PU B LISHED SIncE 199 6 No. 10 (217) /2014 :: www.polishmarket.com.pl
INNova TIoN MedIcINe INFRA STRUCTURE finance TourIsM
eNergy Lechosław F.ciupik 94 polish market
Founder and president oF Lfc
© Nyul | Dreamstime.com
Innovation based on well-tried solutions Technical development and demographic changes entail rising requirements as for standard and quality of the places where we live and work. HOCHTIEF Polska responds to new expectations of the client offering a comprehensive execution of general building and civil infrastructure projects. Their constant characteristics are safety, functionality, energy efﬁciency and high architectural standards.
Contact us: HOCHTIEF Polska S.A. tel. +48 22 56 00 800 firstname.lastname@example.org, www.hochtief.pl
October 2014 polish market
Official Tourist Website of Warsaw
www.warsawtour.pl • • • • •
six language versions practical information going out tourist attractions where to stay
Find us: Facebook.com/Warsaw @ewarsaw Instagram.com/fall_in_love_with_warsaw
From The President’s Press Office From The Government Information Centre
Janusz Piechociński, deputy Prime Minister, Minister of the Economy: Strengthening social capital in the business environment is an important challenge Olgierd Dziekoński, Secretary of State in the Office of the President of Poland: Industrial policy - an obligation Unique conditions for investors Iwona Wendel, deputy Minister of Infrastructure and Development: We give priority to innovation
12 15 16 18 20
Lechosław F. Ciupik, DSc, President of the LfC company: Innovation and the joy of recovery
21 22 26
Prof. Michał Szota, DSc, Eng., President of the Presidium of the SPWiR National Council: 8th International Warsaw Invention Show 2014
Marek Michałowski, a former long-standing President of the Polish Association of Construction Employers, President of the Supervisory Board of Budimex SA: The last 25 years mark a historic change
Pioneering implantation of Cochlear MET device
Paweł Pawlewski: Interaction - research, teaching, business Przemysław Gonera, PhD: Shared responsibility awareness
Grupa Azoty - Poland’s biggest chemical group Partycja Zielińska, Vice-President of IDA JSC Board: IDA JSC – new idea for innovation in industry
Leszek Marek Gołąbiecki, President of Unibep: We are well prepared for the future Warsaw is changing for everyone
Innovative like … a Pole!
58 59 60 62
Tourism Logistics Law&Taxes
32 34 36 38 40 43
44 45 46 48 52
The Metro is changing Warsaw We connect people. In a modern way. New priorities for Warsaw 10th International Symposium “Industrial Property in Innovative Economy - From Idea to Profit: How to Build an Innovative Business”
SPIS TREŚC CONTENTS
6 7 8
Patryk Mirecki: 24th Economic Forum in Krynica: With Ukraine and energy security in the background Marek Woszczyk, president of the PGE SA electricity group: Business has to respect the natural environment Polish Renewable Energy Congress Henryk Majchrzak, president of PSE SA: New mechanisms for improving the security of the national power grid Aleksandra Krajewska-Nowak: Enviroment friendly and safe energy Sebastian Bogusławski, president of Eco Sol, Ireneusz Piskorz, president of Sol Produkt, and Sławomir Górecki, vice-president of Eco Sol and Sol Produkt: Wholly Polish technology appreciated High-performance computing in Świerk - how brain becomes mind Jerzy Bojanowicz: Is the debate on the Polish nuclear power plant finally over? Finance Ministry’s analysis Prof. Małgorzata Zaleska, member of the Board of the National Bank of Poland: To be the leader Jacek Socha, vice-president of PriceWaterhouseCoopers Polska: Openness of the Polish economy is most important Prof. Hermann Simon: Everything revolves around price
Anna Stasiak-Apelska: Trademarks - conditions for registration and obtaining protection
66 67 69 70
Wojciech Kozak, Deputy Chairman of the Małopolskie Province: The Małopolskie Province - the tourist heart of Poland
Rafał Szmytke, President of Polish Tourist Organization: Polska. Move Your Imagination The 7th edition of the WorldHotel Fair People with a great potential of knowledge, patriotism and generational wisdom
Prestiżowy ranking polskich przedsiębiorstw
th EDITION OF THE
th EDITION OF THE
THE ROYAL CASTLE IN WARSAW, 7 NOVEMBER 2014
Cultural Monitor Maciej Proliński: Chance of a great come-back for Andrzej Czajkowski Maciej Proliński: Flash of the Invisible... Maciej Proliński: Paderewski’s Tribute to Warsaw. Warsaw’s Tribute to Paderewski Janusz Marynowski, director of the Sinfonia Varsovia Orchestra: Our worldclass orchestra 4th Meat Festival You are what you eat Economic Monitor
Okładka / Cover: Lechosław F. Ciupik Zdjęcia w numerze / Photos on issue: www.shutterstock.com
SPIS TREŚC CONTENTS
Culture Food Industry
72 74 75 76 78 82 84 85
President: Krystyna Woźniak-Trzosek
Writers/Editors: Maciej Proliński, Jan Sosna, Sylwia Wesołowska- Betkier, Grażyna Śleszyńska, Janusz Korzeń, Jerzy Bojanowicz, Janusz Turakiewicz,
Vice - Presidents: Błażej Grabowski, Grażyna Jaskuła
Contributors: Agnieszka Turakiewicz
Address: ul. Elektoralna 13, 00-137 Warszawa, Poland Phone (+48 22) 620 31 42, 652 95 77 Fax (+48 22) 620 31 37 E-mail: email@example.com
Graphic design: Agnieszka Andrzejczak-Charuba, Joanna Wiktoria Grabowska - Lili Projekt
Publisher: Oficyna Wydawnicza RYNEK POLSKI Sp. z o.o. (RYNEK POLSKI Publishers Co. Ltd.)
Editor-in-Chief: Krystyna Woźniak-Trzosek Deputy Editor-in-Chief: Ewelina Janczylik-Foryś firstname.lastname@example.org Marcin Haber email@example.com Managing Editor: Rita Schultz firstname.lastname@example.org
Sales: Phone (+48 22) 620 38 34, 654 95 77 Marianna Dąbkowska email@example.com Natalia Suhoveeva firstname.lastname@example.org
DTP: Lili Projekt project manufacture www.liliprojekt.pl Printing: Zakłady Graficzne TAURUS – Roszkowscy Sp. z o. o., www.drukarniataurus.pl Circulation: 8,000 Oficyna Wydawnicza RYNEK POLSKI Sp. z o.o. Nr KRS 0000080385, Sąd Rejonowy dla m.st. Warszawy XII Wydział Gospodarczy Kapitał zakładowy 80.000,- zł. REGON 011915685, NIP 526-11-62-572 Published articles represent the authors’ personal views only. The Editor and Publisher disclaim any responsibility or liability for their contents. Unso-licited material will not be returned. The editors reserve the right to edit the material for length and content. The editors accept no responsibility what-soever for the content of advertising material. Reproduction of any material from this magazine requires prior written permission from the Publisher.
New deal in Europe
hat next, Poland? What next, Europe? These questions are asked today in a special context of leadership change in Poland and the European Union. Donald Tusk, after seven years in office as head of the Polish government, is taking over the post of president of the European Council from Herman van Rompuy. And Jean-Claude Juncker, who is replacing José Manuel Barroso in the post of president of the European Commission, will be heading a new team of 28 EU commissioners. The leaders of the new Brussels establishment cannot count too much on being able to move along the old ruts moulded by their predecessors. It is true that the Europe 2020 programme adopted in 2010 to support employment, productivity and social cohesion can hardly be questioned because the European Union needs changes in the face of globalization, climate change and population aging. But the financial crisis which began in 2008 undermined the social and economic progress made by EU countries to a much larger extent than initially expected. Although the draconian austerity measures imposed on the countries whose financial equilibrium was disturbed the most restored a relative stability to the euro zone, the financial machinery turned out helpless in restoring economic growth. And without growth it is impossible to solve the problem of unemployment, social adaptation of the young or winning support for further European integration. From the perspective of the past five years, the success of the Polish economy looks impressive. According to the latest report released by the Polish Bank Association (ZBP), in 2006-2013 Poland recorded the highest economic growth in the European Union. Polish exports were expanding and unemployment was on the decrease. The average annual GDP growth rate was 3.9%. The Slovak economy, which ranked second, grew at a rate of 3.6%. The country which suffered the most from the crisis was Greece. Its GDP shrank over this period at an average annual rate of 2.2%. The economies of Italy, Portugal and Croatia, the youngest EU member, also contracted – by respectively 0.6%, 0.4% and 0.1%. Unemployment fell in Poland by 3.5 pct. points, putting the country in second place after Germany which recorded a drop by 4.9 pct. points. Greece and Spain were hit the hardest – their unemployment rates grew by almost 18 pct. points. According to the Deutsche Bank Research report, small and medium-sized businesses suffered the most as a result of the crisis. Poland was the only country where the number of such businesses increased. And although Polish people believe that Poland has an unfavourable business environment, Poland is in fourth place in the “Doing Business” league table in terms of access to credit. Our banking sector was one of the few which did not use state aid. OECD data show that the share of foreign capital in the Polish banking sector decreased from 75% in 2008 to 56% in 2012. This represented a drop by 19 pct. points, putting Poland in first place in this respect. The IMF forecasts that in 2014-2019 the Polish economy will continue to grow at a rapid pace – 3.4% annually on average. Only the Latvian and Lithuanian economies will be expanding faster – 4.1% and 3.6% respectively. The average rate of exports growth will also remain high in Poland. With a rate of 6.8% Poland will rank second in the European Union after Romania with 7.2%. But demand for imports will also be strong in Poland. No significant drop in the number of unemployed is expected in coming years. It is projected that in 2014-2018 the unemployment rate will fall in our country by a mere 0.6 pct. points. A sharp decrease, as a result of demographic factors, in the number of working-age people entering the labour market will take place only after 2020. One has to admit that for these projections to come true Poland has to properly use the European Union money that has been allocated to the country under the 2014-2020 financial plan. The money should be spent on investment projects in the real economy. Six years after the beginning of the financial crisis the EU’s GDP is still smaller than before the crisis. Almost one fourth of young Europeans are jobless. The persistently high unemployment levels, inequality and debt increasing every month, and a situation close to deflation pose a threat to the growth of the whole European economy. What can be done? Apart from continuing the process of creating a single market, which may streamline the allocation of resources, and proceeding with reforms designed to make the financial system stable, a key factor is raising capital expenditures. Meanwhile, private investment is now by almost one fifth smaller than before the crisis and public investment has become one of the main objects of austerity cuts at a time when it is most needed. Higher capital expenditures could become a strong driving force for the economy and would make it possible to remove the GDP gap in the near future. According to estimates made by the Polish finance ministry, an investment boost in the order of EUR700 billion would be necessary by the end of 2020. This would mean spending on this purpose from 0.5% of the EU’s GDP in 2015 to 2% in 2017. In the next years the percentage could be smaller. It seems the problem is not money but consensus. And the clock is ticking. Krystyna Woźniak-Trzosek Editor-in-Chief President of Rynek Polski Publishers Co. Ltd. October 2014 polish market
Historic speech in the Bundestag Thanks to reconciliation and cooperation, and our joint participation in the process of European integration, we can now work out a Polish-German community of responsibility,” President Bronisław Komorowski said in the Bundestag during commemorations of the 75th anniversary of the outbreak of World War II. “The democratic community needs a vision, strategy and determination in defending international order, the sovereignty of nations and civil freedoms.” The president stressed that Europe and its reforms, the European Union’s neighbourhood and its stability in the face of creeping war, transatlantic ties and care about maintaining the special relationship between Europe and the United States should be at the centre of this mission. “Today, as never before, we need a Polish-German community of responsibility, a community for Europe, one open to all European countries, our whole continent,” Bronisław Komorowski said. Among those present at the special meeting of the German parliament were German President Joachim Gauck, Chancellor Angela Merkel and President of the Bundesrat Stephan Weil. On behalf of the German authorities, the Polish president was greeted by President of the Bundestag Norbert Lammert, the initiator of the invitation for Bronisław Komorowski, who was the first Polish president to speak in the Bundestag. “That I can speak today, as a president of a free and democratic Poland, in the Bundestag, the heart of German democracy, is for me a source of truly great emotion,” Bronisław Komorowski said. He stressed that full reconciliation between the two nations was the result
Photo: Wojciech Grzędziński
of long-term efforts towards a new beginning in Polish-German relations and a community of fate initiated by the 1989 changes. He said the past 25 years was an incredible time when Poles and Germans were jointly building a united Europe. “It is an extraordinary story of reconciliation, which – while remembering about the millions of graves, the ashes rising with the smoke of the crematoria, the charred ruins of Warsaw, but also the ruins of Berlin - builds and will be building a new hope for Europe and the world, drawing on the wonderful tradition of the year 1989.
President appoints the government of Ewa Kopacz
resident Bronisław Komorowski appointed Ewa Kopacz as prime minister on September 22. At the ceremony at the Presidential Palace, the president also appointed her 18 ministers, of which 13 had worked in the previous government of Donald Tusk. The president said the new prime minister and her government were facing a serious and difficult challenge. “It will not be an easy time. We are all aware that three election campaigns will probably coincide with the time in office of the Prime Minister Ewa Kopacz government. It will also be a time associated with the ongoing crises, and a sense of instability and insecurity beyond our eastern border,” Bronisław Komorowski said. He added the year 2014 required concentrating on issues of strategic importance for the state. He referred in this context to his June speech in the parliament on the
occasion of the 25th anniversary of Poland’s regaining freedom when he had spoken about the need to strengthen the country’s security. Among the strategically important issues the president also pointed to the need to pursue a policy designed to support the family and overcome the demographic crisis, and to work towards enhancing Poland’s competitiveness in the world. The president wished the new prime minister courage and prudence in responding to the most important challenges and the ability to focus on the most important issues. He cited the words of Tadeusz Mazowiecki uttered at the time when the latter had been in the process of forming his government in 1989: “Everybody wants to give advice but no one wants to take responsibility.” The president said the words should be dedicated to all the people who choose to shoulder responsibility for Poland.
“A wonderful gift for the 25th anniversary of freedom”
I am a happy president of a happy Poland, which is a world volleyball champion,” President Bronisław Komorowski said after the Polish volleyball team had won the final match of the Volleyball Men’s World Championship. The president and his wife were present at the match in the Spodek Arena in Katowice. “The beauty of sport is that nothing is clear until the end. These are the moments when the fans play an important role, mobilizing the players to win,” he said.
Bronisław Komorowski thanked the volleyball players and all the fans. “These fans are absolutely fantastic,” he said. “I am extremely happy that we have an opportunity to experience this together again after a few decades [This year Poland won the volleyball championship title for the first time since 1974 – ed.]. It is a wonderful gift for the 25th anniversary of our freedom,” he added
President in New York
resident Bronisław Komorowski addressed the United Nations General Assembly at its 69th session on September 25. On September 23, the president took part in the opening of the UN climate summit. Later, he went to Fort Bragg in North Carolina to meet the Command of Special Operations Forces of the United States.
6 polish market
While in the United States, the president and his wife also took part in an annual reception given by the United States president for participants in the session of the United Nations General Assembly. On September 24, Bronisław Komorowski and his wife visited Columbia University, where the president gave a lecture at the annual World Leaders Forum.
Donald Tusk becomes president of the European Council
onald Tusk was elected president of the European Council at a European Council meeting in Brussels on August 30. He will assume the post on December 1. “Polish heritage and experience may become a very important source of the energy Europe needs and will need in the future more than ever,” Prime Minister Donald Tusk said after his election. “I come to Brussels from a country which believes deeply in a united Europe. Eighty per cent of my compatriots believe deeply in the European Union and are not looking for any alternative,” he added. The president of the European Council is responsible for leading the European Council in its work, supporting the process of achieving a consensus in the European Council, reporting to the European Parliament on European Council meetings, and representing the European Union externally, without
undermining the powers of the high representative of the Union for foreign affairs and security policy (EU foreign policy chief). “The new team is ready,” said Herman van Rompuy referring to the new European Council president and the new EU foreign policy chief. He added that the two had full support from the European Council. He also called Donald Tusk a statesman for Europe and stressed that his successor was facing big challenges. Italian Minister of Foreign Affairs Federica Mogherini was elected EU diplomacy chief. The EU’s external relations, including the situation in Ukraine, were also discussed at the European Council meeting in Brussels. Before the meeting Donald Tusk talked to Ukrainian President Petro Poroshenko and Presidentelect of the European Commission Jean-Claude Juncker. He also took part in a meeting of the Visegrad Group of countries – Poland, the Czech Republic, Hungary and Slovakia.
Prime Minister Donald Tusk at Westerplatte commemorations
Poland, Europe and the United States are able today to pursue an effective policy to ensure security in the world,” Prime Minister Donald Tusk said during the commemorations of the 75th anniversary of the outbreak of World War II on the Westerplatte Peninsula in the Polish coastal city of Gdańsk. He stressed that the call “Never again war!” should not be an expression of the illusion that there are no people or countries around us that would again like to make force and war a tool of their own policy. “This is why we will carry from Westerplatte to all European capitals and to the summit of the North Atlantic Alliance the call for our European and transatlantic solidarity to take a practical dimension,” Donald Tusk said referring to the forthcoming NATO summit in Wales. “On the anniversary of the outbreak of World War II we, Poles, have the right and duty to say loudly that no one has the right today
to block our initiatives aimed at ensuring full, practical and effective tactics for the operation of the North Atlantic Alliance. Today, looking at the tragedy of Ukrainians, everyone knows that the September 1939 must not repeat itself.”
Ewa Kopacz becomes prime minister
n September 22, Ewa Kopacz replaced Donald Tusk in the post of Polish prime minister. “My task will be to solve real problems and to humbly serve Poland,” Prime Minister Ewa Kopacz said. “My goal will be to ensure stability and security in every Polish home.” She stressed that being a prime minister was a great responsibility and a big challenge, and that it required courage and prudence, especially in today’s turbulent times. “I promise hard, solid and daily work, responsibility and care for every Pole, and respect for everyone,” she said. Prime Minister Kopacz said her government was a team of determined people ready to work hard and make sacrifices. She added that every day she would be demanding commitment and effectiveness from members of the government and herself. “In strategic matters, I will be counting on support from the opposition. Today, Polish people want cooperation rather than squabbles.”
Composition of the government: • Janusz Piechociński, deputy prime minister, minister of the economy • Tomasz Siemoniak, deputy prime minister, minister of defence • Andrzej Halicki, minister of administration and digitization • Joanna Kluzik-Rostkowska, minister of education • Mateusz Szczurek, minister of finance • Maria Wasiak, minister of infrastructure and development • Małgorzata Omilanowska, minister of culture and national heritage • Lena Kolarska-Bobińska, minister of science and higher education • Władysław Kosiniak-Kamysz, minister of labour and social policy • Marek Sawicki, minister of agriculture and rural development • Włodzimierz Karpiński, minister of the Treasury • Andrzej Biernat, minister of sport and tourism • Teresa Piotrowska, minister of internal affairs • Grzegorz Schetyna, minister of foreign affairs • Cezary Grabarczyk, minister of justice • Maciej Grabowski, minister of the environment • Bartosz Arłukowicz, minister of health • Jacek Cichocki, minister, member of the government, head of the Prime Minister’s Office
October 2014 polish market
Strengthening social capital in the business environment is an important
challenge Janusz Piechociński, deputy Prime Minister, Minister of the Economy
ne of the priorities of the Ministry of the Economy is ensuring the development of Polish businesses and making our economy more competitive in the EU and on global markets. These days, the competitiveness of an economy is built mainly on the basis of research and development. Initiatives aimed at promoting the development of innovative businesses are also gaining in importance. Small and medium-sized firms, which are particularly exposed to negative consequences of globalization and the on-going economic slowdown, are facing especially big challenges. Polish-owned small and medium-sized businesses (SME) make up by far the biggest part of our market. They generate over 66% of the GDP produced by the business sector and around 48% of the country’s total GDP. We owe our “economic miracle” in the first half of the 1990s to these businesses and their owners.
8 polish market
The mission of the Ministry of the Economy is to ensure the best conditions for business activity in Poland. In pursuing our mission we try to create a more friendly legal and institutional environment according to the rule “SMEs first of all.” We make law more business-friendly, promote pro-innovation attitudes and support entrepreneurs who want to invest on selected foreign markets. We have also launched the systemic project “Promotion of the Polish economy on international markets.” It will enable us to promote our export products more strongly than now so that Polish firms operating in the most promising sectors can win new markets. However, favourable regulations, access to technologies and financing are not enough to secure effective economic development. Also indispensable is an appropriate cultural environment, which will enable creating entrepreneurial attitudes and ensure public acceptance
for business. Consequently, it is important not only to shape a culture of innovation but also to promote non-financial aspects involved in running a business, like for example realizing one’s goals and a sense of satisfaction with one’s own occupation. An important challenge is to strengthen social capital in the business environment. Building a culture of cooperation may significantly enhance the competitiveness of Polish SMEs. This should be understood as cooperation among businesses within trade associations and clusters, and cooperation of businesses with scientific research centres, institutions operating in the business environment, non-governmental organizations, and local and central governments. As a result, the influence of entrepreneurs on the country’s economic policy will become • much stronger.
Industrial policy – an obligation
Olgierd Dziekoński, Secretary of State in the Office of the President of Poland
The countries which suffered less than others from the global crisis are those where the contribution of the industrial sector to GDP was high,” Olgierd Dziekoński, minister at the Office of the Polish President, said during a discussion on industrial policy held with entrepreneurs in the Lubomirski Palace in Warsaw. “In Europe, this contribution is the highest in the Czech Republic, our neighbour, where industrial production, excluding the building sector, contributes around 25%. Another European giant is Germany, with 23.5%. Poland has 18.2%, the European Union 16% and France slightly more than 10%.” Minister Dziekoński’s view is that if we want to keep in Europe the standard of life we have today and make sure that our children also have the same standard guaranteed we have to be much more productive than the rest of the world. How to ensure that? We have to export more and have products that can be exported. This also means that we need to have technology of very high quality because these days it is only technology that is exportable. Technology is the basis of a strong and competitive economy. To be competitive, products have to be saturated with technological knowledge. And this knowledge is the result of activity carried out by universities, scientific research centres, and the research and development (R&D) sector in general. It is difficult to imagine R&D without the ability to test its solutions in the real economy. The link between the scientific research sector and the real industrial economy is a potential source of competitive advantage in Europe. According to Olgierd Dziekoński, the main elements of industrial policy include energy costs, market openness, logistics, a rise in the importance of research and development in the economy, and making the defence
industry a stimulator of economic growth based on innovation. Minister Dziekoński said: “What we call industrial policy broadly understood should be introduced and there are already such attempts in Europe. To this end, Polish President Bronisław Komorowski organized in February 2014 an economic Weimar Triangle conference in Kraków. The discussion was focused on what should be done for industrial policy and how. The conference, entitled ‘The EU’s Industrial Policy – Economic Weimar Triangle,’ initiated a discussion on the revival of European industry. The meeting, with the participation of President Komorowski and highest ranking politicians from France, Germany and Poland, was the first opportunity in a long time to hold a debate with our partners from France and Germany about challenges for European industry. Participants in the discussion about the most important issues – the energy industry, infrastructure for mobility and ICT, science and research, the aviation and defence industries, and innovation mechanisms in these areas – stressed that one can meet the challenges associated with the reindustrialization of the EU economy mainly by developing sectors based on advanced technologies.
