Nivea Polska earned a net profit of zł.60 million on sales of zł.515 million last year, up from zł.37.4 million and zł.445 million, respectively.
Nivea's Poznań plant put out 74.7 million units last year, with domestic sales accounting for 56% and the rest in exports, mainly to the EU. This year the company celebrates its 95th birthday.
The conflict around Lot is intensifying. Representatives of Lot's shareholders, the Treasury and SAirLines (Swissair's liquidator), met to discuss the appointment of a new president.
The seat has been empty since November 14. Currently Tomasz Dębski is the firm's acting president. He has the support of the Treasury, but Lot's employees and SAirLines are against installing him on a permanent basis. (Poland A.M.)
The value of the transaction was not revealed, but it is known that half of it will be financed from the fund's own resources and half by BZ WBK bank. EI wants to open 10 stores a year and move some existing stores. EI still has to obtain consent from the Office for Competition and Consumer Protection.
Source: wbj. For more info Wbj.pl
Bytom, a producer and distributor of menswear, is planning to expand its product portfolio. The company intends to introduce a “tailor made” service on a large scale.
In 2009 it wants to reach a level of 15,000 garments per year, which is expected to bring the producer sales worth PLN 12m (€3.1m) with a 60% profitability rate. This was announced by Artur Morawiec, Bytom’s senior analyst, at a press conference.
Furthermore, in the autumn of this year the producer intends to launch new products under its Bytom name. These will be shirts, ties and knitwear.
Bytom is also planning to allocate more funds toward promotion – in 2007 2-3% of its sales revenue will be used for this, with a 5% share as a future target.
Kolastyna Group, a cosmetics producer, is to debut on the stock exchange at the beginning of February. The value of its IPO is expected to reach PLN 52.5m (€13.8m). The company is to allocate the funds for strengthening of the group’s operations, Andrzej Grzegorzewski, the company’s president, said at a press conference.
The Group is to spend PLN 26-28m (€6.8-7.4m) on consolidation activities on the Polish market – it plans to take over some production companies, including some offering upmarket cosmetics products. It may also acquire brands only or create the brands by itself. The company announced that it is already at an advanced stage of talks with a potential target, annual turnover of which amounts to PLN 10-30m (€2.6-7.9m).
Source: PMR. For more info Retailpoland.com
Monnari, a producer and retailer of women’s clothing, has acquired a 51% stake in Monolit, a clothing trading company, for PLN 25,500 (€6,540). The bidder paid in cash. At the same time Molton, an operator of the Molton clothing retail chain, acquired the remaining 49% of the securities of the latter and became its second shareholder.
Source: PMR. For more info Retailpoland.com
Ansell Ltd., the world's largest manufacturer of protective gloves and a leading condom maker, said that its subsidiary, Ansell Healthcare Europe, secured approx. 83% of the shares in Unimil, Poland’s largest condom maker, on Friday 2 February. Thus, the minimum acceptable 75% threshold, stipulated as a condition for deeming the tender successful, has been achieved. At an offer price of PLN 5.9 (€1.5) per share, the acquired stake is worth PLN 121.6m (€31.2m).
“The acquisition of the strong Unimil brands together with market shares of approximately 50% in Poland and 8% in Germany, is a significant boost to Ansell’s interests in Europe,” Ansell’s senior vice president, Werner Heintz, recently commented. “Unimil’s dedicated management and employees, respected brands and additional manufacturing operations provide important growth opportunities,” Ansell’s CEO, Doug Tough, added.
CEDC (the Central European Distribution Corporation), a leading producer and distributor of spirits on the Polish market, has signed a contract with Gruppo Campari. As a result of the agreement, on 1 January 2007 the company became the exclusive importer and distributor of Campari products in Poland.
Source: PMR. For more info Retailpoland.com
Carlsberg Polska, the third largest beer brewer in Poland, is planning to introduce its Okocim beer brand in barrels in British pubs. The move may even take place this year. The draught beer will, initially, be launched in London, where most Poles live, and then introduced in other British cities.
The company wants to benefit from its experience gained on the US market, where it sells draught beer at over 120 pubs and restaurants, according to Bogumil Turski, the export director at Carlsberg Polska, quoted in Rzeczpospolita.
