WBJ #44 2011

WBJ presents a special report on Poland’s boat building industry

The latest edition of the iPhone launches in Poland this week 5

6

WWW.WBJ.PL

10-11

PGNiG is turning the tables on Russia by buying gas from Germany

VOLUME 17, NUMBER 44 • NOVEMBER 7-13, 2011 . z∏.12.50 (VAT 8% included) . ISSN 1233 7889 INDEX-RUCH-332-127

Since 1994 . Poland’s only business weekly in English

Eroding confidence

REAL ESTATE

COURTESY OF WIKIMEDIA COMMONS

Lokale Immobilia

• Price wars • Urban revitalization • Prime plot downtown 15-18

Defending the union Poland is leading the charge for a more integrated EU defense strategy. It’s an uphill battle 12-13

In this issue News . . . . . . . . . . . . . . . . . . . . . . .2-4 Business . . . . . . . . . . . . . . . . . . . .5-7 Banking in Focus . . . . . . . . . . . . . . .8 Opinion & Analysis . . . . . . . . . . . . .9 Special Report: Boat Makers .10-11 Special Report: EU Defense . .12-13 Interview . . . . . . . . . . . . . . . . . . . .14 Lokale Immobilia . . . . . . . . . .15-18 Markets . . . . . . . . . . . . . . . . . . . . .19 The List . . . . . . . . . . . . . . . . . . .20-21 Lifestyle . . . . . . . . . . . . . . . . . . . . .22 Last Word . . . . . . . . . . . . . . . . . . . .23

Greece’s continuing drama has brought the euro to the breaking point.

What happens next?

SHUTTERSTOCK

2, 3, 9

A hero’s landing

Exit Ziobro?

Captain Tadeusz Wrona is being hailed as a hero after expertly managing an emergency landing in Warsaw last week 4

The deputy leader of Law and Justice has been forced out. Can he usurp Jaros∏aw Kaczyƒski’s leadership of the right?

3

NEWS

www.wbj.pl

George Papandreou

Greek Prime Minister George Papandreou stunned Europe and the world last week when he announced his country would hold a referendum to decide on whether or not to accept the latest bailout package it was offered and the accompanying austerity measures.

Markets reacted negatively to the news as many Greeks have already made their feelings on the austerity measures quite clear through nationwide protests and strikes.

S&P: Poland needs reform Poland’s economy will have significant growth potential if the country’s government is able to push through a difficult structural reform program, ratings agency Standard & Poor’s (S&P) wrote in a recent report.

“How well Poland can meet the immediate challenges it faces depend on the government’s political will to implement the relevant reforms, in our view,” S&P said in the report. ●

dreou’s government was still unclear.

Whatever the result of the vote, most Greek political observers agree that Mr Papandreou’s days as prime minister are numbered and that the most likely scenario is a government of national unity which would run the country until parliamentary elections could be held. This measure would be supported by the major parties in Greece’s parliament. It is not yet clear who would lead such a government.

Mr Papandreou, who was born in the US state of Minnesota in 1952, comes from a long standing political dynasty.

He is the third member of the Papandreou family to serve as the country’s prime minister following on from his grandfather George Papandreou and his father Andreas Papandreou.

Before becoming PM in 2009, he served as minister for national education and religious affairs and later minister of foreign affairs. Mr Papandreou has been leader of the Panhellenic Socialist Movement (PASOK) party since February 2004.

was the number of people on board the Boeing 767 flight which made an emergency landing at Warsaw’s Chopin Airport on November 1.

z∏.1.017 billion is the Q3 net profit of PKO BP, the best quartely result in the bank’s history.

2.9% is the new 2012 GDP growth forecast for Poland from Swiss investment bank UBS. Its previous prediction was 3.3%.

11% is the proportion of Poles that have worked abroad in the last 10 years, according to a poll by CBOS. The main hotbeds of economic migration for Poles are Germany and the UK.

Quote of the Week “This skull will not smile again.”

Jacek Kurski, a member of the European Parliament, referring to Law and Justice’s election chances following its political committee’s decision to boot him out of the party

Figures in focus

Remi Adekoya

Bricks in the wall

On WBJ.pl Arrested development?

The United Nations Development Program’s 2011 Human Development Index ranked Poland 39 out of 187 countries, which places it in the “Very High Human Development” group, along with the developed economies of the West. But Poland fares worse than the Czech Republic, Greece, the United Arab Emirates, Cyprus and Malta. Log on to WBJ.pl to find out why.

No compensation for flight delays

Pupil/teacher ratio in pre-primary and primary education in 2009, by selected EU27 countries 24.0 *Highest in EU27 **Lowest in EU27

19.2 14.4 9.6 4.8

7-9

HR CONGRESS

Event: The 14th annual “Kongres Kadry” event will examine the prospects for the development of HR in Poland. Participate in workshops, hear expert speakers, and learn from case studies.

Location: Hotel Marriott, Warsaw kongreskadry.pl

9-10

RETAIL BANKING CONGRESS

Event: This event aims to provide a platform of discussion and experience-sharing for top-level managers involved in the financial services industry in the CEE region, with a view to finding solutions to problems encountered in contemporary retail banking.

Location: Hotel Marriott, Warsaw gab.com.pl

14-16 MAPIC Event: MAPIC is a unique exhibition and conference dedicated to retail real estate. It brings together leaders from the retail real estate sector to explore the most innovative projects, forge partnerships, close deals, and stay on top of trends and innovation.

Location: Cannes, France mipim.com/mapic/

14-25 BELGIAN DAYS Event: During this year’s Belgian Days, the Belgian

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DATELINE

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Passengers whose flights did not take off on time due to last Tuesday’s emergency landing at Warsaw’s Frederic Chopin Airport are unlikely to receive compensation, reported Gazeta Wyborcza. Agnieszka Majchrzak, a spokesperson for UOKiK, said regulations do not provide for compensation in situations where delays are caused by sudden, unexpected events.

Fears of a “no” vote, followed by a Greek default on its debt and its uncontrolled bankruptcy, spread like wildfire, causing a political crisis in the euro zone.

The Greek PM was harshly criticized for his referendum idea with even his own finance minister, Evangelos Venizelos, saying the country’s membership of the euro zone “cannot depend on a referendum.”

As WBJ went to press, the outcome of a scheduled vote of no-confidence on Mr Papan-

231

hu a

According to a report in Newsweek Polska, Jan Tomaszewski, a legendary goalkeeper for the Polish national team, was registered as a communist secret agent.

Mr Tomaszewski has denied the report. “I never ratted on anyone and I was never an agent of the secret services,” Mr Tomaszewski, who was recently elected to parliament as a Law and Justice MP, told Newsweek.

Numbers in the News

a*

Tomaszewski denies spy charges

IN THE SPOTLIGHT

Lit

National Bank of Poland president Marek Belka has been appointed the new chairman of the Development Committee of the World Bank and IMF. The committee was established in 1974 to advise the boards of governors of the IMF and the World Bank on development issues and on the financial resources required to promote economic development in developing countries.

NOVEMBER 7-13, 2011

Ma lt

Belka gets World BankIMF post

COURTESY OF THE PRIME MINISTER OF GREECE / FLICKR.COM

2

Source: Eurostat

Business Chamber invites you to participate in a series of business and cultural events, including King’s Day, a seminar on innovation in business, a Belgian “Mussels & Fries” evening, and a Belgian Film Evening. belgium.pl

18-20 PROFESSIONAL INVESTOR CONFERENCE Event: This conference calls itself the secondlargest of its kind in Poland, after the “WallStreet” conference. It features workshops, presentations and discussions on investing for individual investors.

Location: Ko∏obrzeg sii.org.pl

Company index Admiral Boats ............................10 Gazprom ......................................6 PKO BP ........................................4 Âlepsk ........................................10 Globe Trade Centre....................15 PMR ............................................16 Alior Bank ....................................8 Google ..........................................8

POLBOAT....................................10

APA Wojciechowski ....................15 Hitachi Europe ............................8 Porsche ........................................6 Apple ........................................5, 8 Hochtief Development Poland ..17 Apsys Poland..............................15 HSBC ............................................6

Pracownia Uniprojekt ................17

Auchan ......................................10 IDC Polska ..................................5 Pure ............................................15 Audi ..............................................6 Inditex ........................................10 Reserved ....................................17 Balt-Yacht ..................................10 Jysk ............................................17 Rossmann ..................................17 Bentley ........................................6 KPMG..........................................10 Biedecki........................................5 Kulczyk Holding ..........................6

RTV Euro AGD ............................17 Samar ....................................6, 10

BigFatTailgateParty.com............23 Kulczyk Pon Investment ..............6 BOÂ ............................................16 Laboratorium Kosmetyczne

Skoda Auto Polska ......................6

BOMI ..........................................15 Dr Irena Eris ................................7 Tesco ..........................................15 Boombotix ..................................23 Lot Polish Airlines ......................4 The Diamond Bath Tub..............23

18-20 BOATSHOW Event: This fair provides an opportunity for manufacturers and distributors of all different types of firms involved in the boating industry to meet, form partnerships and do deals.

Location: Poznaƒ boatshow.pl

BZ WBK ........................................6 MasterCard Europe ....................8 TVN Group ....................................5 Canal + Group ..............................5 Meble Emilia ..............................15 Tzur Architects ..........................15 CCC ............................................17 Miller, Canfield, W. Babicki, A.

Visa Europe ..................................8

Citi Handlowy ............................12 Chelchowski & Partners ..........13 Delphia Yachts Kot ....................10 Model Art/Parker ......................10 DM IDM ........................................6 Nagel-Group ..............................15

Vivendi ..........................................5 Volkswagen AG ............................6

Dom Development ....................18 NeoVision ....................................5 Volkswagen Bank ........................6 Echo Investment ........................17 Netia ..........................................12 Volkswagen Financial Services ..6

22-23 EUROPEAN EMPLOYMENT FORUM

Enea..............................................6 Nokia ........................................7, 8 Volkswagen Leasing Polska........6

Event: This event is an annual conference and exhibition focusing on the major social and economic issues surrounding employment.

Location: Brussels, Belgium employmentweek.com

Espirito Santo ..............................5 NOMI ..........................................17

Warsaw Stock Exchange ..........12

Facebook ......................................8 Ostróda Yacht ............................10 Whirlpool ......................................4 First Data Polska ........................8 Panattoni Europe ......................15 Galeon ........................................10 PGNiG ......................................3, 6

WISeKey ......................................8

Gant ............................................18 PH ............................................3 17 X-Trade Brokers Gap ............................................10 Piotr i Pawe∏ ..............................17 Dom Maklerski ..........................19

NEWS

NOVEMBER 7-13, 2011

www.wbj.pl

Greece holds global economy at gunpoint Greek Prime Minister George Papandreou won a no confidence vote late last Friday, after agreeing to enter into power-sharing talks. He proposed that a new coalition government take charge of Greece until a decision on accepting the euro zone’s bailout fund for Greece had been agreed.

The eyes of the world are fixed on Greece to see if it quickly accepts the terms of the bailout deal, which is needed to avoid Greek bankruptcy, and potentially to prevent financial contagion throughout the euro zone.

Mr Papandreou is still under intense pressure from both his party and the opposition to step aside. If he were to hand in his resignation – something Mr Papandreou says he has not ruled out – the creation of a unity government or early elections would follow.

Snap elections would be “catastrophic” for the deal, he said in an address to parliament made before the vote.

Delay from the Greek parliament in approving the new €130 billion debt deal finalized

COURTESY OF FLICRK / FRANCEDIPLOMATIE

If the country does not quickly give the green light to the euro zone’s bailout, consequences for Greece, Europe and the global economy could be dire

World leaders at the G-20 summit were anxious for signs that Greece would quickly agree to the bailout deal

by European leaders at the end of October could have grave consequences. Should the delay be too long, Greece might not receive the next tranche of foreign aid it needs to pay its debts and could go bankrupt by the end of the year, possibly taking down other, much bigger European economies, such as Italy.

Referendum announcement The vote came a day after the Greek government called off a referendum on the bailout package.

When Mr Papandreou floated the idea of a referendum last Monday, he said it was a democratic necessity for sustaining the drastic austerity policies that are being demanded of Athens in return for further financial aid.

But Mr Papandreou was summoned to explain himself in Cannes, France, where world leaders were conferring for the G-20 summit. There, for the first time since the Greek crisis began, French President Nicolas Sarkozy and German Chancellor Angela Merkel brought up the possi-

bility of Greece exiting the euro. “Does Greece want to stay in the euro zone, yes or no?” Ms Merkel asked at a news conference. Mr Sarkozy said the country would not receive “a single cent” if it does not approve the bail out plan.

The whole G-20 meeting was overshadowed by the Greek political crisis, but US President Barack Obama said he was confident that Europe could pull through. “Make no mistake, there is more hard work ahead and more difficult changes to make but our

European partners have laid a foundation on which to build,” said Mr Obama.

However, no deal involving the support of international partners to rescue the euro zone materialized at the summit. No G-20 nation committed itself to financing the euro zone’s bailout fund, the European Financial Stability Facility (EFSF), either.

China, a key member of the G-20, has said it will not contribute to the fund until the Greek situation is resolved.

Alice Trudelle, Remi Adekoya

Ziobro expelled from PiS that will be capable of ruling on its own, or it will be necessary to build two political groupings – a centrist one and a nationalist one,” he told the daily.

The statement, interpreted by many as Mr Ziobro’s call for a break-up of PiS, drew strong

“We presented a plan for victory. ... They decided to throw us out of the party” criticism from many politicians from within his own party.

Mr Ziobro countered by writing a letter to Mr Kaczyƒski in which he asked the PiS leader to prevent members of the party from attacking him, simply for wanting to initiate positive changes to the party.

In response to the letter, Adam Hofman, PiS’s spokes-

person, said Mr Kaczyƒski had offered a compromise. The deal entailed Mr Ziobro resigning as deputy leader of the party and refraining from criticism of PiS in public. In return, he would gain the possibility to be reinstated as deputy leader, if and when Mr Kaczyƒski saw fit.

Mr Ziobro rejected the offer.

After a meeting of the party’s political committee on Friday, Mr Hofman announced that the trio had been expelled.

“There was no other alternative. They will have seven days to appeal the decision.”

After the commitee’s decision had been announced, Mr Ziobro said “after the sixth consecutive [election] defeat, we presented a plan for victory.

Unfortunately we were met with a decision to throw us out of the party.” The MEP announced that the trio would appeal the expulsion.

The Polish government still lacks rules governing the percentage of royalties it can collect from companies that buy concessions to extract shale gas on Polish territory. This could lead to a huge loss of potential earnings for the government, amounting to billions of z∏oty per year, Dziennik Gazeta Prawna reported. Foreign companies will likely demand the same rates negotiated by Polish gas monopolist PGNiG for conventional gas, which amounts to 2.5% of the value of extracted fuel, 10 times less than Norway’s government has negotiated.

Remi Adekoya,

Foreign investors have given Poland a rating of 3.59 out of 5 for its investment climate, with 61% of the 194 investors polled by TNS Pentor saying investment opportunities in the country are good or very good. This was the best result in the five-year history of the survey.

What’s in the meat?

Poland’s Agriculture and Food Quality Inspectorate found that almost 18% of meat in 108 processing factories investigated had a different content than that which was declared by the producers. The figure was more than 5% higher than in the fourth quarter of 2010. Cold cuts of red meat were found to contain more water than was officially declared, while products such as sausage were found to contain high levels of fat, as well as undeclared items including cartilage, tendons and chicken or turkey skin.