European industrial policy has to be based on the foundations of activity of individual states and their economic circles. The awareness of our shared responsibility for our future should provide inspiration for new forms of activity, as economic growth paradigms in today’s globalized world are changing. Industry is increasingly becoming a factor of growth. Its condition determines Poland’s position among the world’s economies. In Kraków, we talked about what could provide a boost to development, pushing European industry forward, so as to achieve the planned 20% share of the industrial sector in GDP generation. This would make Europe more affluent, and its citizens richer and earning higher incomes thanks to innovation, smart and wise climate and energy policy, and a good understanding of the extent to which activities in the area of defence and space projects, and a wise reform of higher educational institutions designed to make them oriented at the real economy, may be conducive to technological development. For a country to be part of a global economy, it is necessary to create investment incentives and, by using instruments supporting exports, make it easier for its own producers to enter the supply chain. Secondly, it is not so much participation in global value chains as its quality that is important for the country’s position. Specialization applies not only to companies but also countries. They compete for a place in global value chains, seeking maximum benefits from participation in international trade. The biggest benefits go to the countries whose businesses manage to capture the most valuable links in the production process.” • Statement by the Minister Olgierd Dziekoński at a meeting with entrepreneurs in the Business Centre Club
October 2014 polish market
We give priority to
n the long run, the extent to which the Polish economy will be based on innovation will determine its position in global competition. We treat this challenge very seriously. Money from the European Union is only one of the instruments which are supposed to enable us to reach this goal. Innovation was an important area of support in the EUâ€™s 2007-2013 financial period. Many diverse activities were financed from the sources available under the
10â€‚ polish marketâ€Š
Operational Programme Innovative Economy to make Polish businesses, and consequently the whole economy, more innovative. Support was offered for research and development projects carried out by businesses independently or in consortia with scientific units, for the practical application of modern technologies and findings of R&D work, and for undertakings contributing to the setting up of start-up businesses with an idea for new solutions never used before. Businesses launched on the
market 4,800 new products and services and applied 1,400 innovative technologies. As many as 730 research laboratories, the services of which are used by 11,500 businesses, were built or modernized. Money for making Polish businesses more innovative was also available under Regional Operational Programmes and the Operational Programme Human Capital. For example, money from the latter programme made it possible for over 2,000 company employees
Our Guest and scientific research workers to take part in specialist training courses and internships. If Poland wants to become one of the strongest EU economies it has to meet the challenge of creating suitable conditions for a stable and rapidly growing economy, based on modern technologies, top-quality R&D work and innovations, and human capital of increasingly high quality. This is why the new money from the EU will be invested in the areas which will contribute the most to the development of our country. Among them is enhancing innovation in the economy and the competitiveness of enterprises. Money for this purpose will be available under the Operational Programme Smart Growth, Operational Programme Knowledge, Education, Development and 16 Regional Operational Programmes. In order to ensure that the activities undertaken have maximum effect, we want to focus on our potential and strengths. For this purpose we have identified smart specializations at national and regional level. The Operational Programme Smart Growth is the largest programme aimed at enhancing innovation in the Polish economy. It is mainly intended for enterprises, research units, universities and their organizations: consortia, clusters, technology platforms and so on. A wide range of support will be offered to small and medium enterprises (SMEs) because they have the biggest problem with conducting innovative activity. Money from this programme is to contribute to the development of innovative solutions. The programme will mainly support projects leading from an idea to the marketplace, that is ones involving the whole process of innovation development – from the phase when an idea is developed to research and development work, including the construction of a prototype, and bringing the findings of the R&D work to the marketplace. The more innovative a new solution will be, the higher the probability that the company will achieve commercial success. The Operational Programme Smart Growth also offers numerous support instruments, tailored to the needs of businesses being at different stages of innovative activity. Financial support will be provided for cooperation between large companies and SMEs, R&D services rendered by scientific units for enterprises, access to business services supporting innovation in firms and their internationalization. Businesses will also have an opportunity to finance from EU money the purchase of apparatus, equipment and technologies to be used to develop innovative products and services as well
as undertakings associated with the development of their workers’ skills. Financial support from Regional Operational Programmes will complement these activities. The undertakings that will be carried out will be enhancing the competitiveness of firms through investment and the development of their staff and skills. Money from regional programmes will also be spent on developing strategic research infrastructure in enterprises and scientific units, implementing R&D projects, supporting the practical application of scientific research findings and technologies, and protecting intellectual property rights. According to the Partnership Agreement, in 2014-2020 the European Social Fund (ESF) will be co-financing the national Knowledge, Education, Development programme and 16 regional programmes. At national level, ESF support will be earmarked for improving the functioning of sectoral policies, including in the area of entrepreneurship. At regional level, the support will be focused on individuals. The measures will include raising workers’ qualifications – for example, in applying innovative technologies in the company and adapting innovative solutions to its field of activity – but also technological audits and consultancy in building a competitive advantage on the market. With the experience gathered during the financial period, we know what can be done better. Particular note should be taken of the need to increase the involvement of enterprises in research activity. A considerable part of the EU funding will be earmarked for projects where entrepreneurs will be deciding what kind of research should be done to make it possible to develop new innovative products. We want to make scientists even more oriented in their activity at the market and the needs of businesses. A necessary condition for receiving support for scientific research should be a good business plan showing how the research findings can be brought to the marketplace. In the Operational Programme Smart Growth, we will pay much attention to the way in which innovative projects will be assessed, especially the most groundbreaking, but also most risky, ones. We want to exploit our positive experience from implementing some measures of the Operational Programme Innovative Economy where the projects were assessed by a panel of experts specialized in modern technologies, finance and management. This way of assessment enables appreciating an innovative and promising business idea. An assessment made by
Iwona Wendel, deputy Minister of Infrastructure and Development
At regional level, the support will be focused on individuals. a panel of experts significantly raises chances of funding being granted to the most valuable projects, which means that public money goes to those who really need it and are able to make the best use of it to the benefit of the whole Polish economy. In the new financial period, we will spend much less money on new laboratories and research infrastructure in general. We want support for the science sector to be earmarked to a much larger extent for research and the effective application of its findings. The competitive advantages Poland has had so far, based mainly on low labour costs for highly qualified workers, are becoming insufficient. The coming years will be a period when the basis will be created for developing new competitive advantages based on innovation and the ability to develop ad• vanced technologies.
October 2014 polish market
Innovation and the joy of recovery
25 years of LfC
We live in the times of huge opportunities and big challenges. Poles are an aging population, just like the populations of other developed countries. According to the World Health Organization (WHO), 25% of people in the world suffer from diseases of the musculoskeletal system, including spine disorders. Twenty five years ago, in 1989, when Polish people started to build a free Poland, Lechosław F. Ciupik founded his LfC firm in the western Polish city of Zielona Góra. The task the company undertook seemed almost impossible at that time. In an emerging democracy, at a time of economic and social transition, LfC based its success on developing modern surgical methods for the treatment of spine disorders. The founder’s vision, supported by his passion and determination in the pursuit of the goal, enabled LfC to become established on the demanding market for spinal implants. Now, after 25 years of consistent growth, LfC enjoys recognition from world-class experts, is well-established on the market and respected by the competition. With around 40,000 thousand patients who have recovered thanks to LfC implants, the company continues to contribute to the development of innovative spine surgery, delivering solutions protected by numerous patents and conquering new markets. Lechosław F. Ciupik, DSc, President of the LfC company, its founder and man behind its development, talks to “Polish Market.” This year LfC is celebrating its 25th anniversary. It is a great development for all those who committed to the company’s growth. And what were the beginnings like? We set ourselves ambitious goals. We decided to develop medical technologies for the treatment of disorders of the musculoskeletal system, in particular the spine. The beginnings were not easy. Poland was undergoing systemic transformation, there were huge changes. Virtually everything was in short supply, except for enthusiasm and eagerness to work. LfC had its first premises – it is hard to believe - in a converted barn. From today’s perspective, it looks a bit like an “American dream,” but it was the Polish reality. pm
How did it come about that you took such a bold decision? Weren’t you afraid of the risk? I was a university researcher and I faced the choice between the stagnation of university work and the risk of trying to do something special. I could not stand this stagnation pm
12 polish market
of a world stuck in the past and in hierarchical relations. I decided to take things into my own hands and come up with a good therapeutic product, knowing that “Health is the most important thing.” The risk was huge – I had no knowledge about how to run a business and
As a man impatient by nature, I wanted to do more and do it better.
no capital. But on the other hand, if you start practically from scratch you cannot lose much. And where did the idea to carry out this kind of activity come from? Why did you decide to produce spinal implants? At that time, I was annoyed by a general state of apathy and a sense of impotence. Many patients with disorders of the musculoskeletal system were not receiving the right treatment. The healthcare system was inefficient. There were no effective treatment methods. This is when I took an interest in implants. The problem was close to me as a researcher. I felt it was possible to do something very useful in this area. As an experienced engineer, after scholarships in the United States and Japan, I thought: “It’s a piece of cake”. What I did not know was that “the piece of cake” may not be so easy to digest. As a man impatient by nature, I wanted to do more and do it better. Looking at an already existing product, I saw it – and still do in a different way – with some new, additional features. Today, we call it “an added value.” I did not even think about imitating existing solutions. My ambition was to develop unique implants, better than existing ones, more excellent. Today, we call it “innovation.” This kind of activity meant we had to fight against the aggressive competition. It was a bitter lesson and we still remember it. I learned then that “when moving forward you have to protect your rear guard.” pm
needs and gaps on the market. Today, we call it visionary imagination. We set ourselves ambitious goals from the start. We decided to develop medical technologies for the treatment of spine disorders. We offer top-quality implants, which meet the expectations of doctors and patients. They are not the cheapest perhaps but the most effective. Regarding the price, at the beginning of our activity an auditor from Holland told us during an ISO preaudit: “If you offer a competitive product with a drastically low price there is no other way for the competition than to kill your company.” In its innovative activity, LfC tries to acquire state-of-the-art knowledge only in order to go beyond it and offer an added value. Thanks to this attitude, we want to regularly increase the number of diseases for which we offer treatment and restore the best quality of life to patients in keeping with the idea of “Measuring up to nature” (“Sprostać Naturze”). How are medical technologies developed in your company? Having an idea is the most important thing. It often results from a lack of effective treatment methods. And sometimes it is spurred by the irritation of a doctor who has a problem with doing something. Diseases which have not been treated or have been treated ineffectively pose a real challenge. Then, there is a research and development project, which results in a prototype or sometimes many prototypes, followed by advanced laboratory and pre-clinical trials. This is how we have developed our Polish DERO Spinal System. The system is composed of a set of multifunctional spinal implants, surgical instruments, surgical procedures and the assessment of the treatment based on EBM (EvidenceBased Medicine). Treatment with the use of our implants is designed to be effective and to improve the patients’ quality of life.
But you have succeeded. Looking at the company’s difficult beginnings from the perspective of 25 years, one can say it was a visionary activity. You had to create this vision. Yes, and then consistently pursue it. First, there was a dream resulting from seeing the pm
What are the results of LfC’s activity. How many surgeries have been performed with the use of your implants and where have LfC medical technologies been used? More than 40,000 surgeries with the use of LfC implants have been performed by the end of 2013. Statistics show that demand for our idea and products is on the rise. One reason is the aging of the population. It turns out that the musculoskeletal system cannot keep up with longevity. LfC’s medical technologies are used by medical centres across the world, including such countries as Belgium, Germany, Spain, Greece, Sweden, Turkey, Israel, the United States, Mexico, Brazil, South Africa, China, Russia and Belarus. pm
How to become more competitive on the market for specialist medical products? We use a whole range of production technologies – from the simplest to most modern solutions. An exceptional example is 3D technology used until recently only in the space industry. It is based on computer-controlled electron beams, which melt titanium at a temperature of 2000 degrees Celsius. This technology enabled us to develop a completely new type of 3DF (3-dimensional frame) implant. In this case, special gratings are built to encourage bone growth. They resemble bridges, which transfer loads in the human organism. Additionally, for several years now we have been able on the basis of an X-ray to make customdesign implants adjusted to the anatomy and pm
The complexity of the spine – which is composed of the osseous system, muscular and ligament system, nervous system and vascular system – requires an especially complex technology for the treatment of diseases of the motor system.
physiology of an individual patient. With this ability, we go beyond the scope of our basic activity. Surgeries with the use of tailor-made implants have already been performed.
Intraoperative consultations: Dutch patient, Polish surgeon J. Pieniążek (left), Belgian surgeon R. Gunzburg (right) and bioengineer L.F. Ciupik (in the centre) during an innovative spinal surgery with the use of the Slider implant in Antwerp Which areas of development are supported at the company? I have given preference to intensive research activity, and developing new, advanced technologies. Every solution appearing on the market and every trend is a challenge for us to make something better. The treatment methods we introduce are so innovative that many have been patented or submitted for patent protection. Thinking about the near future, we are going into biotechnology and microbiology. This brings us closer to nature. I take part in the work of international organizations and pm
October 2014 polish market
scientific societies supporting the development of spine surgery. One of them is the Spine Society of Europe (EuroSpine). My personal status as an expert for European programmes and reviewer of scientific journals, and my participation in Polish and international scientific and economic meetings are conducive not only to the development of the company but also the promotion of the region.
indicative list adopted by the government as the only project from this part of Poland. Our financial contribution to research projects is big – around 50% on average. Our strategy produces results: our knowledge grows as does the experience of the research staff. Our research base is gradually expanding and our production capacity is on the increase. And time will come for the rest.
Do you have a “recipe” for innovation? How is it pursued at LfC? Innovation is not only the company’s main principle but also a consciously adopted strategy. In 1992, when the notion of innovation was not yet known and you could not even find it in technical dictionaries, I introduced the motto “If we do … we do it better” to the company’s life. It means that every new solution, or a new idea, has to be better, more excellent and effective than the previous one. The large number of patents the company holds shows how innovative our activity is. I have 32 patents and
What do you regard as the company’s special success? A special development, one which confirmed that LfC’s spine surgery solutions are of top quality, was the sale of a complete IP to the United States, the first such instance in Poland after the Second World War. This included the idea, patent, production process and even production in the first years after the sale, training system and know-how. It was an unprecedented development in the history of the company and of Poland, especially as the United States leads the way in spine surgery. This success also
Poland, are of poorer quality. To enter operating theatres in the West you need to make an additional effort. The process takes two or three years on average for each medical centre. Luckily, we already have strong bridgeheads and reference centres with well-established positions. We have partners who trust us and value our products highly. Thanks to our innovative approach, we have introduced to global and European surgery a number of new medical technologies supported by patents. Consequently, we also have a significant influence on the development of spine surgery in Poland. pm
In what direction is LfC heading? What do you think about the future?
The future? The future does not belong to the people who talk or those who have knowledge. It belongs to the people who create – works, intellectual property and other things - for people.
Since 2010 we have pursued a new development vision. It is not a meaningless idea or
Signing of a contract for the sale of a patent and IP to the United States. Pictured: L.F. Ciupik and the president of the American medical corporation, Kraków, 2007
InSwing – Polish surgical method for the world’s operating theatres sold to the United States
more than 300 patent applications in dozens of countries across the world to my credit.
merely an aspiration. It is a special challenge not only for us but for the whole world. It is reflected in the motto “Measuring up to nature” which I presented in my speech at the world exhibition in Shanghai. We feel that the challenge is huge because it is about ensuring that the functioning of the patients is as close to natural as possible and about restoring their quality of life. I have invented a new catchphrase to explain our way of thinking - “the joy of recovery.” It is a great experience to see a happy patient whose health is being restored. •
LfC has for years successfully carried out advanced research projects. Where does the money for them come from? We carry out the biggest projects with the use of subsidies. At present, we are in the final phase of a project supported from European funds under the Operational Programme Innovative Economy. It is a special project of great importance for society. It was included in an pm
14 polish market
had another dimension. Our image suddenly changed. “What have the American bought?,” questions were asked. “It has to be good,” the answers suggested. Since that time the company has been perceived much better on the global medical market - as a fully-fledged competitor. How is the company’s activity promoted on the international medical market? As regards foreign customers, the situation varies. In the West, you still have to break the stereotype that products from the East, from pm
Pioneering implantation of Cochlear MET device On September 3, Prof. Henryk Skarżyński and his team performed Poland’s first implantation of a Cochlear MET middle ear implant system in an elderly person. The surgery was performed in the World Hearing Centre in Kajetany, outside Warsaw. It was broadcast live to the Conference Centre of the Polish Press Agency (PAP), with Maciej Mrówka, MD, an otolaryngologist of the World Hearing Centre, providing comments on the course of the procedure to those gathered at the conference centre. After the surgery Prof. Skarżyński spoke at a teleconference about his impressions from the surgery and answered the questions asked by journalists.
MET implant – how it works The sound processor captures sounds, amplifies them, filters and adjusts, and then sends them to the implant via the coil. The implant converts the sounds into an electrical signal and sends it to the actuator. The actuator is a kind of a small motor converting the electrical signal into mechanical vibrations, which move one of the ossicles. From that point the hearing process is the same as with normal hearing. “The device is based on the transmission of sound vibrations directly to the ossicles, which means it bypasses the outer ear if, for various reasons, conventional solutions cannot be applied,” said Prof. Skarżyński. He added: “I am glad that it is already the fourth pioneering surgery we have performed since the opening of the World Hearing Centre in 2012. When creating the Centre I wanted its clinical work to bring unparalleled benefits to Polish patients, who have access – sometimes as the first in Europe or in the world – to the latest and most advanced medical technologies.”
MET implant surgery During the procedure the surgeon makes a small incision in the skin behind the ear and then drills an opening in the mastoid portion of the temporal bone. Then, the implant is placed under the skin and the actuator is fitted to the special fixation system and its tip is attached to the appropriate ossicle or window of the cochlea. “It is hard to estimate today
the number of patients who will be qualified for these operations. I think there will be many patients of all age groups, but most of them will be seniors because almost one in three persons older than 65 has severe hearing loss,” said Prof. Skarżyński. The pioneering MET surgery was another proof of the high position held by the Institute of Physiology and Pathology of Hearing in the international clinical and scientific arena. In the coming years the Institute will be taking a very active part in promoting Polish science and medicine in the world. The Institute has been entrusted with organizing a series of international scientific congresses of the biggest importance in otolaryngology, audiology and phoniatrics, which is really sensational. In 2017, Warsaw will host the 12th World Tinnitus Conference and the 25th International Evoked Response Audiometry Study Group Biennial Symposium (IERASG), one year later the 5th International Symposium on Otosclerosis and Stapes Surgery, and in 2020 the 35th World Congress of Audiology. In the meantime, regular international ear and nose surgery workshops are to be held at the World Hearing Centre. •
October 2014 polish market
Innovative like …
a Pole! Findings of a public opinion survey on innovation in Poland
More than 60% of Polish people think they are innovative as a nation and that Poland has a climate conducive to the development of innovation, according to the “3M Report Innovative Pole 2014.” Poles are aware of the importance of innovative solutions in everyday life. They say that innovation improves the quality and comfort of life and provides a sense of security. The healthcare sector is viewed as the most important area for the development of innovative solutions and products. The survey, conducted for 3M by the TNS Polska market research company, shows that innovation is valued highly by Polish people. One in three of those polled regards himself or herself as an innovative person and 66% of those polled say that Polish people as a nation are innovative. Young people and people with degrees are more likely to see themselves as innovative. According to those surveyed, an innovative Pole is creative (45%), enterprising (38%) and original (32%). One third of the surveyed people associate innovation with solutions improving the quality and comfort of life, 75% say that innovative products are helpful in everyday life and 81% say they make it possible to save time. “Polish people are open to using innovative solutions, but would like to have more innovation. They see potential for innovation in people, are undoubtedly creative, enterprising, determined and mentally strong, but are not enough ready and able to work together,” says Prof. Janusz Czapiński, a social psychologist of the University of Warsaw. Healthcare is by far at the top of the spheres which those polled regard as important in the context of innovation, with 60% of them saying that healthcare is where the development of innovative solutions and products is the most important. Additionally, as much as 88% say that innovations improve treatment effectiveness and patient comfort, while 84% say innovations contribute to shorter hospital stays. Safety is another important area in the context of innovation, with as much as 85% of Poles feeling safer thanks to innovative solutions. The same percentage of people say that fluorescent and reflective markings on roads and vehicles improve safety and that seat belts are among the most effective ways to save lives in road accidents. Those surveyed perceive innovative products as simple solutions making life easier. Half of them say they use innovative solutions on a daily basis at home and almost 50% have contact with innovative products connected with safety and healthcare. More than 50% of working people use innovative solutions in their workplaces every day. Those surveyed are aware of the great significance of innovative solutions at work. As much as 88% think that these solutions make work easier and raise work quality. Additionally, 87% of those polled
16 polish market
say that employers should train their workers and encourage creative thinking. More than 70% of the respondents say that at national level – in the economy, industry and education system – conventional solutions prevail over innovative ones. It is mainly in individual people that the surveyed see potential for innovation. “Innovation is a driving force behind any activity at global, local and individual level,” says Sebastian Arana Araya, 3M Poland managing director. “I cannot imagine the development of a country, enterprise, society or even an individual person without investing in innovative solutions and supporting an innovative approach in performing the tasks they have undertaken. Only this attitude can guarantee success and satisfaction with the results of the activities one is engaged in.” More than 50% of the respondents believe that Poland has a climate conducive to the development of innovation. They are of the opinion that an alliance between public authorities and the scientific research community should play the most important role in the development of innovation. Interestingly, those surveyed expect less in this respect from businesses. “The individual creativity of Polish people and their openness to using innovations contribute to improving the quality of life for individuals and families, but do not produce an economic effect at national level,” says Prof. Janusz Czapiński. “On the road from an individual idea to industry, there is a dramatic shortage in Poland of confidence and cooperation, something which stands behind the success of such companies as 3M. However, in the opinion of those polled, the biggest barrier to innovation in Poland is a shortage of money. More than 60% of them indicate this as a factor preventing the use of innovative solutions. Other constraints, like for example the absence of appropriate skills, attachment to conventional solutions and fear of new solutions, are indicated more than two times less frequently.
About the survey The survey was conducted between June 27 and July 2, 2014 as part of the multi-subject Omnibus research, using the computer-assisted personal interviewing (CAPI) technique. A representative sample of 1,000 people from across Poland aged 15 and over were questioned for the survey. The researchers used random quota sampling, which ensures a random selection of locations for the survey and guarantees that the structure of the sample corresponds with the population structure, which means no need of weighting. The GUS (Central Statistical Office) address base, compiled on the basis of the most up-to-date set of statistical areas and census districts, was the sampling frame. The survey covered the whole of Poland. •
Read-Gene SA is a company of innovative technologies. One of major aims is to conduct clinical trials on conduct clinical trials on prevention and treatment of the most common malignant tumors. Companyâ€™s innovative approach in oncology is based on the division of patients into sub-groups depending on their genetic profile. Recently the Company completed the construction of the R&D Center in surroundings of Szczecin.
At present Company is focused on the development of its new venture â€“ Anticancer Diet.
Lung cancer risk and Se level in blood:
Risk of cancers depending on genes and selenium level is presented in figures aside. The main aim of this project is to examine the food products determining the level of micro and macro elements and vitamins, and then - development of a diet tailored to the individual patient's genome. Our online store (English version) : www.ReadGeneAnticancerDiet.com
email@example.com www.read-gene.com October 2014â€‚ polish market
Interaction – research, teaching, business
ooperation between the scientific research and business communities is a process very important for a country’s economic development. This problem concerns every country. In the case of such organizations as the European Union, attempts are being made to solved the problem in a broader context. The problem is significant. The goal of this article is to present the cyclical interaction - resulting from the logic of the academic year - between the university and business, with positive effects for both. The effect for the university is that it can use the results in teaching and research while the business benefits by having its processes streamlined. The article describes experiences and results achieved at the Faculty of Engineering Management Poznań University of Technology (www.fem.put.poznan.pl). This interaction is based on technology. A technology - acquired from the producer and used in teaching and research - is offered and applied in business through students’ projects (contact between business and science in the teaching process – the university’s proposal for industry). Thanks to feedback from these projects, the technology is further developed by research workers and again used in teaching, research and business. The technology acquired from the producer is the FlexSim software for the simulation of logistical and production processes (producer – FlexSim Software Products, Inc. from the United States – www.flexsim.com) and the OptQuest technology for the parametric optimization of processes based on simulation experiments
18 polish market
Presentation in the main lecture hall
Process simulation and optimization technologies as part of PPL and PSPL subjects at the Logistics Unit of the Faculty of Engineering Management Poznań University of Technology
(producer – OptTek Systems, Inc. from the United States – www.opttek.com). LogisticsGEO is a technology developed by research workers of the Faculty of Engineering Management on the basis of FlexSim. The FlexSim technology, composed of the methodology of conducting simulation projects, the tool - FlexSim simulation program, and the methodology of the OptQuest parametric optimization of processes, is used at the Logistics Unit as part of two subjects: PPL - Designing Logistical Processes and PSPL Designing Logistical Systems and Processes. A project conducted by students in industry is the core of these courses. This format of the courses has been used since the inception of the Logistics Unit – for the fifth time this year (2014). A total of 55 projects have been carried out over the past five years in the following companies (full list): Logzact, Solaris Bus&Coach, Man, Comforty, Vox, Poczta Polska, Bridgestone, Poznań Airport, Komputronik, Kompania Piwowarska, Luvena, BDF Beiersdorf, Pratt&Whitney Kalisz, FPS, Rabem, VW Poznań, ITM Baza Poznańska, Imperial Tobacco, Mirox, PKP Cargo, Beiersdorf Manufacturing, Brawn, Panopaa, Philips Lighting Poland, Stomil Poznań, Volkswagen Group Polska and Vinylpex. The projects have dealt with various fields, like for example warehouse logistics, production logistics, internal transport and E2E supply chain. Students submit their projects carried out in companies operating in the Wielkopolskie province at the annual Logistics Gala. They present the projects in the main lecture hall and at special stands in the lobby of the Lecture Centre of the Poznań University of Technology. The 5th Logistics Gala was held this year (2014) under the auspices of the Wielkopolskie Province Marshal. The news about the Gala was published on the websites of the FlexSim producer 1 and Mississippi State University2. The method for conducting the Designing Logistical Processes (PPL) classes at the Logistics Unit has been developed by Paweł Pawlewski, DSc, Eng, of the Faculty of Engineering Management Poznań University of Technology in conjunction with Prof. Zbigniew J. Pasek of University of Windsor, Canada, and Prof. Allen Greenwood of Mississippi State University, United States. The 1 http://www.flexsim.com/blog/flexsim-represents-at4th-gala-of-logistics-in-poland/ 2 http://www.ise.msstate.edu/ise-faculty-is-judge-andkeynote-speaker-at-international-logistics-event/
method has been described in the form of scientific articles 3,4. The experience acquired in the course of student and research projects has resulted in the development of the Logistics-GEO technology by scientists working at the Faculty. The technology was presented for the first time at the 5th Logistics Gala in June this year (2014). It makes it possible to quickly model objects with a large number of address sites (over several thousand) and to quickly activate movement in such a model (Fig. 3), read maps and GPS data, and quickly build urban logistics and supply chain models. Business in Poland has so far not used new simulation and optimization technologies. One reason is a shortage of engineers who know how to use these technologies in practice. Looking from the perspective of the Faculty of Engineering Management Poznań University of Technology, the results of our activity have just started to appear because our logistics graduates are entering the labour market. The following effects for business are noticeable: • much better identification of problems which can be solved using simulation technologies – as proposals for student projects; • cooperation initiatives from business. Synergy resulting from the interaction of research, teaching and business is also producing effects: • benefits for teaching: projects carried out in business reality rather than in a classroom, the use of advanced technologies, a focus on problem solving (in this case, solving logistical problems) instead of building models from scratch, thanks to applying the Logistics-GEO technology in the teaching process, building relations with future employers; • benefits for business: the companies receive concrete technical support, have an opportunity to try out new technologies without investing too much and can see potential employees in action; • benefits for research: the researchers have an opportunity to check in business practice the technologies they develop, they receive inspiration from business for further research.
• • • •
Win-win – everyone involved wins: students see how business works and acquire experience; companies gain information and knowledge about new technologies; university establishes and maintains contacts with companies; Wielkopolskie province gains because business productivity grows and attracts new investment and gifted individuals. •
Paweł PAWLEWSKI is an associate professor at the Faculty of Engineering Management at Poznań University of Technology. His research interests include organization of manufacturing systems, monitoring of operations management, reengineering and IT application for logistics, process modelling, simulation and optimization. He is the author or co-author of over 130 manuscripts including books, journals and conference proceedings. He is managing director of SOCILAPP Simulation and Optimization Center in Logistics and Production Processes. He is FlexSim Partner in Poland. His email address is firstname.lastname@example.org.
