Wrocław Agglomeration Sector Analyses - Electronics Industry

W rocław Agglom eration Sector Analyses

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» Invest in W roclawCity of Perspectives

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ELECTRONICS AND HOUSEHOLD APPLIANCES

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Invest in WroclawCity of Perspectives

CONTENTS

The Polish Consumer Electronics and Household Appliances Sector

Lower Silesia and the Wroclaw Agglomeration as a Location for Investment

Development Prospects

Investment Incentives

The Regional Labour Market

Case Study- LG

Case Study- Whirlpool

The publication prepared in cooperation:

supporting decision makers QQQ2

Introduction

Wrocław is a unique and dynamic city, making an excellent place for investment and business development. The Wroclaw Agglomeration's assets have not only been long appreciated by foreign investors, but they also have become a foundation for growth and global expansion of many well known Polish companies. However, the contemporary dynamics of change results in emergence of new needs, making information an increasingly valuable business resource. Both foreign conglomerates and domestic businesses seek useful information, indispensable in successful investment related decision-making. New economic conditions require undertaking non-standard action, which led to originating the Invest in Wroclaw project (www.invest-in-wroclaw.pl). Many risk factors can be avoided, if one has a better understanding of sector-specific determinants and the development prospects of their own line of business as well as related industries. This was the rationale behind studies of the Wroclaw Agglomeration's priority, strongly developing sectors, including the following ones:

Automotive industry. Electronics, Chemical and pharmaceutical industry. Mechanical engineering, IT, BPO, Food industry.

We hope that the free of charge sector analyses will facilitate decision-making not only for potential investors, but also the companies already operating in the area of the Wroclaw Agglomeration. Integration of information from different sources is supposed to contribute to establishing co-operation between suppliers, subcontractors and recipients from diverse lines of business related to sectors which are priority for Wroclaw's development. Due to improving market transparency and increased ease of contact with businesses, the resulting benefits may be also enjoyed by local administration units, and most notably local communities. By combining all of the elements mentioned, it becomes possible for the whole Wroclaw Agglomeration region to increase its growth dynamics and attain a competitive advantage. We hope that in this way we are redefining the standards of support for business development.

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Chapter 1 I Wrocław Agglomeration Sector Analyses - Electronics and Household Appliances

The Polish Consumer Electronics andHousehold Appliances Sector

Even though the history of the Polish consumer electronics and household appliances sector dates back to the 1930's, it is fairly recently that it has transformed into Poland's most rapidly developing industry. Over a few recent years, Poland has become one of Europe's major consumer electronics and household appliances producers, which to a large extent is a result of an immense inflow of foreign investment, both in the form of greenfield development projects and mergers or acquisitions. In 2012, the value of sold production in the electronics sector in Poland (excluding household appliances) amounted to 35.6 billion PEN (according to Central Statistical Office data). Boasting almost 19 million TV's and display monitor units manufactured in 2013, Poland is one of the leaders of the European TV electronics sector. Then, the value of household electronics goods produced amounted to 12 billion PLN. In 2013, the output of household appliances manufacturing plants located in Poland reached 23.1 million units, which makes Poland one of the European market leaders. An average 70-80 per cent of the goods produced in Poland reach European markets, which is a testament to the high competitiveness of the Polish manufacture. It is also worth emphasizing that global conglomerates present in Poland are still developing their operations, opening new manufacturing plants and R&D centres, as well as launching new products.

According to the Infomarket centre's forecasts, consumer electronics and household appliances manufacture in Poland will have reached 13.8 billion EUR in 2014, thus making Poland the European leader. In this respect, Poland is consistently increasing its advantage over Germany and Italy. In the years to come, we may expect a little rise on the market, both in terms of quantity and value, amounting to 2-3 per cent. The most important information with regard to the structure of the Polish consumer electronics and household appliances manufacture throughout 2005-2013 is provided in table 1.

01. The Polish consumer electronics and household appliances production

Annual production (in thousands of units) 2005 2008 2009 2010 2011 2012 2013

TV's and display monitor units 6 733 17 563 21 559 26 349 20 674 20 526 18 691

Refrigerators 1674 2 253 1886 1867 2 066 2 221 2 885

Dishwashers 960 2 043 2 340 2 780 2 966 3110 3 471

Washing machines and dryers 1447 2 471 3190 4 025 4 372 4 957 5 634

Cookers 873 1705 977 1214 1405 1507 1373

Vacuum cleaners 892 1165 1068 947

Ovens 968 1087 1293 1350

Mixers and food processors 5 460 5 494 4 894 4 541

Source: Central Statistical Office (GUS) Industrial goods manufacture throughout 2005-2013.