So far Carlsberg has sold Okocim in bottles in the UK. The beer can be purchased in more than 600 pubs belonging to the British JD Wetherspoon chain, where the beers of the other Polish breweries, Kompania Piwowarska and Grupa Zywiec, are also available. In 2006, the sales of Okocim in the chain doubled in value. However, it will be more difficult to repeat this success with draught beer. There are more beer brands in British pubs, and many of them have been sold there for years. Mr Turski added that, in addition, the distribution of draught beer is much more costly, even if it promotes brand loyalty.
Polish breweries sold 32.47 million hl of beer in 2006, which represents significant growth on the year, i.e. 7.2%. This dynamic was much higher than the figure of 2-3% expected by industry representatives at the beginning of last year.
The considerable surge in beer consumption was due to three main factors: an overall increase in consumer purchasing power, conducive weather conditions and the Football World Cup, Pawel Sudol, the president of the Association of Employers of the Beer Industry (ZPPP), claimed at a recent press conference.
Source: PMR. For more info Retailpoland.com
The Office for Competition and Consumer Protection (UOKiK) has instigated a legal probe to find out whether Wrigley, the leading chewing gum producer in Poland, breached antimonopoly law.
The UOKiK is to check whether the company, which controls 90% of the Polish chewing gum market, abused its leading position by using a discount system which would discriminate against some of its business partners. According to documents collected by the UOKiK, the Wrigley system would be a loyalty scheme which promised only selected partners lower prices in lieu of a guarantee of further purchases at the supplier.
Source: PMR. For more info Retailpoland.com
has announced that it signed an agreement pertaining to acquisition of a 100% stake in Agrovita Bialystok, one of the leading producers of convenience meals in Poland. The value of the transaction may range from PLN 12.7m (€3.3m) to PLN 15m (€3.9m), and depends on the form of payment for the stake, which the bidder is to pay with cash or own shares.
Mispol declared that, over the next three year, it will invest at least PLN 3m (€0.8m) in Agrovita.
The acquisition is to result in an increase of Mispol’s share in the Polish traditional ready-to-eat meals market along with an increase in its production capacity of modern ready-to-eat meals, according to Marek Piatkowski, Mispol’s president.
Gzella, a meat processor, which operates a retail chain of 93 of its own specialised butchers’ shops in northern Poland, intends to expand to the southern part of the country.
This year the company wants to open another 20 stores in northern and central Poland, but it is considering opening its first shops in the south. If such a decision is made, the producer is expected to establish its third distribution centre, this time in southern Poland.
Carrefour has reported that in 2006 in Poland its sales (including VAT) were worth €1,359m, in contrast to the €1,173m reported for 2005. At a constant exchange rate this represented a 12.3% improvement.
In addition, the retailer announced that the performance of the Polish branch accelerated in Q4 2006 in particular, when the unit saw a 13.9% year-on-year improvement in sales (at a constant exchange rate).
Source: PMR. For more info Retailpoland.com
The domestic operator of delicatessen stores trading under the Piotr i Pawel name posted turnover of PLN 820m (€216m) in 2006, which is 17% more than for 2005. In 2007, the retailer plans to post sales exceeding PLN 1bn (€263m).
Source: PMR. For more info Retailpoland.com
France’s E.Leclerc stores in Poland turned over a total of PLN 1,915m (€491m) in 2006. This amount represented year-on-year growth of 6.4%.
There were three E.Leclerc stores launched during the year: a supermarket in Olesnica (retail area of 2,000 m²) opened for business in April, and two hypermarkets - in Kielce and Slupsk (of about 4,000 m² each) - opened in November. In addition, a shopping gallery next to the Zana Street store in Lublin has been expanded.
In 2007, Carrefour Polska, which runs hypermarkets under the Carrefour name in Poland, along with the Champion/Globi and Carrefour Express supermarkets, intends to invest some PLN 500m (€128m) in the country. Two of Carrefour’s largest competitors, Biedronka and Tesco, have also announced an intention to develop their existing chains, at a cost of PLN 600m (€154m) and PLN 600-700m (€154-180m), respectively in 2007.