3 http://research.logistyka-produkcja.pl/pl/wybranynumer/numer-1/67-logistics-engineering-curriculumintegrated-through-student-projects.html 4 http://www.asee.org/public/conferences/8/ papers/4675/view
October 2014 polish market
Shared responsibility awareness Przemysław Gonera talks to Anna Koźmińska.
Przemysław Gonera, PhD - Geographer, ecologist, director of the 15th Polish research expedition to King George Island (Antarctica), long-time President of the Board of the Regional Fund for Environmental Protection in Poznań and head of the Convention of Presidents of the Regional Funds for Environmental Protection; currently Chairman of the Sport and Environment Committee under the Polish Olympic Committee and Managing Director of the Union of Municipalities “Poznań Agglomeration Waste Management”
For over a year, Poland has been under new “waste regime.” How do you, as a person for years involved in ecology, evaluate its results? Expectations were very high as the new law took effect, if only to mention announcements that illegal landfill sites will disappear. But there were also major concerns and risks associated with new tasks being taken over by municipalities, with the need to fix rates, collect thousands of declarations and proceed with tenders. After a year, you can see that overly optimistic talk of litter disappearance from the forests was wishful thinking. On the other hand, black visions of cities buried under mountains of waste did not come true either. Many of the new solutions work. In Poznań, it is best proven by the achievement of all the required levels of waste recovery and recycling by the Union of Municipalities. We have also settled tenders for the collection and recycling of waste in all 22 sectors which make up the Union. We have already signed contracts with certain contractors, which will serve as of 1 January 2015 more than 700 thousand residents and 150 thousand businesses. pm
Was the competition fierce during the tenders?
20 polish market
The decisive factor was the quoted price. The lowest prices were offered by two strong consortia. Remondis Sanitech, a company operating in Poznań for years, together with several cooperating enterprises, won in 18 sectors, while the Spanish-Polish consortium FBSerwis, venturing into the Poznań market, won in 4 sectors. The tendering procedure - which has, by the way, seen many appeals to the National Board of Appeal that upheld our position anyway - led to a reduction in the cost of waste collection and preservation of the market competition. I hope that both winning consortia will continue to compete on ideas, efficiency and service quality for the benefit of inhabitants. In fact, there is still a lot to be done to improve waste management in Poland. We are still behind western countries when it comes to recycling levels, but taking over responsibility for waste management by municipalities paves the way for systemic solutions. Waste does not “disappear somewhere” any more, it is under control, and it can be efficiently managed. For this, however, processing plants are needed. In Poland, seven incinerators are being built currently, including Poznań. In 2016, all municipal waste from the Union of Municipalities, covering the city of Poznań and eight neighbouring
municipalities, will be disposed of by a modern, efficient and economical installation of the thermal waste treatment. Is it going to be the end of troubles with waste? Neither the new law and its subsequent amendments, nor incinerators, although extremely necessary, will automatically solve all the problems associated with the management of the growing amounts of waste and environmental protection. In fact, it almost always depends on the people, because we all produce waste and we should equally participate in its recovery and processing. We are building awareness of the shared responsibility through extensive education and promotion of ecological behaviour. The leitmotif of our activities in Poznań refers to the popular children’s rhyme slogan “Kocham, lubię, segreguję!”(I love, I like, I sort). I love - nature, I like - the new system, and I sort - waste. Through media campaigns, contests, amusements and publications, the number of people sorting waste and caring for the environment is growing. 95% of the Union’s residents declare selective waste collection and deal with it properly. • pm
8 International th
Warsaw Invention Show 2014
Prof. Michał Szota, DSc, Eng., President of the Presidium of the SPWiR National Council
ince 1990 the Association of Polish Inventors and Rationalizers (SPWiR) has actively promoted Polish inventions at international exhibitions, scientific conferences and innovation fairs. In this period, the association has shown at over 100 exhibitions on four continents more than 3,000 Polish innovative technological solutions developed at universities and scientific research centres and by companies and individual inventors. Medals, honorary mentions, special awards and numerous business contacts established by Polish inventors – the first step towards bringing their research findings to the marketplace – are a noticeable result of the promotional activities carried out by the association. As Polish companies are interested in innovative solutions shown at foreign exhibitions and international organizations of inventors want to show their solutions in Poland, for several years now the association has organized the International Warsaw Invention Show (IWIS). This year, the eighth IWIS exhibition will be held in the main building of the Warsaw University of Technology on October 14-16. For a few years the president of Poland has been the honorary patron of the exhibition and for three years IWIS has been organized in conjunction with the Polish Patent Office and the Warsaw University of Technology. Additionally, the Patent Office organizes a series of seminars on intellectual property. Seminars are also
organized at IWIS by the Polish Confederation Lewiatan and LBA Lewiatan Business Angels. The 3rd International Contest for Chemical Inventions will be held at IWIS under the auspices of the International Federation of Inventors’ Associations (IFIA). Present at the show will be exhibitors from many countries from Europe, Asia, North America, Africa and the Middle East as well as people representing numerous Polish scientific institutions, businesses and individual inventors. They will show several hundred innovative solutions. An international jury will award the best inventions with gold, silver and bronze medals and gold medals with distinction, many cups and special prizes. It is worth stressing that for many years IWIS has been the largest exhibition in Central and Eastern Europe promoting Polish and foreign innovative solutions. The association is convinced that the solutions and trade contacts established at IWIS 2014 will significantly contribute to a growing interest in Poland in the idea of innovation and an increase in the number of inventions put onto the market, which would be directly translated into economic development of the country. I wish IWIS 2014 participants success in promoting their innovative solutions and bringing them to the marketplace. I cordially invite everyone to the IWIS 2014 exhibition • and accompanying events.
October 2014 polish market
Grupa Azoty -
Poland’s biggest chemical group
he establishment of Grupa Azoty SA is the most important development in the long history of the Polish chemical industry. Grupa Azoty is now Poland’s biggest and one of Europe’s biggest chemical groups. It offers well-recognizable brands of fertilizers, plastics, OXO alcohols, plasticizers and pigments. It also produces caprolactam, melamine and other chemicals. Its modern technological solutions are used on all continents. Over the past five years, the group carried out a strategy aimed at consolidating the most valuable assets of the Polish chemical industry. It managed to bring together complementary companies specializing in different products. Among the group’s members are Poland’s most important producers operating in the heavy chemical industry: the chemical works in the cities of Tarnów, Kędzierzyn-Koźle, Police and Puławy, with additional plants in Gdańsk and Chorzów.
Warsaw Stock Exchange Grupa Azoty SA has been listed on the Warsaw Stock Exchange since 2008. In 2013, it was included in the newly established WIG30 blue-chip index. As a result, its stock is among the securities carefully observed by the largest investors present on the Polish market. However, Grupa Azoty offers something more than prestige and reputation. By investing in its stock investors can benefit from a rise in the shareholder value of more than 10 companies making up the group - companies operating under a single brand name and offering hundreds of products on dozens of world markets. Investors have appreciated this. Significant stakes in Grupa Azoty are held, apart from the state, by some of the largest investment and pension funds. Since 2009 Grupa Azoty has made part of the Respect Index, the first index in Central and Eastern Europe of companies operating in keeping with the corporate social responsibility (CSR) standards. In 2013, the group was also included in the MSCI Emerging Markets index. Two subsidiaries of Grupa Azoty – Grupa Azoty Police and Grupa Azoty Puławy – are listed • on the Warsaw Stock Exchange independently.
22 polish market
Revenue: PLN9,821 million Net profit: PLN713 million Grupa Azoty among fertilizer producers in Poland: no. 1 in inorganic fertilizers no. 1 in compound fertilizers no. 1 in nitrogen and sulphur-based fertilizers no. 1 in nitrogen fertilizers among producers of plastics, OXO, pigments and melamine in Poland: no. 1 in polyamide no. 1 in OXO alcohols and plasticizers no. 1 in titanium white no. 1 in melamine among fertilizer producers in EU: no. 3 in inorganic fertilizers no. 2 in compound fertilizers among producers of plastics, OXO and melamine in EU no. 2 in melamine no. 5 in plasticizers no. 5 in polyamide 6 no. 5 in OXO alcohols
Grupa Azoty has published its first ever integrated report. The report is one of the first editions in Poland prepared in accordance with the latest G4 version Global Reporting Initiative standard. It was submitted for independent verification by an auditing firm and voluntary verification by Global Reporting Initiative.
The report is available at
24 polish market
We create chemistry that helps thirst love the sea.
By 2025 it is estimated that half of the world’s population will lack access to safe drinking water. A sorry state of affairs considering that two thirds of our planet is covered by water. Which is where chemistry steps in. We have developed Sokalan® antiscalant which acts as a scale control dispersant. This means that the equipment that desalts the water can desalt longer, to ensure there is the maximum output of fresh water. When salt water can satisfy our thirst, it’s because at BASF, we create chemistry. To share our vision visit wecreatechemistry.com/water
new idea for innovation in industry
Partycja Zielińska, Vice-President of IDA JSC Board
I Industrial Development Agency JSC is looking to redefine its role in supporting the country’s economic growth. 26 polish market
ndustrial Development Agency JSC appreciates innovation. There is no doubt that innovation has an enormous impact on the Polish economic growth. And it is ever more important now, as global corporations challenge us more and more. This is why looking for all sorts of development stimulators is now the Agency’s priority. Industrial Development Agency JSC is looking to redefine its role in supporting the country’s economic growth. The first step to adapt the Agency’s tools to the needs of today’s economy will be the implementation of the 2014-2020 strategy. IDA JSC has so far focused on supporting large companies under threat of bankruptcy. Innovation, business development and supporting business and science cooperation were secondary its activities. Today, knowing that innovation is what will have the most deciding impact on the economy, IDA JSC wishes to work with the government to contribute to the development of Polish innovativeness. Industrial Development Agency JSC presented its new strategy in August and now is working on the final draft of the document outlining it. The strategy is due to be published later in November this year. All the activities are intended to make the Agency a partner to both large state-owned companies as well as small and medium private businesses. Working together with business and scientific institutions will lead to creation, adaptation and promotion of new and innovative products which will successfully compete in the global market. By building new and comprehensive support system, the Agency will create the best conditions for innovation i.a. by providing access to the resources of research and development institutions and special economic zones it manages. •
MOST ARE THINKING OF WAYS TO SURVIVE THE CURRENT TIMES.
WE KNOW HOW TO WIN THE FUTURE. The world does not change by itself. It is transformed by unique individuals and enterprises. They make a plan and act upon it. In doing so, they actively shape the world of tomorrow. And while some wait for what the future may bring, we prefer to create the future ourselves. We build it on precise planning and effective actions. We know what to do. And how to do it.
The last years mark a historic change
Marek Michałowski, a former long-standing President of the Polish Association of Construction Employers, President of the Supervisory Board of Budimex SA, talks to “Polish Market.” What has changed, in your opinion, in the construction sector over the last 25 years? Was it an abrupt change, or is the sector changing gradually? The last 25 years mark a historic change, unprecedented in the history of the Polish construction industry. Looking back to 1989, the sector was entirely state-controlled. And what did the market look like? Everything was collapsing. Empty shops, budget deficit, inflation degenerating into hyperinflation, a dramatic situation both for the whole country and for the construction sector, because if there is no money for food, people do not think about building anything whatsoever but rather wait for better times. And today, construction companies are almost entirely privately owned, some are doing well, some are doing less well, but overall the construction industry has evolved tremendously since 1989. According to various data, more than a million people are employed in construction companies. There is a gap between them in terms of technology. Today, Polish companies are fit to build virtually anything, regardless of size. During these 25 years, they have learnt a lot and building a power plant, 100 km of motorways and huge overpasses is no longer a problem. Polish technological thought is no worse than in western Europe, management policies in construction companies have changed dramatically, we are competitive. The market has expanded enormously, helped - let us say it clearly - by EU funds. Especially the last 5 years have seen a rapid growth. It must be stated, however, that it is not a stable pm
Today, Polish companies are fit to build virtually anything, regardless of size. 28 polish market
development. If you look at the growth rate graph over the last 25 years, it is still on the increase, but punctuated by ups and downs. The beginning of the 1990s was marked by a crisis, then the beginning of the 21st century again. Now we are having a clear slowdown, too. What caused that crisis? Basically, deterioration of the economic situation, a shortage of funds for public investment and lack of private investors both Polish and foreign. It was a very difficult period, but, paradoxically, it turned out to be useful as it undoubtedly speeded up privatization. Companies sticking to old methods and rules, and remaining under state control would not withstand an increasingly fierce market competition. This led to stepping up of privatisation but also to substantial technological changes. It was realised that expansionary policy (a lot of people, shovels, pickaxes etc.) is of little avail, that investment must be made in modern equipment, new technologies. Then, when we started construction projects co-financed from EU funds, companies were already privatised and much better prepared. However, contractors incurred heavy losses instead of making profit. This was caused primarily by a flawed Public Procurement Law, as well as a very restrictive policy of the General Directorate for National Roads and Motorways and other state investors. A devastating rule that only price matters governed tenders. Additionally, frantic deadlines were set because the government promised that the majority of the projects would be ready for the Euro 2012 football tournament, even if professionals knew that it was virtually impossible. Contractors were often selected completely unprepared and with no experience only because they offered the lowest price. Unrealistic deadlines imposed on them resulted in an unprecedented wave of bankruptcies. Even in economically most difficult times, there were never so many spectacular bankruptcies as under the EU-funded infrastructure programme. Let us hope that both parties have learnt a lesson and now, with the second tranche of EU funds, things will change for the better and the winwin cooperation model will be sought: beautiful infrastructure facilities will be built and contractors will earn money. pm
You mentioned that Polish companies already use western technologies, that management standards are better. Is there a chance that Polish companies could win tenders for investment projects funded under the new EU financial perspective? First of all, let us explain the basic word “Polish.” For me, Budimex, Strabag Polska, Skanska Polska are Polish companies. Even though owned by Spanish, German, Swedish or French groups, they are registered in Poland, pay taxes here, employ Polish managers and workers, so for me these are Polish companies. In this context, I believe that these companies will absolutely be the main beneficiaries of EU funds, and in general any investments implemented at this time in Poland. Are they going to make money? It is still a question mark and a high risk. On the one hand, companies have certainly learnt a lot, on the other hand even investors point out that the price will continue pm
30 polish market
to be an important factor in tenders, but not the only one. There is no longer such a frenzied time pressure. Previously, the problem was that the public sphere was not fit for purpose, therefore the first period was completely lost. In 2007, 2008 and in the first half of 2009, nothing was going on, it was not until the end of 2009 that something moved. Huge money was spent in a very short time, mainly in the run-up to Euro 2012. A rapid increase in prices followed, and investors were extremely rigid: “It’s a done deal, you should have complained earlier. The price is flat and we do not care that everything, materials, wages, have jumped 40-50%, it is your business.” The result of such thinking were bankruptcies. Today it is different. Tenders coincide with the launch of the new EU perspective, without a 2-3 years’ interval as previously. Besides, fortunately for the construction sector, in the next seven years we will not be organising any football championships, which means that we have the whole period of the EU financial plan to use these funds, so I am optimistic. But many investment projects would not have started had it not been for Euro 2012... No, I think they would have started anyway. The prospect of losing EU funds was enough to start. But there would not have been such a pressure to get everything ready for 2012. There would not have been such a mad rush. pm
What about the lowest price rule in tenders? You mentioned that this was one of the negative factors. The Public Procurement Law is evolving and the people realise that taking the lowest price as the sole criterion is pointless. On the other hand, it is about public money so it must be spent carefully and reasonably, so the price will always matter. Admittedly, the price is one of the most important factors in public contracts everywhere in the world, and this will not change. The novelty is the so-called prequalification, meaning a two-stage tender. In the first stage, all the participants are required to submit relevant papers to prove their eligibility. They must demonstrate their human potential, equipment, experience. In the second stage the companies are short-listed, which gives a 100% guarantee that the investment project will be completed, and only these companies are called to submit their bids. It allows to eliminate the so-called “companies-briefcases” with no potential and frantically repeating: “I will see when I win,” and exotic contractors, which may be big but have no experience of Polish reality. Thus, you can assume that the price will be reasonable. This model begins to break through, everything is going in the right direction. There is no such madness as before, when tenders used to be won for 40-50% worth of the investor’s budget. Today, winning bids cover up to 70, 80, and sometimes even close to 100% of the inverstor’s budget. You can see with the naked eye that the prices offered by contractors are close to the valuation of the investor and this bodes well for the future. • pm
October 2014â€‚ polish market
We are well prepared for
future Leszek Marek Gołąbiecki, President of Unibep, talks to “Polish Market”
The new EU financial perspective has got started. The previous one was very difficult for the construction sector. Is the 2014-2020 perspective going to be calmer and more friendly from your point view? How do you find the current legal situation with public tenders? The amended Public Procurement Law will enter into force in mid-October. I think that the situation in the sector is likely to improve as a result of the proposed changes. Importantly, the price will no longer be the sole criterion of selection and principles have been altered that led to imposing abnormally low prices. I hope that investors will use the amended law more wisely and will boldly choose the best as opposed to the cheapest ones - contractors. It is true that the construction sector has not really used the previous perspective and actually ended up in defeat. But you should not get angry with public procurement. The companies which, like Unibep, emerged unscathed from this difficult time are richer with new experiences and know how to take advantage of the upcoming opportunities. Most of our contracts are signed with the private sector, but we do not exclude increasing the ratio of public procurement in our construction portfolio - provided that the terms and conditions will be more favorable from the point of view of investors and contractors. pm
Your company has for many years maintained consistently high standards on a very demanding construction market, where you can often hear about bankruptcies. What is your key to success? There is no single answer to this question since a number of factors underlied Unibep’s success. I always say that it is people who make up a company, and it is thanks to their pm
32 polish market
involvement that we are able to compete and win both on domestic and foreign markets. The company has existed for almost 65 years, with the current employment of over 950 people. We had the opportunity to gain a wealth of experience and skills that puts us among the leaders of the construction industry in Poland. We are unquestionable leaders of some segments, particularly in residential construction in Warsaw, where according to independent rankings we are the most active general contractor! Our strength is the ability to organise best management. We are able to successfully complete almost every contract, because we have the necessary experience, operational staff and we can very well appraise our work. Not without significance is the fact that the majority owners of Unibep are individuals closely associated with the company and its staff. Domestic, and as a matter of fact local, capital results in managers’ emotional relationship with the company, which is not the case with other companies. Thanks to our experience, over the last 10 years we have built more than 12,000 apartments with a total area exceeding 750 thousand sqm. And at the moment we are building another 5 thousand flats for the largest Polish developers. That is a lot. However, we would not have achieved it had it not been for the trust of our clients. Investors see the effects and quality of our work at our construction sites, so they come back to us with further, larger orders. Let me add that we are the general contractor of Warsaw’s largest housing estates such as Saska Development, Zielony Żoliborz or Słodowiec City, a unique investment where 777 apartments will be constructed in only one stage. Another very important factor to which the Management Board pays particular attention is financial liquidity
Infrastructure and stability. Thanks to efficient management and safe contract procedures Unibep stands steady on his feet and is seen as a reliable performer both by investors and subcontractors. Also, we can not omit mentioning our presence on the Stock Exchange in Warsaw, something that gives us notoriety in our dealings both with domestic and foreign investors. Transparency required by the stock exchange is in our case very helpful. According to our knowledge, we are the largest construction company with Polish capital. We are also well prepared for the future; our portfolio of contracts in all segments - housing construction in the country and abroad, road construction, development and production - is record high. Presently, we have contracts signed worth more than PLN 4.2 billion, which will allow us to achieve this year the highest ever sale. The key to success is the profitability of our segments, each of them contributing to the final result. This makes us move with confidence through different markets. Unibep pursues investments in the hotel industry, mainly in Eastern Europe. Why are you interested in this market and what is the specifics of this particular branch of the construction sector? Does the construction of such facilities require special knowledge or technology? We have been present on eastern European markets since the 1990s. the beginnings were not easy, but hard work and consistency earned us a name of a fair and reliable contractor. In just a few years of operation, we have completed a wide variety of investments such as a biologics plant for the Russian company Bioton Vostok or a shopping mall in Moscow. Unibep has specialised itself in recent years in the construction of high-class hotel facilities, something which we are particularly proud of. We have already commissioned a few such investments, which have gained international recognition and awards. We have well-prepared staff for implementations on Eastern markets, but we can also fit out any facility according to the instructions of the investor. In the Kaliningrad oblast, Russia, we have built a 4-star hotel and business centre Radisson Sas. A facility of a similar standard was completed in 2012 – the Crowne Plaza hotel developed in the vicinity of the St. Petersburg City Airport. This year, we plan to commission a 4-star facility belonging to the Hilton hotel chain within the area of Moscow’s Vnukovo airport. We are extremely proud of a 4-star hotel Victoria, commissioned in April 2014 in Minsk, Belarus, in connection with the hockey championships, which took place in this city in May. The investment was completed according to the triple formula: “Design, Build and Fit Out.” This 16-storey high-rise is 100% the result of our work: starting with design, through general construction, to fit-out (we dispatched to Belarus more than 100 lorries with equipment). Our knowhow allows us to carry out even the most difficult and complicated investments, not just hotels. This year, we have also signed a contract in Siberia. Construction is under way of an apartment and office complex in the city of Tyumen, about 3,000 km away our seat in Bielsk Podlaski. The local investor has chosen us primarily due to our reputation and the “European quality” we represent. In 2013, we entered into a hotel-related market, namely that of retirement homes, in Germany. Today, after only one year of our presence on this market, we have four contracts pm
in progress and we plan signing subsequent ones with the same investor. Facilities are built in a traditional formula, but we hope that in the future we will introduce solutions provided by our production department - Unihouse. It is said that the modern economy cannot exist without innovation. How does it look like in your company? One part of the Unibep capital is the above-mentioned Unihouse. It deals with the production of wood-frame houses which, since 2009, have been conquering the Norwegian market. Unibep is the first company in Poland to have built a modular house factory, which was expanded last year. Unihouse is the largest Polish general contractor in Norway, developing residential premises using this modern technology. They are manufactured in the factory in Bielsk Podlaski in the form of modules or panels, and then shipped by sea and by land to the construction sites in Norway. The modules are turn-key finished, with wallpaper, painted walls, furniture and kitchen fittings as well as wiring, and then are sent to the sites where multifamily 4-5 storey blocks are built. In Norway we have already completed more than 700 apartments in this technology and another 500 ones are in progress. We work closely with the largest Norwegian developers and together we take great care of the quality of our products, which are highly valued on the local market. pm
The key to success is the profitability of our segments, each of them contributing to the final result.
