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ISSN 2083-0645 – PLN 79 (8% VAT included)

Warsaw Business Journal’s Made in Poland 2013

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Made in Poland 2013

table of contents

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MADE IN POLAND 2013 Table of Contents

Foreword. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Chemicals. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33-37

From the Ministries

ICT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38-44

Ministry of Economy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Ministry of Agriculture. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Aviation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45-50 Autos . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51-53

Interview The Polish Agency for Enterprise Development. . . . . . . . . . . . . . . . . . . . . 5-6 From the Chambers of Commerce. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7-11 Macroeconomic Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12-16 Special Report: Research & Development. . . . . . . . . . . . . . . . . . . . . . . 17-26

Cosmetics. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54-57 Furniture. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58-59 Heavy Metals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60-63

Making Headway. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17-19

Pharmaceuticals. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64-66

Patents. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19-23

Mining. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67-69

Interview – NCBR. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24-25 Technology Parks. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26-28

Partners. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74-79

Sector Analyses Food. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29-32

Warsaw Business Journal’s

A GUIDE TO POLISH EXPORT 2013

Valkea Media SA

Government Agencies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80

Warsaw Business Journal Group Editor-in-Chief: Andrew Kureth (akureth@wbj.pl) Editors: Jacek Ciesnowski (jciesnowski@wbj.pl) Beata Socha (bsocha@wbj.pl) Journalists: Remi Adekoya, Joanna Irzabek, Karolina Kowalska, Marta Mardosz, Brendan Melck, Kamila Wajszczuk

ul. Elbląska 15/17 01-747 Warsaw, Poland (+48) 22 257 75 00   (+48) 22 257 75 99 6  NIP: 525-21-77-350

%

www.valkea.com

Poland’s 50 Largest Exporters. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70-73

www.wbj.pl

Sales & Marketing Director: Agnieszka Brejwo (abrejwo@wbj.pl) Made in Poland Project Manager: Marcela Czapla (mczapla@wbj.pl) Sales Team: Magdalena Karpińska, Agnieszka Kuczyńska, Ewa Brogosz-Korycka

Graphics/Design/DTP: Piotr Wyskok

PR & Marketing Manager:

Cover Design/Photo Editing: Łukasz Mazurek

Katarzyna Marek (kmarek@wbj.pl)

All photos: Companies’ press materials, Shutterstock

Print & Distribution Coordinator: Krzysztof Wiliński (kwilinski@valkea.com)


foreword

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Andrew Kureth Editor-in-Chief Warsaw Business Journal Group

T

he phrases “hi-tech,” “innovative” and “state-of-the-art” weren’t often mentioned in the same breath as “Polish economy” until recently. But that is changing, and rapidly.

For years now Poland has had a strong stable of young, worldleading programmers and computer specialists, but it was understood that they were being hired off by the likes of huge global tech companies that were investing in Poland, such as Google, Microsoft or IBM. Perhaps some went to large Polish IT firms like Asseco or Comarch. They were something to be proud of, but few predicted that they would become the foundation for an entrepreneurial explosion. To be fair, Poland still places low in innovation rankings. Just as Made in Poland was going to press, the European Commission had just released a report putting Poland fourth-lowest in the European Union in terms of innovativeness. But that belies a small but growing group of hi-tech firms that Poles are starting up. Poland’s growing strength in this field was on full display at CeBIT 2013 in Germany, where Poland was the “Partner Country.” From ERP software to video games to cloud computing, Polish firms made – and are making – their mark. The trend is spilling over into Poland’s export sectors as well, which is why in this, our third annual edition of Made in Poland, we have a special report on research and development in Poland (see pp. 17-28). Poles have come up with some innovations that will have global applications – and money being spent on R&D is on the rise too, a welcome development. Poland’s export sectors are leaders in R&D – from developments in cosmetics to mining machinery to pharmaceuticals to aviation, Polish firms are producing state-of-the-art products at lower prices than their Western counterparts, putting them in prime position to find new markets and increase market share in those in which they are already present.

Made in Poland 2013

Take cosmetics producer Inglot, for example. The homegrown firm recently developed a type of nail polish that “breathes,” allowing water underneath while maintaining its color. While some might not find that particularly remarkable, it was a boon to Muslim women, who are required to wash their arms and hands – including their nails – before daily prayers. Muslim scholars have since endorsed Inglot’s nail polish as permissible. Then there is Polpharma, which recently won the award for “Most Innovative Product” from the Polish Academy of Sciences for its innovative technologies used in producing osteoporosis drugs. Not only do the innovations make the drugs cheaper to produce and safer for the patient, they also allow for significantly more environmentally friendly production. In Aviation, PZL-Świdnik and PZL Mielec produce cuttingedge helicopters that serve the most demanding civilian and military customers. The list goes on, but you can read more about how Polish exports are becoming more hi-tech and sophisticated in our sector analyses (pp. 29-69). For foreign firms considering importing Polish products or cooperating with Polish firms, we’ve provided some other resources here: a list of Poland’s largest exporters and contact details to government agencies that aid importers and foreign businesses. There’s also a bevy of analysis from our partners at Poland’s various chambers of commerce (pp. 7-11) and institutions that work with exporters, including patent attorneys offices (pp. 20-23) and development agencies (pp. 5-6, 25-26). We hope that these serve you well in your search for a Polish business partner. As part of its mission, the Warsaw Business Journal Group – which comprises Made in Poland, the flagship weekly Warsaw Business Journal and several other publications – supports Polish exports. For that reason, we continue to publish Made in Poland, which has been welcomed in the market to no little success. Exporters and government agencies alike have found the publication useful in their promotion activities. We also continue to hold a conference each year dedicated to exploring the issues facing Polish exporters. Bigger, stronger, but also more sophisticated and researchoriented – Polish exporters continue to prove their value to the Polish economy. Have a look at the following pages; we’re sure they’ll prove their value to your business as well. v


Made in Poland 2013

from the ministries

Janusz Piechociński Deputy Prime Minister and Minister of Economy

P

romoting Polish brands in global markets and supporting those companies that plan to extend their business beyond the borders of Poland are among the priority tasks of the Ministry of Economy. We analyze the international market on an ongoing basis and are aware that the implementation of new technologies is helpful in building the competitive edge of any business. Therefore, we have selected 15 programs to promote those sectors of our economy which stand out in terms of innovation. We believe that each of these programs has the potential to become a Polish export success. The promotion programs include 33 countries, 10 of which are EU members. We hope that over the next few years, at least some of these sectors will produce flagship brands, promoting a positive image of Poland.

Companies joining the program can count on the support of the Ministry. We co-fund promotional projects, such as the organization of conferences and seminars. The promotion of entrepreneur participation in major international trade fairs is also included in the program. Our funds may be used to cover such expenses as venue hire and the technical management of events, as well as the translation and printing of information leaflets. We also participate in the collective costs of issuing export-promoting publications. The grant includes the costs of paper, printing, warehousing, compact disc stamping, etc. No more than fifty percent of the eligible expenses may be subsidized. We have selected five countries that have great potential: Canada, Brazil, Algeria, Kazakhstan and Turkey. In 2013, we will be endorsing Polish brands in these countries at such events as trade fairs, exhibitions and trade missions. Along

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with the chance to present their products and services, domestic companies may also participate in seminars, matchmaking meetings, and industry meetings with foreign partners. Hopefully, these activities will encourage businesses to increase the penetration of Polish goods and services into these markets. Our goal is to show the world that the Polish economy is stable and growing. We remain at the forefront of European countries in terms of GDP growth, thanks to our excellent business environment. The Ministry of Economy has developed a number of solutions to simplify the process of establishing and running a business; more are being planned. An act on reducing certain administrative burdens in the economy came into force on January 1, 2013, with the intention of greatly improving business conditions in Poland, reducing payment backlogs and eliminating unnecessary information duties. These regulations are particularly beneficial to small and medium-sized companies that do not receive timely payments from their customers. The current legislation also increases the transparency of administrative operations. We are currently working on a fourth deregulation act, with the main purpose of reducing obstacles to conducting business activities. We have focused on simplifying bureaucratic complexities, limiting information duties and building mutual trust between companies and state institutions. These activities contribute to the favorable investment environment in our country, promoting the development of innovative and competitive products. Thanks to the influx of foreign investment projects, we gain access to new technologies and know-how. Polish entrepreneurs can develop their products and services in cooperation with scientists to create goods of an even higher standard. Furthermore, we pride ourselves on our highly qualified staff – well-educated employees valued by international companies. This is why products that are “Made in Poland” are often chosen by foreign companies and enjoy a good reputation around the world. v


from the ministries

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Made in Poland 2013

to the European Union in 2004, the figures have more than tripled. There is no other area where our international trade would post such figures. This makes it worthwhile to invest in agriculture and the processing industry; it also means real jobs and budget revenues. Stanisław Kalemba Minister of Agriculture and Rural Development

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oland has been a member of the European Union since 2004. The changes that Polish rural areas have undergone over that period are immense. Farmers and processors have taken advantage of all the possible opportunities related to the measures available before and after accession. This has allowed them to modernize a great number of farms and processing plants, especially in the meat and dairy sectors. In the countries of the “old” EU15, such changes took place back in the 1970s. That means Polish processing plants have the most up-to-date technology.

Add to that Polish farms’ traditional operating methods and excellent recipes for Polish food, and we have great initial conditions for success in the foreign trade of agri-food products. The role for the administration, the ministry and its subordinate services is to agree on veterinary and phytosanitary conditions for our products to be sent to specific markets, while how these opportunities are taken advantage of depends on producers, processors and exporters themselves. For years, the ministry has operated a program called “Try Fine Food,” meant to promote top-quality products. The program is becoming increasingly popular among producers, who see it as an opportunity to promote their products. Products labeled with this mark of quality are easy to see in shops and enjoy consumer confidence. Owing to all of the above, we have achieved record-high figures in foreign trade of agri-food products. The data for 2012 show nearly €17.5 billion in sales and a positive trade balance of €4.1 billion. These results show that since our accession

We also need to bear in mind that according to demographic forecasts, due to the increase in population in the years to come, by 2050 we will need to expand food production by 70 percent globally. It would be worthwhile for Polish farmers, processors and exporters to participate actively in that growth. We have very good food, which is popular among consumers across the European Union and – increasingly often – beyond it. Thanks to the high quality of Polish products, their unique flavor and aroma, Polish food has been gaining a presence also in the countries of the Middle and Far East. It is appreciated in Japan, China, South Korea and many other countries. With no limits on the movement of persons within the European Union, many of our fellow citizens work in various countries of the Community. Not only do they bring their enthusiasm for work and the skills that employers want, but they also bring their customs and eating habits, dishes and products. They familiarize the citizens of those countries with Polish food. This obviously creates a demand for specific products as well, a fact that is perfectly familiar to merchants, who try to meet that demand. Of course, demand for Polish food is also supported by promotional activities and participation in exhibitions and fairs, where you can see how crowded Polish food stands are. That interest, confirmed by foreign trade figures, coupled with the constant growth of exports and the positive exchange balance, proves beyond any doubt that consumers in the European Union – and there are approximately half a billion of them – readily choose our food products. I am convinced that even the completely unwarranted charges concerning the quality of our food, made without concrete evidence, are not able to change that. I believe that food “made in Poland” will continue to be bought eagerly by consumers, that is – that foreign consumers will not stop buying it in Poland. v


Made in Poland 2013

interview

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Helping small business think big Polish SMEs are becoming more competitive but still need support in venturing into new markets and developing innovation, says Bożena LublińskaKasprzak from the Polish Agency for Enterprise Development (PARP) This year’s CeBIT fair was, thanks to PARP’s involvement and Poland’s strategic partnership at the fair, the first chance for many Polish companies to showcase their products and services on an international scale. What can be done to ensure Polish companies will have similar opportunities also in the future? Bożena Lublińska-Kasprzak: CeBIT is one of the most important events and meeting places for companies from the IT sector. It has been bringing together IT specialists and entrepreneurs since 1986. This year’s fair was an extraordinary event for Polish companies. Poland was a strategic partner at the 2013 CeBIT fair, which was a part of a three-year Polish IT sector promotional program called “Do IT with Poland.” There were 122 Polish vendors present at CeBIT and additionally some 100 Polish enterprises which participated in some 1,500 business meetings organized as part of a Future Match program that we were co-hosting and which provided a framework for making new business connections. At the fair in Hannover, Polish companies had over 3,000 square meters at their disposal prepared by PARP. We also provided a special Meet & Match Onsite package for 20 companies awarded in the Innovative E-service and B2B Technology competition to facilitate cooperation between these companies and their potential business partners. Each of the 17 companies that took part in it conducted at least 10 business meetings. But CeBIT was only one of over 30 fairs and missions that PARP is participating in this year to promote Polish enterprises and their innovations, such as the fair on industrial automation in Hannover, the Hong Kong Electronics Fair in April, the Annual B2B Matchmaking Forum “Russia – Europe: Cooperation without Frontiers” in June in Moscow, or the Global Game Exhibition fair in Busan, South Korea in November for video games designers and producers. In 2013 PARP will organize trade missions and matchmaking events all over the world supporting Polish businesses, particularly those small and medium-sized ones. We estimate that over 600 Polish entrepreneurs will directly benefit from PARP’s programs this year.

How does PARP support Polish exports, especially that of SMEs, which are, or should be a pillar of any modern economy? Small and medium-sized companies are the major driver of growth in our economy. They also have a great potential for innovation, as the CeBIT fair in Hannover has shown. That is why one of PARP’s main functions is sharing its knowledge and expertise with Polish and foreign entrepreneurs about how to set up a business here, about the intricacies of Polish and EU law, foreign markets, as well as financing opportunities for SMEs. We estimate that some 200 consultations will be conducted in 2013, predominantly with small businesses. Apart from consultancy services, PARP provides promotional and financial support for Polish SMEs. We are implementing a number of programs aimed at promoting Polish small and medium-sized companies abroad. We are currently in the process of implementing a so-called “Project Commercialize” which was designed to help SMEs apply for EU funds in the “Research for Benefit of SMEs” program. The project is a joint initiative of several organizations from the UK, Finland, Turkey, Spain, Poland and Denmark. It will provide SMEs with tools necessary to compete on international markets. A group of mentors and trainers will teach entrepreneurs how to apply for and benefit from the EU program called Horizon 2020,whose purpose is to support R&D initiatives of small and medium-sized businesses. Additionally, we are implementing a program called “Passport for exports,” which is part of the EU’s Innovative Economy


Interview

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Made in Poland 2013

program. It is intended for micro, small and medium-sized enterprises. Its goal is to help businesses boost exports, help them establish fruitful relations with foreign partners and increase the recognition of Polish brands abroad.

pean Commission’s Competitiveness and Innovation Framework Programme (60 percent) as well as by the Polish Ministry of Economy (40 percent). The CP-BSN’s budget for 2013-2014 is over €2 million, out of which €487,341 is covered by PARP.

How is Poland viewed in terms of innovative technologies? What is PARP doing to promote them? Innovations made in Poland are becoming more popular abroad, as was evidenced at the CeBIT fair in Hannover. After the event, Frank Pörschmann, board member of Deutsche Messe AG, which organized the fair, said that Poland had set a high benchmark at CeBIT for future partner countries. Mr Pörschmann said, “Poland’s tremendous achievements and potential as an innovative, high-tech nation truly came across.”

Dialog is crucial in disseminating new technologies. That is why we are preparing to launch another program in cooperation with several other European countries, called “Mobilizing institutional reform in research and innovation system for better scientific, innovation and economic performances in Europe” (MIRRIS). Its goal is to boost the efficiency of support systems for research and innovation in Europe by promoting analyses, dialog and mutual learning process between companies. The consortium comprises institutions from Poland, Italy, Germany and Austria.

One of PARP’s main goals is nurturing innovation of Polish businesses by implementing programs providing companies with funding for their research projects. One such program, “Central Poland – Business Support Network” (CP-BSN) has been operational since 2008. It provides funds for innovation and promotes international technological exchange. The program, which is a part of the Enterprise Europe Network, is coordinated by six partners, including PARP, from central and northern Poland. The program is funded from grants in Euro-

We are also applying for funds from the ministry of economy for our “Polish Silicon Bridge” project which is to accelerate the development of selected enterprises, mostly start-up businesses in the new-technologies sector. The project will also receive financing from the Innovative Economy program and will be carried out both in Poland (training) and on the West Coast of the US (consulting). We have secured the cooperation of the Trade and Investment Section of the Polish embassy in Washington, DC. v

Polish Agency for Enterprise Development (PARP) T

he mission of the Polish Agency for Enterprise Development (PARP) is to act for the benefit of Polish economic and social development.

The purpose of PARP activity is to support entrepreneurship through implementation of actions aimed at using innovative solutions by entrepreneurs, development of human resources, expansion on international markets, and regional development. It also supports and promotes sustainable production and consumption. Through its work, PARP contributes to the improvement of the competitive position of the Polish economy, both within the EU and on international markets. The Polish Agency for Enterprise Development (PARP) is a state agency that has supported entrepreneurs for 12 years. PARP responds to entrepreneurs’ needs and provides stimuli for their further development. The agency distributes billions of euros under several EU and national support programs designed mainly to assist small and medium-sized enterprises. These funds may be used for investments, innovations and increasing the competence and qualifications of both managers and employees. A considerable portion of these funds is provided to entrepreneurs through Business Environment Institutions such as the National SME Service Network, technological parks and incubators. The competitive position of small and medium-sized enterprises on the domestic, European and global markets depends largely on long-term planning based on a specific operational strategy.

Even though entrepreneurs’ awareness of strategic management is gradually growing (PARP research showed that nearly 50 percent of SMEs have developed focused operational strategies and defined their target groups), their strategic plans are usually still too general and often fail to take into account the companies’ strengths and weaknesses. In order to better equip Polish businesses, particularly SMEs, in their ventures in foreign markets, PARP provides training and consulting on export activity and conducting business activity abroad, and actively disseminates information on all fairs, exhibitions and other business events taking place in Poland and abroad. PARP cooperates with a number of foreign agencies and organizations promoting entrepreneurship. Apart from a wealth of knowledge, PARP also offers entrepreneurs very tangible support in form of grants, subsidies and other financing opportunities. It co-finances several EU programs for promoting Polish exports and fostering innovation, such as Project Commercialize, Passport for Exports or the Polish Silicon Bridge. PARP organizes and participates in several dozen matchmaking events, conferences and trade missions where Polish entrepreneurs can make new business contacts using the Enterprise Europe Network. In 2013 it will organize trade missions for Polish businesses not only in Europe but also in several Asian countries, such as China, India, Israel, Japan, South Korea and the UAE, as well as in the US. v


Made in Poland 2013

from the chambers of commerce

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US-Polish Trade: A deepening relationship Tony Housh, Member of the board of directors, American Chamber of Commerce in Poland

Direct trade continues to grow between the US and Poland and the opportunities for further growth are excellent. As in 2011, Poland ran a significant trade surplus with the US in 2012 of over $1.2 billion.

The trade relationship is broad and continually adding new segments and depth to the commercial relationship. It is not just about goods – as important as they are to both economies – there is also a growing trade in services as American companies understand that remote business process outsourcing and shared service centers in the CET time zone can be an excellent partner to the North American-based op-

erations, providing near 24/7 coverage and support. In the first quarter of 2013 we see the future looking much brighter in terms of trade between Poland and the United States. Still, US-Polish trade could significantly benefit from a free trade agreement for several reasons. First, we can count on improved procedures for customs and shipping which will lower trade costs and help companies on both sides of the ocean be more cost effective and price competitive. Moreover, product “passports” should help European companies manage the challenges of 50 states and their similar but often different regulations and standards. Improved harmonization of standards and procedures will help free commerce from repetitive administrative burdens and allow companies to focus more on growth and its resulting job creation. v

Belgian-Polish Trade: A (rapidly?) growing partnership The inflow of Belgian investments to Poland has accelerated in recent years and offers very promising prospects in a broad range of sectors, such as infrastructure, plastics, chemical products, machinery and equipment, animal products, optical instruments, transport equipment and alternative energy sources.

Bruno Lambrecht, Chairman of the board, Belgian Business Chamber

With more than 500 companies with Belgian capital operating in Poland, the country ranked 11th among Belgium’s main partners in 2011. According to the Belgian Foreign Trade Agency, Belgian exports to the Polish market amounted to €5,487.4 million in 2011, while imports totaled €3,182.2 million, making Poland the 16th largest supplier to Belgium. The geographical location as well as the size of the market and the large number of well-educated employees represent undeniable pull factors for Belgian investors. Poland is also

increasingly perceived as a platform for further expansion, particularly towards Eastern Europe. The successful economic transition of the past 15-20 years is clearly illustrated by the progressive replacement of numerous Belgian expatriate employees by their Polish counterparts, including at the middle management level. In this context, the Belgian Business Chamber (BBC) represents a powerful lever for business interaction, not only within the Belgian community but also with potential Polish partners and relevant authorities, notably through the organisation of various events such as the Belgian Days, business mixers, conferences on issues of interest for companies and B2B meetings. Along with this intense activity, the BBC, together with the Federal (Belgian Embassy) and Regional Representations (Brussels Invest and Export, Flanders Investment & Trade, Walloon Agency for Exports and Foreign Investments), can also act as a facilitator for specific requests formulated by Belgian investors when difficulties arise. v


from the chambers of commerce

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Made in Poland 2013

British-Polish Trade: A mixed picture

Last year presented a mixed picture in terms of UK-Polish trade. Exports from Poland to the UK continued to rise – for the 15th year in a row. However, UK exports to Poland fell massively compared to 2011. Other than a non-repeated one-off trade in oil, worth over half a billion pounds, British exports fell across many sectors of trade in manufactured goods. And this is despite the sterling becoming some 10 percent more competitive against the złoty.

Michael Dembinski, Head of Policy

The UK remains Poland’s second-largest export market after Germany, having overtaken both Italy and France. According to Poland’s statistics office GUS, the value of Polish

exports to the UK last year rose by 8.8 percent compared to 2011, to €9.5 billion, while British exports to Poland were down by 8.1 percent compared to 2011, to €3.7 billion. Britain slipped to ninth place in terms of Poland’s import source. Poland’s trade surplus with the UK (up 22 percent to €4.8 billion) is larger than with any other trading partner. In the coming years, the BPCC will be engaging in a new project to boost UK exports. It will involve closer communication and support for British exporters whose products stand a realistic chance of success on the Polish market, but who are not yet present here. Most of these will be midsized companies. Watch this space – this time next year, I hope to be able to report that UK exports to Poland have bounced back! v

Chinese-Polish Trade: A world of opportunities When in 2004 China became a member of the World Trade Organization (WTO) it was the beginning of a new age for companies looking to sell their products in the Middle Kingdom. China quickly became one of the most attractive markets in the world. However, Polish trade with China remains highly asymmetrical.

Rajmund Żelewski, Vice chairman of the Polish-Chinese Chamber of Commerce

Polish exports to China continue to be worth 10 times less than imports. At present, there are only a few Polish companies recognizable in China which are the market leaders in their sectors: machine producer Kopex, wooden floor manufacturer Barlinek and chemicals producer Selena. But the most established Polish company in China is the metals giant KGHM.

Polish producers wanting to expand to China are facing a great opportunity, with the Chinese society rapidly getting richer and looking for high-quality goods, including luxury products. Exporters to China can count on support and a range of incentives from Chinese authorities including preferential taxation on foreign investments. The stable situation of the Chinese economy also adds to its allure. When looking for a way into the Chinese market, the easiest way is to find and start cooperation with a local business partner. Experience shows that attempts to operate independently in the market are doomed. Institutions, such as the Polish-Chinese Chamber of Commerce are there to facilitate companies’ ventures to the Chinese market by providing all the necessary information and assistance, both in exports and when registering a Polish company in China. v


Made in Poland 2013

from the chambers of commerce

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French-Polish Trade: Record-high exports Monika Constant , General director of the French Chamber of Industry and Commerce in Poland of products abroad.

The value of goods exported by Polish companies in 2012 amounted to a record-breaking €145.9 billion. Little by little, Poland is becoming a leader among European economies and the slogan “Made in Poland” will be found on the increasing number

Polish producers are winning new markets not only with advantageous prices but also with the improving quality, short delivery times and innovative ideas, that help them fill a lot of economic niches. France is one of Poland’s main trading partners, according to the most recent data from the Ministry of Economy. In 2011 the value of Polish goods exported to France exceeded €8.3 billion, which is Poland’s best outcome in history. Polish exports to France include predominantly: mechani-

cal devices, vehicles and transport equipment, yachts and boats, electronic equipment, agricultural and food products (including organic), furniture, wood and steel products. The performance of Polish exporters is reflected not only by statistics, but also in everyday life. The Business Development Center within the French Chamber of Industry and Commerce in Poland (CCIFP) has helped Polish entrepreneurs enter the French market for years. Last year CCIFP organized a series of webinars for Polish companies about operating on the French market. More than 250 people participated in these online workshops and some of them later decided to carry out a trade mission in France. French partners pay increasing attention to the high quality of Polish products and to attractive prices, as well as to the geographical and cultural proximity of our countries which has a positive effect on the development of commercial relations. v

German-Polish Trade: Further diversification Data on the condition of Polish foreign trade shows that in January 2013 Poland exported goods worth €11.8 billion, an increase of 7.8 percent in comparison with January of last year. In 2012 Poland recorded a negative balance with developing countries (-zł.6.8 billion) and countries from Central and Eastern Europe (- zł.3.9 billion). A positive balance, in turn, was obtained in trade with developed countries (zł.9.8 billion), including EU member states (zł.10.2 billion).

by 0.8 percentage points to 26.1 percent.