When analysing the structure of consumer electronics and household appliances production in Poland, it is worth looking at the largest share of the market, i.e. TV's and display monitor units. Their manufacture throughout 2005-2013 ^^^|almost threefold. In 2010, a record quantity of almost 27 million units was produced in Poland. Throughout 2010-2013, despite the visible drop, the production output still maintained the very high volume of 19-20 million units, with a gradual increase in the segment's production to be expected in future years. Graphical illustration of TV and display monitor production is provided in figure 2.

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02. TVs and display monitor units production output throughout 2005-2013 (in thousands)


Even more promising tendencies can be observed in the area of refrigerator manufacture. Here, the output also rapidly grew from 2015 to 2013, to finally reach the volume of almost 3 million units. Interestingly, in spite of the economic downturn, refrigerator production in Poland increased by almost 30% in 2013 as against the previous year, which is illustrated in figure 3.

03. Production of refrigerators throughout 2005-2013 (in thousands)


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Also the Polish market of dishwashers is developing very rapidly. A continual production output growth has been observed since 2005. In 2013, almost 3.5 million dishwasher units were manufactured, making the output already over 3.5 times as large as in 2005. It is worth stressing that in spite of the difficult economic conditions, the Polish dishwasher production in 2013 rose by over 10% compared to the previous year - see figure 4.

04. Production of dishwashers throughout 2005-2013 (in thousands)

2005 2008 2010 2011 2012 2013


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Lower Silesia and the WroclawAgglomeration, as a Location for Investment

05. Revenue of selected enterprises from electronics sector active in Lower Silesia (in thousands)

4 268

Source: Dunn and Bradstreet 2013 (*result attained by all departments operating in Poland)

Apart from the TV/LCD cluster near Wroclaw, Lower Silesia seems to be an ideal place to run an operation, as far as household appliance production is concerned. Electrolux - the largest manufacturer of household appliances including cookers, refrigerators, dishwashers or washing machines - has located three of its four Polish production facilities in Lower Silesia. Each of them focuses on a particular product, with total employment in the plants amounting to over 2,250 staff, which makes Electrolux one of the region's biggest employers. Operation of a slightly smaller scale is run by the American household appliance manufacturer Whirlpool and the LG company, which, along with Electrolux, make Lower Silesia one of Europe's leading regions in terms of household appliance production output. Apart from the largest enterprises manufacturing end products such as TV's or cookers, the region boasts a considerable number of suppliers, generating a significant added value to the local economy. The Lower Silesia based suppliers constitute a key element of the sector's well developed value chain.

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4 268

3 113

2 712

1 768 1 653

876

387 313 306 287



To the most important product groups in the Lower Silesian consumer electronics and household appliances sector belong: TV's and monitors, fridges, dish washers, washing machines, dryers, cookers, vacuum cleaners, ovens and mixers.

06. The largest employers operating in the consumer electronics and household appliances sector in Lower Silesia.

Administrative districtCompany Manufacture segment (Special Economic

Zonę)Country of origin Staff employed

Heesung Electronics Poland TV's Kobierzyce (TSSE) Sou th K orea 3 000

Whirlpool PolandCookers, washing

machines, refrigeratorsWrocław (WSSE) U S A 3 000

LG Display Poland LCD displays Kobierzyce (TSSE) Sou th K orea 2100

LG Electronics WroclawRefrigerators, TV's, washing machines

Kobierzyce (TSSE) Sou th K orea 1400

Dong Yang ElectronicsPlastic frames for LCD

displaysKobierzyce (TSSE) Sou th K orea 1000

Electrolux Poland pralki Oława (WSSE) S w e d e n 1000

Dongseo Display Poland Parts for LCD displays Kobierzyce (TSSE) Sou th K orea 700