What can we expect in the near future? Are any new investments going to be commissioned, any big ones perhaps? After the success of Victoria in Minsk, we are looking forward to commissioning another hotel. I mean the abovementioned Hilton in Moscow, which is now our largest contract worth more than PLN 260 million. The facility with a usable area of over 35 thousand sqm. is being built in the business district at the Vnukovo airport in Moscow. Like our other implementations, it will be a 4-star hotel with 440 rooms with a total area designated for hotel services over 11 thousand sqm. We are constantly placing offers in each of our business segments, we never rest on our laurels. I think we will shortly be able to boast of successive large orders. • pm
October 2014 polish market
Wa is changing
fot. Zbigniew Panów, pzstudio.pl
arsaw is changing – for its residents and thanks to its residents. The common goal of the investment projects undertaken in recent years in many spheres was to raise the quality and standard of life. We give preference to the parallel development of all areas in which the city functions so as to make life in the city easier and to ensure that it is a good place for one’s family, personal development and for pursuing one’s plans and aspirations. The biggest share of the money that the capital city has at its disposal is earmarked for the development of public transport. An efficient urban transport system is extremely important for such a large city as Warsaw. This is why the city is going to spend on this purpose over PLN11 billion under its Multiannual Financial Projection until 2022. The biggest investment project will still be the extension of the second metro line, which links districts located on the right and left bank of the Vistula river. The construction of the central section of the line has already been completed. Now, the line will be extended in both directions. The western section will have five and the eastern section six stations. Additionally, we are going to build 30 park-and-ride facilities in
34 polish market
the metropolitan area, expand the tramway network and buy new trams, buses and trains. The urban bicycle rental schemes will also be developed, in keeping with the city’s strategy for the sustainable development of the transport system. Under the strategy, bicycles are regarded as an important means of transport, on a par with other means. Another 200 kilometres of new segregated cycle facilities, and 40 kilometres of lanes and contraflow lanes will be added to the existing bicycle infrastructure, which is being expanded. Over PLN230 million is to be spent on bicycle infrastructure projects. In recent years the city has spent more than PLN5 billion on road-building projects. The goal set when planning them was to build new connections between the city’s districts to reduce traffic in the centre of the city, remove bottlenecks, raise traffic capacity and improve the standard of infrastructure. Equally important is building a good system of roads connecting the urban transport network with the S2 and S8 expressways and, through these expressways, with the national motorway network. This process will continue. We have money set aside for the construction of Warsaw’s inner ring road and Świętokrzyska Expressway, the modernization of the Marsa-Żołnierska route and Krasińskiego Expressway
rsaw for everyone
with a new bridge over the Vistula, and the redevelopment of the stretch of Wał Miedzeszyński Street to its future intersection with the S2 expressway. These are the biggest road-building projects planned for coming years. But at the same time new streets will be built to link new residential districts with the existing network of streets, like for example Czerniakowska-Bis, Gandhi, Ciszewskiego, Płaskowicka and Głębocka, and more than 100 local streets designed to improve transport within individual districts. This will be another PLN4 billion worth of projects which will change Warsaw. Education is the apple of the eye for the municipal authorities, with more than PLN1.7 billion set aside for investment in this sphere. Thanks to the construction of schools, kindergartens and crèches, at least 3,000 places for children younger than three and 4,500 places for kindergarten children will be created. The expansion of the Czajka sewage treatment plant at a cost of almost PLN3 billion was an innovative project by Europe standards and an extremely important one from the point of view of environmental protection. As a result, for two years now 100% of the sewage is treated and it no longer pollutes the Vistula. But investment in the water supply and sewage disposal system will continue. Successive areas of the city will be gradually connected to the system and the existing network will be modernized. There is a special focus on the construction of a sewage system in districts where most of the residential buildings are single-family houses, such as Wawer, Białołęka and Wilanów. Projects associated with environmental protection will cost in coming years around PLN3.8 billion. The construction of Południowy Hospital, expansion of Wolski Hospital and modernization of Praski Hospital are the most important projects in the healthcare sector. Their total cost is PLN870 million. The city also invests in housing - more than 2,800 homes were built in the past seven years. In the near future, the right-bank districts of the city are to see the construction of new residential buildings and the modernization of existing ones as part of a revitalization programme. Nearly PLN500 million
was set aside for this purpose. The city’s activities include measures aimed at improving the standard of services provided in nursing homes and expanding the network of family-based children’s homes. Investment in urban space is also planned. Apart from the modernization of council buildings, the revitalization programme, worth over PLN200 million, provides for investment in cultural institutions, squares, streets and social programmes. We are bringing the city closer to the Vistula river – among the most important projects, worth more than PLN200 million, is the development of areas along the river, and the construction of a jetty, bathing places and swimming pools. Over PLN660 million is to be spent on sports facilities, like for example the modernization of the Stegny speed skating rink and the development of open-air recreation areas in the former Włochy Fort. And more than PLN760 million is earmarked for investment in cultural institutions, including the Museum of Modern Art and TR Warszawa theatre, and the modernisation of the premises of the Sinfonia Varsovia orchestra. Warsaw has for years invested in activities aimed at improving the quality of life in the city. A number of these projects, financed partly by the European Union, are in keeping with the concept of smart city. The best example is of course the Nicolaus Copernicus Science Centre. Another one is the Smolna Enterprise Centre and projects associated with energy efficiency, like the Integrated Traffic Management System and the Cities on Power project, within which a solar map for a part of central Warsaw has been made. The plan for the sustainable development of Warsaw, which is now carried out, will be continued in the next years. Under the Multiannual Financial Projection until 2022, money from the municipal budget will be invested in all spheres of life. In this period, investment spending will total PLN 25 billion. In pursuing its ambitious investment programme Warsaw uses EU funding, its own resources, VAT refunds, money from municipal bond issues and from international financial institutions.•
October 2014 polish market
Metro is changing Warsaw
36â€‚ polish marketâ€Š
he construction of the central section of Metro Line 2 is nearly finished. The line goes across the centre of Warsaw and, running under the Vistula, connects the Wola and Praga districts. The construction of the Metro has contributed to promoting the additional role of large-scale key investment projects like this – they shape and change the environment, add a new dimension to it, and function as a stimulus for development. This phenomenon could be observed in the Bielany District, after the last section of Metro Line 1 began to operate. The signs of increased investment can already be seen in the Wola District, where old buildings are being demolished and replaced with higher and more modern office buildings. Each of the 7 stations has a different colour scheme which goes with the surroundings. The characteristic multicoloured canopies over entrances to Metro stations will function as a reference point and kind of signposts on Warsaw’s map. The distinctive colour schemes and the shapes of the canopies will not be the only features helping passengers and residents of the capital city to find their way in the new environment. The Metro also features extensive systems of underground passages which integrate various means of public transport. The central section of Metro Line 2 is equipped with its own state-of-the-art system of passenger information. Its structure enables you to get your bearings quickly and points the way to lifts, exits and ATMs. One of the distinctive features of the system is the numbering of exits. Thanks to this solution, passengers on the underground will be able to meet next to the selected exit without the need to refer to a site located nearby. Both the passages and platforms of the central section of Metro Line 2 are designed and constructed in such a way as to create a friendly space for all groups of passengers. The facilities introduced in the recent years on Metro Line 1 have already become standard. The edges of stairs leading to the platforms are marked with contrasting colours, and guiding lines were drawn. On the platforms, a broad strip of bumps delimits the secure area. Nappy changers have been installed in station toilets. The ticket area is delimited by lines of gates. Unlike the ones used on Line 1, the gates open by sliding glass panels sideways. They are also marked with contrasting yellow stripes. At the end of each gate line, there is a broader one, making it possible for people with large luggage, bicycles and prams to pass through. Glazed pavilions located in passages on the station’s mezzanines will soon become retail and service points. The total retail area over the Metro platforms is nearly 2.5 thousand square metres. Four stations will feature Public Transport Authority Passenger Service Points. The Świętokrzyska Station will undergo changes. Once the central section is opened, the station, located below the intersection of Świętokrzyska and Marszałkowska Streets, will become a transfer node between the two Metro Lines. It will also serve some passengers from the Centrum Station, which is used by over 80 thousand passengers a day, and the Ratusz Arsenał Station, which serves over 50 thousand people daily. The Świętokrzyska C11 Station located on Line 2 will be connected to the Świętokrzyska Station on Line 1 with a passage at the level of the platform and the mezzanine. The passage is equipped with an escalator.
Infrastructure There will also be changes to the environment of the new stations. Świętokrzyska Street has been modernised to become a friendly space for pedestrians and cyclists. The area neighbouring the Stadion Narodowy (National Stadium) Station has been completely transformed. Now it matches the green land surrounding the stadium. Benches have been installed among the lawns, and a cycle path has been created in the area. 25 old trees have been saved from logging and adapted to the new land-development plan. Nearly 30 new trees and over 4,000 shrubs have been planted. Alpine birch is a prevailing species in this area, while other places feature lindens and plane trees. The central section of Metro Line 2 will be operated by Inspiro trains. 20 out of the 35 trains purchased by Metro Warszawskie Sp. z o.o. will be used on this section. The analyses have shown that around 350 thousand passengers will use Line 2 every day. The plan is to deploy 15 trains in the peak hours, with around 2.5-minute intervals. In line with the contract, on 30 September the contractor of the construction submitted a document confirming that the investment project was ready to be put into operation. Work on building permit designs for other sections of Metro Line 2 are nearly completed. Environmental approval has already been obtained for 3 stations, which are planned to be constructed on the Praga District side. Soon, a tender will be announced for the construction of six more War• saw Metro stations.
October 2014 polish market
We connect people.
In a modern way. Miejskie Zakłady Autobusowe Sp. z o.o. 52 Włościańska Street 01-710 Warszawa Company office tel.: 22 568 75 49, fax: 22 568 75 50 Board secretariat tel.: 22 568 76 00, fax: 22 568 75 50 www.mza.waw.pl
www.mzamedia.pl UrbanINFO.tV FreeWifi.waw.pl email@example.com +48 22 568 75 21 +48 22 568 75 76
38 polish market
iejskie Zakłady Autobusowe (Municipal Bus Company) Sp. z o.o. is one of the largest transport companies in Europe. Every day 1,110 buses with the company’s logo drive on the streets of Warsaw, covering the distance of 250,000 km. Throughout the year, they carry almost half a billion passengers. The tradition goes back to 1920. Miejskie Zakłady Autobusowe Sp. z o.o. form the core of Warsaw’s public transport. We serve 147 day lines and 36 night lines. Every year, the equipment standard of our buses is raised. Presently, all the vehicles purchased are equipped with highpower (Mediterranean) air conditioning, systems of inside and outside electronic information and voice announcements, interior and exterior, ticket machines, facilities for the disabled, blind and partially sighted, passenger counting systems, and full internal and external monitoring. The company is focused on cutting-edge environmental solutions: our fleet includes four hybrid buses and 35 articulated LNG buses are being manufactured in a factory in Solec Kujawski. But real revolution will be the purchase of 30 electric buses in the next two years. The company’s infrastructure is changing too: depots are fitted with energy-efficient LED lighting, and we will soon use photovoltaic cells. Miejskie Zakłady Autobusowe Sp. z o.o. is the winner of the competitions: Mazovia Company of the Decade and Pearls of the Polish Economy.
Get advertised with UrbanINFO.tV, FreeWifi.waw.pl and MZAMedia.pl We offer advertising carriers outside and inside our vehicles. Outdoor advertising covers the classic fullback (the whole back of the vehicle) as well halfback (on the sides and the rear window of the vehicle). Inside the vehicles we offer even more opportunities to reach the passengersresidents of Metropolitan of Warsaw. Advertising posters in frames, more than 1,000 ticket machines, grab handles and electronic media devices are excellent marketing communication tools. UrbanINFO.tV is a new project of Miejskie Zakłady Autobusowe Sp. z o.o. By the beginning of 2015, we will have one of the largest networks of Digital Signage carriers in Poland. More than 550 vehicles will be fitted with 2,500 LCD screens. UrbanINFO.tV reaches over 600,000 passengers daily, making it possible to launch a rapid response campaign from day to day. The advantages of this modern medium are low emission start-up costs and flexibility in shaping the message. UrbanINFO.tV is an excellent source of information on your daily way to work, school or college. Advertising geolocation with UrbanINFO.tV as well as free-of-charge Internet for passengers (FreeWifi.waw.pl) point to the leading role of MZA as a modern transport company. •
New priorities for
Tramwaje Warszawskie (The Warsaw Tramways Company) undertakes many activities to improve passenger comfort. Passenger Information System (PIS) that allows to check departure time is being installed at tram stops. We are also introducing tram priorities in order to reduce the running time on the main tram routes.
he Passenger Information System is well-known in almost all major European cities. The system is based on electronic boards that display realtime departure forecasts at stops. Warsaw’s first real-time Passenger Information System boards were launched in 2008. Currently, there are 65 integrated PIS panels in Warsaw that were installed within the following projects: -“Modernization of the WZ tram route from the Cm. Wolski to Dw. Wileński with the purchase of 30 lowfloor trams”; -“Modernization of the Dworzec Wileński – National Stadium – Rondo Waszyngtona tram route with the purchase of 30 low-floor trams”; -“Modernization of the tram route along Aleje Jerozlimskie from Banacha loop to Rondo Waszyngtona. As a target, The Company intends to equip every stop of a newly built or modernised tram route with Passenger Information System. The system is prepared to serve at least 500 boards at stops. By the end of 2015 another 100 stops and also the most important interchange points throughout
40 polish market
Warsaw will have been equiped with the boards. Passengers will also be able to check departure forecast via the Internet through so-called virtual PIS boards or via SMS.
Tram priority in urban traffic Every European city make attempts to privilege public transport in urban traffic. In Warsaw, the task is theoretically easier, because most of the tram tracks are separated, which creates very favourable traffic conditions. That is the reason why the tram network is the “backbone” of the public transport in Warsaw. The average speed of trams in Warsaw is about 17.4 km per hour. According to experts from the Poznań University of Technology, under the current communication system, it could be raised to about 24 km per hour, depending on the programming of traffic lights. Decisions concerning the priority introduction are made by the Traffic Engineer. In the nearest future, we are planning to introduce tram priorities at 50 intersections, • and, as a target, within the entire tram network.
WE SPECIALISE IN: • paving work – pavements of natural stone, graniteand basalt setts, concrete slabs and setts; • trafﬁc engineering – trafﬁc system organisation design, road signs and markings; • green areas development – the development of greenery in parks and lawns; • playground construction – safety surfacing, playground equipment.
ZAKŁAD USŁUG BRUKARSKICH „ADROG” SP.J. ADAM DYBCIO, EUGENIA DYBCIO Registered ofﬁce: 00-388 Warsaw, ul. Dobra 6 m. 14 Business ofﬁce: 03-289 Warsaw, ul. Ostródzka 213 Tel. 0-22 510 70 60 Fax 0-22 510 70 70 firstname.lastname@example.org
największa kooperacja firm rodzinnych w sektorze dystrybucji materiałów budowlanych w Polsce
Dynamika rozwoju sieci handlowej Grupy PSB, 1998-2014
GRUPA POLSKIE SKŁADY BUDOWLANE S.A., Wełecz 142, 28 -100 Busko-Zdrój www.grupapsb.com.pl
10th International Symposium
“Industrial Property in Innovative Economy - From Idea to Profit: How to Build an Innovative Business” The Polish Patent Office organised, on 4-5 September 2014, the 10th International Symposium in the series “Industrial Property in Innovative Economy.” This year’s edition was titled “From Idea to Profit: How to Build an Innovative Business”.
uring the symposium, extensive speeches were delivered by Iwona Wendel, Undersecretary of State in the Ministry of Infrastructure and Development, Carsten Fink, Chief Economist of the World Intellectual Property Organisation, Yoshitake Kihara, Deputy Commissioner of the Japan Patent Office, Prof. Jerzy Hausner from the University of Economics in Kraków and many other distinguished experts from Poland, Britain, Israel, US, Germany, New Zealand and Finland. Marek Sowa, Marshal of Małopolska, addressed a special message to the participants, stressing that “a innovation strategy is based on the development of entrepreneurship through increased cooperation between science and business, and on defining the areas of smart specialisation that will determine the directions of the innovative economy.” The annual international symposia in the series “Industrial Property in Innovative Economy” cover issues related to technology transfer from R&D units to industry, valuation of inventions and assessment of the risks associated with their implementation, the risk management in the field of industrial property, the role of intellectual property in business strategies of companies, the ongoing processes of commercialisation of technological innovations and the financing of innovative projects. As part of the symposia, panel discussions are held looking into the practical aspects of industrial property. The symposia are attended by representatives of Polish and foreign universities, research institutes, financial institutions, international organisations, foundations and non-profit organisations and public sector entities associated with the creation, financing and implementation of innovative solutions. Eminent experts
from Poland, Europe, the US, Israel and the Far East are invited to share their views. The economic role of intellectual property protection is becoming increasingly important on a global scale, which is acknowledged by the World Trade Organisation (WTO) and the Organisation for Economic Cooperation and Development (OECD). Therefore, the global economic exchange, which increasingly relies on values related to intellectual property, requires instruments of protection effective in a variety of economic and cultural areas. Such solutions are worked out through extensive cooperation with international organisations, including in particular the World Intellectual Property Organisation, an active member of which is the Polish Patent Office. Given the global economic situation, this year’s symposium aimed to identify the existing barriers to innovation and to search for effective systemic solutions that encourage entrepreneurs to invest in innovations and their implementation, despite the complex macroeconomic conditions. The symposium enabled the establishment of a dialogue and a wide-ranging cooperation in order to develop solutions that open up new prospects for development in confrontation with the dynamically changing requirements of an innovative economy at the national, European and worldwide levels. Building such a relationship was facilitated by the workshop formula used during the symposium. The aim of this year’s symposium was mainly to stimulate innovative thinking in business and science, as well as to start a discussion on the current problems of innovation and entrepreneurship, not only in Poland, but also on the global market. In this context, the key role is played by industrial property, which is a universal and essential tool intended to build a competitive advantage and
pursue internationalisation of business based on innovative solutions and ideas. Individual sessions provided practical guidance on how to obtain external funding for innovative activities as well as examples of projects that have seen international success thanks to effective strategies of industrial property protection. This year’s symposium was also meant to identify existing barriers to the growth of innovation in Poland and to search for effective solutions to encourage entrepreneurs and investors to finance research and development aimed at innovation. Moreover, the issue was raised of investment processes associated with the effective implementation of innovative solutions. The symposium was attended by over 300 participants, including representatives of many Polish universities and research institutes, financial institutions, international organisations, foundations and non-profit organisations and public sector entities associated with the creation, financing and implementation of innovative solutions. The symposium was organised on the initiative of the Polish Patent Office, in cooperation with the World Intellectual Property Organisation, Jagiellonian University, Kraków University of Technology, AGH University of Science and Technology in Kraków, Kielce University of Technology, Wrocław University of Technology, Office of the Marshal of the Małopolska Region, Polish Chamber of Commerce, Centre for Information Processing and Polish Clusters with the support of a number of partners. The event was held under the patronage of the “Prestiż” and “Pol• ish Market” magazines.
October 2014 polish market
With Ukraine and energy security in the background The 24th Economic Forum in Krynica, “Polish Davos,” has ended. It is the region’s largest annual meeting of business people and politicians organised since 1991 by the Warsaw-based Institute for Eastern Studies and its founder, Zygmunt Berdychowski. Patryk Mirecki
his year’s Forum included more than 180 events: plenary sessions, panel discussions, reports and presentations. Among the panelists were mostly CEOs of the largest companies - market leaders. There were also, as usual, politicians: from Poland, CEE region and the EU. Among Polish politicians, however, Donald Tusk, a regular of the Forum in previous years, was conspicuous by his absence, probably in connection with his appointment as President of the European Council. “In the face of a changing geopolitical situation and economic stagnation in Europe, the question is crucial about the role of the defence sector in driving economic growth,” said Jan Krzysztof Bielecki, Chairman of the Economic Council to the Prime Minister, during one of the debates. “You can see that there are countries where a well-developed defence industry stimulates the economy. It can stimulate primarily two areas of the economy: research and development and exports,” believes the former Prime Minister. Likewise, Jarosław Kaczyński, leader of the PIS party, referring directly to the armed conflict in Ukraine, argued during one of the debates that Poland needed to increase its defence effort. According to the participants of the panel discussion on the future of coal, it was, is and will remain an important element of Poland’s energy mix. President of the PGE energy company Marek Woszczyk pointed out that today more than 30% of primary energy worldwide comes from coal: it accounts for 40% of electricity generation and 70% of steel industry output. This shows that coal
44 polish market
will remain one of the world’s most important energy sources. During another panel discussion, President of the Polish Oil and Gas Company (PGNiG SA), Mariusz Zawisza, argued that in order to provide a desirable level of energy security, we should rely on long-term contracts with fuel prices immutable over years, build storage facilities and complete the construction of the LNG terminal in Świnoujście. According to Zawisza, once the LNG terminal is operational, it is expected to process up to 5 billion m3 of gas a year. If you add to this 7.5 billion m3 we can derive from outside Ukraine, and approx. 4 billion m3 from domestic sources, it should in total meet the country’s needs in terms of gas consumption. In a brief conversation with “Polish Market” PGNiG’s President said that this year, earlier than usual, in the context of Russian-Ukrainian conflict, a surplus of 2.5 billion m3 of gas has already been secured. This will further strengthen our demand for gas. Deputy Prime Minister and Minister of the Economy Janusz Piechociński was the highest government official present at this year’s Economic Forum in Krynica. He pointed to concerns in Europe and tensions around it: in Ukraine, but also in Libya, Syria, Afghanistan, Egypt, Iraq, Iran, and Israel. “Something has changed around us. We have been witnessing a growing radicalisation and mounting unrest close to Europe more than ever, and even in Europe,” stated Piechociński, speaking about the economic impact of these conflicts. In his view, Europe has lost its competitive advantage and barely made its way through the global crisis. “Even the optimistic estimates of
December as to the direction of the development of the European economy in 2014 were not confirmed – Germany’s GDP will not be 1.5%; if it stands at 0.6-0.8% it will be great,” said Janusz Piechociński. During the Economic Forum in Krynica the PKP railway company announced important transactions, reinforcing the potential of Poland’s leading rail freight carrier, PKP Cargo. The company has just signed a letter of intent regarding the potential acquisition of a 100% stake in CTL Logistics. “In Poland there are dozens of rail freight market players. Given the progressive liberalisation in Europe and the increasing competitiveness of railways in Poland, consolidation processes are inevitable. PKP Cargo wants to be part of them. We are prepared in terms of finance, know-how, resources, turning our potential into business growth, and thus the increase in the company’s value. The letter of intent is one of the elements of pursuit of our ambitious goals when it comes to mergers and acquisitions,” commented Adam Purwin, CEO of PKP Cargo. As every year, the Economic Forum Programme Council presented its awards. The Man of the Year 2013 was Janusz Lewandowski, an economist and politician, until recently EU Commissioner for Budget, currently member of the European Parliament. The Company of the Year 2013 was PZU. The prize New Culture of New Europe went to Serhiy Zhadan, a Ukrainian poet, writer and translator, involved in the democratic changes in Ukraine. The Non-Governmental Organization of the Year 2013 was Association Siemacha from Kraków. •
has to respect the natural environment
oland is one of the European Union countries which are the most independent in terms of energy resources. It is in our country’s interest to at least maintain the existing level of its energy security based on indigenous fuel resources. Polska Grupa Energetyczna (PGE SA) has been sharply reducing harmful gas and dust emissions as it understands the need for business to respect the natural environment and actively supports this idea. Poland’s indigenous resources of fossil fuels are large enough to ensure the security of electricity supplies for the country for decades. The production of electricity based on indigenous coal deposits guarantees low electricity prices, apart from giving the country a significant degree of energy independence. In the context of the present economic slowdown, one should remember that the mining and energy sector provides employment to around 300,000 people. This means it is one of the largest occupational groups in Poland. It is worth stressing that Poland has conscientiously fulfilled its obligations under the Kyoto Protocol, which requires that its signatories should cut greenhouse gas emissions, including emissions of carbon dioxide. Compared to 1990, the Polish power industry has already reduced the emissions by over 30%, more than any of the 15 countries which were EU members before the 2004 enlargement. At present, Poland is responsible for around 8.8% of the total amount of carbon dioxide emissions in the European Union. The contribution of the Polish power sector to the world’s total carbon dioxide emissions is nominal. At around 0.29%, it is within statistical error. In per-capita terms, Poland’s emissions are also relatively small – close to the EU average and below the level of emissions generated by the leading EU economies. The PGE group is the undisputable leader in Poland when it comes to installed capacity and the volume of electricity produced. We have an around 40% share in electricity production in Poland and an around 26% share in the electricity distribution market. The group employs over 41,000 people and has 12.8 GW of installed capacity. One should also note that PGE emits much less carbon dioxide than leading energy groups in the European Union.
PGE is in the process of implementing an ambitious investment programme, which will significantly contribute to reducing its environmental impact. In 2014-2020, we plan to spend PLN16.3 billion to modernize our generating units. The money will be earmarked for projects designed to raise our installed capacity and efficiency, and in particular to enable us to meet the requirements for the emissions of sulphur dioxide (SO2), nitrogen oxides (NOx) and particulate matter. PGE is going to spend a similar amount of money on the construction of modern coal-fired generating units in the power stations in Opole and Turów. The new units will have a total capacity of almost 2.3 GW and will be gradually replacing the existing old units. The projects will have a favourable impact on the natural environment because carbon dioxide emissions from the new units will be much lower - up to 25% - than from the older units. Thanks to the planned investment projects, by 2016 PGE will also reduce its emissions of sulphur dioxide, nitrogen oxides and particulate matter by around 60%, 40% and more than 50% respectively. It is worth noting that these will be additional reductions, which will add to those already made. In recent years PGE has already made drastic cuts in emissions from its power stations – by 80% for sulphur dioxide, 40% for nitrogen oxides and as much as 97% for particulate matter. PGE also invests in renewable energy sources. The group already generates more than 10% of renewable electricity in Poland. Our wind and water power stations generate enough electricity to meet the needs of several hundred thousand houses. In keeping with PGE’s strategy, more wind farms will be put into operation in 2014-2016. By 2016, 246 MW will be added to the existing wind power capacity compared to the end of 2013 thanks to the most advanced investment projects. Further projects, which would add around 800 MW of capacity, are being prepared. Whether or not they will be carried out depends on the ultimate shape of renewable energy sector in Poland. One of the most important projects in the area of lowemissions generating units carried out by PGE is the construction of Poland’s first nuclear power plant. The construction of the first generating unit is to begin around 2020. •
Marek Woszczyk, president of the PGE SA electricity group
Business October 2014 polish market
“I hope that the Law on Renewable Energy Sources will be enacted before the end of the Parliament’s term of office. “Renevable energy sources must be seen as an opportunity for the region’s development. Our country lacks a strategic approach, which is reflected in the absence of appropriate legislation. I hope that the Parliament will manage to adopt the Law on Renewable Energy Sources in the current term and the new government will be more prompt in launching relevant RES mechanisms,” said former Prime Minister Waldemar Pawlak during the Polish Renewable Energy Congress in Gdańsk.
The situation in Ukraine is a chance for us to strengthen the energy independence of our country. Today is a moment for a new opening and the new government should be more prompt in launching relevant RES mechanisms so as to avoid power shortage,” Waldemar Pawlak said. According to Mieczysław Kasprzak, MP, the upcoming general elections will not affect the pace of work on the Law on RES. “The elections have the least impact on its enactment. Other factors have much more influence on the legislative process. Currently, despite the fact that the Parliament is prepared for a quick adoption of the law, all scenarios are possible,” he said. Experts present at the Congress stressed the advantages of the development of renewable energy sources in Poland. Mayor of Kobylnica Leszek Kuliński said that in 2016 the State budget will collect PLN 10-12 million from RES facilities. By contrast, President of the Polish Offshore Wind Energy Society Mariusz Witoński pointed to the importance of western Europe’s booming offshore industry for the Polish shipbuilding and maritime industry. “There is no shipyard in the Tri-City, which would not provide services for the offshore sector. The domestic shipbuilding industry is developing in this respect only thanks to orders from abroad,” stressed the expert.
“Politicians should look further than the end of one term in office, but they lack visionary ideas and courage. Why are we dismayed in Poland at the target of a 27% share of RES by 2030?,” asked Mariusz Witoński. “Other countries in Western Europe are talking about a 40, 50, 60, or even 80% share of renewables in the energy market,” he added. In his opinion, it is not only a matter of technology, but of a vision and determination to fulfil it. During the conference the implementation of the renewable energy targets by 2020 was also highlighted. If the new support system comes into force in 2016 and the auctions are announced in the second half of 2016, the first investment projects will only start in mid-2017. In this situation, the 2020 target will be difficult to achieve. The extension of the transition period will reduce this risk. The Congress also addressed the issue of protests against RES. The resolution of this issue was suggested by an investor in wind energy industry. “Money from the surplus of energy generation should be transferred to a specially created entity, for example a foundation to which only citizens have access. These funds would be spent on any locally-defined aim,” argued Jean-Claude Moustacakis, President of Green Bear Corporation Poland. The development of RES in communities should constitute a reason for reelecting a politician, and not to dump him or her. Anti-turbine protests have only political
From left: Teresa Kamińska - President of the Pomeranian Special Economic Zone; Waldemar Pawlak - MP, former Prime Minister and Minister of the Economy, President of the Polish Economic Congress Foundation ; Mieczysław Kasprzak - MP, former Deputy Minister of the Economy
significance. When there is a chance to remove a mayor from the opposite party, politicians go there and stir up the inhabitants. Congress participants appealed to politicians to find urgently a solution to the legislative problems of • the RES sector.