Although the EU remains Poland’s main trading partner, Polish exports are becoming increasingly diversified in terms of target markets. While still accounting for over a quarter of total Polish exports, Germany’s share fell during this period

Exports to Arab countries such as Libya, Yemen, Saudi Arabia and Syria, are showing a real boom. Price, quality, taste and reliable deliveries are what matters to buyers from these countries. v

Michael Kern, General director, member of the board of the German-Polish Chamber of Industry and Commerce

Food is the main growth sector for Poland’s exports to the EU. In 2012, food exports increased to €17 billion, while imports amounted to nearly €13 billion. Besides Germany, the biggest buyers of Polish food include the UK, the Czech Republic and Russia. Poland exports mainly meat, sweets, bread, cheese, fruit juices, frozen fruit and smoked fish. A growing number of companies are looking to other markets and analysing new export opportunities, and that includes not only the large and global corporations but also from small and medium enterprises.


from the chambers of commerce

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Made in Poland 2013

Polish-Indian Trade: Exceptional potential for growth Ryszard Sznajder, Chairman of the Polish-Indian Chamber of Commerce

Despite the continuous increase of business done by Polish companies in that market, Poland is still not taking the full advantage of the economic benefits that cooperation with India offers. India accounted only for 0.5 percent of Polish total exports in 2012.

The situation seems to be steadily improving, though. In 2012, exports grew by 27 percent and amounted to $666 million, while in the same period imports fell by 8 percent to $1,240 million. As a result, 2012 was the first year in a long time when the trade deficit on current accounts fell – from $831 million to $574 million. India has imported Polish products for decades, mainly machinery and equipment for the energy sector, such as generators and turbines, but also complete power plants. Polish defense, shipbuilding and equipment for the rail industry also

have a good reputation in India. During the past few years, Polish companies mainly exported raw materials and metals to India, including cast iron, steel and copper, as well as products made from these materials. Other exported products include coke, plastics and rubber as well as machinery. Imports, just as in previous years, was dominated by light industry products: textiles and textile products as well as footwear. Other important goods imported by Poland are chemical products, mechanical, electrical products and raw materials such as building stone. The Indian offices of the Polish-Indian Chamber of Commerce are now working on opening new markets in India. The chamber concentrates on mid-level business where companies can meet potential partners to explore various ways of bringing the technical skills and expertise of Polish technocrats to real use in the Indian industry and maximize the potential in areas in which Poland excels. v

Dutch-Polish Trade: Centuries of cooperation The Netherlands has been a trading nation for centuries. As the world’s 16th-largest economy and the world’s seventh-largest exporter, the success of the Netherlands depends in large measure on international trade. Many people know the Netherlands from our tulips and cheese. We are still leaders when it comes to food, as well as agricultural and horticultural products. Moreover, centuries of experience in conquering land from the sea (using our famous windmills) have made the Netherlands world-renowned for its water management skills.

Geert Embrechts, Chairman of the board of the NetherlandsPolish Chamber of Commerce

Currently the Netherlands is the biggest investor in Poland, either directly or indirectly. According to data of the National Bank of Poland, our investments in 2011 amounted

to 15 percent of the total foreign investments in Poland. Currently there are around 1,400 Dutch companies present in Poland. A recent report initiated by the Netherlands Polish Council for Trade Promotion shows that the interest of entrepreneurs from our country in doing business in Poland is still growing. Many of the Dutch entrepreneurs that are present in Poland have been active there for decades and are now fully integrated into Polish society. As a result, they provide real value to this country. The Netherlands-Polish Chamber of Commerce is a very active bilateral chamber in Poland. In 2012 the number of our members grew from 100 to 160. We established regional representations in Poznań and Wrocław and our events are always well-attended. v


Made in Poland 2013

from the chambers of commerce

11

Scandinavian-Polish Trade: The future is the North Nordic countries are important trading partners for Poland, especially, in terms of Polish exports. Sweden, Denmark, Norway and Finland account for 7.4 percent of Polish exports, and are the second-largest destination for Polish companies selling their products abroad, according to the Ministry of Economy.

Carsten Nilsen, Chairman of the Scandinavian-Polish Chamber of Commerce

In terms of both imports and exports, Sweden is the leading Polish partner among Nordic countries, ranked among the top 10 of Poland’s most important export partners. Norway competes with Denmark to become the second-largest importer, followed by Finland. If the economic situation proves favorable, the trade exchange will speed up and be further stimulated in both directions. The growing importance of economic cooperation between Poland and Nordic countries is mirrored in the increasing number

of Nordic companies present on the Polish market. There are more that 2,000 Scandinavian companies registered in Poland, representing the main sectors of the Nordic economy, such as energy, construction, logistics, telecommunications, chemical and timber industry, as well as finance and banking. Despite the lack of stability in international markets, Nordic investors are not withdrawing from the Polish market. The most dynamic companies from this region are constantly looking for new developments and expansion areas, although these days they are somewhat more cautious when making their investments and expansion plans. There is also a number of Polish companies that have already started their business activities in the Nordic countries. A constantly growing interest among Polish companies searching for new business opportunities on more challenging, but economically more stable markets in Europe proves that Polish companies are fully capable to expand and operate in the North. v

Spanish-Polish Trade: A two-way street Among EU members, Spain is Poland’s 11th-largest export destination and 9th-largest import source. Since Poland joined the EU, Polish-Spanish trade increased by 50 percent. In 2012, the largest exporters to Spain included companies producing mechanical appliances and electrical equipment, sound recorders (38.5 percent), as well as vehicles, aircraft, vessels and associated transport equipment (16 percent). Coincidentally the same groups of products, alongside Spanish vegetables, are the most commonly imported by Poles from Spain. Stefan Bekir Assanowicz, President of the board of the Polish-Spanish Chamber of Commerce

Ferrovial (Budimex), OHL or Dragados (Pol-Aqua), carry out important projects in Poland. Spanish groups also enjoy a stable position in the renewable energy sector, particularly wind energy. A new law which will be introduced in Poland this year may create further development opportunities for these companies, especially those involved in photovoltaics.

It is worth emphasizing the involvement of Spanish companies in infrastructure projects in Poland, such as construction, railways, airports, as well as engineering. The biggest Spanish companies such as Acciona (Mostostal Warszawa),

Interestingly, the presence of Polish investments in Spain is also growing. Polish companies with stable position in their home country look for new development possibilities outside of Polish borders. They set up subsidiaries, take over companies in the same industry or buy controlling stakes in order to consolidate and expand the area of their business. Some of the best examples come from the IT sector (X-Trade Brokers, Asseco), chemical industry (Selena), automotive industry (Boryszew) or protection systems producers (Point A). Polish capital invested in Spain over the last five years amounted to about â‚Ź100 million. v


macroeconomic overview

12

A

Made in Poland 2013

Poland as an attractive destination for organising meetings

ccording the “Poland Meetings and Events Industry Report 2012” which was prepared by the Poland Convention Bureau of the Polish Tourist Organisation in cooperation with the regional Convention Bureau of Poland as well as with venues that host meetings and events, Poland is more and more active in the field of international meetings, showcasing its capabilities in this respect. The largest cities are recognised as potential destinations for international congresses. The cooperation with international, professional organisations and association representatives is noticeable. The joint actions of regional entities and central units also allow a common message to be delivered to all who are interested in Poland as a country to attract the members of a given organisation or representatives of the private sector. Another reason for satisfaction is the fact that Polish representatives actively operate at the level of international meetings industry associations. The report showed that in Poland in 2011 meetings and events were attended by 3,687,216 people. Meetings and events were split up into five thematic areas according to the categories accepted by regions, cities, and venues preparing the local studies. The highest attendance was represented by technology meetings/events, which were attended by a total of 1,281,618 participants, making it 35 percent of the total number. B r o u g h t

t o

y o u

The report also covered the number of participants of meetings and events divided into the following four categories: trade fairs and exhibitions, congresses and conferences, corporate events, and incentive events.

The number of meetings and events in individual cities was as follows: Warsaw – 8,830, Kraków – 8,304, Tri-city 4,773, Katowice – 900, Poznań – 766, Bydgoszcz – 496, Wrocław – 440, Toruń – 334.

Over 39 percent of all participants in the analyzed meetings and events were those taking part in fairs and exhibitions, which brought together 1,445,289 people. Another group was made up of congress and conference attendees: 1,057,451 people, as well as corporate events participants: 838,615 people. The least numerous category was incentive events (345,861 participants).

Based on the collected data, it is possible to state that in 2011 the highest number of congresses and conferences were held in Warsaw, followed by the Tri-city, and Kraków. The next cities were Katowice, Wrocław, Poznań, Bydgoszcz, and Toruń.

Exactly 22,793 meetings and events took place with participants from Poland, which made for a total of 84.23 percent of all meetings. The next group (12.52 percent) was composed of meetings with participants mainly from European countries. The remaining part comprised a group of events with delegates from America (2.32 percent), Asia (0.70 percent) and Africa (0.23 percent). A characterisation of all meetings and events, with a division into categories, was also performed, specifying their number and percentage share. The largest group was comprised of corporate events, 10,715 in 2011, that is 40 percent of all studied. This was followed by congresses and conferences – 9,873 (36 percent). Incentive travel took third place with 4,051 events, or 15 percent. The least numerous category was that of trade fairs and exhibitions, with a total of 2,421 held, which gave them 9 percent of the total. b y

P o l i s h

According to the data, in the case of corporate events, the most significant role was played by Kraków, while Kielce closed the ranking. In incentive events Warsaw took first place, while Kraków took second, and Tri-city was third. The final category was that of trade fairs and exhibitions. The studies handed over by the city and regional Convention Bureau indicate that the largest number of such events was held in Warsaw, Kraków, Poznań, and Kielce. The events most frequently organised in Poland in 2011 were those in the fields of technology and the humanities. It is worth focusing on the corporate sector. Corporate events organised on the occasion of sporting or cultural events attract employers and employees alike. The report on 2011 once again shows increases in the numbers of events organised in Polish cities. v

T o u r i s m

O r g a n i z a t i o n


Made in Poland 2013

macroeconomic overview

13

Poland’s economy looks to exports as engine 15.0 of growth The macroeconomic data coming out of Poland continues to be ugly. Could exports save the day?

P n. eb. Mar. Apr. '10 May '10 Jun. '10 Jul. '10 Aug. '10 Sep. '10 Oct. '10 Nov. '10 Dec. '10 Jan. '10 Feb. '10 Mar. '10 Apr. '11 May '11 Jun. '11 Jul. '11 Aug. '11 Sep. '11 Oct. '11 Nov. '11 Dec. '11 Jan. '11 Feb. '11 Mar. '11 Apr. '12 May '12 Jun. '12 Jul. '12 Aug. '12 Sep. '12 Oct. '12 Nov. '12 Dec. '12 Jan. '12 Feb. '12 '12 '13 '13 oland’s economy is expected to grow by about 2 percent in 2013 – perhaps somewhat less, depending on which economists you prefer to believe. That’s disappointing growth, considering the strong figures the country had seen in the past: 8 after the difficult year of 2009, when Poland was the only 7 EU economy not to go into recession, with gross domestic product growing 1.9 percent, the economy rose by 6 percent in 2010 and by 4.3 percent in 2011. Last year was 3.6 tough, as the economy grew by just 2 percent. 5

14.2 13.4

end, the European Commission expects it to grow by a mere 1.2 percent. As of press time, Poland’s finance ministry was holding to its prediction of 2.2 percent growth. 12.6

What gives?

All this begs the question as to why the Polish economy has 11.8 been slowing, after seeing such strong numbers throughout the crisis. One answer is fatigue – Poles and Polish businesses only had so much savings to burn through as the global econ11.0come to the end of that and with omy sank. They have now Jan. Feb. Mar. Apr. '10 May '10 Jun. '10 Jul. '10 Aug. '10 Sep. '10 Oct. '10 Nov. '10 Dec. '10 Jan. '10 Feb. '10 Mar. '10 Apr. '11 May '11 Jun. '11 Jul. '11 Aug. '11 Sep. '11 Oc '11 N' economies in Europe still growing only moderately if at all, the avenues for growth are few and far between. Consumer spending figures bear this out. During the first years of the Great Recession, Polish consumers continued to spend as if there were no economic crisis. Up until March 2012, retail sales regularly grew at rates higher than 10 percent per month. But April last year saw a deep slowdown – retail sales grew only by 5.5 percent year-on-year and never returned to anything higher than 7.7 percent. Finally, in December 2012, retail sales declined for the first time in years, by 2.5 percent, as Polish consumers began to really feel the squeeze, and spent less than usual on holiday gifts and meals.

4 could Poland’s economy in 2013 underperform its growth So of3 the global economic crisis year of 2009? It looks increasingly likely. While first-quarter GDP figures had not been re2 vealed by the time Made in Poland went to press, most econo1 had expected growth to come in at less than 1 percent mists –0the lowest quarterly figure since the first quarter of 2009. Retail January, at a 2012 stronger exQ1economy 2007 Q2 2007 Q3was 2007 Q4 2007 Q1 2008 Q2 2008 Q3 up 2008 Q4in2008 Q1 2009 Q2 2009 Q3 Q4 Q1 2010 Q2 2010 Q3sales 2010 Q4grew 2010 Q1again 2011 Q2 in 2011 Q3 2011 Q4 2011 Q1 Q2 2012 Q3rate 2012 Q4than 2012 The expected to pick the second half2009 of 2009 pected (2.3 percent), but screeched to a halt in February, fallthe year, if the euro zone manages to extract itself from the ing by 0.8 percent year-on-year. ongoing sovereign debt crisis. Nevertheless, ratings agency Moody’s expects Poland’s GDP to grow 1.9 percent in 2013, HSBC expects it to grow by 1.6 percent and the Gdańsk Institute for Market Economics (IBnGR) expects 1.4 percent growth this year. On the lowest

Inflation, interest rates drop

As Poles stopped spending, businesses slowed, price risen. Inflation has dropped like a rock since June of last year, when it hit from 4.3 percent, to 1.3 percent in February – below the

Poland’s unemployment rate, January 2010-February 2013 15.0

13.4 12.6 11.8

Ja n. Fe '10 b. M '10 ar . Ap '10 r. M '10 ay Ju '10 n. ' Ju 10 l. Au '10 g. Se '10 p. Oc '10 t. No '10 v. De '10 c. Ja '10 n. Fe '11 b. M '11 ar . Ap '11 r. M '11 ay Ju '11 n. ' Ju 11 l. Au '11 g. Se '11 p. Oc '11 t. No '11 v. De '11 c. Ja '11 n. Fe '12 b. M '12 ar . Ap '12 r. M '12 ay Ju '12 n. ' Ju 12 l. Au '12 g. Se '12 p. Oc '12 t. No '12 v. De '12 c. Ja '12 n. Fe '13 b. '13

11.0

8 7 6

Source: Central Statistical Office

14.2


2 11.0 1May 10 yJul. '10 n. Aug. '10 Sep. '10 Oct. '10 Nov. '10 Dec. '10 Jan. '10 Feb. '10 Mar. '10 Apr. '11 '11 Jun. '11 Jul. '11 Aug. '11 Sep. '11 Oct. '11 Nov. '11 Dec. '11 Jan. '11 Feb. '11 Mar. '11 Apr. '12 May '12 Jun. '12 Jul. '12 Aug. '12 Sep. '12 Oct. '12 Nov. '12 Dec. '12 Jan. '12 Feb. '12 '12 '13 '13 Jan. Feb. Mar. Apr. '10 May '10 Jun. '10 Jul. '10 Aug. '10 Sep. '10 Oct. '10 Nov. '10 Dec. '10 Jan. '10 Feb. '10 Mar. '10 Apr. '11 May '11 Jun. '11 Jul. '11 Aug. '11 Sep. '11 Oct. '11 Nov. '11 Dec. '11 Jan. '11 Feb '11 Ma '1A' 0 Q1 2007 Q2 2007 Q3 2007 Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 8 Made in Poland 2013 14 7 economic overview 6 5 4 3 2central bank’s target of 1.5 percent to 3.5 percent. Core inflaundershoot the NBP’s own 2.5 percent inflation target in the 1tion (without food and energy prices) has slowed as well, from coming year. Therefore, more rate cuts are likely.” 15.0 0about 2.3 percent last summer to 1.1 percent in February. the same time, economists Stanley Q1 2007 Q2 2007 Q3 2007 Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2At2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4from 2011 Q1Morgan 2012 Q2 2012 Q3 2012 Q4 said 2012that 14.2 In turn, Poland’s Monetary Policy Council (RPP), the Na-

no more rate cuts were in store, and that the next move we would see in terms of interest rates would be a rise, likely sometime in 2014. “We think that the next move in rates is up, in 2014,” economist Pasquale Diana wrote in a statement for the investment bank.

tional Bank of Poland’s interest rate setting body, has slashed rates. It began with a quarter-point cut each month from 13.4 November through February, and then cut rates by a further half point in March. That put Poland’s main interest rate at a 12.6 record low of 3.25 percent.

Data showing that both industrial output and retail sales had fallen in February were unlikely to influence another rate cut, Mr Diana said. “The Monetary Policy Council is set to wait and see for some months, and we think there are no further cuts from here,” he added.

Economists were mixed, however, as to whether the RPP 11.8

Ja n. Fe '10 b. M '10 ar . Ap '10 r. M '10 ay Ju '10 n. ' Ju 10 l. Au '10 g. Se '10 p. Oc '10 t. No '10 v. De '10 c. Ja '10 n. Fe '11 b. M '11 ar . Ap '11 r. M '11 ay Ju '11 n. ' Ju 11 l. Au '11 g. Se '11 p. Oc '11 t. No '11 v. De '11 c. Ja '11 n. Fe '12 b. M '12 ar . Ap '12 r. M '12 ay Ju '12 n. ' Ju 12 l. Au '12 g. Se '12 p. Oc '12 t. No '12 v. De '12 c. Ja '12 n. Fe '13 b. '13

would continue to cut. The 50-basis-point cut at the beginning of March shocked analysts, most of whom were expect11.0 ing the slow-moving council to trim rates by just 25 basis 15.0 points, if at all. Since February, NBP president Marek Belka, who also heads the RPP, had been indicating that the easing 14.2 cycle was coming to a close. He called the March cut a “full stop” at the end of the series of cuts – but in the same breath 13.4 refused to rule out more if macroeconomic data continued to come in worse than expected. He said that the council was 8 now in “wait-and-see” mode, but after the surprising March 12.6 7 analysts were unable to say whether more cuts could or cut, could not be expected. 6 11.8

So consumers and businesses will also have to “wait and see” what the RPP decides to do in upcoming months. Much of that will be tied to whether or not the Polish economy shows signs of deterioration or recovery. And it will especially depend on inflation. But whether Polish consumers decide to spend more – and hence whether businesses decide to begin raising prices again – will depend on whether there are jobs. And on that front, the outlook is far from rosy.

5 Danske Bank, for one, was convinced that more cuts were on the way. “We strongly believe that the NBP has been overly 11.0 4

Unemployment up, up, up

12

12

20

Q4

12

20

Q3

11

12

20

Q2

20

Q1

11

20

Q4

11

20

Q3

10

11

20

Q2

20

20

Q4

Q1

10

10

20

20

Q3

09

10

Q2

20

20

The days when Poland was recording figures of 20 percent unemployment are gone – but certainly not forgotten, and the monthly figures continue to inch toward that number. In

Q1

Q4

09

20

20

Q3

09

Q2

08

20

20

Q1

08

Q4

08

20

20

Q3

08

Q2

07

20

20

Q1

07

Q4

07

20

20

Q2

Q1

8

Q3

20

07

% Poland’s GDP growth rate, Q1 2007-Q4 2012

09

Ja n. Fe '10 b. M '10 ar . Ap '10 r. M '10 ay Ju '10 n. ' Ju 10 l. Au '10 g. Se '10 p. Oc '10 t. No '10 v. De '10 c. Ja '10 n. Fe '11 b. M '11 ar . Ap '11 r. M '11 ay Ju '11 n. ' Ju 11 l. Au '11 g. Se '11 p. Oc '11 t. No '11 v. De '11 c. Ja '11 n. Fe '12 b. M '12 ar . Ap '12 r. M '12 ay Ju '12 n. ' Ju 12 l. Au '12 g. Se '12 p. Oc '12 t. No '12 v. De '12 c. Ja '12 n. Fe '13 b. '13

hawkish and that further monetary easing is needed,” the 3 bank’s analysts said. “We believe that macroeconomic data 2 over the coming months will confirm that not only is growth continuing to slow but that inflation will also significantly 1

7 6 Source: Central Statistical Office

5 4 3 2 1 20 12

Q4

20 12

Q3

20 12

Q2

11

20 12

Q1

20

Q4

20 11

Q3

20 11

Q2

20 11

10 20

Q1

Q4

20 10

10 20

Q3

Q2

20 10

09 20

Q1

09

Q4

20

09 20

Q3

Q2

20 09

20 08

Q1

Q4

20 08

20 08

Q3

Q2

20 08

20 07

Q1

Q4

20 07

20 07

Q3

Q2

Q1

20 07

%

Growth of retail sales in Poland (in %), January 2011-February 2013 20

Source: Central Statistical Office

15 10 5 0

n.

'11

Fe b. '11 M ar . '1 1 Ap r. '11 M ay '11 Ju n. '11 Ju l. '11 Au g. '11 Se p. '11 Oc t. '11 No v. '11 De c. '11 Ja n. '12 Fe b. '12 M ar . '1 2 Ap r. '12 M ay '12 Ju n. '12 Ju l. '12 Au g. '12 Se p. '12 Oc t. '12 No v. '12 De c. '12 Ja n. '13 Fe b. '13

-5 20

Ja

'13

15 10 5


Made in Poland 2013

exports and poland’s economy

15

February, unemployment reached 14.4 percent – in line with expectations, but nonetheless putting a significant drag on the economy. And while February is traditionally the month of the year that sees the highest unemployment rate due to seasonal factors (construction firms hire in the summer and lay off workers for the winter), the long-term trend is disheartening. In February of 2012 unemployment was at just 13.5 percent, in February 2011 it was at 13.4 percent and in February of 2010 it was 13.2 percent. In July, when unemployment is typically at its lowest, unemployment has been increasing as well. In 2010 it was at 11.5 percent and in 2011 it was at 11.8 percent, but in 2012 it was 12.3 percent. Most economists expected the unemployment rate to remain high throughout the year, dropping to 13 percent in the summer and coming back to around 14 percent by year-end.

Exports the savior?

With that outlook, it seems that consumer spending won’t be the savior of the Polish economy, as it was in the 2009-2011 period. There is, however, much hope for exports.

The continuing uncertainty in the euro zone has significantly impacted the złoty, keeping it relatively weak against even the euro itself. While that is a tough pill to swallow for Poles who took out mortgages denominated in euros and Swiss francs during the boom years, it remains a source of strength for Poland’s exporters, who gained large chunks of European and other international markets when the crisis hit, and the złoty tanked, in 2009. Already in 2012, Poland’s exports were picking up. In the Q1Q3 period, Polish food exports reached €12.5 billion, some €1 billion more than in the same period of 2011, according to Poland’s ministry of agriculture. Various estimates for the whole of 2012 put the final figure at E17 billion. If those numbers are confirmed by Poland’s statistical office, it will make 2012 the best year ever for Polish food exports. A decade previous, food exports had only reached half that figure. Another sector that saw significant growth in exports last year were cosmetics (5 percent higher than in 2011). Auto exports, while lower than in 2011, were likely to finish 2012 better than expected, despite lower car sales in key European markets. As a whole, exports rose 4 percent in 2012, to €146 billion, according to the National Bank of Poland. A study by Oxford Economics and HSBC expect it to continue to grow, by 5.8 percent in 2013 and by 7 percent in 2014. Despite sluggish economies in the EU, Polish firms are expected to find more markets for their goods in Eastern Europe and Asia. In the 2016-2020 period, the study found that Polish exports would rise by some 55 percent. Since exports account for 47.5 percent of Poland’s GDP, all of that positive data could indicate that exports will prove the engine of Poland’s growth in the coming years. With Polish firms becoming ever more modern, quality-oriented and export-savvy (see sector analyses, pp. 29-69), it’s not so hard to believe. Andrew Kureth

Warsaw

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DROP SHADOW - 1mm 1mm 1mm 1mm i 33% opacity special report: research & development

Made in Poland 2013

17

Making headway by Beata socha By increasing R&D spending, Poland is not only fostering innovation but also promoting exports of highly specialized services

Innovation thrives on money

The government is very active in promoting innovation in Poland. A remarkably high share of all R&D funding comes from state coffers – over 50 percent as compared to some 30 percent of funding from business. Science grants are most frequently awarded56.9by government institutions like the National Centre for Research and Development (NCBR), academic organizations like the Polish Academy of Sciences, or 50.0 from the EU Innovative Economy program awarded by the Polish Agency for Enterprise Development (PARP).

Pharmaceuticals

P

oland is not immediately recognized as an innovative econoCoke with and natural refining my. To the outside world, Poland, its oil 38-million population, is primarily an important consumer market and a supply of relatively cheap workforce. Hard coal and lignite mining

50.0

Recent trends however show increasing involvement of businesses in doing research, which might indicate a gradual shift 45.7 becoming more private-funded. towards R&D

It merits a second look, however, to discover the well of potential for innovation and development in Chemicals Poland. With its economic stability, highly qualified workforce, scientific potential and financial support, Poland is an ideal partner and Computers, electronics, optics destination for R&D centers. Polish R&D has to face stiff competition from the Western Automotive countries, but despite limited resources it can boast some pretty significant accomplishments that have put Poland on and researchers equipment the scientific map. In 2011, for Machinery example, from Warsaw University had a breakthrough in developing acquisition technology of large pieces of grapheneMetals with the best quality so far, which may soon find a variety applications in electronics and nanotechnology. With the support of the Beverages Ministry of Economy the group of scientists have begun applying for patent protection all over the world.

30.6

Some industries are naturally more innovative than others, and the chemical and pharmaceutical sectors have always 29.3 been in the lead in terms of R&D expenditures. The biggest players in the chemical industry are investing billions 26.1 is innovation. Chemicals giants Grupa Azoty and Orlen are touting their latest investments in new, state-of-the-art

11.7

Furniture

0

Less public domain? Source of R&D spending

Regardless of the source, the money awarded to science and 36.3 technology is definitely increasing. Between 2007 and 2011 a 75.1 percent increase in R&D spending was noted, as compared 35.2 to 21.3 percent growth in the 2001-2006 period. In 2011 as much as zł.11.7 billion was spend on scientific advancements and innovation.

