Łódź Special Economic Zone

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Łódź Special Economic Zone ( ŁSEZ )

The region of Łódź is one of the most disadvantaged in Poland. Before political reformation which took place in ’90, Łódź was mainly an light industrial city. Textile and clothes produced here have been exported to USSR but later production was reduced. Next textile production plants were closed or privatised, workers were fired with no another job opportunity. Increasing unemployement and massive work emigration forced the authorities to seek for help.
The solution for this crisis situation appeared in creating an Special Economic Zone. Łódź SEZ was established in 1997 by the Decree of the Council of Ministers for a period of 20 years (until 2017). This is one of the most dynamically developing economic regions in Poland. Ideally located, with excellent transport network, it offers very attractive investment sites within the city of Łódź and in the region together with the possibility of taking advantage of tax abatements. The comprehensive investor service, honoured with ISO quality certificate, has attracted to Łódź SEZ many important business partners, including such renowned brands as: Procter & Gamble, Gillette, Bosch-Siemens, Indesit, Atlas, Ceramika Paradyż or Hutchinson.
The exceptional attractiveness of Łódź SEZ as a location for investments is proven, apart from the available tax allowances and privileges, by the following factors:
• central location of Łódż province,
• 3 million-strong consumer market,
• presence of numerous academic and research centres
• availability of highly-skilled personnel,
• low labour costs,
• well-developed technical infrastructure,
• long-standing industrial traditions of the province towns.
Until 2006 those corporations invested about 1,5 billions Euro, opened 67 factories, utilities and reaserch institutes. There are about 9,000 of new jobs. The numbers are still rising amazingly fast, due to greater professionalism of SEZ operational staff. The most important matter is that the share of foreign capital in all investements is less than 40%. Which means another 60% of income stays in Poland.
Such initiatives give a possibility of work for almost 100,000 students. Most of them are educated in management, economics and administration, but there are also many of engineers or IT experts.
Of course whole province benefits from business of Special Economic Zone. Many hotels and restaurants are under construction, many supporting companies have been established and unemployment percentage is getting low.
More of foreign corporations are interested in setting up their branches in Łódź. In 10 years tax abatements will finish and the cities budget income will incredibly increase. Then will come the time of a second prosperity of Łódź.

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