Largest rabbi metting in Poland since WWII COURTESY OF THE EUROPEAN PARLIAMENT

Members of the European Parliament Zbigniew Ziobro, Jacek Kurski and Tadeusz Cymaƒski have all been expelled from Law and Justice (PiS) after making a series of public statements in which they questioned how the party functioned. The statements implicitly criticized the leadership of the party’s iron-fisted leader, Jaros∏aw Kaczyƒski.

Mr Ziobro, who was deputy leader of the party and is a former justice minister, is one of the party’s co-founders.

Mr Ziobro’s problems began on October 24 when he stirred controversy by dropping a bombshell in an interview with conservative daily Nasz Dziennik.

“Either PiS becomes a party

Shale gas royalties

Foreign investors rate Poland highly

Politics

Law and Justice’s deputy leader and two colleagues have been booted out of the party

3

Mr Ziobro said he would appeal the decision

Hundreds of rabbis from across Europe gathered in Warsaw to attend the Conference of European Rabbis’ biannual meeting last week. The event was the largest gathering of Jewish leaders in Poland since the World War II. ●

NEWS

www.wbj.pl

Whirlpool moves to Poland Whirlpool, the world’s largest producer of home appliances, plans to shift production of dishwashers from Germany to Poland, Rzeczpospolita reported.

The company already operates a number of production facilities in Poland, but now wants the country to become its main dishwasher production hub in Europe. Whirlpool has announced layoffs for 5,000 workers worldwide in response to the downturn.

Record profit for PKO BP Poland’s largest bank, PKO BP, recorded a Q3 net profit of z∏.1.01 billion, up 20% y/y. The result was the highest quarterly net profit the bank has ever recorded.

After three quarters of 2011, the bank’s total net profit stood at z∏.2.85 billion. At the same time, its costs-to-revenue ratio has decreased by 1.5 percentage points y/y to 39.5 percent. ●

NOVEMBER 7-13, 2011

Emergency landing

Polish plane forced into emergency landing at Warsaw’s Chopin Airport Captain Tadeusz Wrona has been hailed a hero after no passengers were injured in the incident Polish pilot Captain Tadeusz Wrona managed to narrowly avert disaster last Tuesday, when he safely executed the emergency landing of a Lot Polish Airlines Boeing 767 at Warsaw’s Chopin Airport. A problem with the plane’s hydraulics meant the landing gear would not deploy.

In a dramatic recording of the conversation between Mr Wrona and air traffic control, the pilot, after receiving permission to land said, “We’re going for the landing. Thank you.”

Air traffic control replied, “Good luck. Flight 16 no landing gear.”

The Boeing, which was carrying 220 passengers and 11 crew members from Newark, New Jersey, landed on its belly at the intersection of two runways. Sparks and flames appeared beneath the plane as it slid to a halt. Emergency serv-

ices rushed to the scene, but no one was physically injured in the incident, leading Mr Wrona to be hailed as a national hero.

A Polish hero Recalling the final minute before the landing, Mr Wrona, who has flown for Lot for 20 years, told a press conference, “I’ve flown this plane maybe 500 times and the landing gear always worked. This time it did not … I was just thinking we must not allow ourselves to make a mistake and not to make contact with the ground too hard.”

Mr Wrona was more modest in his own appraisal of his achievement than most others, saying only that “we tried to put the plane down as gently as we could and we were successful.”

“When I stopped on the runway, I still was not sure that everyone was safe because smoke and some burning from friction appeared on the ground … I felt huge relief when the head flight attendant reported that the plane was empty,” he added.

Polish President Bronis∏aw

AFP/EAST NEWS

4

The Boeing 767 landed on its belly at the intersection of two runways Komorowski said he would award state orders to the crew of the plane. “To all those involved, and on behalf of the Polish nation, I say thank you with all my heart,” he said in a statement.

Emotional landing The plane’s passengers were also praised by members of the cabin crew for following instructions and evacuating the plane in just over one minute.

But flight attendant Grzegorz Pietrzyk told a press conference that the landing was very emotional, even for the trained staff on board the plane.

“It was after we carried out all the duties and sat down for the landing that it came to me that these could be the last minutes of my life,” he said. “That was the most difficult moment.”

“I was thinking about my family, my children, my wife,

my brother and I wanted very much to see them again,” he added.

As a result of the incident Warsaw’s Chopin Airport remained closed for more than 30 hours, leaving many passengers stranded. The temporary closure cost the airport close to z∏.2 million in lost revenues, airport director Micha∏ Marzec said when announcing the airport’s reopening last Thursday.

David Ingham

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BUSINESS

NOVEMBER 7-13, 2011

5

www.wbj.pl

Television

Canal+ and TVN join forces in complex deal

COURTESY OF TVN

Canal+ will buy a minority stake in the company that owns TVN, and the two firms will merge their satellite platforms

TVN is Poland’s largest commercial broadcaster

In a complicated deal that analysts expect will increase competition in Poland’s payTV market, Vivendi’s Canal+ announced last week that it will buy a minority stake in NeoVision, a company which has a 51 percent stake in TVN, Poland’s largest com-

mercial TV broadcaster in terms of audience figures and revenues.

Canal+ will be offered the option to purchase the rest of NeoVision’s controlling stake in the future, TVN’s management board wrote in a statement.

At the same time, the two companies announced they would merge Canal+ satellite pay-TV unit Cyfra+ with TVN’s “n” platform in a joint venture. In this deal, Canal+ will take the majority stake.

“TVN Group and Canal +

Group will combine their operations in the pay TV sector under a joint venture aimed at creating a common digital DTH platform in Poland,” TVN wrote in a press release.

The effect will be to create a strong competitor for the current market leader in Poland’s satellite-TV market, Cyfrowy Polsat, which has around 3.5 million subscribers. The new entity will have a total of 2.5 million customers.

Konrad Ksi´˝opolski, an analyst at Espirito Santo, said

that the merged entity would have an advantage in that it will be able to provide a wide variety of sports and movies on the same network.

“Consolidating these platforms means that Cyfra+ will have a more competitive offer than it did before. Until now, clients had to choose between domestic European leagues and the Champions League, but once this merger occurs, there should be one offer,” he said.

Izabela Depczyk David Ingham

Mobile phones

iPhone 4S set for a lukewarm launch in Poland?

Analysts say the device’s high price may mean it won’t be such a hit in the Polish market The iPhone 4S, the fifth generation of Apple’s iPhone, will be available in Poland from Friday, November 11, with customers able to pre-order the phone from November 4.

Sales of iPhones have rocketed in recent years, with the number of units sold worldwide growing at an annual rate

of 93 percent between 2009 and 2010, and 81 percent between this year and last.

Sales of the iPhone came to $47 billion in fiscal year 2011, more than double the amount brought in by Mac computers and by far the best-performing product for the American technology retailer.

As for the iPhone 4S, Apple sold over four million units in the first three days after its initial launch (in the US, Australia, Canada, France, Germany, Japan and the UK) in mid-October.

“Customer response to iPhone 4S has been fantastic, we have strong momentum going into the holiday season,” said Apple CEO Tim Cook in a statement after the first weekend of sales.

Europe is Apple’s secondlargest market in terms of sales, but Marek Kujda, an analyst at IDC Polska, said he does not expect massive sales in Poland once iPhone 4S hits stores.

“The iPhone 4S will be quite expensive and this will prevent huge sales in Poland,” he said.

On the Poland Apple Store

website, the prices for the iPhone 4S start at z∏.2,699 ($860).

Currently, iPhones make up just 3 percent of the total Polish smartphone market, and 1 percent of the combined smartphone market (high-end devices) and feature phone (lower end devices), said Mr Kujda.

Apple is launching its iPhone 4S simultaneously in 14 other new countries. The firm expects to be in more than 70 countries by the end of the year.

iPhone frenzy Net sales by product ($ billion) 2011 and 2010, with percentage change Product

2011

change (%)

2010

Desktops

6.4

4

6.2

Portables

15.3

36

11.3

iPod

7.5

10

8.3

Other music related products and services

6.3

28

4.9

iPhone and related products and services

47.1

87

25.2

iPad and related products and services

20.4

311

4.9

Peripherals and other hardware

2.3

28

1.8

Software, service and other sales

2.9

15

2.6

66

65.2

Total net sales

Veronika Joy, Alice Trudelle

108.2

Source: Apple annual report 2011

Legal Forum

Will new rules simplify application of the civil procedure for entrepreneurs?

Anna Herman Attorney As an entrepreneur you might be aware that the Polish Civil Procedure Code is considered one of the most restrictive procedural regulations in Europe. A recent amendment to the code, approved by parliament in September, will come into force within six months of its publication.

Among other things, the amendment derogates regulations related to a particular procedure for entire preneurs. The procedure in question imposes certain restrictions and concerns the provision by entrepreneurs of statements, charges and evidence to a court.

According to the regulation still in force, an entrepreneur acting as a claimant is obliged to present all facts and evidence in the statement of claim under pain of losing the right to present them at a later

stage of the procedure. The defendant is under the same obligation.

This often results in rulings that do not take into account the actual state of affairs. This is particularly unreasonable for small companies and individual entrepreneurs, which are often not able to afford a level of legal assistance which would allow them to comply with the restrictive regulations.

The said amendment grants the judge authority to impose the relevant restrictions on parties, using his own discretion. As a result, the judge’s position related to this procedure will become more powerful.

The amendment ought to be considered reasonable and positive. It submits litigation between entrepreneurs to general procedure, meaning it introduces equal

rules of proceedings for entities participating in litigation, irrespective of whether or not they conduct a business activity.

Potential results The amendment is designed to simplify the procedure. But is that really going to happen?

According to the new regulation, the judge will decide whether the defendant is obliged to file a statement of defense that indicates all relevant facts and evidence. Furthermore, before the first hearing, the judge may also oblige both parties to file additional written statements before a certain period of time has elapsed. Obliging the parties to do so, the judge will inform them about the negative consequences of failing to meet the

indicated deadline. Mainly in case of delay, statements and evidence will not be taken into consideration by a court while it is making a ruling, unless a party proves that (i) the delay was not due to its own fault or that (ii) the court’s reviewing of the delayed statements and evidence will not prolong the procedure unreasonably.

In case the judge does not oblige the parties to file written statements, they will both be able to present facts and evidence pertaining to the subject of the litigation until the case is closed. Presented facts and evidence must be taken into account by the court while it is making a ruling. There is only one rule limiting the parties in this aspect, namely that the court shall ignore statements and evi-

Legal Forum is a paid-for module which gives law firms in Poland an opportunity to discuss and inform readers about important developments in the market.

The content is created in consultation with Warsaw Business Journal's editorial staff.

dence if they are submitted exclusively to delay recognition of the case or if disputable aspects of the case have already been clarified in the course of the proceedings.

Conclusion The obligation for a party to indicate facts and evidence within a certain period of time will be decided by the relevant judge. In practice, the judge may allow the parties to present their positions by allowing facts and evidence to be presented without time limits, or he may impose restrictive obligations on parties.

The application of this aspect of the Civil Procedure Code will be decided by individual judges.

Whether restrictive or not, the law will therefore be applied to each party on an individual basis. ●

6

BUSINESS

www.wbj.pl

NOVEMBER 7-13, 2011

Automotive market

PGNiG begins importing Russian gas from Germany It may be able to use this fact as a bargaining chip when it negotiates gas prices with Gazprom Polish state-owned gas monopolist PGNiG has begun importing an undisclosed amount of Russian gas from Germany, instead of directly from Russia as it usually does, in order to pay a lower price for the fuel. The move may also help PGNiG force Russia to lower the amount it charges for direct supplies, analysts say.

PGNiG will pay about 1015 percent less for the Russian gas it imports indirectly than for the gas it imports straight from Russian state-owned gas giant Gazprom. German suppliers buy the gas at prices of

around 20 percent less than PGNiG. In October, the Polish company said that if Gazprom did not lower prices of gas under a long-term contract signed between the two companies, it would refer the matter to an arbitration court. The deadline for the ultimatum to be met was last Monday, but Gazprom had not lowered its prices by then.

PGNiG’s decision to import Russian gas from Germany may help convince Gazprom to lower gas prices for PGNiG without the need for arbitration, some analysts have said.

“The most important reason for the decision was simply to get cheaper gas import prices, but it will probably also help PGNiG in its talks with

Gazprom – diversification of supplies is a valuable thing,” said ¸ukasz Prokopiuk, an analyst at DM IDM SA. “The supply deal also gives hope that the regulator in Poland will lower the price of gas for consumers,” he added.

The Polish company signed a deal with Polish state-owned gas pipeline operator Gaz-System last Monday for the transport of gas from suppliers in Germany along the YamalEurope pipeline.

The transaction was made possible by virtual reverse flow technology, which allows the direction of the flow of gas to be reversed. The pipeline’s reverse flow capacity to Poland is about 2.3 billion cubic meters per year. Poland uses around 14 billion cubic meters of gas a year.

Gareth Price

again, this time at the turn of 2011 and 2012, said Pawe∏ Puchalski, head of equity

research at BZ WBK’s brokerage house. However, he added that there was not necessarily

a direct link between Mr Kulczyk’s decision and the upcoming Enea sale. Alice Trudelle

PMI reading shows growth in manufacturing output Poland’s manufacturing Purchasing Managers Index (PMI) came in higher than expected in October, as manufacturing output rose at its fastest rate in three months.

The PMI reading was 51.7 for last month, up from 50.2 for September.

A figure of above 50 indicates expansion in the manufacturing sector, while a number below 50 suggests contraction.

October’s reading exceeded the expectations of analysts polled by daily Rzeczpospolita, who forecast a fall in PMI to an average of 49.9 points.

Despite the ongoing weakness in export markets, output continued to expand on the back of domestic demand, Markit, which compiled the PMI reading, wrote in a report.

“It appears that domestic demand strength in Poland is holding up, despite weakness in the global outlook,” Dr Murat Ulgen, HSBC chief economist, Central & Eastern Europe and sub-Saharan Africa, said in the report.

Poland’s manufacturing sector continued to create jobs in October. The workforce expanded for the 15th successive month and, in line with the trend for output, at its fastest pace since July, Markit Izabela Depczyk wrote.

Still positive Poland's PMI, August 2010-August 2011 60 * Indicates improvement on the previous month 55

50

45

40

er 2 mb 010 e De r ce 201 mb 0 er 2 Ja nu 010 ar Fe y 20 br ua 11 ry 2 Ma 011 rch 20 Ap 11 ril 20 Ma 11 y2 01 1 Ju ne 20 Ju 11 ly Au 201 1 gu Se s pt t 20 em 1 be 1 Oc r 20 1 tob 1 er 20 11

Gas imports

Volkswagen is set to take over Mr Kulczyk’s automotive holdings on January 1, 2012

ve

czyk’s investment company, declined to comment on the price of the deal. A spokesperson also declined to discuss the business strategy behind the sale. However, a source close to the deal told WBJ that the sale was not meant as a way to gain capital, but as a “strategic decision.”

Mr Kulczyk is now expected by many analysts to turn his attention once again to the energy market. The state broke off negotiations with Mr Kulczyk for a controlling stake in utility Enea, valued at over z∏.5 billion, in December 2010.

A majority stake in Enea is likely to be put up for sale

Oc tob

Polish billionaire Jan Kulczyk is divesting himself of his automotive operations. A 50.1 percent stake in his automotive business, Kulczyk Pon Investment (KPI), will go to Volkswagen AG. Volkswagen AG will also take over Kulczyk Holding’s 49 percent stake in Skoda Auto Polska, while Volkswagen Financial Services and Volkswagen Bank will acquire

KPI’s minority stakes in Volkswagen Leasing Polska and Volkswagen Bank Polska, respectively.

