BizPoland Magazine - April 2013

April 2013

vol. 5 no. 3(34)

Poland’s massive Military build-up

Real Estate:

FDI News:

Events:

MIPIM dazzles again

Poland unsure about its energy mix

European Executive Forum

Winners awarded in 17 categories – Poland Outsourcing and Shared Services Awards Gala

At the Awards Gala on 7 February in Warsaw at the Hotel Intercontinental, 17 companies, cities and individuals were distinguished for their exceptional performance. More than 240 guests – including 8 Mayors and Vice-Mayors – attended the Awards Gala and Forum, which singled out Winners from 125 nominations. In a tough competition among world-class firms, the following firms took first place:

Best Employer of the Year – Shared Services

Best Shared Services firm of the year

Credit Suisse

Lifetime Achievement Award

Best Recruitment Firm of the Year

Romek Lubaczewski, PwC

Final Winners:

Green Towers

State Street Services (Poland)

Hays Poland Business Centre Manager of the Year

Scott Newman - State Street Services Best Professional Advisory Services Firm

PwC Best new office development for Business Services

Top CSR initiative of the Year

Top Developer of the Decade

Poza Horyzonty (UBS, Luxoft, Radisson Blu, Miasto Krakow)

Skanska Property Poland

Best University-Business cooperation

Katowice

Say YES! – ASPIRE

Best City of the Year

Top Public Sector Outsourcing initiative

TriCity

“New Government Administration” ARAW/Ministry of Administration

Krakow

Best Employer of the Year – BPO/ Outsourcing

Playsoft

Alexander Mann Solutions

Alexander Mann Solutions

Newcomer City of the year

Best-Performing City of the Decade Most unique services provider Best BPO firm of the year

The inaugural event, MC’ed by Thom Barnhardt of BiznesPolska and Ewa Kotlewska of Onet, attracted lots of international guests, including from the United States, the United Kingdom, Germany, Canada, Holland, France, Finland, India, Sweden, Norway, Switzerland, Austria and Lithuania.

Firms attending included Accenture, Wipro, HP, Genpact, Dalkia, Luxoft, Tata, CapGemini, Hays, HedgePole, Devonshire, ASPIRE, Domanski, BNP Paribas, ABSL, PS-BPO, Mellon, MAN Accounting Centre, Randstad, Ipopema Business Consulting, Jones Lang Lasalle, World BPO, Itella, Boston Consulting Group, State Street, Credit Suisse, Skanska, PAIZ, Philips, Transparent, UBS, Tieto, EXL, Alexander Mann, Professional Outsourcing UK, Grant Thornton, Connectis, Swede Center, TPA Horwath, Citibank, Echo Investment, and many more.

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CEE Outsourcing and Shared Services Awards Gala

Ser vices

6 February, 2014 BiznesPolska and BizPoland Magazine are proud to host the second annual CEE Outsourcing and Shared Services Awards Gala (previously named “Poland Outsourcing Awards”).

Central and Eastern Europe (CEE) is well-established as a world-class destination for Shared Services centres and BPO investment. With Poland the strongest location in the region, other countries such as the Baltics, Czech Republic and Romania are important investment destinations.

Global outsourcing firms, business services projects and sector professionals will be presented with awards of acknowledgment - by an independent jury from the industry - for their contribution to the development of the business services sector in CEE for 2013.

This year we are planning on over 250 guests with more than 50 being international firms interested in setting up or expanding their business services centres in central Europe. The awards gala will be preceded by a half-day of discussion panels covering the shared services and outsourcing sector.

The gala and day forum provide an excellent opportunity to make new contacts and renew existing business relationships in a pleasant and social environment.

For full details about Attendance or Sponsorship

www.CEEOutsourcingAwards.pl Chambers of Commerce supporting the event: British, Canadian, Scandinavian, and American.

Premier Partners and Sponsors: Premier Partners: City of Lublin; Skanska Property Associate Sponsors: City of Kielce; Kielecki Centrum Biznesowe; City of Katowice; City of Krakow Strategic Partners: ASPIRE; ABSL Awards Sponsors: Kinnarps; Antal International; Swede Center; Transparent; Connectis; MyBenefit; HedgePole.

International Supporters: World BPO – USA; Outsourcing Verband – Germany; Professional Outsourcing – UK; EOA – France.

Media Partners: BiznesPolska.pl; BizPoland Magazine; Europaproperty; Harvard Business Review.

Audit Partner: TPA Horwath The date for next year’s event Poland (and CEE) Outsourcing and Shared Services Awards Gala – has been announced: 6 February 2014. n

Table of Contents

Cover Story 5 Poland’s massive Military build-up 8 Polish Perspectives on Missile Defense

Real Estate 11 MIPIM dazzles again Equities 14 Georgian Companies to attend CEE IPO Summit in June, consider listing on Warsaw Stock Exchange 15 Equities News in Brief IT 18 The surprising Polish IT Outsourcing potential

FDI Investment News

(19) Poland and U.S. sign new Double Tax Treaty; (20) Poland Day in San Francisco; Finnish packaging maker invests Eur 10 million in Wroclaw; Sharp eyeing sale of LCD TV factory in Poland; Denso to establish firm in Poland to produce auto instrument clusters; (21) Deregulation of businesses Act signed; National Bank of Poland: Balance of Payments in January 2013; (22) Toothpaste giant in 100 million PLN expansion; PV Power Plants – Poland’s solar market heats up; (23) BNY Mellon investing USD 20 million; GM and Opel; (24) US-based Hutchinson expands in Poland; Middle East family investors eye east Europe bargains; Częstochowa spends 1.5 million PLN to promote “Invest in Czestochowa”; (25) BASF starts huge factory; Aluminum firms sets up in Lębork; (26) Poland unsure about its energy mix; (27) 10 billion PLN Coal-gen investment needed for energy security; Up, up and away

City Investment News

(28) Kraków; Eastern Poland; (29) Gdańsk; (30) Poznań; (31) Wrocław

Chambers of Commerce News

(32) Australia; Canada; (33) Netherlands; Turkey; India; (34) Austria; Portugal; China; France; (35) Spain; United Kingdom; (36) Gulf State; United States; Ireland; ROC Taiwan Events 38 Business Calendar 40 Europ ean Executive Forum 42 Renewable Energy Green Power

April 2013

vol. 5 no. 3(34)

Published by: BiznesPolska sp.z o.o. ul. Długa 44/50, bud. D, lok 704, 00-241 Warszawa tel.: 022 831 7062 General Manager and Editor: Thom Barnhardt (tb@bizpoland.pl) Publisher: Craig Smith (cs@bizpoland.pl) Editorial staff and writers: Leon Paczyński, Monika Tutak Research team coordinator: Magda Adamczyk Advertising Sales: tel.: 022 831 706 2 mobile 508-143-963 Graphic Design: Sławek Parfianowicz sparfianowicz.wordpress.com Subscribe to BizPoland Magazine Annual subscribers to BizPoland Magazine receive our monthly magazine, as well as five business directories for free: ­Outsourcing in Poland, CityInvestPoland, Top Offices, Top Shopping Centres, and Wind Power in Poland. 500pln for one year.

Details at subs@bizpoland.pl or call +48-22-831-7062

www.bizpoland.pl

Cover Story

Poland’s massive Military build-up 140 billion pln budget brings big opportunity to business

Territorial defence – particularly air and missile defence capabilities - has become a top-priority of the Polish government, and its nearly-2% of GDP annual budget for defence will provide substantial opportunities for both foreign and Polish defence industry firms over the next decade.

Indeed, Poland not only stands out as the only country in Central Eastern Europe that possesses any considerable defence potential, but sometimes is even counted among “the few countries in Europe that remain serious military players”.

This cannot be attributed to its size alone. Centuries of titanic and often illfated struggle on the crossroads between the largest European and Eurasian powers have created a rich military tradition and strategic culture in Poland. This experience and an awareness of the need to preserve military force as one of the state’s key instruments and its ultimate guarantee for independence have also translated into a political willingness to support robust defence spending.

This year’s defence budget equals approximately $10 billion, which places it roughly between the Taiwanese and the

2013 April

Dutch defence budgets, and equals two thirds of the Israeli one. Even if these figures are not entirely impressive in absolute terms, they are likely to grow steadily — as much as 50 percent by 2022.

This is thanks to the cross-party compromise from 2001 under the so-called Komorowski plan (named in honour of the initiative of the President of Poland Bronisław Komorowski who back then held the post of the Minister of National Defence). The plan enforced a fixed formula stipulating that the basic defence budget should constitute at least 1.95 percent of the country’s Gross Domestic Product (GDP). Even if that requirement is not always kept (the actual average spending reaches a level of 1.8-1.9 percent of GDP annually), it makes Poland look much more serious than most of the continental EU members (the EU average spending is 1.5-1.6 percent, largely thanks to the UK, and France who overstate the European average). The details of the current prospects for defense modernization may be extracted from the recent December 2012 biennial edition of the rolling 10-year plan. These plans envisage approximately 130-140 billion PLN solely on defence procurement.

BizPoland Magazine spoke with Tomasz Szatkowski, an expert in defence procurement and the President of the newlyformed Foundation “National Centre for Strategic Studies” about the priorities and implications of the current Polish defense modernization plans.

In your opinion, what are the main driving factors behind the Polish relative readiness to spend more on defence than its CEE neighbours?

According to government plans, during the next decade Poland will focus on territorial defence rather than on out-of-area capabilities. Of the big- ticket programs, only four programs can be seen as serving all types of missions: the helicopter (envisaging the acquisition of 70 medium-size aircraft for transport, anti-submarine warfare, search-and-rescue purposes), C4I procurement (digitization of the land forces down to the combat vehicle level by 2022), Unmanned Aerial Vehicles (97 sets of short and medium range aircraft, including the armed versions) or the Advanced Jet Trainer program (8-12 planes).

The top-priority programs are, however, geared towards classic high intensity territorial defence. The biggest of them - accounting for 5-8 billion USD - is the plan

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Cover Story

Tomasz Szatkowski is an expert and journalist specialising in military and defense issues, a permanent cooperator of political quarterly Rzeczy Wspólne and a frequent contributor to other media including Rzeczpospolita, Puls Biznesu, and Forbes.pl. His work experience includes the Chancellery of the Prime Minister where he oversaw defense policy issues, the management of the biggest Polish defense industrial syndicate – the Bumar Group and the European Parliament where he was advising on security and defense issues. He currently holds a post of the President of recently established Foundation – the National Centre for Strategic Studies which is to focus on Poland’s contemporary national security and defense policy issues. A graduate of law (Warsaw) and War Studies (London) he received US and UK prestigious awards and scholarships related to his national security expertise and research.

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for a complex upgrade of Poland’s air and missile defence capabilities with 6 medium range and 11 short range missile batteries with corresponding radar, command and communication, logistics and training package.

Another undertaking dealing with classic heavy capability missions (one that is sometimes seen as arguably competing for priority in budgeting with missile defence) is the “armour program,” which envisions the upgrade and purchase of new tanks (altogether approximately 500) and modular wheeled and tracked platforms (altogether around 2000) rendering the Polish army the heaviest in Europe west of the Bug River.

The artillery’s firepower, range and precision is also going to be significantly upgraded. The Ministry of National Defence plans to acquire hundreds of armoured mobile automatic mortars, heavy long-range precise howitzers and powerful rocket artillery systems of the MLRS standard.

Striving to boost its territorial defence capabilities, Poland is not concentrating

only on passive defence. The government is looking into options for conventional deterrence through a long-range precision strike.

The plans to equip its F-16s with stealth AGM-158 JASSM cruise missiles have already been announced, and there is also an interest in purchasing tactical missiles for MRLS launchers. Discussions and studies are underway on whether the most significant naval procurement program – three conventional submarines with revolutionary air-independent propulsion – should also be equipped with tactical missiles.

Contrary to most of its NATO allies Poland is increasing rather than cutting its defence spending. The priorities that you have mentioned also seem to be in stark contrast to those of most of the allied states. What is the reason for these differences?

These plans, indeed, constitute a significant turn in relation not only to other allies but also to the first decade after Poland’s accession to NATO in March 1999, which was largely marked by the operations in

Iraq and Afghanistan. Poland responded to those expeditionary contingencies to the extent it could, rotating altogether approximately 30,000 troops. The rationale behind the Polish involvement was however not rooted in a concern about a terrorist threat on the Polish soil, but was rather defined as an investment in transatlantic relations.

Poland started to appear on terrorists target lists only as a result of its involvement in missions in Iraq and in Afghanistan. This risk was accepted in the expectation that Polish participation will strengthen NATO and the transatlantic security architecture more widely, which were seen as main guarantees of Poland’s sovereignty.

These missions have certainly served to positively transform some of the postWarsaw Pact legacy of the Polish military and have geared it for becoming a more efficient ally of the U.S. Armed Forces in their counter-insurgency efforts. At the same time, however, the missions drained Poland’s modernization budget.

Consequently, together with sizing down

April 2013

www.bizpoland.pl the Afghanistan operation, the US and NATO have heralded the withdrawal from large counter-insurgency operations in the coming years.

Meanwhile, for Poland, old threats have re-emerged. Russia, with a defence budget growing manifold as a result of the boom in the fossil fuel market, has become increasingly assertive in its so-called “near abroad.” The 2008 war in Georgia, the openly-confrontational joint Belarusian and Russian military exercises just across the Polish border in 2009, along with the realization that the effective range of the Russian tactical missiles covers at present most of Polish territory, have been a cold shower for those believing that the end of the Cold War also brought about the “end of history.”

Additionally the U.S. plan to “pivot” towards the Western Pacific and perceptions of decreasing U.S. strategic interest in the CEE region have only heightened Poland’s insecurity. There is fear that the new security concept of NATO, with its reassertion of collective defence and the new contingency plans, will remain only on paper. This fear has recently been reinforced by the US decision to cancel the most advanced phase of its plans to build a missile defence site in Poland.

Cover Story What does the Polish defence modernisation mean for Poland’s allies from NATO and the EU?

There is a danger that the security vacuum created by the perception of an American withdrawal from Europe may be filled with new realignments of power. One of the ways to maintain the transatlantic security architecture is to help assuage security

November, the US formally established a United States Air Force detachment at Łask Air Base While types of visiting U.S. aircraft will vary, the squadrons will include F-16 or C-130 planes, accompanied by up to 200 uniformed military personnel) and the permanent NATO Baltic Air Policing mission, may not suffice for that purpose. The augmentation of indigenous capabilities in the region remains the only other option.

The success of Poland’s defence modernization and the country’s ability to serve as a potential security provider in the region is key to such a concept. Ultimately, this lies at the core of Poland’s role in European defence and within NATO that is becoming even more crucial at the time of the U.S. “rebalancing” toward Asia.

What are the biggest challenges for the Polish procurement plans?

concerns in Northern as well as Central and Eastern Europe.

The symbolic “visible assurances”, as they are often called, such as the presence of the U.S. Air-Detachment in Poland (in

So far the fixed budget formula for defence spending and the broad political support for it makes it less plausible that the government will give up on these ambitious plans. Only grave financial problems would change the mood here.

The main challenge may lie in the need for improving the defence planning and resources management culture, which is

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Cover Story currently suffering from deficiencies typical of CEE countries. Those countries have inherited their military establishments from the previous Warsaw Pact era when it was largely Moscow’s decision who procured and what equipment. As a result the Polish government still has to learn how to prioritize its defence spending and to manage the procurement and the maintenance processes of defence acquisition.

The bureaucracy of the Ministry of National Defence has a reputation of being inert and not very innovative in executing the will of the politicians.

How interesting is the Polish defence modernization to foreign defence industrial companies?

As I have indicated, Poland is one the few countries in the wider Western world that is currently increasing its defence budget and embarking on an ambitious procurement plan. This opportunity cannot be overlooked by the industry. Most of the companies willing to be prime contractors are already active in the market. For instance, Raytheon, Lockheed, MBDA, Kongsberg and Rafael are front runners for the air and missile defence program.

So are DCNS and TKMS for the submarine programme. Lockheed and Kongsberg are very interested in providing tactical missiles. Sikorsky, AugustaWestland and Eurocopter are competing for the helicopter deal.

The Polish defence tenders may, however, offer an opportunity for relative newcomers as was the case ten years ago with the Finnish Patria which secured a huge contract for modern Armoured Personnel Carriers. Similar opportunities emerge

for many sub-contractors who can supply leading competitors. This is also the case for programs which will be led by the consortia of local defence industrial entities – first and foremost in areas of land vehicles, artillery, command and communication.

