Business, Special Economic Zones in Poland
Finally- a breakthrough in negotiations! Liugong accepts the pack of labor guarantees. Acquisition of Huta Stalowa Wola will cost 250 million zlotys. It seems to be the biggest Chinese business in Poland so far.
Liugong Machinery, main company producing road construction and earth moving machinery, has made an agreement with unions. Social issues have blocked the negotiations for more than half a year. Taking over the civilian part of HSW, well-known producer of excavators, dozers and heavy building machinery, will cost Liugong nearly a quarter million zlotys. This price can be even higher, because polish company has increases sales and consolidated assets. Much higher value will have a whole project of Chinese in Stalowa Wola. It is known unofficially, that producer plans to create an European development centre with equipment distribution hub. Spending for those projects would reach 1.2 billion.
The most valuable issue for polish company is an access for global distribution network, new knowledge of logistics and production for greater scale- the president of Industry development Agency, Wojciech Dabrowki says. Mr. Dabrowski admits that the setback with COVEC company that stopped works on A1 highway, had had an influence on negotiations. Chinese have rejected that this incident influenced their strategy, but when we look into their economic calculations, it is clear that they are very scrupulous- IDA’s president says. Experiences with HSW privatization will have long-run effect on further plans of Chinese business in country and whole region.
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