10

20

30

40

2010 0.3% 2.5%

50

60

2011 0.3%

11.8%

2.4%

24.4% 61.0%

13.4%

28.1%

Government-funded institutions

Universities

Companies

Private non-profit organizations

55.8%

Foreign entities

Source: Central Statistical Office


special report: research & development

18

research centers specializing in plastics and chemical compounds. The Polish pharmaceutical business is also pouring cash to boost innovation, and they have something to show for it, too. Drugs producer Adamed allocated zł.40 million to R&D programs, while Polish largest pharmaceutical producer Polpharma, ranked first on the “List of 500 Most Innovative Enterprises in Poland.” Even though not a cutting-edge sector itself, Poland’s mining industry has been successfully investing in innovation for years, with millions spent on high-tech tools for training miners and improving safety in the harsh and volatile working environment. Despite being still relatively underfunded, Polish science is striving to create a nurturing environment for technology and innovation. There are about 50 technology parks currently operating in Poland, whose main goal is to create favorable conditions for technology transfer and to stimulate innovation. Some of these parks are private businesses, like the Nickel Technology Park, located in Poznań, which offers a variety of services, from data centers and intellectual property advice, to a private kindergarten. Some parks are associated with universities or institutes, like one of the oldest technology parks in Poland – the Poznań Science and Technology Park, part of the Adam Mickiewicz University Foundation, which has been investing in cutting-edge technologies since 1995.

Outsourcing innovation

In recent years Poland has become one of Europe’s primary outsourcing destinations, partly due to the harsh economic climate in Europe forcing companies to cut costs wherever possible. Poland offers them an army of highly qualified specialists at much lower cost, not only accountants and payroll specialists, but also IT consultants and scientists. Already in 2010 Poland ranked second in the world, just beDROP SHADOW - 1mm 1mm 1mm 1mm i 33% opacity hind India, in terms of the availability of specialists and experts from the business service sector, in a survey conducted by Everest Group. Admittedly, there are cheaper destinations than Poland, such as Vietnam or India, where a programmer’s average salary is between $10,100 and $11,300 a year, as compared to $17,000-$18,000 in a Polish IT firm. None of them, however, offer such a high level of foreign-language competence as Poland, which combined with the common cultural background makes Poland an ideal “nearshoring” destination. “There is no other country in the world that offers the business service sector such versatile solutions. We are able to handle virtually any process in one of several dozen foreign languages,” said Marek Grodziński, vice president of the Association of Business Service Leaders in Poland, an organization representing 70 foreign and Polish investors from the business service sector. v

Pharma and mining lead the way to innovation Companies implementing innovations by industry (in % of total number of companies)

Human factor

Genius is one percent inspiration and ninety-nine percent perspiration, as Thomas Edison said. As far as perspiration goes, Poles are known as some of the most hardworking employees in the world. A typical Polish worker spent 1,937 hours working in 2011, which makes Poland the seventhhardest-working economy in the world, way ahead of the OECD average of 1,776 hours. Poland also boasts the highest number of highly-educated specialists in the CEE region. It is one of four EU countries, next to Germany, the UK and France, with over 2 million students, with one out of every 10 students in the EU is a Pole. Poland offers 460 higher education facilities and 1,000,000 R&D specialists working in over 200 R&D centers. Scientific advancements require first and foremost technical expertise, which Poland also has in spades. Polish technical universities have always been ranked very high in Europe and in the world. University of Warsaw computer science faculty every year wins numerous awards and distinctions in world programming contests, such as ACM International Collegiate Programming Contest World Finals, Google Code Jam, or International Mathematics Competition.

Made in Poland 2013

Pharmaceuticals

56.9

Coke and natural oil refining

50.0

Hard coal and lignite mining

50.0

45.7

Chemicals

36.3

Computers, electronics, optics

35.2

Automotive

30.6

Machinery and equipment

29.3

Metals

The high quality of Polish higher education is evidenced by the fact that there are about 23,000 foreign students studying at Polish universities. According to Sławomir Majman, president of the Polish Information and Foreign Investment Agency, “Poland is no longer a supplier of cheap labor, but increasingly often of highly qualified specialists.” v

26.1

Beverages

11.7

Furniture 0

10

20

30 40 Statistical 50 Office60 Source: Central

2010 0.3% 2.5%

11.8%

2011 0.3% 2.4%

13.4%


Made in Poland 2013

special report: research & development

19

Polish patent protection 101 Alicja Adamczak, president of the Polish Patent Office, talks about the advantages of the Polish patent procedure over the European one, about the categories in which most applications are filed and about the most common mistakes potential inventors make Why should Polish firms apply for a Polish patent, when they have the European patent system available to them? A European Patent, granted by the European Patent Office is in its nature a bundle of national patents. For the patent to be effective in any of the 38 members of the European Patent Organisation, including Poland, it must first be validated in each country individually. This requires submitting a translation [of the patent] into all the national languages other than the three procedural languages of English, French and German, and effecting a fee for the protection granted in each country where the patent is validated. If you wish to obtain patent protection only in the territory of Poland or any other individual country, choosing the European patent procedure makes little sense. Polish being the language of the application procedure as well as its low cost are a Polish patent’s indisputable advantages. Conducting the application procedure in the Polish Patent Office is a more attractive option for those who would like to use the patent for professional or business purposes in the territory of Poland. In addition to moderate cost and simple procedure, applying to the Polish Patent Office also offers the so called convention priority right which gives the inventor priority in obtaining patent protection in the majority of countries all over the world, which are parties to the Paris Convention for the Protection of Industrial Property. Obtaining such priority after securing a patent in Poland is vital for extending the protection to selected countries. What type of innovations are the most patent applications filed for? The majority of applications are in the performing operations and transport, chemistry and metallurgy as well as in the human necessities categories. Nearly 50 percent of all inventions are filed in these three categories, the list of which has been defined in the International Patent Classification. Another substantial part of applications fall in the fixed constructions as well as in the mechanical engineering categories. C o n t e n t

p a r t n e r :

How much does a patent application cost? The base fee for filing an application for patent protection with the Polish Patent Office is zł.550, and zł.500 for filing the application electronically. Additionally, after the decision is made to grant the applicant the right for exclusive use of his invention, he or she will also have to pay periodical protection fees. The fee is zł.480 for the first three years, for the fourth year it is zł.250 and then continues to increase by zł.50 every year, reaching zł.1,550 in the final, 20th year of patent protection. How many patent applications are filed in Poland compared with the EU average? The number of applications and the number of patents awarded varies greatly from country to country. In countries highly developed economically, such as Germany or France, the number of inventions filed for patent protection amounts to nearly 20,000 a year, while in countries with lower economic performance the number is up to 2,000-3,000 applications a year. We are, however, observing an increase in the number of inventions and utility models for which patent applications are filed. In 2012 there were 5,654 such applications, whereas in 2011 and 2010 it was 5,126 and 4,375 respectively. How many patent applications end in the granting a patent? Some 60 percent of applications receive a favorable patent decision. Patents are awarded only to inventions that meet all the statutory criteria for patentability, which means that they are: technical in their nature, novel solutions worldwide, they involve an inventive step and have some industrial application. Inventions lose their novelty if, prior to filing the application with the Polish Patent Office, they have been publicly presented, for example at a conference, in publications or in the media. Other common grounds for rejection include: an insufficient inventive step, which may result from failing to take into account data from world patent information databases. Any potential inventor, particularly one involved in R&D projects, should be constantly monitoring these databases. v

P o l i s h

P a t e n t

O f f i c e


special report: research & development

20

Made in Poland 2013

Using first names in trademarks

Izabella DudekUrbanowicz, Patent Attorney

W

hen establishing a company or business, the owner frequently invents company name using his or her own first name or other names evoking some positive associations, such as a child’s name or others. Therefore, first names are in the category of the most popular trademark elements and can appear as trademarks on their own, or in combination with other words or graphics. In Polish case law there is a widespread view that “first names, although by themselves they are fanciful in respect of goods for which they are destined, guarantee a relatively narrow scope of protection. Due to the fact that first names are widely exploited as trademarks (or component parts of trademarks), their use is fairly common while availability is limited, it is natural that names are highly repetitive in respect of designated goods” (judgment of the District Administrative Court in Warsaw as of 12th November 2008, case file No. VI SA/Wa 1157/08). Thus, if a trademark consists exclusively of a first name, or if a first name constitutes the main trademark element, protection of the trademark is rather weak. The owner must also tolerate the co-existence of other trademarks containing similar first names, so it is typical for the owners in the same sector to agree that the trademarks containing identical or similar names function together on the market.

Therefore, first names used as trademarks ensure a relatively low protection due to their common use and everyday exploitation. However, if a first name is used in trademark along with a surname, the trademark not only acquires originality, but is better remembered by consumers, especially if it involves the name of a celebrity. American celebrities – Beyonce and Jay-Z, filed with the United States Patent and Trademark Office (USPTO) an application for granting protection to their daughter’s name: Blue Ivy Carter, for goods and services related to children’s accessories, among others things. The name has already been protected for over a year as a community trademark. This means that parents have the exclusive right to use their daughter’s name as a trademark for a specific line of products. But if a trademark is not a famous celebrity name such as Blue Ivy, and consumers are unlikely to remember it so easily, is it eligible for obtaining stronger protection? According to recent case law, “a degree of exploitation of first names as trademark elements depends on the kind of goods and services for which the marks are destined. Undoubtedly, trademarks destined for clothing, fashion de-

B r o u g h t t o y o u b y Pa t p o l - E u r o p e a n a n d Po l i s h Pa t e n t a n d Tr a d e M a r k A t t o r n e y s


Made in Poland 2013

special report: research & development

21

Using first names in trademarks signing or toys designing (in particular dolls) commonly incorporate first names. Therefore, frequent repetition of names in this sector requires that they be accompanied by other fanciful elements, so that the goods or services can be identified by the average consumer,� (decision of the Polish Patent Office as of 19th October 2012). Accordingly, the following trademarks can function together in respect of goods in class 25: ALI ISABELLA (CTM-010730265), ISABELLE MARTINE (CTM- 010588705), ISABEL MARANT ETOILE (CTM009970682), GABBY ISABELLA (CTM-009761248).

The situation looks different in the sectors of goods or services, in which it is not customary to use first names as trademarks. In such a case, if a trademark exclusively consists of a first name, or if the first name is the most dominant element in the mark, distinctiveness will not be low and can be compared with the distinctiveness of other fanciful marks. In some sectors of goods or services, the use of first names as trademarks is very uncommon and there are only single examples of such registrations, e.g.: No. CTM-002382653 for telecommunications, including the secure exchange of data and messages (class 38);

CTM-011049533 No. CTM-000846121 for transport and distribution of foodstuffs (class 39). CTM-010341931

In sectors where first names are not commonly used as trademarks, registration of an identical first name as a trademark is difficult but possible under some circumstances. There are some chances of registration of an identical first name if it is accompanied by an additional element, such as a surname; using only additional graphic elements might be insufficient. Thus, it is rather predictable that the addition of descriptive elements to trademarks like ISABEL (e.g. ISABEL Banking or ISABEL Institute) would not be sufficient to obtain registration if there exists an earlier registration of ISABEL covering the same goods or services. v

CTM-010534121

CTM-010682251

Patpol - European and Polish Patent and Trade Mark Attorneys Nowoursynowska 162J , 02-776 Warsaw, Poland Tel: +48 22 644 9657 Fax: +48 22 644 9600 www.patpol.pl patpol@patpol.com.pl

B r o u g h t t o y o u b y Pa t p o l - E u r o p e a n a n d Po l i s h Pa t e n t a n d Tr a d e M a r k A t t o r n e y s


special report: research & development

22

Made in Poland 2013

Protection of products as industrial design

Anna SłomińskaDziubek, Patent Attorney

T

he multitude of new products constantly appearing on the market prompts manufacturers to provide goods with unique features that would attract customers, increase their satisfaction with a product and thus raise demand and price. It is particularly important not only for consumer goods, where a product’s appearance is vital in deciding whether to buy it or not, but also for technical products, which must be provided with new features to improve their functionality and facilitate their operation. The protection of products, in most countries limited to 25 years, is ensured by the protective right to an industrial design. An industrial design is a form of the whole or part of a product that is characterized by distinguishing features of its appearance. It may be any industrial or handicraft item, packaging, graphic symbols, typographic typefaces, computer graphics, images displayed on screens,

including also images appearing in a sequence. Protection may also be granted to a product consisting of many replaceable components or to a component part of a complex product if it is visible during normal use of such complex product. An industrial design must meet specific requirements. It absolutely must not be contrary to public order or morality. A relative condition necessary to obtain protection for an industrial design is its novelty, which means that a design cannot be protected if it was known before the first application is filed. The exception to this rule is a disclosure of a design caused by an infringement of the obligation to maintain its confidentiality, or a disclosure made by the designer or a person authorized by him within 12 months before the filing of an application. Another relative condition relates to the individual character of the indus-

trial design, which means that a product must have such features that the overall impression it makes on the informed user is different from that made by any other product of the same kind available to the public before the date of the first application. The absolute condition is always verified, whereas the relative conditions are only checked when a design is examined as to its merits. In registration systems, such as that in Poland, designs are not verified with respect to the relative conditions. In each case, fulfilling all the conditions is important for the protection of the granted right from potential later invalidation. Where the interested party intends to protect a design in several countries only, it is advisable to file applications with the relevant offices in the individual countries; for example, in Poland the competent authority is the Patent

B r o u g h t t o y o u b y Po l s e r v i c e Pa t e n t a n d Tr a d e m a r k A t t o r n e y s O f f i c e


Made in Poland 2013

special report: research & development

23

Protection of products as industrial design Office of the Republic of Poland. The applications may be submitted simultaneously or the applicant may enjoy the right of priority. This means that after filing the first application, the examination of conditions necessary to obtain protection for all applications filed in subsequent countries within six months is carried out only with respect to earlier designs available before the date of the first application. Increasing globalization and international trade exchange often require manufacturers to seek protection of their products on a broader territory. To simplify the procedure and reduce the costs of obtaining industrial design protection, two international systems were established:

• The Community design system operating within the European Union, for which the Office for Harmonization in the Internal Market (OHIM) is located in Alicante, Spain, and •The International Registration System of Industrial Designs based on the Hague Agreement (commonly called the Hague System), administered by the World Intellectual Property Organization (WIPO) in Geneva, Switzerland, which Poland joined in 2009. The Community design system enables filing one industrial design application with OHIM and obtaining registration that has legal effect in all EU countries. Importantly, any invalidation of a design in any country has an effect in all EU countries.

The Hague System, which includes 58 states and two regional organizations, allows for the filing of one industrial design application with WIPO and designate relevant states from among the parties to the Agreement. The initial international registration is effective in the designated states unless a competent office of a given country submits a refusal on the basis of national regulations within a prescribed period of time. It is therefore worthwhile to consider applying for the protection of a product as an industrial design as it will secure the exclusive right of an entrepreneur who puts a new product on the market; the more so that such a right may be sold or licensed. v

POL-???/Made B r o u g h in t Poland t o y 168x120_POL-???/2011 o u b y P o l s e r v Global i c e Awards P a t e 210x150 n t a n d21.03.2013 T r a d e15:06 m a r Strona k A t1t

orneys Office

Patents Utility Models Designs Trademarks Geographical Indications Domain Names Copyright Law Unfair Competition Law New Plant Varieties Know-how Licensing Searches Litigation Anti-Counterfeiting Actions POLSERVICE PATENT AND TRADEMARK ATTORNEYS OFFICE 73 Bluszczańska Street, 00-712 Warsaw, Poland Phone: (+48) 22 44 74 600, Fax: (+48) 22 44 74 646 Postal Address: P.O. Box 335, 00-950 Warsaw, Poland e-mail: ip@polservice.com.pl

www.polservice.com.pl

POLAND


24

special report: research & development

Made in Poland 2013

How to capitalize on science? Poland has brilliant scientists and highly entrepreneurial businesspeople. The National Centre for Research Development is investing in the most promising projects to make Poland one of world leaders in developing novel technologies, says Leszek Grabarczyk, Deputy Director of The National Centre for Research and Development listed on the NASDAQ in two years’ time.

The main task of the National Centre for Research and Development (NCBR) is implementing and managing strategic R&D programs to foster innovation. Can Poland be considered innovative? Leszek Grabarczyk: Catching up with the most innovative economies in the world will take us a little more time, but the R&D sector is definitely developing rapidly in Poland. Since 2007 funds devoted to research each year have increased by 35 percent. Our center’s budget has also been growing steadily. Last year NCBR allocated over zł.4.5 billion to research programs, which corresponds to outlays of more than zł.12 million a day. A similar amount of money was devoted to science by the industry. Every year we support a growing number of firms, university institutes and research centers. We also try to make sure that grant procedures and programs supported by NCBR meet the needs of the economy. That is why we cooperated with the Industrial Development Agency in a recent grant competition called Blue-Gas Polski Gaz Łupkowy, which is to allocate zł.1 billion to developing shale gas extraction technology. Innovation thrives on entrepreneurship. In order to increase the involvement of private businesses in the R&D

NCBR supports the commercialization and other forms of applying R&D outcomes in business. How can business and science benefit from this partnership?

Leszek Grabarczyk, Deputy Director of The National Centre for Research and Development

sector and developing new technologies, we are constantly implementing new programs and developing the existing ones. We have just begun a pilot program called BRIdge VC offering public and private support for commercializing innovation with the help of venture capital funds. We are pioneers in bringing money to high-risk R&D undertakings in Poland. Many European countries still lack such instruments for fostering innovation. Over 30 investment funds with international capital have signed up to participate as business partners in the program, which requires participants to have an international partner. We hope to see the first Polish company

The German poet Johann Wolfgang von Goethe said that “Knowing is not enough, we must apply.” Combining science and business also lets you make money. We see that happens every day, with medicine or smartphones. Historical whirlwinds and the previous political system have left Polish science and the Polish economy a little behind the rest of the developed world, and we still have a lot of ground to cover. Bridging the gap between these two worlds is one of the main goals of NCBR. Growth no longer stems from agriculture, services or even natural resources, but from a knowledge-based economy. Business makes a strong case for new solutions in various sciences, it also finances scientific advancements. NCBR is trying to merge these two by investing public money only in such projects that promise a real chance of success and return on investment. The word invest is vital here, as we try not to give money away but, as with the previously mentioned BRIdge VC program, to invest together with capital

Content Partner: The National Centre for Research Development


Made in Poland 2013

special report: research & development

market partners in the most promising undertakings relying on latest technologies. We believe that our actions to bring business and science together will yield very positive results and that we will soon have affluent Polish scientists, home-grown novel technologies and growing exports of Polish innovation. Is exporting Polish innovative products and services something Poles can already be proud of? We already have a few rising stars. The recent CeBIT novel technologies fair, where Poland was a partner, has showed our country’s potential. Our computer science students regularly win programming competitions and we are also one of the world’s top producers of smartphone apps. Even though our center was established relatively recently, we have already helped a significant number of companies enter global markets. For example, Avio Polska produces blades for Boeing 747 and 787-Dreamliner engines. Manufacturing components for the latest engine in big passenger planes has secured the company orders for some 15 years. R&D funding increased significantly after 2007. Many companies are most likely still at the research stage and we will soon hear of their innovations being implemented. Chemicals producers Ammono also benefited from our grant programs, and is close to marketing its latest development – semiconductors made from aluminumnitrate crystals, which will likely become a big commercial success. The market in which Ammono operates, is expected to be worth some $25 billion in 2015. Polish scientists are also leading the way to commercialize graphene, a

substance of the future with unlimited possibilities in electronics. The National Centre for Research and Development devoted zł.60 million to developing graphene-based technologies last year. Can you name a few solutions that have already been success and have gained global applications? It depends on how we define successful. Early this year [Poland-based] IVONA Software, which developed its own text-to-speech synthesizer software, was acquired by US-based giant Amazon. The software was then implemented in the well-known Kindle Fire tablet. It is unbelievable how technology developed by a firm established in 2001 by two graduates of the Gdańsk University of Technology is now applied in IT systems and apps all over the world. Another Polish company, Solaris Bus & Coach, is a major market player in Europe among producers of modern buses and trams. It has recently introduced electric-powered buses. It’s amazing to see Solaris buses on the streets of Budapest, while only 20 years ago Warsaw was filled with [Hungarian] Ikarus buses. The Solaris brand is present in 26 countries and about 60 percent of its production is exported. And there are many more such examples. Are Polish innovative brands recognized throughout the world? I’ll turn to another quotation here. Jack Welch, former CEO of General Electric, one of the greatest companies in the world said, “Change or die. If the rate of change on the outside exceeds the rate of change on the inside, then the end of a company is near.” Innovation doesn’t like stagnation. Everyone should keep improving

25

their products, and for that we need the R&D sector to flourish. That is why NCBR continues to monitor latest trends in novel technologies and in cutting-edge solutions being applied in business to make sure our offer is what entrepreneurs, universities and research centers need. Can you name the industries which are the quickest to adopt innovation (in Poland and worldwide)? Is NCBR going to support “made in Poland” technologies also in global markets? Aviation, bio- and nanotechnology as well as ICT are the most rapidly developing industries. The Go_Globa.pl competition we launched last year will provide ample opportunities for Polish businesses to commercialize their R&D results and expand to global markets. The program includes support in preparing a business plan and international strategy. This year we signed a cooperation agreement with Plug and Play Tech Center, one of the biggest technology incubators in Silicon Valley, which was responsible for helping to develop the the famous PayPal system. Another major partner, a European one, with substantial R&D experience, will soon join us, too. What’s in the cards for the Polish R&D sector? Poland has a lot of brilliant scientists and highly entrepreneurial people. NCBR provides them with tools for success. A growing involvement of private entrepreneurs in the sector also makes us hopeful. And by all accounts, the future financial framework of the European Union based on the Europe 2020 strategy will continue to nurture innovation. The course we are on will help us take the lead in the region within the next couple of years. v

Content Partner: The National Centre for Research Development


Made in Poland 2013

technology parks

27

Technology Parks Total area (ha) Investment area (ha) Green areas (ha)

Total number of business entities Total employment

Ranked by roofed space (sqm)

Services: consulting, information, courses, training*

Technical and service infrastructure*

Financial support*

Year founded

Contact person

53.0 50.0 2.0

42 1100

1; 6; 10; 12

16; 17; 18; 19; 22

29

2005

Anna Skałecka

4.0 WND WND

460 612

1; 3; 4; 5; 6; 7; 8; 9; 10; 11; 12; 13; 14; 15

16; 17; 19; 20; 21; 22

23; 26; 28; 29

2006

Iga Pachulska

24,000

33.0 26.4 6.6

38 690

1; 2; 4; 5; 7; 8; 12; 13; 14

16-22

23; 28; 29

2005

Piotr Kwiatek

4

Life Science Park ul. Bobrzyńskiego 14, 30-348 Kraków 12 297-4600/12 297-4646 mariusz.piasecki@jci.pl www.jci.pl

20,000

1.8 WND WND

WND WND

1; 2; 3; 4; 5; 7; 8; 9; 10; 11; 12; 14; 15

16-22

23; 24; 25; 26; 28; 29

2006

Mariusz Piasecki

5

Wrocław Technology Park SA ul. Muchoborska 18, 54-424 Wrocław 71 798-5800/71 780-4034 wpt@technologpark.pl www.technologpark.pl

14,690

26.0 26.0 -

123 1100

1; 2; 3; 4; 7; 8; 9; 12; 13; 14; 15

16; 17; 18; 19; 21; 22

28

1998

Sylwia Wójtowicz

6

Nobel Tower Advanced Technologies Center Piątkowska 161, 60-650 Poznań 61 842-5425 biuro@nobeltower.pl www.nobeltower.pl

13,500

1.7 0.4

WND WND

3; 4; 5; 6; 7; 8; 10; 12; 14; 15

16-22

23; 28

2013

Joanna Kowalska

7

Pomorskie Science and Technology Park Al. Zwycięstwa 96/98, 81-451 Gdynia 58 735-1140/58 622-5588 b.jodel@gci.gdynia.pl www.ppnt.pl

13,000

6.1 0.5

53 400

1; 2; 3; 5; 6; 7; 8; 10; 11; 12; 15

16; 17; 18; 19; 20; 22

24; 26; 28; 29

2001

Beata Jodel

8

Poznań Science and Technology Park - Adam Mickiewicz University Foundation ul. Rubież 46, 61-612 Poznań 61 827-9742/61 827-9741 ppnt@ppnt.poznan.pl www.ppnt.poznan.pl

11,725

5.4 1.3 0.7

54 350

1; 2; 3; 4; 10; 12; 13

17; 18; 21; 22

23; 26; 28

1990

Justyna Adamska

9

Olsztyn Science and Technology Park Pl. Jana Pawła II 1, 10-101 Olsztyn 89 527-3111/89 527-3111 opnt@olsztyn.eu www.parktechnologiczny.olsztyn.eu

11,332

17.2 14.8

WND WND

1; 2; 4; 5; 6; 7; 8; 10; 12; 14; 15

16; 17; 18; 19; 21; 22

-

2013

Janusz Wróblewski

10

Bydgoszcz Industry and Technology Park ul.Bogdana Raczkowskiego 11, 85-862 Bydgoszcz 52 365-3310/52 365-3317 biuro@bppt.pl www.bppt.pl

11,015

280.0 178.0 19.0

44 784

WND

WND

WND

2004

Malwina Witucka

11

Poznań Technology and Industry Park ul. 28 Czerwca 1956 r. 406, 61-441 Poznań 61 673-4543/61 673-4502 biuro@pptp.com.pl www.pptp.pl

9,379

1.3 1.3 2.2

49 15

2; 5; 6; 7; 8; 10; 12

16; 18; 19; 22

28; 29

2006

Piotr Juskowiak

Roofed space (sqm)

1

Świdnik Regional Industry Park Al. Lotników Polskich 1, 21-045 Świdnik 81 722-6022/81 722-6652 biuro@park.swidnik.pl www.park.swidnik.pl