And what are the main challenges or possible obstacles on their ways for securing interesting and profitable contracts for foreign defence industrial companies?

Foreign defence companies, need to take into account a growing Polish appetite for industrial participation in foreign arms procurement, as well as for a more mature control over the acquired technologies (in particular over source codes, service, maintenance and prospective modernization). They should think creatively about how to maximize the prospects for their cooperation with relatively large Polish defence industrial base. This task will not be easy, as the Polish government has problems with formulating a cohesive strategy towards the country’s defence industrial base. Therefore, for instance, it might be difficult to pick the right local partner from a still-fragmented Polish defence industry.

This effort should pay off nonetheless.

The up-to-date track-record of the foreign industrial aerospace and defence presence in Poland has been largely a success story.

Establishing an industrial presence in Poland should be interesting not only because of the prospects for supplying the Polish military. Poland may be a very good springboard for a presence in the European defence market, which is gradually liberalising its up-to-date exemptions from the Common Market rule. What is clear

from the fast-expanding presence of the aerospace industry, particularly around the Aviation Valley near Rzeszow, is that Poland also offers highly-trained engineering personnel and decent industrial infrastructure.

The Polish government, in turn, should recognize that the defence economy of a medium state does not create conditions for a defence industrial base which could encompass a full range of products. The government should focus on those technologies which are critical from the national security point of view. It should also be able to assess which other technologies offer good chances to become national specialisations and as a result attempt to induce their development in Poland. n

Polish Perspectives on Missile Defense

by Robert Kupiecki

Excerpts from the 7 March speech by the Polish Deputy Minister of Defense Robert Kupiecki at the German Marshall Fund’s conference “Maximizing National Security: The Framework for U.S.-Polish Strategic

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Cooperation on Missile Defense”.

Ladies and Gentlemen, Let me start with congratulations for the organizers of this conference — the German Marshall Fund of the United States, the Polish National Defense University and their sponsors — for gathering such a distinctive group of panelists and participants in Warsaw. They combine civilian and military, governmental, industrial and think-tank experience.

I am grateful to the organizers for the opportunity to share with you today a Polish perspective on missile defense. I hope it will kick-off an interesting and productive debate.

Missile defense has been a topic lively discussed on both sides of the Atlantic for more than a decade. In 2002, the United States

started their briefings at NATO regarding their missile defense plans. Since then, this issue has been placed high on our defense policy agenda in Poland too, and likewise on the Polish-U.S. security agenda.

Polish modernization efforts in the air and missile defense domain got their momentum last year. In 2012, we adopted a multi-billion long-term program for the development and modernization of our armed forces. Among other priorities, the key focal areas in our Armed Forces Vision 2022 are air defense and lower-tier missile defense.

Our national missile defense efforts, the NATO Ballistic Missile Defense (BMD) Program and the European Phased Adaptive

April 2013

www.bizpoland.pl Approach (EPAA) form a coherent and credible defense framework, and a high-value defense strategy of relevance to the entire NATO area of responsibility.

Today, the Polish Ministry of Defense finds itself a moment away from taking crucial decisions on air and missile defense modernization.

The conceptual and planning phase should be concluded within the next few months. But even though some crucial issues are still in process, I will try to sketch-out a picture of why and what we want to achieve in this regard.

Let me start with the question: Why does Poland need modern air defense, including missile defense capabilities?

First, current Polish air defense assets mostly come from the Soviet era, and should be considered obsolete. Their further modernization is generally thought of as not technically and financially justifiable. Currently, we do not have any antimissile defense capabilities. Therefore, taking up the modernization challenge, and broadening our air-defense options and capabilities is not only a rational choice, but simply comes out of necessity.

Second, Poland, as a member of NATO, cannot isolate itself from the capabilities or threat-driven defense programs of the Alliance. The defense of our territories, population, infrastructure and deployed forces requires both national and collective actions — and most significantly, resolute decisions and corresponding capabilities.

It is likely that the ballistic missile threat to the Euro-Atlantic area will significantly grow in the future. In this context, one needs to understand that the development of credible air and missile defense cannot happen overnight, it is technologically complicated and consumes a lot of resources. Consequently, it needs to be a step ahead of a possible threat, so that when

2013 April

Cover Story tensions rise and threats emerge a proper defense is already in place.

If there are any doubts about this statement, I would strongly recommend drawing lessons from the Israeli experience in building their own anti-missile shield, which proved to be so effective during the defense operations against missiles launched by Hamas (operation Pillar of Defense). Its system, once highly criticized for being too expensive and possibly ineffective, now proves to be the solution. I use this case not to praise any particular technology or pretend that there exists a ready-made one-size-fits-all solution, but to point out the wisdom of correct and far-sighted decisions.

Third, Poland has been a strong advocate of NATO BMD development for years. We believe this capability will strengthen Euro-Atlantic security and contribute to NATO’s deterrence posture. The system should become one of the most visible examples of NATO solidarity and defense capability. Now, when there is a chance that the NATO BMD will materialize, we want to be a part of it. As a result, development of missile defense capabilities by Poland will benefit not only Polish or regional security, but also the defense of the Alliance as a whole.

But what exactly do we plan to achieve?

The general aim is: – To build effective defense against both air threats, and short- and medium-range ballistic missiles.

– To achieve flexibility and adaptability of the systems, so that they can effectively respond to changes in air and missile threats, and be upgradable as necessary.

Therefore, while thinking about the risks of today, we want to develop a system that is able to function over a longer period of time.

Robert Kupiecki, Deputy Minister of Defense

Consequently, in order to build an effective air and missile defense system, we plan to modernize the whole spectrum of capabilities: from short-range air defense, through lowertier air and missile defense assets, to radars and command and control systems.

It is quite a challenge, but the key in our modernization efforts is the short-range air defense system and the medium-range air defense with the lower-tier missile defense capabilities. To this end, by 2022 we plan to acquire: – Eleven short-range air defense batteries.

– Six batteries of the medium-range air defense system with lower-tier missile defense capabilities.

Regarding the project itself, we keep working on developing the optimal acquisition of a lowertier air and missile defense system. Two factors are of particular importance in this process: – First, operational capabilities.

– Second, the quality of the industrial partnership with the Polish entities in the system’s development, including the transfer of technology.

Providing medium-range air defense with lower-tier missile defense capabilities for our armed forces will require the cooperation of Polish industry with its technologically advanced foreign partners. The strategic approach we took in developing these capabilities centers around a long-term partnership between the Polish government and defense industry and foreign partners.

It pertains to all phases of the project, including its development, acquisition, integration and future upgrades. Aiming at maximum quality and optimal performance, this process should bring mutual benefits to all participants. The industrial partnership should involve real technology transfers and an innovative involvement of the Polish

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Cover Story

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defense industry in the production and further upgrades of the weaponry.

It needs to be added that we are planning our air and missile defense capabilities in the context of the NATO defense planning process and the deployment of the US SM-3 base in Poland by 2018.

So, please let me share a few thoughts on the NATO BMD and our cooperation with the United States.

I wish to start with stressing that the NATO BMD Interim Capability — declared last year by the Alliance — is just the first step in the system’s long-term build-up. In order to develop capabilities for comprehensive missile defense of the NATO European populations, territories and forces, a lot of work is ahead of us.

First, it is important to stick to the agreed schedule for the NATO BMD development, namely to achieve initial and full operational capabilities in 2015 and 2018 respectively.

Taking into account that the U.S. EPAA constitutes a foundation for the NATO BMD, we should also strive to link progress on the NATO BMD with the EPAA’s phases II and III. Second, in order to make the system effective in the long -run, its architecture has to be sufficiently credible and adaptable to counter not only current and known threats, but also those that could arise in the future. This refers to both their intensity and direction.

By acquiring new air and missile defense capabilities and making them part of the NATO BMD, we will not only add to our national and regional security, but will also significantly contribute to defense of our allies.

Coming back to missile defense, currently we are working with the United States on the deployment of the SM-3 site in Poland. Its timetable has been confirmed by the U.S. Administration, and is also demonstrated by frequent design and study visits by U.S. military planners and engineers. The SM-3 base in Poland should be in place and operational in 2018.

There are obvious benefits of having the US SM-3 installation on our territory.

Strategically, it will strengthen Polish, U.S. and NATO security. It will also play a role in furthering the NATO Strategic Concept principle of “visible assurance” and a “smart” approach to defense.

partners, i.e. from the Visegrád Group, the Weimar Triangle and the Baltic States, in mutually beneficial cooperation.

Summing up, Poland’s engagement in missile defense is three-fold. It involves first, national efforts; second, the NATO BMD; and third our cooperation with the United States in the EPAA. On the national level, air and missile defense is high among our military modernization priorities. This decision stems mainly from the premise that air threats to NATO, including our region, are real and are expected to grow, while the current capabilities cannot

Moving on to our cooperation with the United States in the development of the EPAA. BMD has become a solid and — I want to believe — a long-term element of our defense cooperation with the United States. Our expectations regarding the EPAA concern not only missile defense. We think that our cooperation on BMD should lead to the deepening of Polish-American strategic relations in the sphere of defense. In this regard, I have a feeling that “Poland delivers” in terms of defense capabilities. As a willing and able ally, as well as an organizer of regional defense synergies, Poland should be viewed by its U.S. ally as a solution to many problems European defense is confronted with in the era of fiscal austerity.

Leaving missile defense aside for a moment, I believe that together with our U.S. partners we will explore this potential for a mutual strategic partnership to the maximum. The most recent example of that is the first rotational presence of the U.S. C-130 aircrafts in Poland, within the framework of the Aviation Detachment project.

Moreover, the BMD base will be the first such permanent military presence of the United States in Poland, and in this part of Europe. We see it as a strong and welcome reaffirmation of U.S. engagement in the security of its European allies.

In military terms, the EPAA will provide the upper-tier missile defense of the allied territory, including Poland.

Finally, the development of an air and missile defense system should deepen our technological and industrial cooperation, and benefit our economies.

Coming to the end of my speech, I would like to touch on the issue of our cooperation in missile defense with other allies and foreign partners.

As I already mentioned, providing lower-tier missile defense capabilities for our armed forces will require cooperation between Polish industry and foreign partners. The long-haul approach we took in developing these capabilities points to the need for long-term partnerships. It could pertain to our NATO Allies, including those in the region, but also our non-NATO partners.

One of our goals in exploring international cooperation is to engage with our regional

efficiently deter or counter them. The main effort will be concentrated on the medium-range air defense with lower-tier missile defense capabilities. The conceptual and planning work in this regard is in an advanced phase. The first batteries should be acquired in 2017.

This modernization effort opens a huge space for mutually beneficial cooperation with foreign partners, including on the industrial level. It is also important to stress that it will not impede industrial cooperation opportunities in other key areas of our modernization, such as helicopters, the navy, UAV’s and C4ISR systems.

With regard to the NATO BMD, allies are in the initial stage of its development. However, even now, we should think in terms of the big picture and work hard to ensure that it will become an efficient, comprehensive defense and deterrence tool.

Finally, we remain fully committed to cooperation with the United States in the development of the EPAA, and see its clear benefits for all NATO allies. Missile defense has become one of the most significant elements of our strategic partnership with the United n States in the defense sphere.

April 2013

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Real Estate

MIPIM dazzles again The annual MIPIM real estate investment fair attracted more than 25 Polish cities and countless developers, who descended on Cannes to network, do deals, and connect with investors and partners.

BizPoland Magazine was there, with our newest directory “Top Offices Poland”, distributed in partnership with the City of Warsaw.

Below are direct comments by attendees from Poland’s real estate development community.

Olivia Business Centre – Jake Jephcott never fails to excite, the location “ofMipim course, prestigious and glamorous attracts a crowd rich with government officials and top real estate industry executives from around the globe, journalists and media keen on publishing an exclusive story or interview and an after-hours schedule worthy of a scandal or two!

The closure of Frankfurt airport of course played havoc with many agendas including ours but having managed to re-schedule meetings we made sure that a day lost was not going to effect our efficiency. Olivia Business Centre was present at MIPIM 2013 to introduce the project and brand to a wider audience as well as rub shoulders with our collaborators past, present and future, with a project as large as this one, you have to stay well connected!

The project currently stands at three stages, Olivia Gate, Point and Tower, with Olivia 4 rapidly rising from the terrain.

At MIPIM we were able not only to speak about the buildings but also about the services which will come into action during the first half of this year that will define our project as something special. We have been focusing on making OBC a really great place to be, not just to work and to knit together the companies and individuals in as many ways as possible to promote synergy, growth and co-operation. We will employ a host of services and platforms to do just this. So far the reactions to our new ideas have been enthusiastic and we look

2013 April

forward to sharing with everyone just as soon as it’s all finished!

City of Poznan

“

”

During MIPIM Poznan presented 22 investment offers from the City and 3 offers from our Partner - Wielkopolska Centrum Wspierania Inwestycji. In cooperation with Poznan Metropolis Association we presented offers from Wielkopolska communes (such as Suchy Las, Buk, Czerwonak, Kórnik, Śrem, Kleszczewo i Szamotuły and Tarnowo Podgórne).

Poznan’s offers attracted interest of many potential investors. In addition to the information about investment areas, businessmen asked about Poznan as a place for investment, existing businesses, and as a place to live (quality of life in the city, the economic situation). During the event many important meetings took place with attendance of Deputy Mayor Jerzy Stepien and the Main Architect of Poznan as well as the representatives of Investor

Relations Department. We find our participation is very important, as we need to keep the highest level of our service and spread the information about our offer at this important investment fair.

”

Emmerson Evaluation - Dariusz Ksiaźak, Chairman of the Board Emmerson Evaluation is part of the “Emerson Group, one of the largest Polish real estate companies, providing services such as brokerage, consulting, credit counselling, property valuation and property management. Emmerson Evaluation is responsible for the preparation of real estate valuations and market analysis. Nigel Wade recently joined our team, and he has tremendous knowledge of the Polish commercial real estate market, having been in Poland for nearly 20 years.

Evaluation Emmerson was at MIPIM for the first time. We tried to present our company and the entire group Emmerson and acquire new contacts with customers

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Real Estate looking for valuations and other real estate services. While this was my first time at MIPIM, I understand from my various meetings that this year there were fewer people than in previous years. According to me, we have seen a general atmosphere of stagnation and waiting for further market development.

”

Leach & Lang - Tom Leach & Lang specializes in the Krakow “realLeach estate market. We are pleased to announce that a strategic partnership agreement has been concluded between Leach & Lang Property Consultants and local

12

Krakow real estate agency, Art Apartments.

Starting from March 2013 the day-to-day running of Art Apartments’ business will be taken over by Leach & Lang.

Art Apartments was present on the Krakow real estate market for 5 years dealing mainly with high-end residential properties.

Art Apartments’ employees will now join the Leach & Lang team and both companies will make every effort to ensure that the integration process is as smooth as possible.

«I am very happy that my customers will be looked after by such a respected agency and I am convinced that the transition will be seamless for our clients» – says Iwona Czuchaj, founder of Art Apartments.

«The Krakow real estate market is home to a wide array of different service providers and we see the consolidation of the market as a natural progression. As a result of the acquisition we take over a database of outstanding properties as well as experienced and conscientious staff which should enable us to provide even higher quality services to current and future clients» said Tom Leach, Director of Leach & Lang Property Consultants.

Leach & Lang Property Consultants have commenced the commercialisation of Benaco, a modern A-class office building to be located on Pilotow street in the centre of

from all over the world. The MIPIM Expo in Cannes has been a great opportunity for us to show our most valuable properties for sale, like 2,6 ha property located near the city center (whole portfolio of 30 properties) and to promote cultural and natural assets. During the four days at MIPIM, we have established a lot of new contacts, which we think that in due time will be finalized as agreements of new investments and co-operation with the region of Lower Silesia. The presence of the authorities from the city of Wrocław has also brought us new possibilities during meetings with potential tenderers. Finally the time spent

Krakow. The five-storey design provides for 3,000 sq m GLA as well as 67 parking spaces.

Delivery is planned for Q4, 2014. The investor behind the project is established local developer, DK Development.

while MIPIM was very promising and we hope that we will be attending next year.

