Global Briefing: Jul. 29, 2002

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The surprising success of Poland's Gdynia Shipyard Group was featured in the July 16, 2001, issue of TIME Global Business. The group, which owned the yard where Lech Walesa led his worker's revolt, had shed its communist legacy to adopt market-economy practices such as product specialization and round-the-clock shifts. Now scandal at a competing shipyard may threaten Gdynia's success. The Stocznia Szczecinska shipyard, Poland's second largest shipbuilder, was forced in June to declare bankruptcy. Six of the company's former executives were arrested and charged with criminal mismanagement and fraud that led to $16 million in lost revenue. The yard's 6,000 former workers have been protesting daily, demanding that the government get them their lost wages. The scandal has exposed many of the country's banks and made them nervous about new investments. Gdynia is accused of no wrongdoing, but the Pekao bank in early July withheld a loan from the yard, threatening its ability to compete for new contracts. Gdynia has said it may have to lay off workers.

House Dressing on That Kelp?

Not long ago most Americans thought of seaweed in the same way they did, say, pond scum. But U.S. consumers are munching more nori with their sushi. And they are also eating salads and soups with seaweed--imported and domestic. More than 950 tons of seaweed such as hijiki and nori were imported from Japan last year, up from 554 tons in 2000. Larch Hanson, proprietor of Maine Seaweed Co., has seen orders triple in two years. "Seaweed is healthy, and people are more health conscious," says Bill Morrison, owner of Seaweed Cafe in Southwest Harbor, Maine. Other companies, trying to expand the market for the plants, are peddling them as "sea vegetables."

A Sporting Stock Tip

If you own stock in a company that puts its name on a sports stadium, it might be time to think about selling. Fans of the Houston Astros flocked to Enron Field, and Tennessee Titans ticket holders went to Adelphia Coliseum for their home games--until earlier this year, when both troubled companies were unable to pay the millions of dollars required to keep their logos in lights. Dean Bonham, a sports-marketing expert in Denver who helps companies buy naming rights, says there are more than 60 multiyear naming deals in the U.S., worth a total of about $3.5 billion. Five of the arenas with such deals have lost or switched sponsors this year alone, and the trend shows no sign of stopping. The MCI Center, home of the Washington Wizards, may be looking for a new name soon if MCI's parent, WorldCom, declares bankruptcy or looks to cut its costs. The news isn't all bad, however. Firms such as Staples (Los Angeles) and HSBC (Buffalo, N.Y.) are doing well with their names on scoreboards. --By David Robinson