In 2007 Carrefour plans to open at least seven hypermarkets and 14 supermarkets. In addition, a chain of franchise neighbourhood stores is to be launched, and negotiations on the management of stores on petrol station forecourts are also underway. In addition, the retailer is to incorporate some 200 stores to be taken over from Ahold. The €375m transaction has yet to be approved by the Office for Competition and Consumer Protection (UOKiK).
Two private equity funds managed by Enterprise Investors (EI) have signed an agreement to purchase 100% of the Komfort flooring retail chain. The transaction will take the form of a buyout, with half of the transaction financed by a loan provided by Bank Zachodni WBK. The value of the deal, which is still subject to the approval of the Office for Competition and Consumer Protection (UOKiK), has not, however, been revealed.
Agnieszka Kowalska, a partner at Enterprise Investors, claims the EI wants to realise the company’s substantial potential for rapid growth by further expanding its store network and launching some 10 outlets a year. “In our opinion this will give Komfort a good chance of growing dynamically not just in Poland but potentially also in other CEE countries. Our probable exit route will be through an IPO within a few years,” added Ms Kowalska.
Source: PMR. For more info Retailpoland.com
On 8 January Asseco Slovakia signed an acquisition contract with Datalock.
Jozef Klein, the chairman and managing director of Asseco Slovakia, told the SITA news agency that the company is planning further acquisitions this year. He also pointed out that the acquisition of Datalock may be compared with that of Slovanet because Asseco Slovakia owns a 51% stake in both of the firms. He added that Asseco does not plan to increase its share in the company for the moment unless its shareholders want to sell their shares in Datalock.
Source: PMR. For more info Ceeitandtelecom.com
A United Interactive survey on the quality and level of electronic communication in 11 contact centres operating in the telecoms industry, carried out at the end of 2006, found that Slovanet is the most effective company with regard to communication with its customers.
United Interactive said in a press release that the survey’s results suggest that some companies are still failing to take proper care of their customers when communicating via e-mail and by other electronic means.
United Interactive evaluated companies by means of the e-CPI index (the e-Contact Performance Index), which includes mystery shopping. The maximum score was 100, and Slovanet, the company which led the field, received 71.3 points. T-Mobile was in second place, with 66, followed by T-Com with 63.6 and Orange with 61.5.
Source: PMR. For more info Ceeitandtelecom.com
More than one-third of Slovak citizens (37%) use the internet on a regular basis, according to a recent survey carried out by TNS SK, and quoted by SME.
More than half of internet users surf from home. The constant increase in internet use in Slovakia is based on the falling prices of computers and internet services, according to Juraj Sabaka, the president of the Slovak IT Association.
Source: PMR. For more info Ceeitandtelecom.com
In Q3 2006 deliveries to Russia of PCs and Intel architecture servers involved 1.98m items, 32% more than in the equivalent period of 2005, according to Interfax, which was quoting recent data published by IDC, a market research company. The notebook market grew by 108% during the same period. Portable computers have, therefore, enjoyed greater prominence with regard to overall PC deliveries, accounting for 27%.
Source: PMR. For more info Ceeitandtelecom.com
The number of mobile telephony subscribers in Russia grew by 20% year on year and reached 152 million in 2006, AC&M Consulting reported. This means a nationwide penetration rate of 104.6%. The rate in Russia’s two largest markets – Moscow and St. Petersburg – stood at 156% and 139% respectively.
Source: PMR. For more info Ceeitandtelecom.com
MTU-Intel, a subsidiary of Comstar-UTS, has been ranked among the largest ISPs in Russia in terms of the number of individual broadband subscribers in 2006, according to a calculation published by iKS-Consulting, a research and consulting company which monitors the Russian telecommunications market.
MTU-Intel is followed by Komkor-TV, VolgaTelecom and Corbina Telecom, but their subscriber bases were less than a third that of MTU.
Source: PMR. For more info Ceeitandtelecom.com
P4, a mobile operator licensed to provide 3G telephony services, intends to have 1,500 base stations by the end of 2007 and to cover 20% of the country’s population in the eight largest cities. It is expected to have 2,500 base stations by the end of 2008.