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Urząd Marszałkowski Województwa Dolnośląskiego - Damian Jóźwiak

“

The Lower Silesia region is one of the most attractive places for foreign investors in Poland. Thanks to the rapid pace of economic and infrastructural development, special economic zones (in Wałbrzych, Legnica and Kamienna Góra), young and well-educated citizens, the region is drawing a wide range of different companies

Regus - Maciej Skorski, Poland Country Manager, Regus

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Regus, the world’s largest provider of “flexible workspaces, confirmed at MIPIM its plans to expand a number of its offices globally including substantially in Poland.

Poland’s recent economic growth has been among the highest in Europe and the country development generates new business opportunities not only in Warsaw but also in other regions. Regus has recently expanded its network in Poland beyond Warsaw with a tenth business centre in the

April 2013

www.bizpoland.pl country opened in Wroclaw last November, and in the eleventh just opened in Krakow.

Both new locations offer business-ready flexible workspace at the cities’ cultural and business heart that help business of all sizes work differently, relying less on costly traditional office space. For mobile workers, it is a professional place to work on the move; for local and international companies, a more cost-effective alternative to long-term.

”

Chopin Airport City Project manager, Polish Airports - Aleksandra Matuszewska

in 2009 by Polish Airports, “theLaunched operator of Warsaw Chopin Airport, Chopin Airport City is the first project of its kind to be developed in Poland. In the next ten years, the 22.5 hectares of land near the airport’s passenger terminal will be transformed into a business park, combining the idea of a commercially viable development of the area and a creative approach to public space functions. Chopin Airport City will boast 17 A-class office buildings, surrounded by a park with water features and paths. A unique place open to the business community, passengers, tourists and the local residents, Chopin Airport City will meet the highest quality

2013 April

Real Estate standards and the needs of the most demanding business customers.

The construction of Chopin Airport City is planned to begin in 2014, but preparatory works have already commenced. Thanks to the opening of a new rail link between the airport and the city centre in June 2012, it will only take 25 minutes to get to the business park from the city centre.

During this year’s MIPIM real estate show we presented our project for the second time at the Warsaw stand. We were able to attract the interest of a large number of international developers and investment funds. It is too early, however,

to discuss the specific terms of potential cooperation.

MIPIM is a good place for measuring the interest of potential investors and we find it really helpful with our project. After last year we had a lot of meetings with potential business partners who already knew about our project, also thanks to last year’s promotion at MIPIM. We plan to establish a holding company, Chopin Airport City S.A., which will take over the work on the project and, ultimately, the management of the complex once it is ready. The company will be able to pursue development projects through its special purpose vehicles, on its own or

in cooperation with its business partners.

Therefore, during the real estate development stage, we want to invite developers and real estate investment funds to the project in order to benefit from their capital potential, as well as their expertise and knowledge of the office buildings market.

”

Hines Global REIT Acquires TwoBuilding Complex in Warsaw Hines Global REIT announced in late March that it has acquired the 481,070 sq. ft. New City office complex in Warsaw, from Europejskie Centrum Inwestycyjne

(ECI Group) for an undisclosed sum. The property is fully leased to 51 tenants including internationally established companies such as Gruner+Jahr, Novartis and Samsung. The complex features two buildings – an 11-story 437,485 sq. ft. building completed in 2010 and a recently completed four-story 43,585 sq. ft. building. “Poland is a strong and growing market, and New City, because of its strong tenant roster, advantageous location within the Mokotow submarket and quality design, should complement the Hines Global REIT portfolio very well,” said Mietek Gozisz, senior managing director of Hines in Poland. n

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Equities News

Georgian Companies to attend CEE IPO Summit in June, consider listing on Warsaw Stock Exchange

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Poland’s capital will be hosting several hundred foreign investors interested in the region and the managers of companies planning their IPO on the Warsaw Stock Exchange. For the first time, there will also be one-on-one meetings with board members of Polish blue chip companies listed on the WSE and foreign companies preparing their debut. The WSE expects the banking sector as well as Georgian Railway and Georgian Oil and Gas Corporation to be listed on the Exchange soon. Representatives of Georgian companies, including Liberty Bank, Bank of Georgia, Wissol, Georgian Railway, and Georgian Oil and Gas Corporation, however, say that they are not interested in the WSE at this moment in time. “In 2011 Liberty Bank planned to float on the Warsaw Stock Exchange, and had this IPO taken place, no less than GEL 50 million of additional equity would have been available to the Bank,” Lado Gurgenidze, the Bank’s CEO, told shareholders. “But due to the prevailing market conditions, the Bank was forced to cancel this transaction,” he said. The CEE IPO Summit, Warsaw 2013 is a major conference for international investors and companies seeking growth capital in Central and Eastern Europe. The Summit is being organized by the Ministry of Treasury of the Republic of Poland, the Warsaw Stock Exchange and the National Depository for Securities (KDPW), supported by Partners - global and regional financial, legal and advisory firms, and the City of Warsaw. “We are observing ongoing interest in the Polish market from companies operating in Central and Eastern Europe (CEE), Russia and furthermore, also from Georgia,” said Piotr Borowski, Director of the Business Network Development Department. “The WSE’s representatives visit these countries on a regular basis, meeting with various entities interested in the subject of IPO in Warsaw. But their listings depend mostly on improvement of the situation on global capital markets. We believe the WSE is the best choice for Eastern European companies and we will do our best to support decisions to enter our market,” he added.

Altogether 51 foreign companies are listed on the WSE, their countries of origin include Ukraine , the Czech Republic, Israel, Bulgaria and Lithuania. “Listing on the WSE can give Georgian companies access to the largest institutional investor asset pool in Central and Eastern Europe. Poland has a strong pension fund system and a diversified mutual fund landscape. Additionally, Warsaw Stock Exchange provides a level of visibility

to medium-sized companies that cannot be achieved on other European markets, where much larger companies catch the attention of investors,” said Borowski. “ The decision to list is business-driven, and many companies appreciate that the overall cost of listing in Poland, including the services of intermediaries, can be much lower than in Western Europe. Overall we feel, and over 50 foreign issuers from over 20 countries on the WSE seem to confirm, that listing on the WSE is a very effective way of fully benefiting from access to EU capital markets and international investors. And, in comparison with the main European stock exchanges, the WSE is still a relatively young market with high potential for growth,” he added. “Financing business is one of the key challenges for Georgian entrepreneurs and the high rates of bank loans are a major problem in Georgia,” said Maciej Chrzanowski, Economic Officer at The Embassy of the Republic of Poland in Tbilisi. “For many companies public listing can prove a good solution. It provides cheaper access to long-term capital and allows the attraction of new investors. Credibility and prestige resulting from IPO should not be underestimated either,” he added. “ The Warsaw Stock Exchange provides ‘visibility’ for Georgian issuers. Unlike the biggest exchanges such as London or New York, investors present in Warsaw are focused on emerging Eastern European markets and therefore are naturally more interested in Georgia.

Good case studies for potential Georgian issuers are the twelve Ukrainian companies that attracted significant capital via Warsaw during the last few years. Their critical mass

made the WSE launch WIG-Ukraine - the first national index in Europe comprising companies originating from Ukraine. As for Poland, with its population of 38 million, it is the largest country in Central Europe and the EU’s sixth economy (PPP-valuation). We are one of the few European economies that did not contract during the economic crisis and prospects for the next years are also positive,” Chrzanowski said. The previous government of Georgia intended to develop the Georgian Stock Exchange based on the WSE’s experience. “In the past, the WSE has taken part in various events focused on capital markets which were aimed at representatives of the Georgian administration and private sector doing just that - trying to help the Georgian Stock Exchange to develop. We have participated, for example, together with the Polish Ministry of Treasury in seminars in Tbilisi , where we talked about the structure of the Polish capital market, strategies for international IPOs and the Warsaw Stock Exchange’s own IPO as an example of a transaction of crucial importance for strengthening the Exchange’s position in the region. We also signalled a need to create necessary institutional and legal infrastructure, as well as an effective supervision over the market,” Borowski said. “Building the capital market is an important component of the economic transformation process. There is already a good base for further cooperation between representatives of Georgia and the WSE. This would help to build a favourable investment climate and foster cooperation between the financial markets,” he added. n

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Equities News

Azerbaijan to join Financial Summit in Warsaw

Gant reaches agreement with bondholders on debt restructuring

Azerbaijan will take part in IPO Summit Warsaw 2013, two-day conference about the challenges of global financial markets.

The conference will take place on 6th and 7th of June. It is organized by the Ministry of Treasury in cooperation with Warsaw Stock Exchange and National Depository for Securities.

Gant Development has signed a framework agreement with financial institutions about the reorganization of its debt maturities. The agreement’s signatories took new bond issues worth of PLN 29.15mn and obliged themselves to change the maturity of the group’s new liabilities to May 31, 2013, the company reported.

Simultaneously, the bondholders are interested in participating in the company’s three-year bond issue, which is essential to support the group’s liquidity via changing the existing bonds with fixed-term maturity into bonds of the new issue (PLN 29 million). The annual general meeting of shareholders is tackle this issue on Apr 3, 2013.

Gant Development is a holding of several dozen special purpose vehicles conducting developer and building activity. The building activity is focused on constructing housing units and business premises as well as on selling and managing the built real estates. It is present in seven Polish cities: Warsaw, Wroclaw, Poznan, Gdansk, Cracow, Opole and Polanica Zdroj.

And on 3 April, Karol Antkowiak resigned from the post of Gant Development’s president.

Ovostar’s net profit rises by 18% to USD 24 million in 2012 Ovostar Union posted net profit of USD 24 million in 2012, which means an increase of 18% y/y. Ovostar posted revenue at USD 60 million in 2012, which means an increase of 19% y/y, while the cost of sales increased in line with growth of sales volumes reaching USD 42 million.

The gross profit increased by 24% to USD 29 million, and the operating profit rose by 14% y/y to USD 24 million, while EBITDA increased by 21% to USD 27 million in 2012.

The operating cash flow reached USD 17 million vs. USD 10 million a year earlier.

Ovostar Union group is Ukraine’s leading firm dealing on agro-industry sector, and is one of three-top firms in Ukraine, producing chicken eggs. The group produces also the sunflower oil and the feedstuff. The company debuted on the Warsaw bourse in 2011.

Coface: Number of bankruptcies rises by 11% to 211 cases in Q1/2013 Courts announced 211 bankruptcies in Q1/2013, i.e. 11% more than a year earlier, according to Coface’s data. In Q1/2013, 211 companies went bankrupt. The last time when the level of 200 firms collapsing was breached was in 2005. Coface estimates that this year growth of bankruptcies will be similar to last year’s and may reach 18%.

AuM of Polish private pension funds rise to PLN 269.6 bln at end-March Assets under management of Polish private pension funds OFE rose by PLN 1.1 billion, or 0.4% m/m, to PLN 269.6 billion in March, a report by researcher Analizy Online showed.

AuM increased in March after two months of declines, the report showed.

The March increase in AuM was a result of PLN 1.4 billion transferred to OFEs by

Poland’s social insurance board ZUS, the report reads. The result on management was negative and took some PLN 0.4 billion from the AuM figure, the researcher said.

PKO BP bank plans multiple acquisitions Poland’s top bank PKO BP plans acquisitions in banking, asset management and leasing segment on the Polish market, and eyes strategic alliances in the areas of bancassurance and electronic payments, the bank said in materials on its 2013-2015 strategy.

The bank plans to take an active approach to acquisitions in Poland, with potential takeover targets being small and medium-sized banks, the presentation showed.

“On the Polish market, we want to be an institution which will use the economic slowdown to its own advantage,” CEO Zbigniew Jagiello told a news conference.

“We want to take over a bank which has good retail locations and clients from the mass affluent segment - there are several such targets.”

PKO could start talks on acquisitions in the coming quarters, the CEO added in a televised interview. “There are at present several institutions which think about changing their engagement in Poland,” Jagiello said, adding that the bank is in touch with them and could potentially announce a transaction some time over the coming quarters.

Apart from the mass affluent segment, the bank also wants to expand in small towns, the CEO reiterated. “We proposed an alliance to the Polish Post [owner of Bank Pocztowy] and I hope that within several months we will know whether [the alliance can materialize],” Jagiello said.

LPP group’s revenue rises by 18% y/y to PLN 286mn in March Consolidated sales revenue of the LPP Group amounted to around PLN 286 million in March and were up by around 18% y/y, the firm announced. Estimated gross margin on sales would be around about 62% and was up by 1pp in annual terms.

In the period between January and March, 2013 consolidated revenues from sales totaled about PLN 744 million and were higher by about 13% as compared with the revenues generated in the corresponding period in the previous year.

At the end of 2012, the group’s sales network consisted of 1077 clothing stores, including: 344 under the Reserved brand, 295 under the CROPP brand, 259 under the House brand and 161 and the Mohito brand.

2013 April

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Equities News

with other carriers in Poland and the EU,” Treasury Minister Mikolaj Budzanowski said as cited in the statement.

In the privatization process, Poland intends to retain the LOT brand name and its national identity as well as Warsaw headquarters, the minister reiterated.

PLL LOT submitted its restructuring plan to the Treasury Ministry on March 20, 2013. The plan is to be sent to the European Commission by June 20, but the ministry will work to have it sent sooner, the statement reads.

The restructuring plan assumes optimization of the network of connections, fleet structure and employment as well as various cost- and revenue-side initiatives aimed at making LOT a “durably profitable” company, the ministry said.

Zbigniew Jagiello, CEO, PKO BP

On the foreign market, the bank will adopt an opportunistic approach, with potential acquisition targets depending on the situation of bank owners and on the assessment of investment attractiveness. “We are looking [solely] for fantastic acquisition opportunities,” CEO Zbigniew Jagiello commented during the news conference.

In related news, PKO BP intends to sell its non-banking units in Ukraine and divest its stake in real estate developer Qualia Development, deputy CEO Jakub Papierski said.

“We want to dispose of the non-banking firms in Ukraine, we want to focus on the core business,” Papierski said. In the Ukraine, PKO BP owns a debt collection company Inter Risk.

PKO BP plans “cautious” development of its Ukrainian bank Kredobank, the bank also said.

The bank also intends to exit real estate development unit Qualia Development, but the transaction is unlikely to happen this year, the official stated. “We want to transform Qualia Development and exit this business,” he said. “The sentiment around real estate developers is not great, so we doubt that the sale could take place in 2013,” he added for PAP. Plans to unload Qualia were already mentioned in July 2012 by PKO BP’s strategy and investments director Pawel Borys.

“The bill . . . enables the state to sell a majority stake in the national carrier, but does not mean an automatic loss of control of the State Treasury over the company,” the statement reads. “After the act is revoked, future ownership decisions will still be subject to limitations from, for instance, the EU law.”

Under the hitherto regulations, the Treasury is obliged to retain a 51% stake in PLL LOT. “The State Treasury will be able to offer a majority stake in the company, which gives a chance of interest from a stable and strong industry or financial investor, which will ensure LOT a dynamic growth and will allow the company to effectively compete

Impaired loans edge up to PLN 72.4 bln or 8.9% of gross book at end-February The Polish banking sector saw impaired loans to the non-financial sector edge up to PLN 72.39 billion by end-February from PLN 71.71 billion at end-January and from PLN 66.3 billion one year prior, the central bank said in a report.

Impaired loans thus rose to 8.9% of gross book, calculations against gross portfolio showed. Impaired loan ratios edged up by 0.2 pp in the corporate portfolio, with a 0.3 pp increase in the case of PLNdenominated corporate loans, the data show. On the retail clients front, consumer impaired loan ratio edged down by 0.1 ppt, while in the case of mortgage loan book it was unchanged.

Poland takes first step towards LOT privatization

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Poland’s cabinet adopted a bill repealing the law on the national airline PLL LOT, thus paving the way for the privatization of the carrier, the Treasury Ministry announced on its website.

Sebastian Mikosz

April 2013

www.bizpoland.pl Cyfrowy Polsat media to purchase Polskie Media for PLN 99 million Polsat TV, a unit of listed TV broadcaster and DTH operator Cyfrowy Polsat, signed a conditional agreement to purchase Polskie Media, broadcaster of TV4 and TV6 channels, from Karswell Ltd and Sensor Overseas Ltd, for PLN 99 million, the company said in a market filing.

The transaction should be finalized in July 2013, the company said in an accompanying press statement.

