The Lodz region, What You Should Know About The Lodz Region

What You Should Know About the Lodz Region

Published before the year 2000

by Wojciech Dabiñski
Deloitte & Touche

Lodz is the both capital city of the Lodz Voivodship and the main city of the whole industrial region. It is the second largest city in Poland after Warsaw, with over 850,000 inhabitants.
     Lodz is located near the geographical center of Poland. Its location has always played a significant role in the life of the city. It is one of the reasons for the dynamic economic development of the whole region, which lies a t the junction of the main national roads, has extensive rail connections and will sit astride future international highways and European routes leading through Poland from West to East and South to North.
     Industry plays a key role in the regional economy. In 1994 manufacturing activities generated over 78 percent of the total revenue.
     Light industry has dominated business since the second half of the l9th century and remains the major branch in the economy of the region. It accounts for 37 percent of all production revenue and 57 percent of the employment. The services offered by Lodz factories are cheaper than in Western Europe, making the Polish labour force attractive to EU and other western firms.
     Recent years have seen a steady growth in the food production sector, with nearly 27 percent of the total revenue, making it the second largest branch after the light industry.
     The chemical industry is also very well developed. Many enterprises produce various chemical products from rubber and synthetic fibres through dyes and cosmetics to pharmaceutical products.
     The electrical engineering industry is the most rapidly developing sector in Lodz. Companies produce various kinds of machines, electric and electronic equipment as well as consumer goods.
     Lodz is also the capital of the Polish film industry and is called the "Polish Hollywood". Professional staff and technical film manufacturing facilities are available to local and foreign producers.
     Lodz is entering a new period of prosperity at the turn of the 20th century.
     The Highway Construction Program approved by the Polish Government in 1994 foresees several international routes intersecting in the Lodz area. Over 100 km of motorways will be constructed at a cost of more than US$ 300 milli on. The major motorways will be: A1 Gdañsk-Cieszyn connecting the Scandinavian countries with Southern Europe and the Middle East, A2 Swiecko-Terespol leading from Paris to Moscow and A8 from Prague to Helsinki through the Via Baltica road network.
     Currently Lodz has favorable domestic and international railway connections with large Polish and European cities. Lodz has the biggest and most modern Polish container train station for railway cargo transport with the capac ity of servicing more than 2,000 container cars per day.
     Parallel to the A2 motorway, a fast traffic line of TGV railway will be constructed leading from London through Paris, Berlin, Warsaw to Moscow. It plans to serve 5 million passengers a year.
     Only six kilometers from the city center is the Lodz-Lublinek airport. It can take international and domestic passenger aircraft. Its technical facilities allow for the operation of medium size aircraft even under difficult weather conditions, any time of year. There are plans to transform a big military airport in Lask, located only 30 kilometers from Lodz, into a specialized cargo and passenger airport as well as an emergency landing site in the center of Poland for other Polish airports.
     Lodz is one of the major scientific and research centers in the country and has seven state universities. The only Polish Language College for Foreigners operates in Lodz. It offers language courses to foreign students and pr epares them to study at various universities throughout the country.
     Three thousand scientific staff working at 30 research institutions conduct research work and studies in many fields related to light industry, food processing, medicine, transport, electrical engineering and energy. The Lodz branch of the Polish Academy of Sciences is engaged in numerous research projects in chemistry and microbiology and is highly regarded by the international scientific community.
     There are 21 specialized clinics and hospitals. The Center of Polish Mother's Health - one of the most modern Polish hospital complexes of pediatrics, obstetrics and gynecology, offers its services to women from all of Poland .
     Today, Lodz is also an acclaimed international center of culture and art with nearly 60 artistic institutions,12 theatres,10 museums and many venues of cultural promotion. Annually over 40 exhibitions, numerous concerts and m usicals and many events of different character are held in Lodz. The graduates of three art universities influence not only the cultural life of the city but also the country and sometimes are famous throughout the world. The Lodz Film Academy is legendar y, unique in Poland and one of a few in the world. Among its graduates were such directors as: Roman Polañski, Krzysztof Kieslowski, Andrzej Wajda and Zbigniew Rybczyñski.
     In recent years the commercial function of Lodz has been strengthened by international fairs and exhibitions and extensive investment in this area. Since 1995, fairs have been held in the most modern exhibition center in Pola nd - EXPO, providing excellent exhibition conditions on 5,000 square meters. Twenty five international fairs and exhibitions were organized in 1995 and 30 events are planned for this year. Today the International Fair of Garments, Fabrics, Knitwear and Le ather Products is the most prestigious event in Lodz.
     In the center of Lodz there are several historic factory buildings and palaces which are an architectural phenomenon on an European-wide scale. A project is under consideration to adapt the postfactory premises into trade and cultural centers and in this way to significantly expand the trade fair and exhibition grounds.
     The political and economic changes in 1989 restored the natural business character to the city as a trade centre. During 1989 -1996 almost all small enterprises in Lodz were privatized. More then 30,000 people are employed in trade, working in over 500 shops, 400 wholesale firms and 50 big trade centers. One of the biggest wholesale center in Poland is PTAK. The center is open seven days a week. It is planned to expand the halls to 26,000 square metres. At present there are a bout 100,000 private companies operating in different kinds of business. Four hundred fifteen joint-venture companies have been established in Lodz.
     During the transition period since 1989, the Polish banking system has been going through deep transformations. Many private banks were established. Five regional banks have their headquarters in Lodz.
     Until now foreign companies have invested US$ 138 million in Lodz and they plan to invest another US$ 130 million in the near future.
     Foreigners who want to invest capital in Lodz can count on preferential treatment from the local authorities. New foreign companies entering the Lodz market can get discounts of 50 percent on real estate taxes for economic ac tivities. Companies providing new jobs are allowed a 50 percent deductible cost rate.
     New perspectives of economic growth of Lodz fully justify the marketing slogan "The promised land once again".