the Chevrolet Aveo . The construction sector in Poland , a major beneficiary of huge infrastructural programmes , has also fuelled demand for steel products .
Investment and export opportunities exist in the energy sector as Poland seeks to diversify its energy mix , as well as in defence and digital technologies . Poland is also a popular location for business processing centres including call centres , shared services centres and research and development operations .
“ In 2019 , Poland was also ranked highest in the CEE region and third in Europe in terms of greenfield investment value – US $ 21.8 billion . It is no coincidence that , at the end of 2020 , Poland was the third preferred location in Europe for foreign investments ,” said the Polish Investment and Trade Agency .
The Polish Economic Institute estimates that , as a result of post- COVID business relocations , Poland may gain the most out of all the EU member states ( up to US $ 8.3 billion annually ).
Looking ahead
Photo by Sebastian Kurpiel on Unsplash .
“ Poland had built fiscal buffers in the years before the COVID-19 pandemic through , among other things , improved tax collection and robust growth . This created the fiscal space needed to respond to the pandemic , which triggered Poland ’ s first annual output contraction in 30 years . The fiscal deficit and debt level deteriorated markedly in the wake of the crisis ,” explained the World Bank .
“ The well-diversified Polish economy has proved to be one of the most resilient in the European Union ( EU ), with a 2.7 per cent contraction in GDP in 2020 , the first output contraction since 1991 ,” it added .
Spending efficiency , it said , is needed to rebuild fiscal buffers , accommodate higher spending on health , introduce a green transition and prepare for the growing fiscal burden from an ageing population .
“ Over the medium term , key challenges are the need to tighten the labour supply , made more acute by the ageing population , as well as to meet decarbonisation commitments ,” it concluded . n
38 | sheetmetalplus . com | ISMR April 2022