The purchase of Polskie Media is “a strategic step tailored at strengthening Polsat TV’s market position,” as it opens the possibility of increasing advertising revenues through extended coverage and stronger negotiating position of the group, and offers synergies in the areas of TV content, marketing, cross-promotion and back office resources, the company said.

According to Konrad Ksiesopolski, an analyst at Espirito Santo: “The price is rather

low and the market expected the firm to overpay considerably for this asset, which is associated with Mr. Solorz-Zak. Looking at the last available financial results of TV6 for 2011, when the company generated PLN 9 million EBITDA and had PLN 29 million net debt, this would imply an EV/EBITDA multiple of 10.5-11.5, and that is the market valuation of typical TV assets. As far as peer comparison valuation is concerned, it is slightly above the median. From a business

2013 April

Equities News point of view, this is a sensible transaction.

Both channels have a rising share in viewership, as they are present in digital multiplexes. It is good that [the channels] will be consolidated: it will likely be beneficial for advertisers.”

“Out of three scenarios which were mulled by Cyfrowy Polsat, i.e. dividend, debt pre-payment and investments, I perceived a dividend as the least likely and I stand by that view. I would rather expect that after this transaction, Cyfrowy Polsat may spend the remaining means on deleveraging.”

Poland approves construction of LNG terminal; first stage due for completion in 2015 Poland has approved the construction of the LNG terminal in Gdansk, with the first stage of the investment worth PLN 415 million slated for completion in 2015, the Treasury Ministry announced on its website.

The contractor of the first stage of proj-

ect is IDS - Bud, the ministry said. The investment, to be carried out in two stages, encompasses construction of a base for storage and transshipment of crude oil, oil products and chemicals, with the total capacity of 700k cubic meters.

Polish banks post net profit of PLN 2.82 billion – down 1.7% y/y Polish banks suffered a 1.7% annual decline in profits during the first two months of

the year to PLN 2.82 billion, data from the National Bank of Poland (NBP) has shown.

Total banking income is down a stronger 6.1%, predominantly a result of a 9.6% or PLN 575 mln y/y decline in net interest income.

Banks made up for those shortfalls with reduced OPEX and a reduction in reserve provisioning, the data show. Profit and income declines accelerated in the second month, with February declines deeper than YTD calculations.

Bioton biotech signs deal with Bayer HealthCare for distribution of insulin pens in China Biotech firm Bioton signed an agreement with Bayer HealthCare Company Ltd. for the distribution of Bioton’s insulin pens in China, the firm said in a market filing.

“Bioton’s pen will be offered by BHC on the Chinese market under the name ‘Bai Lin Pen’ and will constitute an important element of BHC’s product offer in terms of

diabetes treatment,” the filing read. The deal runs until December 31, 2015 with the possibility of extension.

Back in July 2009 the companies signed an agreement making BHC the sole distributor of Bioton’s insulins in China, Bioton reminded. “Expanding cooperation . . . by distribution of pens will, in the management’s view, help increase Bioton’s insulin sales on the Chinese market,” the firm said. n

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IT

The surprising Polish IT Outsourcing potential Typically, when you think of IT Outsourcing you think India. However, India is not everyone’s holy grail. Many emerging countries might have better conditions.

Poland is a prime example of such pearls in IT.

By Peter Horsten

Back in 2005 I investigated the Polish IT market to assess its readiness for Western European outsourcers. Honestly, I was surprised. The level of innovation, the knowledge, the skills, rates, everything seemed perfect and exceeded my expectations.

What Poland has to offer might seem unbelievable

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Compared to India, Poland offers several advantages. It is nearby with a favourable time zone, the cultural background is similar, and thanks to the EU there are common legal regulations known to all. That’s why, together with my business partner we started an Agile software house in Poland in 2006.

Over the past years many analysts have reported the growing Polish IT outsourcing attractiveness. Several Polish cities are ranking high on for example the Tholons Top 100 Outsourcing Destinations 2012.

Unfortunately, too often I notice that this Polish, or maybe even Eastern European, potential remains unnoticed.

For different reasons people seem not to be aware that Eastern-Europe is developing almost at the speed of light. We realized it especially when talking to our potential (nonPolish) clients. They appear to have a very old fashioned image of Poland. They still think it’s a rather poor and industrial country and associate it only with its legendary figures Lech Wałęsa and Pope John Paul II. It’s great to see how astonished they are once they actually visit Poland. They immediately conclude themselves that Poland is a rapidly developing and modern country with a lot to offer. They notice that Polish IT developers are at least as clever as their counterparts back home, and very

often way ahead, winning international programming competitions.

Cost saving still the most common outsourcing reason As mentioned initially Poland might be skipped as an attractive outsourcing destination. Mainly because the main reason for doing so is still cost saving. Even more so in times of economic downturn.

The price tag being the sole motivation of outsourcing is a mistake. It should be a strategic decision to increase flexibility, to reduce the time to market of new solutions and possibly to eventually enter the attractive Polish/Eastern European market.

Skills will make the difference We have already noticed that a more important reason to consider Poland as an outsourcing location is the increasing skill gap. In most European countries it’s getting hard to find the right-skilled software

“

people seem not to be aware that Eastern-Europe is developing almost at the speed of light

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developers. Not enough people seem to be interested in IT related careers compared to the demand. Ambitions drive a major part of software developers to become architects, consultants or (project) managers as soon as possible, not leaving enough craftsmen at the core levels.

This is not the case for Poland. Recently, one of our clients stated in an interview for a Dutch newsletter: “The Dutch labour market offers not enough engineers. We solve this issue by hiring Polish developers. Being extremely intelligent and proud of their job they are true professionals. In the Netherlands every educated person wants to become a manager. In other countries they want to learn a craft”.

Today this availability of skills is a unique selling point for Poland. Many good universities across Poland annually deliver welleducated engineers. However, finding the right ones slowly becomes a challenge. Many

Western companies already found their way to the leading outsourcing cities like Krakow and Wroclaw. Salaries in these areas are rising and so are the costs of the companies’ services. Depending on your needs and what you can offer, it might be better to look for employees or service providers in other Polish cities.

Poland very suitable for smaller outsourcers The organizational readiness is essential before you can outsource. This is probably the main reason that corporate organisations were the first ones to outsource. They took huge projects to, among others, India.

Some were more successful than others, communication, project management and quality control dictated the result.

When you are not so experienced with outsourcing, it might be better to look for a nearby destination. Preferably to work according the Agile approach. In general it is close to impossible for an outsourcer to clearly specify their needs. When you cooperate using Agile with a nearby provider it will be easier to understand each other’s needs and to correct the developers in time.

Making all the difference between a failed and a successful project.

Huge corporations are probably still better off in countries like India. Due to the simple fact that India is way bigger, it’s easier to scale up (increase) the team in India than it will be in Poland. But for smaller, more innovative projects and for smaller, less seasoned organizations a so-called nearshore location will prove to be a far better option. n About the author Peter Horsten (1969) is founder & owner of Goyello, a Polish-Dutch Agile software house, delivering working solutions. Horsten founded Goyello in 2006 together with Arie de Bruin.

Currently he is responsible for the strategic and operational leadership of Goyello’s sales, marketing, and services organization with a special focus on company’s self-developed SaaS business solutions. Horsten graduated from Erasmus University in Rotterdam with a degree in sociology and from the Hogeschool Utrecht with a degree in electronics. Horsten lives in Gdansk, with his wife and 3 sons. You can contact Peter through e-mail: peter.horsten@goyello.com or follow him on Twitter: @PetersOpinion.

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FDI Investment News

Poland and U.S. sign new Double Tax Treaty A new Double Tax Treaty between Poland and the United States was signed in Warsaw on February 13, 2013. The new tax treaty will replace the existing Poland-U.S. income tax treaty signed in Washington D.C. almost 39 years ago, on October 8, 1974.

The new treaty departs in many cases from the standard OECD model and includes a number of provisions based on the U.S. model, in particular including the famous U.S.-style “Limitation on Benefits” clause, as well as a number of new clauses, not present in the 1974 treaty.

The most important changes and new rules in the new treaty are as follows.

• A change in the tax rules on cross-border dividend payments that exempts payments made to pension funds and introduces special rules for dividend payments made to U.S. regulated investment companies and U.S. real estate investment trusts.

• A change in the tax rules on cross-border interest payments that replaces the current exemption from withholding tax at source with a dual approach

that provides for a maximum 5 percent withholding tax as a general rule and an exemption for certain “qualified” interest payments (for example, interest payments made to the contracting state, its political subdivisions, a local authority, pension fund, bank, insurance company, or entity engaged in lending or finance business.

• A reduction of the maximum withholding tax on cross-border royalty payments from the current 10 percent to 5 percent.

• The intr oduction of a new branch profits article.

• Extended rules for pensions, social security, annuities, alimony, and child support.

• A new provision on “other income”.

• The replacement of the ordinary tax credit as a general method for preventing the double taxation of Polish residents with a combination of an exemption with progression as a general rule and an ordinary tax credit for dividends, interest, royalties, capital gains, and other income. Also, the new

treaty introduces a new set of rules relating to U.S. citizens who are residents of Poland.

• The introduction of a broad exchange of information clause that allows for the exchange of information necessary for the application of the treaty and for the implementation in both countries of domestic tax provisions concerning taxes of every kind and description.

The new treaty will enter into force on the date of the later notification of ratification. For taxes withheld at source, its provisions will become effective, for amounts paid or credited, on or after the first day of the second month after the date on which the treaty enters into force, which itself is an unusual rule, as normally such treaties become effective with respect to income derived on or after January 1 of the calendar year following the year in which the treaty enters into force. For other taxes, the provisions will become effective for taxable periods beginning on or after the first day of January following the date on which the treaty enters into force. n

ŁÓDŹ

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FDI Investment News

Poland Day in San Francisco Poland Day was held in San Francisco on 25 March 2013. It is an annual networking meeting, which helps in business cooperation and technology exchange between Polish and American companies in Silicon Valley. PAIiIZ took the patronage over the event. Poland Day is organised by US-Polish Trade Council (USPTC, Polish-American Cooperation Council, www.usptc.org). Poland is one of the most promising partners in the gaming industry. Polish programmers regularly occupy leading positions in international competitions and Olympiads. Polish virtual games producers are placed among the world’s best-known artists in the entertainment industry and their achievements are internationally recognised.

The number of users and purchasers of electronic games in Poland is growing rapidly and attracts foreign companies considering investment in Poland.

Poland Day is held at the same time as other international conferences such as Global Technology Symposium (GTS www.globaltechsymposium.com). n

Sharp eyeing sale of LCD TV factory in Poland Sharp Corp. is considering selling its Polish factory where it has been assembling liquid crystal display televisions for the European market as part of turnaround efforts, due to nearly 40% decline in unit sales over the last two years.

Sharp appears to be sounding out investment funds and foreign consumer electronics makers on whether they are interested in acquiring the factory. But it remains uncertain whether the struggling Japanese manufacturer will be able to find a buyer of the plant, as negotiations with potential acquirers have run into

difficulties, the sources said. It may eventually move to close the factory if it does not succeed in the ongoing talks.

Sharp is keen on improving the profitability associated with its television operations and padding its cash holdings by selling the plant. European sales of Sharp’s LCD TVs stood at 1.4 million units in fiscal 2010. But, hit by the anemic European economy, the sales fell to some 1 million units in fiscal 2012.

Consequently, the operating rate of the Polish plant has dropped, making it unprofitable to run. n

Finnish packaging maker invests Eur 10 million in Wroclaw

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Walki Group is to expand its production network in Europe by opening a new manufacturing plant in Wroclaw.

The new plant, which is to commence its production during the third quarter of 2013, will be Walki’s third production site in Poland.

The Finnish company makes protective packaging and technical and laminates, including facings for polyurethane insulation materials.

Initially, the plant will focus on serving the forest industry and consumer packaging businesses, Walki said on 25 March. The company will invest almost €10 million in the project, and the plant will employ about 50 people during the start-up phase.

“With this investment, Walki is showing its strong commitment to its fast growing customer base in Central and Eastern Europe by providing more efficient and sustainable supply chain solutions and better customer service capabilities,” said Leif Frilund, President and CEO. n

Denso to establish firm in Poland to produce auto instrument clusters Denso Corp. announced in late March that it will establish a new company to make automobile instrument clusters in Myslowice. Its investment in the new company will total $5.1 million, and Denso expects to employ about 70 people March, 2016.

Denso Poland Sp.zo.o will begin operations on April 5 and start producing instrument clusters in August. Denso produces instrument clusters for automobiles in eight countries and regions, and the company will further increase its production capability to meet the needs of customers. n

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Deregulation of businesses Act signed President Bronisław Komorowski signed the Act to reduce some of the administrative burdens in the economy, prepared by the Ministry of Economy.

The Act is aimed at improving the performance of business in Poland, in particular reducing gridlock and unnecessary disclosure obligations. It is especially beneficial for small and medium-sized companies that do not receive timely payment from their customers. The Act also increases the transparency of the administration. The new rules are in force from 1 January 2013.

Adopted regulations abolish the obligation to pay VAT for the small taxpayer (cash settlements), if the counterparty as an active VAT taxpayer does not pay for goods or services supplied.

The Act also introduces such changes in the use of so-called allowance for bad debts.

A taxpayer who accounted for VAT on the duties, who was not actually able to collect the tax due after the expiry of 150 days from the due date (currently 180 days).

The new regulations also introduce a solution to increase the transparency

of state institutions - including publication by the Social Insurance Institution (ZUS), the National Health Fund (NFZ) and the Agricultural Social Insurance Fund (KRUS) issued interpretation and indication of the scope of the individual interpretation.

The Act of 16 November 2012 on the reduction of some of the administrative burden in the economy (OJ item. 1342) is the third legal act of general deregulation prepared by the Minister of Economy in the last two years.

More details of this Act and the previous two is on: www.mg.gov.pl/node/17268. n

National Bank of Poland: Balance of Payments in January 2013 According to preliminary data, in January 2013 Polish exports denominated in EUR posted a 7.3% rise on their previous year’s figure and exceeded the January imports.

The negative balance on the current account amounted to over EUR 1.5 billion.

On March 14, the National Bank of Poland released preliminary data on Poland’s balance of payments in January 2013. According to these data, the January exports of goods reached almost EUR 12.2 billion and exceeded imports just barely,

by EUR 5 million. Exports in January 2013 were by 7.3% higher than in January 2012 whereas import growth stood at 1.1%.

The service account also showed a surplus of EUR 0.3 billion, amidst deficit in

17 kwietnia 2013

the income account (in excess of EUR 1.5 billion) and in the current transfer account, including the EU transfers account. In January 2013, Poland paid its EU membership fee in the amount exceeding EUR 0.5 billion, whereas higher inflow of EU funds to Poland is expected in the coming months. The resulting current account deficit was in excess of EUR 1.5 billion, albeit lower than in January 2012, when it stood at nearly EUR 2 billion.

January 2013 saw an increase in foreign investment in Poland, including a growth of approx. PLN 1.2 billion in foreign direct investment. Polish investment abroad edged up by over EUR 0.8 billion. n

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Toothpaste giant in 100 million PLN expansion In the third quarter of 2013, the development of Świdnik Colgate-Palmolive factory will begin. By the end of 2015, Colgate will invest in expanding the plant by at least PLN 102.5 million and employ at least 80 new employees.

Work on the expansion of the ColgatePalmolive factory by construction of the hall with an area of 6,000 sqm will last til mid-2014. The current halls occupy about 35,000 sqm.

The Świdnica plant will produce mouthwash liquids and toothpaste. The ColgatePalmolive plant in Świdnica will become one of the firm’s key, strategic factories in Europe.

The Colgate-Palmolive toothpaste factory in Świdnica was officially opened on July 1, 2008. The company declared to employ at least 400 people and an investment of PLN 160 million. Currently, the plant employs more than 600 people, and the investment in Świdnica so far exceeds PLN 400 million. n

PV Power Plants – Poland’s solar market heats up

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“Photovoltaics is gaining more and more importance. Poland must not miss out on this development,” said Dr. Stanislaw Pietruszko of the Polish Photovoltaic Association in his welcome address to the participants at the PV Power Plants – EU 2013 Conference. The event took place in Warsaw on the 14th and 15th March. An investment workshop on ”Photovoltaics in Poland” took place the day before the conference.

Around 180 experts took the opportunity to discuss the potential of the European photovoltaics industry, with particular regard to Poland. The central questions were whether, and to what extent, a PV market will emerge in Poland, and who should invest in it. Furthermore, the important topics of the solar industry such as on-site consumption, quality management and energy storage, were discussed.

