Mr Mirosław Milewski, Mayor of Mirosław Milewski.
By: editor
Ceoworld.biz
The following Interview is brought to you by ceoworld.biz.
ceoworld.biz: Could you tell us what is your strategy aiming at encouraging investors to invest in Poland?
Mr Mirosław Milewski: As a city we are open to different kinds of investment or tourist proposals, as well as other social projects, both national and foreign. We do not try to organise workplaces as such, not companies, but we create conditions, in accordance with the international standards, that would contribute to the proper investment on private and national level. In order to achieve it we use natural possibilities, such as our location in the heart of Poland. We also try to use the surroundings; for instance, the potential of the biggñpest company in Poland and in this part of Europe – PKN ORLEN. We use all possible means existing on the market concerning promotion; for example, participation in international fair. We are working on a city promotion strategy, in which one of the most important elements is the strategy of economic promotion. In December, we will have this document finished, and during the next years this issue will be tackled even more professionally.
ceoworld.biz: Which of the markets do you consider to be a target in the economic promotion?
Mr Mirosław Milewski: This is a very difficult question. I would say in a paradoxical way that I invite all the banks to Płock. Here they can be sure that they will not face any economic and financial problems. Coming back to the essence of the matter, it is hard to point out the business one prefers. Natural elements typical for Płock are chemical and petrochemical businesses and all the related ones, within cooperation of partners in different formulas and organizations. Taking this into consideration, we have created a part of our basic investment field – The Industrial and Technological Park of Płock. What is more, the receptiveness comes from the conception of the city not narrowed to one particular business but an universal one, which develops in different fields and in different directions. Hence, it is hard to outline businesses which should be particularly preferred. I would not dare to point out such a business. All the developmental elements are combined in such a way that there is a place for everybody.
ceoworld.biz: How would you estimate the demographic potential of Płock? You have mentioned the location, but an investor would also like to count on a group of qualified people, a workforce.
Mr Mirosław Milewski: Płock has a population of 127 thousand people. Within our reach we also have the county of Płock that is all the surrounding boroughs. The territory of this county is inhabited by 100 thousand people. This is potential personnel, educated in a highly developed schooling system on the medium and high level. We have several universities. The vast majority of people on the job market come from our branch of the Warsaw University of Technology – The School of Engineering and Social Sciences. This University educates its personnel not only at technical faculties but also at economic ones. Besides, it intends to develop in many other directions – we still cooperate witch each other in order to achieve this goal. Engineers from the Warsaw University of Technology are respected not only in Płock, but also, they emigrate to other cities which I discourage, where they find a very good job. What is even more, we have the National Vocational College which have been functioning for many years. Until recently, it educated people on the high professional level, but today it is possible to continue one’s education on the master level. Since a dozen or so years the Paweł Włodkowic University College has been functioning in Płock. It is one of the best qualified universities in rankings of Polish private schools. In our city there is also the Warsaw University, which offers education on the high master level, after bachelor studies, as well as postgraduate studies. Our plans concern two additional undertakings: Nursery and Medical Studies College which will probably start functioning next year. Moreover, the abovementioned Warsaw University will begin its full- time studies on the diploma level.
ceoworld.biz: So there are many possibilities…
Mr Mirosław Milewski: This set of proposals is not such as that offered by larger academic centres, like Warsaw, Gdańsk or Poznań. Nevertheless, as for a much smaller city, our possibilities are satisfying. One can count on professionals in technical trade and in questions such as company management and finances. As far as workers of pre- and postproduction categories are concerned, we do not deviate from the national average. The unemployment rate in Płock, during my term of office, have decreased from 21% to 11,5%. It still constitutes too high percentage. However, it is worth noticing that except from the people looking for a job, we have a lot of dwellers who would like to replace their present jobs with more attractive ones. Consequently, our developmental potential is quite high.
I would like to mention one more issue. Płock is surrounded from all sides by territories covered with forests and lakes. These grounds are inhabited by those dwellers that are getting rich. These people formally are not Płock’s inhabitants, but they do work in our city and power our job market, as possibilities here are abundant. I am of the opinion that, in this matter, our investors have nothing to complain about.
ceoworld.biz: Mr Mayor, what are the investment incentives offered by Płock for its investors?