Electrolux Poland dishwashers Żarów (WSSE) S w e d e n 700

Toshiba Television Central Europe TV's Kobierzyce (TSSE) J apan 700

3M Wroclaw foil for LCD displays Wrocław (WSSE) U S A 600

Electrolux Poland cookers Świdnica (WSSE) S w e d e n 550

LG Chem Poland Polarizing filters & PDP Kobierzyce (TSSE) Sou th K orea 530

LG Innotek PolandElectronic components

for LCD displaysKobierzyce (TSSE) Sou th K orea 500

Technisat Digital odbiorniki cyfrowe Oborniki Śląskie G erm an y 500

ELICA Group PolandComponents for

household appliancesJelcz-Lasko wice (WSSE) Italy 480

Starion Wroclaw frames for LCD TV's Kobierzyce (TSSE) Sou th K orea 355

Rosa Europeplastic components for household appliances

Wrocław (WSSE) Italy 300

T&P Polandcomponents for

household appliancesŻarów (WSSE) Italy 240

Chung Hong Electronics Poland PCB boards Kobierzyce (TSSE) C h in a 200

Source: Bisnode base 8



Territorial distribution of the electronic sector's companies operating in Lower Silesia is presented in figure 7. A strong concentration of the sector's companies can be observed in the area of the region's largest economic centre i.e. the city of Wroclaw. A considerably smaller number of companies are located near other bigger cities of Lower Silesia (Oława, Wałbrzych). The sector's companies' location mainly stems from logistic determinants, as well as the need to ensure adequate human resources indispensable in large-scale manufacturing operation. Moreover, investment incentives available in the area of the Wrocław-Kobierzyce Special Economic Zone (a subzone of the Tarnobrzeg Special Economic Zone) influence the location of companies from the consumer electronics sector.

07. Geographic distribution of consumer electronics/home appliances sector companies in Lower Silesia

GłogówGóra

\ Po

\ Lubin

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Source: Invest In Wroclaw

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Development Prospects

Poland is an exceptionally attractive location for production facilities of consumer electronics and household appliances, with proof being global concerns' most Polish investment projects undertaken so far. Among the producers of household appliances operating in Poland there are also domestic enterprises conquering foreign markets. Arnica, the best established Polish manufacturer of household appliances, sells approximately 50% of its output to 40 foreign markets. The sector's second domestic leader Zelmer became part of the BSH conglomerate in 2013. The brand of Zelmer, the renowned manufacturer of products including vacuum cleaners, is well- established in the countries of Eastern Europe.

The good development prospect in terms of investment in the consumer electronics and household appliances market is ensured by the following factors:

^ Long-term tradition of household appliances and electronics manufacture;

^ presence of key international conglomerates manufacturing electronic goods and household appliances, along with their solid technological bases,

^ superbly trained and experienced staff, offering the highest knowledge standards in their field of operation;

^ extensive network of co-operators and suppliers; SMB's are very well prepared to co-operate with large organisations as suppliers;

^ Poland's excellent geographical location, with its access to foreign markets of both the European Union and the countries of Eastern Europe,

^ consistently high absorption capacity of the domestic market -12 million households,

^ institutional climate: the state provides assistance to manufacturers establishing their own R&D centres;

^ clusters: continually developing technological parks closely co-operating with scientific centres;

^ investment growth: new investment projects generating demand for services and products offered by suppliers from the electronics and household appliances sector;

^ investment incentives and the attractive support system offered to foreign investors from the electronics and household appliances sectors.

It is worth pointing out that Wroclaw has an immense human resources potential. It offers not only a sufficient number of skilled labourers, but also ample research and development background. Factors to a large extent contributing to its growth include diverse initiatives oriented towards development of co-operation of science and education with business.

The most important initiatives in this area are the following:

^ Wroclaw University of Technology - the educational institution is consistently extending the group of its business partners, among whom well-established companies are found, including Whirpool, Siemens.

^ The "Increase in the Number of Wroclaw University of Technology Graduates of Majors of Key Importance to the Knowledge-Based Economy" project conducted throughout 2009-2013, focusing on 9 majors of studies commissioned by the Ministry of Science and Higher Education, with automatics and robotics, mechatronics or machine construction among them. Within the framework of the project, also scholarships abroad were offered, in university centres including: the University of Columbia in New York or Stuttgart University, thanks to which students of the Wroclaw University of Technology have had an opportunity to visit facilities such as Porsche and Mercedes production plants.