The Polish market debate centered around the question of when the projected Renewable Energies Act is expected to come into force. During the opening session, ”Going East? The Future of PV in Europe”, predictions were varied, ranging from “maybe tomorrow” to “hopefully in 2014”.

According to Dr. Christian Schnell, a partner at DMS Legal law firm, the Renewable Energies Act should come into force in the first half of 2014, provided the proposal is submitted for debate in the Polish parliament before the summer break.

An essential question was whether or not the co-combustion of biomass and coal will be part of the system. It now looks as if there will soon be a compromise to further modify the draft law so that it can be passed by the cabinet. Adam de Sola Pool of Environmental Investment Partners encouraged participants to invest in the Polish market: “There will be a market for photovoltaics in Poland.” He advised his audience to remain flexible and be prepared to react quickly.

Karol Lasocki of K&L Gates outlined the grid access situation for PV installations in Poland. He explained that in contrast to Germany’s current draft laws, there are few incentives for storing energy in the new Polish draft of the Renewable Energies Act. Grzegorz Wisniewski of IEO - Institute Energetyki Odnawialnej said that it may even be worth investing in photovoltaic installations in Poland without subsidies

because of the expected rise in electricity prices, amongst other reasons.

The PV industry’s potential beyond subsidies was also discussed in sessions on other European photovoltaic markets.

Christian Grundner of Eclareon presented Turkey as a promising market for industrial roof installations that produce power for on-site consumption. According to Pere Soria of Circutor, Spain is in a good position to use solar energy for on-site consumption without state subsidies thanks to excellent local conditions. Josefin Berg of IHS presented attractive conditions in other Eastern European markets, such as Romania, Serbia and the Ukraine.

She did, however, recommend carrying out careful analysis since these markets present both opportunities and risks.

In addition to the growing PV markets, the conference also dealt with the latest technical issues. Ingo Ernst of Schneider Electric outlined the key strategies in the field of energy storage, such as peek shaving, load shifting, energy balancing and cost reduction, while Ken Christensen from SMA spoke about grid management.

The two-tiered PV Power Plants – EU 2013 Conference was organised by Solarpraxis AG, one of the leading knowledge service providers of the renewable energies sector and organiser of around twenty conferences and expert workshops per year. n

April 2013

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BNY Mellon investing USD 20 million BNY Mellon, the global leader in investment management and investment services, will invest USD 20 million in technology and infrastructure development service center in Wrocław.

BNY Mellon, at a press conference in March, confirmed the change of its Wrocław office in order to expand its global service center - Global Delivery Centre (GDC). This project is part of a global expansion strategy in Europe. Changing the location is part of an investment of USD 20 million in center in Wrocław.

Aquarius Business House will be BNY Mellon’s new headquarters. The office of 6000 sqm can provide space for 640 employees. Wrocław office currently employs approximately 200 employees who perform functions that require high qualifications, mainly in the area of fund accounting and financial operations. GDC transfer to the new building will begin in the fourth quarter of 2013. Recruitment program targets highly-skilled workers.

BNY Mellon is a financial institution that supports the management of investments and financial assets on behalf of its customers in 100 markets in 36 countries. The company employs 48,000 people worldwide,

including 9,000 in Europe, Middle East and Africa. In March 2012, Wrocław was the fifth of the six Global Service Centres of BNY Mellon in the world. GDC’s other locations are in Pittsburgh, New York, Manchester, Pune and Chennai. n

GM and Opel On 28th March 2013, General Motors Manufacturing Poland Sp. z o. o. celebrated the official set-up of Opel Cascada production. This year marks the 15th anniversary of the date when the first Astra rolled off the production line factory in Gliwice.

The ceremony was attended by Janusz Piechociński, Deputy Prime Minister, Minister of Economy, Stephen Girsky, General Motors Vice Chairman, Andrzej Korpak, Managing Director at General Motors Manufacturing Poland (GMMP) in Gliwice, prof. Jerzy Buzek, former Prime Minister and former European Parliament President, Stephen Mull, U.S. Ambassador to Poland, Zygmunt Frankiewicz, President of the city Gliwice, Sławomir Majman, President of the Board of PAIiIZ, Marek Łyżwa, Member of the Board of PAIiIZ, as well as European, Polish and regional journalists. Opel Cascada is the first soft top convertible in the history of post-war Polish automotive industry. That sport compact

convertible’s construction consists of an unusual chassis, which requires exceptional precision and quality during the production process. Launching the production of Cascada in Gliwice, after two years of preparation, cost EUR 55 million. The plant was expanded by more than 5,600 sqm. The new Cascada will be available at dealers in April.

General Motors Manufacturing Poland Car Factory in Gliwice continues its ambitious investment program and despite the crisis in European automotive sector, General Motors has invested EUR 900 million. This keeps the production and development of cooperation with numerous (over 100) suppliers in the country. The success in drawing the new investment helped to maintain the employment at the level of 2800 workers (end of 2012).

GMMP Car Factory is the biggest investment project in Katowice Special Economic Zone. Approximately 97%-98% of its production is exported, which according to the Central Statistical Office (GUS) in 2010, accounted for about 1% of the total national exports. In addition to the very high volume of sales in international markets, a positive impact on the development of the Polish economy has been GMMP’s contribution to the promotion of Poland as an investor-friendly country. n

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US-based Hutchinson expands in Poland US industrial group Hutchinson is planning to expand its production capacity for car body seals at its plant in the Lodz special economic zone. The company, part of the Total Group, intends to introduce several new manufacturing lines creating 250 new jobs through an investment of €10m.

The project investment is expected to be completed by the end of December 2015, according to PAlilZ, the Polish information and foreign investment agency.

Hutchinson Poland operates two plants in Lodz as well as others in Zywiec and Bielsko-Biala in Poland providing components chiefly for the automotive industry.

In Zywiec, the company makes pipe products for vehicle fuel lines, air transfer and engine cooling ducts.

The 150-year-old US group, with its European base in Paris, is a global specialist in elastomer processing. It employs

Middle East family investors eye east Europe bargains

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Wealthy families and individuals from the Middle East are eyeing property in central and eastern Europe as depressed prices for top assets create an opportunity for those ready to take on more risk, according to UKbased investment manager Chayton Capital.

Mid East-based family offices have moved into cities like Warsaw and Prague in search of higher returns, said David Allen, Head of Real Estate and Portfolio Management (Europe) for Chayton Capital, which manages some €300 million in CEE and Africa. He told PIE on the sidelines of a roundtable organised by the Arab Financial Forum and law firm Squire Sanders in March: “It is the moment to be buying in the next year because it’s a time when you can get a good deal. We believe you can buy and wait for prices to pick up.”

Despite CEE economies growing by 2.6% in 2012, outperforming the rest of Europe, which shrank by 0.3% last year, much overseas capital stopped flowing into the region and concentrated on chasing the biggest and best properties in northern Europe. There was a 25% drop in real estate investment to €7.7 billion last year, including in Poland, seen by many as the strongest country in the region. Hungary showed the largest fall, to just €121m from €617m in 2011. Allen believes that yields on prime office property in Bucharest and Budapest, currently 8.25% and

nearly 26,000 in Europe, North and South America and runs 119 plants worldwide.

Hutchinson serves major air, land and marine transport groups through its four

dedicated business areas including vibration, acoustic and thermal insulation; sealing systems; fluid transfer systems and transmission and mobility systems. n

7.5% respectively, will move closer to those of Warsaw at 6.25% as those cities attract more investment now. “There is going to be yield compression in Budapest and Bucharest,” he said.

Few of the largest Middle Eastern sovereign wealth investors have been drawn to CEE for large commercial property deals yet, the forum concluded. However, Jeffrey McGehee, partner based at Squire Sanders based in Prague, said these investors could be attracted to luxury hotel assets which are selling relatively cheaply. Sovereign wealth funds have long been attracted to such trophy assets, with Qatar Holding recently buying four French luxury hotels from US-based private equity group Starwood Capital for €700m-€800m. n

To replace the image of “the city of holy tower” with the image of a thriving economic and academic center with excellent location”, highlighted Krzysztof Matyjaszczyk, President of Częstochowa.

The total value of the Częstochowa promotional project is PLN 1.5 million pln. Apart from business meetings and trade fairs, the city has produced commercials and folders.

And what is the city promoting specfically?

“What nature and history gave us, that is a great location on the communication map, global recognition and well-educated, yet relatively inexpensive personnel plus a range of facilities for investors and entrepreneurs.

A unique nationwide property tax relief system, attractive land and investment projects”, according to the city mayor.

Investment offers include well-prepared “greenfields” situated close to the planned interchanges, more than 200 hectares of brownfield sites, the modern construction project of Exhibition and Conference Centre and leisure complex in the 42-hectare city park with 3 waterbodies.

Part of the “Invest in Częstochowa” programme is also participation in investment fairs (such as Expo Real in Munich, Provada in Amsterdam, MIPIM Asia in Hong Kong, Cityscape Abu Dhabi), which aims to atrract investors from all over the world. “We have no bias or geographical preferences”, highlighted President Matyjaszczyk. “We are active in the Asian, Arab, European and American markets, and investors from China, England and Brazil are warmly welcomed as well.” n

Częstochowa spends 1.5 million PLN to promote “Invest in Czestochowa” Beginning with an October 2012 road show for economic journalists, the campaign “Invest in Czestochowa” finishes in April.

The main aim is to present economic advantages and investment offer of the city.

The city has been communicating with developers, construction firms, financial institutions and intermediary companies.

“Meetings are also part of the struggle for change in the perception of Częstochowa.

April 2013

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BASF starts huge factory The cornerstone was officially laid for the construction of Europe’s largest factory of BASF catalysts on March 14, 2013, in Środa Śląska. In the first stage of the construction of the automobile catalytic converters plant, which operates in the Special Economic Zone near Wrocław, BASF will invest about EUR 90 million.

Production at the new plant will begin in the first quarter of 2014. The factory with a total area of 40,000 sqm will be the largest BASF factory in Europe. The total investment amounts approximately EUR 150 million. In the factory, which ultimately will employ 400 people, will be 10 production lines to reach full capacity by 2016.

The new plant in Środa Śląska will produce modern systems to reduce vehicle exhaust such as SCR catalysts (Selective Catalytic Reduction, SCR) and particulate filters for diesel cars. In addition, at the premises will be located a research laboratory and manufacturing of automotive catalytic destruction of ozone of Premair ® brand. n

Aluminum firms sets up in Lębork Alteams Group, the world leader manufacturer of aluminium components for communication networks and mechatronics, will locate its new factory in Lębork in the Pomerania region. Targeted net sales after a few years is expected to reach EUR 30 million a year employing 200-300 people.

Total investment will be around EUR 15 million. The factory will be set up within the first half of 2013 and Alteams’s objective is to be on-line by summer 2013.

Alteams Group has manufacturing locations in China and India to serve the Asian market as well as in Finland for the Scandinavian market. To improve support in Europe the company has made the decision to establish a high pressure die casting (HPDC) factory in Poland. This step is to strengthen Alteams’s global presence and improve the company’s competitiveness as a local supplier in the European market.

“One of the main cornerstones in Alteams Group strategy is to be a ‘Global Partner with local commitment’ serving our customers. In practice, we wish to support our customers

2013 April

wherever they need aluminum castings. Our customers of Communication Networks, in particular, have relocated their manufacturing operations closer to their major markets.

At the same time, there is increased demand for a close-by local supply chain serving these areas. Local presence is necessary to provide increased flexibility, shorter lead times, and lower total cost”, says Asko Nevala, the President of Alteams Group.

In Lębork Alteams Group will produce assembly ready aluminium casting components for communication networks equipment and for other advanced applications.

Customers for these high tech components are companies like Ericsson and NSN. Most of the production done in Lębork will be exported but there will be deliveries to EMS companies in Poland too.

Poland was chosen as the right location with regard to Alteams’s European customer base. Additionally cost competitiveness, availability of technical resources and local supplier network e.g. for electrolytic plating were important factors in this decision.

“Recent reports on the world manufacturing trends show that more and more European companies tend to choose near shore locations for their new projects. Local suppliers, high effectiveness, short delivery times, proximity to customers and end markets - these are the factors that encourage key decision makers from Western Europe to locate their manufacturing projects in Central and Eastern Europe. The investment of Alteams Group is a perfect example of this trend. And I am very glad that Pomerania is a part of it”, said Mieczysław Struk, the Marshal of the Pomorskie Voivodeship.

Alteams was supported by Invest in Pomerania. The initiative helped the investor at site selection process and facilitated contact with local authorities. In order to convince Alteams to stay and invest in Lębork, the city authorities passed on indispensible regulations to exempt from property tax the buildings where new jobs should be created.

“The project is a big chance for Lębork as it shall activate the local labour market.

Alteams is another foreign investor that has appreciated our town and I believe that not the last one “, adds Witold Namyślak, the Mayor of Lębork. n

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Poland unsure about its energy mix Speakers at a conference held recently in Warsaw criticised EU energy policies especially those favouring expensive green energy, but also admitted that the country was not sure what kind of energy mix it wants, according to EurActiv Poland.

The topic of the symposium, which took place on 18 March, was “The future of energy production in the Polish chemical industry”. It was organised by EurActiv.pl in cooperation with the Polish Chamber of Chemical Industry and the Information Office of the European Parliament in Poland.

William Garcia, director of the Energy, HSE and Logistics programme at the European Chemical Industry Council (Cefic), said that this branch of industry was responsible for 1.1% of European GDP, with 1.2 million people directly employed.

Indirectly, this number rises to 4.5 million, he added.

The chemical industry is responsible for 30% of industrial energy consumption, which equals 10% of the total EU consumption, Garcia said. That is why the chemical industry representatives were interested in the steps taken by the European Union in terms of energy and climate legislation. Garcia expressed his concern about what he called a growing gap in gas prices between the United States and EU countries which causes, among others, the rise in prices of ethylene, widely used in the chemical industry.

shale gas policy, Rudka announced that the Commission would unveil its orientations by November. For this purpose, the review of legislation of the eight countries most interested in exploration of shale gas deposits has been commissioned, he said.

Criticism of EU Policy Krzysztof Żmijewski, secretary-general of the Social Council for the Development of Low-Carbon Economy, criticised the EU what he called his lack of action in terms of building new interconnectors, adding that these weaknesses were used by other players, such as Russia.

Another problem he said was the project of ‘smart grids’, Żmijewski said, adding that their implementation stopped at the stage of automatic meter reading (AMR) system. At this stage “smart grids are not too smart”, he said.

Wojciech Lubiewa-Wieleżyński, president of the Polish Chamber of Chemical

in the EU are expected to grow and this is a threat,” he said.

He was supported by Grzegorz Kozakowski from Polish energy company Orlen, who listed some of what he said were the shortcomings of climate policy, such as biofuels or carbon capture and storage (CCS) technology.

Andrzej Szczęśniak, an expert on fuel markets, argued that the EU would not become competitive because, he said, it does not have the resources. He also advised caution with regard to LNG imports from the United States, saying that the costs of transport could make it less competitive than generally assumed.

Polish case Elżbieta Wróblewska from the Department of Energy of the Ministry of Economy admitted that the aims of the Polish energy policy were not always the same as the European priorities.

EU perspective on energy market

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MEP Konrad Szymański spoke in favour of gas import diversification and development of shale gas. Szymański said a “significant change” was needed in the balance between local resources and imports, with unconventional gas should play an important role there. However, he said environmental issues could limit the profitability of these investments. Another important point which he singled out was the development of liquid natural gas technology.

Szymański called the “tightening” of the climate policy “a sign of disloyalty with the new member states”. He said he believed that actions such as suspension of ETS auctioning will result in the loss of European competitiveness in the face of cheaper energy prices in Russia or the United States.

This would lead to the transfer of investment capital away from Europe, he said.

The European Commission positions were presented by Andrzej Rudka from DG Enterprise and Industry. In terms of

Industry, regretted what he called the Commission’s unwillingness to implement the proposals of the chemical industry, such as logistical integration and taking the type of fuel into account in case of indirect emissions. Garcia called “illogical” the fact that companies will have to pay more for energy just because it is ecological. He argued that this would limit the investment potential of the sector, pose a threat in terms of competitiveness and lead to moving production outside the EU. “To grow, you need energy – in this case the cheapest energy possible. Energy prices

“There is no reason to increase the [climate change] reduction target,” she argued, referring to the uncertain international conditions in the perspective of the agreement which is to be adopted in 2015. Wróblewska presented a long list of problems that the Polish energy sector has to tackle. Among these, she listed the increased import of coal, the lack of perspective for exploring new lignite deposits caused by climate targets and the distant projections of shale gas exploration.