Mr Mirosław Milewski: There are three types of packages. The first one includes an attractive investment location, which is highly important for investors, , especially when a city is located in the central part of Poland, close to a big agglomeration ; witch convenient access roads and good infrastructure. We can say that we fulfil all these criteria. We are situated within one hour distance from the capital of Poland and the international airport. The situation will be improved when another international airport is established at a distance of approximately 60 kilometres. Generally speaking, we are well communicated with different strategic locations. Nonetheless, future prospects are much better since within maximally three years a communication network linking Płock with national roads will be finished. A part of work has already been carried out. Two ring roads, currently being designing, are still to be built. The prospect of completion of this work is estimated to be two or three years.
Besides, we have some investment grounds. The biggest, the most reputable and universal one is the Płock Industrial and Technological Park – an area of approximately 200 hectares meant for investment. Its territory has a full infrastructure connected with neighbouring parcels. It is also included in the plan of spatial development, which shortens the investment process to a large extent. In the vicinity of this Park, there are other industrial, storage and service grounds. This adds about 15o additional hectares. These grounds are communicated with one of future ring roads of Płock. Moreover, we are in the process of preparing another investment ground of about 90 hectares.
ceoworld.biz: It means that the works can begin.
Mr Mirosław Milewski: Many companies have already decided to invest in the Płock Industrial and Technological Park . Some of them have begun their activity, the other ones will do it next year. As far as the remaining two investment grounds are concerned, as a city we offer a possibility of communication networks with the media included. That is what an investor should not worry about. Besides, there are many smaller investments, both private and public. We possess investment grounds designed for different kinds of enterprises. Currently, there are four commercial galleries being built in Plock. From the Warsaw’s perspective this kind of enterprises do not make a great impression, but it seems crucial when related to Płock with its 130 thousand inhabitants. It proves, for instance, that investors can notice a great potential both in our city with its surroundings and in its inhabitants who are in the leading group when we talk about the average salary in Poland.
The second package contains special facilities concerning the process of investment. According to the City Council’s resolutions, we offer exemptions from property taxes, proportional to the invested resources and people employed. The other component of the package concerns exemptions for innovative enterprises.
ceoworld.biz: With IT included within this package?
Mr Mirosław Milewski: Yes. There is an initiative in the Industrial and Technological Park that is related to this question “we will realize common projects together with the Warsaw University of Technology. That is why there should be a completion in the form of exemptions. In this particular case, we consider a possibility of granting the exemption from taxes imposed by local government, so that companies can function and develop new ideas.
The third package is composed by non – standard elements offered to employer and investors that is a maximal acceleration of administrative procedures or cooperation with universities. Since 1th January the Municipal Employment Office has been functioning and helping investors in the process of recruitment of workers of the technical and administrative personnel. Some galleries which are now under construction can be a good example here. They want to employ approximately 1,5 thousand people, especially women. That is why a proper recruitment and training procedure has to be initiated. The Municipal Employment Office offers its help. There are some additional elements as a result of our talks with entrepreneurs. They announce some problems which they are dealing with on a daily basis, and we try to help in order to solve them. “
ceoworld.biz: This is very logical, because these companies know exactly what they need, what are the problems on the market. Mr President, you have mentioned PKN Orlen as one of the biggest companies, but could you give us some other examples of investors who successfully developed their businesses in Płock?
Mr Mirosław Milewski: Yes, of course. In Płock, the investment process, as far as foreign companies are concerned, includes three segments. The first one is what the city offers within the investment range. Local Council and partly Voivodship Council do invest in Płock. The second segment means what is offered in our market by those entities which has already settled in Płock (Oren’s investments in recent years are really impressive), which should also be taken into account as it generates new workplaces. Besides, there are external companies interested in our city.
Maybe I should summarise briefly the history and give some examples. The first company to enter the successful cooperation was Levi Strauss Poland which started functioning in 1991 employing 300-400 people. Today this is a huge crew made up of over 1100 people. In short, Levi Strauss Poland has settled in Płock and keeps developing gradually.
Another company worth noticing is CNH Poland, the former New Holland – a Polish investor which took over our former factory of harvest machines and now develops dynamically (last year the company employed 100 new workers). One of the recent investments in Płock is a huge Polish – Dutch enterprise Basell Orlen Polyolefins – a classic example of cooperation with PKN Orlen concerning sequential forms of processing polypropylene and polyethylene. This company settled in Płock in 2003 and currently employs several hundred people.
One more company is Schulman Poland, English – American capital, also within the range of processing Orlen and Basell Orlen’s product (concentrates colouring different materials and processing them).
