Polish Automotive Suppliers Associated in PGM

Launch Polish Automotive Production Hub

24 November 2020 Posted in News

The current social and economic situation caused, among others, by the COVID-19 pandemic inspired the Association of the Polish Automotive Group (PGM — Polska Grupa Motoryzacyjna) to launch a project dubbed the Polish Automotive Production Hub (PAPH). It is an offer addressed to companies (not only automotive companies), interested in moving their production to Central and Eastern Europe.

The Polish Automotive Group, which works for the benefit of development of the Polish automotive industry, has been observing the changes that have recently taken place on the automotive market in Poland and worldwide. In order to meet the challenges, within the framework of its activities and using its competences, the organization launched the ‘Polish Automotive Production Hub’ project (PAPH in short), aimed at technological and production support for new investments in Poland. This is a response to market demand as a result of the situation caused, among others, by the COVID-19 pandemic. The support will be multi-level and flexible, depending on the investor’s needs. High competence of companies operating on the Polish market, educated staff and modern production facilities, as well as available instruments to support investors are the guarantee of good business in Poland.

The role of the PGM is to combine businesses, associate entrepreneurs and capital, seek and use synergies with the potential for development of components or finished products — says Barbara Sztyler, member of the Management Board of the PGM and CEO of Sierosławski Group from Mielec, Poland. The existing factories in Poland, together with their production potential, create favourable conditions for foreign investors to consider the possibility of not building new plants from scratch, but moving production here. My company is already participating in a project where a global client moves its line with the entire technology.

Polish companies are very modern, well invested in capital expenditure and, at the same time, very open to cooperation with foreign partners, who not only can commission them to produce or use their research centres, but above all can provide new technologies. And from the perspective of the Polish industry, it is the technology transfer that seems to be the greatest benefit of such cooperation — remarks Bartosz Mielecki, Managing Director of the PGM. It is also a great opportunity to use the enormous potential that is in Polish engineers.

The operation formula of the PGM as a cluster of the Polish automotive industry also creates many opportunities to carry out joint R&D projects. European and national funds available in Poland often encourage international partnerships. Therefore, within the frames of the PAPH, such actions will also be conducted. Foreign partners cooperating with the PGM will have access to information about research centres available in companies associated in the cluster and to their resources.

We are able to provide assistance in the management of R&D projects that may arise both at existing and new production plants, we are also open to seeking partners for such projects — says Bogdan Kępka, R&D Project Manager at the PGM, who has been dealing with the subject of cluster activity in Poland since 2003 and who will be developing the R&D Project Centre within the PAPH.

The structure of the PAPH is based on several task centres, which will handle particular aspects of investor service. For location of a new automotive factory in Poland is a challenge that requires strong investment support, the PAPH will operate an Investment Service Centre that can help in finding a favourable location for a new investment, prepare a feasibility study or a concept for such an investment and ensure cooperation with national and local governmental institutions. The PGM will also provide investors with information on the legal and tax environment necessary to prepare and implement investments in Poland. This will be handled by the PAPH Legal Service Centre, which offers professional legal advice — both at the stage of investment implementation and during further business operations. In turn, the Knowledge Exchange and Cooperation Centre will provide support in building relations with key stakeholders on the Polish market, including such aspects as assistance in establishing cooperation with Polish public institutions and creating strategic alliances with business entities.

The Polish Automotive Production Hub is only one of many projects conducted by the Association of the Polish Automotive Group. The organization aims at creating conditions conducive to the development of Polish automotive manufacturers and the automotive industry in Poland. The Association of the PGM is a cluster coordinator of the same name and since 2019 it has had the status of National Key Cluster, awarded by the Ministry of Development only to those cluster organisations that have a key impact on the Polish economy.

More information about the PAPH project is available in the website: www.pgm.org.pl/en/paph

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