100,000

2

Prof. Hilary Koprowski Gdańsk Science and Technology Park ul. Trzy Lipy 3, 80-172 Gdańsk 58 739-6117/58 739-6118 i.pachulska@strefa.gda.pl www.gpnt.pl

26,384

3

Nickel Technology Park Poznań ul. Krzemowa, Złotniki 1, 62-002 Suchy Las 61 658-6499/61 658-5498 biuro@ntpp.pl www.ntpp.pl

Rank

Company name Street, Postcode Town Phone/Fax E-mail Website


technology parks

28

Made in Poland 2013

Technology Parks Total number of business entities Total employment

Services: consulting, information, courses, training*

Technical and service infrastructure*

Financial support*

Year founded

Contact person

2.7 0.4

52 WND

1; 2; 5; 6; 7; 8; 9; 10; 11; 12; 14; 15

18; 19; 20; 21; 22

24; 27; 28; 29

2007

Łukasz Purgal

13.5 8.3 1.2

33 382

1; 2; 3; 4; 5; 6; 7; 8; 10; 12; 13; 14; 15

16; 18; 19; 20; 21; 22

23; 24; 28; 29

2005

Tomasz Urbanowicz

7,500

1.3 0.3

6 10

4; 12

18; 19

-

2009

Joanna Witkowska

7,246

4.5 3.4

WND WND

1; 2; 4; 5; 7; 8; 10; 12; 14; 15

16; 17; 18; 19; 21; 22

26; 28

2007

Ewa Plenkiewicz

7,118

1.2 7.6 1.1

10 WND

1; 2; 3; 4; 5; 6; 8; 9; 10; 11; 12; 13; 14; 15

16-22

23; 24; 25; 27; 28; 29

2012

Halina Mączka

17

Sosnowiec Science and Technology Park ul. Wojska Polskiego 8-8A, 41-208 Sosnowiec 32 778-9100/32 778-9109 spnt@arl.org.pl www.spnt.sosnowiec.pl

6,945

WND WND

WND 4

1; 2; 3; 4; 5; 6; 7; 8; 9; 10; 11; 12; 14; 15

16; 17; 18; 19; 21; 22

23; 24; 25; 27; 28; 29

2012

Elżbieta Klimek

18

AEROPOLIS Podkarpackie Science and Technology Park ul. Szopena 51, 35-084 Rzeszów 17 867-6206/17 852-0611 bkostyra@rarr.rzeszow.pl www.aeropolis.com.pl

6,350

166.0 166.0 -

WND WND

1; 2; 3; 5; 6; 7; 12

16; 17; 18; 19; 21; 22

24; 28

2008

Barbara Kostyra

19

Elbląg Technology Park ul. Stanisława Szulimy 1, 82-300 Elbląg 55 239-3467/55 237-4761 biuro@ept.umelblag.pl www.ept.umelblag.eu

5,832

4.7 4.0

19 6

7

17; 18; 19; 20; 22

-

2011

Agnieszka Choszczewska

20

Silesian Industry and Technology Park ul. Szyb Walentyny 26, 41-700 Ruda Śląska 32 789-5101/32 789-5114 sekretariat@sppt.pl www.sppt.pl

5,717

14.0 5.0 2.0

34 WND

4

16; 19; 22

WND

2004

Ewelina Mecner

Rank

Total area (ha) Investment area (ha) Green areas (ha)

Ranked by roofed space (sqm)

Company name Street, Postcode Town Phone/Fax E-mail Website

Roofed space (sqm)

12

Częstochowa Industry and Technology Park Al. Najświętszej Maryi Panny 24/8, 42-202 Częstochowa 34 360-5688/34 360-5747 arr@arr.czestochowa.pl www.arr.czestochowa.pl

9,237

13

Toruń Technology Park ul. Włocławska 167, 87-100 Toruń 56 621-0421/56 654-8824 tpt@tarr.org.pl www.technopark.org.pl

8,660

14

AURO Business Park ul. Leonarda da Vinci 12, 44-109 Gliwice 32 330-1953/32 330-1944 biuro@auro.com.pl www.auro.com.pl

15

MMC Brainville Technology Park ul. Zielona 27, 33-300 Nowy Sącz 18 449-9463/18 449-9461 biuro@miasteczkomultimedialne.pl www.miasteczkomultimedialne.pl

16

Puławy Science and Technology Park Mościckiego 1, 24-110 Puławy 81 464-6316 biuro@ppnt.pulawy.pl www.ppnt.pulawy.pl

Notes: WND = Would Not Disclose. Collection of selected report data is thanks to cooperation of the Polish Business and Innovation Center Association (SOOIPP www.sooipp.pl). Only the top 20 parks are listed here - for full list subscribe at www.bookoflists.pl. * 1. Company formation; 2. Business plan development; 3. Technological advisory; 4. Cooperation mediations; 5. Financial and tax services; 6. Bookkeeping and accounting; 7. Legal services; 8. Market analysis and marketing; 9. Quality management; 10. IT services; 11. Human resources management; 12. EU funds access; 13. International trade and cooperation; 14. Introduction of new products and services; 15. Business management; 16. Reception; 17. Labs; 18. Broadband internet; 19. Computer network; 20. Database access; 21. Cafe/bar; 22. Seminar room; 23. Venture capital; 24. Regional loan fund; 25. Guarantee fund; 26. Seed capital fund; 27. Credits and credit services; 28. Cooperation with business angels; 29. Subsidies, grants.


A delicious recipe for growth Palates around the globe are gaining a taste for Polish food and drink

P

olish food is so well-known that it has even exported vocabulary: “pierogi” and “kielbasa” are household names in many parts of the world. And the actual pierogi and kielbasa, among other Polish edibles, are becoming increasingly popular.

In 2012 Poland exported nearly €17.5 billion worth of foodstuffs, according to data provided by the Ministry of Agriculture and Rural Development. This was a record breaking year for Polish food. In 2011, the previous record year, Polish food exports were worth €5.3 billion. How fast have Polish food exports have grown? Ten years ago they were worth a quarter of the estimated 2012 figure.

by Jacek Ciesnowski Spirits riding high

One of the biggest Polish export hits is its vodka. Last year Poland exported over 7.5 million liters of vodka to the United States from January to September 2012, according to data provided by the Distilled Spirits Council of the United States. Compared to the corresponding period of 2011, this volume rose by 15.3 percent. This makes Poland the fourth-largest exporter of vodka to the US in terms of volume, behind Sweden, France and the Netherlands. Russia, seen as Poland’s major rival in this area, ranked sixth.


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Made in Poland 2013

sector analysis: food

One of the hits has been the Sobieski brand. In 2011, with the help of worldwide star Bruce Willis as their spokesperson and co-owner, after four years on the market, they’ve managed to sell over one million cases of their vodka in the US. The previous record holder managed to reach this milestone after seven years. “Our national product is really good. Plus, the price-toquality ratio is perfect,” according to Polish Spirits Industry president Leszek Wiwała. He also admits that there has been a shift in the mentality of costumers in the US. “Only 15 years ago, drinking pure vodka in the US was unimaginable. It was used only as an ingredient in cocktails.” Americans preferred unadulterated whisky and brandy. Nowadays, most colored drinks end up in cocktails; pure vodka is gaining more and more consumers.

Volume vs value

In value terms, the ranking looks slightly different. Poland holds fifth place in terms of sales to the US, with $51.28 million, while the leaders are France, Sweden, the Netherlands and Latvia. Americans buy more Polish premium and super-premium vodkas, which are the more expensive ones. The super-premium sector was created in the second half of the 1990s by Polish brands such as Chopin and Belvedere Vodka. They were widely promoted through references to the Polish traditions of distilling vodka, which resulted in the

31

creation of a new sector, a shelf higher than the one occupied by Finlandia and Absolut. However, that market is still controlled by French and Swedish brands that have been present in the US market for far longer than Polish companies have. Other markets that Polish vodka is a prominent player in include France (where 60 percent of Poland’s EU-destined vodka goes), Canada, Italy, Germany, Hungary and Bulgaria. With an average annual production volume of 3.2 million hectoliters, Poland is the world’s fourth-largest vodka manufacturer, after Russia, Ukraine and the US. So it seems that the quality and tradition of Polish vodka is attracting an ever-growing number of fans worldwide.

Best of both worlds

The biggest obstacle to Polish food export is the economic slowdown in countries that import Polish products. It can, however, be an advantage as well. With many people and companies tightening their belts, they are looking for cheaper products with similar quality. That’s a perfect position for Poland and its products, as data for 2012 shows. Last year, Poland exported some €13.3 billion worth of food products to the EU, which accounted for 76.4 percent of all of the country’s food exports. The biggest market for Polish foodstuffs for many years now has been Germany. Last year it imported nearly €4 billion


sector analysis: food

32

Made in Poland 2013

Worldwide brands Some Polish firms are making a go of establishing their products as a global brand. One company that has taken a similar path to Belvedere, owner of the Sobieski vodka brand (which hired Bruce Willis as a spokesperson), is Foodcare. The company sells its flagship product, energy drink Black, using Mike Tyson’s image on the can and in commercials. The company exports its products to 38 countries, including Mexico to China. Maspex Wadowice Group sells its products – mostly juices under their Kubuś and Tymbark brand – to nearly 50 countries; 35 percent of its revenue comes from export. Polish products are also popular in some rather exotic markets. For example, Mongolians love Polish pickles, jams and preserves, and Polish honey is a delicacy in the Middle East. v

worth of products (an 11.2 percent rise compared to 2011). That included mostly fish and fish-related products (€540 million), meat and poultry (€285 million), as well as juices and fruit concentrates (€262 million). Second in line was the United Kingdom, were €1.3 billion worth of products was exported (a 20 percent rise compared to 2011). People in the UK bought significant amounts of Polish chocolates and confectionery (€234 million) as well as meat and poultry (€134 million). The UK market is promising for Polish products because of the growing number of Poles there who want to eat products that they are familiar with. One of the big markets that shows great potential is Russia. In 2012 it was in fourth place on the list of the biggest importers of Polish food (behind the Czech Republic), with the value of Polish food imported shooting up a whopping 30 percent y/y to nearly €1.1 billion. This was the result of Russia joining the World Trade organization, which pulled down many obstacles to Polish imports that had previously been erected due to historical and political disagreements. Many predict that the value of Polish export to Russia will continue to grow in the coming years. Russians mainly import Polish apples and pears (€226 mil-

Poland food exports Category

2012 value (in € millions)

2011 value (in € millions)

Meat and poultry

2,959

2,567

Fish and sea food

740

757

Vegetables Fruits and nuts Dairy, eggs, honey

807

761

1,052

767

1,642

1,504

Source: Ministry of Agriculture and Rural Development

lion), chocolate products (€74 million) and cheese products (€70 million).

Exotic locations

But there are new, fast-growing markets, where Polish food is becoming increasingly popular – exports to Libya grew by 648 percent last year. Other Middle Eastern countries followed – in Yemen, Syria, Saudi Arabia and the United Arab Emirates Polish exports grew by 267, 145, 124 and 118 percent respectively. One of the more important markets for export outside the EU is Vietnam. Poland exports mostly fish (salmon), milk and milk-related products to the Southeast Asian country, and exports there grew by 72 percent in 2012.

International retail chains have boosted Polish food exports. Last year they exported products worth nearly €1.2 billion, according to data provided by Polish Trade and Distribution Organization. The leader is Tesco, who exported (mostly to UK) nearly €400 million. “In 600 Tesco stores in the UK, there 250 Polish products available,” said Michał Sikora, Tesco Polska spokesperson. Polish food is so popular there, that it has its own displays. Last summer to coincide with the Euro 2012 tournament, Lidl stores in Ireland had their own “Polish week.” Overall in 2012, Lidl exported over €240 million worth of Polish products to its European stores. Portuguese Jeronimo Martins, which owns discount chain Biedronka, exports many Polish products to Portugal. v


Made in Poland 2013

sector analysis: chemicals

A mix of consolidation and investment Poland’s chemical manufacturing industry continues to grow and expand abroad. Through consolidation, streamlining and innovations, it aims to yet improve its position on the market

In

2011, the chemical sector was one of the main growth drivers for Polish exports. According to data from the Economy Ministry, chemical exports (including pharmaceuticals) grew by 19.1 percent year-on-year, making it one of the three fastest-growing sectors. The sales of chemical products accounted for 13.8 percent of total exports (over €18.7 billion).

While these numbers look good, Wojciech LubiewaWieleżyński, president of the board of the Polish Chamber of Chemical Industry (PIPC), says that there remains much to be done. “We have an enormous deficit in foreign trade when it comes to chemical products,” he said. That deficit was €8.3 billion in 2011, meaning that the chemical sector accounted for some 70 percent of Poland’s total foreign trade deficit. This means companies should work on

by Kamila Wajszczuk improving and expanding their product ranges. “Investments are necessary to stop the deficit from growing,” Mr LubiewaWieleżyński said.

The key players

There are a number of chemical and petrochemical industry firms in Poland. The largest of them are stock-exchange listed companies in which the State Treasury holds stakes, such as Azoty Tarnów, Ciech or PKN Orlen.

PKN Orlen is Poland's largest exporter. It is best-known for its oil-refining activities and its network of gasoline stations, but its sees petrochemical production as one of its key segments. The company owns Anwil, the CEE's largest PVC and nitrogen fertilizer producer. It also has a petrochemical production line at its main location in Płock and petrochemi-

33


sector analysis: chemicals

34

Initiative for chemical safety The International Centre For Chemical Safety And Security (ICCSS) is a project co-founded in 2012 by Azoty Tarnów, the city of Tarnów, the Polish Ministry of Foreign Affairs and the Organisation for the Prohibition of Chemical Weapons. It is to become a major international research center for chemical safety and security. The initiative has raised interest from 54 countries, which sent participants to the International Meeting on Chemical Safety and Security organized in Tarnów in November last year. v

Made in Poland 2013

Export of chemicals by groups of commodities in 2011, in € millions Type Albuminoidal substances, amylum, glues and enzymes Cut chemical fibers

total 152 60

Dyes, tannins, pigments, paints and varnishes

577

Endless chemical fibers

178

Essential oils, perfumery formulas, cosmetics and toiletries

1,892

Explosives

37

Fertilizers

614

cal unit in Germany (Basel Orlen Polyolefins) and the Czech Republic (units of the Unipetrol group). The company's petrochemical sales rose by 3 percent in 2012 to 5,233,000 metric tons. In 2011, PKN Orlen had a net profit of zł.2.02 billion, with revenue at zł.107 billion.

Inorganic chemicals

645

Miscellanous chemical products

980

Zakłady Azotowe w Tarnowie-Mościcach (Azoty Tarnów), the leading company is the consolidation process going on in the Polish chemical sector, produces structural materials, nitrogenous and multi-component fertilizers, OXO alcohols, plasticizers and pigments. In 2011, it had a consolidated revenue of zł.5.3 billion and a net profit of zł.498.9 million.

Photography and cinematography materials

The chemical industry group consolidated around Azoty Tarnów under the common trade name Grupa Azoty includes pigment and fertilizer manufacturer Zakłady Chemiczne Police, nitrogen fertilizer maker ZAK and the most recent addition to Poland's largest chemical manufacturing group – Zakłady Azotowe Puławy (ZA Puławy), the thirdlargest producer of melamine globally. Ciech has been an important player in the Polish chemical market for years. The company is now working on streamlining its activity. In 2012, it sold its toluene diisocyanate (TDI) production segment to German chemical giant BASF. In early 2013, it agreed to sell phosphorus and chromium

Chemical firms among Poland’s top exporters Rank

Company

Revenue from exports in 2010, in zł. billions

1

PKN Orlen

34.3*

17

Synthos

2.7

19

Ciech

2.6

33

Zakłady Azotowe Puławy

1.5

34

Anwil

1.5

41

Zakłady Azotowe Tarnów

1.3

46

Zakłady Chemiczne Police

1.1

50

ZAK

1.0

56

Konimpex

0.8

64

Selena FM

0.7

80

PCC Rokita

0.6 * The figure includes all of the firm’s exports, including oil Source: “100 Largest Exporters in 2011,” Polityka

Organic chemicals

1,415

Pharmaceutical products

1,620 23

Plastics and articles thereof

4,324

Plastics in primary forms

1,541

Soaps and detergents

1,128

Synthetic rubber and articles thereof

3,619

Chemical industry, total Rubber and plastic goods, total

10,862 7,942 Source: PIPC

compound producer Zakłady Chemiczne Alwernia to Kermas Group. Ciech recorded sales revenues of zł.4.2 billion in 2011, with net profit at zł.1.5 million. Synthos, which is fully privately-owned, is the largest European producer of emulsion rubbers and the third-largest European manufacturer of polystyrene for foaming applications. The company also produces other chemicals, including adhesives and water dispersions. It has two major manufacturing units – Synthos Dwory in Poland and Synthos Kralupy in the Czech Republic. The group posted a revenue of zł.6.2 billion in 2012, with a net profit of zł.586.4 million. Another privately-owned Polish chemical producer is PCC Rokita, which produces polyols, chloralkali, chlorobenzene, phosphorus derivatives and naphtalene derivatives. In 2011, the company had a revenue of zł.1.19 billion and a net profit of 97.6 million. The company is part of the PCC SE holding, headquartered in Germany.

Investment and innovation

Industry experts and company executives agree that investments are necessary to keep Polish chemicals competitive and induce the sector's growth. Mr Lubiewa-Wieleżyński stressed that research and development spending in the sector should be increased.

Both PKN Orlen and the companies of Grupa Azoty have already invested billions into their chemical production units. “In the last few years, we have carried out a number of petro-


Made in Poland 2013

sector analysis: chemicals

Graphene – substance of the future

Graphene is a substance made up of atoms of carbon arranged in a hexagonal pattern in a single or double layer. The term appeared in 1947 but until the 1960’s, physicists were convinced such a substance could not exist. In 2010, work on graphene earned two physicists – Andre Geim and Konstantin Novoselov – a Nobel Prize. In the same year, the EuroGraphene project was launched. The Institute of Electronic Materials Technology is the Polish partner of EuroGraphene. In 2011 it launched cooperation with Azoty Tarnów, with the perspective of large-scale production of graphene and graphene composites. Graphene combined with polymers could be used in a number of industries, including electronics and automotive production. Depending on the compound used, the substance could increase electric conduction or insulation. It could also be used to create very light materials for industrial manufacturing. v chemical investments,” Piotr Chełmiński, a member of PKN Orlen's management board said. “The largest of them is the first Polish and the most efficient European petrochemical complex producing p-Xylene and terephtalic acid.” This investment amounted to over zł.4 billion. In it strategy for 2013-2017, PKN Orlen has assigned zł.4.7 billion for investments in its petrochemical segments. This will include zł.2.7 billion for research and development projects. Grupa Azoty boasts a number of patents and one of the most advanced plastics research laboratories in the world. It is now

35

focused on the consolidation process but it does not give up investment or research plans. Together with oil refiner Grupa Lotos, the company is analyzing the construction of a new petrochemical production line in Gdańsk. “We want to have our own petrochemical supplier, so as not to be forced to buy them in spot transactions,” Grupa Azoty's chief executive Jerzy Marciniak said.

Prospects for development

The future of the industry depends on a number of factors, apart from the companies' investment activities. These include conditions in their international environment. “The outlook for Poland's chemical sector depends on EU legislation,” Mr Lubiewa-Wieleżyński, of PIPC, said. In his opinion, the European Union's authorities should remember that re-industrialization in the region is necessary. “We should not put excess loads on the industry, for example through REACH or ETS rules, without a global approach,” he explained.

Mr Lubiewa-Wieleżyński also pointed to the necessary liberalization of the energy market, both in the case of natural gas and electricity. “Cross-border transfer with higher capacity is necessary, not only from Russia,” he explained. “Cheap natural gas from shale deposits will be a key factor for fertilizer production,” he added. Mr Marciniak named stable legal conditions and gas prices as two of the three key factors for the industry's growth. “The price of [natural] gas in Poland is important,” he said. “It should not differ from prices in surrounding countries.” He added though that he thinks the most important factor is money for development. The state-run Polish Investments program should give new opportunities to chemical companies, he said. v


sector analysis: chemicals

36

Made in Poland 2013

Grupa Azoty in the global village

Interview with Jerzy Marciniak, chief executive officer of Grupa Azoty S.A. Currently, in 2013, Grupa Azoty (the chemical plant in Tarnów) is one of the leaders of the chemical market, not only in Poland, but also in Europe. What is behind this achievement? It’s an old story. The history of the plant dates back to 1927. It was then that, thanks to President of Poland Ignacy Mościcki, one of the largest Polish investments of the period came into being. Those 85 years of development and basic work – in spite of changing conditions, often unfavorable for capital – in the end gave the company a good starting point to find its place in the world of money and innovative economy. If we want to look at the post-war development of the Tarnów chemical plant in an unbiased way, we have to notice that the development of both our plant and other Polish chemical factories was very fruitful for the sector in some periods. It’s enough to say that Grupa Azoty holds a strong position in chemical manufacturing segments such as: construction plastics, nitrogen and multi-component fertilizers, as well as OXO alcohols, plasticizers and pigments. We also have unique products such as polyoxymethylene. That is true. But when you were entering the Warsaw Stock Exchange, the company was not strong in terms of equity ... We were not a big company then, but from today’s perspective – several years after our shares were first traded on the WSE – we were certainly bold. When we were putting together our development plan at that time, we had a vision of becoming one of Europe’s major producers of chemicals and mineral fertilizers. In B r o u g h t

t o

Jerzy Marciniak, chief executive officer of Grupa Azoty S.A. 2008, when we were asking shareholders to finance our development, were stressed the appeal of our products, but also the possible geographical structure of sales. It was already known by then that chemical products would to a certain point be the driving force behind world economy, and the results of 2011 clearly showed that it y o u

b y

G r u p a

was the year of plastics and caprolactam. That is worth emphasizing, but the strength of Grupa Azoty – as this is the brand you promote – is rather its large size and the potential for cooperation between the chemical manufacturing plants that Grupa A z o t y

S . A .


Made in Poland 2013

sector analysis: chemicals

37

What’s more, the chemical-sector consolidation plan we presented gained full support even in a situation when, in a so-called “hostile tender”, an investor was offering an attractive price for our shares. The shareholders however preferred to trust the management board of Grupa Azoty and they accepted the proposed strategy for 2012-2020, with goals including the maintaining of Grupa Azoty’s position as one of three largest fertilizer producers in Europe and entering the WIG20 index of the WSE.

Azoty has gathered together under its “wings of the swallow,” isn’t it? Of course. Since 2010, we are the leaders of consolidation in the Polish chemical sector. The chemical plants in Kędzierzyn-Koźle and in Police, as well as ATT Polymers, a company from Guben, Germany, all already operate under the wings of the swallow, which we have in our logo. Recently, we became the owners of Zakłady Azotowe Puławy and we are managing the consolidation process together. It is also possible that in the near future, our Grupa Azoty from Tarnów will acquire Siarkopol, which is now being sold by the State Treasury.

ment into the development of of ZAK S.A. or Z.Ch. “Police” S.A. was very large and of key importance for these companies, we have sizable profits from those activities now. To tell the truth, I’m convinced that we saved both these companies or at least we gave them what I would call a “new life”. It is true that over the last four years we took almost every chance for Grupa Azoty’s development, but the strategy was accepted from the beginning by our shareholders.

When this activity was accepted, the management of Grupa Azoty was reassured that the consolidation of the Polish chemical sector is the correct road of development for us. That is why we decided to reach for Zakłady Azotowe Puławy and we carried out a swap of its shares for our shares. The market fully participated in this unique merger on the Polish capital market and, what is interesting, we have very positive reviews. The idea to buy Zakłady Azotowe Puławy and the ongoing consolidation are an example showing that the chemical sector can act together, and the future will show what we can achieve in this so-called global village. v

Exactly. In the ownership area, Grupa Azoty has managed to take over its potential competitors on the Polish market. What is more, you have become a consolidator of the market, in a way performing the task of the treasury minister. And in the interest of the chemical sector. Even though our financial engageB r o u g h t

t o

y o u

b y

G r u p a

A z o t y

S . A .


Programmed for success

Big and small, Poland’s IT firms are making a splash in international markets

by Joanna Irzabek

T

he value of Poland’s entire ICT market is estimated at €20 billion – not much, compared with the Germany’s €150 billion worth of IT business. But financial services provider Erste Group estimates that the IT market in Central and Eastern European countries, such as Poland, will expand twice as fast as their GDP, fueled partly by the EU funds for big public sector digitization projects. Even the economic slowdown in Europe will not stop the Polish IT market from growing. Where to look first for the upswing?

IDC estimates that the amount of unwieldy information managed by companies doubles every two years. The exponential growth of “Big Data,” as it is now called, is forcing industry leaders to make bold investments in IT infrastructure

– or hire services and facilities based on cloud computing. IT research and advisory firm Gartner Group predicts that the value of the global cloud computing market will reach $150 billion in 2013. Cloud products that ensure IT and business security are clearly in demand in Poland too, and Polish IT services providers are getting ready for the global shift to the cloud. “The rise in cloud computing and development of software as service solutions ... is a chance for Polish companies,” said Paweł Olszynka, head of ICT analysis at research firm PMR. IT research firm DiS estimates that commercial data centers in Poland make up 48,000 square meters and are being currently expanded. According to IT advisory firm Canalys, the number will increase by 30 percent this year.


Made in Poland 2013

sector analysis: ict

Polish champions

Other Polish IT specialties are taking shape, with the video game industry and telemedicine tipped as hot sectors. Under the government-sponsored program “Do IT with Poland” and this year’s strategic partnership with CeBIT as part of that strategy, these and other Polish technologies will see significant promotion.

