Foreign Investments In Europe Before the World Crisis

Although each investor is looking for the best investment, the decisions of the others reveal important characteristics of the investment destinations. The last reliable data internationally is available for 2008, the start of the world economic crisis. In the business cycle before the big criris the Visegrad Countries, especially Hungary and Slovakia has been very attractive investment targets.

The World Bank data are partly misleading, as they comprise equity FDI into the financial sector, which will partly be used elsewhere, where loans or insurance claims are made - this makes the Benelux area and the UK slightly incompatible with the rest of Europe. However, in Central Europe most of the direct investment went into manufacturing and services. The big question is if the Visegrad Countries will remain competitive after the crisis. The answer is most probably yes: Poland has conducted a large-scale privatization program during the world economic crisis and maintained growth even in 2009. The currency devaluation in Poland, the Czech Republic and Hungary will help export greatly in 2010.

Polish privatization: Fabryka Łączników Radom S.A.

The Ministry of Treasury in Poland invites to participate in the negotiations to purchase the shares of Fabryka Łączników Radom S.A.The principal object of Company’s activity is cast iron founding, manufacture of cast iron tubes, manufacture of other metal products, metal processing and coating. It encompasses more than 200 assortments of fittings, heater couplings and castings made of blackhearth malleable cast iron in grade W400-5, sized from 3/8 - 4 inches, manufactured according to PN-EN 10142, ISO 49, DIN 2950 with the use of clay-bonded sands, and thermosetting core compounds and phenol-formaldehyde resin-bonded sand cores.

Fittings Factory Radom S.A. is the largest producer of cast iron fittings in the domestic market. It’s market share is estimated at the level of 4-5 thousand tonnes, which constitutes approx. 40% of the overall demand for fittings.

The deadline for submitting written Responses by the Potential Investors who have received the Memorandum shall expire 30.04.2010 at 14.00 Warsaw time.

Polish privatization: „ZETOM” in quality research

The Ministry of Treasury in Poland offers for purchase the shares of the company "ZETOM":The Company is engaged in research activities in the field of quality, including tests for assessing the quality of products, certification of products and manufacturing processes and testing and measurement of technical and operational characteristics of materials and products. The company is also developing and carrying out the analysis of quality control in production and supply manufacturers, issuing approval and confirmation of receipt of technical reliability and the accuracy of measuring instruments for measuring and control by the calibration. The company also runs an interdisciplinary research and laboratory testing and provide training and implement new methods and quality management systems.

Deadline to submit written offers expires on 11.03.2010 at 15.00 Warsaw Time.

Polish Privatization: Solanki Uzdrowisko Inowrocław Sp. z o.o.

The Ministry of Treasury, Poland, offers for sale the shares of three different companies in the area of medical practice and physiotherapy.The first company, "Solanki" also offers accommodation and has a great spa. "SOLANKI" resort is a 55-hectare PARK with salt springs. It won two quality awards in 2009. A Silver Medal for the services in Solanki Weekend and a Bronze Medal for Holiday Treatments. The company was also awarded with a “Business Gazelle” prize for being among the most dynamic companies in Poland.
The resort "SOLANKI" Uzdrowisko Inowrocław is located in the capital city of Kujawy Zachodnie, Inowrocław, referred to as the “town on salt”.


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The deadline for submitting written responses to the public invitation to negotiations for the purchase of the Companies’ shares shall be 8 March 2010, 2:00 PM Warsaw Time. The two other companies with similar profile are "Ustron S.A." and "Uzdrowisko Połczyn S.A.". They are for sale by the same deadline.

Polish Privatization: Uzdrowisko Połczyn S.A. in Health Services

The Ministry of Treasury in Poland, offers for sale the shares of a medical treatments center, hotel, spa and wellness resort. Uzdrowisko Połczyn S.A. is located in North-Western Poland near forestry, lakes and nature reserves. The company has a hotel, spa and wellness services besides the medical treatments and examinations. In addition to therapeutic mud and salt springs, the most important treaure of Połczyn Zdrój is the Resort Park. An area of some 80 hectares is so heterogenous and has so many highlights that it has to take a few days to explore them all.