There are many smaller companies as well. Dr Oetker keeps developing very well which is visible in increasing employment. Is has even been granted an exemption for employing over 50 people in 2006. Thanks to these examples, we can say that Płock is a city of prosperous businesses. Our cooperation is especially successful with Basell Orlen or Levi Strauss. They eagerly participate in abundant social initiatives.
ceoworld.biz: Mr Mayor, I can see that chemical industry is particularly developed here, with an abovementioned main investor. Nevertheless, it is time to diversify investments coming to Płock. According to what I have read on your web page, one of the most important investments that caught our attention was a tourist development of the Vistula river embankment. This is one of the projects. Could you briefly present it to us?
Mr Mirosław Milewski: Płock is not a tourist destination such as Zakopane, but it turns out that because of our location in the heart of Poland and the vicinity of Warsaw and Łódź agglomerations, it is possible to develop so called week-end tourism.
ceoworld.biz: Mr Mayor, Or ecological tourism…
Mr Mirosław Milewski: Yes, especially near the green grounds and picturesque lakes. There are many attempts to achieve it. What we call a project of development of the Vistula’s embankment, it is related to a relatively narrow territory, from the coast of Vistula to the highest Polish slope of more than 50 meters. However, it is a very long territory of several kilometers. It begins with the Sobótka Lake, partly preserved in order to protect its valuable flora. One can spend some time on the beach or swim. What is more, some rowing and sailing competitions are organized there. By this reservoir we would like to create a very professional infrastructure, together with accompanying services, that includes few buildings, open air café, restaurant and other facilities. All that will contribute to the future development of this territory. A special place is also designated for an Aqua Park. It would be either a totally private investment or in form of a private-public partnership. Preparatory works are already in progress and I am of the opinion that it is one of the smaller investment offers directed to private partners. Going a bit further, we have to equip this territory of several kilometers with the additional infrastructure. This is one of the most expensive elements of the whole project. We want the concerts, nationally and internationally recognized, to still take place on Vistula beach, bearing in mind the week-end tourism.
In the centre of the city, on the basis of the existing sailing club, we will build a professional marina, with a possibility of mooring over 300 sailing boats, as well as a central pier of a few dozen of meters. This pier will mark the borders of the mooring territory, so it will be multifunctional. Along the embankment there will also be a place for gastronomical services. Besides, there will be a possibility of mooring several tourist ships. In Płock, we have one of the oldest rowing clubs – The Polish Rowing Association, functioning in a rather neglected building in the embankment. This year, we begin an investment consisting in renovation and adjustment of a part of the object to the requirements of sport and education of children and teenagers, as well as adapting it to a building open for everyone (with cafes, possibilities of spending free time, a hostel). We are expanding our Zoological Garden, one of the best in Poland. Professionals are of the opinion that this ZOO is among the best in Europe. After the expansion – developing four hectares acquired several years ago – there would be also a possibility of entering the ZOO from the Vistula river side (as a second entrance), so that the embankment would appeal to investors and tourists. This is one of the city development components and one of the best tourist attractions for our visitors and dwellers.
ceoworld.biz: My last question: why should our investors choose Płock, especially in the central part of Europe, where Bulgaria, Romania and other countries create a growing competition? Why Poland and why Płock?
Mr Mirosław Milewski: Why Poland? Poland has been considered for many years as a very stable and dynamically developing country, in comparison to other countries trying to catch up with the potential of investment possibilities and living standards, at least the medium European countries.
ceoworld.biz: Spain for example.
Mr Mirosław Milewski: Yes. Like Spain which has shown how to develop quickly and successfully make use of the funds from the European Union. Hence, Spain is an example to follow. Besides, Poland is a country gaining from sympathy in Europe and with a rich historic tradition. Our country is situated in the central part of Europe, so many other countries are located within a relatively small distance – the “old” part of the European Union, its new members and those counties which a dozen or so years ago were influenced by the East. That is why our location constitutes a crucial advantage. In relation to this location, Płock is a city situated in the central part of Poland (near Warsaw and the international airport).
I should have mentioned a bridge, the longest one in Europe, with permanent illumination. This illumination in our city colours makes an impressive effect.
Płock meets with success in different rankings. For me, two of them are most important. Firstly, the ranking of fastest developing cities , as far as investment is concerned. In this ranking we have occupied for years the first place among magistrate district cities . Secondly, the ranking of financial credibility (of utmost importance for inacvestors), in which on the national level we occupy the first place, and on international one (very important when considering investment possibilities) – the third place among Polish cities. We have been evaluated one point less than the maximal rating. All in all, our financial credibility, investment potential, and openness of the local council toward new investors – these are the advantages of Płock underlying that this is a very good investment destination, where, except potential mistakes in a business plan, defeats should not be expected. One can only achieve success.
Thank you very much for the interview.