^ Co-operation of the Wroclaw's secondary schools in the area of vocational training with companies hailing from the consumer electronics and household appliances sector:a) Associated Schools no. 18 in Wroclaw trains future mechanical technicians in collaboration with Whirlpool company,b) Bosch and Siemens co-operate with the Aviation Science Institute in the area of educating technicians,c) LG Display helps train future mechatronics technicians at the Power Engineering Scientific Institute.

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Investment Incentives

Investors from electronic sector who consider conducting their business projects in Poland are eligible to apply for public assistance. The most important investment incentives in the form of public assistance include the following:

^ Income tax exemption in Special Economic Zones,^ Government subsidies for investments of a considerable importance to the economy,^ Property tax exemption, granted on the basis of particular local governments resolutions,^ Subsidies from the EU structural funds

Electronic sector has been categorised as one of sectors seen as priority from the point of view of Polish economy development, which entails an opportunity to execute a new investment project with use of direct subsidies from the state budget, within the framework of the so-called "Long-term Support Programs,,*. The assistance is offered on the basis of the volume of newly created workplaces and the total value of investment outlay.

The maximum volume of incentive that an investment project is eligible to receive is determined by the assistance intensity defined on the map of regional support. The maximum volume of regional support is, in turn, expressed as a percentage of the qualified costs (i.e. project costs). The total amount of incentive granted cannot exceed the value of qualified costs multiplied by the regional intensity index. The regional support intensity index for Wroclaw and Lower Silesia in the period of 2014 - 2020 accounts for 25%.

08. Available sources of public assistance*

Support program for investments of a major significance to the Polish economy over the years 2011-2020

Subsidies -------------------------------------------------------------------------------------

EU funds

Income tax (CIT or PIT) exemption of income generated by business operation within a Special Economic Zone

Tax exemptions -----------------------------------------------------------------------------------

Property tax exemptions

Subsidies for research and development.

Subsidies for training,

Grants and subsidies with regard to newly created workplaces.

Other investment incentives Subsidies and preferential loans from domestic sources forprojects related to environmental protection (waste management, energy efficiency),

Tax incentives for research and development operation,

Preferential loans for purchase or implementation of innovative technologies - the so-called technological loan.

Detailed criteria and requirements for potential investors are defined within individual forms of public aid11



Wroclaw's labour market is one of the fastest developing and most stable Polish regional markets. It is determined, on the one hand, by the availability of human resources, including highly qualified engineers, and low labour costs given employees' standard of qualifications, on the other hand - by the diversity of economy sectors present, with the electronics industry high-ranking in importance.

the third quarter of 2014, the unemployment rate in the Lower Silesian Voivodship amounted to 8.3%, with Wroclaw seeing the rate of 4.8%. There were slightly over 1.17 million professionally active people, accounting for 40% of the entire population of the voivodship. The increase in the number of employed people, as against the previous year, reached 20 thousand.

Electronics / household appliances sector

The electronics industry is one of the world economy's fastest growing sectors. Manufacturers of electronic and optical goods, along with producers of electric devices provide 5.3% of the Polish industry's workplaces. Due to the many years' tradition of household appliances manufacture as well as the availability of well qualified workforce, Poland is an exceptionally attractive location for consumer electronics and household appliances production facilities. As of the end of 2012, the value of foreign direct investors' revenue on account of capital invested in Poland reached almost 480 million PLN.

09. Production in Electronics and Household Appliances sector (2012)

Production of computers and optical and electronic goods

Staff employed in thousands 59,3

Foreign direct investors' revenue on account of capital invested in Poland in millions of PLN

477,5

Export volume in millions of PLN 19 535,4

Production of electric devices

Staff employed in thousands 95,0

Foreign direct investors' revenue on account of capital invested in Poland in millions of PLN

-

Export volume in millions of PLN 27 736,8

Source: Central Statistical Office (GUS), The Statistical Yearbook of Industry, National Bank of Poland data.