Central Europe is an ideal target for health services investments. Personal costs are low, and the facilities are relatively close and easily reached from rich countries. North-American, and sometimes European private insurers are contracting more and more outsourced facilities due to their much lower cost and high quality, especially when a longer therapy is needed.


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The deadline for submitting written responses to the public invitation to negotiations for the purchase of the Companies’ shares shall be 8 March 2010, 2:00 PM Warsaw Time. The two other companies with similar profile are "Ustron" and "Solanki". They are for sale by the same deadline.

Polish Privatization: Polskie Centrum Badań i Certyfikacji S.A.

The Polskie Centrum Badań i Certyfikacji S.A. is the leader in the Polish market in the scope of certification, testing, and training. The company is very well known outside Poland. It is an active member of international testing and certification organisations (EOQ, EFQM, IQNet, IECEE, CCA).
For further information on the financial situation of the company, the "Information Memorandum of the Company" can be purchased. The price of the shares and investment obligations will be negotiated.

PCBC S.A. conducts business activity mainly in the scope of: certification of management systems, organisation of the certification system for the registered trade and specification marks B, Q, Eko and the European ecological mark Ecolabel, product certification, conformity assessments in scope of the 10 directives, personnel certification, organisation of trainings and staff improvement in scope of quality (testing, certification, accreditation, management systems, TQM), product testing, certification of ecological households. The company’s representative represents Poland in the European Union Eco-labelling Board.

The deadline for written responses shall expire on 10 March 2010, at 15.00 CET.

Polish Privatization: Medical practice and physiotherapy in Ustroń

The Ministry of Treasury, Poland, offers for sale the shares of three different companies in the area of medical practice and physiotherapy. “Ustroń” is located in the Silesian County near the Poland - Czech Republic - Slovakia border with great surroundings and infrastructure. The town has been a health resort town for a long time and it is very well located from a touristic point of view. The mountains are nearby for hiking and the pyramid shaped hotels of the company give a futuristic outlook to the village. They also offer spa treatment and rehabilitation services.

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For further information a "Company Memorandum" can be purchased. The deadline for submitting written responses to the public invitation to negotiations for the purchase of the Companies’ shares shall be 8 March 2010, 2:00 PM Warsaw Time. The two other companies with same profile are Uzdrowisko Połczyn S.A. and "Solanki". Their shares are for sale by the same deadline.

Polish Privatization: Zakłady Maszynowe HAMECH Sp. z o.o.

"Hamech" was established in 1916, located in northeastern Poland near one of Poland’s biggest forests. Its main activity is the production of machinery and equipment for the timber, furniture and forest industries. Nowadays the main products are drying kilns, environmentally friendly heating systems and woodworking machines.

The State Treasury owns 100% of the shares. In the privatization tender the 15% of the shares can be bought by the employees and the remaining 85% is up for sale to investors. The nominal value of the stock is PLN2 550 000 (€639,944; $885,909). The price of the shares and the future development plans of the investor will be up to negotiations.

The deadline for submitting written Responses by the Potential Investors who have received the Memorandum shall expire on 5 March 2010 at 2:00 PM, Warsaw time. (Special formal rules apply for foreign bidders).

Polish Privatization: A Power Generation Plant with Mines

The following power generation unit and accompanying mines are for sale in Poland.
The core business activity of KWB Adamów and KWB Konin is lignite and extraction of accompanying minerals. The core business activity of ZE PAK is energy and heat generation. ZE PAK SA delivers about 8.5 per cent of all electricity generated in Poland and is the second largest producer of electricity obtained from brown coal in this country. Its total installed generating capacity is 2512 MW. Its main power stations were built between 1958 and 1974, four generating units were refurbished recently and a new one added in 2007.

The total sales of ZE PAK was 11 529 053 165 MWh electricity and 2 216 082 GJ thermal energy in 2007 and its net profit was €10,812,872 or $14,819,524 (at 2010 exchange rates).

The joint price of the shares and the development conception of the investor shall be part of the negotiations. The deadline for submission of written responses is 15 March 2010 at 12:00 Warsaw Time.


Polish Privatization: Zakłady Maszyn Chemicznych „METALCHEM” Sp. z o.o.

