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Electronics Production | January 29, 2007

Flextronics plans to invest in<br>Poland, but requires incentives

Flextronics plans to spend 3.8 million Euros to develop their Polish operation but complains on that the Polish government only cares for new investors.
The company already employs 3000 people in Pomorze Special Economic Zone. “We consider further projects which would increase employment by 800-1500 people. The third plant is planned to be located in Tczew where we have our other facilities", Flextronics Poland's Investment Director Zbigniew Kozicki told local media.

However there are a few problems. In the first investment project, the Pomorze Special Economic Zone (PSSE) provided energy access for the investor. “Now we need more energy but PSSE is not providing it any longer. They outsourced their operations to another company. The new company will provide energy to us but we must pay. According to the agreement with PSSE, we should receive this service without payment", Zbigniew Kozicki continued.

Wlodzimierz Ziolkowski, PSSE CEO replied saying “All they have to pay are regular fees provided in the energy law. We asked Flextronics to officially state what they need. We once invested in infrastructure for this company but they withdrew from the project."

Flextronics also said that due to the rules concerning public subsidies, they may get about 20 million US dollar of subsidies although they invested over 100 million US dollar and were promised the whole amount at first, local media reports.

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