Wojciech Stępniewski, expert of the Climate Coalition, criticised the lack of

April 2013

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10 billion PLN Coal-gen investment needed for energy security The largest planned power generation investment in Poland, the 9.397 billion pln project to build two 900 MWe units at the Opole hard coal-fired plant, is necessary for the country’s energy security, the Treasury Ministry, Mikolaj Budzanowski, said in late March. “Electrical energy from units 5 and 6 will serve to secure Poland’s energy security, especially in the southwestern region of the country,” Budzanowski wrote in response to a parliamentary question published on the parliament’s website. Budzanowski’s comments come amid market speculation that the owner of Opole – Poland’s largest power company, Polska Grupa Energetyczna (PGE) -- is considering scrapping the investment because it would be unprofitable in the current macroeconomic environment. PGE’s CEO, Krzysztof Kilian, announced recently the company is revising its investment strategy and will publish it in the next few weeks. PGE has faced protracted legal challenges to the investment from environmental groups but a court ruled last month that the project’s environmental permit is valid. In February

legal framework. Companies wait and do not invest which is dangerous, he said, bearing in mind that the vision of a power deficit in 2015 looms over the horizon. To prevent this from happening, energy such as photovoltaic power plants should be promoted, he said.

This view was supported by Marcello Deplano, managing director of Relight CEE. “Investors can leave forever”, he warned.

“Expensive photovoltaic energy is a myth,” said Stanisław Pietruszko, head of the Polish Photovoltaic Association. He referred to the report on the development of energy market, published by Shell. In 2040 photovoltaic energy (PV) will become the fourth energy generation source (now it is thirteenth) – behind oil, gas and coal. In 2060 40% of energy will be generated in this way, making PV the biggest source.

Photovoltaic power is expected to increase from 70 GW in 2011 to 20000 GW in 2050.

“We are not sure what energy mix we want”, said Pietruszko, referring to Poland’s indecision over the issue. Żmijewski also expressed his support for PV. He stressed that Poland had the right conditions to develop it and greater potential than Great Britain; however, it is Great Britain that invests more in this technology, he said. n

2013 April

last year PGE signed a conditional EPC contract with a consortium led by Polish boiler maker, Rafako, to build units 5 and 6 at the hard coal-fired plant in Opole. The

Up, up and away Poland’s fast-growing aviation sector was the subject of PAIZ’s late-March conference. Speakers boasted of Poland’s highlyeducated engineers, suppliers, and support and experience in the aviation industry.

“In recent years, we have witnessed Poland becoming a sub-supplier of all that is necesarry for the global aviation industry”, said President Sławomir Majman.

“Between 2007 and 2012, PAIiIZ closed 8 foreign investments in the aviation sector with a total value of EUR 187 million, which created 1,268 new jobs”, said Adam Malecki, Deputy Director of the Foreign Investment Department. “It would seem that it is not much, but it must be remembered that the projects in the aviation industry represent a small percentage, around 1% of all investments in the world, and Poland is one of the leaders in this respect”.

According to FDI Intelligence, Poland was - in 2011 - the sixth best location for investment in aviation in Europe.

“Currently, in the Agency’s portfolio are 4 aviation investments - with about 400 jobs that could come with it”, said President Majman. Wojciech Łuczak, Vice President of “Altair” Aviation Agency, sees the attractiveness of Poland to the aviation sector in good preparation of the

investment will more than double the plant’s capacity to 3,332 MW. PGE had planned to commission unit 5 in the fourth quarter of 2016 and unit 6 in 2017. n

modernization programs as well as human resources. “The aviation industry requires highly specialized staff. The staff does not grow on trees. This staff needs to be properly educated”, he said.

Thomas Krążyński - General Director of VacAreo Kalisz - said that while at the beginning the plant manufactured according to the Canadian technology, now uses its own solutions and technical vision. “Aviation is a long-term process of building structures and links between business, universities and suppliers. We have built a structure that allows to create final products: from research through development of technologies to building the engine”, he said.

Paweł Poncyliusz, Board Member, AvioPolska announced that the company plans further investments in Poland. “Avio has decided to invest in Poland because it comes from a Fiat family, so the company followed the Italian investments in the automotive sector. Silesia has a lot of competent engineering staff, communicating in foreign languages, including Italian, which could be adapted to Avio technology products.”

“All of Poland, not only the Aviation Valley, has a chance to become a leader in the aviation sector in Europe”, said Ivan Valcuende, Board Member, EADS PZL Warszawa-Okęcie. n

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Kraków Krakow arts centre wins Architizer award Krakow’s newly-opened Malopolska Garden of Arts has won a public prize in the international awards of leading online architectural source Architizer. The Malopolska Garden of Arts, which was one of five international finalists in the category for Theatres and Performing Arts Centres, was designed by Krakow’s Ingarden and Ewy office.

One of very few contemporary buildings in Krakow’s historic centre, the Garden of Arts includes a library, a cinema and above all a performance hall that can be adapted for theatrical performances, concerts and other events. Speaking to Polish Radio’s English Section, chief architect Krzysztof Ingarden had noted that convincing Krakow’s authorities to back the design had not been easy.

“It took a lot of time to show and prove that our building – even though it is very contemporary – is at the same time careful about history, that it creates some kind of dialogue with history” he said. Meanwhile, the jury prize in Architzer’s Theatres and Performing Arts Centres category went to China’s Dalian International Conference

Eastern Poland Kielce in the centre of attention of the outsourcing sector

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The most important representatives of the dynamically developing sector of Business Process Outsourcing are invited by City of Kielce and Deloitte to come to Kielce on 4th and 5th of April. Tey will participate in “Apetite for outsourcing. Development perspectives for BPO centres in Kielce and other cities of Eastern Poland”. They will also have a chance of visiting business locations of the city that are significant for BPO sector.

BPO (Business Process Outsourcing) has become an essential factor for the growth of local economies, which is noticeable in the fact that more or less 100,000 of people find jobs in BPO centres. The number is considered to rise by another 20,000 by the end of the year.

How many of those people will be related to investments in Kielce and other cities of Eastern Poland (Olsztyn, Białystok, Lublin and Rzeszów among others)? What do investors expect from local governments? Which specialization is each localization famous for? How are they perceived outside of the region? How can local

Centre, designed by Austrian firm Coop Himmelblau.

“The mission of the Architizer A+ Awards is to remind everyone in the world that they are fans of architecture, even if they don’t realize it,” a statement released on the web site enthused. “This year’s winners make our job easy. They are projects where noble ambitions match their formal sophistication – they represent the best architecture from across the globe.”

The awards will be presented in New York on 16 May, covering 87 buildings whittled down from submissions from over 100 countries.

Source: Polskie Radio

Alitalia returns to the market from Rome Fiumicino to Kraków

communities benefit from BPO centres development? The two-day long enevt in Kielce, that will become Poland’s BPO centre for this period, is supposed to answer these and many other questions.

The meeting be opened President of Kielce, Wojciech Lubawski and Agnieszka Wojnarowska, Director of the Department of Regional Development PAIiIZ. Paweł Panczyj, the managing director of ABSL (Association of Business Service Leaders) which associates biggest sector’s investors in Poland, i.e. IBM, HP, MAN, P&G, Infosys, Shell or Capgemini, will be the special guest of the conference.

The value of the investments planned for 2011-2014 is over two billion zlotys.

Financed from the EU funds as well as from loan resources (around 320 million zlotys), these investments are, inter alia, construction of the Lublin Airport, of ul. Mełgiewska, ul. Zelwerowicza, ul.

Koncertowa, ul. Filaretów and ul. Grygowej, modernisation of al. Solidarności till the „Dąbrowica” interchange, revitalisation of the Cultural Centre and renovation of the Teatr Stary. At the end of 2012 (i.e. after two years of Mayor Mr Krzysztof Żuk’s term), the city’s accumulated debt amounted to around 887 million zlotys. In 2011-2012, the city took a loan of approximately 210 million zlotys to finance capital expenditures of over 760 million zlotys.

This means that the incurred debt enables the city to finance investments and, in the form of own contribution, to contract EU funds (over 335 million zlotys entered into the budget within this period). In this term, Lublin carries out projects worth in total, involving EU funds, around 1.3 billion zlotys (signed agreements). 2012 capital expenditures per capita were 1303 zlotys, which means an approximately double increase of expenditures in comparison to 2010 when their value per capita was 637 zlotys. n

Lublin talks up its 1.3 billion pln investment plans

Mr Krzysztof Żuk, Mayor City of Lublin

Alitalia returned to Kraków on 25 March, when it inaugurated thrice-weekly services from its Poland’s second-largest airport, Kraków was previously served by the Italian carrier from Milan Malpensa between 2005 and 2008. Alitalia then discontinued operations on the route following the decision to close its Milan hub. Kraków now returns to Alitalia’s network as its second destination in the country (the other one being Warsaw, which is operated with five weekly services). n

April 2013

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Gdańsk Intermodal at AmberExpo On April 18th at the AmberExpo Exhibition & Congress Center in Gdansk, Polish intermodal largest event of the year will be held - FRACHT 2013 Intermodal Transport Forum. PAIiIZ took the honorary patronage of the event. Poland is one of the largest countries in the European Union. Occupies leading position in the list of countries in terms of the length of roads, railway lines, as well as the volume of carriage. Despite this, the share of intermodal transport in our country still can not exceed the level of a few percent of the total transported cargo.

By 2020, a dynamic development of intermodal transport is forecasted.

FREIGHT 2013 Forum through exchange of opinions between representatives of the intermodal chain is aimed at optimum use of the opportunity that comes a chance for business operators.

FREIGHT 2013 will answer questions: Whether intermodal transport can count on support from the state? What is the longterm strategy of the state in issues of support for environmentally friendly transportation forms? What are the directions of development of land and marine container terminals? Do terminals meet the market demand? Whether PKP PLK SA have a chance get closer to the expectations of carriers in terms of rail infrastructure? What are customers’ expectations on intermodal operators, terminals and carriers?

FRACHT Intermodal Transport Forum 2013 is addressed to following

City Investment News representatives: local authorities, sea ports, marine terminals, land terminals, intermodal operators, railway carriers, forwarding agents, public institutions, shipowners, academia, companies carrying cargo in containers on territory of Poland.

Participation in the FRACHT 2013 Forum is free of charge. Details of events available on www.fracht2013.pl.

DCT, Port of Gdansk Ink Port Development Deal DCT Gdansk informs that last Tuesday, in the presence of many renown guests, authorities of DCT and The Port of Gdansk Authority signed an agreement which guarantees the possibility of building a new investment of the company, DCT 2 container terminal.

The agreement signed on 19.03.2013 in Arthur’s Court in Gdansk is a formal continuation of a lease agreement signed on 27.01.2013. Signing of this document should be perceived as a grand opportunity for the Port of Gdansk, city of Gdansk, the region of Pomerania as well as Poland and DCT company.

As a result of the agreement with Port of Gdansk, DCT container terminal is at next significant step in the company’s development.

‘Our existing terminal has always been considered by DCT Gdansk as the beginning of a bigger operation. Thanks to DCT 2 we now have the opportunity to really offer even better facilities to answer to our vocation of deep sea hub for the Baltic Sea. More capacity combined with even higher productivity is our ultimate goal to satisfy

our clients’ – comments Capt. Jedrzej M. Mierzewski, Chief Operations Officer.

Design and adjustments employed in creation of DCT 2 will enable it to provide service to greatest container vessels of the world, released by shipyards in the Far East, or units which are currently being designed.

According to the plans, the draught of DCT 2 will be 16.5 meters, with 600 meters of the length of the quay. The top service at the terminal will be provided by 7 SuperPost-Panamax gantry cranes with overhang of 25 rows of containers.

The target annual capacity of DCT 2 terminal is estimated to be 2.5 million TEU. This, together with DCT terminal, will compose up to 4 million TEU annual handling capacity once the terminal is fully operational in 2016.

‘Although the fact of signing of the agreement with Port of Gdansk Authority is of profound importance to DCT company, this milestone should be perceived as a beginning to even harder and more demanding work during next stages of the development of the project – emphasizes Adam Zolnowski – CFO of DCT Gdansk.

Erecting DCT 2 will result in grand development possibilities and favorable conditions in the region of Pomerania and Poland. Investments in infrastructure, employment options of up to 1500 direct workplaces, development of the region of Pomerania and tangible profits for the economy of Poland are just some of the benefits which result from the finalization of the project of DCT 2.

Bayer launches shared service centre in Gdansk Bayer AG, one of the world’s leading, innovative companies in the healthcare and medical products industry, on Tuesday inaugurated a shared service centre in Gdansk, Poland. The facility will provide finance and accounting services to the group’s companies in 20 countries, mainly in Europe. At present the Gdansk unit employs 60 people and serves Bayer operations in Poland, Hungary, the Czech Republic, and Slovakia. In April the list of countries will grow to include Romania and Bulgaria, and by the end of 2015 it will also cover Germany, the Scandinavia, Ukraine, Russia, or Kazakhstan, among other countries, with staff levels expected to reach 200, the company announced.

Bayer selected Gdansk because of its rich pool of well-educated workers, a large supply of modern office space, supportive local authorities, and high quality of life, the company said. n

2013 April

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City Investment News

Poznań Rule Financial opens Poznan development centre Rule Financial, an independent provider of business consultancy, IT consultancy and IT services to the global investment banking community, announced further expansion in Poland, with the opening of a new development centre in Poznan. In response to increasing client demand for complex systems development and integration, with a combination of onshore and nearshore delivery services, Rule Financial has

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committed to building a development centre within the iconic ‘Okrąglak’ building in Poznań, with the intention to grow the Poznań team to over 400 members of staff.

The recruitment drive in Poland continues at Rule Financial locations in both Łódź and Poznań, with strong Technical Leads, Java, .Net (WPF) and HTML5 / Javascript developers being particularly sought after.

In addition, building on the success of its global graduate programme, Rule Financial in Poland continues to expand the programme with local universities to provide key opportunities for new graduates.

Commenting on the drive behind the new expansion in Poznań, Chris Potts, CEO of Rule Financial, said; “Our investment banking clients continue to be impressed with the quality of the services we deliver from Poland and, as a result, they have trusted us with a number of new large business-critical projects, contributing to our excellent sales performance in the last 6 months. This has led to significant growth in our business in Poland, which in

turn means that we are now able to offer scalable, high-quality delivery capabilities for specialist areas of investment banking, providing the operational efficiency and flexibility that is so crucial for our clients”.

Piotr Kania, Country Manager for Rule Financial in Poland said: “Rule Financial has a long and successful history of operating from Łódź, and we recognised the need to be able to scale our operation even further as demand for resources continues to grow. Opening a new centre in Poznań provides us with access to a whole new pool of talented individuals that we hope will seek to join us to develop their careers in

Pull & Bear, Stradivarius, Terranova, Rossmann, Douglas, Superpharm, Saturn, Piotr i Pawel, Toys R Us, CCC, Deichmann, Carry, and Centro amongst others. This will be the first Toys R Us store to open in Poznan.

A future third phase is planned on the site of the old train station which will include conference, office, and hotel facilities. The work carried out included the construction of 2.5 kilometers of construction site access roads, the creation of an underground passage for pedestrians and cyclists, and the construction of a new road system around the Integrated

IT, combined with experience of working with the leading global investment banks and other financial institutions”.

Rule Financial is a leading provider of IT services for global financial institutions; both the Łódź and Poznań offices design, create and support complex IT systems for global investment banks and other financial institutions.

Transport Centre. A three-storey car park is near completion.