Zakłady Maszyn Chemicznych „METALCHEM” Sp. z o.o (Chemical Machinery Plant „METALCHEM” Ltd) is a single-plant company located in the industrial district on the outskirts of Gliwice. The company produces machines for the chemical industry and plastics processing machines. At present extruders, extrusion lines as well as spare parts for these machines, including chiefly the plasticizing units account for 100% of production.

The State Treasury owns 100% of the Company’s shares. In the acquisition process the 85% of the shares is up for sale, namely a block of 68,000 shares, having a par value of PLN 50.00. (€12.31, $17.38). The price is the subject matter of negotiations but the nominal value of the stock is €837,080, $1,181,840.

In the International Fair of Plastic Processing the products of Metalchem were remunerated and the company’s long time results were awarded by COFACE Poland with the title of “Business Gazelle” in 2005.

The deadline for submission of written responses expires at 3.00 p.m. (Central European Time) on February 19, 2010.

Polish Privatization: PKS Zawiercie SA

Przedsiębiorstwo Komunikacji Samochodowej w Zawierciu SA is a Polish public transport company. Its main activities are passenger land transport, urban and suburban passenger land transport and support activities for land transport such as renting vehicles and maintenance activities.

In the privatization tender 334,050 registered shares are for sale. A single buyer can buy a minimum of 10% of shares and a maximum 85% commanding majority in the company. The nominal value of the shares is €835,125, $1,169,175. A “Company Memorandum” can be bought containing information on its legal, economic and financial standing. The fee for the “Company Memorandum” is PLN 100.00 (€25, $35). Similar conditions apply for another similar public transport company that could be ideally paired in Lubliniec.

Zawiercie is a city in southern Poland with 55,800 inhabitants. The company offers an affordable stepping stone to the Polish (and possibly Czech and Slovak) public transport market. This market has been significantly liberalized in the EU effective from December 2009.


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Written replies must be submitted by 8 February 2010 (3:00 PM Warsaw time).

Polish Privatization: Rubber Product Manufacturer Stomil

Bydgoskie Zakłady Przemysłu Gumowego "STOMIL" S.A. is a leading manufacturer of rubber products in Poland. In its early years called "Kauczuk", which was changed in 1970 to "Stomil". Since 1998 it is owned by the Polish Treasury.

In the privatization tender 2,641,460 ordinary shares are for sale, a single buyer can buy a minimum of 10% and a maximum 85% commanding majority in the company. The starting price of the shares is PLN 10.00, or PLN 26.41 million (€6.6 million or $9.4 million) for the majority stake.

The privatization bid's deadline is 22 January 2010 (Warsaw time).

Hungary, Slovakia: Nationalization in the Crisis

Hungary and Slovakia are coping with the crisis of the real economy with a notably different approach than Poland. While Poland's right-wing government remains committed to its large privatization scheme despite the low asset prices, the other two Visegrad countries' left-wing governments went into buying. (The Czech Republic, as usual, has only a modest care-taker government).

On November 5 the Slovak national assembly passed a law that permits the state to buy bankrupt firms which have been declared to be 'strategic'. The economy minister Ľubomír Jahnátek believes that this is an anti-crisis measure.

The Hungarian government bought back Malév, the former national airways from AirBridge. AirBridge is a strange joint company of the Russian state-owned bank Vnesheconombank , and a Hungarian private individual, Magdolna Költő. The asset-stripped, indebted Malév was privatized for a mere €1 million three years ago. The government, which is a big creditor or the company that fails to pay taxes and compulsory social security after its workers, spends approximately €70 million on the failed air passenger carrier. There has been rumors that the Hungarian state, or one of its enterprises will nationalize Hungary's first alternative gas supplier.

The Visegrad Countries are going against economic orthodoxy which boosts the economy with excess demand and sells companies when share prices are high. Poland wants to get rid of its underperforming state-owned portfolio, while the Slovak and Hungarian government claims to save jobs with nationalizing failed private companies, not unlike the US government in the automotive industry. However, Slovakia enjoys a healthy public finance as it has just recently entered the euro-zone and fared much better fulfilling the Maastrich-criteria than most EU economies. Hungary, much like the United States, is increasing an unhealthy budget deficit and an almost impossibly oversized state debt.