46 polish market
August 2014â€‚ polish market
New mechanisms for
improving the security of the national power grid Henryk Majchrzak, president of PSE SA
SE, as the operator of the Polish electricity transmission system, has to be prepared for every situation that may take place in the national power grid and to ensure that the grid is reliable and well balanced. This is why, apart from the expansion and modernization of the transmission lines and substations, carried out on an enormous an unprecedented scale, we have implemented several important projects, which have reduced the risk of electricity shortages. PSE has recently signed agreements on supplemental generating capacity (non-spinning reserve) with the Tauron Polska Energia and PGE GiEK companies. Thanks to the agreements, PSE will have 830MW of non-spinning reserve in the years 2016-2017, with a possible extension of the period until 2019. This is an important factor reducing the risk of power outages. Another tool improving the situation in the electricity system is negawatts. It is a demand reduction service rendered by consumers to the operator of the power grid. In 2013, we signed an agreement with PGE GiEK, which – on the basis of the potential of its brown coal mine in Bełchatów - renders the service, reducing demand by 25MW in the period from October to March and 30MW in the period from April to September. In July this year, we signed an agreement on demand reduction on the request of the transmission system operator with the Gdańsk-based Enspirion company, which will be aggregating these services and coordinating the reductions using the technical resources of 13 companies located throughout the country. As a result of the tenders conducted so far, we are able to reduce capacity by 45MW in winter and 50MW in summer. And this is not
48 polish market
all. In July, we invited tenders for the same services for 200MW. Despite the introduction of all these mechanisms, we cannot say that Poland is completely free of the risk of electricity shortages. This is the reason why we are constantly developing and successively implementing new precautionary mechanisms, which will enable the national power grid to operate reliably in the situations of temporary shortages of generating capacity, which are possible after 2015. The mechanisms are the successive tenders for the purchase of such services as non-spinning reserve and demand reduction on request of the transmission system operator (negawatts). Apart from these services, since July 2014 we have enabled consumers to submit load reduction offers, as one of the market-balancing mechanisms. It is another stage in the development of the negawatt market. In contrast to the programme of the failure prevention service, which is to be used outside the market, it is possible to submit negawatt offers on the balancing market every day. The non-spinning reserve of generating capacity will be supplemented by the operating reserve, a mechanism which came into force at the beginning of 2014 by the decision of the president of the Energy Regulatory Office (URE). Additionally, thanks to installing phase shifting transformers on electricity connectors with Germany, we want to be able to import 500MW. We also have to create conditions for connecting new power stations and renewable energy sources to the power grid, and develop crossborder connections. An efficient and welldeveloped network infrastructure – transmission lines and substations - is needed in order to effectively implement these tasks. As a result, investment is now increasingly important.
Investment in electricity infrastructure as one of the main factors determining Poland’s energy security Our investment activity is focused on developing 400hV lines, which have a higher transmission potential, with lower electricity losses. Our development and modernization plans include investment tasks aimed first of all at improving Poland’s energy security, but will also contribute to reducing losses in the transmission network. Among them is the gradual replacement of the existing 220kV network with a 400kV network and the implementation of a multiannual programme of replacing existing transformers with transformers enabling lower losses. To ensure more reliable electricity supplies to end-users, it is necessary to increase the number of substations, build new transmission lines and improve the state of existing crossborder connections. The company has been making preparations for this very ambitious investment process for several years now. We have worked out and implemented a new efficient investment model. And thanks to a long-term tariff we have secured a significant share of the funding we need. This is enormously important because a substantial amount of money is involved - PSE is going to spend PLN7-8 billion on the planned investment projects over a period of five years. •
August 2014â€‚ polish market
Enviromentfriendly and safe energy “The total power of sea waves and wind in the world is estimated at around 7,000 terawatts. Using only 5% of this energy would be enough to meet the needs of 20 billion people on earth.” Waldemar Piskorz Kodeń – a village in Lublin province, 195 kilometres from Warsaw, close to the Polish border with Belarus On September 6, 2014 we took part in an international presentation of the vertical-axis wind power plant designed by Waldemar Piskorz, a local businessman and inventor.
The power of wind and water
The observation of the elements and the desire to utilize their power in practice has been Waldemar Piskorz’s passion from his youngest years. In 2008, he designed and patented a prototype of a vertical-axis wind turbine as a solution to a specific problem – supplying electricity to a recycling plant. In 2010, he already had many new models and concepts developed in conjunction with his sons Tomasz and Ireneusz. As he said at the presentation, he had not imitated any existing solutions or technologies. His ideas were based exclusively on technical logic and the laws of physics. Today, as a family, they hold several patents, including for a vertical-axis wind turbine and
52 polish market
water and air power plant. They continue to work on further improvements and optimizations of their designs while constantly raising quality. The inventor said they were ready for starting the serial production of vertical-axis turbines and expressed his conviction that it was worthwhile to spread the ideas of creating the common technological good needed by humankind and preventing the degradation of the natural environment.
Why the invention is so awesome Using the kinetic energy of wind, the turbine can drive generators of any size, pumps, compressors and many other devices. It is reliable, simple in design and easy to install. It can be installed in places, like for example the roofs of buildings, where you cannot install conventional wind turbines.
Its modular design means that any number of rotors can be put together to meet the specific needs of the customer. The turbine may be fixed or mobile. It is easy to transport and operates in extreme conditions – it is very resistant to climatic conditions, sand, flooding, snow, frost and so on. It can operate in combination with other energy sources. It enables energy storage irrespective of the direction and power of the wind, which means it can work continuously. It has excellent energy gain parameters. It can operate with a wind speed of only 1 metre per second (3.6 km/h) but also when the wind speed exceeds 200 km/h. In contrast, the speed range for conventional wind turbines is from 4 to 97 km/h.
The generators, compressors and other complementary components are readily available on the market. The ease of installation in any conditions and on any surface makes it possible to use the turbines for such needs as the watering of fields and driving any kind of engines.
The turbine meets all legal requirements, is stable and does not resonate. It is environment-friendly, and does not harm birds and other animals. The turbine is quiet – irrespective of how strong the wind is, the noise produced by directional steel nozzles and vertical steel panels does not exceed 40 decibels. After the end of the turbine’s lifespan, which has been calculated to be 50 years, almost every part of it can be recycled.
Kodeń wind power
plant in numbers
The wind power plant in Kodeń is made up of 27 modules – three columns with nine modules each. It is 29 metres tall. For structures of this height no environmental tests and reports are required. The columns, connected with each other by strong horizontal sections, form a cuboid structure with an equilateraltriangle base. The structure is placed on a concrete foundation with a diameter of 13.5 metres and 2 metres deep. Single modules, each with a height of 3 metres and a diameter of 2.5 metres, can be mounted on mobile bases. One module can generate 2 kilowatts of power when the wind speed is 1 metre per second and 20 kilowatts when the wind speed is 13 metres per second. The maximum height of a column is 60 metres. Work is now underway to enable storing the excess power generated during strong winds in compressed air or converting it into the potential energy of water so as to stabilize the operation of the power plant as much as possible and ensure a continuous supply of electricity. Sebastian Bogusławski, president of EcoSol, a company which has entered into a partnership with Waldemar Piskorz, said that before meeting the inventor a year ago he had not expected the invention to be so important. It turned out, however, that what the company was proposed was a feasible investment project rather than a far-fetched fantasy, as is usually the case. Apart from professionalism,
the designers had a passion and confidence in their solutions, which are so different from the wind turbines we all know. “We quickly understood it was a chance to show Poland to the world as a place where modern technological solutions are developed and where people are not indifferent to the fate of the earth,” Sebastian Bogusławski said. The Eco Sol president pointed to the simplicity of the design, ease of installation and flexibility, both in terms of generating capacity and place. “The facility we can see here,” he added, “can produce around 0.5 megawatts of electricity when the wind speed is around 13 metres per second.” In its recent regulations, the European Union requires that independent energy sources should be built in ports. The invention can also be used by small and medium businesses, wind farms, the mining industry and other sectors. Sebastian Bogusławski praised the inventors for their persistence and determination and for solving extremely difficult technical problems. “I have believed in this idea and am convinced that it is a facility with maximum efficiency.” Sebastian Styczyński, who represented the Ministry of the Economy, read out a congratulatory letter on behalf of Janusz Piechociński, deputy prime minister and minister of the economy, and Jerzy Pietrewicz, who is responsible at the ministry for the energy sector. The authors of the letter stressed that until 2000 Poland had used exclusively conventional resources. Fourteen years ago the decision was taken to diversify and support the development of the renewable energy sector. Appropriate legislation was adopted and public funding was made available for such projects. At present, renewable energy has
a 10% share in Poland’s energy mix. New investment projects are mushrooming but the facility in Kodeń is the first one on such a big scale in Poland. The power plant was blessed by Father Bernard Briks, the parish priest in Kodeń, which is the site of a famous Marian shrine. “For a long time people have stolen electricity because it has always been too expensive. This practice continues. This facility also steals. But it steals wind from God and we are convinced that this theft will be a blessed sin, that this business will develop and that we will have more environment-friendly electricity and that it will be cheaper.” Zbigniew Nowak, a well-known Polish practitioner of alternative medicine, said a few words at the end of the official part of the meeting as a supporter of the facility. He praised the inventors and their genius and said that even Nikola Tesla – the inventor of the electric engine, AC generator, autotransformer, bicycle dynamo, radio, water power plant, solar battery, Tesla coil (electrical resonant transformer circuit), Tesla turbine and fluorescent lamp - would have been proud of their invention. Many people have a grain of genius in themselves. For this genius to develop they need wide support – not merely financial and logistical - from people around them. Luck is also indispensable. “I am here to secure this luck, to ensure that the initiative develops favourably and produces the expected – or perhaps even bigger - benefits. Looking at this exceptional, brilliant solution, I know this is possible,” Zbigniew Nowak said to conclude • his remarks.
From left: Sławomir Górecki, vice-president of Eco-Sol, Sebastian Styczyński of the Ministry of the Economy, Father Bernard Briks, Zbigniew Nowak, Waldemar Piskorz, the inventor of the vertical-axis wind turbine, and Sebastian Bogusławski, president of Eco-Sol Photo: Aleksandra Krajewska-Nowak
October 2014 polish market
Wholly Polish technology
appreciated Sebastian Bogusławski, president of Eco Sol, Ireneusz Piskorz, president of Sol Produkt, and Sławomir Górecki, vice-president of Eco Sol and Sol Produkt, talk to Patryk Mirecki.
You have just started activity in the wind energy sector in Poland. How does it differ, in terms of the legal environment and climate, from the wind energy sectors in other European Union countries? In Poland, the wind energy sector is already well developed. But for about two years now we have been waiting for a law on renewable energy sources to become effective. The draft is still in the parliament. The sector, waiting for the final decisions about the law, has come to a standstill to some extent. There are many frozen projects. This is an important problem, especially for foreign investors who do not accept unpredictability. Investment projects in this industry take many years to recoup their costs so legal stability is vital. But considering that the coming into force of the law has already been put off several times and it seems that work on the draft has no end, there is some dissonance among investors. However, looking in a longer context, the wind energy sector has been developing in Poland for quite a few years now, although it is still less developed than in Germany and Austria. There is still quite a wide gap between us. pm
54 polish market
The “old” Europe is already at a stage when they have come to face the problems that we do not have yet. One of them is a shortage of new locations for wind power projects. Wind energy is a controversial issue, not only in Poland. Indeed. However, the controversy – at least in Poland - is about the conditions for the operation of conventional wind turbines (windmills). Meanwhile, our firms promote an innovative method of wind power generation: vertical-axis turbines. And we show that wind power can be used in an environment-friendly manner. pm
Is wind power generation economically justified in Poland only in coastal areas where – as it seems – there is enough wind? Every country has its own specific conditions for energy generation. In southern Europe, there are countries which have much better conditions for the production of solar energy than Poland and worse conditions for the production of wind energy. The selection of the right place is important for the efficiency of a wind power pm
system. In Poland, the choice should be preceded by analysis of the area’s windiness. The conditions have to be optimal because they determine the efficiency of the facility – the number of electricity generation hours. In turn, all this has an impact on the project’s payback period. Building such facilities, especially in coastal areas, is certainly economically justified. The areas are windy and additionally they are lowland. However, potential places for our activity are not limited to coastal or mountainous areas. Actually, it is possible to find a place with suitable wind conditions for our wind turbines in every part of our country and abroad. Our model wind power plant is located far from the sea – in the village of Kodeń near Terespol, close to the Polish-Belarussian border. What is the difference between conventional windmills and the wind turbine your firms offer? The wind energy sector is associated primarily with windmills. We all know them and we know how they operate. These are relatively large structures, which require specific pm
Energy conditions, not only in terms of the wind but also the environment. We propose systems which look quite differently. These are towers without a vane. They resemble large chimneys. The part which uses wind power, a rotor, is placed inside the chimneys. Our wind turbine is divided into segments. Each is three metres high. Consequently, we are able to adjust its capacity and size to the energy need. The segments can be put on top of one another. There is still a significant constraint associated with height. An environmental approval – and it often takes several months or even a year to receive one - is not required for wind turbines not higher than 30 metres. This means that we do not need the approval for a turbine composed of nine segments, each three metres high plus a two-metre-high electronic part at the bottom, which converts wind power into electricity. Our power plant is composed of three towers connected with each other. At present, the maximum height of a tower is around 60-80 metres. A 30-metre tower, for which an environmental approval is not required, has a nominal capacity of 0.5MW with a nominal wind speed of 13 metres per second. What kind of customers can use electricity produced by your turbines? We can see two types of customers. One could be large wind farms, where our turbines would replace windmills. Our second business model would be to sell smaller systems tailored to the needs of individual households and small and medium businesses. We can adjust the height of our systems, and the number of towers and segments to meet the customer’s electricity needs. If a small business needs a capacity of 1MW it would be necessary to use six towers instead of three. And if a small household does not need 0.5MW but only a few dozen watts a turbine composed of two or three segments would suffice. pm
What wind strength is needed for your turbine to start operating? It starts generating electricity with a wind speed of about 1 metre per second compared to at least 4 metres per second for windmills. Our research shows that our turbine can even work with a wind speed of up to 200 kilometres per hour. In such conditions windmills have to be shut off because they may be damaged. As you can see, our turbine can operate both when the wind is relatively light and when it is strong. As a result, the time when it generates electricity is significantly longer compared to a windmill. Let me add that a rotating windmill makes a significant noise, which is a nuisance to the environment. In contrast to windmills, our turbines are quiet. What is more, they pose no danger to birds and do not require building a network pm
of paved roads, as windmills do. They can be placed relatively close to each other – at a distance of 20-40 metres. As a result, their density per square kilometre is significantly higher than is usually the case with wind turbines. How do you assess demand for your turbines in Poland and abroad? After the official presentation of our vertical-axis power plant, we have seen great interest in our turbines, especially from small and medium businesses, which are looking for a solution to their electricity needs. With such a vertical-axis power plant, the firm would have its own electricity to be used for its own needs and would not have to pay transmission charges. In Poland, transmission charges account for a significant part of an electricity bill. What is more, owners of our turbine could feed their surplus electricity into the power grid and earn an additional income. At present, we are in the process of negotiating and signing the first contracts. First, we want to sign contracts with small and medium businesses and build a few systems. Then, we would like to build a large wind farm. We have also noted great interest in our product from customers in other countries, even such distant ones as Malaysia and Kazakhstan. We also expect to attract the interest of businesses operating at port wharves because, under EU regulations, they are required to have their independent source of energy. Our turbines do not need much space to be installed, in contrast to windmills. And we know that winds in sea ports are strong. Using the power of wind, we can also compress air. In this connection, we are in talks about using our vertical-axis wind turbines in coal mines to pump compressed air underground. The air would drive any kind of equipment used in coal mines. For safety reasons, the mines cannot use such fuels as oil; they have to use compressed air. We also want to offer on the market a stable vertical-axis wind turbine. pm
How does it work? It enables storing excess energy, which the turbine user is unable to consume for their own needs. The energy could be stored either by compressing air or by pumping water up. The stored energy could be used at a time when there is no wind. pm
Who has designed the turbine? The patent for the vertical-axis wind turbine is held by Polish designer from Kodeń, Waldemar Piskorz, and his family. The turbines will be manufactured by Sol Produkt. We have also set up another company, Sol Serwis, which will be installing the turbines on the customers’ premises and servicing them. Our third company, pm
Eco Sol, is responsible for selling licences for our product outside Poland. What is the cost of the operation of your vertical-axis wind turbines? In fact, it is the payback period that is important: the number of years needed for the project to pay for itself. We are convinced that without any subsidies from the state the payback period will be six or seven years. It is also important how much electricity the system can produce. We estimate that the efficiency of our facilities will be significantly higher than that of existing ones. pm
We talked at the beginning about the draft law on renewable energy sources the parliament is now working on. What can be done in the regulatory sphere to give momentum to the wind power market? To be frank, we are not experts on this law. The draft has been changed so many times. But earlier, the state encouraged investment in solar energy, with subsidies for solar equipment. Poland is not among the countries with the highest insolation. But it was a step taken by the state to encourage investment in green energy. We think that the state should create conditions which would make it easier for us to reach the consumer because it seems that electricity generated by our turbines will be attractive for small households in many places in Poland. We would like the state to create programmes of subsidies for household consumers. Let us not forget that every electricity generation system based on wind power, like one based on solar power, means a significant expenditure in a household budget. If there were credit lines or programmes promoting green energy and spreading the initial cost of the system over time, as was the case with solar panels, our product would certainly be attractive for our prospective customers. But we are still uncertain whether this will indeed happen. We propose different numbers of the segments, depending on the needs. Our systems will be tailored to the specific needs of the household, both in terms of the amount of electricity produced and price. So the expenditure should not be shockingly high. pm
Have you already received any awards in connection with your activity? We already know that our vertical-axis power turbines have been awarded the Gold Medal of the Poznań International Fairs for an innovative product and innovative energy solution. The fair will be held in mid-October. We are happy that our wholly Polish technology has • been appreciated. pm
October 2014 polish market
High-performance computing in Świerk
- how brain becomes mind O
nly few days left to the official inauguration of one of the largest supercomputers in Poland and the region. Świerk Computing Centre (CIŚ) shall be launched on Thursday, November the 13th, at the premises of the National Centre for Nuclear Research (NCBJ). The plant has been established with aid of the European Regional Development Fund (Innovative Economy Operational Programme) and a co-financing of the Ministry of Science and Higher Education. The total value of this project makes almost PLN 98 million. The main goal of building a supercomputer, as well as partnership of CIŚ experts and scientists, is to provide adequate information technology support needed for the development of the Polish energy sector - both nuclear and conventional. Cluster application areas are to monitor and simulate radiation hazards, emergency management, as well as calculate for the design, installation and optimization of power equipment and power distribution. We come up to requirements of strategically important data operation managed by government bodies and research institutions, including the European Centre for Nuclear Research CERN. Furthermore, Świerk Computing Centre runs a number of its own research and development projects related to i.a. safety and operation of nuclear reactors, chemical analysis, the physics of fundamental interactions and astrophysics, as well as work for the design and construction of medical equipment. The project has now entered its final phase of
56 polish market
implementation. The infrastructure investments have been finalised, deliveries of IT equipment are 70 percent made. CIŚ research teams gained experience and their work brings more and more stimulating results. Therefore, it is not surprising that at this particular time we face new challenges including maintaining and developing the potential created within Świerk Computing Centre. One of these ideas is to use CIŚ basis for building new unit of National Centre for Nuclear Research which would be devoted to research on complexity and multi-scale phenomena. Such activities require not only efficient high-performance computing systems but also unique competence and knowledge. All of these can be easily found in National Centre for Nuclear Research. CIŚ has already a vast experience in modelling of complex systems, with particular emphasis on nuclear reactors and energy networks. One of its R&D teams has undertaken work on the design of a system for multi-criteria analysis of various types of structures in the energy market. This solution is a response to the ongoing European energy market integration processes and meets the demand to harmonize country-specific economic and legal formulas. Working on the system required a combination of modelling the physical layer transmission of energy, the economic aspects of the market and the strategic behaviour of market stakeholders. The study used an innovative research methodologies, e.g. designating zones based on the minimization of uncontrolled flows
between market areas, and taking into account the changing weather conditions. The effects of undertaken activities are so promising that our scientists - as one of three of this type research groups from all over Europe - are likely to be a part of an international consortium compiling model of European market energy zones for the needs of European Commission analysis. We are convinced that results of a similar value can be reached also when it comes to multi-agent systems, statistical methods of big data processing, genetic algorithms or discrete dynamics. In fact, methods of complex systems can be used to solve a wide range of both the fundamental and practical problems, which are hardly dealt with by more traditional methods. Examples of such applications are fast reconstruction of high-resolution medical images from PET scanner, computer aided design of drug molecules with radioisotopes builtin, optimization of electric energy distribution on power network, design of cooling systems and finally management of pollution hazards using computational fluid dynamics. In addition, methods of complex systems are intended to widen educational offer for our PhD students at NCBJ. All those applications illustrate the effect of synergy between basic and applied research. This multidisciplinary approach leads NCBJ to a vision of next generation project: Advanced Solutions for Complexity. In this vision Świerk Computing Centre is a Brain. Now, we are going to convert it into a Mind. •
Is the debate on the Polish nuclear power plant finally over? On 9 October, the Office of Competition and Consumer Protection (UOKiK) permitted Polish state-owned companies - PGE, KGHM Polska Miedź, Tauron Polska Energia and Enea - to form a joint venture to build the first Polish nuclear power plant with a capacity of approx. 3 GW.
Still, nothing is a foregone conclusion “The debate on a nuclear power plant in Poland has been going on for many years. Today, however, the Polish nuclear power programme is entering the final phase, and the new Polish energy policy presupposes the development of the nuclear technology.” That is how the “Report on nuclear power in Poland” by Aleksandra Gawlikowska-Fyk and Zuzanna Nowak begins. The report was released in September by the Polish Institute of International Affairs (PISM). The Report - which is the culmination of the research project “Nuclear power in Poland: Assessment and Future Outlook” - lays down concrete proposals and recommendations for Poland based on a comparative analysis of nuclear projects implemented in other EU countries, as well as on the findings of opinion polls conducted by PISM in AprilJune 2014. It makes Poles realise that there are 10 nuclear power plants (23 reactors) operating in our neighbourhood: in the Czech Republic, Slovakia, Ukraine and Finland and Sweden, and until 2009 in Lithuania. Perhaps that is why as many as 64% of Poles welcome plans to build the nuclear power plant, 71% believe that it is an attractive and proven source of energy, and 57% - that it does not pose a threat to the country. It is worth noting that since the failure of the Japan’s Fukushima power plant in 2011 the construction of 72 nuclear reactors has started! It is clear that the construction of the power plant will cost PLN 40-60 billion, but - according to the authors of the Report - despite the high cost, it provides an opportunity to speed up economic growth. However, significant involvement of domestic capital is necessary, so that the share of Polish industry in the whole investment increases from 10% in 2020 to 60% in 2030.
The crucial question is: where to look for professionals?
Zbigniew Kubacki, Director of the Nuclear Energy Department in the Ministry of the Economy, said during the conference promoting the Report that 4,000 Poles worked on the construction site of the Finnish power plant Olkiluoto-3, including approx. 600 in the plant itself. Currently, the Ministry of the Economy is making an inventory of Polish companies with know-how and capabilities for participation in the Polish nuclear power programme. 330 companies have already registered, of which almost 60 have more than 10 years’ experience in the nuclear business. In addition, the human resources plan is being prepared to determine the demand for certain occupations. The Ministry of Education will launch technical secondary schools educating nuclear technicians. As regards engineers, there are 11 relevant majors and 11 doctoral students in the field of nuclear energy at Polish universities of technology. Grzegorz Wrochna, Director of the National Centre for Nuclear Research, endowed with the only Polish nuclear research reactor, “Maria”, stressed that it was ideal as a testing ground to acquire relevant skills.
Get modelled on the Brits? PGE EJ 1, a special purpose vehicle set up by PGE in January 2010, has been tasked to prepare the investment process, carry out location tests and finally build the first power plant. Following the consent of UOKiK, it will sell 10% of its shares each to the three companies mentioned above. The investigation showed that the consolidation will not restrain competition, because the share of energy from the new power plant is estimated at 7%, so it will not increase significantly the position of PGE, Tauron and Enea on the electricity generation and trade market. But the investment costs are huge. Will PGE EJ 1, even if reinforced, be able to bear them? No wonder that participants of the conferences asked whether the State Treasury will relinquish part of the dividend paid to it by its subordinate companies. Marcin Ciepliński, Director of the Nuclear Energy Department in PGE, did not know the answer to this question. In this context,
British contracts for difference (CFD) were cited. This kind of public aid, approved by the European Commission, enabled the construction of two new nuclear units in the Hinkley Point B power plant (Hinkley Point A is closed), located southwest of London. In addition, the British government agreed to provide the investor (France’s EDF) a guarantee in the amount of GDP 10 billion to help it gain funding for the construction of the power plant. Will the European Commission approve such a solution in Poland? It is too early to decide the matter, but Aleksandra Gawlikowska-Fyk suggested that certain things should be done already today, for example make sure that Polish engineers speak English, and Polish companies are aware of the existence of competition. There are many important debates ahead of us and a huge amount of work requiring knowledge, imagination and responsibility.