“We’ve had big successes in digital gaming, we are doing very well in financial technologies and internet banking,” said Tomasz Czechowicz, managing partner at MCI Management, a private equity/venture capital fund that invests in advanced technologies and IT. He named mBank, Alior, Inteligo and PayU among the internet banking pioneers, CD Projekt Red in games, and Optopol, HTL-Strefa and MEDICALgorithmics as global contenders in medical technologies. The export income share of Polish IT companies has been steadily increasing too, making up more than 30 percent of their total sales by mid-2012, according to a recent PMR report. “There are Polish IT players with the potential to com-

39

pete on a global scale,” said Mr Czechowicz of MCI. Polish firms are strongest in e-commerce, mobile internet and software as a service, he said. Paweł Olszynka of PMR named Comarch and Ericpol as the most promising home-grown IT exporters. Their main competitive advantages include endorsements from foreign clients and the ability to compete with good quality at lower price, in his view. Comarch, a Kraków-based international software house and systems integrator, is also big on investing in R&D and developing its own products, including e-medicine. Comarch’s main assets, according to Mr Olszynka, are own software solutions and geographical expansion. The company has been setting up overseas branches and investing abroad. Recently it spent zł.12 million on a new data center in Germany. But there is life outside the world of big players, too.

Rising stars

Do not expect another player as big as Asseco, Poland’s largest IT company with branches in several European countries,


sector analysis: ict

40

T

he management of risk in an enterprise is an area which must evolve dynamically in response to the rapidly changing business environment. New technologies, legal regulations and threats have resulted in the role of risk management processes being elevated to the management board level, turning it into an inextricable element of strategic planning. Events such as the terrorist attack on the World Trade Center and the Pentagon on September 11, 2001, as well as the losses resulting from unauthorized trading of Societe Generale, Barings, AIB and the National Australia Bank, highlight the necessity that the scope of risk management goes beyond market and credit risks. Recently, there has been a significant transformation of the concept of risk management: from the traditional to the integrated. The traditional approach to risk management first identifies various types of threats and then the enterprise is managed so as to avoid these threats, with each risk being managed separately. The main flaws in this approach include ignoring the fact that various risks are interconnected and not taking into account the responsibility for risks. Integrated risk management (or Enterprise Risk Management, ERM) considers risk as being an integral part of the process (within an entire organization) and perceives it in the light of the company’s strategy, focusing on critical risks and their optimization/management on the basis of continuous monitoring and evaluation. All members of an organization become responsible for risk management. Now, during a time of crisis, company management boards face a difficult choice: would it be worth their while implementing EMR in their organization, and would this result in tangible benefits and an increase in the company’s value? AIRMIC, a British association of risk managers, commissioned DNV to conduct a study (Research into the benefits of Enterprise Risk Management) with the participation of 20 fully developed international organizations. They shared their experience related to the implementation of integrated risk management, and the advantages they established are as follows: • e nhanced decision-making processes and improved decision quality, particularly at the strategic level; seizing of opportunities (“positive risks”) • improved standard (quality) of corporate governance and compliance B r o u g h t

t o

Made in Poland 2013

•m  ore rapid company development in a controlled manner (the better a company manages risks, the more risks it can take, thus gaining an advantage over the competition and depriving it of its market share) • improved capacity to delegate competence down the management ladder and, consequently, resulting in better versatility of companies • g reater effectiveness of routine operations, with fewer (and lesser) interruptions to processes • reduced exposure to risk at project and operational levels • g reater share of business projects and improvements to business processes are completed successfully • lower risk costs (reductions in insurance premiums and losses far exceed the costs of risk management) • c osts of current activities aimed at minimizing risk decrease by 50 percent (thanks to the integration of staff, systems, and prevention processes, and a reduction of double processes). MITIGATE – the Enterprise Risk Management system is a comprehensive solution which supports management in developing, implementing and applying integrated risk management within an organization. It facilitates achieving of all the benefits of ERM implementation in a company, as well as the attainment of business objectives, while, at the same time, it prevents unscheduled risk-related costs from occurring. Obviously, the implementation of ERM within an organization will not eliminate all possible risks but, with suitable management and use of contemporary tools which facilitate decision-making, it will result in the management becoming fully aware of all the risks to which the company is exposed, it will reduce the likelihood and consequences of risks manifesting themselves, and it will prepare companies to deal with risks and hence maintain their business continuity. v

y o u

b y

I m m u s e c

C

M

Y

CM

MY

CY

CMY

K


C

M

Y

CM

MY

CMY CY

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ENT E L IG I N T I S IO N D EC


sector analysis: ict

42

Made in Poland 2013

Full-service financial control, at a fifth of the cost Fineus is a company that provides services related to financial control, implementation of management information systems, integration of IT systems and development of instruments to consolidate financial statements. Here, Fineus’ Piotr Przewrocki talks about how the service works, and its advantages for business. Piotr Przewrocki, President

employees. Combined with an incentive compensation system, it transforms them into partners pursuing long-term goals.

What is the Fineus business profile and in what does the company specialize? Fineus offers a unique online control service which, in its simplest form, consists in delivering reports tailored to the needs of various recipients within a company. In its most advanced form, the client accesses a service that replaces the controller or chief financial officer (part-time CFO). How can we build a financial control system in a company and get the best from it? To implement a control system, one must take into consideration the total costs related to it (referred to as Total Cost of Ownership – TCO). Such costs should be estimated over a long-term perspective of at least two to four years. These costs cover: specialist software (licenses), implementation, updates and maintenance (service), employment of a financial controller and/ or a chief financial officer, indirect labor, office rent, purchase of computers, purchase of servers, server licenses, etc. Alternatively, one can use the solution proposed by Fineus, which provides identical functionality for a monthly subscription, as well as consulting services from high-level specialists in corporate finance. The cost of the service provided by Fineus in relation to the cost of alternative solutions is about one-fifth, based on all reliably calculated alternative costs. Fineus Balance & Control is a service that helps one to monitor the financial standing of an enterprise. In what way is it innovative? Fineus sets a new market standard: it is hard to find an alternative service which changes the way a company is managed to such a degree. From intuitive management to professional planning, budgeting, investment analysis, effectiveness analysis of the sales department and marketing campaigns, as well as maintaining control over costs – including unit production costs. Finally, Fineus modifies the way reports are delivered from top-level managers to those managing teams of several

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The service is innovative in several respects. It is not just another form of reporting software (BI) which must be used with software from specific producers, neither does it suffer the shortcomings characteristic of such software, i.e. data of low quality, the necessity of making costly infrastructure investments, the inevitability of hiring specialists to operate the software and the need to hold a substantial number of costly training sessions. It is a SERVICE provided at a very attractive price which includes all costs of ownership (servers, licenses, implementation, updates, technical support, etc.). Another innovative aspect is the technology, involving original, highly effective software allowing one to be connected to any data source. Apart from accessing statistical data sources in data warehouses, Fineus is unusual in that it can use dynamically changing data. In spite of the advanced nature of the technology, the service remains extremely easy to use. In principle, training on the OLAP cube is all that is required. Who can use your service? Is it aimed at a particular segment? Fineus has achieved great market success. Our clients include small, medium-sized and large companies from the fields of production, service, and design, as well as mixed-activity companies. One of our distinctive features is that when we conduct an implementation process, we begin with a clean sheet of paper. We do not assume that since we have implemented Fineus in one company, that we can use an identical strategy in another. This gives us a great competitive advantage as we acquire only the best-quality data for our analyses. Is this a service that can be used worldwide? Fineus has found investors and taken steps to offer its service in European markets and in the USA. v

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Fineus Balance & Control ul. Twardowskiego 33a Kraków 30-312 +48 124104600-02 +48 502281932

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Made in Poland 2013

sector analysis: ict

anytime in the near future, said Tomasz Kułakowski, CEO and co-founder of CodiLime. His company was established by Polish world champions in programming and ex-Google and Facebook employees who are now recruiting young talent on their home turf. “Apart from a few companies that have entered the European league, our IT market is divided between relatively small companies,” Mr Kułakowski said. He believes the future belongs to small, specialized and high-end IT outsourcing providers. Last year’s Deloitte’s Technology Fast 50 ranking proves that there is potential in Poland’s grassroots IT firms though. The annual listing, which honors the fastest growing Central European technology companies, contained 36 Polish companies – meaning Poland dominated the list. Three entered the top five, while the best performer landed the third spot with a five-year growth rate of 2,254 percent. The fastest growing Polish IT firm, Gliwice-based i3D SA, specializes in 3D simulations for customers that include the global oil giant Saudi Aramco.

Plumber vs programmer

Polish IT specialists can’t complain: they are some of the best-paid professions around. Plus they belong to the world’s geek avant-garde.

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Polish IT innovations at CeBIT As a partner county of this year’s CeBIT, Poland staged an impressive display, occupying more than 3,000 square meters at the event. Some of the showcased innovations include: • An infrared detector, a copy of the one used in NASA’s Mars Curiosity rover, manufactured by the Polish VIGO Systems company • Dice+, a digitally enhanced version of traditional dice games that works with with smartphones and tablets, and is compatible with all platforms. It has an anti-cheating algorithm and Bluetooth connectivity. • Oktawave’s Infrastructure as Service, or cloud services that allow for storing and using all kinds of content, from internet pages to corporate solutions • The world’s fastest 80251 CPU, called DQ80251. The processor’s high performance was possible thanks to the unique architecture the manufacturer, Digital Core Design, implemented. v


sector analysis: ict

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Made in Poland 2013

Up-and-comers Octawave: clouds from Poland A cloud made in Poland is floating toward global markets. Oktawave, part of the K2 Group, says its platform is already faster than Amazon’s: it takes 0.07 seconds for it to simultaneously handle 14,000 web queries. It’s secure, and it’s at least two times faster and cheaper than its international competitors, the company claims. One hour of work from Oktawave costs $0.02. Ivona makes its voice heard Recently bought by Amazon, Ivona is a speech syndication technology firm from Poland’s Tri-city region. Its technology already works in 17 languages. Amazon will use it to add features to its Kindle Fire, including Text-to-Speech, Voice Guide and Explore by Touch. The company was founded in 2001 by Łukasz Osowski and Michał Kaszczuk, graduates of the Gdańsk University of Technology. Their 10 years of work resulted in a long list of implementations. The technology is used by major banks, it provides passengers with information on Warsaw’s subway and reads press articles for the visually impaired in the UK. You can also order a customized voice if you don’t like the over 40 varieties available. The technology behind the human-like voice rely on RVD technology (Rapid Voice Development). It uses a set of tools modeling linguistic issues such as subvocalization, accentuation and intonation. v BPO centers that used to have a mixed reputation of deadend employees are also headhunting for Polish IT brains – with success. Already more than 100,000 various specialists, many in IT, are employed by such outsourcing canters in Poland. “The strength of Polish programmers lies in their capacity to think out of the box and effectively look for solutions that go beyond ready-made corporate scripts,” said Michał Grabarz, director of IT services at Łódź-based Infosys BPO Europe. A strong emphasis on high-level mathematics and information technology in university curricula – an Eastern bloc legacy – gives them a thorough background and flexibility to take on a variety of IT roles, Mr Grabarz explained.

Not for profit innovators

Prof. Andrzej Czyżewski, head of the multimedia systems department at the Technical University of Gdańsk, is a prolific

and award-winning innovator in the field of intelligent multimedia technologies. The fruits of his 20 years of research on advanced technologies that aid the imperfect human senses have so far been used mainly for non-profit purposes (benefiting more than 20 public institutions across the country). It had to do much with the now-outdated definition of commercial use, previously understood as making the invention available for public use. Meanwhile, the technologies developed by his 30-strong research team could be applied in education, medicine, defense and industry. Some are already undergoing a process of commercialization. One deal has been finalized with a leading foreign corporation, opening the door for industrial-scale implementation of their gesture-based computer technology. But building bridges to the business world is exactly where hurdles begin for local innovators with a bag full of brilliant ideas. “The academic environment in Poland is not ready to commercialize its inventions,” said Mr Czyżewski. “We are in a fog when it comes to evaluating an invention’s value. There are no guidelines as to who is the actual owner of the invention and how it can be commercially used.” That leaves the scientists on their own in a mire of complicated procedures. But that’s also about to change. The Ministry of Science and Higher Education has proposed a reform package that is supposed to enable scientists, universities and companies to share profits from inventions on mutually agreed basis. Some unrealized breakthrough ideas may finally see the light of day. v


Made in Poland 2013

sector analysis: aviation

Polish aviation flying high

The industry is in good shape in Poland, and its future looks bright

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oland’s aviation industry has an 80-year history, while aviation itself has been present in the country for roughly a century.

In recent years, the industry has received strong support from academic and engineering circles, which helped it develop and adapt to a transformation process after the fall of communism, when its biggest destination markets dried up. The industry has also received a lot of outside help. It has survived thanks in large part to cooperation with international entities and foreign investment directed to Poland. Right now, in almost every passenger plane in the world, there is at least one part that was produced in Poland, according to the Polish Information and Foreign Investment Agency (PAIiIZ).

by Remi Adekoya There are currently some 120 companies operating in or around the aviation industry in Poland, generating annual sales of E800 million and employing some 23,000 people. Roughly 80 percent of these firms are located in the southeastern part of Poland in one of three existing aviation clusters. “I think the Polish aviation sector is heading in the right direction. It is among the most innovative sectors in the Polish economy,” said Wojciech Łukowski, from the Institute of Aviation. “However, the only way for faster progress for both the civil and military aviation sector is accessing global industrial structures,” he added. This is already happening.

Aviation Valley

The Aviation Valley Association was started by a group of leading aeronautic producers, suppliers and businessmen in

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sector analysis: aviation

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Made in Poland 2013

Over 60 years of PZL-Świdnik Over 60 years of Polish aviation development

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ith over 60 years of experience and having produced over 7,400 helicopters, PZL-Świdnik is the only Polish original helicopter manufacturer with the capabilities to undertake design, research & development, system integration, production, support, training and upgrades. The Company’s range of rotorcrafts can perform the complete spectrum of commercial and government roles. PZL-Świdnik is also a major industrial partner in the aerospace market, supplying aerostructures to many of the world’s leading helicopter and aircraft manufacturers. PZLŚwidnik has been an AgustaWestland company since 2010. Over 60 years in the aviation industry The history of PZL-Świdnik dates back to 1951, when a plant manufacturing control surfaces and wings for the MIG-15 fighter was established. PZLŚwidnik’s operations in the helicopter industry started with licensed production of the SM-1, followed by its modified version, the SM-2. Both helicopters saw a high production rate, which was close to 1,800 units. A further step in the development of PZL-Świdnik was the production of the Mi-2, almost 5,500 units of which have been produced. In the late 1970s and early 80s one Mi-2 helicopter was produced a day. The Mi-2 was also the basis for the development of the PZL Kania model. The serial production of the PZL Sokół, currently the main type of PZL-Świdnik rotorcraft, opened a new chapter in the history of the company in 1988. In 2004, the serial production of the light SW-4 helicopter designed to carry up to five people was launched. PZL-Świdnik and AgustaWestland together ahead of the game B r o u g h t

Cooperation between PZL-Świdnik and AgustaWestland dates back to October 1996, when the first AW109 Power fuselage was delivered from Poland to Italy. Today, PZL-Świdnik is involved in the production of AgustaWestland’s helicopters, manufacturing the AW109, AW119, AW139 (the best selling medium twin helicopter in the global marketplace) and AW101 aerostructures, recently joined by the AW169 and AW159 structures. Being a part of a company that is a powerful force in the global helicopter industry enables PZL-Świdnik to have access to state-of-the-art technology and participate in the expansion of AgustaWestland’s product range. The global know-how, experience and practical skills transfer result in implementation of demanding projects such as an unmanned aerial system SW-4 Solo RUAS/OPH (Rotary Unmanned Air System/Optionally Piloted Helicopter) and the AW149, a sole new-generation multipurpose military helicopter featuring outstanding performances and capabilities. Cooperation with the global leaders Decades of experience in the aviation industry, impressive production volumes, expertise and the practical skills of nearly 3,500 employees have resulted in PZL-Świdnik becoming a global center of industrial excellence and a key partner of leading companies in the aviation industry (AgustaWestland, Bell, Eurocopter, EADS Sogerma, Latécoère, Pilatus). Under the cooperation programmes, PZL-Świdnik produces rotary- and fixed-wing structures for well-known aircraft such as the Airbus family, ATR-72 & ATR-42 and Pilatus PC12, just to name a few. t o

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Heavy investments in R&D PZL-Świdnik’s long experience in conducting R&D activities is truly impressive. The range and matter of these actions evolve together with the development of the company’s activity. Firstly, tasks were performed exclusively for internal needs and licensed helicopter structures. The next stage was marked with the development of own-designed helicopters. For years PZL-Świdnik’s engineers have been cooperating with their Italian and British colleagues in designing aerostructures for AgustaWestland’s helicopters, exchanging expertise and implementing the most advanced technologies. PZL-Świdnik believes investing in R&D means offering a wider range of solutions for current and forthcoming customers’ needs by expanding the capabilities of existing products, installing state-of-the-art technologies and developing revolutionary rotorcrafts. For this reason the company is investing in its R&D center and provides it with the latest technology, equipment and software. Therefore, the company continues to create a modern engineering environment fitted for the 21st century. PZL-Świdnik is focused on the constant pursuit of innovation in terms of modern solutions, related to both design and technology. PZL-Świdnik is one of the three industrial leaders of the InnoLot program – the first Polish aviation industry research programme, created in cooperation with the National Centre for Research and Development, and the only Polish Associate within the Joint Technology Initiative Clean Sky, the largest European avia-

P Z L - Ś w i d n i k


Made in Poland 2013

sector analysis: aviation

tion research programme. PZL-Świdnik is one of the Polish industrial leaders in EU Framework Programmes. In 2006 company was awarded the Crystal Brussels Prize, followed by two nominations in 2008 and 2010. Appreciating science PZL-Świdnik acknowledges the significant contribution that the Polish scientific community has made to the development of the national aviation industry. The company is a key employer in the Polish aviation sector

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and one of the major employers in the Lublin region. Recently, PZL-Świdnik signed cooperation agreements with Poland’s top technical universities (the Lublin University of Technology, Rzeszów University of Technology, Warsaw University of Technology, Military University of Technology and the Polish Air Force Academy), which includes conducting joint research projects and the education of future engineers. Thanks to these agreements, the company is involved in the transfer of ex-

pertise and competencies to Poland’s up-and-coming engineers. Signing the agreements is a further milestone in PZL-Świdnik’s cooperation with the scientific community. In 1998, the company and the Lublin University of Technology created the Helicopter Engineering specialization, a pioneering initiative in Poland at that time. The company also collaborates with various European universities in R&D projects, for example the AERONET joint research project – a network created by academic centers and research institutes. v

PZL-Świdnik’s product range

The SW-4 is a light, single multipurpose helicopter designed to carry up to five people under day and night VFR conditions. Flexibility, safety, ease of flying and low operational cost make the SW-4 an excellent helicopter to meet any modern user’s requirements. The SW-4 can effectively perform a wide range of operations. In its civil configuration, it is perfectly suited for VIP transport, whereas in the military version it is ideal for utility missions, patrolling, as well as primary and advanced training.

The W-3A Sokół is a twin-engine helicopter capable of carrying up to 14 B r o u g h t

people, as well as cargo. The helicopter has proven its outstanding capacity as a highly effective and reliable helicopter capable of operating in all climates and weather conditions, at day and night. Combining high efficiency with exceptionally flexible configuration enables the helicopter to meet a wide range of specific requirements and may perform both civil and military missions. The Sokół can effectively perform a wide range of operations including air force missions, law enforcement, EMS/SAR and fire fighting. It is also designed for VIP transport and as a multipurpose combat helicopter in its W-3PL Głuszec version.

The AW149, the latest generation multipurpose military helicopter, is the effect of close collaboration between AgustaWestland and PZL-Świdnik, which has been involved in the design and development works from the very beginning. The AW149 is a t o

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military medium twin helicopter that sets a new standard in the market. From combat support, transport of troops and materials, medical evacuation, SAR and combat SAR, command and control or other airborne missions, the AW149 provides the flexibility requested to a modern battlefield support helicopter, and executes all required missions with unparalleled cost-effectiveness.

The SW-4 Solo RUAS/OPH was developed by AgustaWestland and PZLŚwidnik engineers and is based on the proven SW-4 light helicopter. The Solo is designed for both unmanned and piloted operations providing users with maximum operational flexibility. The aircraft is capable of performing a number of roles, including intelligence, surveillance, reconnaissance and cargo re-supply. When piloted, the Solo can undertake manned activities including transportation, surveillance and intervention as well as training. v

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sector analysis: aviation

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2003, as a non-profit organization and a means to furthering the rapid development and growth of the aerospace industry in Poland. The long-term objective of the organization is to transform southeastern Poland into one of Europe’s leading aerospace regions, which would be able to provide a diverse cross-section of products and services for the most demanding clients. The cluster is also meant to develop cooperation between various aviation manufactures, ensure a low cost supply chain, develop aerospace research and skills, cooperate with technology universities and other aviation centers across Europe and the world. The association currently represents 80 companies within the region. Roughly 22,000 engineers, designers and technicians are employed in the cluster. Most of the products made there are sold abroad to countries like Canada, Greece, Germany, Italy, Indonesia, South Korea, Spain, the United States and Venezuela.

State support

PZL Mielec is one of the firms present in the cluster, where it produces the famous Black Hawk helicopter, among others.

“Our trademark Black Hawk helicopter is currently being produced in the latest S70i version and includes innovative solutions such as state-of-the-art avionics and an improved structure,” said Michał Tabisz, spokesperson for PZL Mielec. He also said that at the end of 2012, PZL Mielec began construction on a new center for aircraft testing and research. The R&D center will cost zł.60 million, of which zł.20 million was provided by the European Union. It will come up with solutions not only for helicopters but also for six-wing aircraft such as the M28.

Made in Poland 2013

Also, PZL Mielec plans to apply for support from the National Centre for Research and Development, an agency under the aegis of the Ministry of Science and Higher Education, which was created in 2007 to support science and technology innovation in Poland. At its founding it was the first entity of its kind in Poland, created as a platform for dialogue between the scientific and business communities. The agency plans to invest E75 million in R&D research in the years 2013-2017. Mr Tabisz said things are looking good for PZL Mielec right now. “Since the end of 2010, PZL Mielec has produced 20 Black Hawk helicopters. But this year alone we plan to produce 15 and will hire some 200 new employees. “This year, the industry is blossoming,” said Mr Tabisz.

Engine of innovation

Pratt & Whitney Kalisz is also present in the valley. “Aviation products made in Poland are attractive in foreign markets because they are “cheaper while at the same time the companies have access to modern technologies which can be transferred from the West,” said Sławomir Kieszczyński, a manager at Pratt & Whitney. P&W is also currently involved in projects in Poland aiming to explore and create more high technology. Mr Kieszczyński pointed to the PW1000G engines as an example. The PW1000G is the first in a new line of “PurePower” engines Pratt & Whitney claims are 10 percent to 15 percent more fuel efficient than current engines used on regional jets and single-aisle jets. The company also says the PW1000G engines are substantially quieter than others. However, Mr Kieszczyński said some changes will be needed in the way aviation companies operate in Poland. “We have


sector analysis: aviation

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to implement new methods of machining parts, we have to implement some automation processes, just like in the car industry, in order to be competitive,” he said. Asked about the biggest drawback for an aviation company operating in Poland, Mr Kieszczyński pointed to the fact that many skilled young graduates have emigrated from the country in recent years, thus somewhat limiting the available talent pool within the roughly 11,000 new engineers that emerge from Poland’s universities every year. The other big problem though is not specifically Polandrelated. “The fact of the matter is that the global aviation market is limited. It is not like the car industry where people sometimes change cars every two three years and so new ones are continually being built. Planes are built for 30, 40 years,” said Mr Kieszczyński. Nicola Bianco, vice president of helicopter maker PZLŚwidnik, said, “the helicopter industry is considered the fastest growing segment of the aviation industry right now.”

Made in Poland 2013

“Last year, the Polish Ministry of Defense announced that it was interested in acquiring drones and several companies, including ours, applied for the job. Definitely, here in Poland, we have mature solutions when it comes to making drones,” said Dariusz Sobczak, managing director at WB Electronics. Mr Sobczak said Polish companies are very good when it comes to producing gliders, thus possessing technology that would surely be helpful when it comes to drone building. “The world aerospace market shows remarkable growth potential for unmanned aerial systems able to perform various missions,” said Mr Bianco. “We also see significant growth prospects for dual-use helicopters, designed to meet both civil and government/military needs.” Since the fall of communism, Poland’s aviation industry has succeeded in adapting to free-market realities in a way that some other industries have not. Those who have made that possible deserve kudos for that. Hopefully, the Polish aviation industry will now take the next step it needs to strengthen its brand and position on the global market. v

Droned in?

Polish aviation companies are also hoping to branch out into the business of building the controversial drones often used by the United States government to fight terrorists.

Acrobats in the sky “AIR SHOW – 2013” International Air Display will be held for the 13th time. There, airmen will celebrate the 95 years of Polish aviation. The “AIR SHOW” International Air Display has been taking place in Poland since 1991. At the Air Show’s debut 22 years ago in Poznań, during the commemoration of the Aviation Feast, aviation enthusiasts admired aircraft from the United States of America, France, the UK, Russia and, of course, from Poland, both in the stationary ground display and the dynamic aerobatics display. Subsequently organized festivities “traveled” around the country and were held in Dęblin and Bydgoszcz, among other Polish cities. The “AIR SHOW” formula had to be constantly developed as the air displays were attended by aerobatic teams from more and more new countries and so that aviation industry companies could promote their newest products on such occasions. At the turn of the 20th and 21st centuries, the Polish government faced the decision of

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whether to modernize the Air Force, so the top companies found an excellent opportunity to showcase their technical and organizational potential. In those years Polish airmen became valued guests at European air shows, and when provided with new aircraft they frequently began to participate in exercises abroad. In 2000, the “AIR SHOW” International Air Display took place in Radom for the first time. It was at that time when it was transformed into a cyclically organized event linked to the International Defence Industry Exhibition in Kielce. And from then on the “AIR SHOW” has permanently been included in the calendar of holiday air events, drawing crowds of hundreds of thousands spectators. The 12th edition of the “AIR SHOW” in 2011 gathered 180 aircraft at the Radom airfield. During this event four foreign and two Polish aerobatic teams present-

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ed their air skills. The aerial displays lasted for 9 hours each day. Needless to say, the 13th edition will be even more attractive. The Air Show organizers expect that, among others, the B-52 bomber from the USA will be present at the display and that the Ukrainian team will give an exciting performance. For the first time, radar stations and air-defense missile launchers will also be exhibited, so that the public can see the another significant element of the Polish Air Force. All admirers of modern technology are invited by Air Force Commander, Lieutenant General Lech Majewski to Radom airfield on August 24-25! v

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Made in Poland 2013

sector analysis: autos

Highway to growth? Poland’s automotive producers look to put exports back in high gear

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he iconic symbol of Poland’s automotive industry remains the Fiat 126p, known affectionately as the “Maluch,” produced from the early 1970s in the Polish Fiat factory in Tychy, in southern Poland, and which was still a very common sight on Polish roads well after the end of the communist era. Italy’s Fiat – which has been involved in the production of cars in Poland since before World War II – is still Poland’s biggest producer of cars. The other two largest producers are Volkswagen in Poznań, as well as Opel Polska, owned by General Motors Manufacturing Poland, in Gliwice.

