Swedish Ericsson decided to transfer a significant part of the production of devices for the 5G network to Poland. The scale of investment in Poland is PLN 5 billion.
PLN 5 bn of investments in Poland
Prime Minister Mateusz Morawiecki flew to Stockholm on 29 August, where he met with Arn Bansal, vice-president of Ericsson, responsible for Europe and Latin America. The visit was connected with Ericsson’s decision to start production of 5G devices in Poland. The Swedes’ plan was imposed by the geopolitical situation, in particular the tensions between Washington and Beijing, which are also reflected in other countries politically and economically connected with the USA.
Ericsson is currently competing primarily with Huawei. The position of the Chinese manufacturer in terms of 5G solutions is significant on the Polish market.
Ericsson will produce mobile technology solutions in Tczew. The plant in Poland is to fully serve the European market. The production started in Q2 2019 and the production of radio transmission equipment in Q3 2019. Ericsson plans to launch full production capacity in the first quarter of 2020. In combination with existing R&D centers, Ericsson estimates the value of investments and production in Poland at PLN 5 billion annually. Huawei also recently pointed to an increase in investment in Poland: https://ictmarketexperts.com/en/news/huawei-plans-to-invest-pln-3-billion-in-poland/
Poland as a pioneer of 5G solutions
“While Polish mobile operators and Ericsson are ready to accelerate 5G in Poland, we are working on a number of 5G projects in Poland, leveraging the knowledge gained from 5G commercial deployments on four continents. We are expanding our presence in Poland as we accelerate 5G in Europe. Mobile operators can now have networks developed by Polish software experts and produced in Poland. 5G for Poland can be produced by Polish engineers, both to develop the Polish economy and to inspire confidence in the European supply chain. I am very excited to see what opportunities are opening up for us in connection with new investments in Poland. – said the head of the region for Europe and Latin America, Arun Bansal, quoted in the communication.
5G auction in Poland in 2020
Ericsson employs over 35,000 people in Europe. In Poland, Ericsson’s headquarters are located in Warsaw, while in Kraków and Łódź, the company operates research and development centres, where it employs 2000 radio technology software engineers who contribute to the Ericsson Radio System technology worldwide. This makes Poland one of the largest research and development centres in the field of radio technologies, which is second only to Sweden.
Ericsson’s new investments coincide with Poland’s preparations for the first frequency auction for the 5G network. Distribution of the 3.4-3.8 GHz band will take place next year.