Four stages The Polish nuclear power programme, adopted by the Council of Ministers in January 2014, consists of four stages. In the first stage (2014-2016) the location and technology provider are to be decided. In November 2011, three potential locations were identified: Choczewo, Gąski and Żarnowiec (in the last location, the construction of Poland’s first nuclear power plant was carried out until 1990). In September 2013, research started in Choczewo and Żarnowiec. In the second stage (end of 2017), the technical design is to be made and all the necessary permits (including environmental) are to be obtained. In the third stage (end of 2025), the first unit will be ready and connected to the grid, and the construction of further units will start, which will continue into the fourth stage. The second nuclear power plant, also with a capacity of approx. 3 GW, is expected to be completed in 2035. If this scenario is to actually occur, nuclear power will play a complementary, not a dominant, role in Poland’s energy mix. Meanwhile, PGE EJ 1 signed on 1 September an agreement with AMEC Nuclear UK Ltd for technical advisory services in the investment process. • October 2014 polish market
In 2014, Poland’s GDP will grow by 3.3% in real terms In the first half of 2013, the Polish economy returned to a higher growth path after a period of slowdown, which had lasted for more than a year. Since the second quarter of last year Poland’s GDP has been growing on average by around 0.8% quarter on quarter, compared to 0.2% in 2012. In the first quarter of 2014, the growth rate even accelerated to 1.1% quarter on quarter, slightly above the long-term average. In the first half of the year, GDP grew in real terms by 3.4% year on year. Poland is still one of the European Union economies which are growing the fastest. The strong results of aggregate economic activity are coupled with a favourable change to the structure of growth. Since the last quarter of 2013 internal demand has been the main driver of GDP growth. It is combined with a strong increase in private investment and consumption. However, the contribution of net exports to GDP growth is negative this year, a result of a rise in imports driven by domestic demand. Exports growth has remained at a higher level than the expansion of export markets. With the acceleration of economic activity in Poland, we have seen a steady improvement on the labour market. Employment in the corporate sector has been growing. In the second quarter, the average number of jobs in the national economy was higher than a year earlier for the first time in two years. The number increased by 0.1%. Since mid-2013 we have also noted a drop in the number of unemployed and an accelerated growth in the average wage in the national economy. At the same time, inflation is at a historically low level. In July, for the first time ever, CPI was lower than a year earlier – by 0.2%. The absence of inflationary pressure, apart from a continued negative output gap, is associated with a special situation on the market for agricultural products. The high supply is a result of both favourable weather conditions for agricultural activity and Russia’s ban on food imports from EU countries. Additionally, prices of raw materials
58 polish market
Finance Ministry’s analysis on world markets have stabilized, which – combined with the strengthening of the Polish currency to the dollar – is conducive to a decrease in the costs of raw material imports. Thanks to low inflation, real wage growth in the first half of 2014 was the highest in six years. Wages increased by 3.4% in the national economy and 3.7% in the corporate sector. We estimate that real GDP growth for the full year 2014 will reach 3.3% and will be more than two times higher than in 2013. Domestic demand, which will increase from 0.0% in 2013 to 3.5% in 2014 in real terms, will be the main factor behind the acceleration of GDP growth this year. The contribution of net exports to GDP growth will be negative at -0.2 points. External imbalance will continue at a low level. There will be a deficit of 0.9% of GDP on the current account compared to 1.4% last year. Next year, a slight acceleration of real GDP growth rate, to 3.4%, may be expected in connection with faster increase in domestic demand (3.8%). The growing domestic demand will be supported by the measures announced by the prime minister, including a higher indexation of old-age and disability pensions, and increased state aid for families with children in the form of a child tax allowance. An improvement on the labour market will give an additional boost to consumer demand. We estimate that the registered unemployment rate will fall to 12.5% at the end of 2014 and to 11.8% at the end of 2015 after a rise in the years 2009-2013. In 2014, the number of people employed in the national economy will go up by 0.4% after a drop by 0.8% last year. In 2015, employment will rise by 0.8%. A continued positive contribution to GDP growth from the public sector, at around 0.5-0.6 pct. points, will be conducive to rebuilding domestic demand from the private sector. The strong performance of the real economy will be coupled with low inflation. We project that the average CPI will stand at 0.1% this year versus 0.9% last year. In 2015, CPI is projected to be 1.2%. This means that inflation will stay much below the inflation target set by the Monetary Policy Council.
The basic risk factor for the macroeconomic projection is the development of the economic situation in the countries which are Poland’s main trading partners. This is especially important in the context of potential economic consequences of the restrictions which have already been imposed on trade between Russia and the European Union and the United States, and the risk of further sanctions. From the perspective of public finances, it will be crucial for Poland in coming years to further diminish their imbalance in a way which would not hamper economic growth. The country’s fiscal policy, oriented at ensuring an optimum pace of consolidation, will be determined by the stabilizing expenditure rule and the need to take measures to end the excessive deficit procedure. The expenditure size defined by the expenditure rule includes almost the whole general government sector, except for spending fully financed from EU sources and spending by units which are not capable to generate high deficits. A non-extendible spending limit, based on the expenditure size, applies to around two thirds of the general government sector – the national budget, social insurance fund, funds held by the BGK bank and other entities. In 2015, growth in nominal general government spending will amount to 0.9% in connection with applying the expenditure rule, which this year took account of a correction due to the imbalance of public finances. The increase in general government spending will be not only smaller than the increase in spending allowed by the existing expenditure rule (CPI plus 1%) but also smaller than inflation projected for 2015. As the expenditure limit is determined by the rule, work on the budget bill is focused on distributing the money available within the limit. An increase in spending on a specific purpose has to involve an appropriate reduction in spending on other purposes. This rule helps the transparency of public finances. Both the expenditure size and expenditure limit are calculated in keeping with the rules specified by the law on public finances and are defined in the budget bill. •
To be the leader
Prof. Małgorzata Zaleska, member of the Board of the National Bank of Poland The author is a member of the Board of the National Bank of Poland (NBP), a full professor at the Institute of Banking Warsaw School of Economics (SGH) and vice-president of the Committee on Financial Sciences Polish Academy of Sciences.
his year is marked by summing up of the past 25 years of economic and political change in Poland and thinking about scenarios for the future. The summings-up are quite concrete but predictions for the future, including the shape of a strategy for further changes, are quite vague. And this is overlapped with the situation in the world and a vision for a postcrisis world. These problems have been discussed at the numerous economic forums and congresses held this year. One should stress that these meetings may serve as an inspiration but it is not where strategies are built and specific solutions analysed. Let us consider whether Poland can become in the coming years the leader in this part of Europe. Contrary to opinions that one can hear sometimes, it is not possible for Poland in the near future to become the leader in a wider geographical context. One should consider three aspects: economic, including the financial one, political and military. As regards the economic factor, there are many parameters and measures which enable appraiseing and classifying countries, like for example GDP and GDP growth rate, public debt and budget deficit, the quality of life, spending on education and the number of patents. The World Bank’s “Doing Business” and the “Global Competitiveness Report,” which presents the findings of research conducted annually by the World Economic Forum, have for years been important country rankings widely commented in the world. The results of the two country ratings differ because they use different criteria and assign different weights (importance) to them. For this reason one should look at them with some distance. However, one should not ignore them because they are taken into account by investors, for instance. In the World Bank’s report published in November 2013, Poland was ranked 45th, 10 places up from the previous ranking, among
Poland should work out a coherent package of changes... 189 countries. And in the “Global Competitiveness Report,” published in September this year, Poland was in 43rd place among 144 countries, moving one place down the list. Poland has a similar position in both rankings but the trends differ – moving up in the first one and down in the latter. The two reports point to the Polish tax system, both the tax rates and its transparency, as a significant constraint. Poland also scored poorly in terms of the efficiency of the public administration sector, transparency of economic policy and the quality of regulations. Most of the areas indicated above are administrative barriers, invented on paper.
In both reports Poland also scored poorly on innovation and human capital, including a low score on the ability to retain talent in the country (117th place) and an even lower score on the potential to attract talent (124th place). These problems cannot be solved by merely making procedures simpler. An important, though not the only, remedy is to attach more importance to the financial education of young people, raise funding for education and distribute it better, and improve cooperation between the scientific research and business community. One should also stress Poland’s strengths indicated in various ratings. Poland is definitely one of the leaders in terms of the condition of the banking sector. Despite the crisis and drop in interest rates, banks operating in Poland are exceptionally profitable and solvent. In the first half of the year, in spite of interest rates being lower than ever, the banks generated more than PLN8.7 billion in profit, or over 6% more than in the corresponding period last year. As I have already mentioned at the beginning of the article, one of the factors taken into account when ranking a country is the military criterion. Although in the past 25 years there was a widespread conviction in Europe that this criterion is of little significance, recent developments reminded us about it, indicating that in extreme situations the military factor may determine a country’s existence. Compared to other countries, Poland’s defence spending is not impressive - only USD240 per head. Meanwhile, Russia and Germany, for instance, spend USD621 and USD597 respectively. The above shows that being good only in a selected area is not enough for a country to be a leader. Poland should work out a coherent package of changes, which will enable it not only to ensure its economic, financial, political and military security but also to become the leader in our region. This should be reflected in Poland’s moving gradually up, step by step, in succes• sive global rankings.
October 2014 polish market
of the Polish economy is most important Jacek Socha, vice-president of PriceWaterhouseCoopers Polska, talks to “Polish Market.” To begin with, we would like to know how you assess the state of the Polish economy from the perspective of your long experience in the financial, private and public sector? Have we really avoided the crisis? The answer is clear: the past 20 years were the best period in Poland’s history in several hundred years. No one has any doubts that the decisions we took about the concept of our economic development and our entry to such alliances as OECD and the European Union were right. There is absolutely no doubt about it. I was lucky that, at 35 years of age in 1989, I was young enough to have an opportunity to take part in the economic changes not only as a man-in-the-street but also as a professional. I was not only taking part and watching but also had an opportunity to change my career and join the people who started to build a new Poland. pm
What, in your view, were the most important changes? It definitely is. We will now take care of the best Polish athletes, which testifies to the quality of our services. One of our hospitals - Carolina Medical Center - is recognised as a centre specialising in orthopedics and sports medicine. When integrating the healthcare market, we always try to take maximum advantage of the potential of all entities, and Carolina Medical Center has a huge potential. We want to use this medical centre to promote a healthy lifestyle and Polish medicine - also in sport. The infrastructure of this hospital - for example, the functional medicine centre - will be very helpful in achieving our goals. pm
One year and a half ago, LUXMED was taken over by Bupa an international healthcare group. How does the new owner influence the company’s operations in Poland? Does it introduce many changes? I think the most important thing is the openness of the Polish economy. There were no attempts in Poland to shut ourselves away from the world and it seems to me it was good. Of course, we should remember that there pm
60 polish market
were some people saying “It’s good because it’s Polish,” but thanks to the openness of the Polish economy we are now competitive, our exports are high and our economy is becoming part of the global economic system. Another issue is the fact that many Polish people emigrate. But there are also many who have learnt to work and live differently. We are constantly raising our productivity and this is why we are open to new technologies. It seems to me that the setting up of special economic zones was a success, though I do not know why they were set up on such a limited scale. The zones enabled us to attract more capital. But much more could have been done for the zones to be more flexible. If I were to decide I would have opened them for a longer period than only until 2026. I should also mention the capital market, something I myself was involved in. On the financial market, we improved cooperation both in the banking sector and the capital and stock market sector. We virtually made no mistakes here. We now have a stable financial market in its banking part where the security of deposits is important. Only one bank went bankrupt in Poland in the past 25 years, although we went through a number of crises over this period. I mean not only the recent crisis of 2008, but also the Russian and Far Eastern crises in 1998 and 1997. Despite these crises, our market remained stable. If we look at the capital market, the principles on which it was based in 1991 are still valid. The market is alive, or was alive until money was transferred from Open-ended Pension Funds. It was a very busy market. It provided financing to many companies and significantly contributed to the acceleration of privatization processes. If we had not had this capital market, which since inception was designed in a way enabling the Treasury minister to sell stakes in state-owned enterprises, privatization would have been even slower. Still, over the past 25 years we have not managed to complete these processes. pm
You have mentioned special economic zones and their contribution to the inflow
of foreign investors. What, do you think, is Poland’s main advantage in its effort to attract such investors? We, Poles, are active people, sometimes even obnoxious. I mean not everyone likes our traits. But to be frank, when we look at the pace of changes and the pace at which these changes are accepted by the public, we really are a modern society. When we look at young people who have switched to a new way of thinking - they are Europeans in every respect. This is why capital investment in Poland is a success – because we are a hard-working people. We top the league tables in terms of diligence and only Koreans can compete with us. As a society working its way up – indolent in the communist times when there was the saying “Down you lie or up your stand, either way you’ll earn a grand” - we work, we complain but work. This is how foreign investors perceive us and this is how we are perceived in other countries. A Polish worker is always welcome. And we will be even more attractive for the next several years. We are the fastest developing country in Europe. What can offer a chance for reviving the Polish capital market? A return to the old solutions with Open-ended Pension Funds (OFE)? It is impossible to backtrack on this. The money has been transferred to the Social Insurance Institution (ZUS). Everything has to be built from scratch. The number of people who have stayed in OFE is significantly higher than had been projected, despite the fact that the regulations were not particularly favourable for OFE members. You had to declare yourself once again. Many people did not have this opportunity and will come back to OFE in four years from now. We should return to the problem of completing the reform of the pension system and launch the third pillar of voluntary pension insurance. The money would revive the capital market. • pm
Everything revolves around price
Prof. Hermann Simon
rices are the central hinges of a market economy. Think about it: every dollar of revenue and profit that a company generates is the direct or indirect result of a price decision. Each expenditure in your personal budget gets you something in return, which means you paid a price each time. Everything revolves around prices. Yet despite this pervasiveness – and the thousands of books and millions of articles dedicated to pricing – so many people still know precious little about prices, where they come from, and what effects they have. In 2014, former Microsoft CEO Steve Ballmer stressed this point in a talk with entrepreneurs: “[T]his thing called ‘price’ is really, really important. I still think that a lot of people under-think it through. You have a lot of companies that start and the only difference between the ones that succeed and fail is that one figured out how to make money, because they were deep-in thinking through the revenue, price, and business model. I think that’s under-attended to generally.”1 What comes to mind when you think about the word “price”? Of course, you can type “price” into any search engine – be it Baidu or Google – and get a summary of theory not too far removed from what many of us saw in our college days. Flip open any economics textbook and you see that prices help balance supply and demand. In highly competitive markets, price is a manager’s weapon of choice, the most frequently used form of aggression. The common notion among managers is that no other marketing instrument is better suited to increase sales volumes quickly and effectively than price cuts. That’s why price wars are the rule rather than the exception in many markets, often with devastating effects on profits.
1 “Be all-in, or all-out: Steve Ballmer’s advice for startups”, The Next Web, March 4, 2014
62 polish market
Managers tend to have fear of prices, especially when they need to increase them. The fear has one legitimate source: one can never know with absolute certainty how customers will react to a price change. If we raise prices, will customers remain loyal or will they run in droves to the competition? Will they really buy more, if we cut prices? Special discounts and price promotions – two standard forms of price cuts – are an everyday occurrence in retail, but they seem to occur with increasing frequency and depth. In recent years, promotions accounted for 50% of beer sales in one of the world’s largest beer markets.2 Just two years later, some 70% of all beer sales at the retail level came on special offer, with discounts as high as 50%.3 2 Christoph Kapalschinski, “Bierbrauer kämpfen um höhere Preise”, Handelsblatt, January 23, 2013, p. 18. The beer market in this case is Germany. 3 “Brauereien beklagen Rabattschlachten im Handel”, Frankfurter Allgemeine Zeitung, April 20, 2013, p. 12.
Whether driven by opportunity or perceived necessity, this is clear evidence that managers think that aggressive prices help their business. But is this really true? To appreciate this uncertainty, you need only to listen to the simple explanation offered by Best Buy CEO Hubert Joly after his company suffered disappointing sales during the 2013 holiday season in the United States: “The highly promotional environment has not led to higher industry demand.” In fact, The Wall Street Journal reported that Best Buy’s aggressive discounting “appeared to do nothing to persuade shoppers to buy more electronics. Instead, they just reduced the price of what was sold.” Price changes are high-stakes decisions with dramatic consequences when they go wrong. Shares in Best Buy fell by almost 30% the day after the news about the holiday sales broke. This catastrophic, nationwide effect on customer and shareholder opinion is why managers will keep their hands off the pricing lever if they have doubt, turning their attention to something more tangible and more certain: cost management. Cost management involves internal matters and supplier relationships, which managers generally feel are less sensitive and easier to handle than their customer relations. Yes, uncertainty and mystery surround pricing. As with any branch of science, the deeper we dig and the more we learn, the more questions we get. But over the last 30 years, we have made enormous progress in understanding and applying pricing actions, strategies, tactics, and tricks. Classical economics has developed new price structures such as non-linear pricing, bundling, and multi-person pricing. The beginning of the 21st century saw a surge in interest and research into behavioral economics, revealing many phenomena that classic economics cannot explain. •
Law & Taxes
– conditions for registration and obtaining protection
trademark can be any sign that can be presented graphically and that allows to distinguish the goods of one producer from those of another producer. This can be in particular a word, a figure, an ornament, a colour composition, a spatial form, including of goods or packaging, as well as a melody or other acoustic signals, as stipulated by the Act of 30 June 2000 on Industrial Property (Journal of Laws of 2003 No. 119, item. 1117, as amended), hereinafter the “Act”. But what is a trademark in practice? A relationship between economic development and technology, and the level of protection of industrial and intellectual property is widely recognised. It is worth noting that entrepreneurs are increasingly attentive in referring to relevant rules and using them to protect their due rights. We are surrounded by trademarks every day and almost every day new ones appear. A trademark is a valuable asset and an essential element of the promotion of goods or services provided by the entrepreneur. It is a trademark that distinguishes one entrepreneur from another. Therefore, it is important to ensure adequate legal protection for trademarks. This protection helps prevent infringements by third parties. An additional advantage is the possibility to obtain tangible benefits from the use of trademarks. Therefore, a trademark should be registered before receiving correspondence from the competition stating that your sign violates their trademark or exceeds the limits of “inspiration” by their logo. The legal protection of a trademark starts from the date the final decision is issued by
the Patent Office to grant a right of protection for a trademark. The duration of the right of protection for a trademark is 10 years from the date of its registration in the Patent Office and, importantly, it may be extended, at the request of the beneficiary, for successive tenyear periods both for all or only selected goods. However, not every trademark may be covered by the protection right. A trademark should distinguish from other signs by fulfilling certain conditions. These characters must be met jointly: trademarks are sensuously perceptible, uniform and autonomous with respect to the goods they mark. In addition, these characters must be presentable graphically. The designations set out in the Act: a word, a figure, an ornament, a colour composition, a spatial form, including of goods or packaging, as well as a melody or other acoustic signals are able to influence the senses of sight, hearing, touch. However, the enumeration applied in the Act is not exhaustive, as evidenced by the expression “in particular”. Therefore, it can be assumed that this does not exclude the possibility to be a trademark for signs recognised by other senses, for example smell or taste. The potential ability to tell apart these signs depends on the fulfillment of other requirements, namely uniformity, autonomy, and in particular graphical presentability. These conditions raise doubts not only against the background of Polish legislation, but also EU regulations (Directive of the European Parliament and of the Council 2008/95/EC dated 22 October 2008 intended to approximate the legislations of member states relating to trademarks, and Regulation of the Council 207/2009 dated 26 February 2009 on the Community trademark).
The uniformity of designation can be defined as an internal structural feature; it is meant to be easily memorable. The sign should stand out by its consistency and brevity, without additional analysis. At the same time, it cannot be too simple, otherwise the recipient will not record its distinctive features. The trademark’s autonomy with respect to the product is another very important criterion that allows to distinguish it. A product as such cannot be identification tool of its own. The identification of a product with its trademark requires another method of communication. The identification sign must be separated from the product it marks. An autonomous designation is a designation which is different from the product. A characteristic and globally known example of a trademark not determined by the form of the product is the bottle of Coca-Cola Classic. A trademark should also be presentable in a graphical manner. This requirement was introduced by the EU legislature (Directive of the Council 89/104/EEC dated 21 December 1988, intended to approximate the legislations of the member states relating to trademarks, amended by the new directive of 22 October 2008, referred to hereinabove). The purpose of the graphical presentation was to clearly indicate the scope of protection requested. The lack of any of the above-described features is conclusive that the designation fails to tell apart any goods, which means that it cannot serve as a trademark. Literal proof of this is Art. 129 (1) (1) of the Act, which provides that protection rights will not be granted for signs which cannot be trademarks. Due to its limited length, the article deals only with the most important issues concerning the registration of trademarks. • October 2014 polish market
Res pon sible
activities are nowadays essentially standard in business. Most logistics service providers have long been active in the field of corporate social responsibility, especially as it plays an increasingly important role in building the company’s business position as the market matures. FM Logistic is a leading player in the area of CSR, too. Social responsibility is for us not only a responsibility for our business, but for our whole closer and further environment. Our pioneering investments in a number of previously non-industrialised areas, such as the towns of Mszczonów, Błonie or Olszowa, are examples illustrating our way of doing business responsibly. Local authorities can always count on us to support their efforts, and the resulting facilities represent not only lucrative investments, but also attractive jobs for residents. That is how we influence the development of local communities and help improve the quality of life in these locations. We are also the leader in the implementation of innovations designed to streamline supply chains and reduce costs, including
64 polish market
environmental. Since 2007, our services include pooling, which is an obvious example of our responsibility as an operator. This solution allows to reduce the number of vehicles on roads, and thus the emissions of pollutants. Because of our market position and specific services we provide, we pay special attention to the environment. Therefore, we use great care when handling waste – all the branches of FM Logistic have their own waste sorting facilities. On all platforms, in all countries packages are sorted and waste is processed. We also protect the environment through rolling stock purchasing policy - we use the most modern vehicles and trailers, including LONG MAX type. In 2008, we built Europe’s first and largest photovoltaic power plant on our premises in Laudun, in southern France. It is located in a heavily insolated area and it has a roof membrane integrating a photovoltaic power plant of 1.4 MW. The plant generates 1,650,000 kWh per year, an equivalent of electricity consumption by 500 households. Since 2012, we have supported the “Pajacyk” (Puppet Clown) foundraising campaign of the Polish Humanitarian Action to provide meals for needy children in Poland. FM Logistic has also joined the European programme Green Freight Europe. By doing so, we have taken steps to reduce CO2 emissions, in line with commitments made in the framework of the strategy for sustainable management of the logistics chain. The Green Freight Europe initiative, launched in March 2012, has implemented a set of European standards for calculating, collecting, analysing and monitoring data on freight transport CO2 emissions.
It is aimed at improving the environmental performance of freight transport in Europe. Modelled on a similar scheme in the United States, this independent and voluntary programme is intended to intensify cooperation between shippers, logistics service providers and governments. FM Logistic joined the ranks of about 100 other members (suppliers, shippers, logistics service providers, etc.) of this European-wide programme. This initiative complements our other activities. FM Logistic thus develops and confirms its strategy of sustainable development by making better use of natural resources and optimising the transport network. Our latest environmental project is called “eco fleet”. The vehicles serving customers from the pharmaceutical industry have an LPG system installed in order to reduce CO2 emissions. Gas used to power car engines also ensures greater flexibility and fluency, which is especially important in urban driving. Each “eco” vehicle is marked with a distinctive tag, which guarantees reduced emissions of pollutants. The project will be implemented in stages: by the end of 2014 a few such cars will be put into service, and in 2015 they will represent as much as 15% of the entire fleet dedicated to health industry. Gradual conversion of vehicles serving customers in other industries is foreseen. Today, corporate social responsibility is an essential aspect of the image and an important factor of cooperation. In fact, customers are increasingly willing to admit that corporate behaviour matters to them. •
The Małopolskie Province – the tourist heart of Poland
Wojciech Kozak, Vice Marshal of the Małopolskie Province, talks to Marcin Haber.
A new EU financial period has begun. Does Małopolskie province have any big plans to utilise the resources available as part of the new EU budget? As regards the future plans that we are practically starting to implement, the 20142020 period differs from the previous one in the fact that all provinces, including Małopolskie, have their strategies for using these resources. The previous ones were a beginning - they started the infrastructure development process, and we mean here broadly-defined infrastructure, not only roads, specifically car traffic routes - this development includes the Park & Ride programme, whose implementation will commence this year. It is an important initiative concerning environmental protection, and we expect substantial results when it comes to air pollution reduction. Kraków is among the few cities where pollution levels exceed the norm by several times. We are also the only province that has adopted a resolution on restricting the use of solid fuels such as coal. In these activities we are Polish pioneers. Speaking about environmental protection, it is also necessary to invest in renewable energy sources. This entails not only wide-scale thermal efficiency improvements, and low pm
66 polish market
emissions, but also the increasing use of photovoltaics, which makes it possible to become independent of solid fuels, which, considering the situation in the east of Europe, is the exact right thing to do. Within the framework of our energy security we need to come up with a model that will allow us to function properly even when faced with gas shortages, as such a situation will not be entirely secure for us. Southern Poland, including Małopolskie, has to be relieved of traffic volumes. The Kraków ring road, which has still not been completed after many years, now becomes a reality. Such a road circling Kraków will make it possible to reduce the volume of traffic in the city. We would also like to see the completion of the S7 route, which presently ends in the Świętokrzyskie Province. We will be able to witness this in the nearest future, as this is already at the execution stage, and everything seems to indicate that in a year or a year and a half this will be behind us. When talking about southern Poland it is difficult not to mention Zakopane, the winter capital of Poland. Moreover, such incredible locations as Krynica-Zdrój and Szczawnica should be easily accessible, not only for Poles, but also for foreign visitors. The modernisation
of the Kraków-Zakopane route is included in the discussed financial period and will become a fact. This will also streamline transport to and from Krynica-Zdrój, where every year we host the Economic Forum – a brainstorming by the leaders in the field of politics, business and economics. Krynica has become a meeting place for all economic Europe, so we must ensure a good transport infrastructure. When it comes to tourism, over 50% of Małopolska’s land is green areas; that said, we should mainly focus on developing the tourist industry. By the end of the year we will probably break the record for Polish tourists visiting Małopolska. As revealed in polls, Małopolska, which boasts 11 monuments from the UNESCO list, is the most popular destination among our fellow countrymen. Exactly. Małopolska for many years now has been in the vanguard when it comes to tourist traffic. What are the reasons for this and the main strengths of the Province? Let’s be clear about this – over the last several years we have improved our tourist facilities, such as hotels, plus Kraków has the advantage of being open to tourists all year round. The number of hotel beds is enough, and the pm
Tourism hotels are of top quality. So, on the one hand we have Kraków visited by ca. 9 million tourists every year, Balice airport handling 3 million tourists, and on the other hand there is the rest of the Province also showing substantial growth in tourism. I must admit that tourist farms are enjoying a spell of great popularity, and have become all the rage in Małopolska. Regional cuisine is another thing luring tourists. I have always said that our culinary heritage is extremely important. Moreover, 20% of Poland’s mineral-water springs are located in Małopolska. What worries me, however, is the attitude of the Regional Directorate for Environmental Protection in Małopolska, which is too rigid when it comes to our green resources. For example in Muszyna, tourist resources are much greater than the actual use. I believe this margin that we are afraid to cross can be easily crossed. pm
I would also ask you further about a strategic issue in Małopolska, namely environmental protection. The topographical location of Kraków is quite unfortunate. For many years now we could hear that smog over Kraków is one of the direst problems of the Province. You have mentioned emission-reduction programmes, but are they enough, or do we need a long-term programme?