The company wants to offer its services on a commercial basis by the end of the first quarter of the year, although the precise date is not yet known. P4 has stated that it is not interested in becoming a niche operator, but that it is going to win clients from existing operators. The operator’s CEO, Chris Bannister, announced that P4 is to adopt an aggressive pricing policy to attract clients. According to Presserwis, the operator also plans to spend around PLN 250m (€64.4m) on an advertising campaign.
Source: PMR. For more info Ceeitandtelecom.com
The Supreme Court has ordered a regional court to re-examine the ruling of the Vienna International Court of Arbitration on the ownership of a 48% stake in PTC, the operator of the Era and Heyah mobile networks.
The Court of Arbitration ruled that the shares of the mobile operator were owned by Elektrim and that the transfer of the stake to Elektrim Telekomunikacja (ET) had been invalid. The regional court decided that the ruling of the Court of Arbitration is valid in Poland. On this basis Deutsche Telekom (DT) exercised the buy option for the Elektrim stake and thus became the owner of 97% of the Polish mobile operator.
Source: PMR. For more info Ceeitandtelecom.com
The Office of Electronic Communications (UKE) has announced that 90% of people in Poland use telephone services (regardless of the technology used). This is one of the findings of a survey commissioned by the telecoms market regulator and carried out by CBM Indicator.
66% of respondents owned a fixed-line telephone, whereas the mobile penetration rate is 64% of the population. The figure is different from that reported recently by the Central Statistical Office (GUS), which stated that there are 36.7m active SIM cards in Poland, the equivalent of 96% of the population. According to the mobile operators, at the end of 2006 there were 30-33m mobile users in Poland.
TP SA lines are used by almost 91% of those who have a fixed-line telephone. 6% of respondents use the services of Tele2, and fewer than 5% are signed up with Telefonia Dialog.
The total number of mobile phone subscribers in Hungary exceeded 9.76 million in November 2006, the Hungarian Telecommunication Authority (NHH) reported. This translates into a 6.8% increase year on year and is 1.2% up on October. Meanwhile, the mobile penetration rate amounted to 96.9%, as compared with 90.7% a year earlier.
More than 93% of all users, i.e. over 9.08 million, have generated traffic in the past three months and can be considered to be active users.
Source: PMR. For more info Ceeitandtelecom.com
Vodafone Hungary’s fixed-line telephone service currently boasts 20,000 subscribers, according to Gyorgy Beck, the company’s CEO. The service, which was launched at the beginning of November 2006, provides customers with both fixed-line and mobile phone services through a single handset.
Vodafone is the smallest player of the three mobile operators present on the Hungarian market. In November 2006 the company had about 2.1 million subscribers, which translates into a 21.3% market share.
The total number of broadband internet subscribers in Hungary amounted to 859,000 at the end of November 2006. This is 41,000 higher than the month before, the National Communication Authority (NHH) reported.
DSL remains the main means of internet access in Hungary. There were 582,000 such connections in November, 58% more than a year earlier. The number of CaTV-based internet subscribers totalled 277,000.
Source: PMR. For more info Ceeitandtelecom.com
The total number of broadband internet subscribers in Hungary amounted to 859,000 at the end of November 2006. This is 41,000 higher than the month before, the National Communication Authority (NHH) reported.
DSL remains the main means of internet access in Hungary. There were 582,000 such connections in November, 58% more than a year earlier. The number of CaTV-based internet subscribers totalled 277,000.
Source: PMR. For more info Ceeitandtelecom.com
The fourth mobile phone operator is likely to embark upon the Czech market after the country’s regulator has granted its approval.
Pravo reports that the Czech Telecoms Office (CTU) has granted a frequency and numbers to a new operator. The operator has not yet been named, but the local newspaper says that the licence is held by the Austrian operator MobilKom.
The new network will operate in the 410-430 MHz band, in accordance with the CDMA standard, unlike the other three operators on the market, who now work in accordance with the GSM standard. The service will be available to 97% of the country’s population.
MobilKom will compete on the Czech market with the existing operators: Telefonica O2, Vodafone and T-Mobile. Representatives of O2 and T-Mobile have already confirmed that MobilKom has requested access to their networks. The Penta financial group, which is backing MobilKom, confirmed its intention to enter the Czech mobile market this year.