Volkswagen is expected to take control of all these companies on January 1, 2012. This will give it control of 20 percent of the Polish automotive market, according to analysts.

The companies being taken over by Volkswagen deal with the import and wholesale of Volkswagen, Audi, Porsche and Bentley brands in Poland.

The combined value of Mr Kulczyk’s automotive holdings has been estimated at around z∏.700 million, although Kulczyk Investments, Mr Kul-

No

The German car maker will soon control a fifth of the Polish automotive market

COURTESY OF WIKIMEDIA COMMONS

Kulczyk sells automotive holdings to Volkswagen

Source: Markit

BUSINESS

NOVEMBER 7-13, 2011

EU-wide trade

Plenty of potential, little enthusiasm The Polish EU presidency is pushing a proposal that could boost cross-border trade throughout the EU, but it is failing to excite the business community The Polish cheerleader At a time when the euro-zone crisis is overshadowing many of Poland’s original goals for its six-month presidency of the EU Council, the Polish government has emerged as one of the staunchest supporters of the proposal, which could “release the potential of the single market,” according to the Polish presidency’s website.

“It is estimated that intraEU trade could increase by €26 billion if entrepreneurs fully exploit the potential of cross-border trade,” said Justice Minister Krzysztof Kwiatkowski, whose ministry currently oversees the project at the EU level.

Bartosz Wy˝ykowski, an expert in the legal department of the Polish Confederation of Private Employers Lewiatan, said the proposal offers consumers better protection than national laws. Lewiatan, which represents about 3,500 companies, says that its members would value a useful, costeffective instrument allowing them to make contracts across Europe.

Finnish mobile telephone maker Nokia, an important foreign investor in Poland, has said it views the proposal positively. Polish cosmetics firm Laboratorium Kosmetyczne Dr Irena Eris has said the proposal could help its sales in Romania, where differences in contract law currently lead to considerable cost.

Skepticism abounds “Theoretically, a Polish trader could expand all its activity across Europe and even outside by using one legal instrument,” said Mr Wy˝ykowski.

“But I would be lying if I said our members are very excited

Alice Trudelle

COURTESY OF EUROPEAN COMMISSION

Despite the EU often touting its open internal market, businesses and consumers are still not benefiting as much as they could. The European Commission has found that across the bloc, only 10 percent of companies sell their goods and services outside national borders. An even smaller proportion of consumers buy online from other EU states. At a time when European businesses desperately need to tap into the continent’s 500 million consumers, and customers could benefit from increased competition, the figures paint a worrying picture.

The EC has therefore put forward a proposal, set to be discussed this week at a conference in Warsaw, that would create an alternative legal regime in an effort to make cross-border commerce easier.

Buyers and sellers of goods in EU countries could opt to use this system – which would be exactly the same in all 27 EU member states – instead of having to navigate and adapt to national contract law in every country where they do business. Researching these laws costs companies between €10,000 and €35,000 per country, and constitutes one of the main reasons why so many European SMEs don’t, according to the EC. The novelty of the proposal, set to be adopted by 2013, is that it would be optional.

“It’s a very innovative approach, and I think most people don’t understand it, since it has never been done before, but I think political leaders in time of crisis must think outside the box,” EU Justice Commissioner Viviane Reding recently told journalists.

by the proposal,” he added.

Lewiatan is open to the initiative, but most other business organizations in Europe see no benefit, he added.

One of the barriers is that as a European law, it seems complicated and far removed from businesses’ daily concerns. Graham Wynn, an assistant director at the British Retail Consortium, said the EC “has failed to make this exciting, rather than dry and legal. It’s a pity, [because] I think people forget what it was like before we had customs unions.”

Arnaldo Abruzzini, secretary general of the Association of European Chambers of Commerce and Industry, argued that there are many other obstacles to EU-wide trade than contract law, such as language and taxes, and that this proposal is only a result of a failure to agree on a mandatory common consumer rights directive.

Many also fear that the EC will eventually decide to make the law mandatory. “Provisionally we are in favor of the proposal, but we received the final version two weeks ago, and haven’t had enough time to review the entire document.

It’s possible we will find ground to be worried about the possibility of the law becoming mandatory in the near future,” said Mr Wy˝ykowski.

Although EC officials admit that the proposal is no miracle cure for the current debt crisis, it is presented as one element to the solution.

Ms Reding, for her part, remains undeterred.

“You couldn’t come up with a better piece of legislation,” she said. “I patiently explain that I do not want to intervene in national markets and I am confident that the proposal will be adopted because, simply, it makes sense.”

Justice Commissioner Viviane Reding said political leaders must think outside the box

www.wbj.pl

7

8

BANKING IN FOCUS

www.wbj.pl

NOVEMBER 7-13, 2011

Banking & technology

Poland’s banking market adjusting to innovative technologies But there’s still plenty of unknowns for a sector that has to keep up with such rapidly developing technologies

unclear.

Experts at the 2nd annual Warsaw International Banking Summit, held in late October, generally agreed that Poland is moving in the right direction, and is one of the leaders in biometrics and mobile payments in Europe. However, it remains unclear which type of companies can take the lead, whether it will be banks, tech giants, payment firms or mobile operators.

Moreover, it is still not completely clear which applications and technologies customers will take to.

Poland’s banks are already starting to use some of the latest technologies to enhance and improve their services, but the long-term direction that the sector is heading in remains

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Smartphones to dominate?

Poland is a leader in biometrics technologies

What is clear, however, is that smartphones will play a pivotal role in the way new banking technologies will be utilized.

According to Piotr Widacki, the director of internet banking at Alior Bank, customers in Poland are already taking advantage of the services banks offer on smartphones, adding that 40 percent of mobile phones in Poland are smartphones.

“Sixty-six percent of users sleep with their smart-phones,” said Serge Ferré, who was vice president of Nokia Europe from 2004 to 2010 and current board member of WISeKey, an internet trust and digital identification company.

The surge in smartphone use is expected to have a direct impact on the banking industry, with experts saying that mobile commerce conducted on smartphones will increase.

According to surveys conducted by First Data Polska, which provides merchant processing services, 46 percent of Poles currently use debit and credit cards, while 16 percent use proximity cards and 38 percent mobile payment methods.

Many transactions using these payment methods can already be made via smartphones.

Mobile commerce According to Maciej Maciejewski, senior manager for mobile & contactless at Visa Europe, “Poland will be a leader for mobile payments in Europe because it has already built the

infrastructure.”

Grzegorz D∏ugosz, a board member at First Data, said, “Fifty-two percent of Poles believe that mobile payments are easier than payment cards,” adding that the average mobile payment transaction in Poland is z∏.12.

But the plethora of payment options available could prove a problem for some consumers.

WISeKey’s Mr Ferre said that for some, mobile commerce is neither fun nor easy, and they may therefore choose not to engage in it. He said companies such as Facebook, Google or Apple are likely to play a leading role in creating mobile commerce solutions that are more accessible for these reluctant users.

Jakub Grzechnik, manager of new business development at MasterCard Europe, said, “people think about what they want to buy not how they want to buy it.”

Impact on banking Alior Bank’s Widacki said that while mobile banking will not

replace internet banking, the two will coexist.

According to Tadeusz Woszczyƒski, director of the system solution department at Hitachi Europe in Poland, biometrics will play a greater role in the future, adding that it will soon become a “common technology.”

Biometric technology allows for more secure use of banking services by using distinctive, measurable characteristics, such as face, voice and fingerprint recognition to identify individual users.

Mr Woszczyƒski said that Poland is second only to Turkey when it comes to biometrics technologies and that the Ministry of Infrastructure wants to promote the technology further by offering tax breaks of 50 percent on its use.

Experts say that smartphones may become integrated with biometric technologies, suggesting that providers of various types of banking technologies will have to work even more closely together in the Ella Pa∏ka future.

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COURTESY OF WIKIMEDIA COMMONS

The Banking and Financing Center offers the perfect modern conference setting in a historic Warsaw location

excellent transportation connections to all parts of the city.

Historic setting During the times of the KC PZPR, a cinema was connected by a secret staircase to the personal offices of the First Secretaries. It

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Meeting Hall B, which was Boles∏aw Bierut’s reception office, is an elegant marble room, ideal for smaller business meetings of between15-26 people.

Meeting Halls A1 and A2 served formerly as the office of Walery Namiotkiewicz (Mr Gomu∏ka’s personal secretary) and the security room, respectively. They are ideal for organizing business meetings for between 12-20 people, at either a round table or in a banquet setting. In addition it is also possible to rent these rooms for a few hours only.

There is also a spacious marble foyer behind the conference halls, which is the perfect place for organizing food and drinks for as many as 100 conference participants. The foyer can also serve as a separate meeting room for 40 people. ●

OPINION & ANALYSIS

NOVEMBER 7-13, 2011

www.wbj.pl

9

What does Germany want?

Jan-Werner Mueller

Overcoming the past Contrary to the fears of many of these neighbors in 1990 (and contrary to what many analysts claim now), the Berlin Republic is not more nationalistic than the old West Germany. True, the left-liberal pacifist milieu that in the old Federal Republic disproportionately influenced published opinion with its political pieties disappeared

during the 1990s, but today’s more “normal” Germany did not begin forgetting its Nazi past and reasserting itself as a Great Power.

To the extent that there is a new German patriotism, it is ironic; if there is pride, it is pride in how thoroughly the country has dealt with the double legacy of Nazism and East German state socialism (in addition to pride in the economy and the constitution).

Moral disputes over history, once the most acrimonious in post-war Europe, are over. Nobody wants to repeal citizenship legislation that makes birthplace, not bloodlines, the basis of belonging, and everybody is proud that right-wing populism has never taken off in the way that it has among some of Germany’s neighbors. Indeed, while received opinion has moved to the right on economics and foreign policy since 1990, the party spectrum as a whole has moved to the left.

Germany’s behavior today is not driven by nationalism (not even economic nationalism), but by German

a clear sense of what the European Union should look like after the great projects of peace, the common market, and enlargement are more or less completed.

Previously, the question of Europe’s final shape could be postponed or finessed. Now, Chancellor Angela Merkel has had the misfortune of inheriting an incoherent project (a currency union without fiscal and political union) – a situation that demands some type of vision from a politician famously good at everything but articulating one. Thus, Germany’s political class, confused about what it wants and generally unable to explain to citizens what it does, has responded with shortterm solutions: yes, more Europe, but no European state; yes, more money to pour down fiscal black holes, but no departure from the old Bundesbank orthodoxies.

Ms Merkel’s style has exacerbated this confusion: she prefers to lead from behind and seems incapable of the stateswoman-like speech that would bring people to accept bolder COURTESY OF THE EUROPEAN COMMISSION

B

y now, everyone knows that Germany is calling the shots not just in the euro zone, but across all of Europe. Inside Germany, there used to be endless debates about national identity – what one historian called “the continual dispute about what being German might mean.” But, in foreignpolicy terms, post-war West Germany – and, later, reunified Germany – was utterly predictable: never against the West; always for more Europe. Now, the “Berlin Republic” is very secure about its identity – and seemingly at sea in its dealings with the world.

There are structural reasons for this change. Germany is too small to be a global player, but too big to be merely first among equals in Europe.

While Germans generally see no legitimacy in a global role, even in alliance with the country’s old partners, Germany’s neighbors do not find a German-led Europe legitimate.

elites’ loss of a political compass, as well as the Berlin Republic’s new domestic and international circumstances. Berlin is not sleepy Bonn, and the world of the 24-news cycle is not the same as the clubby atmosphere of the old Federal Republic, where only the opinion of one or two newspapers mattered.

No game plan In foreign policy, Germany has no real global game plan: witness its blunders over Libya, and its clumsy attempts to gain a permanent seat on the United Nations Security Council.

In Europe, Germany is obviously the indispensable nation, yet it lacks not only a clear mandate to lead, but also

The ECB’s risky business

A

central bank always has a crucial role to play in a financial crisis. But the European Central Bank’s role within the euro zone nowadays is even more “central” than that of the Federal Reserve or the Bank of England.

A key difference between the euro zone and the United States is that lending between two banks located in two different member countries is still perceived as carrying quite different risks than “domestic” lending.

This is not the case in the US, because it has an integrated financial system, and support for banks is administered at the federal level.

As a result, the fact that California might be closer to bankruptcy than some euro zone countries has no influence at all on the credit rating of banks headquartered there, or on their ability to obtain funds on the interbank market. In Europe, by contrast, the fate of all banks depends upon their home governments.

Bank run Now that the “southern” euro zone

governments’ solvency no longer seems assured, distrust has grown along national lines. German banks continue to lend to each other (and to other banks in northern Europe), but they are no longer willing to lend to Italian, Spanish, or other banks in southern Europe.

A bank that suddenly has to repay its interbank debt must cut credit to its own customers or sell off other assets, leading to large losses. This is precisely what happened when the interbank market froze after Lehman Brothers collapsed in 2008.

When the cross-border interbank market stopped working this summer, a similar economic collapse was avoided only because the ECB, without much fanfare, became the euro zone’s central clearing house. German and other northern European banks that no longer trust their southern counterparts parked their funds at the ECB’s deposit facility, whereas southern European banks used the ECB’s lending facilities to make up for the loss of private interbank funding.

Regions and risk Regional imbalances in interbank funding can, of course, also arise in the US Federal Reserve System. But they are mostly intermediated within nationwide financial institutions.

Adjustment to shocks is also independent of location in the US. In the euro zone, however, banking is still predominantly concentrated along national lines. A savings surplus in Germany is recycled to Spain mainly through interbank lending (German to Spanish banks). Moreover, although the EU is supposed to have an integrated banking market, the few existing cross-border banking groups are not even allowed to operate as integrated international banks, because national regulators and supervisors are “ring-fencing” the liquidity and assets of foreign banks’ local subsidiaries. For example, an international banking group headquartered in Italy was recently barred by supervisors from using the cash surplus of its subsidiary in northern Europe to fund the group’s operations elsewhere.

That would have been impossible in the US, given that the supervisors are federal.

Imperfect integration A further difference between the euro zone and the US is that the Federal Reserve normally lends only against public debt, and accepts only federal debt (T-bills) as collateral.

Banks thus cannot use any holdings of California or Texas state debt to obtain central-bank funds. The ECB, on the other hand, accepts private assets and, in the absence of federal debt, national debt as collateral.

This puts the ECB in a very different position from the Fed, because the quality of its collateral is determined along national lines. For example, Greek banks have received more than €100 billion in ECB financing, which is secured by a mix of private Greek assets and Greek government debt. If the Greek people were to decide in a referendum to default, the ECB would incur large losses, as much of its collateral would become worthless and the Greek banking sys-

measures. Others have filled this vacuum. Even the most banal statements of Helmut Schmidt and Helmut Kohl, pronouncing from retirement on the dangers of betraying their European dream, are adored as shimmering pearls of wisdom.

What next?

Unlike in the post-war decades, Germans no longer want to escape to “Europe” from their difficult fatherland. Today’s generations are far too comfortable with being German to see Europe as the answer to all of their problems.

Still, they probably would be willing to do much more with and for Europe if someone explained why it fits their ideals and interests. Talk of a new, Europe-friendly constitution indicates that they might even be willing to give up what, along with the Deutschmark, was the old Federal Republic’s most prized possession: the Basic Law, arguably the world’s most successful constitution during the last half-century. But Germans will not give it up for nothing. ● Jan-Werner Mueller teaches at Princeton University. His latest book is Contesting Democracy: Political Ideas in Twentieth-Century Europe.