Other than this, Poland is also home to a wide array of producers of car parts and accessories – many which supply the aforementioned producers, as well as the aftermarket sector. Additionally, there are a number of bus producers in Poland, making strides forward in the export markets in recent years (see box).

by Brendan Melck Production means export

Poland’s internal automotive market is very small. While Fiat Poland used to supply the country’s population, these days, nearly all Polish-produced cars are sold abroad.

“More than 97 percent of the cars produced in Poland are exported, roughly. We can say that in Poland, when it comes to the automotive sector, production means export,” said Jakub Faryś, president of the Polish Automotive Industry Association (PZPM). The markets to which these cars are exported are principally those of Western Europe.Naturally, the sovereign debt crisis is taking its toll on demand for new cars. In recent years, exports have been boosted by car-scrapping schemes – particularly those in neighboring Germany, an important market for Poland’s automotive industry.

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sector analysis: autos

“Thanks to all the incentive systems (i.e. car-scrapping) in Europe it was possible for car production in Poland to reach almost 1 million cars a few years ago,” recalled Mr Faryś. Indeed, as reported by Poland’s Central Statistical Office, production of cars, trucks and buses in 2008 reached 944,900 – with passenger cars accounting for 841,000 of these. “We expect that in 2013, production will reach about half a million cars – we hope it will be more, but this is what we expect,” said Mr Faryś. “So it’s roughly half the number in 2008,” he added.

Brighter prospects for parts producers

Production of cars has been declining since the 2008 peak, and Poland’s car producers face a tough situation, with car sales in Western European countries still declining. However, in other segments of the automotive industry the situation is more favorable. Suppliers of parts and accessories are noting sales increases, thereby boosting the condition of the sector as a whole. “In 2012, exports of parts and components from Poland increased, while exports of finished products fell,” Rafał Orłowski of automotive market analysis and consulting organization AutomotiveSuppliers.pl said. “This is largely the result of strong relationships with German customers, which account for more than 41 percent of the exports of car parts from Poland, and also because of growth in exports to countries such as Slovakia,” he added.

Made in Poland 2013

Poland’s southern neighbors Slovakia and the Czech Republic are important players in the European automotive sector, and production of cars in these countries is rising. But this is not a bad thing for Poland’s automotive sector, according to Mr Faryś. “Polish suppliers are not just delivering for Polish factories – and fortunately, in the Czech Republic and Slovakia, car production is increasing, and that’s good – it benefits suppliers in Poland,” he said. Another important difference between the suppliers of parts and accessories and the producers of the finished product is that the former have some flexibility in terms of their production mix. As Mr Faryś explained, for the suppliers, as well as factories producing cars in Poland, they have safety nets in the form of factories outside of Poland, as well as the aftermarket segment, when car production in Poland is sliding.

Government support

Nevertheless, halting this slide remains a constant preoccupation of the Polish automotive industry, and inevitably, this involves engaging with the government to help create the conditions which will attract investment in this sector in Poland. “The government’s so-called ‘anti-crisis package’ expired at the end of 2011, and although industry organizations called for it to be extended, this did not happen,” recalled


Made in Poland 2013

sector analysis: autos

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Family firm tops growth table in bus exports While far from escaping the impact of the ongoing economic problems in European markets, producers of buses in Poland – which are also principally reliant on exports – have seen a slower reduction in exports than their compatriots involved in car production. Industry analysis provider JMK has reported that exports of buses produced in Polish factories fell 15 percent in 2012, the total number reaching 3,210. The main three bus producers in Poland are MAN of Germany, domesticallyowned Solaris and Sweden’s Scania. As JMK reported, although exports to the main markets of bus producers in Poland, in particular Germany and Sweden, have remained steady, with increases in 2012 of 1.9 percent and 0.7 percent year-on-year respectively, exports to countries more affected by the euro zone debt crisis, such as Italy and France, fell drastically, by 30.4 percent and 10.9 percent respectively. In spite of the overall downward trend, there are still some very positive points to note in this segment of the automotive industry. Particularly, Polish-owned

Solaris Bus & Coach bucked the trend with a 7.9 percent year-on-year export growth in 2012, while both MAN and Scania noted double-digit declines (13.6 percent and 44 percent year-onyear respectively). What is the secret of this family-owned company which has only been making and selling buses since the mid-1990s? “The secret of their success is simple,” explained JMK’s Karol Wach. “A good product, of European standard, with a price lower than that which is offered by the competition, as well as continued expansion of the sales network, good customer relations, and world-class marketing and promotion.” And the prospects for Polish bus production? Much optimism is tied up with the introduction of the new EO 6 European emissions standards applicable to bus engines. Mr Wach played this down, however. “I don’t think that EURO 6 will have such a major influence on increasing exports. I believe 2013 will be comparable with

Mr Orłowski. “A draft of a new anti-crisis package has been passed by the government, but it’s not clear when it will be implemented. This situation needs to be resolved quicker,” he added. Mr Faryś also emphasized how important it is for the Polish government to do everything in its power to create conditions that will help persuade car makers to invest in Poland.

An uncertain future – but some cheer

As far as prospects for the future are concerned, there is a lot of caution.

2012, maybe a little better – although it could be better in terms of exports to more exotic countries,” he predicted. “Solaris is focusing on increasing sales in non-European markets, and it already has representative offices in South Africa, the United States, Canada, Argentina, and some Asian countries – two thirds of the buses Solaris produces are exported,” said Mr Wach. Sales of buses, unlike cars, are less susceptible to the economic fluctuations, and this explains the lower drop in sales, Mr Wach explained. “The vast majority of buses are bought by public transport operators, not private customers, and so they are most likely to obtain the money to buy buses from the local government, national government, or the EU.” And, it can be assumed, a Polish producer of buses such as Solaris Bus & Coach, with a good product at an attractive price relative to Western European producers, will be all the more favorably regarded at a time when funds are tight. v

finished-product producers with producers of parts and accessories. “It will be better for producers of parts and components, but to reach the same figures reached in 2012 will be difficult, because of – among other reasons – a reduction in car production in Germany.” Notwithstanding this, recent reports that Fiat will move its entire production of Fiat 500s to Tychy – currently they are produced both in Poland and Mexico – are a very good sign for the industry after the Panda’s withdrawal, and could be a reward perhaps for the very high standards of production at the plant.

“There won’t be an improvement before the European economies, which are the most important for our automotive sector, emerge from the economic crisis,” predicted Mr Orłowski.

The other good news for the Polish industry is Opel’s decision to produce its new Opel Cascade exclusively in its Gliwice plant.

Citing the predictions of managers in the automotive sector suggesting that the second half of 2014 or 2015 may see the start of an improvement, he contrasted the situation of

Could these be the beginnings of Polish auto production and exports picking up speed? We will have to see where the road takes us. v


sector analysis: cosmetics

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Made in Poland 2013

Not just skin deep

Poland’s cosmetics producers have built a strong presence in global markets thanks to know-how, quality and R&D

by Marta Mardosz

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oland’s cosmetics companies have aged gracefully. Since most were founded during the communist era or shortly thereafter, they have years of know-how and experience that have served them well during the global economic slowdown and European sovereign debt crisis. Every large Polish cosmetics firm has developed its own laboratories and R&D centers.

Polish cosmetics had boasted global recognition even before the fall of communism. Before 1989 the biggest destination for Polish cosmetics exports were other countries within Soviet Bloc, as well as the Middle East. Today, Poland is the sixthlargest exporter of cosmetics in Europe. According to Poland’s statistics office, the total value of of cosmetics exports was E1.9 billion in 2011 (the most recent available full-year data).


Made in Poland 2013

sector analysis: cosmetics

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Extending their reach

Conquering beauty salons

Polish cosmetics products are already well-known in Eastern Europe and Russia, but as producers have started to focus more on exports, Polish products are becoming better known in other markets. The reason for their increasing popularity is the relatively cheap price, with the same high quality as other worldwide brands, market players say.

Polish cosmetics are also expanding in the beauty-salon sector. Clarena is one of the biggest and best-developed producers of professional cosmetics for beauty parlors in Poland. The company offers high-quality skincare products and skincare cosmetics. The company can create innovative cosmetics for individual customers and unique individual skin treatments. That service is particularly valuable for those who have very sensitive and demanding skin.

Dr Irena Eris, one of the best-known brands in the Polish market, exports its products to 28 countries worldwide, including Australia, Ecuador, Lithuania, Russia and Taiwan. The cosmetics produced by the company are also available in Rossmann drug stores, under the name Lirene.

In 2012 the company opened foreign branches in Brussels and London. Right now, Clarena products are exported mainly to European countries including Austria, Estonia, Germany, Greece, Hungary, the Netherlands Romania, Russia, Spain, and Ukraine. v

The company’s biggest foreign market is the United States. Its first cosmetics products were sold there in 1989. Today, Dr Irena Eris cosmetics reach over 1,000 American beauty salons, in such big cities as New York, San Francisco and Las Vegas. The company has been planing to enter the Chinese and Malaysian markets. The firm is already active in Hong Kong, South Korea and Taiwan. Company co-owner Henryk Orfinger has said that he expects foreign markets to help drive a 30 percent increase in sales in 2012.

The biggest individual consumers of cosmetics produced in Poland are Russia (15.3 percent), the UK (12.1 percent) and Germany (11.9 percent). Statistics show that Poland has a strong position in the markets of the former Eastern Bloc, which account for 40 percent of Poland’s cosmetics exports. Big EU countries constitute the next largest group of customers – 35 percent of Poland’s cosmetics exports go to these markets, including Germany, France, the UK and Italy.

Polish polish

Another Polish company that conquered the American market is Inglot Cosmetics. Inglot sells cosmetics including powders, foundations, eye shadows, lipsticks and lip glosses, but its most famous product is its nail polish. The company has 333 stores in 46 countries, including markets such as Australia, Canada, Germany, Israel, Italy, Mexico, Qatar, Russia, the UAE and the UK.

Stable foundations

The Polish cosmetics industry is characterized by stable development despite rapidly changing market conditions. The cosmetics industry was worth E3.3 billion in 2011, and market research firm Euromonitor estimates that in 2012 this value rose to E3.4 billion.

Inglot has achieved enormous success in Hollywood, where professionals and movie stars use its cosmetics. The company also provides make-up supplies for Bloomberg and TV stations in Manhattan. Today, the Inglot logo can be seen in Times Square in New York City and its cosmetics are sold in nearly 400 boutiques in malls in some 50 countries, including Macy’s.

According to the same study, cosmetics market growth in Poland is one of the highest in Europe, and remains at the level of 5 percent, much higher than for other major, the European cosmetic markets. In the years 2001-2011 the worth of the Polish cosmetics exports rose five times.

The share of cosmetics exports in a geographic division, Poland billion E, 2011 Russia

Spain

Great Britain

Turkey

Germany

Hungary

The Ukraine

Romania

The Netherlands

Others

Italy

Source: Central Statistical Office

Beautiful reputation

Oceanic, a manufacturer of the AA line of hypoallergenic cosmetics led by Dorota Soszyńska and Wojciech Soszyński, is another Polish cosmetics firm that has achieved global success. The company has been operating for over 30 years. Oceanic is present in 27 countries and it has a particularly strong position in Belarus, Hungary, Lithuania, Slovakia and Ukraine. Its products are also available in Canada, Malaysia, South Korea, the US and throughout Western Europe. Magdalena Burgiel, the PR and advertising manager at Oceanic, said that Polish cosmetics have an excellent reputation due to many factors.


sector analysis: cosmetics

56

Made in Poland 2013

Clarena – the Polish leader in professional cosmetics Clarena is one of the biggest Polish manufacturers of innovative professional cosmetics. The company has been on the market since 1998 and specialises in the service of beauty salons, supplying high-quality care products and dermocosmetics, as well as modern, specialist devices for treatments. Clarena also offers cosmetics for retail customers and salon treatments created by Clarena’s trained cosmetologists. Clarena professional cosmetics appeared on the market 15 years ago. Thanks to the dynamic development, innovative technology and outstanding quality of its products, the Company was soon recognised as a leading player in the beauty industry. At present, the Clarena brand is highly appreciated by international beauty experts and distributed to 19 countries in Europe. We are expanding the brand in foreign markets rapidly. Currently, only in Poland, the company supplies its products to several thousand beauty salons out of which there are 6,000 beauty salons using Clarena products exclusively. Patricia Popławska is the founder of the Clarena brand and is the owner and President of the board. The Company’s headquarters is located in Wrocław, with over 150 employees. The Company philosophy is based on an individual approach to beauty. Every client is given a free and comprehensive consultation with a cosmetologist who will recommend a personalised treatment plan and products best suited to their needs. Another important objective is to discover innovative and often

maceuticals. Due to the careful selection of plant extracts and high-quality active ingredients, we have produced full, synergetic cosmetic lines aimed at both the professional and individual customer.

pioneering solutions to the problems of modern cosmetology. Besides its headquarters, Clarena has three large Cosmetics and Training Centres in Poland: Warsaw, Cracow and Wroclaw and two abroad: in Brussels and London. Moreover, this year Clarena will open a centre in Shanghai. In addition, since September 2012, we launched an Official Online Store www.e-clarena.eu, where customers can get all the beauty products for personal home care. The online shop is to facilitate purchases of international customers as the website is in three languages: English, French and Russian. Clarena cosmetics for face and body care are developed by experts and produced on the basis of top quality components to meet the individual needs of every skin type. They are the result of a combination of traditional recipes with innovative raw materials based on the latest, often pioneering work in the field of biotechnology, cosmetics and phar-

B r o u g h t

t o

y o u

b y

Clarena was the first company in Poland which introduced the following ingredients for cosmetic treatments: pyruvic acid, a nano ester form of vitamin C, Chromabright ™, the newest whitening complex, and the active ingredient VITASOURCE ™ which delays the ageing process of cells. Clarena was the first and foremost Company in Europe that introduced Vitamin U in its innovative cosmetic formulas. As an expert in the field of cosmetology, Clarena has been continuously awarded many prestigious awards. These include awards for innovative solutions, professionalism and quality. The Company has been recognised with the following awards: • L uxury Brand of the Year 2011 and 2012 • Business Cheetah 2012 • Effective Company 2012 • VICTORIA Quality Mark of Entrepreneurs 2011 • Beauty Expert 2010 for the treatment “Diamond Lift”, Business Gazelle 2010 • Best Beauty Buys 2010 • Beauty Premium 2010 in category: Professional Care Cosmetics, Fair Play Company 2010 • Dolnośląski Gryf – Economic Award 2009 in category: Innovation v

C l a r e n a


Germany Great Britain Made in Poland 2013

sector analysis: cosmetics

Russia

57

Cosmetics export value in a geographic division, Poland, E, 2011 Russia

Spain

Great Britain

Turkey

Germany

Hungary

The Ukraine

Romania

The Netherlands

Others

EU 27

Central and Eastern Europe

Developing countries

The remaining developed countries Source: Central Statistical Office

Italy

Inglot’s hit among Muslim women Inglot Cosmetics found unexpected success with the Muslim women when one of its nail enamel series was certified halal. The nail polish, called O2M, became a hit because it allows air and water to pass through it, unlike the traditional vanishes.

Going green AVA Cosmetics Laboratory says it has always favored ingredients of natural origin and uses the highest-quality extracts in its most effective concentration for optimum results. All of its formulas are laboratory tested for allergy and irritation and are subject to strict research to evaluate their effectiveness. AVA Cosmetics Laboratory is the first Polish cosmetics company to create organic products: its ECO LINEA line, which is certified by Ecocert France. v “Exceptional quality, natural ingredients, safety and efficiency combined with an increasingly attractive packaging and reasonable prices are undoubtedly great assets,” Ms Burgiel said. “The Polish cosmetics market has a great tradition and this is also one of the most important advantages,” she added. Exports account for about 10 percent of Oceanic’s turnover. In the next three to five years the company plans to increase that share to 30 percent. Ms Burgiel explained that the company is rapidly developing on the Iberian peninsula and is keenly interested in the markets of North Africa, Russia and the Middle East.

European focus

Another skincare manufacturer from Poland that has gained worldwide recognition is Ziaja, a skincare compa-

Muslims pray five times a day and are required to wash their hands before the ritual. The water must run over the hands and arms, even the fingernails, leading many Muslim women to avoid using nail polish. In November 2012 an Islamic scholar declared that Inglot nail polish was permissible under Muslin law because it allowed water to reach the nail. To prove the permissibility of the Inglot nail polish, the Islamic Institute of Orange County in California ran a test. The research involved putting the O2M polish and a standard polish on coffee filters, letting them both dry, and then putting water drops on top of each and seeing if the moisture seeped through. In the case of the traditional nail polish it did not, but it went through the O2M polish and even wet a second filter below. v ny founded in 1989, which is completely based on Polish capital. Lidia Ziaja, export manager at Ziaja, said that when it comes to skincare, the company understands that people’s needs are the same, regardless of geographic location – the only difference is in customer preferences. Ziaja operates in markets all over the world, including Croatia, the Czech Republic, Finland, Georgia, Germany, Hungary, Ireland, Latvia, Lithuania, Romania, Slovakia, Slovenia and Vietnam. Ms Ziaja explained that the priority for the coming years is to continue the expansion of Ziaja’s distribution network in countries where its products are already present. v


sector analysis: furniture

58

Made in Poland 2013

Sitting pretty

Furniture producers may export to fewer countries this year, but the value of exports is still expected to grow

P

oland’s furniture-production sector has a long tradition and is sometimes called the country’s national industry. Poland is considered a world leader when it comes to exporting and producing furniture, where it ranks fourth and tenth respectively in global rankings by value.

Estimates put the value of Polish furniture exports in 2012 at as high as E6.6 billion. This would mean a 3 percent increase in comparison to 2011, when exports amounted E6.4 billion.

by Karolina Kowalska, Marta Mardosz Compared with 1989, when Poland was beginning its economic transformation, the value of furniture exports has increased 61-fold. In contrast to these changes, the destinations for Polish furniture exports have mostly remained the same for years. The EU and the United States are still the biggest importers of Polish furniture. The total number of countries importing Polish furniture


Made in Poland 2013

sector analysis: furniture

reached 139 in 2012, 55 of which import wooden furniture products worth more than E1 million each. But the continuing global economic malaise may take a bite out of those figures. Market analysts predict that the number of countries that import Polish furniture in 2013 would decrease to 124, and that those importing furniture products worth more than E1 million would decrease to 51. But despite the number of export destinations falling, analysts expect the value of Polish furniture exports to rise this year by 2.5-2.9 percent. The furniture industry is positive and pleased with the results. The PLN/EUR exchange rate remained at attractive levels and exports to the major buyers have increased. The industry recorded high export-growth figures to Denmark, Portugal, Russia, Slovakia and Switzerland, where the

KLER:

59

value increased between 12 and 44 percent. On the other hand, exports decreased to countries such as Canada, Italy, Spain, Sweden and the United States, where they dropped between 13 and 28 percent.

Biggest partners

The biggest buyer of Polish furniture is Germany, where products worth E2.5 billion are exported every year, the Polish Chamber of Commerce of Furniture Manufacturers (OIGPM) reports. This accounts for a full 39 percent of the entire value of Polish furniture exports. France accounts for some 9 percent. Other European countries keen to buy Polish furniture include the Czech Republic, the Netherlands, Sweden and the UK. Upholstered furniture and dining room furniture are the most popular items among foreign buyers. v

Major furnture players

Today KLER is a company with a well-established position in the domestic and international market. Around the world the company sells its products in a chain of showrooms and by working with franchise partners. Every year the KLER brand reaches new countries and opens new retail stores. Outside of Poland KLER has a network of firms that it cooperates with in Canada, Croatia, the Czech Republic, Denmark, Estonia, France, Hungary, Latvia, Lithuania, the Netherlands, Romania, Russia, Spain, and Ukraine. KLER’s products are recognized in most European countries, as well as Israel, Japan, Kazakhstan, Moldova and the United States. VOX: The MEBLE VOX furniture company is another that exports its products to the world. VOX has been operating since 1989. Its furniture brand is known in the market for original solutions in interior design. The company has its special section of furniture designed specifically for the children’s rooms called Baby VOX.

Since the mid-1990s VOX has been one of the leaders in exports to European markets. It cooperates with the world’s largest manufacturers of children’s furniture. The company has a well-developed network of VOX furniture stores. It currently has 112 stores in Poland and 40 abroad, including in Berlin, Kiev, Prague, Riga and Vilnius. VOX furniture products are also exported to dozens of countries in Europe and the United States. NOWY STYL: Another Polish company present outside Poland is Nowy Styl from Krosno, southeastern Poland. The company founded in 1992, strives to create comprehensive solutions – chairs, furniture and floors that work in the interiors and spaces around the world. Nowy Styl is present on six continents. It has company departments located in 12 countries around the world, and it exports products to nearly 60 countries. Nowy Styl prides itself on its innovation and its environmentally friendly production. v


Forged in fire Poland’s metals industry is showing its mettle, despite a difficult and highly competitive global market

by Beata Socha

H

eavy metals is one of the most competitive industries in the world, where you have to either learn to swim with the big fish or make room for one. Polish metals producers seem well adjusted in this dog-eat-dog business, with increasing production coming from Asian giants, and look for ways of gaining a competitive edge through acquisitions and innovation.

The Polish heavy metals sector continues to supply many developing countries with metals and metal products, the export of which currently account for approximately 12 percent of total Polish sales to other countries. Despite a significant slowdown in Poland’s export growth in 2012, mostly attributed to another wave of global crisis, iron and steel are gaining ground abroad. After the third quarter of 2012 the trade balance for metals posted a surplus of zł.530 million as op-

posed to a deficit of zł.470 million a year earlier. Iron, cast iron and steel exports grew most rapidly in the first three quarters of 2012 – by 7.6 percent. Copper exports, however, after a stellar year in 2011, lost momentum and fell by 7 percent in the first nine months of 2012.

Copper and silver still ahead of the game

Last year was a difficult one for all heavy metals companies. With declining demand for copper on global markets on the one hand and steep tax hikes on copper and silver mining introduced in 2012 on the other, the world’s eighth-largest copper producer KGHM Polska Miedź saw a 66 percent drop in profits, from record-high zł.11 billion in 2011 to zł.4.8 billion.


sector analysis: heavy metals

Metals exports breakdown in 2011 Articles of cast iron and steel 25%

29% Iron, cast iron, steel Articles of cast iron and steel

25%

29%

Safety in numbers

Despite less favorable results and short-term projections, which the company blames partly on Poland’s new mining tax, KGHM is not relenting in its pursuit of global acquisitions. The Polish copper giant bought Canadian rival Quadra FNX in 2012 for some zł.9.5 billion. The transaction included the acquisition of a controlling stake in the Sierra Gorda mine, where KGHM plans to start operations in 2014.

Ingots and semiproducts

17%

Flat products 55%

20%

20%

Other

Despite unfavorable changes in the market, or maybe because of them, the Polish copper and silver giant decided to look for ways of growth in new technological solutions and more than doubled its R&D expenditure, particularly on mining solutions. In addition to its own financing, the company has received substantial backing from state funds, particularly on research on increasing safety and looking for new ways to

In a statement the company published in February 2013, the company announced its plans to produce 1,075 tons of sil-200 ver in 2013. The more, the better, it seems, as experts project silver prices will continue to rise. In fact, with growing in150 dustrial consumption of silver, its prices may rocket this year.200

152.8

ppliers.pl

Total €19.1 billion

15.99

12

12

20

12

0.86

97.9

Q2

Q1

20 12

20 12

20 12

20 11

Source: Polityka

Q4

20 11

Q3

20 11

Q2

20 11

0.64

Q1

20 10

20 10

Q4

Q2

Q1

20 10

GK Alchemia

Q2

11

20

20

Q1

11

Q4

11

20

20

11

GK Stalprodukt

70

Q2

10

20

20

Q4

Q1

10

1.38

10

3.17

GK Impexmetal

97.9

103.1

101.1

20

108.7

Grupa Can-Pack 20

10 20

121.8

116.3

7.13

Q2

09

20

Q1

53

09

61.0

56.0

20

37

Q4

13

62.8

103.1

101.1

ArcelorMittal

20

5

123.2

KGHM

96.0

137.4

108.7

Revenue from exports (in zł. billion)

Q3

134.1

126.7

61.0

56.0

09

In order to improve its competitiveness, KGHM has slated some zł.3 billion for direct investments in 2013, of which about zł.2.47 billion will be spent on machinery, equipment 0 and other tangibles, and about zł.523 million on capital investment.

3

20

0 50

62.8

20 09

EU

With growing competition from global manufacturers unfavorable tax regulations, Poland’s biggest metals producers have to look for other ways of cutting costs and are 50 100 studying the latest scientific and technological innovations to make their competitive edge sharper.