In 2010, companies producing computers and electronic and optical goods employed almost 67 thousand staff. For comparison, in Hungary the sector employs 12 % and in the Czech Republic - as much as over 40% less staff. A technological cluster of the Korean conglomerate LG operates in the Wroclaw neighbouring administrative district of Kobierzyce. It is one of Poland's biggest investments of this kind, being the base for operation of companies including LG Display, manufacturing LCD and LED panels, or LG Electronics, a producer of refrigerators and TV's. The cluster is also home to suppliers such as LG Innotek and Heesung Electronics

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Education

Wrocław is ranked one of the biggest academic centres of Poland, next to Warsaw, Cracow and Poznań. In Wroclaw alone, ca. 130 thousand people are studying at 24 higher education institutions. In terms of students' numbers, Wroclaw is Poland's third largest academic city, following Warsaw and Cracow. It outstrips significant centres including Poznan, Łódź, Gdansk or Lublin. In 2013, over 34 thousand graduates left the city's universities. The key higher education institution on the map of Wroclaw is Wroclaw University of Technology (35 thousand students), providing education in areas such as electronics, automatics and robotics, or mechatronics.

Labour costs

Compared to other EU countries, labour costs in Poland are still some of the lowest. A Pole's average gross income accounts for as little as 1/5 of pay received by Danish people, the Union's best paid employees, 23% of Irish people's pay, 1/3 of Britons' and Germans' income, and 40% of what Spanish employees earn. In March 2014, the average gross monthly salary in enterprises amounted to 4,017.8 PLN. In this period, the regions which saw the highest level of pay were the voivodships of Mazovia (5,107.2 PLN), Pomerania (4,159.5 PLN) and Silesia (4,073.7 PLN). The residents of the Lower Silesian Voivodship employed in enterprises earn less than the domestic average, with average pay amounting to 3,841.4 PLN. Poland's electronics sector offers the average pay of 3,294 PLN in computer and electronic and optical products manufacture, with 3,691 PLN of average pay in electric devices production. At the same time, the consumer electronics industry remains one of the sectors characterised by the highest work efficiency level. In Wroclaw, ordinary workers employed in the sector are paid an average 4,440 PLN, with specialists earning 4,870 PLN and managers 10,110 PLN.

10. Total monthly pay in Wroclaw's electronic engineering and electronics sector, in PLN

Position First quartile Median Third quartile

directors 22 470 26 910 32 210

managers 8 220 10 110 12 250

specialists 4 270 4 870 5 520

ordinary workers 3 900 4 440 5 000

Source: Pay reports by HRM partners 2013.

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Case Study^ LG

The most spectacular investment in the sector of consumer electronics and household appliances is beyond doubt the one made by the group concentrated around LG in Kobierzyce. It involves manufacture of electronics (LED and OLED TV's) and household appliances. The Kobierzyce investment is Poland's biggest greenfield project. The total capital involvement in Poland declared by the LG conglomerate amounts to an estimated 1 billion EUR plus, with employment reaching almost 13 thousand staff. The numbers pertain to the investments of the concern and its suppliers, i.e. leading Korean electronics companies including Heesung Electronics, Dongseo, Dong Yang Electronics, LG Innotek, and Lucky SMT.

The Kobierzyce investment in Kobierzyce led to the establishment of entities including LG Electronics, LG Display, LG Innotek and LG Chem.

LG Electronics INC - a global conglomerate boasting many years' tradition of operation in the telecommunications, household appliances and digital media goods sectors. On January 23rd 2006, two investment agreements were signed between Poland and the company, leading to development of two production facilities:

^ A household appliance production plant (washing machines and refrigerators): the investment outlay amounted to 62 million EUR, and 910 staff were employed, with the investment area of 26.48 ha.

^ An LCD TV production plant; the value of investment amounts to 42 million EUR, with 710 newly created workplaces and 18.26 ha of land developed

The LG Electronics Inc. company is one of the key global manufacturers offering innovative technologies in the area of consumer electronics, mobile devices and household appliances. The company emphasizes implementation of new technologies, world-class quality of products and low production costs. LG employs 87,000 staff at 113 branches worldwide. In 2012, it global sales volume reached 45.22 billion USD. LG Electronics's operation entails four main categories: Home Entertainment, Mobile Communications, Home Appliance and Air Conditioning & Energy Solutions. LG is one of the world's largest producers of flat TV's, mobile devices, air conditioning units, washing machines and refrigerators.

