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Polish PVC profile maker Salag investing nearly $5 million in expansion

By: By Jaroslaw Adamowski
EUROPEAN PLASTICS NEWS

May 19, 2014

Polish PVC and wood profile manufacturer Salag has announced plans to expand its production facility in Suwałki, in northeastern Poland. The project is located in the Suwalska special economic zone (SSEZ), reported local business daily Puls Biznesu.

Under the plan, Salag will invest 15 million zloty ($4.9 million) and hire 230 new employees at the Polish factory. The company launched production in Suwałki in 2000, and the facility supplies its output to various players from the construction industry.

Salag will expand the production space at Suwałki and launch an additional laboratory at the facility to develop new products.

“We conditioned making any further investments at Suwałki on the government's decision in regard to extending the functioning of the special economic zones. We are happy that such a decision was made, because the [economic zones] generate considerable profits for companies,” said Radosław Mroczkowski, the company's chief executive.

In July 2013, the Polish government decided to extend the operations of the country’s special economic zones until 2026, which is six years more than previously agreed. Locating manufacturing facilities in the zones provides investors with preferential tax treatment.