Company

152.8

Q3

Rank on top 10096.0 Polish exporters list

Q3

Top134.1dogs 137.4 126.7 121.8 Poland’s biggest metals 123.2 exporters116.3 in 2011

Q1

Non-EU N

Pipes and tubes Source: Ministry of Finance

In addition to a strong presence in world copper industry, KGHM can boast the top spot on the list of biggest players in silver production. It produces over 1,000 tons of silver annually, which accounts for 5.3 percent of global silver output. It manufactures high-quality, 99.99 percent pure silver in the form of bars and grains. The main buyers of the silver produced by KGHM are the UK, the US and Belgium.

20 09

EU

Other

55%

Q3

Insatiable hunger for silver

Pipes and tubes Ingots and semiproducts

Q1

Non-EU N

Flat products Long products

100 and150

Total €19.1 billion

ppliers.pl

6%

Natural selection promotes innovation

rts,

ts,

17%

20 09

Czech Republic

Long products 2%

Q4

United Kingdom

2%

6%

09

Czech Republic

Steel exports breakdown in 2011

20

United Kingdom

Source: Ministry of Economy

Q3

Value of exports

Other metals

25%

20 09

Percentage of total exports

Source: AutomotiveSuppliers.pl, Eurostat Source: AutomotiveSuppliers.pl, Eurostat

Value of exports

21%

Q2

Percentage of total exports sh automotive exports

In 2013 the company plans to produce 425,000 tons of copper concentrate and 548,000 tons of electrolytic copper. The company sells its copper in the form of copper wire rod, used for manufacturing cables and wires, refined copper and round billets.

Other metals Copper

25%

Q2

sh automotive exports

21%

Q3

Polish largest copper miner had copper reserves of some 40 million metric tons in September 2012, both in its Polish and foreign deposits located in Chile, Canada, Greenland, and the US. With its ambitious expansion projects it wants to increase its base by some 17 million tons. In terms of output, the company is targeting 700,000 tons by 2018, most of which will be sold outside Poland.

Copper Iron, cast iron, steel

Q3

The company has also significantly reduced its revenue expectations for 2013, currently forecast at zł.18.9 billion, down from zł.20.63 billion for 2012. Still, state-owned KGHM remains one of the top Polish exporters with some zł.16 billion in annual revenue from sales abroad.

61

20 10

Made in Poland 2013


62

sector analysis: heavy metals

Made in Poland 2013

extract difficult deposits. KGHM cooperates with a number of technological universities, like AGH University of Science and Technology, research institutes such as the Polish Academy of Sciences and R&D centers and is working towards intensifying production, lowering costs, diversifying its products and minimizing impact on the environment. The company won three major awards in 2012 for its advancements in mining and production technology, including Złoty Laur Innowacyjności (Gold Laurel for Innovativeness) in the “mining and metallurgy” category.

Steel exports – heavy hitters under pressure

In addition to copper and silver, Poland remains one of the world’s top manufacturers of steel and steel products. In 2011 the volume of steel exports was at 4.9 million tons and was 15 percent higher than in the previous year. About 88 percent of the total volume of Polish exports went to EU countries. Apart from EU members, Poland exports mainly to Ukraine – 14 percent of Poland’s non-EU exports volume went there and to Russia with 13 percent. Poland’s steel industry is currently undergoing a significant change in its workforce structure. After the initial crisis wave of 2008, the sector’s workforce was significantly reduced from over 29,000 in 2008 to a little over 25,000 in 2010. In 2011 em-

Other players Here are some of the other significant players in Poland’s metals industry Can-Pack The group comprises several producers of aluminum beverage cans, steel food cans, steel chemical containers and glass packaging. The company has been developing rapidly in recent years with its exports rising to zł.3.17 billion in 2011 from a zł.2.3 billion a year earlier. It produces beverage cans in several European countries as well as in Morocco, India and the United Arab Emirates. In 2012 the company added to its portfolio a new manufacturing plant in Finland. GK Impexmetal The Warsaw-based and WSE-listed non-ferrous metals producer deals mainly in aluminum, but also in copper, copper alloys, lead, silver, steel and zinc. It’s been exporting metals for over 50 years; since 1970s it has traded on London Metals Exchange. The company has extensive operations worldwide, maintaining close relationships with some 270 foreign part-

ners and some 1,120 Polish firms. GK Stalprodukt The WSE-listed steel producer from Bochnia, in southern Poland, specializes in exports of highly processed steel products such as transformer electrical sheets, coldformed shapes or toroidal cores. The company has its own steel products distribution network with offices and storage facilities in over a dozen Polish cities. GK Alchemia The conglomerate comprises six subsidiaries, including steelworks and research laboratories and produces a variety of steel products such as: seamless pipes for power engineering, oil and gas transit, as well as mining; bulb flats, equal-leg angles, round bars, rolled tires and rings and forged bars for machine-building, shipbuilding and automotive industries. In 2010 as much as 55 percent of revenue came from exports, more than a half of which from EU countries. v


++BAR GRA Good times a 6%

2%

Metals export Long products

Made in Poland 2013

sector analysis: heavy metals 17%

Flat products

e exports

Ingots and semiproducts

of total exports

cialist monthly Nowy PrzemysłOther (New Industry) for the most interesting IT innovations in industry.

According to the Polish Steel Association (HIPH), the country’s steel industry has significantly reduced its blue-collar workforce in the past five years, while at the same time the demand for highly qualified and specialized workers rose due to large-scale modernization in the industry.

The situation in the steel sector is constantly challenging. Looking ahead, market conditions remain tough, especially in Europe, and ArcelorMittal’s spokesperson Sylwia Winiarek and added that in such hard times “staying on the cutting edge of innovations in the steel industry is crucial.” v

Tough times call for more innovation

ion

152.8

150

137.4

134.1

126.7

123.2

121.8

116.3

108.7

96.0

100 62.8

103.1

101.1

97.9

61.0

56.0

50

12 20

20

12

Q3

20

12

Q2

11

Q1

11 20

20 Q4

11

Q3

11 20

20 Q2

10

Q1

10 20

20 Q4

10

Q3

10 20

20 Q2

09

Q1

09 20

20 Q4

09

Q3

20

09

0 20

In 2011 the company was awarded the title “Najciekawsze z Najlepszych” (“The most interesting among the best”) granted by spe-

200

Q2

In 2012 the ArcelorMittal Group spent $285 million on R&D projects and plans to invest a total of zł.220 million in its Kraków plant this year.

Good times are over Metals exports dynamic from Q1 2009 to Q3 2012

Q1

Source: AutomotiveSuppliers.pl, Eurostat

EU

Pipes and tubes

ployment rose slightly, however last year brought another wave of redundancies in the steel business.

ArcelorMittal, Poland’s market leader in steel production with over 70 percent of Polish industry’s steel production capacity, had to lay off some 1,000 workers in 2012. “Despite the steel industry’s difficult economic situation we have not given up on investment projects,” Jacek Woliński, Kraków unit director at ArcelorMittal Poland, told reporters.

Non-EU N

55%

20%

orts

Czech Republic

63

Source: Ministry of Economy

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

2009 2009 2009 2009 2010 2010 2010 2010 2011 2011 2011 2011 2012 2012 2012

Source: Minis


sector analysis: pharmaceuticals

64

Made in Poland 2013

Prescription for growth Poland’s pharmaceutical sector has seen rapid growth in exports in recent years, but it still has a lot of untapped potential

P

oland’s pharmaceutical industry has a strong position in European and Central Asian markets, something that has been a years-long work in progress. But since the middle of the last decade, business has increased significantly. According to industry publication Chemia i Biznes (Chemistry and Business) production of pharmaceuticals and active pharmaceutical ingredients in Poland increased by some 60 percent between 2005 and 2010. The value of that production is now estimated at zł.17.5 billion.

Polish pharmaceutical exports, meanwhile, have also been growing rapidly. Between 2005 and 2009 the average real annual growth rate of exports in terms of value amounted to 36 percent. In 2010, exports of Polish pharmaceuticals reached over zł.810 million. As a result of the introduction of a new reimbursement law, it is expected that the scale of exports will increase significantly. So there is still plenty of untapped potential. Krzysztof Jakubiak, PR manager at Warsaw-based pharmaceuticals firm Polpharma, believes that Polish companies have several avenues by which they can develop exports. For one, Poland has a long history of delivering such products to the markets of

by Marta Mardosz Central and Eastern Europe (CEE) and the Commonwealth of Independent States (CIS), since it was a supplier during communist times. That has given Polish firms a strong position that they can exploit to increase business. But Mr Jakubiak said that Poland’s accession to the EU was also favorable for exports. “It helped Polish companies gain the highest standards of production and quality,” he added.

Polpharma

Polpharma mainly operates in Central and Eastern Europe, Central Asia and the Caucasus region. It has offices in Moscow and Kiev, as well as in Kaunas, Lithuania and Almaty, Kazakhstan. The company’s strategic partners in the area of B2B, mainly in the sale of licenses, are Spain’s Farmaprojects and Turkey’s Cenovapharma. Polpharma produces a wide variety of prescription drugs used in hospitals. It specializes in the cardiology, gastroenterology and neurology sectors. Over-the-counter medications make up a significant portion of the company’s portfolio. The firm also offers nutritional supplements, medical devices and cosmetics.


Made in Poland 2013

sector analysis: pharmaceuticals

Polpharma’s products are present in around 50 countries worldwide. About 60 percent of company’s foreign sales come from the Russian market. Its sells “pharmaceutical substances” mainly to North America and European Union countries.

Adamed Group

Along with Polpharma, another leading Polish producer is Adamed Group, a pharmaceuticals and biotechnology company that is also one of the leaders in the Polish market when it comes to new-generation drugs. Since it was founded more than 25 years ago, Adamed has provided products in fields such as cardiology, psychiatry, pulmonology, gynecology and urinary tract infections. The company says that it is continuously expanding its export activities and rapidly enters new markets abroad. It currently exports to countries including Albania, Bosnia and Herzegovina, Croatia, Cyprus, the Czech Republic, Denmark, Estonia, Finland, Greece, Hungary, Kosovo, Kuwait, Latvia, Lithuania, Montenegro, Portugal, Romania, Slovakia, Spain, Turkey and Ukraine. Apart from Poland, the company has offices in Spain and Ukraine. In the Spanish market its drugs are used in the treatment of central nervous system diseases. It also sells pulmonary and gynecology medicine in Ukraine. Moreover, the company’s medical consultants work in Ukraine’s largest cities, including: Dnepropetrovsk, Donetsk, Kharkov, Lviv and Odessa. v

65

Polpharma innovates with osteoporosis drugs Recently the Polish Academy of Sciences awarded Polpharma with the Most Innovative Product award. Specifically, the award recognized Polpharma’s development and implementation of innovative technologies for the production of a series of active substances for osteoporosis drugs: alendronate sodium, risedronate sodium, zoledronic acid and ibandronate sodium. Due to the innovative technology used in producing those substances, it has become cheaper to make drugs that fight osteoporosis. It has also made such drugs more effective and safer for the environment, the company says. The innovations meant the use of environmentally harmful solvents could be eliminated, and that water and energy use could be reduced by 25-70 percent and 25-55 percent respectively. The technologies are patent protected or are awaiting patent approval, and have allowed Polpharma to become a global leader in the production of osteoporosis medicines. These products are exported to 114 customers in Europe, the US and Asia, among which are the largest manufacturers of generic drugs in the world. Osteoporosis has become one of the most common diseases in the West, as its populations age. v


sector analysis: pharmaceuticals

66

Made in Poland 2013

Exports of Polish drugs in 2009 European Union Central and Eastern Europe European Union Other countries Central and Eastern Europe Other developed coumtries Other countries Other developed coumtries

Source: Central Statistical Office

Export of the products of the Polish pharmaceutical industry (in E millions, E1 = zł.4 average) 2,000 1,500 1,000 500 0

2,000

* preliminary data

1,500 * preliminary data 1,000 2005 500

2006

2007

2008

2009

2010*

Source: Central Statistical Office

0

Adamed’s innovation programs 2005

2006

2007

2008

2009

2010*

Adamed’s research and development department has been working on three research programs since 2001. The most advanced program focuses on the invention of modern therapy applicable to the treatment of Type 2 diabetes. Its oncology R&D program focuses on the development of targeted oncology therapy, while its neuropsychiatric program works on inventing effective therapies for the treatment of schizophrenia, anxiety disorders and depression. In 2010 alone Adamed allocated zł.40 million for R&D programs. Adamed Group’s R&D programs cooperate with many scientific research centers, including the Jagiellonian University, the University of Warsaw, the Medical University of Gdańsk, the Gdańsk University of Technology, Wrocław University of Technology, the Institute of Immunology and Experimental Therapy, and the Center for FILAB pharmacokinetic studies. v

Innovations Polish pharmaceutical companies spend a large part of their profits on investment in R&D and innovation. Between 2006 and 2010 domestic pharmaceutical industry investments amounted to nearly zł.2.5 billion. These investments were largely associated 2000with the necessity to meet the growing demands of EU customers when it came to modernizing production. 1500 2000Polish It is worth noting that due to these investments, facilities are some of the most modern in the world. Such investments in innovation have helped 1000 firms adjust their medication documentation to EU1500 requirements, restructure employment, and develop coopera500 tion programs between academics and businesses. 1000

Due to the improvements, the number of patents 0 granted to the sector increased, the biotech sector 2005r 2006r 2007r 2008r 500 has seen rapid development and production has been adapted to environmental protection requirements. v 0 2005r 2006r 2007r 20


Made in Poland 2013

sector analysis: mining machinery

Gears of innovation Polish mining machinery producers are boosting their R&D spending in preparation for a global offensive

M

achinery is one of Poland’s top export goods, accounting for some 40 percent of total Polish exports, according to data from the Ministry of Economy. Its share in total exports has been growing for years – from 37 percent in 2001 to 40.5 percent in 2011.

After a really good year for Polish mining machinery producers and with the sector’s profits rising by 47 percent to some zł.399 million, not only the top two players, Kopex and Famur, but also smaller companies are looking to world markets for expansion opportunities. “Europe is the only continent where coal-based power generation capacity is being reduced. Projections from Asia, South America, Australia or Africa are far from putting a stop to investing in this energy source,” said Silesia-based Famur’s vice president, Ireneusz Tomecki. According to Mr Tomecki, mining will continue to grow, not only in countries relying on coal as the primary source of power, but also in other countries looking to make profits from selling to the biggest net importers of coal. China and

by Beata Socha India alone plan to install units with power-generating capacity of 300GW by 2016.

Number one in mining solutions

Kopex is Poland’s market leader in producing machinery for hard coal mining. Its gross profit from sales rose to zł.411 million in 2012 from zł.392 million in 2011. The company’s main focus is mining equipment and machinery. Its strategy for 2013-2017 projects as much as 89 percent of total sales to come from its mining segment.

The Silesia-based machinery producer is also Poland’s frontrunner in exporting mining machines. With zł.685 million in revenue from exports, it was placed 65th in the 2011 Top 100 Polish exporters ranking prepared by weekly Polityka. The company’s main export goods and services are highlyspecialized machines such as drilling vertical and horizontal mining shafts and delivering mines ready for operation. It also provides specialist electrical and anti-explosive systems for mining.

67


68

sector analysis: mining machinery

R&D for mining To help Polish companies in their conquests, Polish R&D centers provide them with expertise and innovativeness. The Institute of Innovative Technologies EMAG is an R&D organization involved in the development of state-ofthe-art equipment, systems and technologies. It carries out R&D projects as well as provides expertise on electrical engineering, automation, telecommunications, information technology, sustainable consumption of fuels and energy, and environmental protection. EMAG is also active in providing security systems, natural hazards monitoring solutions, as well as systems for automation and measurement of coal quality parameters. Institute of Mining Technology KOMAG is an R&D center specializing in scientific projects in minerals mining and processing as well as environment protection and work safety. It provides solutions ready for practical implementation in the mining industry and looks for ways of disseminating innovation in other technical sciences. The Research and Supervisory Centre of Underground Mining CBiDGP carries out technical analyses, expert assessments of machinery, equipment, and electric power grids as well as natural hazards analyses, particularly methane-related ones. v

Sharing Polish mining know-how with the rest of the world

Its global presence has a long tradition, too. It started cooperation with Russia as far back as the 1960s, first importing

Made in Poland 2013

Russian shearer loaders, powered roof supports and longwall systems. The company quickly adopted Russian know-how and started producing shearer loaders and hydraulic control systems, thus shifting from an importer to an exporter of mining solutions. Kopex wasn’t afraid of venturing even further. Some 35 years ago started selling its machinery to China, and the company is still reaping the rewards of its pioneering endeavors: China remains its biggest client for mining solutions. Argentina also became one of Kopex’s export destinations over 30 years ago. The company not only built a coal mine in Rio Turbio, Argentina, in 1981, but also provided consulting in terms of the mine’s structure, its equipment and ventilation systems.

Going global with innovation

Kopex is looking to join the lead on global markets by gradually shifting its focus to exporting innovative solutions and services such as aftermarket service. In 2011 the exports of underground mining equipment constituted 34.5 percent of the company’s total sales, while exports of technological solutions accounted for as much as 53.8 of total production.

In the company’s latest strategy document, published in March 2013, Kopex’s CEO Andrzej Jagiełło emphasized how important innovation and R&D are to the firm. “Our goal is to transform Kopex into a modern, innovative and global business, to shift its focus from production to a world class expert on coal and other minerals mining,” said Mr Jagiełło. It also wants to reorganize its sales structure and expand its product portfolio by creating a subsidiary responsible for reaching clients in Europe, Asia, Africa, Russia, China and Americas. It will no longer divide its operations into domestic and foreign, either. As coal mining is expanding predominantly in emerging markets, the company will channel its energy there.


Made in Poland 2013

sector analysis: mining machinery

The company’s strategy projects that in 2017, 25 percent of the group’s total revenue will come from Australia and South Asia, 24 percent from Europe, 20 percent from China, 14 percent from Russia and its neighbors, 10 percent from Africa and 7 percent from the markets of both Americas.

Number two on the rise

Last year was particularly good for Poland’s second-largest mining machinery supplier, Famur. Its consolidated sales revenues were zł.1.47 billion, 59 percent higher than in 2011. Net operational profit amounted to zł.349.2 million.

In view of Poland’s contracting mining industry, the company is increasingly interested in global markets. In 2012 exports generated 29 percent of the group’s total revenue. After three quarters of 2012 sales abroad brought in zł.362 million, which corresponds to a 254 percent increase in comparison with the same period in 2011. Apart from countries in the EU, Famur delivers its machines and solutions to Russia, Mexico, Kazakhstan, Ukraine, India, Indonesia and Argentina. Among its recent foreign contracts was the delivery to Russia’s Bajkaimskaja mine of the first complete Polish mining system for coal deposits over five meters thick. The company plans to continue global expansion in 2013, mainly of its own innovative technologies. “We have observed a trend that both Polish and foreign companies are putting more emphasis on quality, safety and efficiency of mining machinery,” Famur’s CEO Waldemar Łaski told Polish daily Rzeczpospolita.

Know-how waiting for a buyer

The two giants are not the only companies investing in innovative mining technologies. Smaller players also have a few aces up their sleeves.

69

Pszczyna-based mining machinery producer Patentus was among 70 companies who received subsidies from the EU’s 2007-2013 “Innovative Economy” program for implementing an invention. The mining equipment manufacturer was granted zł.7.59 million for an innovative power unit for a conveyor. The invention comprised novel solutions for sensor placement (for temperature and vibration), diagnostic and cooling systems to ensure uninterrupted operations. The company plans on selling the cutting-edge solution in China. “We are currently in talks on applying [this solution] in conjunction with our partner’s equipment already present in that market,” Patentus’ president Józef Duda said. The company is also looking to expand to other areas, such as energy, rail and automotive industries.

Polish market too small

One thing is certain, with Polish mining accounting for a mere 1 percent of total hard coal extraction worldwide, looking for clients in emerging markets is the way to go for coal mining machines and solutions providers. FTT Wolbrom, based in southern Poland is already selling 60 percent of its conveyor belts to its partners in 23 countries. Mining automation, control mechanisms and monitoring systems provider Carboautomatyka, from the Silesian city of Tychy, has ventured as far as Russia, Vietnam, Argentina and Bosnia and Herzegovina, while power units producer Damel, also from Silesia, is currently preparing to expand to Kazakhstan. v


50 largest exporters

70

Made in Poland 2013

Rank

Poland’s 50 Largest Exporters (2011) Company

1

PKN Orlen SA

2

Fiat Auto Poland SA

3

KGHM Polska Miedź SA

Sector

Revenues from export in 2011 (in zł. thousands)

Raw materials and fuel

34,260,216

ul. Chemików 7, 09-411 Płock tel: +48 24 365-0000 fax: +48 24 365-4040

zarzad@orlen.pl www.orlen.pl

Automotive

16,302,785

Al. Wyścigowa 6, 02-681 Warsaw tel: +48 22 607-4732

www.fiat.pl www.fiatgroup.pl

15,988,363

ul. M. Skłodowskiej-Curie 48, 59-301 Lubin tel: +48 76 747-8200 fax: +48 76 747-8500

ir@kghm.pl www.kghm.pl

Automotive

9,642,458

ul. Warszawska 349, 61-060 Poznań tel: +48 61 876-1781 fax: +48 61 876-1473

www.volkswagen-poznan.pl

Metals

7,132,453

Al. Józefa Piłsudskiego 92, 41-308 Dąbrowa Górnicza tel: +48 32 776-6666 fax: +48 32 776-8200

www.arcelormittal.com/poland

Raw materials and fuel

6,569,423

ul. Elbląska 135, 80-718 Gdańsk tel: +48 58 326-4300 fax: +48 58 301-8838

lotos@grupalotos.pl www.lotos.pl

5,746,303

ul. LG Electronics 7, 06-500 Mława tel: +48 23 654-7404 fax: +48 23 654-3259

pl.lge.com

Raw materials and fuel

3,930,040

Aleja Jana Pawła II 4, 44-330 Jastrzębie-Zdrój tel: +48 32 756-4113 fax: +48 32 476-2671

www.jsw.pl

Raw materials and fuel

Address / phone / fax

E-mail/website

4

Volkswagen Poznań Sp. z o.o.

5

ArcelorMittal Poland SA

6

GK Grupy Lotos SA

7

LG Electronics Mława Sp. z o.o.

8

GK Jastrzębska Spółka Węglowa SA

9

LG Electronics Wrocław Sp. z o.o.

Electrical and electronic goods

3,884,583

ul. LG Electronics 1-2, 55-040 Biskupice Podgórne tel: +48 71 792-9400 fax: +48 71 792-9405

pl.lge.com

10 Philips Lighting Poland SA

Electrical and electronic goods

3,782,581

ul. Kossaka 150, 64-920 Piła tel: +48 67 351-3000

www.lighting.philips.pl

3,353,860

ul. Grunwaldzka 189, 60-322 Poznań tel: +48 61 860-1200 fax: +48 61 867-5717

www.gsk.com.pl

Automotive

3,314,992

ul. Spółdzielcza 4, 05-600 Grójec tel: +48 48 665-0113 fax: +48 48 665-0303

www.faurecia.pl

Metals

3,165,232

ul. Jasnogórska 1, 31-358 Kraków tel: +48 12 662-3403 fax: +48 12 662-3419

canpack@canpack.eu www.canpack.eu

GK GlaxoSmithKline 11 Pharmaceuticals SA

12 Faurecia w Polsce

13 Grupa Can-Pack SA

Electrical and electronic goods

Pharmaceuticals and costmetics


Made in Poland 2013

50 largest exporters

71

Poland’s 50 Largest Exporters (2011) Revenues from export in 2011 (in zł. thousands)

Automotive

3,064,015

ul. Strefowa 1, 59-101 Polkowice tel: +48 76 848-3000 fax: +48 76 848-3400

vwmp@vwmp.pl www.vwmp.com.pl

15 Grupa Valeo

Automotive

2,807,333

ul. Przemysłowa 3, 32-050 Skawina tel: +48 12 299-8000 fax: +48 12 299 80 04

valeo@valeo.com www.valeo.pl

16 PLL LOT SA

Transport and logistics

2,800,996

ul. 17 Stycznia 39, 03-906 Warsaw tel: +48 22 577-6111

lot_info@lot.pl www.lot.com

Chemicals

2,748,959

ul. Chemików 1, 32-600 Oświęcim tel: +48 33 844-1821 fax: +48 33 842-4218

synthosgroup.com

Electrical and electronic goods

2,666,980

Al. Jerozolimskie 183, 02-222 Warsaw tel: +48 22 572-7600 fax: +48 22 572-6600

www.bsh-group.pl

Chemicals

2,627,187

ul. Puławska 182, 02-670 Warsaw tel: +48 22 639-1000 fax: +48 22 639-1451

ciech@ciech.com www.ciech.com

2,517,866

ul. 15 Sierpnia 106, 96-500 Sochaczew tel: +48 46 863-0201 fax: +48 46 863-0096

www.boryszew.com.pl

Automotive

2,449,741

ul. Rolnicza 33, 42-200 Częstochowa tel: +48 34 343-1003 fax: +48 34 369-3430

www.trw.pl

Rank

Sector

14

Company

Volkswagen Motor Polska Sp. z o.o.

17 GK Synthos SA

18

BSH Sprzęt Gospodarstwa Domowego Sp. z o.o.

19 GK Ciech SA

20 GK Boryszew SA

21 TRW Polska Sp. z o.o.

Chemicals

Address / phone / fax

E-mail/website

22

Fiat Powertrain Polska Sp. z o.o.

Automotive

2,424,793

ul. Grazynskiego 141, 43-300 Bielsko-Biała tel: +48 33 813-2100 fax: +48 33 813-2451

www.fiat-gm-pwt.pl

23

Indesit Company Polska Sp. z o.o.

Electrical and electronic goods

2,418,523

ul. J. Dąbrowskiego 216, 93-231 Łódź tel: +48 42 645-5100 fax: +48 42 645-5191

service.pl@indesit.com www.indesit.pl

24 Electrolux Poland Sp. z o.o.

Electrical and electronic goods

2,251,815

ul. Kolejowa 5/7, 01-217 Warsaw tel: +48 22 568-9867 fax: +48 22 434-7303

www.electrolux.pl

Automotive

2,235,191

ul. Uczniowska 26, 58-306 Wałbrzych tel: +48 74 888-8000

www.toyotapl.com/walbrzych

Raw materials and fuel

2,122,700

ul. Mickiewicza 29, 40-085 Katowice tel: +48 32 258-2431 fax:+48 32 251-5453

info@weglokoks.com.pl www.weglokoks.com.pl

25

Toyota Motor Manufacturing Poland Sp. z o.o.