Around 1,000 employees of 25 companies were involved in the construction process including tPekabex SA, Technobud New Sacz Sp. Ltd., Awbud SA, SA GPBP Gliwice, Ekotechnika Plus Sp. Ltd., Zeman HDF Sp. of o.o., KS Hydyk SA, USP Maciej Gajdzinski, Skabe Sp. Ltd and Momplex Bud Schindler Poland. Árpád Török, CEO of TriGranit, said: “The topping out ceremony of the shopping and entertainment centre, offering 250 different shops and services, strongly underlines that Poland has always been our flagship destination for our property development activity. The value of our investments in Poland, have exceeded ?1 billion and the total completed development area is over 500,000 m². We bring our 15-year expertise and our long-term commitment to Poland, and I’m sure this new commercial and transportation centre will further strengthen the dynamic development of the city and the country, as well.” n

Europa Capital & TriGranit’s Poznan City Center tops out Europa Capital LLP, Trigranit Development Corporation and PKP SA celebrate the completion of the external structure of Poznan City Centre, their new shopping centre and transport hub, only 10 months after the opening of the first phase, 6,000 m², Poznan Glówny Railway Station. The official opening of the city centre shopping centre is scheduled for the fourth quarter of 2013. 70% of the 58,000 m² project has already been leased to retailers such as H&M, TK Maxx, Cubus, KappAhl, Reserved, Mohito, House, Cropp, Bershka,

April 2013

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City Investment News

Wroclaw

four-flights-a-week to daily last month, followed now with the new contact centre opening, further demonstrating the airline’s commitment to one of its newest markets.

Qatar Airways opens new European Customer Contact Centre in Wroclaw Qatar Airways has expanded operations in Poland with the opening of a new centralised European Customer Contact Centre creating over 100 new jobs. The city of Wroclaw was chosen as the location for the new facility due to the high number of young Poles with multi-lingual skills.

The Contact Centre is responsible for handling enquiries from customers across key European markets, a region which represents over 25% of the airline’s global network of 125 destinations.

The Wroclaw opening was attended by the State of Qatar’s Ambassador to Poland, His Excellency Hadi Nasser Al Hajri; Poland’s Ambassador to Qatar, His Excellency Robert Rostek; the Mayor of Wroclaw, Rafal Dutkiewicz; together with business leaders and local media.

Since launching scheduled flights from Doha to Poland’s capital city of Warsaw four months ago, Qatar Airways has rapidly grown its presence in the country. The route was upgraded from

Qatar Airways Chief Executive Officer Akbar Al Baker said: “It’s been an incredible few months for us in Poland with so much activity in such a short space of time that has included winning a few awards along the way for our successful operations in the country. “Our new European Customer Contact Centre is designed to handle a range of customer services such as reservations, ticketing and other related enquiries. The amount of support we have received from the Polish authorities, including the trade development agency in

Wroclaw, to open the Contact Centre here has been wonderful. The high level of language skills among young Poles proved to be a decisive factor in us choosing to base our new centralised customer operations in Wroclaw.

“The combination of state-of-the-art technology and professional services meets our customers’ expectations for convenient, quick and easy access to our products and services. We entered the Polish market last December with scheduled flights because of the huge potential we saw in serving the local market with long-haul travel to the Middle East and beyond across Asia Pacific. This is a dynamic market and we are delighted to extend our operations further with the new Customer Contact Centre.”

Qatar Airways Vice President Customer Contact Centres, Thomas Bartsch, added: “Our commitment to a motivated and passionate workforce will directly translate into a high level of service our customers have come to expect from Qatar Airways.

The Contact Centre offers an outstanding work environment and we expect this will serve as a catalyst for economic growth, job creation and a great boost to the Polish economy.” n

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2013 April

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Chambers of Commerce News

Australia Horse race track buys Australian Polish horse racing enthusiasts can now observe renowned Australian technology in action during the upcoming horse racing season starting on the 27th of April 2013 in two horse racing tracks in Poland. Steriline Racing, the world’s leading manufacturer of a wide range of racing industry products from South Australia, has successfully delivered a 12 and 8 stall starting gate to the Warsaw Race Track “Sluzewiec”. This is the second starting gate delivered to Poland by Steriline Racing. The previous gate was delivered in 2004 and is still fully operational and will now be used in Sopot, the second largest horse racing centre in Poland.

The Warsaw race track management has repeatedly underlined the high quality and durability of Steriline products.

The positive opinion and appreciation of the products’ reliability has been a significant factor leading to the purchasing of the new gates. Since 1992, Steriline Racing has grown to become the world’s leading manufacturer of starting gates and running rail for the horse and dog racing industry.

New Trade Commissioner in town The Australian Trade Commission – Austrade – warmly welcomes its newest member to its team in Europe. Steve Rank,

Canada BlackBerry Z10 launch in Poland

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On March 26th the Canadian Embassy, designed by Polish-Canadian architecture Wojtek Gorczyński, was a scene of an unusual event – the official launch of all new BlackBerry Z10 smartphone in Poland. The BlackBerry Z10 is the first smartphone powered by BlackBerry 10, the re-designed, re-engineered, and re-invented BlackBerry platform. The launch was attended by media and the representatives of telecom industry in Poland, who had the possibility of receiving a demonstration of the powerful new smartphone and the information about BlackBerry’s expansion plans in Poland. As Olivier Sauquet, Regional Director for Central Europe North, said thanking Madame Ambassador Alexandra Bugailiskis: “BlackBerry is a very proud Canadian company and takes great pride in our business in Poland and internds to maximize the partnership of industry and

Senior Trade Commissioner – Central Europe will head Austrade’s teams in Western and Central Europe, to attract foreign direct investment into Australia, support Australian companies to grow their business in Europe and promote Australia’s international education sector. Steve is responsible for the management of Austrade’s business development and marketing strategies in Central Europe, from the Baltic Sea to the Balkans, coordinated through offices in Warsaw and Prague.

Publishing in CEE Australian Trade Commission (Austrade), in partnership with the Australian Publishers’ Association, hosted an information session on publishing

innovation between our two countries.”

The event was the biggest BlackBerry launch in history – in Poland the smartphone will be available from all the main carriers and Polish customers will be able to choose from the variety of Polish applications designed especially for them.

AECOM continues expansion in new headquarters AECOM moved to new offices at Ambassador, an A Class office building, located on ul. Domaniewska, and will occupy an entire floor. This change is a part of the company’s growth strategy which will allow for further expansion on the Polish market. Jarek Karpiejuk, AECOM Country Director for Poland, said: "We have two key focuses - our clients and our staff. In this office we will be able to further increase number of our staff and to efficiently deliver great projects to our clients. For our staff this is a great place to be and work. Having already made its mark in the highways, buildings, oil and gas and environment sectors, AECOM now

opportunities in central and eastern Europe. Austrade Warsaw, presented their findings on trade issues, including: rights sales, market trends, key titles, e-books and digital publishing, and doing business in the region. The presentations also highlighted the economic and cultural importance of Poland and its role as a gateway to the broader region. Thirty of Australia’s leading publishers across Melbourne, Sydney and Adelaide attended the session, including: Random House Australia, RMIT Publishing, Macmillan Education Australia and Allen & Unwin. Representatives from the Australia Council for the Arts, a key financial partner and government collaborator, also attended the briefing. n

has appropriate resources to continue its growth in Poland.”

PJM Shipping in sponsorship deal PJM Shipping and Trading from Szczecin will support the Polish National Team in Grappling during the upcoming World Championships in Grappling, which will take place in London, Ontario, Canada in June 2013. The Championships will be under auspices of FILA, The International Wrestling Body. Grappling is a competition format used by FILA. Also called "submission wrestling" or "submission grappling", this discipline and sport consists of controlling the opponent without using striking, in a standing position or on the ground after a throw. It is a combination of wrestling, judo and brazilian jiu-jitsu.

The Polish athletes will be defending both Team and Individual Titles. PJM Shipping and Trading has been supporting the Team for a couple of years now. PJM is involved in project cargoes logistics, world-wide chartering services, inland transport and port operations. n

April 2013

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Netherlands Grontmij teams up for major Waste-to-energy project

Grontmij Poland has been awarded the full design of a newly to be built Wasteto-Energy facility in Białystok in the north-east of Poland. The main design has to be done within twelve months and the whole service will last until the end of 2015. The project fee for Grontmij will be around EUR 2 million. According to Maciej Chrzanowski, country managing director of Grontmij in Poland: “The production of bio-products, especially from waste, is growing in importance throughout our key European markets and beyond. Growing energy recovery is a positive development as it resolves some of the excess waste issues facing most countries while generating greener, non-fossil fuels to meet an ever-increasing demand for power. This is very much an area where the cooperation of our specialists from Poland and Germany brings huge know-how to the table”.

Chambers of Commerce News companies have decreased than increased their employment level. The survey, which took place in the first two weeks of February, showed that production, sales, administration and customer service are the most affected areas. Nearly one in three companies has reduced their staff while one in four has seen an increase.

The vast majority of employers (72%) who took part in the survey have experienced that the current economic situation in the country has negatively affected their company. Over the last six months, 67% of enterprises have not introduced any changes salary levels. Pay increases have taken place in a quarter of the companies surveyed. Increases were mainly inflationlinked (31%) or did not exceed 5 percent of the existing salary (35%). Despite the current pessimistic situation on the labour market, 48 percent of businesses have felt pressure on salaries from employees, more than in previous years. n

17th edition of the Randstad Survey: companies are hiring fewer people According to the latest ‘Plans of Employers’ suvey by Randstad Research Institute and TNS over the last few months, more

Turkey Istanbul trade fair for Poland PAIZ is organizing economic missions connected with participation in trade fairs in Turkey: Yapi Fuari - Turkeybuild, Istambul, 24-28 April 2013. Trade Yapi Fuari Turkeybuild is the largest international event in the construction industry, not only in Turkey but also in neighboring countries such as the Balkans, North Africa, Middle East. Participation in the project can be subsidized under Submeasure 6.5.2 OP – not to exceed 75% of the costs. Companies interested in obtaining a grant must submit

2013 April

an application directly to the Ministry of Economy, Department of Implementation of Operational Programmes, Plac Trzech Krzyży 3/5, 00-507 Warsaw. Deadline for submitting applications to the Ministry of Economy for events taking place in April and May ends 30 days before the start of the event. For events in September, October and November, the application deadline is 30 June, 2013. Contact for details: agnieszka.schutte@paiz.gov.pl, tel. +48 22 334 98 01. The project is organized in the framework of the system project "Promotion of Polish economy on the international market" (sub-measure 6.5.1 of the EU’s Operational Programme Innovative Economy).

India Eastern Poland in India Manufacturers from the machine-metal and aviation sector of Eastern Poland had a chance to promote their products and services in India in early March.

Promotional event called “Polish Road Show” was organized in close cooperation with PAIiIZ, the Polish Embassy in New Delhi and the Federation of Indian Chambers of Commerce and Industry (FICCI). Business trip included participation in three seminars regarding the investment potential of Poland and Eastern Poland and the possibility of cooperation between Polish and Indian partners and three B2B meetings. Meetings took place in New Delhi, Bangalore and Hyderabad.

During the first seminar (in New Delhi), one of the panelists was President of the NBP- prof. Marek Belka. The Embassy was represented by Piotr Opaliński, Minister-Counsellor - Head of the Political Department in New Delhi.

Subsequent seminars (in Bangalore and Hyderabad) were supported by the presence of Dariusz Bogdan, Undersecretary of State in the Ministry of Economy and Janusz Wach, General Consul of Poland in Mumbai. Mission participants talked also with representatives of Polish companies that have already been cooperating with Indian partners (Bell company, which has moved part of its production to the vicinity of Bangalore) as well as the Indian company Luxus, which produces sliding wardrobes at European standards. One of the main points of the mission was a tour to the production plant of Luxus. n

Eurasia Rail On 7-9 March 2013, Polish railway sector entrepreneurs had the opportunity to promote their products and services in Turkey during the 3rd Rail Transport, Infrastructure and Logistics Fair EURASIA RAIL in Istanbul.

EurasiaRail is designed as a forum for meeting professionals in the rail industry and logistics and rail transport technology. Among the exhibitors were manufacturers of rolling stock, railway systems, lighting and traffic, public transport rail systems, builders of bridges and tunnels, stations and railway infrastructure, railway electrification systems and communications in railway transport, logistics companies and data processing related to rail transport. n

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Chambers of Commerce News

Austria Austrian investments in BPPT On February 26th Mayor of Bydgoszcz Rafał Bruski and the Ambassador of Austria in Poland Dr. Herbert Krauss visited the newly built hall of MMP Neupack Poland in the Industrial and Technological Park of Bydgoszcz.

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MMP Neupack Poland belongs to Austrian company Mayr-Melnhof - one of the largest manufacturers of cardboard packaging in the world. The company is distinguished by its creativity in producing cardboards, which is reflected in a wide range of products.

Mayr-Melnhof Packaging group has two locations in Poland: in the suburbs of Bydgoszcz and in Józefów. As a result of a merger in 2010, branches have been transformed into a new company called MMP Neupack Poland. The Bydgoszcz plant employs nearly three hundred people. The scale of production can be reflected by the fact that one third of paper and cardboard packaging we bring home everyday is made

by MMP Neupack. “Bydgoszcz offers excellent conditions for business development”, said the president of MMP Neupack Poland Johann Taferner.

“And the construction of a new plant, planned to be officially opened on April 18, is the best proof. We want to move the production to a new hall over the next 3-4 weeks.”

On the 3-hectare plot Doka Poland will build a panel of service halls as well as preparation and storage area with a full range of its products. The center provides work opportunities for a team of experienced engineers and sales staff.

“We want to open Doka logistic and maintenance center to support Polish northern region by the next summer”, said Wojciech Schefke, CEO of Doka Poland. “It will be our base for Wielkopolska, Szczecin and Gdańsk and the north-eastern region of Poland. We plan to create jobs for about 70-80 people here”, said Schefke.

He also emphasized that completion of the land purchase in BPPT was carried out in a very short time, in just about 2.5 months. 50 companies are located in the BBT complex, employing 1,169 people. n

Portugal 5th Anniversary On the 21st March the Polish – Portuguese Chamber of Commerce celebrated its 5th Anniversary. After the General Meeting, the Management Board of the PPCC invited all the Members and Institutional guests to dinner to celebrate the Anniversary. The PPCC 5th Anniversary Dinner included the presence of PPCC Members and institutional

guests, with special participation of H.E. Mr. José Sequeira e Serpa, Ambassador of Portugal in Warsaw, H.E. Mr. Domingos Culolo, Ambasador of Angola in Warsaw and H.E. Mr. Jorge Kadri, Ambassador of Brazil.

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China

France

Międzynarodowe Targi Polska and China Town Travel will again host the annual China Expo Poland Trade Fair,

Speed Business Meeting with the Spanish Chamber

12-14 September 2013 in the MT Poland Trade Fair and Congress Center in Warsaw.

China Expo Poland is Poland’s largest trade fair dedicated entirely for economic cooperation between Poland and China. The purpose is to promote economic exchange and develop direct business relations between Polish and Chinese entrepreneurs.

Three days of events will be accompanied by a number of conferences on effective cooperation with the Chinese. Among China Expo Poland exhibitors are manufacturers and exporters from various regions of China. This year, the range of topics will include: car parts and accessories, motorcycle parts and accessories, lighting, electronics, household equipment. To participate in the event are invited: importers, exporters, investors, manufacturers, wholesalers, retailers as well as people planning to start their own business. n

Representatives of the French and Spanish business communities attended the March 2013 Speed Business Meeting, an event organized by the French Chamber of Commerce three times a year. This type of meeting offers participants a unique place for the presentation of products and services of company, as well as the opportunity to discuss potential collaboration. During the meeting, all participants had the opportunity to present themselves and to listen to each other. The event was attended by more than 100 businessmen representing both small, medium and large enterprises of over 20 areas of business, ranging from building engineering and real estate to career counseling. In 2012 Speed Business Networking Meetings drew more than 270 enterprises.

The formula of event is one of the most appreciated by our Members companies and their Partners. n

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Chambers of Commerce News

Spanish Labor Law The Polish-Spanish Chamber of Commerce, Monereo Meyer & Marinel-lo Abogados legal office and Domański Zakrzewski Palinka legal office organized a Business breakfast entitled “Spanish job market as a direction for Polish entrepreneurs and employees: legal and tax aspects.” Specialists from MMM and DZP presented themes such as the most important changes introduced by the recent reform of the Spanish labor law, the tax situation of Polish employees in Spain and Polish employer tax obligations. Recently, a lot of changes were introduced in Spanish law.