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Case Study^ LG

LG Display - the world's second largest manufacturer of LCD display units, employs almost 2,100 staff at its only European plant, loacted in Biskupice Podgórne. So far, the Korean company has invested over 700 million PLN in Poland. In 2006, LG Display, along with a few other production facilities supplying components for LCD TV's, created the so-called technological cluster. Over 9000 staff, mostly residents of Lower Silesia, found employment at the cluster's units. Modules produced by LG Display are supplied to companies including TV manufacturers (LG Electronics and Compal) operating in Poland, Hungary (Philips), and Turkey (Vestel). LG Display is a global innovation leader in the area of the LCD technology. Apart from the Polish facilities, LG Display has production plants in Korea and China, delivering every fifth LCD display produced worldwide. The conglomerate employs over 35,000 staff in its global branches.

LG Innotek Co. Ltd. - a leading Korean manufacturer of electronic components, developing its global distribution network. The company focuses of development of components and technologies most notably in areas such as the following: design of precision components, design of optical structure, software development, RF/power circuits, RF ASIC design, and high density surface mounting. The company plans to invest 57 million EUR in the development of its operations in the Wroclaw Agglomeration's area of 4.54 ha, and will employ about 1,000 workers.

LG Chem, Ltd. - a leading chemical company in Korea in terms of both size and performance. It employs approximately 1,300 staff, while its 2004 sales reached 7.1 billion USD. The company manufactures a wide range of products from petrochemical goods to high quality plastics, as well as industrial materials. The investment outlay in the Wroclaw Agglomeration will amount to 40.2 EUR and make it possible to create 800 new workplaces in the area of 9.1 ha.

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Case Sfudy^ Whirpool

2002

2004

2014

2014

Polar acquisation

Starting to build new factory in Wroclaw

European centre of dishwasher construction and development in Wroclaw

Indroducing the newest production line of refrigerators in the region of Europe, the Middle East and Africa - EMEA

Whirlpool Corporation is one of the biggest global manufacturers and suppliers of household appliances. It has production facilities across 13 countries, and its products, produced under 12 brands, reach customers in over 170 countries. Moreover, the company boasts annual sales of 18 billion USD and employs over 73 thousand staff globally.

Since it acquired the Polar production plant in March 2002, Whirlpool has been the biggest American investor operating in Wroclaw. On April 2nd 2004, the decision was made to locate in Poland a new kitchen production line along with a logistics centre, and to further develop the existing refrigeration and dishwasher manufacture, as well as to extend the technological centre of excellence operating at the Wroclaw facility. On September 24th, the cornerstone was laid at the construction site of the American conglomerate's new Wroclaw facility. The development of the production plant was part of a broader strategy oriented towards transforming the Wroclaw facility into a world class plant delivering highest quality goods. A further factor that weighed in favour of Wroclaw as the plant's location was the company's reinforcing its position in Poland and ensuring new possibilities of delivery of products to customers across European markets.

Slovakia had also competed for the investment, but the decision to locate it in Wroclaw was made by and large on account of the following factors:

^ availability of well educated staff,^ investment incentive package offered by the Polish government,^ Wroclaw authorities' support.

Whirlpool invested 100 million EUR in its Wroclaw plants. It is worth emphasizing that the concern is still developing its Wroclaw operation, which is a testament to the favourable conditions for investment in the city area. The conglomerate's latest investment was the development of a state-of-the-art production line of refrigerating units, the most modern one across Europe, Middle East and Africa (EMEA). The main goal of the over 45 million PEN investment was to streamline the production process. In addition, thanks to the modernisation of the production line, it was possible to transfer production from the Trento facility, closed a year before. The modernisation works of the Wroclaw refrigerator line were carried out for over half a year and finished in January 2014, while the technological start-up process took a few weeks. In March, the line began operating at full producing one door refrigerators and freezers of 1.4 to 2 m height.

Currently, there are three plants located in the Wroclaw's district of Zakrzów: supplying refrigerating devices, dishwashers and cookers, as well as manufacture support departments and the Centre of Product Research and Development being part of the GPO (Global Product Organization). Wroclaw Whirlpool plants continually invest in new technologies and product development. It is in the capital of Lower Silesia that the European centre of dishwasher construction and development was located. Today, the Wroclaw based Whirlpool production plant is the conglomerate's biggest facility in Europe and the only one manufacturing goods of this type. The dishwasher models produced in Wroclaw are sold to European, African and Asian markets. The key markets requiring this kind of goods are Scandinavia and Western Europe. In late 2014, the Wroclaw plant celebrated the manufacture of its 25 millionth unit. Whirlpool Polska employs a total of about 3,000 staff.In October 2014, Whirlpool acquired the majority stake in Indesit, thus becoming Europe's biggest manufacturer of household appliances.