Copyright: Project Syndicate, 2011.project-syndicate.org

Daniel Gros tem would collapse.

The imperfect integration of Europe’s financial markets and supervisory structure thus risks overburdening the ECB, which has had to become the central counterparty for cross-border lending. But in this function it has accumulated large risks, concentrated along national lines, thus leading to conflicts among member states.

Put the pieces together A common money and a common monetary policy cannot work properly with a banking system that is segmented along national lines. The most urgent step to stabilize the euro is not to follow the chimera of “euro economic government,” but to create the underpinnings of a truly integrated banking market with a common supervisor, a form of “federal” deposit insurance, and a “euro bank rescue fund” for the large cross-border institutions. ● Daniel Gros is director of the Center for European Policy Studies.

Copyright: Project Syndicate, 2011.project-syndicate.org

Editorials are the opinions of WBJ’s editorial board. Other opinions are those of the authors alone. Comments, opinions and letters should be sent to editor@wbj.pl. Please include a name and contact information and clearly indicate if they are to be considered for publication.

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SPECIAL REPORT: BOAT MAKERS

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Hybrid car sales growing Since fully electric cars can be expensive, Polish customers are showing a preference for more affordable and practical hybrid vehicles. From January to September of this year, the sale of hybrid cars in Poland almost doubled in comparison to the same period of last year.

According to the Samar Institute, an automotive market research body, 741 hybrid cars were registered in Poland in the first nine months of 2011.

E-commerce expansion At the end of 2010, there were 10,000 e-stores operating in Poland and that number is growing, reported Rzeczpospolita.

Over the last year, global companies such as Auchan, Gap and Inditex (the owner of Zara) have entered the Polish e-commerce market.

“Although an e-store may now bring in the same income as a regular store, it reaches more clients,” said Piotr Jarosz, an ecommerce analyst from portal sklepy24.pl. ●

A guide to Polish business and industry

NOVEMBER 7-13, 2011

Poland’s boat-building industry

Navigating rough waters Poland’s makers of yachts, sports boats and pleasure crafts have regained the initiative following the 2008-2009 financial crisis. Can they count on continued growth?

Following the decline of Poland’s shipyards, the construction of yachts, pleasure crafts and sports boats has gained in importance for the country’s maritime economy.

“The yacht- and boatbuilding industry has a long tradition in Poland,” Andrzej Bartosiewicz, the president of Admiral Boats, a Polish producer and distributor of sports and pleasure boats, told WBJ. “It has developed independently of the large oceangoing ship production sector in Poland, although the reputation of the large Polish shipyards in Gdaƒsk, Gdynia and Szczecin may to some extent have helped to boost the image of smaller shipyards producing boats and yachts,” he added.

Crowded seas Some 920 companies operate in the yacht- and boat-building sector, according to a 2009 report by KPMG. Six companies, Delphia Yachts Kot,

Przewodnik po polskim biznesie i gospodarce

Galeon, Ostróda Yacht, BaltYacht, Model Art/Parker and Âlepsk, account for as much as 60 percent of all production in Poland.

One area of strength for the industry is the construction of motor boats of between six and nine meters in length, although Polish producers also turn out yachts measuring over 20 meters. The Polish Chamber of Marine Industry and Water Sports (POLBOAT) estimates that up to 95 percent of vessels produced in Poland are exported, mostly to countries in Western Europe. Polish producers are also active in export markets beyond Europe, particularly in Russia, the United States, the Middle East and Australia.

It is now one of POLBOAT’s strategic aims to increase sales of Polish-produced boats within Poland itself. One of the factors which it is up against, however, is a strong do-it-yourself culture among Poles.

Polish boat producers have been competitive in international markets due to their ability to combine quality with low prices “Polish clients [of yacht and boat builders] today are all about do-it-yourself production,” Sebastian Nietupski, the vice-president of POLBOAT, told WBJ. “This means that the client

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buys the components of the boat – the hull and the sails and so on – and assembles the boat in their garage,” he said.

“In order to avoid excessive costs, a typical Pole tends to build their own yacht.

POLBOAT is fighting against this phenomenon, because such “DIY” boats are less safe to use. And indeed, there has been a small increase in the sale of new boats in Poland recently,” Mr Nietupski added.

NOVEMBER 7-13, 2011

SPECIAL REPORT: BOAT MAKERS

“An incresing number of foreign boat builders are deciding to find partners in Poland” It’s not as if there isn’t any demand for yachts, pleasure boats and sports boats in Poland – boating is very popular in the country, and has been developed alongside the tourism industry in many areas. Boating is a key part of the economy in the Masurian Lake District, for example.

However, despite the potential of the domestic market, Poland’s boat-makers will likely retain their focus on foreign markets, where they have achieved considerable success.

Making waves Polish boat-producers have been competitive in international markets due to their ability to combine quality with low prices. This has attracted individual and multinational clients, often leading to longer-term cooperation.

“The effect of the economic crisis has been to show that to compete for clients, you must offer low prices and high quality – whether it is for the end client, or for a large multinational company with its production base in Poland,” Mr Nietupski said.

“An increasing number of foreign boat builders are

deciding to find partners in Poland, and to transfer production to the country – low production costs and high quality are our strengths,” he added.

This competitive edge has enabled Polish producers to bounce back from the depths of the economic crisis, with KPMG expecting production to grow by 10 percent in 2011.

This would mean a total output of around 17,000 yachts.

In 2010, output stood at around 15,500 yachts, compared with just 12,000 and 11,000 in 2008 and 2009 respectively. This followed 2007’s record total of 22,500.

Total output is one of the most reliable indicators of the health of the industry, since production of yachts and boats is based almost entirely on order numbers.

One company currently experiencing healthy foreign demand for its products is Admiral Boats. The firm supplies its pleasure and sports boats to importers in Western Europe, which buy Admiral’s products wholesale and sell them in their home markets.

“In the near future, we plan to almost double the

number of boats in our portfolio,” Admiral Boats’ president Andrzej Bartosiewicz told WBJ. To help it realize this plan, the company has gone to the credit market to get capital.

“To offer our partners a wider range of boats, we decided to invest in the company’s development,” Mr Bartosiewicz said.

“We gained the capital needed for this goal from investors, receiving a combined total of z∏.10 million from a share issue and two bond issues.

The money was spent on investment associated with the expansion of production facilities and modernization.”

Choppy waters ahead?

With the crisis in the euro zone starting to make a Europe-wide recession look increasingly likely, it would be reasonable to expect demand for yachts and pleasure craft in Polish boat-makers’ traditional export markets to fall.

However, Polish boat-producers’ assured response to the 2008-2009 crisis, their ability to offer quality products at low prices and the potential for growth in their home market means Poland’s boat industry should be able to keep its head above water if an economic storm does come over the horizon.

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11

Fragmentation and consolidation Only the United Kingdom has a larger number of companies operating in its boatbuilding sector than Poland.

Indeed, Poland has significantly more companies (920) building yachts and components for yachts than maritime heavyweights like France and Germany (575 and 311 companies respectively).

However, when revenues in each of these countries are taken into account, the picture looks very different:

in Poland, according to KPMG, the combined revenues of companies in the industry was an estimated €1.39 billion in 2009, while in Germany, which has only around one-third as many companies as Poland, combined revenues were €4.94 billion.

This evidences the highly fragmented nature of Poland’s boat-building industry, with most companies operating on a much smaller scale than in Western Euro-

pean countries. Nevertheless, there is a feeling within the industry that consolidation is coming.

“In my view, in the next few years, there will be a period of consolidation in the yacht and boat-building sector in Poland,” Andrzej Bartosiewicz, the president of Admiral Boats, said.

“Clients are always looking for novelties – this requires producers to introduce new models, and this requires capital.” ●

Ownership structure The ownership structures of companies operating in the Polish yacht- and boat-building industry are varied. Of the top six producers, Delphia Yachts, Balt Yacht and Âlepsk are independent, but produce on behalf of Brunswick Marine Europe, the US company’s European division. Galeon and Model Art/Parker are completely independent and produce boats only under their own brands. Ostroda Yacht, meanwhile, is owned by Janneau of France.

Galeon decided to go it

alone, and has thrived by offering a high degree of flexibility in its production, allowing clients to tailor the yachts they purchase to their own personal preferences.

“What makes us exceptional is that we are able to offer clients boats produced according to their wishes,” said Aleksandra Brzo˝owska, head of marketing at Galeon.

“Our main strength is a high level of autonomy and flexibility of production – we are one of the very few producers which have most pro-

duction departments in one place, which makes our production independent from sub-contractors. In this way, we are able to satisfy the most sophisticated demands of clients – this is generally an expensive process, but worthwhile for us, considering the growth in the demand for personalized products,” she added.

Testament to this is the size of the company’s orders book.

“In our production plan, you already need to reserve a deadline for next year,” Ms Brzo˝owska said.●

Brendan Melck

Pick up the latest edition of Warsaw Business Journal Group’s popular series of busines guides.

The publication features Trendbook Poland, a comprehensive view of the business trends shaping Poland’s market.

To order, e-mail kwilinski@valkea.com or call (+48) 22 639-8567 ext. 255

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Borrowing to get more expensive Companies looking to borrow money in Poland could soon see “another 2009,” when credit was expensive and banks were reluctant to lend, Citi Handlowy CEO S∏awomir Sikora told Puls Biznesu. According to Mr Sikora, companies have to keep in mind that in the coming months, banks may be reluctant to give them loans, mainly because of a lack of liquidity in the market and because of rising risk. Both factors will make borrowing for companies as well as the government more expensive.

Netia Q3 net profit Warsaw Stock Exchangelisted Netia, the country’s second-largest telecoms operator, posted a net profit of z∏.24.6 million for the third quarter of this year, almost double the z∏.12.9 million it made in the previous quarter. Netia also revised its 2011 operating profit forecast upwards, to more than z∏.95 million from its earlier estimate of z∏.70 million.

Stocks rally in October After dipping to a twoyear low earlier in October, the Warsaw Stock Exchange’s bluechip index, the WIG20, positively surprised investors at the end of the month. European politicians’ announcement in late October of a deal to help resolve the euro zone’s debt crisis played a decisive role in lifting moods. Between October 3 and the end of the month, the WSE’s bluechip index rose by 13.5 percent to finish at 2,371.57 points, whereas the main WIG index gained 12 percent, reaching 41,160.66 points. ●

SPECIAL REPORT: EU DEFENSE

NOVEMBER 7-13, 2011

EU defense policy

An uphill battle Liam Nolan Poland is leading the charge for robust, unified European defense capabilities, but a minefield of obstacles still lay in its path Since the ratification of the Lisbon Treaty in 2007, plans for the development of a common European Union defense strategy have been gaining momentum. Now, at a time when the continent’s national defense budgets are feeling the pinch, the rationale for closer cooperation on defense within the EU is becoming stronger.

Already, some important progress has been made on increasing intra-European cooperation, with Poland taking a leading role.

According to Poland’s Ministry of Defense, the country’s long-term defense policy sees more value for money in sharing military capabilities with its EU neighbors.

“In our opinion there is certainly a chance for greater cooperation in defense in Europe. Europe needs it if we want to develop the required military capabilities in times of financial crisis. The question of course is how close this cooperation can be,” Deputy Defense Minister Zbigniew W∏osowicz told WBJ.

Pulling together A time when European armies, navies and air forces will share their hardware under the aegis of a single European force is still a long way off, but the Polish government is keen to seek a central role for itself in making those plans a reality.

Pooling resources would have the obvious advantage of helping EU governments find savings in their defense budgets.

“From my perspective, closer cooperation or even integration can refer especially to some capabilities which are particularly expensive to be developed autonomously and are especially vital for con-

COURTESY OF US DEPARTAMENT OF DEFENSE

12

Poland’s military is the sixth largest in Europe, comprising 100,000 full-time personnel ducting external operations, such as strategic transport, reconnaissance or logistics,” said Mr W∏osowicz.

Poland is gaining a stronger foothold in the area of EU defense decision-making. In October, top officials from the European Defence Agency (EDA) and a number of top European defense industry consultants and firms gathered in Warsaw for the first European Defence Conference.

According to Jan Wind, head of Wiser Consultancy, a Netherlands-based defense and security technology consulting firm and co-organizer of the conference, Warsaw was chosen as the host city because Poland currently holds the EU Presidency and because its government is taking an active role in defense cooperation.

“Poland is becoming a more important player [in

“The time when European armies, navies and air forces create a single European force is a long way off” European defense policy],” said Mr Wind.

In Brussels, Polish representatives are pushing for greater defense cooperation.

Member of the European Parliament Krzysztof Lisek, a Pole and an ardent advocate of greater EU defense cooperation, told delegates at the EDA conference that “promoting the idea of pooling and sharing capabilities is a necessity.” He also urged for a “level playing field for defense production” across Europe.

Polish priority At the outset of Poland’s pres-

idency of the EU, Prime Minister Donald Tusk’s government made it clear that Poland would use the opportunity to try to develop the Common Security and Defence Policy.

Looking at the first four months of Poland’s turn as head of the EU Council, progress has been made in the area of pooling and sharing.

The EU’s Defence and Security Procurement Directive, adopted in August, provides a framework for crossborder defense procurement between member states. As such, it goes some way towards fighting against national pro-

tectionism, which has proven to be the biggest stumbling block for establishing joint military production initiatives between EU member states.

This new directive, introduced during Poland’s presidency, is a first step towards improving competition and achieving lower prices within the European defense industry.

However, achieving greater collaboration between NATO and the EU in the area of defense, another goal of the Polish presidency, has been less fruitful.

Though the Polish Ministry of Defense’s official stance is that NATO and the EU face the same political challenges, the Polish decision not to participate in NATO’s Libya campaign suggests otherwise. It is clear that the priorities of EU defense ministries, most of which are also members of the

NOVEMBER 7-13, 2011

SPECIAL REPORT: EU DEFENSE

www.wbj.pl

13

Legal Eye

An EU defense force?

COURTESY OF THE US DEPARTMENT OF DEFENSE

Paul Fogo is a senior attorney with Miller, Canfield, W. Babicki, A. Chelchowski & Partners. fogo@pl.millercanfield.com

Poland’s armed forces have been involved in military action in both Afghanistan and Iraq in recent years NATO club, are not always aligned with NATO policy.

The fact that six EU states are not affiliated with NATO also complicates greater EUNATO cooperation.

Even among EU members, it will be hard to convince big players like the UK of the benefits of forming a common EU defense force. In October, Liam Fox, who was then the UK’s defense secretary, said that plans for an EU defense force that would act separately from NATO were “nonsense.”

With such resistance, achieving closer EU and NATO collaboration by the end of Poland’s EU presidency just might prove too difficult.

Patchwork of alliances NATO aside, a whole patchwork of internal EU alliances jar with the concept of forming a harmonized intra-European defensive partnership. Last November French President Nicholas Sarkozy and UK Prime Minister David Cameron signed a number of far-reaching agreements, leading to the creation of a joint expeditionary force, the sharing of aircraft carriers and combined efforts to improve the safety and effectiveness of the nuclear weapons held by both countries.

Poland, too, is keen to maintain local alliances, as evidenced by a recent renewal in

“Former UK defense secretary Liam Fox said plans for an EU defense force were ‘nonsense’” interest in the Weimar Triangle, a loose grouping of Poland, Germany, and France which endeavors to bolster economic, cultural and military exchanges between the three countries. In July, the countries signed an agreement in Brussels to establish the Weimar Combat Group, a unit of 1,700 soldiers which is planned to be ready for deployment in crisis zones from 2013.