26 Węglokoks SA


50 largest exporters

72

Made in Poland 2013

Poland’s 50 Largest Exporters (2011) Revenues from export in 2011 (in zł. thousands)

Address / phone / fax

Electrical and electronic goods

2,030,830

ul. Wielicka 114, 30-663 Kraków tel: +48 12 652-5000 fax: +48 12 652-5156

www.tfkable.com

Pharmaceuticals and costmetics

1,944,672

ul. Stacyjna 77, 08-400 Garwolin tel: +48 25 682-8000 fax: +48 25 682-8008

www.avon.com.pl

Food

1,866,672

ul. Wiertnicza 126, 02-952 Warsaw tel: +48 22 550-5000 fax: +48 22 550-5001

ext_recepcja_pl@ferrero.com www.ferrero.pl

30 Mondi Świecie SA

Paper and wood

1,818,197

ul. Bydgoska 1, 86-100 Świecie tel: +48 52 332-1000

info.swiecie@mondigroup.com www.mondigroup.pl

31 Firma Oponiarska Dębica SA

Automotive

1,761,950

ul. 1 Maja 1, 39-200 Dębica tel: +48 14 670-2831 fax: +48 14 670-0957

www.debica.com.pl

32 Man Bus Sp. z o.o.

Automotive

1,609,449

ul. Poznańska 4, 62-080, Sady tel: +48 61 816-6301 fax: +48 61 816-6350

www.mantruckandbus.pl

1,540,272

Al. Tysiąclecia Państwa Polskiego 13, 24-110 Puławy tel: +48 81 886-3431 fax: +48 81 565-2856

zapulawy@azoty.pulawy.pl www.zapulawy.pl

anwil@anwil.pl www.anwil.pl

Rank

Sector

Company

27

Grupa Tele-Fonika Kable Sp. z o.o. S.K.A.

28

Avon Operations Polska Sp. z o.o.

29 Ferrero Polska Sp. z o.o.

33 Zakłady Azotowe Puławy SA

Chemicals

E-mail/website

34 Grupa Anwil SA

Chemicals

1,503,847

ul. Toruńska 222, 87-805 Włocławek tel: +48 54 236-3091 fax: +48 54 236-1983

35 Grupa TZMO SA

Pharmaceuticals and cosmetics

1,481,516

ul. Żółkiewskiego 20/26, 87-100 Toruń tel: +48 56 612-3900

www.tzmo.pl

Automotive

1,402,470

ul. Japońska 6, Łęg, 55-220 Jelcz-Laskowice tel: +48 71 30 20 000 fax: +48 71 30 20 001

www.toyotapl.com/jelcz-laskowice

Metals

1 375 080

ul. Łucka 7/9, 00-842 Warsaw tel: +48 22 658-6000 fax: +48 22 620-0544

info@impexmetal.com.pl www.impexmetal.com.pl

Construction

1,338,666

ul. Czackiego 15/17, 00-950 Warsaw tel: +48 22 829-7100 fax: +48 22 826-0493

kontakt@polimex-mostostal.pl www.polimex-mostostal.pl

Paper and wood

1,317,487

ul. Lotnicza 1, 82-500 Kwidzyn tel: +48 55 279-8000 fax: +48 55 279-8451

www.internationalpaper.com

36

Toyota Motor Industries Poland Sp. z o.o.

37 GK Impexmetal SA

38 GK Polimex-Mostostal SA

39

International Paper Kwidzyn Sp. z o. o.


Made in Poland 2013

50 largest exporters

73

Rank

Poland’s 50 Largest Exporters (2011)

40

Company

GK Gdańska Stocznia Remontowa SA

Sector

Revenues from export in 2011 (in zł. thousands)

Shipyards

1,306,375

ul. Na Ostrowiu 1, 80-958 Gdańsk tel: +48 58 307-2222

remontowa@remontowa.com.pl www.remontowa.com.pl

azoty@azoty.tarnow.pl www.azoty.tarnow.pl

Address / phone / fax

E-mail/website

Zakłady Azotowe w Tarnowie41 Mościcach SA

Chemicals

1,292,126

ul. E. Kwiatkowskiego 8, 33-101 Tarnów tel: +48 14 633-0781 fax: +48 14 633-0718

42 Technicolor Polska Sp. z o.o.

Electrical and electronic goods

1,276,667

ul. Julianowska 65A, 05-500 Piaseczno tel: +48 22 702-7879 fax: +48 22 702-7879

techicolor.com

43 ABB Sp. z o.o.

Electrical and electronic goods

1,155,255

ul. Żegańska 1, 04-713 Warsaw tel: +48 22 220-2000 fax: +48 22 220-2031

www.abb.pl

Automotive

1,134,314

ul. Stolarska 23, 34-300 Żywiec tel: +48 33 866-6403 fax: +48 33 866-6407

info.zywiec2@hutchinson.com.pl www.hutchinson.com.pl

Automotive

1,083,484

ul. Strefowa 2, 59-101 Polkowice tel: +48 76 726-7000 fax: +48 76 726-7070

www.sitech.com.pl

Chemicals

1,064,338

ul. Kuźnicka 1, 72-010 Police tel.: +48 91 317-1717 fax: +48 91 317-3603

zchpolice.grupaazoty.com

Construction

1,014,950

Al. Solidarności 36, 25-323 Kielce tel: +48 41 315-8004 fax: +48 41 315-8006

www.rovese.com

1,011,311

ul. Marcina Kasprzaka 25, 01-224 Warsaw tel: +48 22 589-4555 fax: +48 22 691-8273

www.pgnig.pl

ul. Słowackiego 33, 43-502 Czechowice-Dziedzice tel: +48 32 324-1200 fax: +48 32 324-1290

www.trw.pl

ul. Mostowa 31 A, 47-220 Kędzierzyn-Koźle tel: +48 77 481-2000

zak@zak.com.pl www.zak.eu

44 Hutchinson Poland Sp. z o.o.

45 Sitech Sp. z o.o.

46

Zakłady Chemiczne “Police” SA

47 Centrala Rovese SA

48 GK PGNiG SA

Raw materials and fuel

TRW Steering Systems 49 Poland Sp. z o.o.

Automotive

1,006,421

50 ZAK SA

Chemicals

961,758

Reprinted with permission of Polityka


Made in Poland 2012

partners

Strategic partner The Polish Agency for Enterprise Development (PARP) is a government agency that has been providing support to entrepreneurs in the implementation of competitive and innovative projects for over 12 years. The primary objective of our activity is to develop the sector of small and medium-sized enterprises in Poland. To support entrepreneurs, PARP uses the funds from the state budget and European Funds. In the 2007-2013 financial perspective, the Agency is responsible for the implementation of measures under three Operational Programmes: Innovative Economy, Human Capital and Development of Eastern Poland. One of the key tasks of the Polish Agency for Enterprise Development is to support exports, including strengthening the competitive position of Polish enterprises on foreign markets and making it easier for small and medium-sized enterprises to get in touch with foreign companies in their business. To that end, PARP offers Polish SMEs an opportunity to participate in economic missions organized around the world, cooperative exchanges and fair events. Furthermore, Enterprise Europe Network operating under PARP provides an opportunity for the entrepreneurs seeking foreign partners to publish their company profile in the Cooperation Offers’ Database accessible by approximately 600 network units in Europe and around the world. Moreover, Enterprise Europe Network offers comprehensive services covering information, training and counseling measures, mainly in the field of European Union law and policies, business activity in Poland and abroad, access to sources of financing, internationalization of enterprises, transfer of technologies and participation in EU framework programme. www.parp.gov.pl biuro@parp.gov.pl www.een.org.pl coordinator_cpbsn@parp.gov.pl

75

ment, innovation and a concern for the natural environment www.grupaazoty.com kontakt@grupaazoty.com With over 60 years of experience and having produced over 7,400 helicopters, PZLŚwidnik is the only Polish OEM with the capabilities to undertake helicopter design, research & development, system integration, manufacturing, support, training and upgrades. The company’s range of rotorcrafts can perform the complete spectrum of commercial and government roles. PZL-Świdnik is also a major industrial partner in the aerospace market supplying aerostructures to many of the world’s leading helicopter and aircraft manufacturers. PZL-Świdnik has been an AgustaWestland company since 2010. www.pzl.swidnik.pl swidnik@agustawestland.com With more than 45 years of experience, PATPOL provides a full range of intellectual property services in Poland and the EU to clients from all over the world. PATPOL’s practice is entirely dedicated to patents, trademarks, designs, utility models, domain names and IP-related disciplines. In addition, its professional staff of patent, trademark and design attorneys, lawyers, engineers and translators are technically trained subject matter experts in various fields of technology, as well as experts in IP law. PATPOL’s services include: • protection of patents, trademarks, utility models, designs and domain names • searches and opinions on patent, trademark and industrial design availability, registrability or validity • monitoring of patents and trademarks • IP litigation in the administrative, civil and criminal courts

COMMERCIAL PARTNERS

• border measures, anti-counterfeiting and enforcement of IP rights

Grupa Azoty is the largest Polish chemical companies and one of the largest in Europe. The Group can offer its customers a diverse product portfolio – from mineral fertilizers and engineering plastics through OXO alcohols and plasticizers to pigments.

• unfair competition cases

The new strategy of Grupa Azoty guarantees a strong market position both in Poland and abroad. Grupa Azoty is ranked fifth among European producers of polyamides and is the only producer of polyacetal (POM), OXO and titanium white in the country. Group is also one of the largest producers of mineral fertilizers in Europe.

www.patpol.pl

The Company’s future is built upon principles of develop-

We represent clients before the Polish Patent Office, European Patent Office, Office of Harmonization for the Internal Market (OHIM), World Intellectual Property Organization (WIPO), Polish Courts and Customs Authority. patpol@patpol.com.pl POLSERVICE is one of the leading patent and trademark attorney offices in Poland. The firm has operated in the


short logotype

partners

76

market since 1964. POLSERVICE provides a variety of services in all fields of industrial and intellectual property protection for companies and individual clients.horizontal logotype Main fields of activity include: • inventions, utility models and industrial designs

Made in Poland 2012

The Belgian Business Chamber (BBC) The Belgian Business Chamber (BBC), which celebrated its 20th anniversary in 2012, now has about one hundred members – most of whom are Belgian companies conducting business in Poland as well as other companies interested in co-operation with Belgian partners.

•n  ew plant varieties

The chamber represents a powerful lever for business interaction, not only within the Belgian community but also with potential Polish partners and relevant authorities. The BBC promotes its members in the Polish market and organizes many business and social events.

• c opyright and unfair competition

www.belgium.pl

• l icense agreements and exclusive rights transfer

bbc@belgium.pl

• t rademarks, trade names, geographical indications • i nternet domain names

vertical logotype • l itigation and dispute resolution

• a nti-counterfeiting and anti-piracy actions POLSERVICE employs 43 patent and trademark attorneys specialized in various areas of technology, law and economy and a team of experienced lawyers and translators. The firm represents clients before the Polish Patent Office, Polish common courts, administrative and arbitration courts, prosecution and customs offices, as well as before the European Patent Office and the Office for Harmonization in the Internal Market. Thanks to wide international contacts, POLSERVICE is able to assist clients in obtaining and enforcing intellectual property rights in other countries. The firm represents more than 2650 clients from over 70 countries.

The British Polish Chamber of Commerce (BPCC) is an independent, not-for-profit organization, which assists in the development of British-Polish business links. The current membership represents the broadest range of industrial and commercial sector. The BPCC holds around 75 events annually and partners in over 200 across the UK and Polish regions. The BPCC has established Policy Groups to promote best business practice – often transferring knowledge and experience from the UK – and to encourage structural and regulatory reforms in Poland. The BPCC has promoted business, trade and cultural relations between Poland and the UK since 1992. www.bpcc.org.pl info@bpcc.org.pl

www.polservice.com.pl ip@polservice.com.pl

CHAMBERS OF COMMERCE PARTNERS The American Chamber of Commerce in Poland (AmCham) is a leading business organization that strives to serve and promote over 330 companies as an important voice of business in Poland; to foster a positive relationship with the government and promote the free market spirit for the benefit of the Polish business environment. AmCham achieves its goals through a number of activities, including monthly meetings and business mixers. At present there are 19 committees the represent all aspects of the economy, from employee & labor relations, to IT, outsourcing, taxation, real estate and unconventional gas. And to promote its values and know-how AmCham runs its own magazine, American Investor. www.amcham.pl office@amcham.com.pl

The Polish – Chinese Chamber of Commerce (PCHIG) is the only bilateral chamber which supports Polish companies in the Chinese market. Through our offices in China, we provide advice in areas such as finding reliable suppliers from China, entering the Chinese market, as well as brand and company registration in China. If you want to begin importing from China, or want to begin trading with China, or if you have difficulties in trading with China, our experts are ready to help. www.pchig.pl pchig@pchig.pl The French Chamber of Commerce and Industry in Poland (CCIFP) is an employers’ association bringing together over 400 French and Polish firms. For 19 years CCIFP has been working for the interests of Polish and French investors by acting as a platform for networking and for the exchange of business experiences and best practices between companies. In 2012 CCIFP organized around 100 events such as business mixers, confer-


Made in Poland 2012

PARTNERS

ences, seminars, meetings with influential politicians and economists, bringing together nearly 6,000 participants. www.ccifp.pl ccifp@ccifp.pl The German-Polish Chamber of Industry and Commerce (AHK Poland) is the largest bilateral organization of economic self-governance in Poland and one of the most influential German chambers of industry and commerce (AHKs) in the world. It represents around 1,000 member companies and has been working to develop German-Polish relations for 18 years. The organization’s offer includes professional consulting for German and Polish companies, facilitation of contacts between them and finding of trustworthy business partners, as well as market analysis and help in setting up new companies abroad.

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The Polish Chamber of Commerce for Importers, Exporters and Cooperation (Polska Izba Gospodarcza Importerów, Eksporterów i Kooperacji) is an independent organization that was initiated by the most active companies in the region of Wielkopolska. The chamber brings together Polish and foreign companies from different industries and supports the development of small and medium-sized enterprises through the provision of comprehensive information, training and advisory services. These include assisting members in developing business contacts at home and abroad, introducing our members’ products and services to different foreign markets, organizing group tours to international fairs and exhibitions, organizing business missions and meetings, and providing information about funds and grants for business development. www.pcc.org.pl izba@pcc.org.pl

www.ahk.pl info@ahk.pl

The Polish-Indian Chamber of Commerce is a business organization which assists in the development of Polish-Indian business links. It has been working for the interest of Polish and Indian employers by acting as a platform for networking and for the exchange of business experiences and best practices between companies from both countries. The Chamber achieves its goal through a number of activities including conferences on doing business in India and business missions. It also assists its members and non-members in searching for business partners and in providing business information and consulting services. www.piig-poland.org

The Scandinavian-Polish Chamber of Commerce (SPCC) is one of the biggest bilateral chambers in Poland; currently it has more than 350 members. It was established in 2004 as a merger of Danish, Finnish, Swedish and Norwegian business organizations. These are all now National Sections of the SPCC. The main office is located in Warsaw and regional representatives are active in Poznań, Tri-city, Kraków, Szczecin and Wrocław. SPCC offers its members a wide range of activities, such as networking business mixers, seminars, thematic branch committees, conferences and breakfast meetings with renowned personalities from the political and economic worlds. Membership of SPCC offers not only networking opportunities with an elite group of high-performing managers of Nordic companies, but is also a way of finding inspiration for everyone who would like to expand their own business. www.spcc.pl spcc@spcc.pl

biuro@piig-poland.org The Netherlands-Polish Chamber of Commerce’s mission is to promote business contacts between our members and between the Netherlands and Poland through events, networking meetings, our magazine, Bulletin, and our website. The chamber’s main activities are monthly business drinks, educational services, business breakfasts and lunches and regular meetings with ministers and senior government officials. An interest in the Netherlands is all that is required to join. www.nlchamber.com.pl office@nlchamber.com.pl

The Polish-Spanish Chamber of Commerce (PHIG) was created in 2000 on the initiative of Polish and Spanish companies. Its key aim is to encourage cooperation between enterprises from the two countries, as well as to help protect and represent their interests. PHIG assists its members in searching for business partners, and in providing business information and consulting services. It also offers translation services and helps firms find qualified staff. www.phig.pl phig@phig.pl


partners

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INDUSTRY PARTNERS The Polish Chamber of National Defense Manufacturers (Izba Prodcentów na Rzecz Obronności Kraju) is a voluntary, self-governing organization of the Polish defense and security industry companies. It was established in 1995. PCN DM currently has approx. 135 member companies, among them are big state-owned companies, military production and repair plans, R&D institutes and many private companies as well as Polish branches of foreign companies. The Chamber represents its members in contacts with government, organizes training sessions for its members, works to help its members with increasing technical level of their products, facilitates cooperation between members as well as between members and foreign companies. PCN DM leads consortiums consisting of Polish defense companies to provide comprehensive offers to foreign partners. PCN DM represents the Polish defense industry in the European Defence Agency (as a National Point of Contact) and in the NATO Industrial Advisory Group. The Chamber has license for arms and military equipment trade issued by the Polish Ministry of Internal Affairs, ISO 9001:2009 certificate, certified Internal Control System, NATO N-Cage code. www.przemysl-obronny.pl izba@przemysl-obronny.pl The National Centre for Research and Development (NCBR) is the implementing agency of the Ministry of Science and Higher Education. When it was founded in 2007, it was the first entity of its type, created as the platform of an effective dialogue between the scientific and business communities. Moreover, the science reform adopted in 2010 gave the Centre freedom to manage its financial assets, within the scope of a strategic research programme. Since 2011 NCBR also acts as the intermediate body in three operational programmes: Human Capital, Innovative Economy and Infrastructure and Environment. With a budget of zł.4.5 billion for R&D, the Centre is the largest innovation in Poland. www.ncbir.pl sekretariat@ncbr.gov.pl

Made in Poland 2012

automotive industry lobby. We represent companies of the automotive sector, including leading car dealers, authorized service, parts and components manufacturers, distributors of garage equipment, professional organizations, certification companies, auto-industry media, and the automotive sector associations. We bring together both small and large businesses and associations in Poland. www.pim.pl sekretariat@pim.org.pl The Polish Chamber of Chemical Industry (Polska Izba Przemysłu Chemicznego) represents the chemical sector in its relations with government administration and international organizations. The main tasks of the chamber are: • activities aimed at improvement of economic conditions and the competitiveness of the chemical industry in Poland and of the chamber’s members; • support sustainable development of the chemical sector and environment protection with special emphasis on the implementation of the Responsible Care Program. • initiation and coordination of the activities of chamber’s commissions dealing with ecology, fertilizers, paints and varnishes, process safety and safety at work, transport and distribution including SQAS and SPOT as an element of ICE. • coordination of the Polish Technological Platform of Sustainable Chemistry. • cooperation with government bodies and preparing opinions to legal acts addressed towards the chemical industry. • participation in the tripartite working group. • cooperation with EU institutions and participation in public consultation as regards the chemical industry. • cooperation with the EU sector associations such as FE, EUROCHLOR and chemical industry federations such as CEFIC and ECEG. • furnishing member companies with information on the current situation of the chemical industry in the world, the status of legal proceedings as regards implementation of EU regulations in Polish law, long-term EU programs, analysis elaborated by CEFIC, etc. www.en.pipc.org.pl

www.ncbir.pl

pipc@pipc.org.pl

sekretariat@ncbr.gov.pl The Polish Chamber of the Automotive Industry (Polska Izba Motoryzacji) was established in 1994 and consists of representatives of the wider

The Polish Tourist Organisation (POT) is a national tourist institution which aims to promote Poland as an attractive travel destination. We conduct our activities in the aspect of promotion and development of Polish tourism both on a national level, as well as abroad.


Made in Poland 2012

partners

The government agency organizes national booths during biggest domestic and foreign tourist fairs, numerous promotional events, seminars and trainings, and also publishes promotional materials about Poland. The Polish Tourist Organisation participates in the development of activities of the Conferences and Congresses Bureau, which supports business travel, and we implement modern IT solutions in this sector. www.poland.travel The Polish Spirits Industry Employers’ Association (ZP PPS) is an organization bringing together the spirits industry. The main task of the organization is to take steps towards development of the spirits industry in Poland and abroad through cooperation with representatives of public authorities and social organizations. ZP PPS supports the appropriate legal and economic conditions for the development of the industry, strengthens the age-old tradition of spirits, promotes new technologies and conducts actions in the field of corporate social responsibility of the spirits industry. It also takes wide educational activities designed to increase awareness about the risks associated with the irresponsible consumption and sale of alcohol. The members of ZP PPS are: Bacardi Martini Polska, Brown Forman Polska, CEDC, Diageo Polska, Komers International, Mazurskie Miody, Nemiroff Polska, Pernod Ricard, Polmos Siedlce, Polmos Żyrardów, Polmos Warszawa, Stock Polska, Vinpol. www.pps.waw.pl biuro@pps.waw.pl

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The Patent Office of the Republic of Poland is the state administration agency responsible for the protection of industrial property in the country. Among office’s key responsibilities are granting exclusive rights and maintaining protection for industrial property objects. The granting procedure comprises receiving and processing applications filed with the aim of obtaining legal protection as well as issuing decisions concerning granting or refusal of patents, supplementary protection certificates for inventions, rights of protection for utility models and for trademarks, as well as rights in registration for industrial designs, geographical indications and topographies of integrated circuits. The Patent Office maintains registers where legally binding entries are made concerning the grant of exclusive rights and their validity. Among the responsibilities of the Patent Office is deciding in the litigation procedure, among others on invalidation or stating on the lapse of a patent. Conferences, seminars, workshops and competitions, including international events, organized by the Patent Office of the Republic of Poland provide an excellent forum for the exchange of experiences, observations and best practices functioning in other countries. www.uprp.pl


government agencies

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Made in Poland 2013

selected government agencies Name

Address

Tel. Fax

E-mail Website

Top Executive

Agency for Restructuring and Modernisation of Agriculture

ul. Poleczki 33, 02-822 Warsaw

0 800-380-084 (from domestic lines only) +48 22 318-5330

info@arimr.gov.pl www.arimr.gov.pl

Andrzej Gross

Agricultural Property Agency

ul. Dolańskiego 2, 00-215 Warsaw

+48 22 635-8009 +48 22 635-0060

anr@anr.gov.pl www.anr.gov.pl

Leszek Świętochowski

Chancellery of the Prime Minister

Al. Ujazdowskie 1/3, 00-583 Warsaw

+48 22 694-6000 +48 22 625-2637

sprm@kprm.gov.pl www.kprm.gov.pl

Jacek Cichocki

Customs Service

ul. Świętokrzyska 12, 00-916 Warsaw

0 801-470-477 (from domestic lines only) +48 33 857 6383

info.sluzbacelna@kat.mofnet.gov.pl www.mf.gov.pl/sluzba-celna

Jacek Kapica

The Office of Competition and Consumer Protection

Pl. Powstańców Warszawy 1, 00-950 Warsaw

+48 22 556-0800 +48 22 826-6125

uokik@uokik.gov.pl www.uokik.gov.pl

Małgorzata KrasnodębskaTomkiel

The Patent Office of the Republic of Poland

Al. Niepodległości 188/192, 00-950 Warsaw

+48 22 579-0000 +48 22 579-0001

informacja@uprp.pl www.uprp.pl

Alicja Adamczak

Polish Agency for Enterprise Development

ul. Pańska 81/83, 00-834 Warsaw

+48 22 432-8080 +48 22 432-8620

biuro@parp.gov.pl www.parp.gov.pl

Bożena LublińskaKasprzak

Polish Information and Foreign Investment Agency

ul. Bagatela 12, 00-585 Warsaw

+48 22 334-9800 +48 22 334-9889

post@paiz.gov.pl www.paiz.gov.pl

Sławomir Majman

Ministry of Foreign Affairs

Al. J. Ch. Szucha 23, 00-580 Warsaw

+48 22 523-9000

e-konsulat@msz.gov.pl www.msz.gov.pl

Radosław Sikorski

Ministry of Labor and Social Policy

ul. Nowogrodzka 1/3/5, 00-513 Warsaw

+48 22 661-1000 +48 22 661-1336

info@mpips.gov.pl www.mpips.gov.pl

Władysław Kosiniak-Kamysz

Ministry of Agriculture and Rural Development

ul. Wspólna 30, 00-930 Warsaw

+48 22 623-1000 +48 22 623-2750

kancelaria@minrol.gov.pl www.minrol.gov.pl

Ministry of Economy

Pl. Trzech Krzyży 3/5, 00-507 Warsaw

+48 22 693-5000 +48 22 693-4046

mg@mg.gov.pl www.mg.gov.pl

Janusz Piechociński

Ministry of Treasury

ul. Krucza 36 / Wspólna 6, 00-522 Warsaw

+48 22 695-8000 +48 22 628-0872

minister@msp.gov.pl www.msp.gov.pl

Mikołaj Budzanowski

Ministry of Regional Development

ul. Wspólna 2/4, 00-926 Warsaw

+48 22 461-3000 +48 22 461-3275

uwagi.do.mrr@mrr.gov.pl www.mrr.gov.pl

Elżbieta Bieńkowska

National Bank of Poland

ul. Świętokrzyska 11/21, 00-919 Warsaw

+48 22 653-1000 +48 22 620-8518

listy@nbp.pl www.nbp.pl

Marek Belka

Stanisław Kalemba


ISSN 2083-0645 – PLN 79 (8% VAT included)

Warsaw Business Journal’s Made in Poland 2013

Partner of publication

Made in Poland 2013  

The third edition of Warsaw Business Journal's annual guide to Polish exports and exporters