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Automotive sector to be major source of FDI in 2011


The automotive sector will be one of the biggest sources of foreign direct investment (FDI) inflows into Poland in 2011, the Polish Information and Foreign Investment Agency (PAIiIZ) predicts. In January the Agency was negotiating 24 new projects by foreign automotive firms (particularly parts manufacturers), roughly a fifth of all new projects and compared with 23 for the BPO sector and 14 from the machinery industry, according to PAIiIZ data seen by Rzeczpospolita. The total value of these potential investments was a little over €1.86bn, i.e. more than 40% of all new investments. And the number of jobs to be created, at almost 7,600, was also greater than in any other industry.

Meanwhile, the Katowice Special Economic Zone (KSSE) is known to be in talks with two automotive firms, one from India and one with German-American capital, about projects worth over €1bn. And a survey by Deloitte showed that almost 75% of automotive firms present in Poland planned new investments in 2011, encouraged by improving demand and rising sales revenues. Several car makers or parts manufacturers will initiate or complete investment projects which have already been announced, including Federal Mogul, MAN, Brembo, or Autoliv.

However, the Polish Automotive Industry Association (PZPM) cautions that further development of the country’s car sector might be impeded by the weakness of domestic vehicle sales.

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