Meanwhile, the EU’s socalled neutral states, Austria, Finland, Ireland, Malta and Sweden, have all been reluctant to commit to the idea of creating a unified EU defense force.

Navigating through this patchwork of agreements and managing to convince doubters will not be an easy task for supporters of an EU defense force. If anything is clear from the long, drawn-out process that led to the creation of the Lisbon Treaty, it’s that significant opposition from some EU member states will have to be surmounted before the bloc is able to form any type of unified defense force.

Bulking up Across Europe, national defense ministries have had to endure tough cuts in 2011.

On the face of it, Poland’s Ministry of Defense has not had to endure the same cuts as Germany, France and Britain, whose armed forces have, this year, felt the hard pinch of current economic realities. Poland has bucked this trend, increasing its defense expenditures. With roughly 100,000 full-time personnel, Poland’s military is the sixth-largest in the EU. According to figures published by Poland’s Defense Ministry, the Polish government allocated z∏.27.2 billion for defense expenditures in 2011, which amounts to 1.95 percent of GDP. That figure clocks in just below NATO’s goal for its members to spend 2 percent of GDP on defense.

Poland is also keen to modernize its defense forces.

According to the Defense Ministry, z∏.6.63 billion was set aside for capital investments, which suggests Poland may be set to buy new armaments.

Nevertheless, the Polish government remains pragmatic in its vision for its potential role at the heart of any future EU defense structure. “We want to be active.

At the same time we are realistic: We will not be in the lead in this process,” Deputy Minister W∏osowicz said.

“Our potential is limited in comparison with countries like Germany, France or Great Britain. Despite this, Poland can be an attractive partner in some specific areas. We are experienced in the operational use of some advanced equipment. This can be used as a basis of cooperation in terms of training or logistics,” he added.

Poland’s short-term defense plans seem well mapped out: keep defense expenditure at an average rate of 2 percent of GDP, while working hard with the European Defence Agency to foster greater sharing of hardware and personnel between member states.

In the long term, expect Poland to continue to push for greater EU defense cooperation and stronger capabilities. Poland sees it in the EU’s interest to have a robust force that can act in large conflicts. But convincing those that disagree is the first battle that has to be won. ●

Upon adoption of the Lisbon Treaty on December 1, 2009, Poland and all other member countries of the EU ceded formal authority to the EU regarding the Union’s foreign policy and security. But appearing to transfer control of foreign policy and defense to the EU by signing the Lisbon Treaty, each member country also retained the right to conduct its own foreign policy and defense. Foreign policy and defense, it turns out, is a “shared” power. Despite the wording of the Lisbon Treaty, the EU does not have exclusive authority for foreign policy and defense, but rather shares such authority with each member country. In effect, implementation of foreign and defense policy is now performed on two parallel tracks, one pursued by the EU and one pursued by each of the 27 member states.

Who’s in charge?

The EU Council of Ministers is charged with defining the overall foreign and security guidelines for the EU, including “matters with defense implications” (Art 26). Actual implementation of the EU’s common security and defense policy is executed by the High Representative for Foreign Affairs and Security Policy, who in turn is aided by a number of EU institutions charged with executing specific areas of such policy, including the European External Action Service, the European Defence Agency, the Military Committee of the European Union, the Political and Security Committee and the Military Staff of the European Union. Member states are prohibited from taking unilateral action that could impact the EU’s ability to act as a cohesive force; however, such limitation does not prevent each country from pursuing its own foreign and defense interests.

Obligatory vs. voluntary The EU does not have a standing army. Rather, the EU relies on the voluntary contribution of troops by member states. Currently the EU maintains two rapid response military groups of 1,500 soldiers each, both of which are ad hoc in nature and dependent on contributions by member states. No member state is actually obligated to contribute combat troops. A decision to commit troops to combat is up to each member state. Moreover, the commitment of EU troops to a combat situation is still subject to the unanimous consent of all member states. Member states are, however, obligated to contribute funding, based upon a small percentage of each country’s GDP.

Deployment of Polish troops Poland has voluntarily committed soldiers to different parts of the world as part of EU military missions, all of which can be characterized as being either peace-keeping or policing in nature. Under the framework of the European Security and Defence Policy, Poland has committed military personnel to various EU military missions, including Chad, Kosovo and the Republic of Georgia.

A work in progress The EU’s common defense policy can best be described as a work in progress. Member states are reluctant to cede too much power over defense policy to the EU, preferring instead to rely on a largely voluntary framework to respond on an ad hoc basis. Some member states, including Poland, would like to further integrate each country’s defense capabilities at the EU level, in part to save money. Other member states, such as the United Kingdom, are happy to maintain the status quo. ●

14

INTERVIEW

www.wbj.pl

NOVEMBER 7-13, 2011

Politics

A question of leadership Ewa Boniecka: You recently co-authored and co-edited the book “The crisis of leadership in contemporary politics,” which analyzes political leadership in many countries.

How do you view the issue of political leadership in Poland, following the recent parliamentary elections?

Wawrzyniec Konarski: Donald Tusk, the leader of Civic Platform (PO) has demonstrated strong, but at the same time arrogant leadership qualities, something which clearly distinguishes him from other political leaders in Poland. The strengthening of his leadership was brought about by the fact that PO won a second term in power and that his personal role in that victory was a decisive one. As a result, he now has the ability to play a leading role in shaping the country’s politics.

Yet as a scholar I prefer to look at the long term and not just the current situation. It is clear that from the present perspective Mr Tusk is a decisive political leader, yet whether he will undertake the task of conducting long-awaited reforms depends on how he perceives his role as a leader over a longer period. Political leaders who want to gain the status of political statesman have to show the will and imagination to undertake crucial, and at times risky, decisions that can define a country’s present and future development.

If Mr Tusk is able to achieve this then he may gain the majority of the nation’s genuine respect, including those people who do not currently share his political vision.

What conclusions can the leaders of Poland’s political parties draw from the election outcome?

While PO’s victory was for myself, and some other analysts, predictable, the fact that the party gained a larger number of votes than expected shows that Mr Tusk’s strategy of avoiding any specific ideology in his message served his party well. I predict that Mr Tusk will now attempt to push the weakened parties on the left and right onto the margins, while at the same time trying to absorb into PO’s ranks some MPs from other parties, in order to strengthen the parliamentary majority of his future coalition government.

Such a broad political formula suits Donald Tusk, because it gives PO the image of an open and all-inclusive party that can obtain support from other parties without being in a formal coalition with them. Mr Tusk can also more easily push aside and even eliminate his potential competitors inside the party, as the case of [former Speaker of the Sejm and party rival] Grzegorz Schetyna confirms.

So there is no doubt that this is Donald Tusk’s era in Polish politics, regardless of who will be appointed to his government and what kind of coalition is established. If PO once again forms a coalition with the Polish People’s Party (PSL), this party will be in a much weaker position than in the previous coalition, due also to its relatively poor election results.

The main opposition to PO will continue to come from the conservative-nationalist Law and Justice (PiS) party. Do you believe that due to some bitter clashes within this party, its leader Jaros∏aw Kaczyƒski could modify PiS’s program and his own personal style of leadership?

No I do not think so, because Jaros∏aw Kaczyƒski is the epitome of PiS and he leads the party with an iron will. He has the ability to gain the admiration and trust of those people who are disappointed with the results of Poland’s transformation and feel the need to defend themselves from liberal European values. They no doubt gave Mr Kaczyƒski significant support in the last election. Yet under the leadership of Jaros∏aw Kaczyƒski, PiS has lost six consecutive elections and now some younger politicians in the party, led by deputy leader Zbigniew Ziobro, are publicly saying that the party has to change. What will come out of that inner conflict remains to be seen.

However, I doubt that Mr Kaczyƒski will loosen his grip on the party and tolerate public criticism without harsh retaliation. Nevertheless, the basic dilemma ahead of PiS is whether under Mr Kaczyƒski’s leadership it will be able to reach new voters. If this does not happen, then both PiS and Jaros∏aw Kaczyƒski would start to lose any meaningful position in Polish politics.

COURTESY OF WAWRZYNIEC KONARSKI

Wawrzyniec Konarski, a professor of political science at the Jagiellonian University in Kraków, sits down with WBJ to talk about Poland’s post-election political scene

Mr Konarski believes PM Donald Tusk must make difficult decisions to gain the genuine respect of the nation Yet in my view, even a weakened PiS will not disappear from Polish politics.

But it is also conceivable that dissidents within PiS could establish another right-wing party under a new name, with Mr Ziobro as its leader.

He managed to present himself as a political outsider – although in reality he is not – who was so disappointed by the political hypocrisy of PO that he consciously left them. By combining a decisive liberal approach to economics with leftist views on ethical and

“I doubt that Mr Kaczyƒski will loosen his grip on the party and tolerate public criticism without harsh retaliation” The outcome of this election brought something new to our political scene, when Palikot’s Movement (RP) entered the Sejm after gaining 10 percent of the vote. How significant in your opinion is this development for Polish politics?

It is important. It shows that there are some groups in Polish society who have chosen the populist approach to policy in order to demonstrate their dislike of the existing political establishment. The latter is seen by such voters as a petrified group of aloof politicians who are attempting to cling on to power.

Yet in my view the support for RP was more than just anti-establishment sentiment.

Janusz Palikot understood that in order to succeed he had to present new ideas and a fresh language of communication with the electorate. He exploited anti-establishment feelings by building a populist party with radical liberal and leftist messages from the bottom up.

social matters, including a clear division between church and state, while also using straightforward language in approaching those problems, Mr Palikot seems to respond to the expectations of certain groups within Polish society, especially young people who are disappointed with mainstream parties such as the Democratic Left Alliance (SLD) and PO. This is why I think RP should not be seen as some kind of fad, because in reality Janusz Palikot, with his populist message, is actually filling a vacuum that exists in the politics of more traditional parties. And that is why I believe, as long as he does not cross over into the establishment, his party will continue to gain support from a particular section of Polish society.

How did the rise of Palikot’s Movement affect the already weak position of SLD, and what do you think are the future prospects for this particular party?

SLD ignored the activities of RP during the election and this was a serious mistake.

They also entered into the election campaign in poor shape, as there was already some dissent within the party towards leader Grzegorz Napieralski. But the key crisis for SLD was its inability to present itself as a real alternative to rightist parties. SLD neglected to develop the links to social and cultural organizations potentially sympathetic towards the left and did not open its door to new groups of people. On the contrary, it was closing itself inside its own frozen party structure. And while SLD was relying on old slogans, Janusz Palikot showed that there was support in Poland for more bold leftist ideas.

But because there is now a more widely open space on the political left, I think that SLD has the potential to recover.

The scale of social problems in the country is rising and there is also an increased interest in ethical matters, so in my opinion SLD should develop some kind of cooperation with Palikot’s party to push forward leftist proposals in parliament.

The most crucial task for SLD is taking steps for its own recovery. But I have to say that so far I have not seen a person who possesses the political vision needed to re-build the credibility of SLD within the party’s ranks. Therefore, I think the “old guard” activists should help in creating a new, relatively young leader of the party.

What do you see as the most important challenges in terms of domestic policy during the next parliamentary term?

In my view the most crucial aspect for the future of the country is investing in science education on one side, and health policy on the other, as they are currently totally neglected, and this is something that is holding our country back.

I also believe there is a need to build people’s confidence in the state as a symbol.

Poles feel that they are not adequately respected and protected by the state and in return they do not trust it.

Many people think that they are badly treated in their daily life – by health and tax systems, and by arrogant administration organs at all levels.

In Poland we do not have the kind of national ethos that exists in many old democratic countries that is necessary for creating mutually effective links between citizens and their state.

Our state is perceived by people as being unfriendly towards them. Such a perception calls for two solutions: structural changes in the administration of the country and a change in mentality among people who are representing the state.

Without building trust among various groups of people and combining it with strengthening the authority of the state and confidence of citizens towards the state, it will be much more difficult to implement the reforms needed for Poland’s real modernization.●

Silesia will get z∏.243 million for urban revitalization under the EU’s JESSICA initiative

Hochtief will reportedly convert two historical buildings in Warsaw

16

17

LOKALE IMMOBILIA

W a r s a w B u s i n e s s J o u r n a l ’s w e e k ly s u p p l e m e n t o n re a l e s t a t e , c o n s t r u c t i o n a n d d e v e l o p m e n t

Panatotni Europe has launched construction on a second building in its Panattoni Park Gliwice I logistics complex in Upper Silesia. The facility will be occupied by an industrial packaging manufacturer which has leased 5,000 sqm of space in the project.

Panattoni Park Gliwice I is one of Panattoni Europe’s six investments in the Upper Silesia region. The project comprises two buildings with a targeted total space of 22,560 sqm. The first building in the park is a 11,165 sqm facility built for Nagel-Group.

Tesco enters Bydgoszcz shopping mall A Tesco supermarket will open at the Drukarnia Dom Mody retail center in Bydgoszcz, replacing a store that belongs to the BOMI delicatessen chain.

This will be Tesco’s first store in the center of the city, Apsys Poland, the firm managing the mall, said in a statement. The UK retailer will be located on the mall’s level-one, neighboring Pure, a fitness center.

Tesco will open the mall in the second half of December this year. The retailer currently operates close to 400 stores in Poland, as well as 27 gas stations. ●

In this issue Meble Emilia sale . . . . . . . . . . . . .15 GTC’s new Warsaw mall . . . . . . .15 Construction price wars . . . . . . .16 Revitalization in Silesia . . . . . . . .16 Property-related stocks . . . . . . .16 Pabianice mall sold . . . . . . . . . . .17 Hochtief offices in Warsaw . . . .17 Gant’s Amber Park launched . . .18 New Wilno phase . . . . . . . . . . . . .18

NOVEMBER 7-13, 2011, LI 16/44

Investment locations

Poland selling Meble Emilia, includes prime Warsaw spot But can the site accommodate a high-rise office building?

A controlling stake in stateowned furniture company Meble Emilia is being put up for sale by the Treasury Ministry for z∏.172.28 million.

The sale will include a network of 12 furniture stores, the best-recognized of which is located on ul. Emilii Plater, in Warsaw’s downtown.

Built in the 1970s and nestled in between the InterContinental Hotel (164 m) and the Warsaw Financial Center (165 m), the store is in a prime location. Some experts say the new owner could replace the store with a more profitable high-rise office building.

However, construction of an office tower on the site of the building would be difficult to undertake because of the existence of an eightstorey apartment block that sits directly behind it. Construction of a large office tower would restrict sunlight

for the apartment’s residents to a level below that which is required by law.

The developer of the InterContinental also had to deal with a similar requirement, eventually choosing to include a section that allows light to pass through.

For an office to be built on the site of Meble Emilia’s furniture store, an investor would be required to buy some existing residences facing ul. Emilii Plater and replace them with office or hotel space. Residents, however, do not want to move out and would likely demand exorbitant payments to do so, reported Gazeta Wyborcza.

The Treasury hopes to sell its 85 percent stake in Meble Emilia while allowing eligible employees to acquire the remaining 15 percent of the company free of charge. The minimum price-per-share set for the available shares (221,000) is z∏.779.54.

In addition to its network of stores, Meble Emilia also rents out office, retail, advertising and warehouse space in the capital and its surround-

COURTESY OF WIKIMEDIA COMMONS

Panattoni Park Gliwice I expansion

•

The Emilia store in central Warsaw is nestled in between the InterContinental Hotel and the Warsaw Financial Center ing area.

Last year, according to

the Treasury, Meble Emilia recorded a loss of z∏.1.6 mil-

lion on sales of z∏.42 million.

