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Notes from Poland is run by a small editorial team and is published by an independent, non-profit foundation that is funded through donations from our readers. We cannot do what we do without your support.

Chinese fast fashion platform Shein has announced a €500 million (2.2 billion zloty) investment to expand its logistics centre in Poland, a move it says will create around 2,000 new jobs by the end of this year.

The announcement comes amid growing controversy over the impact of Chinese e-commerce platforms on European businesses and follows a recent decision by the European Union to introduce a special fee on low-value parcels sent from outside the EU and European Free Trade Area.

The investment will expand Shein’s existing logistics facility in Magnice, near the city of Wrocław in southwestern Poland, which has been operating since 2022.

The expansion will bring total employment at the site to around 10,000 by creating 2,000 jobs in logistics, supply chain management, technology and warehouse operations, according to local news service Wroclaw.pl. The facility will also host 6,500 autonomous robots for sorting items.

Shein says that the move will help it cut delivery times in Europe, allowing some orders to arrive within 48 hours.

“This investment in Poland clearly demonstrates our commitment and belief in the potential of the European market,” said Leonard Lin, the firm’s global head of public affairs.

“Poland has become one of the pillars of our operations in Europe,” he added. “This latest investment is a testament to our confidence in the country’s potential, the competencies of its workforce, and its business environment.”

 

The expansion comes as Shein faces a tougher trading environment in Europe. Its sales in the region fell by 13.9% year-on-year to $3.77 billion in the second quarter, while net profit dropped by 67%.

The decline comes as the EU steps up efforts to curb the influx of low-cost imports from Chinese platforms such as Shein, Temu and AliExpress, which European retailers say pose unfair competition.

In July, the bloc introduced a €3 fee on parcels worth less than €150. From 1 November, a further €2 handling fee was added to all imported parcels, regardless of their value, to cover customs processing costs.

Shein has also faced accusations of labour-law violations at its facilities in China, including concerns that it may use cotton produced through forced labour.

The company disputes many of the allegations, saying that it prohibits forced and child labour and regularly inspects working conditions at its suppliers.

China is an increasingly important trading partner in Poland. In July, it overtook Germany to become Poland’s largest source of imports for the first time, driven by rising purchases of cars, computer hardware and consumer goods.


Notes from Poland is run by a small editorial team and published by an independent, non-profit foundation that is funded through donations from our readers. We cannot do what we do without your support.

Main image credit: Dick Thomas Johnson / Flickr (under CC BY 2.0)

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