VIPs The Chamber’s Ordinary General Assembly drew most member companies as well as honorary guests: Spanish Ambassador in Poland: HE Agustín Núñez Martinez, Commercial Counselor at the Embassy of Spain, Rocio Frutos Ibor, 1st Counsellor, Head of Trade and Investment Promotion Section of the Polish Embassy in Madrid, Mirosław Węglarczyk, representatives of Ministry of Economy in Poland and Ministry of Foreign Affairs in Poland.

United Kingdom International Personal Finance Secondary listing on Warsaw Stock Exchange International Personal Finance (‘IPF’) was admitted in late March to trade its ordinary shares on the Warsaw Stock Exchange (‘WSE’). BZWBK is the arranger and market makerin Poland and the shares will be listed in the WIG index under the name of Provident (ticker symbol – IPF: PW). This is a secondary listing of IPF shares which will enable Polish investors, particularly pension funds, to invest in the business more easily. No new capital is being raised as part of this listing.

Chief Executive Officer of IPF, Gerard Ryan said: “I’m delighted that we have achieved this secondary listing. We believe it will help attract new shareholders to invest in the Group which is delivering growth in all our markets in Europe and Mexico. It also reflects our confidence in

2013 April

Tarde de Sabores – Evening of Tastes.

The Polish-Spanish Chamber of Commerce in cooperation with our strategic partner Roca and foundation We are Water organized a March special edition of TARDE DE SABORES related to World Water Day. The event was honoured by the presence of the representatives of Embassy of Argentina, Embassy of Ecuador, Embassy of Peru, Embassy of Panama and Embassy of Spain.

Public authorities and our Members showed that they care about the environment and the water resources problem. n

our Polish home credit business which, with 821,000 customers, is a major Polish institution and IPF’s largest market.”

David Parkinson, Country Manager of Provident Polska, added: “I would like to thank all our employees and agents for their significant contribution to the success of the business and today’s admission to the WSE is clear recognition of the progress we have made.”

Accreo Taxand changes its name to Crido Taxand The Polish consulting firm belonging to Taxand has changed its name to Crido Taxand. The company has been operating since 2005, till March 2013 under the name Accreo Taxand. Crido Taxand provides a full range of tax advisory services as well as European advisory services, legal advisory and business consulting services.

Three partners are responsible for the management of Crido Taxand team - Andrzej Puncewicz, founder of Accreo Taxand, Michał Gwizda, Head of European Advisory Services Team, who has won over EUR 900 mln in state aid for Taxand clients since 2006 and Paweł Toński who, over the recent years, has developed our real estate advisory

practice and only last year advised on transactions totalling over EUR 1.5 billion.

FKA advised Telekomunikacja Polska on the acquisition of Datacom Systems FKA Furtek Komosa Aleksandrowicz acted as a legal advisor to Telekomunikacja Polska S.A. (Orange Polska) during the purchase of Datacom System, an IT company specialising in integration services.

In the future it will be merged with Integrated Solutions, a subsidiary of the TPSA group. By way of this acquisition, Integrated Solutions is looking to become one of the top three ICT (information and communication technology solutions) integrators in Poland by 2015.

The team of FKA Furtek Komosa Aleksandrowicz lawyers advising TPSA during this transaction was headed by attorney-at-law Edyta Jusiel, a partner in the firm’s corporate practice. “I am pleased that Telekomunikacja Polska appreciated our M&A advisory competence and experience and invited our team to join the panel of its advisors on this transaction, which was important for the entire group.” commented Edyta Jusiel. n

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Chambers of Commerce News

Gulf States United States Americans at National Stadium

(Saudi, UAE, Qatar, Kuwait)

Saudis in £61.5m bid for Continental Farmers company Continental Farmers, the Aim-quoted agriculture company founded by Scottish farmer Mark Laird, is being taken over in a £61.5 million Middle Eastern deal.

The Aim-quoted company, which owns farming interests in Poland and Ukraine and in which Sir Malcolm Rifkind has a stake, has recommended the bid by Saudi Arabian-based United Farmers Holdings (UFH).

Forfar-based Laird, who founded the company in 1994 and is chief executive, is in line to receive around £4.4m for his stake.

UFH has been set by a consortium including the Saudi royal family as part of a strategy to help secure food supplies for the kingdom. The deal represents a premium of 50 per cent to the closing price in late March.

Continental Farmers produces oil seed rape, sugar beet, potatoes, wheat, and maize. “Under Mark Laird’s leadership, Continental Farmers has developed an outstanding farming platform, which is reflected in the offer that we have received”, said chairman Nick Parker. He said the deal would give the business “access to substantial capital and to the expertise of the members of the consortium in the international agribusiness sector”.

UFH said it planned to retain the current management and staff of Continental Farmers which was set up

by Laird with the backing of a number of Scottish and Irish investors to build up farming interests across western Ukraine and northern Poland which offer relatively low costs and a favourable climate.

Laird, 39, said the company’s strategy of farming a mixed portfolio of crops in different countries had proved effective with overall harvest revenues growing by almost 50 per cent.

Partners in UFH include the Saudi Agricultural and Livestock Investment Company (SALIC), set up in 2011 with the aim of “ensuring abundant food supply for people in Saudi Arabia”. n

The AmCham held its February Business Mixer at the National Stadium in Warsaw

sponsored by Sodexo Poland. It was held at the Platinum Box and was attended by 200 guests.

Irish St Patricks Day with Americans The Irish Chamber and AmCham co-hosted its March business mixer, on the occasion of St. Patricks Day, at the hotel Hyatt.

Including the presence of the Irish and American Ambassadors, the event drew more than 300 people. n

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Ireland St. Patrick’s Charity Foundation Ball 2013 The major fund raising event, amongst the national and international community’s, occurred on Saturday 16th March 2013 with almost 500 attendees. The total funds raised on the evening amounted to 200,000 PLN which will be distributed between various hospitals, Hospices,

Chambers of Commerce News Shelters, Care Groups over the coming months. The foundat ion has been running for over 15 years, and has clearly marked itself out as ‘The Charity Event’ in the social calendar with extraordinary prizes on offer culminating with a 2 week all inclusive holiday in the Seychelles, not to mention the 40 + other prizes given out during the evening. The organizing committee would like, again, to thank the fantastically generous sponsors. Committee members are: Padraic Coll, Niall Leonard, Mike Kenny, Con Murphy and Seamus Pentony. n

ROC Taiwan Trade Mission succeeds for Taiwanese dental device and medical material industry Eleven Taiwanese dental device and medical material companies gathered for a trade mission in Warsaw in March to look for business partners through one-on-one meetings and to build a closer trading partnership between Taiwan and Poland.

This trade mission was led by the Taiwan External Trade Development Council (TAITRI) traveling to Turkey, Poland and Hungary. In Poland, a Taiwan Dentistry Forum was held at Novotel Centrum Hotel in Warsaw on March 4, 2013. Director Chiyoung Chen, Economic Division of Taipei Economic and Cultural Office in Poland, also participated in the opening ceremony and delivered a speech.

The Taiwanese delegated came from the dental industry and they presented a total solution for dental implant, including the implants, crowns, bone graft substitute, dental materials like Bicera, Osterocera, blood pressure meters, glucose meters etc. Their objectives are to promote dental cooperation between Taiwan and Poland as well as enhancing the interchange among dental technology and device by introduction of the current status of Taiwan’s dental industry. n

CEE Outsourcing and Shared Services Awards Gala 6 February, 2014 2013 April

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Business Calendar April 3 April Finnish-Polish Forum Warsaw, Polska Rada Biznesu The main subject of the Forum is „Digital Government” and presenting Finland’s successful experiences in digitizing its governmental and adminstrative processes. Special guests include Michał Boni, Minister of Administration and Digitilization and Krista Kiuru, Minister of Digital Society, Finland. Itella Information, in cooperation with the Finnish Embassy in Poland and the Scandinavian Chamber of Commerce, proposed exchanging experiences in this arena, including E-Invoices and fully-digitizing the government services.

4 April Motor Show Day 2013

9 – 10 April Office Days Warsaw, Expo XXI OfficeDays – Expo for Office furniture, outfitting and supplies, targeting office managers, and those responsible for ordering supplies, as well as developers and owners of offices, architects and interior designers.

luxury vehicles. Organized by magazine publisher FLEET.

17-21 April Fashion Week Poland Lodz

10 – 11 April V Banking Forum Warsaw, Hotel Radisson Blu Invited guests include domestic and international bank executives.

VII National Forum for PublicCompany Managers Wrocław Organized by Forbes magazine.

11 April Poland-Ukraine Gas Conference

FashionPhilosophy Fashion Week Poland is the biggest fashion event in CEE. The event takes place two times a year – spring edition presenting Autumn/Winter trends has been scheduled to take place between the 17th -21st of April 2013 and autumn edition presenting Spring/ Summer trends. www.FashionWeek.pl

Poznań, MTP Annual event promoting new car models and fleet cars. Nearly 30,000 attendees expected.

18 April

4 – 5 April Appetite for Outsourcing Kielce, Kieleckie Centrum Biznesu

Warszawa, Ministry of Economy Former President Aleksander Kwaśniewski will open the conference, followed by an extensive list of VIP speakers, including Janusz Piechociński, Vice Premier and Minister of Economy and Jacek Piechota, president of the Polish-Ukrainian Chamber of Commerce.

17 – 18 April The city of Kielce is gunning for business from the rapidly-growing BPO/Outsourcing sector.

The conference is organized in cooperation with Deloitte and ABSL, with the financial backing of PAIZ”s Eastern Poland promotional funds. Speakers include the president of Kielce Wojciech Lubawski, and Paweł Panczyj, director of Association of Business Service Leaders (ABSL). The organizer is Bluevine Consulting.

9 April

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Poland - India. Perspectives for Economic Development.

Poznań, Hotel Andersia

Moto Idea Wroclaw An aspiring national conference/Expo for the automobile sector, including Fleet Managers.

Attendees include WABCO Vehicle Control Systems, Faurecia Automotive Polska S.A., General Motors Manufacturing Poland, and BASF Polska.

17 April Fleet Derby Warsaw, Autodrom Automobilklubu Polski Targeted at the fleet management sector. Testdrives at the Bemowo airport, with competitions in 16 categories, including new SUVs, vans, pick-ups, minis, cross-overs and premium

Forum Transportu Intermodalnego FRACHT 2013 Gdańsk, Amber Expo Intermodal transport and shipping is the subject of this forum.

Małopolska Commercial Property Forum Kraków Review of the Krakow real estate market and its current trends. Development directions of Kraków business area. Flexible office solutions.

How to increase effectiveness of office space.

And of course: Green solutions in office buildings. Sponsored by the British Polish Chamber of Commerce, and speakers from CBRE, Regus, Nowy Styl group, and Skanska.

19 April Regional Products Fair “Regionalia” Warsaw, MT Polska Supported by the Ministry of Agriculture, the fair will highlight regional foods from Poland and world-wide.

23- 24 April Polski Kongres Gospodarczy 2013 Warsaw, National Stadium (Business Club)

April 2013

www.bizpoland.pl

Business Calendar Held Since 2009, the BBF aims to promote the Baltic Sea as an economic region, in the spirit of the Hanseatic League. www.bbf2013.pl.

25 April India-Poland. BPO conference Bangalore, India www.roadshowpolska.pl

May 7 – 8 May Polish Army - opportunities for businesses Łódź Annual Congress discussing business opportunities within the Polish military sector.

24-25 April

13- 15 May

PSEW Polish Wind conference and Expo The main annual conference and expo for Poland’s wind energy sector. www.psew.pl Poznańskie Dni Przedsiębiorczości Poznań

5th European Economic Congress Katowice The European Economic Congress is a three day long series of debates and meetings, featuring 6,000 guests representing Poland and other European countries. Several hundred speakers contribute to nearly one hundred panel discussions.

24-26 April

14 – 15 May

Baltic Business Forum Świnoujście

IV Economic Innovation Forum Rzeszów

Key subjects are the aviation sector and the European Space Agency.

14 – 16 May Green Power Poznań, MTP All things green and renewable.

16 – 17 May Acting Local, Winning Global 2013 Kraków, Sheraton Hotel This two-day event, organized by ASPIRE, brings together leaders in the shared services, outsourcing & IT space to explore the opportunities and challenges for the industry in the region.

21 May Top10: Markets for Polish Exports 2013 – 2015 Warszawa, Pałac Prymasowski

23 May Forum – The Trio of Economic Cooperation: Poland, Czech and Germany Katowice, Hotel Angelo 4th Annual Emerging European Investment Products Warsaw, Hotel InterContinental

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Events

European Executive Forum

Together with leading figures in business, politics and influential representatives of academic institutions, the Executive Club and Amicus Europae Foundation organized a “European Executive Forum” on topics of leadership and management.

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The Congress started as an initiative for a regular place to meet and exchange knowledge on best practices in business,

and to provide the most current knowledge on leadership. The forum was attended by prominent politicians, business leaders, and gave substantial support to academic institutions such as INSEAD, IESE and the leading Polish universities: Warsaw School of Economics, Kozminski University, Business School of the Technical University of Warsaw, and University of Warsaw.

On behalf of the President of Poland Bronislaw Komorowski, Minister Olgierd Dziekoński read a message to the participants. An active dialogue with the participants was led by prof. Manfred Kets de Vries - of INSEAD, Clinical Professor

of Leadership Development, Director of the Centre for Global Leadership at INSEAD. The Panel entitled “Leadership and leadership historically the future,” moderated by President Kwasniewski, in which sat three Prime Ministers Giuliano Amato - Italy’s Prime Minister in 1992-1993 and 2000-2001, José María Aznar - Prime Minister of Spain in the period 1996-2004, and Jan Krzysztof Bielecki - Chairman of the Economic Council of the Prime Minister and former President – was led by Jacek Krawiec, PKN Orlen, whose opinions in a very interesting way complemented

April 2013

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Events the vision of the leadership shown by the politicians.

On the global context of leadership, a very interesting discussion took place between the moderator prof. Witold Orlowski - Director of the Warsaw University of Technology Business School, and panelists: Olga Grygier-Siddons - President PwC in Poland, Jaroslaw Pietras - Director General of the Council of the European Union, Pedro Pereira da Silva - Jeronimo Martins Group COO, Country Manager for Poland and Portugal and Herbert Wirth - President of the Management Board of KGHM Polish Copper.

The last debate was moderated by President Aleksander Kwasniewski. The composition of the panel: Jan Krzysztof Bielecki - Chairman of the Economic Council of the Prime Minister, Joschka Fischer - Minister of Foreign Affairs of Germany in the years 1998-2005, Alfred Gusenbauer - Chancellor of Austria from 2007-2008, Dr. Jan Kulczyk - Chairman of the Supervisory Board of Kulczyk Investments and prof. Christopher Obłój - Head of the Department of Strategic Management at the University of Warsaw. n

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Events

www.bizpoland.pl

Renewable Energy Green Power On 6-7 March 2013 took place, for the fourth time, International Congress on Renewable Energy Green Power.

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Plenary sessions of the first day of the Congress were devoted mainly to the energy mix for ensuring energy security.

“Determination of such a strategy is extremely important not only for the renewable energy sector, but also for conventional energy, because only a stable and well-instrumented energy policy for the country can be the basis for longterm planning of investments in energy companies “- said prof. Andrzej Radecki, President of the Polish Economic Chamber of Renewable Energy (PIGEO), opening the Congress Green Power.

However, representing the Office of the Polish President, Henryk Wujec noted that “Poland is developing a rational policy to support the development of renewable energy sources, which will provide a boost to increase the share of this form of energy in the total energy consumption in Poland. It should create a legal basis for energy development. Polish economy needs structural modernization in order to become more competitive in Europe.”

In summary proceedings on the first day of the Congress, Chairman of the Program Tomasz Podgajniak said: “Europe is not discussing today whether to develop renewable energy only how to do it most effectively. Many countries have tried different approaches to the problem: thing: a support system must be stable and predictable. I recall that in 2014 we have an obligation to enter the single European market and it will also result in pressure on our prices, oversupply of electricity in Poland and also the possibility of supply of cheap energy from the outside.”

The second day is primarily a presentation of the “Polish know-how” of business in the market for wind energy, biomass and biogas, water, solar, geothermal - valuable knowledge for entrepreneurs operating in the renewable energy sector.

Over 550 participants attended this fourth International Congress of Renewable Energy Green Power 2013. The organizers are: MTP, Reo Foundation, and Polish Economic Chamber of Renewable Energy (PIGEO). n

April 2013

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Events

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2013 April