Vehicle maker’s business case for Polish FDI project explained
Vehicle maker Mercedes-Benz has established a major manufacturing facility in Poland’s Lower Siliesia region. Real Asset Insight’s Richard Betts asked the company’s corporate communications and external affairs director Dr Ewa Tabno-Falecka to explain the decision.
“Poland is a very interesting and attractive location for direct investment,” she said. Mercedes selected Poland in 2016 after comparing eight other countries and 35 possible locations. “Our choice was Jawor, which is a small city in Lower Silesia. The shape of the land was excellent, the infrastructure, the road connections, everything was okay.”
Having invested €1billion in that facility, the company has no regrets, she said.
“We had great support from decision makers. Policy makers are supporting us and we had a good experience, including with the Ministry of Finance. The support of the local authority and decision makers is crucial if you have such a huge investment,” she said.
Seven years later the company decided to invest a further €1.3 billion, “based on the good experience and excellent circumstances,” said Tabno-Falecka.
This factory is a future oriented smart factory that is also CO2 neutral.
“What is interesting for us is the business climate is very good, the location is very good, the road infrastructure is improving but, especially, there are skilled people, hungry for success.”
She added that this has not always been the group’s experience elsewhere in the world.
Poland’s skilled employees combine digital skills, technical skills and social skills. “All together, the human potential of Poland is number one for us.”
But Tabno-Falecka emphasised, there are a number of factors that are attractive for investors, notably that Poland is safe and stable because it is a member of NATO, a member of the EU, and is an industrialised country that is diversified and resilient.
She added that the country has experienced positive economic growth for the last 30 years despite crises including the GFC, Corona pandemic and now the war in Ukraine.
“The Polish economy seems to be more resilient than the average in Europe,” she said. “The GDP of Poland tripled in the last 30 years which means that economic growth is much faster than, for example, Western Europe.”
Other German companies have followed Mercedes’ example now, including Bosch and Viessmann. “Germany is very crucial for Poland, it’s our biggest partner and Poland is the the fifth biggest trade partner for Germany,” Tabno-Falecka added.