A Resolution adopted by the Małopolskie Province Assembly made 2018 the deadline for the complete removal of coal-fired furnaces from households. If we are to take into account industrial units, whose emissions are fully controlled based on integrated permits, I believe this is possible. In Kraków there are currently around 45-60 thousand coal-fired furnaces. The stock-taking is ongoing. We know that nearly 4 thousand furnaces have already been replaced. This entails subsidising and full financial coverage. Under future resources we have allocated substantial funds for replacing coal-fired furnaces with oil-fired ones, and developing the district heating line. Another priority is the continuous purchase of Euro 6 buses, meeting the highest standards. We hope that thanks to city funds fuelled with EU resources we will see a clean Kraków. As you pointed out, smog accumulates here because of the city’s location. This is due to the Vistula and the basin housing the city. Unfortunately, some investments made during the Polish People’s Republic, like large-scale constructions and housing estates, have blocked the natural ventilation lines, marked much, much earlier, and respected even during the reign of Casimir III the Great. This was a great mistake, and now we have to deal with it in • a different way.
By the end of the year we will probably break the record for Polish tourists visiting Małopolska.
Polska. Move Your Imagination Rafał Szmytke, President of Polish Tourist Organization
he slogan I bring up at the beginning shows the direction we have chosen in promoting Poland. The recent years was a time of change for our country in all spheres, including tourism. The situation in the world and the behaviour of consumers are conducive to the development of the tourist sector. More and more people travel abroad. Data from the United Nations World Tourism Organization show that the pace of growth in the number of people spending holidays far from their own country had never been as fast as it was in recent years. It comes as no surprise that many nations see a chance for a rise in their revenue from the tourist industry and for stimulating
their economies. More and more countries intensify their promotional activities to enhance their competitiveness on the tourist market. Poland, which has a large geographical and cultural potential, also fights for a good position in the increasingly fierce competition for tourists. A favourable location at the intersection of important European routes, in the centre of the continent, a well-preserved natural environment and presence on the European Union’s internal market make our country an attractive place for foreign tourists to visit and spend holidays. Our activity on the tourist market, pursued according to the same rules as those in any other EU country, gave a new status to the tourist sector and initiated October 2014 polish market
the process of developing modern marketing methods, taking account of differences among markets and what individual Polish regions have to offer. In the tourist sector, getting the country prepared for entry to the European Union required setting up a national tourist organization. By establishing in 2000 the Polish Tourist Organization, Poland adjusted its tourism management system in terms of legislation to the European model. Our entry to the European Union gave us access to structural funds, which enable us to carry out campaigns on the scale we could not afford when we had only money from the national budget. The EUR34 million we have received is expected to improve Poland’s recognition on the international tourist market in the long run and, consequently, contribute to a rise in the number of foreign tourists. The growth trend is well noticeable. In 2002-2012, the number of foreigners visiting Poland increased from 50,735,000 to 67,390,000, which represented a rise of 33%. At the same time, the number of tourists grew from 13,980,000
68 polish market
to 14,840,000, a rise of 6%. In 2013, Poland was visited by 15.8 million tourists. However, one should remember that tourism, as a sector of the economy, is subject to strict international requirements. In order to meet them, it is necessary to pursue an active policy and conduct promotional and marketing activities on a broad scale. Thanks to EU money, the promotion of the Polish tourist sector is very intensive. Additionally, the recent years offered us several very important pretexts we could exploit in our campaigns: Poland’s presidency of the European Union in 2011, the final tournament of the UEFA European football championship in 2012 and Volleyball Men’s World Championship this year. Poland’s image is changing all the time and has to be constantly supported by positive advertising messages that Poland is an original and modern country teeming with life and that its residents are spontaneous, hospitable and open to others. We continue our campaign in Germany, Britain, France, Belgium, Holland, Denmark, Sweden, Italy, Ireland, Spain, Ukraine, Russia, the Czech Republic,
China, India and Japan. We base the success of our activities on innovation. We are changing the image of our country abroad, breaking stereotypes about Poland and Polish people. We try to invest our money and effort in large undertakings, which - I am convinced - will strengthen the final effect. It is a broad campaign, which includes outdoor advertising, television and radio commercials, and a very strong emphasis on the Internet, social networking sites and so on. We have very strictly defined marketing campaigns intended for every market. We are aware that it is difficult to tell everything about Poland and to everybody. This is why we have special promotional tools, which may help tourists to learn as much as possible about Poland and prepare an itinerary. Our e-learning platform www.specialist. poland.travel serves this objective. There are also Internet sites with information designed to convince those who visit them that a travel to Poland will always be a unique experience and to intrigue them and provoke the question: “Poland, why haven’t I been to it yet?” •
The 7th International Hotel Facilities Equipment Trade Fair WorldHotel 2014 was held in Warsaw on 17-19 September. Over 130 exhibitors presented their offers, and the industry members benefited from trainings and conferences.
orldHotel is an event directed to the hotel sector. The fair was organised under the patronage of Janusz Piechociński, Deputy Prime Minister and Minister of the Economy, who while pointing out the importance of the event, expressed satisfaction that the Polish furniture industry and Polish regional products were visible during the fair.
The opening ceremony and awards The official opening and the ribbon-cutting was made by Janusz Piechociński, Deputy Prime Minister and Minister of the Economy, Rafał Szmytke, President of the Polish Tourist Organization, Ireneusz Węgłowski, President of the Polish Chamber of Commerce Hospitality and Urszula Potęga, President of MT Targi Polska, the organiser of WorldHotel. During the opening ceremony, the Prize of the Minister of the Economy was awarded for the most enterprising company, exporter and innovator of the 7th International Hotel Facilities Equipment Trade Fair WorldHotel 2014. The winners are: Fameg Sp. z o.o. for the collection of bentwood furniture (first place) and Komat Mieczysław Kozłowski for service lines (second place). The winners were also announced of the competition for the best product – “The Best of WorldHotel 2014.” The main award in the category “Hotel facilities and infrastructure” went to Saint-Gobain Construction Products Polska Sp. z o.o. for Rigips Pro Aku – acoustic plasterboard walls, and distinctions were given to: Metzler Sp. z o.o. for the Argentino folding dance floor and Quadriga Poland for the Coco solution. In the category “Catering
facilities and equipment,” the award went to Rational Sp. z o.o. for SelfCookingCenter® 5 Senses – a combi steamer, and Gastromedia Sp. z o.o. received an honourable mention for the Sous Vide Julabo circulator. In the last category “New technologies in hotel management” the prize was awarded to abiLine Sp. k. for the self-check-in system ABLCheck in.
The exhibitors at WorldHotel included manufacturers and distributors of hotel industry products. The wide range of floors, doors, furniture, fabrics and textiles exhibited at the fair would allow to fit out any hotel facility from floor to ceiling, and to design and furnish a restaurant and a kitchen. Visitors were attracted by decorative flower pots, designer mirrors and a wide range of hotel toiletries, as well as modern infokiosks and Internet applications that served as guides, successfully replacing paper catalogues and brochures. Among innovative solutions worth attention was a water treatment system, modern saunas and an environmentally friendly substance for removing snow and ice. Such devices as balers and presses facilitating waste management were also shown.
Expert’s practical knowledge Workshops and trainings enjoyed great popularity. Two training session co-organised by Horwath HTL, a consultancy, were held on the first day of the fair as part of the Hotelier’s Academy: “Effective investment in hotel facilities” and “Hotel promotion 2014/2015 - trends and forecasts.” According to Janusz Mitulski, a Partner at Horwath HTL, hotel
investors want to be well-prepared for the implementation of their projects. “Information available on the Internet cannot make up for expert’s advice. Each project is different and requires a different approach. During our meetings, we present practical examples and explain to investors the consequences of certain actions or omissions,” said Janusz Mitulski. On 18 September, the conference entitled “The availability of hotel facilities for people with disabilities – architectural and technical solutions” was chaired by members of the Integration Foundation. Its director Tomasz Wasielewski said that hospitality industry entrepreneurs realised it was worth fighting for customers with disabilities, because they are more and more active and travel a lot. “I hope that our intervention will help the hospitality industry to reach out to people with disabilities and show that the costs incurred can be fully recouped. In addition, it will also have an image-effect. Feel free to change. Our participation shows that this is not difficult, but certainly profitable,” encouraged Tomasz Wasielewski. The room was filled to the last seat during the workshops “Hotel on the Internet modern communication and online sales channels.” “The most popular with the audience were computer software innovations in support of the hotel reception and sales desk. You can see that the fair is an opportunity for hoteliers to expand their knowledge and learn about new products on the market,” said Piotr Sałuda, New Business Development Manager at eholiday.pl. “We have also looked through the hotel websites to try to suggest the best solutions,” he said to sum up the practical pieces of advice offered to the participants. • October 2014 polish market
People with a great potential of knowledge, patriotism and generational wisdom On the 40th anniversary of the death of Eugeniusz Kwiatkowski - he died in Kraków on August 22, 1974 - a great Pole, statesman, and patriot of the Polish state after it regained independence, the man behind the development of the Central Industrial District in the Second Republic of Poland (1918-1939)
he biggest asset of the Second Republic of Poland, which emerged in the wake of the First World War as an independent country after more than 100 years of foreign occupation, were its people with a great potential of knowledge, patriotism and generational wisdom acquired from the long struggle for a Polish state and an institutional organization that would take care of the existence of the nation and its development. The people – of all occupations, from specialists in the arts and humanities, philosophers, inventors and industrial practitioners to manual workers and elite graduates of foreign universities – formed a coherent mechanism, building conditions for the nation’s existence effectively and at a surprisingly fast pace (see: M. Wańkowicz, “Sztafeta”). Eugeniusz Kwiatkowski has become a noble symbol of the creative people of that time, the personalities, culture and character of those who were pragmatically planning and building conditions for the existence of a revived nation. And, although the governments changed, he continued as a member of teams taking decisions important for the country and its economy. In the 20 years between the two world wars, Poland – a state established by uniting Polish populations living for several generations under three different systems imposed by foreign occupying powers - made unprecedented progress, seeing transition from small factories reminiscent of feudal times to some of the
70 polish market
world’s most modern manufacturing sites in a dozen or so industrial sectors. Called “a seasonal state” by its hostile neighbours, Poland did so without any significant external help. Modern companies were rapidly developing from scratch. They used Polish technologies to produce such products as for example synthetic rubber, artificial silk and modern locomotives with an internal combustion engine. Among the new Polish technologies was the world’s first electronic communications system, the process for the production of single crystals for semi-conductors developed by Jan Czochralski, the WS-10 radio station, a precursor of mobile telephones, designed by Zygmunt Jelonek, a system being a precursor of GPS, developed in 1940 by Juliusz Hupert, and sensational technologies for the aviation industry. Poland was the eighth largest exporter of aircraft in the world. It also had a world-class steel industry thanks to inventions of Tadeusz Sędzimir, who was called the “Edison of metallurgy,” and excellent mathematicians and cryptographers, who were the first to break Enigma ciphers. The state took special care of scientific research, boosting the strength of the industrial sector in international competition. In the years 1918-1939, Poland was in 6th-8th place in global league tables in terms of the number of patents for inventions. As a comparison, Germany was in 13th-15th place in this respect. The part of Poland were industry was developed intensively was called “security triangle.”
It occupied the centre of the country with former Staropolski and Hrubieszów Industrial Districts. The newly developed industrial district received the name of Central Industrial District (COP). Fifty one modern factories, based on Polish technologies, were built in COP and another 50 were modernized. Around 110,000 jobs were created. The name Central Industrial District was adopted at the Planning Office of the Treasury Minister’s Office. The district fully incorporated the security region whose borders were defined by the order on tax breaks on investments of March 22,1928 (Journal of Laws, no. 36, item 329). COP covered around 60,000 square kilometres, or over 15% of the
Industry country’s territory, and was inhabited by 5.6 million people, or 18% of its total population. The population density was 93 persons per square kilometres and more than 80% of the inhabitants were residents of poor, overcrowd-
packaging – the production continued until recently. If needed production lines could be switched to make a top-quality component for explosives manufactured by the PWP. When the factory opened in 1937 in the pres-
The launch of the cellulose factory in Niedomice; Prime Minister E.Kwiatkowski’; Director W.Czerwiński; Engineer W.Wykowski and Engineer L.Banaszak
ed villages. The investment projects carried out in COP were coupled with the expansion of industrial, transport and energy infrastructure. Those who built the Polish defence industry were guided by the idea that the weaker a country’s economy, the bigger its “buffer of civilian production” should be so as not to be dependent on stronger countries. This is why there was a focus on dual-use technologies, which enabled the production of goods intended for the civilian market at a time of peace and products for the armed forces at a time of war. An excellent example was the cellulose factory in Niedomice, launched in 1937. It was part of Państwowa Wytwórnia Prochu (PWP) in Pionki, an explosives producer, which was turned into Pronit plastics plant after 1945. At a time of peace, the factory in Niedomice manufactured excellent environment-friendly
ence of Prime Minister Eugeniusz Kwiatkowski foreign press wrote that Poles were doing impossible things in the area of technology (M. Wańkowicz, “Sztafeta”). COP’s factories offered the potential to replace the military hardware of the Polish armed forces with modern weapons suitable for Poland’s new strategy and tactics to be used in defence against an enemy. Eugeniusz Kwiatkowski’s great vision was a 15-year development plan for Poland A and B, divided into five stages. Although work on it started in 1936, investment projects planned in the first three-year stage of industrializing the part of Poland between the cities of Vilnius and Lvov began as early as autumn 1938. At the same time, there was a project to build a plant to manufacture Polish-designed combustion
engines, Foka-1 and Foka-2, on a 71-hectare site in the Gołębiów district in Radom. Participants in a two-day symposium held in Stalowa Wola in 2007 to mark the 70th anniversary of the Central Industrial District (COP) came to the conclusion that in the mid-1930s the pace of economic, scientific and organizational activities in Poland had been so rapid and the human potential so excellent that, if the Second World War had not broken out, Poland would now have been a highly developed country, on a par with Germany, France and Britain. The COP Cluster is a modern economic organization set up to support cooperation among producers, the scientific research community, business associations, local governments and culture with the aim to ensure joint and dynamic economic development at a time of globalization. In Poland, a precursor of present-day clusters was the Stanisław Staszic Statutes for the Staropolski Industrial District and Hrubieszów Industrial District 250 years ago. The Statutes describes production and market interrelations. One hundred years later, informal associations, called cooperatives, were established in the occupied Poland in the manufacturing, financial and trade sectors. We attach great importance to remembering the achievements of past generations in culture and economy as examples to follow. In conjunction with members of the Polish Academy of Sciences (PAN), we have undertaken to write an Anthology of the Interwar Period 1918-1939 and a Monograph on COP to show Polish contribution to technology and culture. We also remember about important experiences and historical dates so as to wisely build our future. We want to remind the next generations about the contribution of Prime Minister Ignacy Jan Paderewski and President Thomas Woodrow Wilson to the establishment of an independent Polish state after the First World War. The activity of the COP Cluster, as the initiator of intercontinental fairs for NAFTA, CAMACOL, Poland and other countries of our region, is part of global economic projects. The Cluster believes in the universally accepted principles of building the wellbeing of the world’s societies through economic development, and cooperation in the sphere of trade, production, science and culture. The thoughts I have expressed above are based among others on my family experience as a member of the third generation of the Polish engineering community, and as a son of Ludwik Banaszak, Eng., an industrial organizer and designer over the turbulent years of • the 20th century.
October 2014 polish market
Recommendations of the autumn Cultural Monitor by Maciej Proliński include remarkable classical and jazz pieces: something to discover, to listen to again and again, and definitely not to shelve!
Frederic Chopin - Janusz Olejniczak part 1 and 2 - Selene - CD Ignacy Jan Paderewski - “All piano works” part 1 and 2 - Selene - CD
arketing Design, one of the leading distributors of classical music, releases in Poland and abroad new editions of Selene. Selene is primarily Polish classical music and Polish performers, recent premieres including Chopin performed by Janusz Olejniczak part 1 and 2 and “All piano works” by Ignacy Jan Paderewski part 1 and 2. Frederic Chopin (1810-1849) was a great Polish composer of the Romantic era, but his works went far beyond, exerting influence on many later composers. A talent comparable with the greatest only. His creations, properly designed for only one instrument - the piano, became a piece of work of all time, making him immortal. His etudes and preludes, nocturnes and ballades, sonatas, songs, and two piano concertos constitute separate musical chapters. The highest value was obtained thanks to the perfect conformity of expression and form. Janusz Olejniczak, a piano virtuoso, winner of the 8th Frederic Chopin International Piano Competition, is a renowned interpreter of Chopin’s music. He plays in the most prestigious concert halls in the world. He appeared in the role of Chopin in “Blue Sky” directed by Andrzej Żuławski. Both CDs feature the most important genres of the Polish piano genius. You can hear classical, interpretatively flawless performances of mazurkas, nocturnes, polonaises and ballads. These albums are the essence of Chopin’s music. It is a pleasure to listen to these interpretations, taking us to a vigorous, glittering, dreamy and nostalgic world, which is no doubt called Poland... Ignacy Jan Paderewski (1860-1941), a great Polish patriot and piano virtuoso, was the hero of the June special edition of “Polish Market.” Paderewski, an ingenious interpreter of Chopin’s music, like Chopin himself, combines two perfectly united beings: a patriot and an artist. His patriotic souls animates his artistic genius. It must be remembered that Paderewski not only brilliantly performed music, but he wrote it too. “All the piano works” part 1 and 2 is the beginning of a 4-album series. These two first CDs contain a total of 39 tracks in a daring performance of Karol Radziwonowicz - a brilliant pianist educated in Poland and the USA. Radziwonowicz is the only pianist in the world to have recorded all the piano works of Paderewski! (French critics’ prize Diapason). These albums offer a cross-section of the composer’s works. From a humorous to a suite to an elegy. It was recorded in Warsaw in 1991 on a Steinway piano. It is worth noting that the two CDs contain a total of 12 premiere recordings of the composer. Emotional interpretations of these - sometimes popular, sometimes neglected - works are not burdened with sentimentalism. They are modern, in the best sense of the word, and built with impeccable performance technique.
Anthology of Polish Contemporary Music 1939-1945 Sinfonia Varsovia - 3 CDs
three-disc recording of World War II music is the first such anthology in Poland. The core of it is five songs composed in Poland under German occupation; two other are works by Polish expatriate composers. These are all works by young, promising, great composers of the time immediately preceding the outbreak of the war, which stopped their international careers. But these are also works written after the war by composers affected by the trauma of the historical apocalypse that occurred in occupied Poland. They are more or less expressly associated with that tragic time. The collection hides a real volcano of emotions, musical imagination and fantasy! It cannot be otherwise with Sinfonia Varsovia on the stage - musicians proficient in every genre, from the Baroque to contemporary times, under the baton of three masters: Jerzy Maksymiuk, Jacek Kaspszyk and Renato Rivolta, with the participation of young talented soloists: Marcel Markowski (cello) and Maciej Grzybowski (piano). Among the compositions are Symphony No. 2 Sinfonia Elegaica by Andrzej Panufnik, Symphony Orchestra Overture by Grażyna Bacewicz, Rhapsody Poland by Aleksander Tansman, Music for Strings by Karol Rathaus and Chamber Orchestra Concerto by Stefan Kisielewski. The anthology is a non-profit edition. It will be distributed among Polish music libraries and media libraries, music schools, ministerial institutes and Polish Institutes abroad. The album goes with the Polish and English language brochures. You need to get to know it!
72 polish market
Cultural Monitor – October 2014
Keith Jarrett & Charlie Haden - “Last dance” - ECM - CD
he last encounter of jazz masters who, together and alone, created various forms of exceptional music for several decades. The repertoire of this duet includes classical jazz pieces, like “Round Midnight” by Thelonious Monk, “Dance Of The Infidels” by Bud Powell, love songs, or gentle versions of songs such as “Every Time We say Goodbye” by Cole Porter. “When we play together, it’s like we sing together,” said Jarrett about his re-encounter with Haden. “The whole secret: it’s all about listening,” added Haden. Both musicians beautifully listen to each other. Jazz is like poetry: all, or at least much, is somewhere “between” here... It is a fascinating piano-double bass mix! Beautifully organically bound, perfectly planned and, in addition, being a record of genuine emotions, resulting from a real musical encounter. The result is a sublime, atmospheric and very valuable CD, which brings us to the highest levels of performance art, showing clearly the beauty of these compositions. Certainly, it is one of those CDs with the most beautiful sounds right after silence... Music flies slowly, encouraging you to taste almost every note, every sound. It is a pity that there will be no further encounters.
Rafał Sarnecki - “Cat’s Dream” - Brooklyn Jazz Underground Records - CD
afał Sarnecki is a jazz guitarist, composer, arranger, born in 1982 in Warsaw. He made himself noticed at the International Jazz Guitar Competition “Guitar City 2002” where he won the Grand Prix. Since 2005, he has lived and performed in New York. “It is a composer and musician we will surely hear of. It feels New York’s touch,” recommends Tomasz Stańko. And these are not exaggerated opinions. “Cat’s Dream” is already his third album, arranged for a six-person band accompanying him in New York for six years. The band consists of young stars of American jazz: Lucas Pino, a saxophonist and bass clarinetist, Glenn Zaleski, a pianist, Rick Rosato, a bassist, Colin Stranahan, a drummer, and Bogna Kicińska, a singer of Polish origin. For me, “Cat’s Dream” is a great discovery of this year, because it is a set of compositions that combine formal and sound experiments with artistic energy and musical ferment. Young musicians know very well the jazz canon and the sources of current fashion. But, perhaps most importantly, they treat it all by themselves. This very mature, coherent in sounding, while also formally diverse album juggles moods. Music in each of these moods is intriguing, and the band rocks and improvises. Without flirting excessively with melody, they are heading towards the pure beauty and the mystery... Listen to it at least a few times! And return to this music. Perhaps it is a bit like its title? On 5-14 December 2014 a tour promoting the album is planned in Poland. We are looking forward!
Krzysztof Pełech - “Not Alone” - V Records - CD
rzysztof Pełech is one of the most active musicians of his generation (born in 1970), constantly giving concerts, both as a chamber musician and a soloist accompanying chamber and symphony orchestras. The survey “Gitarowy Top” announced by the professional music magazine “Gitara i Bas” found him three times the best Polish classical guitarist. “Not Alone” is a record of his musical fascinations and a footprint of his artistic friendships established throughout his career. Pełech recorded the album with artists from all over the world - great figures of contemporary music (not just guitarists): Tommy Emmanuel, a finger-style guitar master from Australia, Marek Napiórkowski, a Polish chart-topping jazz guitarist, Carlos Pinana, an excellent flamenco guitarist of Murcia, Kuba Płużek, a young Polish jazz pianist and L.U.C., a Polish rapper, producer and beatboxer. The repertoire spans various genres: from jazz to pop, classical music, Latin music, flamenco and hip-hop. The music is sparkling with colours, Pełech’s guitar makes it consistent in form and style. The music (by many of the world composers) is not devoid of jazz, ethnic, film associations; it does provide many interesting experiences to the most sophisticated listeners. What is more, all the stops in this album are developed and presented with a great musical culture. Masterly balanced elements of ballad, jazz and ethnic climates, marked by individuality of the band leader and his friends-musicians, gives rise to illustrious music. Every time I listen to it, I am captivated with its form and sound.
October 2014 polish market
Chance of a great come-back for Andrzej Czajkowski Andrzej Czajkowski’s opera “The Merchant of Venice” will have its Polish premiere at the Grand Theatre National Opera in Warsaw on October 24, 2014. The director is Keith Warner. Czajkowski was a Polish pianist of Jewish descent, a Holocaust survivor, with composing ambitions. He put his heart and soul to the opera based on Shakespeare’s bitter comedy. He finished the work just before his death in 1982. The opera had its world premiere at the Bregenz Festival (Die Bregenzer Festspiele) last year. Maciej Proliński
ndrzej Czajkowski (1935-1982) showed his talent for music at the age of four but it was only at the age of 10 that he started learning to play the piano because, as a Jewish child, he had to spend the whole war in hiding with a Polish family. In 1945, he began to learn the piano at a school of music in Łódź. Three years later he left for Paris and continued his education under the guidance of Lazare Levi. After returning to Poland in 1950 he studied for a year at the State School of Music in Sopot in the class of Prof. Olga Iliwicka-Dąbrowska and then at the State School of Music in Warsaw in the class of Prof. Stanisław Szpinalski. After his success in the Fifth Chopin Competition in 1955, in which he won the eighth place, Czajkowski left for Brussels to study with Stefan Askenase. The result of Czajkowski’s work with the famous Polish pianist was his participation in the Queen Elisabeth of Belgium competition in 1956 where he won the third prize. Those who know his artistic career stress that Andrzej Czajkowski had a phenomenal memory. In New Zealand, he played a series of 22 piano concertos by Mozart, learning one piece a day by heart. Music critics praised his temperament and sensitivity to the beauty of sound.