Source: PMR. For more info Ceeitandtelecom.com
The producer price index (PPI) amounted to 2.6% year on year in November, which was lower than in the previous month, GUS reported. The market had expected the PPI to be above 3%.
Over the last 12 months the highest growth in producer prices (of close to 15%) was noted in the mining-quarrying sector, mainly on account of a surge in metal ore mining prices. Prices in the electricity, gas and water supply sector were also much higher than in November 2005, while prices remained moderate in the manufacturing sector.
Source: PMR. For more info Polishmarket.com
The average gross monthly wage in the enterprise sector amounted to PLN 3,028 (approximately €795) in December, which is 8.5% higher than during the corresponding month of 2005, GUS reported. The market had expected a slower growth rate, i.e. in the region of 5.7% year on year.
During the last dozen or so months, wage growth in enterprises has oscillated around 5% year on year. The higher wage growth in December (just as was the case with the relatively lower growth rate in November) was, to a great extent, a statistical effect caused by the fact that bonuses in the mining sector were paid out according to a different timetable in 2006 than in 2005.
In 2006 as a whole the average gross monthly wage in the enterprise sector was 5.1% higher than a year earlier. We expect the high wage growth to continue in the coming months. In our opinion, wage growth should be in the region of 6% in 2007 thanks to continuing rapid economic growth, healthy financial condition of enterprises, falling unemployment and the strong outflow of labour abroad.
The average gross monthly wage in the enterprise sector amounted to PLN 3,028 (approximately €795) in December, which is 8.5% higher than during the corresponding month of 2005, GUS reported. The market had expected a slower growth rate, i.e. in the region of 5.7% year on year.
During the last dozen or so months, wage growth in enterprises has oscillated around 5% year on year. The higher wage growth in December (just as was the case with the relatively lower growth rate in November) was, to a great extent, a statistical effect caused by the fact that bonuses in the mining sector were paid out according to a different timetable in 2006 than in 2005.
In 2006 as a whole the average gross monthly wage in the enterprise sector was 5.1% higher than a year earlier. We expect the high wage growth to continue in the coming months. In our opinion, wage growth should be in the region of 6% in 2007 thanks to continuing rapid economic growth, healthy financial condition of enterprises, falling unemployment and the strong outflow of labour abroad.
The Poles, unlike the Slovaks, are the most resistant of the Central and Eastern Europe (CEE) nations to the privatisation of health care, according to the results of a survey conducted by a Hungarian research institute Tarki and the Central European Opinion Research Group (CEORG).
In the survey, which was conducted in Poland, Hungary and Slovakia, Slovaks appeared the most open to privatisation in the sector, with the Hungarians somewhere in the middle. Nearly two-thirds of Hungarians would allow some form of private money into certain areas of the healthcare sector.
80% of Hungarians were against the core services in hospitals being run by private firms, but over 50% would opt for privatisation of ancillary hospital care and other non-core services.
Source: PMR. For more info Pharmapoland.com
Bayer, a pharmaceutical and chemical group, is to sell its Wolff Walsrode business group, whose core business is cellulose products, to Dow Chemical Company. Walsrode has two operational plants, including one in Poland.
The transaction is expected to close in the first half of 2007, subject to regulatory approval. The financial terms have not been disclosed.
The move follows an announcement made by Bayer in March 2006 that it would divest its subsidiaries H. C. Starck and Wolff Walsrode AG in order to help finance the acquisition of Schering, according to Bayer management board chairman Werner Wenning.
Wolff Walsrode, with 2005 revenues exceeding $400m, would become an integral part of Dow's Water Soluble Polymers business. It will also provide additional investments in advantaged technologies, growing end-use markets and emerging geographies, according to Andrew Liveris, Dow’s chairman and CEO.
Source: PMR. For more info Pharmapoland.com
Orexo AB and the Hungarian pharmaceutical company Gedeon Richter have announced that they have entered into a distribution agreement under which Gedeon Richter accrues the exclusive rights to market and sell Rapinyl, Orexo’s patented product for management of breakthrough cancer pain. The agreement will cover CIS countries, Bulgaria, and Romania.