Ella Pa∏ka

Retail development

GTC to invest €160 million in new Warsaw shopping center The mall will be located in the central part of the capital's Bia∏o∏´ka district Warsaw Stock Exchange-listed developer Globe Trade Centre (GTC) has revealed more details pertaining to a planned shopping center which it wants to build in Warsaw’s Bia∏o∏´ka district. The mall will be located on a 4.9 hectare plot on the capital’s ul. Âwiatowida. It will

cost approximately €160 million to develop.

The facility will comprise some 60,000 sqm of leasable space. The developer hopes that due to its convenient location, the project’s catchment area will comprise almost 540,000 people and will, apart from Bia∏o∏´ka, include the neighboring ˚oliborz, Bielany, Praga Pó∏noc and Targówek districts.

“The planned investment is

a response to the needs of the rapidly developing Bia∏o∏´ka and neighboring districts where [the supply of] modern retail and service areas is still limited,” Piotr Kroenke, general manager of GTC, said in a statement.

He added that due to ongoing transport infrastructure improvements, including the construction of Warsaw’s Northern Bridge, the center would successfully serve peo-

ple residing on both sides of the Vistula river.

“We are glad that in the central part of our district a modern facility with a wide retail and entertainment offer will be built. We believe that this initiative will enjoy the support of the district’s authorities and its inhabitants,” Bia∏o∏´ka district executive Jacek Kaznowski said in a statement.

Construction on GTC’s

Bia∏o∏´ka mall is expected to start in the spring of 2013 at the latest. At the moment, the shopping center project is in the planning stage, with the Tzur Architects and APA Wojciechowski studios preparing the design. The same architectural firms are now also designing a shopping mall that GTC plans to build in Warsaw’s Wilanów district.

Adam Zdrodowski

Warsaw Business Journal presents Real Estate weekly newsletter • Know about the newest projects before they’re on the market • Keep up to date on the latest tenders and auctions • Learn the latest trends in Poland’s dynamic office, residential and retail sectors • Find out who’s who in Polish real estate To subscribe: e-mail subscribe@wbj.pl or call +48 22 639 85 68, ext. 201 and sign up for free two-week no-obligation trial subscription

16

LOKALE IMMOBILIA – REAL ESTATE

www.wbj.pl

NOVEMBER 7-13, 2011

Urban revitalization

Price wars to last for at least two years: report

Silesia to receive z∏.243 mln for urban revitalization

Confidence among firms in Poland's construction sector has plummeted

The money is being given under the EU’s JESSICA initiative

The deteriorating situation in Poland’s construction industry and the expected lower number of orders from the public sector are forcing builders to undercut one another to secure contracts, according to a report

by PMR, a market research firm.

The results of the 15th edition of PMR’s twice-annual survey of high-level professionals from the management and operating divisions of Poland’s 200 largest construction firms show a significant deterioration in sentiment.

“PMR Business Confidence Indicator (BCI) for the construction industry had a value of -2.4 points in September 2011, demonstrating that construction companies were significantly less optimistic as to the present and future situation in the sector after two years of relative stabilization,” PMR said.

September’s reading was the lowest since March 2009. In March of this year, when the previous survey was released,

the BCI stood at 8.7.

Bart∏omiej Sosna, head construction analyst at PMR, wrote that the “sentiment among market participants was adversely affected by such factors as continued uncertainty in financial markets, most projects for Euro 2012 reaching completion, required cuts in public sector investment spending and the lack of clear signs of recovery in private investment.”

Sixty-six percent of respondents said that underpricing was the biggest impediment to doing business in the construction sector in Poland. That’s

compared with 57 percent in the last survey who said the same.

PMR said that the practice of reducing prices is set to continue for at least two more years. The negative effects of this, the report says, will be felt by all participants in the investment process.Thirty-three percent of respondents also said that the road-construction segment of the construction market would be the most attractive in the next two years. But that’s down significantly from the 81 percent seen in September David Ingham 2010.

Deconstructing confidence PMR Business Confidence Indicator for Poland’s construction sector, July 2004-September 2011

50 40 30 20 10 0 -10

Jul Feb Aug Mar Aug Mar Sept Mar Sep Mar Sep Mar Sep Mar Sep 2004 2005 2005 2006 2006 2007 2007 2008 2008 2009 2009 2010 2010 2011 2011 Source: PMR

Silesia voivodship will receive z∏.243 million in funding from the European Investment Bank (EIB) as part of an agreement to help revitalize cities in the region. The agreement, concluded between the European Union’s investment bank and Bank Ochrony Ârodowiska (BOÂ) under the EU’s JESSICA (Joint European Support for Sustainable Investment in City Areas) initiative, has established a new Urban Development Fund (UDF).

Over a three-year period, BOÂ will manage and distribute the UDF’s funds on projects that include “revitalization of urban areas, including postmilitary and post-industrial areas, regeneration of large elements of degraded or decapitalized urban infrastructure (with particular emphasis on houses with significant historic or architectural value), as well as improvement of the condition of housing stock,” the EIB wrote in a statement.

The JESSICA UDF already operates in Wielkopolska, Zachodniopomorskie and

COURTESY OF WIKIMEDIA COMMONS

Construction sector

Funding from the European Investment Bank will help revitalize Silesian cities like Katowice Pomorskie. The main aim of the funds is to lead to an “increase of cities’ competitiveness through stimulation of their economic potential and multifunctional approach to the development of degraded areas,” the EIB wrote.

The EIB currently has 10 investment projects under appraisal for Poland. These include a transportation and infrastructure project in Toruƒ and Bydgoszcz, and a project to

upgrade three streets in Warsaw. The bank is also considering providing funding for the A4 roadway in the south of Poland, a credit line for Bank Ochrony Ârodowiska and financing for the second metro line in Warsaw.

In 2010, the bank provided €5.5 billion in financing for Poland. For 2011, that figure has thus far reached €3.31 billion.

Ella Pa∏ka

Property-related stocks Security

DAILY EXECUTIVE DIGEST Poland A.M. gives you the biggest Polish stories of the day.

Have the most valuable news delivered to your inbox each weekday morning.

S i g n u p f o r a 2 - w e e k f r e e - t r i a l ! w w w. p o l a n d a m . p l G e r m a n v e r s i o n : w w w. p o l e n a m m o r g e n . p l

Closing price on Nov 3

% change (week)

52-week low

52-week high

% change (year)

Total shares

Market value (z∏. mln)

BUDIMEX

77.50

-3.49

64.00

109.20

CELTIC

20.20

0.00

15.55

60.55

-24.76

25,530,098

1,978.58

N/A

34,068,252

688.18

DOMDEV

30.53

5.24

23.50

50.80

-33.89

24,560,222

749.82

ECHO

3.55

-3.79

3.24

5.55

-30.26

420,000,000

1,491.00

ELBUDOWA

100.20

-4.57

98.00

177.00

-43.99

4,747,608

475.71

ENERGOPLD

2.50

0.00

2.45

4.10

-33.69

70,972,001

177.43

ERBUD

20.00

-2.20

14.70

61.00

-62.26

12,644,169

252.88

GANT

7.90

-4.24

7.30

19.60

-58.27

20,499,953

161.95

GTC

11.30

-4.07

9.33

24.98

-50.76

219,372,990

2,478.91

HBPOLSKA

0.86

-2.27

0.70

3.33

-74.33

210,558,445

181.08

JWCONSTR

7.57

1.20

6.10

18.00

-56.49

54,073,280

409.33

LCCORP

1.13

3.67

0.85

1.69

-31.10

447,558,311

505.74

MARVIPOL

8.99

-0.11

7.22

12.81

-15.19

36,923,400

331.94

MIRBUD

2.45

-3.92

2.25

4.75

-39.05

75,000,000

183.75

MOSTALWAR

24.50

-1.53

19.70

65.45

-62.60

20,000,000

490.00

MOSTALZAB

1.39

-2.80

1.07

3.55

-60.17

149,130,538

207.29

ORCOGROUP

17.60

-5.38

15.70

40.00

-41.43

17,053,866

300.15

PBG

85.00

-1.16

56.05

225.80

-60.92

14,295,000

1,215.08

PLAZACNTR

2.17

0.00

1.80

5.15

-56.16

297,174,515

644.87

POLAQUA

7.80

-0.64

7.50

20.60

-52.73

27,500,100

214.50

POLIMEXMS

1.53

-6.13

1.23

4.30

-62.68

521,154,076

797.37

POLNORD

15.47

9.95

11.03

37.14

-58.19

23,798,439

368.16

RANKPROGR

9.01

-2.07

8.64

13.60

-15.79

37,145,050

334.68

ROBYG

1.20

2.56

1.04

2.13

-40.30

257,390,000

308.87

RONSON

1.04

0.97

0.94

1.66

-36.20

272,360,000

283.25

TRAKCJA

1.69

-3.43

1.39

4.96

-65.51

232,105,480

392.26

ULMA

63.00

1.61

57.00

88.00

-24.96

5,255,632

331.10

UNIBEP

5.75

-3.04

4.47

10.30

-34.29

33,927,184

195.08

WARIMPEX

5.17

-4.08

5.10

10.89

-42.23

54,000,000

279.18

ZUE

7.90

3.95

7.45

15.06

-47.82

22,000,000

173.80

LOKALE IMMOBILIA – REAL ESTATE

NOVEMBER 7-13, 2011

www.wbj.pl

17

The building on Plac Stanis∏awa Ma∏achowskiego will be turned into office space The second investment, on ul. Mazowiecka, is a smaller project. Overall it will offer 2,500 sqm of leasable space, the channel reported, without saying if the developer has received permission to renovate the building.

The first storey of the build-

ing has high ceilings, “which would be ideal for a club or a restaurant, which would fit right in with ul. Mazowiecka,” Katarzyna Baranowska, of Hochtief Development Poland, was quoted by TVN Warszawa as saying.

Izabela Depczyk

Warsaw Stock Exchange-listed developer Echo Investment has sold its Centrum Handlowe Echo shopping center in Pabianice, ¸ódzkie voivodship, to PH 3. The value of the transaction amounted to more than €23.8 million.

“This is another transaction in the Polish market in which both the seller and the buyer are companies with Polish capital. The demand for retail facilities in regional cities is very large with the sector being attractive not only to foreign, but also to Polish investors,” Adrian Karczewicz from Echo Investment, which was responsible for the sales deal, said in a statement.

The Centrum Handlowe Echo project is located on Pabianice’s ul. Zamkowa.

Designed by the Pracownia Uniprojekt studio, the scheme comprises 15,000 sqm of retail space and offers 570 parking spaces. Tenants include Piotr i Pawe∏, Jysk, NOMI, RTV Euro AGD, Reserved, Rossmann and CCC. One of the largest real estate investors and developers in Poland, Echo Investment focuses on the residential, shopping center, office

and hotel sectors of the country’s property market. To date, the company, which is also present in the Romanian, Hungarian and Ukrain-

ian markets, has completed almost 90 projects in Poland with a total area of more than 800,000 sqm.

Adam Zdrodowski

COURTESY OF ECHO INVESTMENT

Developer Hochtief Development Poland reportedly plans to convert two historic tenement buildings in Warsaw’s city center into offices.

The buildings are both owned by Hochtief. One is located near Plac Stanis∏awa Ma∏achowskiego, the other on ul. Mazowiecka.

TVN Warszawa reported that the developer is financing the project on Plac Stanis∏awa Ma∏achowskiego, which it wants to turn into an office building. The property located on ul. Mazowiecka, meanwhile, is earmarked for commercial as well as office space.

When contacted by Lokale Immobilia, Hochtief Development Poland representatives declined to comment on the report.

According to TVN Warszawa, the company has already received permission to start renovation work on the building on Plac Stanis∏awa Ma∏achowskiego. Under the supervision of a conservator, the developer aims to modernize, but not completely change, the appearance of the structure, the report said. The building will offer a total of 14,000 sqm of space for rent.

VERONIKA JOY/WBJ

Hochtief to transform Echo Investment sells two Warsaw buildings Pabianice shopping mall

The sale of Pabianice mall was worth €23.8 million

18

LOKALE IMMOBILIA – REAL ESTATE

www.wbj.pl

NOVEMBER 7-13, 2011

Gant launches Amber Park housing project in Kraków large-scale housing investments in several large Polish cities. “After the capital of Ma∏opolskie voivodship, we will launch major investments in cities including Wroc∏aw and Warsaw,” Mr Antkowiak said in a statement.

Homes in the Amber Park development, which is scheduled for completion in the second quarter of 2013, will be sized from 27-91 sqm.

The apartments are priced from slightly over z∏.5,000 per sqm.

COURTESY OF M+G

its own funds, Andrzej Szornak, vice president of the management board of Gant Development, said in a statement.

According to Gant Development president Karol Antkowiak, the company has observed unmet demand on the part of its potential Kraków clients over the past few months. He added that the developer’s stock of housing in the city has already been largely depleted.

Gant Development is now preparing a number of other

Dom Development expands Wilno project in Warsaw

Adam Zdrodowski

COURTESY OF GANT DEVELOPMENT

Warsaw Stock Exchange-listed developer Gant Development has launched construction on its Amber Park multifamily residential project in Kraków, Ma∏opolskie voivodship. The scheme will comprise 388 apartments with a total of almost 20,000 sqm of usable space.

The start of construction follows Gant’s recent acquisition of more than one hectare of land on Kraków’s ul.

Bochenka, where the project will be built. The company financed the acquisition with

The Amber Park development is scheduled to be completed in Q2 2013

Warsaw-based developer Dom Development has launched construction and sales of apartments in a new phase of its Wilno residential project in the Polish capital. On offer are 132 units scheduled for completion in the second half of 2013.

The Wilno development is located in the Elsnerów neighborhood of Warsaw’s Targówek district. Dom Development is currently building a total of 463 apartments within the investment, of which 214 can still be bought.

Units in the latest phase of the scheme are sized from

30.3-64.8 sqm and priced from z∏.6,300-6,780 per sqm. Many of them are eligible for the government’s Family on its Own preferential mortgage program for first-time home buyers.

The developer plans to build a new railway stop in the vicinity of Wilno by the end of 2013. The facility would enable the inhabitants of the estate easy access to a station of the second subway line which is now being built in Warsaw’s Praga Pó∏noc district.

Listed on the Warsaw Stock Exchange since 2006,

Dom Development is currently involved in a total of 20 residential investments in Warsaw and Wroc∏aw including different phases of the Osiedle Saska, Adria, Klasyków, Derby and Miasteczko Regaty schemes in the Polish capital.

In the third quarter of 2011, the developer sold 454 apartments, which was over 42 percent more than in the same period of last year. The company’s revenues and profit in Q3 amounted to z∏.201.5 million and z∏.36.6 million, respectively.