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Author of the study:

within the framework of „Mozart" 2013/2014 - the Municipal Program of Support for the Partnership of Higher Education, conducted as Partnership:

Invest in WroclawCity of Perspectives

The Invest in Wroclaw team comprises professionals hailing from the Agency of Wroclaw Agglomeration Development and JP Weber. The experts, boasting extensive knowledge of the region, investment locations, conditions of investing and doing business in Poland, will effectively support investment projects and provide all necessary information.You are welcome to visit the portal www.invest-in-wroclaw.pl

JP Weber

For over 12 years, JP Weber has been supporting international investors in their Poland based investment-related operations and their day-to-day tax and accounts related, as well as legal dealings. We employ over 60 investment and tax advisers, as well as lawyers operating from our Wroclaw and Warsaw offices. We provide services to both large global conglomerates and SMB sector

. . . . . enterprises planning their business activity in Poland and we support Polishcompanies in looking for strategic investors and in their international expansion. We support decision-makers in transactions and day-to-day handling of their businesses, guaranteeing an individual client-oriented as well as comprehensive approach to the Polish market's business. You are welcome to visit our website www.jpweber.com

A P A g e n c j a R o z w o j u A g l o m e r a c j i W r o c ł a w s k i e j

When planning to start business operation in the area of the Wroclaw agglomeration, every company eligible to receive support from the Agency of Wroclaw Agglomeration Development, responsible for supporting foreign investment activity. Already since 2005, the Agency has been providing assistance to foreign investors in the area of planning and conducting comprehensive investment processes, also by ensuring post-investment care. The dedicated team of specialists supports investors at every stage, making sure that the whole investment process is carried through fast and effectively. You are welcome to visit www.araw.pl

QQQ

HRK is one of the largest human resources management consultancy organisations operating in Poland. We offer comprehensive services for investors in the area of human resources management by supporting them in their recruitment projects, as well as in potential research anddevelopment, career path building and employer branding. Under the brand of HRK Payroll Consulting, we deliver services with regard to payroll administration and personnel documentation management. As part of IRC Executive Search and Bernard Hodes Global Networks international networks of globally active employer branding experts, we deliver projects across the whole country and abroad. You are welcome to visit our website www.hrk.eu.

Jarosław Ignacy, Ph.D.Doctor of economic sciences, specialising in strategic management and lecturer at the Department of Strategic Management of Wroclaw's University of Economics. He has combined his academic activity with collaboration with business as an adviser and consultant for many years, having authored numerous strategies, studies and expert opinions for the needs of companies, institutions and local government units. Participant and expert member of many research projects in Poland and countries of the European Union, linked to various aspects of entrepreneurship, strategic management and New Public Management.

The following sources of information were used for the purposes of the study::

1) Statistical data and sector studies of the Central Statistical Office (GUS).2) Data, analyses and sector presentations of PAIilZ (Polish Information and Foreign Investment Agency).3) Analyses and forecasts of the Ministry of Economy.4) Publications of the Organisation of Economic Co-operation and Development and the World bank (Doing

Business).5) Statistical data and analyses of the household appliances market developed by the Polish Association of

Household Appliances Manufacturers (CECED Polska) - member of the European Association of Household Appliances Manufacturers.

6) Data provided by Wroclaw's Municipality.7) Information from the websites of Whirlpool and LG companies.8) Generally available press information (including Bankier, Forsal, Gazeta Prawna, Puls Biznesu, Gazeta.pl,

and Money.pl) with regard to the development of Whirlpool and LG companies.

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Invest in Wroclaw

Contact:

Agencja Rozwoju Aglomeracji Wrocławskiej SA pl. Solny 14 50-062 Wrocław

Tel. +48 71 78 35 310 Fax +48 7178 35 311 email: araw<ąaraw.pl

JP Weber sp. z o.o. ul. Rynek 39/40 50-102 Wrocław

Tel. +48 71 36 99 630 Fax +48 7136 99 639 email: info<ąjpweber.com

Wrocław Agglomeration Sector Analyses - Electronics Industry

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