According to Zsolt Lavotha, president and CEO of Orexo, the company sees significant opportunities for pharmaceuticals in general and for innovative products such as Rapinyl in particular due to increasing purchasing power in Russia.
Actavis, a drug maker,was among 22 potential bidders to submit a letter of interest in the Romanian government’s 53% stake in Antibiotice Iasi, Robert Wessman, chief executive officer of the Icelander Group, has announced. ActavisGroup is seeking new targets after Barr Pharmaceuticalstrumped it for Pliva in September 2006 to become the world’s third-largest generics maker, behind Israel’s Teva and the Swiss Novartis.
According to Nomura Code, Antibiotice controls about 9% of the market. Actavis already has a share of 8% in Romania’s generic medicine market. With Antibiotice, Actavis could raise its market share to about 17%, challenging Czech drug maker Zentiva. Antiobiotice’s market value is some $300m. Actavis would like to use its production facilities.
Source: PMR. For more info Pharmapoland.com
Although the 289-item list of OTC drugs that can be sold outside pharmacies was made public several weeks ago, retailers are not queuing up for the licence.
According to Chief Pharmacy Officer, Csaba Antal, selling these products requires considerable investment. Consequently gas companies like Agip, Mol, Shell and OMV, retail chains like Tesco and DM and wholesale suppliers like Lekkerland, all of which have expressed an interest in stocking OTC drugs, are still waiting for further details and information.
Source: PMR. For more info Pharmapoland.com
Hesperion, a contract research organisation (CRO) and a subsidiary of Cerep, has opened a new office in Moscow. The company considers this a major step in its Eastern Europe expansion and a factor that will increase its attractiveness in the eyes of clinical trial sponsors wishing to conduct global research.
Hesperion’s Russian office is to provide a full range of standard CRO services, in addition to specialised facilities necessary due to the specific legal and regulatory requirements in Russia. One extra service offered is registration of new medications on the Russian market.
Aspects that should appeal to potential sponsors are Hesperion Russia’s database of research sites, covering the European part of Russia as well as Siberia and the Far East, and its staff – local CRAs, doctors specialising in cardiology, oncology, endocrinology, gastroenterology, paediatrics, gynaecology and psychiatry.
According to Dr. Markus Weissbach, CEO of Hesperion, the Russian office will also be a convenient location for managing studies in Ukraine, Belarus, Kazakhstan and other neighbouring countries.
Source: PMR. For more info Pharmapoland.com
Navamedic, a Norwegian manufacturer of glucosamine-based products, has signed a final agreement with Gruenenthal, a pharma firm of German origin, for marketing and distribution of its glucosamine product Glucomed/Flexove for a range of Central and Eastern Europe (CEE) countries, including Poland.
The agreement was signed for a period of 10 years. The other countries covered by the agreement are the Czech Republic, Belarus, Kazakhstan, Slovakia, Russia and Ukraine. Austria may also be added to the seven countries already covered by the agreement. The companies signed a framework agreement for this market on 10 January, and the final agreement is expected to be formally signed before the end of March 2007.
Source: PMR. For more info Pharmapoland.com
Solvay Pharmaceuticals, an international chemicals and pharmaceuticals group, has signed an agreement with Bioprojet, a French pharmaceutical company,to extend its gastroenterology portfolio to include racecadotril, a treatment for acute diarrhoea. The deal also covers Poland.
Solvay has registration agreements and exclusive distribution rights for a number of countries in Central and Eastern Europe (CEE), Russia and the Commonwealth of Independent States (CIS), Western Europe, Canada, South Africa and India, as well as other countries in Europe and Asia.
In addition to Poland, other CEE countries covered under the agreement are the Czech Republic, Slovakia, Estonia, Latvia, Lithuania, Hungary, Romania, Bulgaria and the Balkans. In Western Europe the markets included are Sweden, Finland, Norway, Denmark and Austria.