Adam Zdrodowski

Investment & Occupier Forum November 30th 2011 Warsaw, Poland – Marriott Hotel Organized by – EuropaProperty & ceegbc.org For further information contact: Craig Smith at +48 604 144 769 or craig@europaproperty.com Anna Kaliszewska at +48 601 382 667 or anna@europaproperty.com

Associate Partner:

Media Partner: Commercial Real Estate NEWS

36 Projects already nominated

Central & Eastern European

Green Building Awards N

ILDING PROF BU E

NALS IO SS

ceegbc.org

CEE G RE E

The

AS

S O CIATIO N

MARKETS

NOVEMBER 7-13, 2011

www.wbj.pl

Stocks report

world stock indices DJIA

NASDAQ

12,004.47 (Nov 3 close)

S&P500

2,697.97 (Nov 3 close)

-1.67% (for the week)

FTSE100

1,261.15 (Nov 3 close)

-1.48% (for the week)

DAX

5,545.60 (Nov 3 close)

-1.82% (for the week)

-2.94% (for the week)

Greece in the spotlight

NIKKEI225 6,133.18 (Nov 3 close)

8,640.42 (Nov 3 close)

-3.23% (for the week)

-3.21% (for the week)

CHANGE: 3.69%

CHANGE: 0.80%

CHANGE: 0.28%

CHANGE: -6.01%

CHANGE: -12.05%

CHANGE: -16.54%

(year to Nov 3)

(year to Nov 3)

(year to Nov 3)

(year to Nov 3)

(year to Nov 3)

(year to Nov 3)

52-week high: 12,928.50

52-week high: 2,887.75

52-week high: 1,370.58

52-week high: 6,105.80

52-week high: 7,600.41

52-week high: 10,891.60

52-week low: 10,362.30

52-week low: 2,298.89

52-week low: 1.074.77

52-week low: 4,791.00

52-week low: 4,965.80

52-week low: 8,227.63

Andrew Nawrocki, WBJ market analyst The first week of November brought with it renewed fears concerning the situation in Greece. After a month of strong gains, markets dipped early last week.

Frightening investors early on in the week were two events. First, on Monday October 31, investors witnessed futures broker MF Global Holdings file for bankruptcy, after big bets on European sovereign debt went wrong. A day later, investors were stunned as the Greek prime minister announced plans to hold a referendum on Greece’s euro-zone bailout package.

Throughout Europe indices plunged, with financials hit hardest.

Though markets were closed in Poland on November 1, both the WIG and WIG20 lost about two and a quarter percent each in the week’s first two days of trad-

Major indices WIG

41,313.92 (November 3 close)

WIG20

2,397.35 (November 3 close)

03.11

02.11

31.10

28.10

27.10

26.10

25.10

24.10

21.10

20.10

19.10

18.10

17.10

03.11

02.11

31.10

28.10

27.10

26.10

25.10

24.10

21.10

2,100 20.10

37,000

19.10

2,180

18.10

38,000

17.10

2,260

14.10

39,000

13.10

2,340

12.10

40,000

11.10

2,420

10.10

41,000

07.10

2,500

06.10

42,000

14.10

52-week low: 2,089.84

13.10

Change year to November 3: -12.97%

12.10

52-week low: 36,549.47

11.10

52-week high: 2,932.62

Change year to November 3: -13.30%

10.10

Change for the week: -0.72%

07.10

52-week high: 50,371.74

06.10

Change for the week: -0.95%

Top 5 WIKANA 06MAGNA PRONOX KREZUS CHEMOS

Closing 0.63 0.45 0.32 6.43 0.29

% change (week) 52-week high 687.50 0.77 66.67 0.88 52.38 1.76 23.89 6.47 20.83 0.67

52-week low 0.06 0.19 0.14 1.86 0.18

Top 5 PEKAO PKNORLEN PZU ASSECOPOL PGNIG

Closing 153.00 41.39 343.00 49.40 3.95

% change (week) 2.68 2.20 1.57 0.96 -0.75

52-week high 197.20 58.85 398.60 56.60 4.65

52-week low 115.10 30.33 283.10 34.50 3.25

Bottom 5 CEDC TVN MIRACULUM AGROWILL ASBIS

Closing 15.35 12.30 0.43 0.78 1.09

% change (week) -23.21 -15.75 -15.69 -15.22 -14.84

52-week low 14.63 10.53 0.34 0.62 1.03

Bottom 5 TVN GETIN POLIMEXMS GTC TAURONPE

Closing 12.30 8.15 1.53 11.30 5.40

% change (week) -15.75 -6.86 -6.13 -4.07 -3.40

52-week high 18.53 15.29 4.36 25.19 6.92

52-week low 10.53 6.22 1.19 9.12 4.65

52-week high 83.50 18.53 1.18 1.22 4.25

19

ing. Hit hardest were shares of TVN, with the television network shedding over 15 percent after news of a complex deal with Canal+ divided investor opinion.

On Thursday, November 3, markets experienced a relief rally, with global stocks and crude oil rising on hopes that Greece would abandon plans to hold a referendum.

Also pushing stocks upwards was a surprise European Central Bank interest-rate cut as well as uplifting comments from US Federal Reserve chairman Ben Bernanke, who pledged to do more if US economic conditions worsened.

Friday saw markets decrease, largely on the back of slightly weaker-thanexpected non-farm payroll data from the US. The WIG closed lower by 0.98 percent, while the WIG20 lost 1.44 percent. ●

Currency report

Other indices sWIG80

NewConnect

42.81 (November 3 close)

WIG-Banki

5,984.35 (November 3 close)

SOURCE: WSE

03.11

02.11

31.10

28.10

27.10

26.10

25.10

24.10

21.10

20.10

19.10

18.10

17.10

03.11

02.11

31.10

28.10

27.10

26.10

25.10

24.10

21.10

20.10

5,400 19.10

41.0 18.10

5,540

17.10

41.6

14.10

5,680

13.10

42.2

12.10

5,820

11.10

42.8

10.10

5,960

07.10

43.4

06.10

6,100

14.10

52-week low: 4,944.19

13.10

Change year to November 3: -14.04%

12.10

52-week low: 42.02

11.10

52-week high: 7,387.49

Change year to November 3: -32.49%

10.10

Change for the week: -1.25%

07.10

52-week high: 64.04

06.10

Change for the week: 0.12%

44.0

Pawe∏ Kordala, X-Trade Brokers Dom Maklerski SA

03.11

02.11

31.10

28.10

27.10

26.10

25.10

24.10

52-week low: 8,483.22

21.10

18.10

52-week high: 12,932.00

17.10

14.10

13.10

06.10

03.11

02.11

31.10

28.10

27.10

26.10

25.10

24.10

21.10

20.10

8,600

19.10

2,100

18.10

8,720

17.10

2,160

14.10

8,840

13.10

2,220

12.10

8,960

11.10

2,280

10.10

9,080

07.10

2,340

06.10

9,200

12.10

Change year to November 3: -26.36%

11.10

52-week low: 2,086.64

10.10

Change year to November 3: -18.84%

07.10

Change for the week: -1.77%

2,400

The drama continues

9,019.91 (November 3 close)

52-week high: 2,987.72

20.10

2,278.65 (November 3 close)

19.10

mWIG40 Change for the week: -2.09%

Last week’s drama in Greece brought an increased level of volatility to financial markets.

And those who expected a long-lasting rally as a result of European leaders’ agreement on anti-crisis measures last month are probably much more skeptical now.

Speculation about the collapse of the Greek government and the possibility of the implementation of reforms in Greece have continued to affect frustrated markets. What’s more, PMIs (Purchasing Managers Indices) in Europe and the ISM report in the US leave no doubt that economies all around the world are slowing. This is the reason why the EUR/USD is now much lower than a week ago, down 2.8 percent to $1.38.

These factors have also had an impact on the Polish

currency market. However, in comparison to other emerging market currencies, the z∏oty seems to be relatively strong, at z∏.4.33 against the euro, z∏.3.13 against the dollar and z∏.3.55 against the Swiss franc. The strength of the Polish currency is the result of healthy economic fundamentals, with Poland’s GDP growth looking likely to exceed 4 percent this year.

Moreover, Poland’s PMI figures, which were better than the market had expected, suggest that the near future will also be positive for Polish companies.

However, those fundamentals will only really begin to seriously matter to currency markets if the Greek crisis and other issues related to the PIIGS countries start to disappear from the headlines. ●

currency rates 4.0230

4.0758

4.1125

04.11

03.11

02.11

31.10

28.10

04.11

03.11

02.11

31.10

3

SOURCE: NBP

4

3.9785

4.0160 0.1029

0.1035

0.1047

0.1029

0.1024

PLN-100JPY

5

0.10

28.10

04.11

03.11

02.11

31.10

04.11

03.11

28.10

3.5

02.11

PLN-RUB

0.12

3.5574

3.6082

3.6295

3.5612

3.5319

5.0259

5.0722

5.1353

4.9683

4.9085

PLN-CHF

4.0

4

31.10

04.11

03.11

5

28.10

3.1800

3.2093 02.11

31.10

04.11

03.11

02.11

31.10

28.10

28.10

3.0

4

PLN-GBP

6

3.1385

3.0461

4.3464

3.1024

PLN-USD

3.5

4.3809

4.4146

4.3190

4.3433

PLN-EUR

5

20

THE LIST

www.wbj.pl

NOVEMBER 7-13, 2011

Construction & Real Estate

Architectural Firms Ranked by revenue from architectural design in 2010

www.bookoflists.pl

Full-time employees / Year founded

Eko Park Violono (Warsaw); Nie jesteÊ sam” TVN foundation’s Cancer Prevention Center Maciej Nowicki’s Award for Prosta Tower; 1st prize (Warsaw); Harmony Office Center II in investors contest for Park Plaza in Szczecin (Warsaw); Apartamenty Piaskowa concept (Wroc∏aw); Prosta Tower (Warsaw)”

65 25

WND 1982

Ewa Kury∏owicz; Piotr Kuczyƒski

L’Oreal (Kanie); 3M (Wroc∏aw); Pittsburgh Glass Works (Komorniki); Weyerhaeuser (Gdaƒsk)

Best Workpace in Ireland (2011); Sustainable Design and Research Award (2011); Project/Construction Management Firm of the Year (2010); Visionary School of Design for Devereux Architects (2011); Construction Industry Safety Excellence (2011)

30 20

233 1997

✓ ✓ ✓ ✓

Ethanol production plant for Bioagra (GoÊwinowice); production plant for TBAI (Wykroty); extension and modernization of “Czajka” Wastewater Treatment Plant (Warsaw); terephthalic acid installation for PKN Orlen (W∏oc∏awek)”

Leader of Polish Business (2007, 2008, 2009) contest organized by Business Centre Club; Modernization of the Year (2008) - contest organized by Targi Pomorskie; Construction of the Year (2008, 2009) - contest oraganized by PZITB; Engineering Project of the Year (2008, 2010) contest organized by IPB

15 7

225 1947

Jaros∏aw St´pniewski

✓ ✓ ✓ ✓

✓ -

Pol-Aqua headquarters (Warsaw); KLASYKÓW residential area - 1st phase (Warsaw); SASKA residential area - 1st phase (Warsaw)

1st prize for District Court in Siedlce; 2nd prize for Schindler Polska headquarters; 2nd prize for project of Sinfonia Varsovia’s concert hall

55 16

30 1990

Wojciech Hermanowicz

✓ -

✓ ✓ ✓

✓ ✓ ✓

1st prize in contest organized by SARP for Convention Center (2008); 1st prize for Cristal Park office building (Warsaw); TRIO International Sports Center (2008); 1st prize in contest residential building (Warsaw); Avantgarden National organized

by SARP for Hotel 5* Rennaissance residential complex (Warsaw) (2009); 1st prize for Municipal Stadium in ¸ódê (2009); 1st prize for Chopin Airport City (2010)

44 8

53 1989

Wojciech Zych

✓ ✓ ✓

✓ ✓ ✓

✓ ✓ ✓

✓ ✓

Francuska Office Centre (Katowice); Galeria S∏oneczna (Radom); White Square Office Award for the best class-A office building 2010 for Centre (Moscow); Inkubator White Square Office Centre; CEE Real Estate Award Przedsi´biorczoÊci (Gdaƒsk); Equator II/Zenith Architect of the Year (2009) (Warsaw)

58 17

62 1991

Szymon Wojciechowski; Micha∏ Sadowski, Witold Dudek, Marcin Grzelewski

2.0 14.2 6.5 WND

✓ ✓ ✓

✓ ✓

✓ ✓

✓ -

WND 8.4 8.4 8.4

WND 8.5 8.5 8.5

✓ ✓ ✓

✓ ✓ ✓

✓ -

✓ ✓ ✓ -

PRC Architekci Sp. z o.o.

Al. Ujazdowskie 6A, 00-461 Warsaw 9 22 622-2828/22 622-2929 architekci@prc.com.pl www.prc.com.pl

5.0 7.9 7.6 5.2

5.9 8.8 8.2 5.2

✓ ✓ ✓

✓ ✓ ✓

-

Dedeco Sp. z o.o. ul. Âw. Ducha 5A/15, 70-205 Szczecin 10 91 484-1340/91 484-0982 office@dedeco.pl www.dedeco.pl

3.3 7.6 3.2 8.9

3.3 7.7 3.2 8.9

✓ ✓ ✓

✓ ✓ ✓

Broadway Malyan Polska Architekci i Projektanci Sp. z o.o.

Rondo ONZ 1, 00-124 Warsaw 11 22 544-9030/22 544-9039 warsaw@broadwaymalyan.com www.broadwaymalyan.com

WND 6.9 WND 13.3

WND 6.9 WND 13.3

✓ ✓ ✓

FS&P Arcus Sp. z o.o. ul. Gen. Abrahama 12/11, 03-982 Warsaw 11 22 671-9525/22 671-1236 fsparcus@fsparcus.com.pl www.fsparcus.com.pl

3.1 6.9 7.1 8.1

3.3 6.9 7.1 8.1

Epstein Sp. z o.o. ul. Wo∏oska 9A, 02-583 Warsaw 13 22 525-0300/22 525-0301 epstein@epstein.com.pl www.epstein.com.pl

4.3 5.4 6.8 13.4

S.A.M.I. Architekci Mariusz Lewandowski i Wspólnicy Sp. z o.o. ul. Dereniowa 2/9, 02-679 Warsaw 14 22 826-1015/22 826-1327 biuro@samiarchitekci.com www.samiarchitekci.com

Company name Address Tel./Fax E-mail Web page

Revenue from architectural design (z∏. mln)

Total revenue (z∏. mln)

Office / Retail / Residential

Industrial / Public / Historical buildings

Land acquisition / Pre-investment / Cost estimate / Feasibility studies

Top local executive / Title

Rank

Number of architects / Licensed architects

Investor subsitution / Investment supervision / Document preparation for tenders / Management of tenders

Services

Speciality

1st half of 2011 / 2010 / 2009 / 2008

Kury∏owicz & Associates Sp. z o.o. ul. Berezyƒska 25, 03-908 Warsaw 1 22 616-3798/22 616-3799 apaka@apaka.com.pl www.apaka.com.pl

WND 26.1 38.9 49.0

WND 26.1 38.9 49.0

✓ ✓ ✓

✓ ✓ ✓

✓ ✓ ✓ ✓

WND WND ✓ ✓

PM Group Polska Sp. z o.o. ul. Kleciƒska 125, 54-424 Wroc∏aw 2 71 354-8900/71 354-8901 wroclaw@pmgroup-global.com www.pmgroup-global.com

11.0 23.0 19.0 22.0

20.0 42.0 35.0 46.0

✓ ✓ ✓

✓ ✓ ✓

✓ ✓ ✓ ✓

✓ ✓ ✓ ✓

Prochem SA ul. Powàzkowska 44C, 01-797 Warsaw 3 22 326-0100/22 326-0101 prochem@prochem.com.pl www.prochem.com.pl

WND 22.2 32.4 36.0

WND 127.0 183.0 380.0

✓ ✓ -

✓ ✓ -

✓ ✓ ✓

Hermanowicz Rewski Architekci Sp.j. ul. Klimczaka 8/65, 02-797 Warsaw 4 22 673-8556/22 673-8566 sekretariat@hermanowicz.pl www.hermanowicz.pl

WND 21.0 17.0 11.5

WND 21.0 17.0 11.5

✓ ✓ ✓

✓ ✓ ✓

Jems Architekci Sp. z o.o. ul. Gagarina 28A, 00-754 Warsaw 5 22 559-2800/22 559-2803 jems@jems.pl www.jems.pl