74 polish market
Despite his successes as a pianist, Czajkowski’s biggest passion was composing. His oeuvre includes a piano concerto, string quartet and a few piano compositions. He worked on his opera from 1968 to 1982. He managed to complete the whole piece apart from a few orchestration pages. John O’Brien, the composer’s friend, is the author of the libretto based on Shakespeare’s play. “The Merchant of Venice” is divided into three acts and an epilogue. It is performed by an orchestra with the piano and clavichord. Bregenz Festival Director David Pountney has described the opera as a “polytonal composition existing somewhere between the worlds of Britten and Berg.” The story is set in Venice in 1586 and tells about two Venetian aristocrats and their skirmishes with Shylock, a Jewish moneylender. Antonio, who wants to help his friend Bassanio to marry Portia, a rich heiress, borrows money from Shylock. Such big deals usually involve jealousy, hate and the desire to take revenge. Many wonder why Czajkowski, a Jew who had survived the war in the Warsaw Ghetto, chose this controversial play. But in Czajkowski’s opera Shylock is first of all a very tragic figure, which may be compared with
Hamlet and King Lear. The premiere of the opera, staged more than 30 years after the composer’s death, won its director, Keith Warner, the prestigious International Opera Award in April 2014. The jury stressed that the director’s restraint allowed him to show the value of the score and the libretto. Since his debut in London in 1981 the famous British director has already produced more than 150 theatre plays, operas and musicals. He is particularly famous for his interpretations of Richard Wagner’s operas. At present he is artistic director at Royal Danish Opera in Copenhagen. In the past season, he directed splendidly Krzysztof Penderecki’s masterpiece “The Devils of Loudun” for the National Opera in Warsaw. Another world-famous Briton, Lionel Friend, will be conducting the National Opera choir and orchestra at the premiere performance of “The Merchant of Venice” in Warsaw. The cast includes Marisol Montalvo (Jessica), Christopher Robson (Antonio), Charles Workman (Bassanio) and Lester Lynch (Shylock). It seems the premiere will be an event of world significance. One should simply trust brilliant authors, even if they died forgotten centuries or decades ago. •
The famous work of El Greco –”The Ecstasy of St. Francis” – can be seen in the Grodzka Tower at the Royal Castle in Warsaw until 31 October 2014. The painting belongs to the Diocesan Museum in Siedlce and was made available to a wider audience as part of the Year of El Greco, marking the 400th anniversary of the demise of this outstanding artist. Maciej Proliński
The Ecstasy of St. Francis,” Poland’s only painting of Domenicos Theotocopulos, a Greek master working in Spain, called El Greco, is classified as one of the five most valuable canvases in Polish collections. Since its discovery, the priceless picture has never been borrowed from Siedlce, despite attempts made by the Royal Castle in Warsaw and the National Museum in Poznań, which has Poland’s best collection of Spanish painting. “The painting created in Spain’s heyday,called the Golden Age, attracts tourists, the admirers of the painting from the region, as well as art connoisseurs from such distant countries as Japan. This work of art, displayed recently to the public, presents the Saint Stigmatic, with his figure portrayed in a manner characteristic of the painter, which, while focusing the viewer’s attention, imperceptibly transfers him into the unknown yet extraordinary celestial (divine) sphere. A fantastic composition with sparkling light and extraordinary colours makes the figure of St. Francis look ecstatic, spiritualised and metaphysical, showing the ordinary mortals that the supernatural world does exist. A visible, evident texture, quick and determined strokes of brush indicate not so much the Spanish temperament of the Greek, but prove that such a work of art must have been created by a man of deep and ardent, almost mystical faith, trying to capture the flash of the Invisible,” stresses Fr. Robert Mirończuk, PhD, Director of the Diocesan Museum in Siedlce.
We do not know how come that the picture of such great value, dating back to the years 1575-1580, found itself in Poland’s Podlasie region. It is unclear what happened to it after being painted, who its owners were and when it was brought to Poland. It is known, however, that in 1927 it was purchased in one of the antique shops in Warsaw as an anniversary gift for Franciszek Dąbrowski, a parish priest, then it was kept in a manor in Tosie, from where it went to the vicarage in Kosowo Lackie. It was believed to be a contemporary expressionist painting, and therefore not much appreciated. It was not until 1964 that the canvas was rediscovered. It was found by two researchers from the Institute of Art of the Polish Academy of Sciences: Izabela Galicka, PhD, and Hanna Sygietyńska, MA, who for years visited villages and small towns to prepare subsequent editions of the “Catalogue of Historic Buildings and Works of Art in Poland.” Dark and dirty, with a tear in the upper left-hand corner, yet the painting attracted their attention, as it was somehow intriguing. When they announced having found a picture of El Greco in a vicarage, no one would believe them. On the initiative of Bishop of Podlasie Jan Mazur, in 1974, the painting was examined by experts and underwent conservation works led by Zofia Blizińska and Maria Orthwein under the direction of the eminent conservator prof. Bohdan Marconi. Doubts about the origins of the canvas were finally dispelled by the discovery of El Greco’s signature on it.
The confirmation of the authenticity of the work of such magnitude sparked sensation in the 1960s among Polish museum curators and art historians, but the picture did not become a destination for visitors from across Poland. The parish in Kosowo Lackie transferred it to the Diocesan Museum in Siedlce, and for years it was kept away from the p ublic. The church authorities feared that if there was too much buzz around it, it might be taken over by the State. It was only in 2004 that the canvas was first shown to the public. The painting is displayed at the Royal Castle in Warsaw on the occasion of the ongoing Year of El Greco. The author of the exhibition is Agnieszka Putowska-Tomaszewska. In order to protect it against damage or assault, it will be kept behind a sheet of bulletproof glass, which is perfectly transparent and in no way does it hinder the possibility of watching it. “It is a great event, as the inhabitants of Warsaw do not meet often with Spanish art. In addition, it is also a great event for the Polish history of art. Not every country in Europe carries an inventory of works of art, leading to many valuable paintings being discovered,” says prof. Andrzej Rottermund, director of the Royal Castle. He adds that the presentation of El Greco’s canvas inaugurates the “Gallery of Single Image”, which will display works from Polish and foreign collections once a year. •
October 2014 polish market
Paderewski’s Tribute to Warsaw. Warsaw’s Tribute to
Paderewski Maciej Proliński
n international festival devoted to Ignacy Jan Paderewski will be held in Warsaw on November 3-8. Entitled “Paderewski’s Tribute to Warsaw. Warsaw’s Tribute to Paderewski,” the festival is designed to remind the public about the memorable achievements and artistic work of this great Polish patriot, world-famous musician, knight of the Virtuti Militari Order and honorary citizen of Warsaw. The event is being organized by the Ave Arte Foundation. The “Polish Market” magazine is its media patron. Ignacy Jan Paderewski (1860-1941), a great Polish pianist, composer, politician and statesman. He was an example of a multidimensional person, a rare combination of an artist active in the spiritual sphere, creating beauty and refinement around himself, and a downto-earth politician in the hard reality of a new state. In 1919, he was Polish prime minister and foreign minister in the newly independent Poland. He achieved his first major success in his musical career in 1887 when he debuted as a pianist. A year later, he was already giving concerts on the world’s most important stages. As a politician, he is known for his participation in the Paris peace conference which led to the Treaty of Versaille ending World War I. It is said it was thanks to Paderewski’s influence that US President Thomas Woodrow Wilson included an independent Poland in his peace terms – the famous Fourteen Points he presented to the Congress in January 1918. In 1922, Paderewski left for the United States were he actively and successfully
76 polish market
continued his concert career. He died in New York in 1941 and was buried with the highest military honours in the honour lane at the Arlington National Cemetery near Washington among American presidents, outstanding politicians and military commanders. In 1992, on the initiative of Polish President Lech Wałęsa, Paderewski’s remains were brought to Poland and buried in the crypt of the St. John cathedral in Warsaw. The initiator of the Paderewski festival is Wiesław Dąbrowski, president of the Ave Arte Foundation, film director, screenwriter and organizer of artistic events. “Paderewski’s greatness, talents and attributes would be enough to share among several Polish politicians, diplomats and artists,” says Wiesław Dąbrowski. “He spoke five languages. A born orator, hard-working virtuoso and great composer, his artistic career has no equal in the history of Polish music. One example proving this is that his opera “Manru” is the only Polish work to have been staged in New York’s Metropolitan Opera and in many American and European cities.” The Honorary Committee of the festival is composed, among others, of Minister of Foreign Affairs Grzegorz Schetyna, former Polish President Lech Wałęsa, Prof. Władysław Bartoszewski, Senator Marek Borowski, Warsaw Metropolitan Cardinal Kazimierz Nycz, President of the National Broadcasting Council Jan Dworak, Mayor of Warsaw Hanna Gronkiewicz-Waltz, Swiss Ambassador to Poland Lukas Beglinger and former President of the Constitutional Court Jerzy Stępień. The festival will be officially inaugurated in the National
Philharmonic on November 3 with a concert by the National Philharmonic Orchestra under the baton of Jacek Kaspszyk and soloists Kevin Kenner and Beata Bilińska. They will play Paderewski’s Polish Fantasy, op. 19 and Piano Concerto in A minor, op. 17. Wiesław Dąbrowski’s documentary entitled “Paderewski: Man of Action, Success and Fame” will be shown on the same day. The film won the main prize in the Best Historical Documentary category at the DocMiami International Film Festival in Florida in 2014. The festival will also feature other events: concerts, panel discussions, master classes, film showings, exhibitions and publications. The concert “Paderewski Jazzed Up” will be given in the Palace on the Water in Łazienki Park on November 4. Pianist Włodek Pawlik, a 2014 Grammy Award winner, will be playing with members of his trio – Paweł Pańta (bass) and Cezary Konrad (drums). The concert will be a special premiere programme compiled by Pawlik and may include classical and jazz vocal presentations. The exhibition entitled “History of Paderewski’s Heart” will open in the Cadets’ Building in Łazienki Park on November 6, the 154th anniversary of Paderewski’s birth. An Opening Day at the Ignacy Jan Paderewski Polish Institute of Diplomacy will be held on November 8. In the morning, you will have an opportunity to have a walk around Warsaw in the footsteps of Paderewski with Rafał Jabłoński. Later, a meeting with Wiesław Dąbrowski and a panel discussion with the participation of Prof. Juliusz Chrościcki and Prof. Jerzy Kochanowski will be held in the History Meeting House. •
Photo: Andrzej Swietlik
Our worldclass orchestra Janusz Marynowski, director of the Sinfonia Varsovia Orchestra, talks to Maciej Proliński. Sinfonia Varsovia, an excellent ambassador for Polish culture across the world, is celebrating its 30th anniversary. The three decades were marked by your extremely important meetings with classical music giants, who must have left their impression on the orchestra. We should not forget about our roots. It is impossible not to say first that Sinfonia Varsovia has originated from the Polish Chamber Orchestra, a legendary Polish orchestra active in the 1970s under the baton of Maestro Jerzy Maksymiuk. In 1984, iconic violinist Yehudi Menuhin came to Poland to give concerts as a soloist and conductor. He was invited by Waldemar Dąbrowski, the then director of the Studio Art Centre in Warsaw, and Franciszek Wybrańczyk, the then director of the Polish Chamber Orchestra. Wind instruments were added to the orchestra for these concerts, which turned out to be a big success. After the concerts, Yehudi Menuhin suggested that the composition of the orchestra should remain the same as during the concerts and said he would like to work with the orchestra. This is how Sinfonia Varsovia came into being. We should remember about all these excellent names, but especially about Maestro Jerzy Maksymiuk, who performed at that time a rare artistic experiment. First, he gathered pm
78 polish market
a group of outstanding people, practiced with them for half a year and only then organized their first concert. So everything started with Maksymiuk, his work method, dedication to music, his energy and striving for perfection. I am convinced that the spirit that this outstanding Polish conductor and composer breathed into this orchestra has been present with us all the time. You can still sense that the musicians of this orchestra love to play. In 2008, we asked Marc Minkowski, a worldfamous conductor with Polish roots living in Paris, to collaborate with us. Until last year he was responsible for the musical vision of our orchestra. And Krzysztof Penderecki is still the orchestra’s artistic director. We are proud that, despite being very busy, Maestro Penderecki still has time for us. There is definitely no other orchestra in the world that would have an opportunity to work at the same time with such outstanding musical visionaries. Is this the key to success? This is great luck and obligation. Creating appropriate work conditions for an artistically integrated group of people focused on what they want to do is certainly also key to success. And then, it turns out that you can do it. And we can speak about a full and pm
tangible success. We also had the honour to work with Witold Lutosławski and Henryk Mikołaj Górecki. All these great Polish composers met with us at some point. At present, we often work with young Polish composers and even commission them to write music for us. This is our great strength, a strength of openness to meeting various composers and conductors rather than choosing a single conductor. The orchestra works fast. It has to if it wants to play more than 100 concerts a year with different repertoires and musicians. We play and record many compositions from various periods – from baroque to neoclassic, romantic and contemporary music. We can play both Vivaldi’s “Four Seasons” with 18 musicians and Penderecki’s “Seven Gates of Jerusalem” with 120 musicians. Let us reminisce about Franciszek Wybrańczyk. What kind of person and manager was he? Franciszek Wybrańczyk, who died in 2006, was a clarinettist and director of the Sinfonia Varsovia Orchestra for many years. After retiring he was its honorary director. He was a great visionary, who undertook the most difficult tasks and consistently carried them out, a great enthusiast and a charming person. Since 2007 our annual festival held in Warsaw pm
in autumn has been called the Franciszek Wybrańczyk Festival Sinfonia Varsovia to Its City. Those who have ever come to the festival will always remain loyal to it. And those who have ever met Franciszek Wybrańczyk will never forget him. Since 2008 Sinfonia Varsovia has been a cultural institution run by local government and its patron is the Warsaw municipality. The fact that after 25 years since your inception you finally got your permanent premises shows how much the patron cares about the institution. It is a great thing - a fulfilment of the past three decades. In 2008, the mayor of Warsaw and the Warsaw city council turned the orchestra into a local government-run cultural institution, which means we now have basic financial and welfare security. A year later, the city bought for the orchestra the historical complex of buildings at 272 Grochowska Street left behind by the Institute of Veterinary Warsaw University of Life Sciences SGGW. These developments were crucial moments in the history of the orchestra. The property on Grochowska Street has an unusual potential. In 2012, Mayor of Warsaw Hanna Gronkiewicz-Waltz, Krzysztof Penderecki and I signed a letter of intent for the construction of a concert hall on the premises of the orchestra. The hall will be able to accommodate almost 2,000 people. At the end of 2010, Austrian architect Thomas Pucher won the contest for the hall’s design. I have to add that just several years ago Sinfonia Varsovia was just a group of musicians who played a specific number of concerts a year and recorded a specific number of albums. But for several years now, thanks to the generosity and patronage of the Warsaw municipality, we have had “our place on Earth” where we can conduct wideranging activity, which has a strong influence also on residents of the district. They calls us “Our orchestra from Grochów.” pm
In the course of the three decades you have recorded 300 albums, which is really impressive. But for some time now you have also been releasing your albums by yourself. We still make recordings - like for example a full set of symphonies by Beethoven and Schubert, and Mozart’s piano concertos - for such giant record companies as Deutsche Grammophon, Decca, Sony and EMI. Our contribution to promoting Polish music includes the album “Polish Spirit” with violin concertos by Mieczysław Karłowicz and Emil Młynarski played by Nigel Kennedy and the Polish Chamber Orchestra. The international reception of the album was excellent. At some pm
point, we decided to release our albums also by ourselves. Our first work was an anthology of 12 albums featuring the canon of classical music and being a document of our meetings with great musical personalities, like Martha Argerich, Yehudi Menuhin and Nigel Kennedy. Then followed the album with Peter Tchaikovsky’s Symphony no. 6 recorded with Maestro Jerzy Semkow. And this year, we have released an anthology of Polish contemporary music 1939-1945. The project eventually took the form of a three-album non-commercial set, a sort of a musical panorama of the time of the second world war. The albums feature compositions by Andrzej Panufnik, Grażyna Bacewicz, Aleksander Tansman, Karol Rathaus and others. All the compositions have been performed by Sinfonia Varsovia under the baton of outstanding conductors: Jerzy Maksymiuk, Jacek Kaspszyk and Renato Rivolta, and with soloists of the young generation: cellist Marcel Markowski and pianist Maciej Grzybowski. A publication in Polish and English is attached to the album set. This is perhaps a continuation of your regular concerts in the Museum of the History of Polish Jews. Indeed, we have excellent cooperation with this museum. Both the museum management and us want this building to be filled with music. This year we have started a series of concerts in the museum entitled “Great Composers: Polish-Jewish Musical Culture vis-a-vis European Heritage.” The concerts we have already given have resulted in many discoveries, like for example “Music for Strings” by Karol Rathaus. Maestro Maksymiuk has simply fallen in love with this music. pm
Your anniversary year is full of events with the orchestra’s participation. Let us talk about some of them at least. We played our first concert as part of the celebrations of the orchestra’s 30th anniversary in the Krzysztof Penderecki European Centre for Music in Lusławice in January. In May, we marked the anniversary with a concert in the Grand Theatre National Opera. In June, we played on Zamkowy Square in Warsaw for many heads of state, including US President Barack Obama and Polish President Bronisław Komorowski, during the main celebrations of the 25th anniversary of the first free elections in Poland. We performed the suite “Freedom,” inspired by symphonic and jazz music, composed especially for the occasion by Włodek Pawlik, a Grammy Award winner. As a residential orchestra, we played in Turkey at two festivals – the Istanbul Music Festival and the International Izmir Festival – with outstanding soloists and conductors, including pm
Photo: Mirosław Pietruszynski
You can still sense that the musicians of this orchestra love to play. Piotr Anderszewski, Julian Rachlin and Krzysztof Penderecki. We appeared at the Murten Classics festival. We took part, as we do every year, in the most important music events in Poland: the Chopin and His Europe festival and the Ludwig van Beethoven Easter Festival. We still live by the energy of the grand jubilee of Krzysztof Penderecki in November 2013 when we had the honour to play under the baton of Maestro Lorin Maazel. It was probably one of the last concerts by the maestro, who died in July 2014. Finally, as every year, we gave concerts at the La Folle Journée festival in France, Spain and Japan. At the end of September, Warsaw was a venue for the La Folle Journée festival for the fifth time. What is so special about this “folly” that Sinfonia Varsovia has become so attached to it? It is our attempt at freeing classical music from the aura of sacredness. We respect the National Philharmonic and the National Opera. But we know that these institutions are for the elite. With these Folly Days, we remove all barriers, including the financial one. The idea of this international festival is to encourage and make it easier for the public to take part in classical music concerts, however without pm
October 2014 polish market
undermining the quality of performance. The initiator and founder of the festival is René Martin, an organizer of numerous classical music concerts across the world and the founder of Centre de Realisations at d’Etudes Artistiques à Nantes (CREA). The short concerts given from the morning to the evening in several rooms at the same time, low ticket prices and unique atmosphere mean these meetings with music are intended for everyone without exception. We have taken part in the festival since its first edition. The festival proves every year that there are tens of thousands of people in Poland interested in this kind of music and the form in which it is presented. Last year, 60 concerts were given in the Grand Theatre National Opera, with 1,000 musicians and 37,000 music lovers. The fifth festival in Warsaw this year featured a wide panorama of American music, with such leading American composers as Gershwin, Bernstein, Barber and Glass, and immigrants who settled in the United States, like Rachmaninoff. We also devoted much time to American popular music, including jazz, blues and musicals. The ideas of audience development since childhood are a driving force behind Sinfonia Varsovia’s activity. Why is it so important? We run educational programmes for primary school children. Around 3,000 pupils come to us every year to take part in music classes. Among our educational programmes for children are the projects we organize in conjunction with the Music Is for Everybody Foundation: Smykofonia, intended for children of up to five years of age, and Akcja Labirynt for primary school pupils and teachers. The biggest reward for us after these meetings is when the kids ask: “Can we come here outside school?” We also run the Sinfonia Varsovia Academy for students of universities of music who can learn here how to play with an orchestra. By doing so we build an environment for the orchestra, educate our successors. We also organize Summer Concerts on Grochowska Street, which is a series of chamber concerts, preceded by comments by musicologists. The concerts are designed to promote young highly gifted Polish musicians. This education since early childhood is certainly very important. And finally, one more challenge. One should not be afraid of music. It is not necessary to have vast knowledge and musicological preparation to be able to appreciate it. If a musician, apart from having the necessary technique, as this is the ABC, plays honestly everyone, without exception, is able to appreciate it. I invite you to Sinfonia Varsovia concerts. • pm
80 polish market
82 polish market
co Blik is a Polish company founded on 14 February 2011 by - Joanna Szybińska and Michał Korżawski. “The date was completely random, such a prank, but now we can celebrate each anniversary during the International Fairs of Organic Food - BIOFACH in Nuremberg,” says Korżawski. And so it will be during the next edition of this event. Eco Blik produces and distributes organic foods. Its first product was herbal blends. “It is important for us that the teas are easy in use, taste good and are a valuable alternative to normal tea. We have made the care of our health and well-being a real passion, and daily habits have become an impetus for the creation of products,” says Szybińska. The company has in its portfolio herbal blends, single herbs, millet, including ready meals with fruits, grained coffees and spices. All of these have certification. “On a daily basis, at home, we use for cooking only organic ingredients both for taste and health,” says Szybińska. “Living in this way, taking care of our health and avoiding conventional foods, I cannot imagine our dealing with non-organic food in business,” she adds. Besides the production, a very important activity is educational projects. “Through publications in the media and organisation of workshops and culinary classes, we try to make people realise that the saying: “You are what you eat” is definitely well-grounded in everyday life. It is the reason, among other things, why we are arranging a culinary studio, in which using organic ingredients, we will show not only how to prepare tasty, but most of all healthy meals.” Eco Blik also deals with individual projects in the HoReCa sector. “We cooperate with restaurants and spa hotels,” says Szybińska. “We prepare a herbal teas selection – modelled on the wine list – which fits with the chef’s menu, reflecting the flavours, aromas, and the atmosphere of the place. We also develop herbal programmes for Wellness & Spa, which are part of the beauty treatments. Herbs are not only pharmaceutical substances; they are primarily the treasury of both culinary and care inspirations,” she adds. Thanks to Eco Blik, Polish herbs are back in fashion, and millet grits, so popular in Poland, have a chance to compete with groats imported from China. “We are constantly fighting the stereotype of bitter millet,” says Korżawski. “There is no such thing as a bitter millet. Bitterness is the result of rancidity, and it means that the groats is spoiled and should be thrown away. It is usually the effect of long transport. Our millet, coming from our latitudes, will always be
sweet and tasty, and buying it will in addition strengthen the local economy,” he adds. A somewhat unusual product in that “Polish” product line is grainy coffees. But there is an explanation to it. “Privately, I looked for a very long time for organic but grainy coffee, i.e. coffee that retains its qualities longer and that you can grind by yourself, adjusting the grinding thickness to your favorite brewing technique,” says Szybińska. “Usually, however, if coffee is grainy, it is not organic, and if it is organic, it is already ground and unfortunately deprived of flavour. There is clearly a gap in this market segment. In addition, coffee consumers are increasingly aware. They begin to realise the shortcomings of instant coffee and coffee capsules, and sign up for courses for baristas to learn how to make coffee at home as good as you get in a café. What is more, it is increasingly said that non-organic coffee is the most pesticide-sprayed plant in the world. Hence there is our line Coffee Cake - grainy organic coffees, 100% arabica, burnt on the spot, according to our original formulas. We choose the degree of burnout based on the taste of each coffee,” adds Szybińska. “In the nearest future, besides new products, we are planning to expand into foreign markets, which are increasingly interested in our product line,” says Korżawski. “But in the first place, we want to build domestic outlets and awareness among Polish consumers. There is still a lot to be done,” he adds. This growing awareness and debate on the benefits of organic foods mean that there is more room for ecoproducers. “I am very pleased with this phenomenon. Thus, not only will organic products be more available on shop shelves, but most of all there will be more healthy people, free from diseases of affluence, for whom the proper eating habits are important,” he adds. •
Living in this way, taking care of our health and avoiding conventional foods, I cannot imagine our dealing with non-organic food in business.
eCO October 2014 polish market
4th Meat Festival
Meaty farewell to summer holidays in Lublin
84 polish market
On August 30 and 31, residents of the eastern city of Lublin had an opportunity to take part in the Meat Festival (Świętomięs) organized for the fourth time by the Association of Polish Butchers and Meat Processors (SRW RP) to promote pork, poultry and beef. The festival was held on Zamkowy Square at the foot of the Lublin castle, a place from where you could have an excellent view of the event. However, hundreds of Lublin residents decided not to content themselves with merely watching and took an active part in what the two-day programme offered them. They were attracted by the smell of roasted, stewed and cooked meat, and by numerous theme zones where specialists dealing with health, dietetics and sport offered advice to the visitors. The conference “Polish Meat Sector – A Difficult Road to Success” was held before the official opening of the Fourth Meat Festival. It was attended by local government officials with Lublin Province Marshal Sławomir Sosnowski, trade organizations, scientists of the Universities of Life Sciences in Lublin, Poznań and Warsaw, and numerous members of the SRW RP. The moderator was Jacek Leonkiewicz, with more than 10 people having taken part in a matter-of-fact and interesting discussion. The activity of the organizers, the SRW RP in conjunction with the Polish Craft Association (ZRP) and the Chamber of Small Business and Enterprise in Lublin, was concentrated in
the theme zones, like for example the Meat University under the slogan “Promotion through Education,” shows, sports activities with traditional karate competitors and Daniel Iwanek, a three-time champion of the world, and culinary workshops conducted by well-known culinary authorities. Kids besieged the Young Farmers’ Homestead where they could take part in many plays and artistic contests. From the noon to the evening there were concerts on the main stage given by the Jawor UP Song and Dance Ensemble from Lublin, Sweet Band, the Jaćmierz Youth Brass Orchestra, Babylon, Poznań Brass, Elektryczne Gitary, LemON and other bands. Actors of the W Chmurach Theatre from Poznań took part in festival parades. This time they were inspired by the times of Polish Renaissance poet Jan Kochanowski. Traditional Polish hospitality is part of the Meat Festival. This time, a great treat for meat gourmets was the Świętomięs Spitroaster where a bull weighing several hundred kilogrammes was roasted. Apart from the roasted beef, the gourmets could also taste goulash soup from the Świętomięs Pot, and poultry stewed in vegetables from the Świętomięs Pan. The chefs who conducted the Meat University workshops also served meat dishes while hostesses walking around the Lublin Old Town distributed balloons with the festival slogan “I eat meat” among the kids and offered cured meats prepared especially for the occasion by ZM Łmeat-Łuków to adults. •
YOUR PARTNER IN LOGISTICS ALL OVER THE WORLD
THE WORLD NEEDS
ECO-SOL VERTICAL AXIS WIND TURBINE SYSTEM
tel: 22 625 39 86 email: email@example.com ul. Kopernika 5/7 00-367 Warszawa