Source: PMR. For more info Pharmapoland.com
In January 2006 the Main Pharmaceutical Inspectorate (GIF) issued as many as seven advertising bans to specific pharmacies in Poland. Most of the bans concerned advertising folders containing information about the pharmacy’s products and services, supposedly Rx drugs. Surprisingly, in 2006 GIF did not issue even one such pharmacy advertising ban, even though the same law prohibiting advertisement of Rx or reimbursed drugs to the public was already in force.
Dr Ewa Skrzydlo-Tefelska of Soltysinski Kawecki & Szlezak, a law firm, told Pharma Poland News that such action by the GIF is justified by the current law. All market players should refrain from advertising Rx drugs to the public, including pharmacies. As it is hard to believe that not even one pharmacy advertised its products in such a way last year, the most likely explanation for these bans is the more thorough execution by the GIF of its duties this year. It may also have received tip-offs from the competition of the pharmacies concerned.
Source: PMR. For more info Pharmapoland.com
Poland and Lithuania have signed an agreement in Vilnius regarding the future construction of an energy bridge – trans-border link connecting the national power systems of the two countries. The aim of the bridge is to improve energy security in the region.
The project will involve not only building a Elk-Olita trans-border line, but also a line within the Polish system itself that will link up the investment with the National Power System. The total cost of technically integrating the energy systems of both states is estimated to be around €290m.
Construction of the bridge is due to begin in 2007 and will be completed by 2011. Thanks to the new connection with Poland, Lithuania, Latvia and Estonia will be able to incorporate their networks into the European energy system.
Source: PMR. For more info Polishmarket.com
The Wroclaw municipality has launched its four-year “400 tenements” programme. The project, which involves the renovation of 400 council buildings, will set the city back around PLN 250m (€64.4m).
Over the next four years 25,000 Wroclawians residing in municipality-owned buildings will benefit from renovated roofs and stairwells, new windows and freshly painted walls – including external facades. Up till now the municipality has been renovating 30 tenements a year. From now on at least 100 buildings will receive a facelift annually. The programme concerns buildings wholly owned by the municipality.
Source: PMR. For more info Polishmarket.com
Last week, the authorities gave the go-ahead for construction work to begin on several bypasses planned for Polish towns and cities.
The Krakow branch of the General Directorate of National Roads and Motorways (GDDKiA) announced that a bypass on national road No. 28 is to be built near Limanowa, a town with a population of 15,000 inhabitants (Malopolskie voivodship). The project will cost around PLN 40m (€10.2m) and is planned for 2009-2010.
Meanwhile, two bypasses planned for Gostynin and Plonsk (Mazowieckie voivodship) will be ready by 2009.
The tender for the 8.5 km Gostynin ring road, which will lie on route No. 60, will be announced in the spring. The investment will cost more than PLN 80m (€20.5m). This year should also see the launch of construction work on a northern ring road for the town on route 265 leading to city of Kowal.
Source: PMR. For more info Polishmarket.com
Over half of the tenders and orders announced in 2006 for services, project execution and deliveries concerned construction works. On a disquieting note, in the past year the industry began to note tenders that were not finalised because of overly high bids.
Source: PMR. For more info Polishmarket.com
PKN Orlen, the largest Polish petrochemical concern, paid $2.3bn to become the owner of an 84.36% stake in the Lithuanian refinery Mazeikiu Nafta.
PKN Orlen purchased a block of 53.7% shares from the Russian concern Yukos and another 30.66% from the government of Lithuania.
The PKN Orlen acquisition of the majority stake in Mazeikiu Nafta represents the largest investment in the refinery and petrochemical sector of Central and Eastern Europe of recent years. Concurrently, it is the largest foreign investment ever made by a Polish company. The transaction gives the region its largest enterprise in the refining and petrochemical industry, capable of processing 31.7 tonnes of crude a year, with 2,732 petrol stations in Poland, German, the Czech Republic and Lithuania.
Source: PMR. For more info Polishmarket.com
We already know the data pertaining to most of last year’s macroeconomic figures. They form a very positive image of the Polish economy. GDP grew by 5.8% in 2006 and economic growth accelerated steadily every quarter, fuelled by strong domestic consumption and investments, amidst low inflation and a steady improvement on the labour market. What is more, the forecasts for 2007 remain just as favourable.
Source: PMR. For more info - Polishmarket.com