7.4 19.1 24.2 19.5

7.4 19.1 24.2 19.5

✓ ✓ ✓

APA Wojciechowski Sp. z o.o. ul. Domeyki 5, 04-146 Warsaw 6 22 610-0085/22 610-6278 apa@apa.com.pl www.apa.com.pl

4.7 16.0 14.6 24.1

WND 16.0 14.6 24.1

SUD Architekt Polska Sp. z o.o. ul. Foksal 10, 00-366 Warsaw 7 22 332-4832/22 332-4831 nroques@sudgroupe.pl www.sudarchitectes.com

2.0 14.2 6.5 WND

Medusa Group Sp. z o.o., Sp.k. ul. Józefczaka 35, 41-902 Bytom 8 32 720-3077/32 720-3075 office@medusagroup.pl www.medusagroup.pl

Artur Jasiƒski i Wspólnicy Biuro Architektoniczne Sp. z o.o. ul. S∏onecznikowa 8A/2, 30-213 Kraków 15 12 661-8120/12 661-2098 aj@ajbiuro.pl www.ajbiuro.pl Przedsi´biorstwo Us∏ug Consultingowych Wadeco Sp. z o.o. ul. Madaliƒskiego 20, 02-513 Warsaw 16 22 856-5034/22 856-5043 wadeco@wadeco.pl www.wadeco.pl

Notable recently completed projects

Recent prizes

WND

Con Murphy Managing Director

President

Partner

President

President; Vice-Presidents

2nd prize for educational eco-energy innovation center “Dom Planety” concept (2010)”

16 5

11 1996

Nicolas Roques; Jocelyn Fillard

Platynowe Wiert∏o for Roedl & Partner office building (2010); 3rd prize in contest organized by SARP for Maritime Museum in Szczecin (2011); award in contest organized by SARP for Radio and Television Faculty in Katowice (2011); Superjednostka for concept of adaptation of the old granary in Gliwice into lofts (2010)

21 2

19 1998

Przemys∏aw ¸ukasik; ¸ukasz Zaga∏a

✓ -

1st prize for the concept of architectural building modernization of Pa∏acyk Przeêdzieckich for Ministry of Foreign Affairs in Warsaw; 1st prize for Atrium Best Western Premiere (Katowice); Restaura South; nomination for Central and Eastern Europe Górskiego (Warsaw); Park Biznesu Teofilów Quality Awards for IBB Andersia Hotel in Poznaƒ (¸ódê); Restaura Maraton Gardens (Poznaƒ) (2007); Budowa Roku for IBB Andersia Hotel in Poznaƒ (2007); Torchbearer 2010; Top Hotel Sport 2010

31 14

WND 1998

Andrzej Michalik

✓ ✓ ✓

✓ ✓ ✓

Osiedle Pionierów (Szczecin)

Award for District Court in Siedlce concept (2011); award for TS Wis∏a Hall in Kraków concept (2011); 2nd prize for UDT headquarters in Bydgoszcz concept (2010); 2nd prize for District Court in Grajewo concept (2010); 1st prize for Academic Sport and Education Centre in ¸ódê (2010)

27 11

25 1994

Piotr Hofman

✓ ✓ -

✓ ✓ ✓

✓ ✓ ✓

WND

Best Small Shopping Center Award at Shopping Center Awards in Warsaw (2009); 2nd prize for retail and residential complex on ul. Grójecka/ul.

Banacha (2009); award for Pediatric Hospital for Medical University of Warsaw (2010)

18 3

20 2002

Melvin Davis

✓ ✓ ✓

✓ ✓ ✓

✓ ✓ ✓ ✓

✓ ✓ ✓ ✓

Przy Promenadzie residential area (Warsaw); residential building on ul. Belottiego (Warsaw); Wilga 7 (Warsaw)

WND

26 11

30 1988

Mariusz Âcis∏o

7.1 9.1 11.4 22.3

✓ ✓ ✓

✓ ✓ ✓

✓ ✓ ✓ ✓

✓ ✓ ✓ ✓

Konstruktorska Business Center (Warsaw); RTW (Warsaw)

WND

29 19

70 1971

Janusz T. Lichocki

3.4 3.7 7.0 10.6

3.4 3.8 7.1 10.9

✓ ✓ ✓

✓ ✓ ✓

✓ ✓ ✓ ✓

✓ ✓ ✓ ✓

Multifamily apartment buildings on ul.

Dereniowa (Warsaw)

Barbara and Stanis∏aw Brukalscy award for the concept of extending of buiding on ul. Su∏kowskiego in Warsaw (2011); SARP award for Supreme Administrative Court of Poland (2009); 1st prize for an office buiding complex on ul. Wilanowska 372 in Warsaw (2008); 2nd prize for Special Art Zone in ¸ódê concept (2008); Platynowe Wiert∏o (2007)

23 7

16 1999

Maciej Majewski

WND 2.8 2.4 4.8

WND 2.8 2.4 4.9

✓ ✓ ✓

✓ -

✓ ✓ ✓

✓ -

1st prize for Multimedial Town in Technology Park in Nowy Sàcz (2009); 2nd prize for Centrum Obs∏ugi District Court (Âwidnik); sports arena Inwestora in Kraków (2008); 2nd prize for sports (Wieliczka); residential and retail building arena Cracovia in Kraków (2008); 3rd prize for (Kraków); B∏onia residential area (Nowy Sàcz) Administrative Center in Rzeszów (2009); 3rd prize for Silesian Museum in Katowice (2007)

10 5

WND 2002

Artur Jasiƒski

0.9 2.1 2.2 2.5

1.1 2.5 2.6 3.2

✓ ✓ ✓

✓ ✓ ✓

✓ ✓ ✓ ✓

✓ ✓ WND ✓

10 3

WND 1996

Stanis∏aw Chrzanowski

WND

ING Bank headquarters; Roedl & Partner office building (Gliwice)

Zen Garden residential complex (Szeligi); residential complex on ul. Dalanowska 24B (Warsaw)

WND

Directors

Main Architects

President

President

Board Member

President

President

President

Director

President

THE LIST

NOVEMBER 7-13, 2011

✓ ✓ ✓

✓ ✓

✓ ✓ ✓

✓ -

Ergo Arena multifunction sports and 1st prize for “Centrum Pieniàdza NBP” concept entertainment arena (Sopot/Gdaƒsk); for Aquamarina and for ErgoAquamarina (Mi´dzyzdroje); swimming pool (2011); Budowa Roku Arena (2010) (Cz∏uchów)

WND 1.9 2.9 6.1

WND 1.9 2.9 6.1

✓ ✓ ✓

✓ ✓ ✓

✓ ✓ ✓ ✓

✓ ✓ ✓ ✓

Technical University of Opole, Department of Civi Engineering (Opole); CH Twierdza (K∏odzko); Communication Junction Stadium Euro 2012 (Wroc∏aw); Platinum Palace Hotel (Wroc∏aw); private villa (Wis∏a)

Industrial / Public / Historical buildings

1st half of 2011 / 2010 / 2009 / 2008

KIPP Projekt Sp. z o.o. ul. Rakowiecka 36, 02-532 Warsaw 17 22 565-4000/22 565-4001 kipp@kipp.com.pl www.kipp.com.pl Studio Architektoniczne Ozone, Czaus, Bernardi Sp. z o.o. ul. Armii Krajowej 6C, 50-540 Wroc∏aw 18 71 364-7500/71 336-0231 ozone@ozone.com.pl www.ozone.com.pl KAPS - Architekci Korneluk Parysek S∏owik Sp. z o.o.

Al. Wojska Polskiego 41/47, 01-503 Warsaw 19 22 896-9360/22 896-9361 pracownia@kaps-architekci.pl www.kaps-architekci.pl

Notable recently completed projects

Recent prizes

2nd prize in World Architecture Triennale in Nara (1995)

Full-time employees / Year founded

Investor subsitution / Investment supervision / Document preparation for tenders / Management of tenders

0.6 2.1 3.0 3.1

Office / Retail / Residential

Number of architects / Licensed architects

Land acquisition / Pre-investment / Cost estimate / Feasibility studies

Rank

0.6 2.0 2.8 2.9

Revenue from Total revenue architectural (z∏. mln) design (z∏. mln)

21

Services

Speciality Company name Address Tel./Fax E-mail Web page

www.wbj.pl

Top local executive / Title

10 3

8 1988

Adrian Górecki

19 1999

Grzegorz Czaus; Gianmara Bernardi; Ewa Krzymiƒska; Marek Âwieboda; Ewa Kawulok-Matkowska

13 8

President

WND

3.1 1.3 2.3 7.9

3.1 1.3 2.3 7.9

✓ ✓ ✓

✓ ✓ ✓

✓ ✓ ✓ ✓

✓ ✓ ✓ ✓

Park Project Group (Warsaw); residential buiding on ul. Braci Za∏uskich (Warsaw); Police headquarters (Lublin); Olimpic Park Hotel (Ustronie)

1st prize in contest for revitalization of Poland’s November Uprising Mausoleum in Ostro∏´ka; award for design of Museum of Polish Army in Warsaw

14 3

11 2002

Maciej Parysek

3dprojekt Jakub Krzysztofik ul. ¸agiewnicka 121, 91-863 ¸ódê 20 501-499-773/42 639-5169 ext.25 jk.3dprojekt@gmail.com www.3dprojekt.com.pl

WND 1.1 1.5 0.9

WND 1.1 1.5 0.9

✓ ✓ ✓

✓ ✓ ✓

✓ ✓ ✓ ✓

✓ ✓ ✓ ✓

Educational and sports complex (Gomulin); Dormitory no. 2 for Medical University of ¸ódê (¸ódê); school and boarding school (¸ódê); retail and residential building on ul.

Kaliska (¸ódê); adaptive reuse of historic bank building for ¸ódê Voivodship sejmik headquarters (¸ódê)

The Best residential Building Award for “S∏oneczne Tarasy” in ¸ódê (2010)

9 4

8 2000

Jakub Krzysztofik

vsf-creative Sp. z o.o. ul. Nowogrodzka 50/515, 00-695 Warsaw 21 605-966-350 vsf-creative@vsf-creative.com www.vsf-creative.com

WND 1.0 -

WND 1.0 -

✓ ✓ ✓

✓ ✓ -

✓ ✓ ✓

✓ -

WND

WND

5 2

4 2010

Paul Ayre

Jasiƒski Kruszewski Architekci Sp. z o.o. ul. Rakowiecka 45/11, 02-528 Warsaw 22 22 646-0750 /22 646-0713 architektura@jk-architekci.pl www.jk-architekci.pl

WND 0.9 1.1 1.0

WND 0.9 1.1 1.0

✓ ✓ ✓

✓ ✓ ✓

✓ ✓ -

✓ ✓ -

KWINTET multifamily residential complex (Warsaw)

WND

7 2

7 2004

Romuald Kruszewski; Mariusz Jasiƒski

0.5 0.9 0.9 0.8

0.5 0.9 0.9 0.8

✓ ✓ ✓

✓ ✓ -

✓ ✓ ✓

✓ ✓ ✓ ✓

PoÊwi´cka residential area (Wroc∏aw); hotdip galvanizing plant (Rawa Mazowiecka); multifamily buildings complexes on ul.

Chopina and on ul. ˚wirki i Wigury (Wroc∏aw); CHRIS Hotel (Radków)

WND

4 2

2 1992

Andrzej Bartnik

WND 0.7 WND WND

WND 0.7 WND WND

✓ ✓ ✓

✓ ✓ -

-

✓ -

Wacker Neuson headquarters (O˝arów Mazowiecki)

2nd prize for concept of Polish History Museum (2009/2010)

5 2

9 1992

Miros∏aw Jednacz

0.3 0.5 0.6 1.0

0.3 0.5 0.6 1.0

✓ ✓ ✓

✓ ✓

✓ -

✓ ✓ -

Crown Tower (Warsaw); Poloneza Award in contest for funeral chapel with crematory Investment (Warsaw); building for archives in Koszalin municipal cementery (2010-2011); (Izabelin); residential building on ul. honorable mention in contest for residential complex Kociszewskich (Warsaw) on ul. RzemieÊlnicza/ul. Szafrana in Kraków (2011)

7 2

8 1993

Konrad Kucza-Kuczyƒski

PiÊniak i PiÊniak Architekci Sp.c.

Autorska Pracownia Projektowa ul. Storczyków 26A, 05-807 Podkowa LeÊna 26 22 758-9232/22 758-9032 archpisniak@tlen.pl www.archipisniak.waw.pl

0.1 0.1 0.1 WND

0.1 0.1 0.1 WND

✓ ✓

✓ ✓

-

-

Residential buildings (Mi´dzylesie; Warsaw); office building (Grodzisk Mazowiecki)

2 1

2 1991

Zbigniew PiÊniak

Artinex, osoba fizyczna ul. Turecka 4/20A, 00-745 Warsaw NR 22 851-0945/22 851-0944 artinex@webmedia.pl www.artinex.pl

WND WND WND WND

WND WND WND WND

✓ ✓ ✓

✓ ✓ ✓

✓ ✓ ✓ ✓

✓ ✓ ✓

9 2

12 1990

Krzysztof Wolski

WND WND WND WND

WND WND WND WND

✓ ✓ ✓

✓ ✓ ✓

✓ ✓ ✓ ✓

✓ ✓ ✓ ✓

BMW/Mini car showroom (Katowice); extension of Wy˝sza Szko∏a Techniczna (Katowice); Garden Plaza (Zàbki)

WND

10 6

6 1991

Miros∏aw Polak; Marek Skwara

WND WND WND WND

WND WND WND WND

✓ ✓ ✓

✓ ✓ -

-

✓ -

WND

Wiktoria - Mazowiecki Znak JakoÊci (2010)

2 1

2 2005

Dagmara Ob∏uska

WND WND 1.2 WND

WND WND WND WND

✓ ✓ ✓

✓ ✓ ✓

WND WND WND WND

WND WND WND WND

CKF (ZamoÊç); DolnoÊlàskie Centrum Filmowe OdraFilm (Wroc∏aw)

Award from Lubelskie’s Governor for CFK in ZamoÊç

7 2

5 1990

El˝bieta Spie˝; Rados∏aw Kurzyp

Rolfe Judd Ltd Sp. z o.o. oddzia∏ w Polsce ul. Podchorà˝ych 1, 40-043 Katowice NR 32 251-0374 michala@rolfe-judd.co.uk www.rolfe-judd.pl

WND WND WND WND

WND WND WND WND

✓ ✓ ✓

✓ ✓ ✓

✓ ✓ ✓

✓ ✓ ✓

WND

Fastest Growing Practice (2011); Evening Standard New Homes Awards - Best New Apartment Affordable Homes Sector (2010); Harington Planning Awards (2009); Best New Affordable Housing Scheme of the Year Award (2009); Housing Design Awards (2009); the Hotel Design Award of the Year for Refurbished Bedrooms (2009)

19 5

19 2006

Ian Mclntosh

Tebodin Poland Sp. z o.o. ul. TaÊmowa 7, 02-677 Warsaw NR 22 334-4111/22 334-4112 info@tebodin.pl www.tebodin.pl

WND WND 18.9 24.2

WND WND 60.2 70.8

✓ ✓ ✓

✓ ✓ -

✓ ✓ ✓

✓ ✓ ✓ ✓

Malta Office Park (Poznaƒ); Park Handlowy Futura (Modlniczka); A4 highway Rzeszów Jaros∏aw section; KGHM Polska Miedê (Polkowice; G∏ogów); Rafineria LOTOS (Gdaƒsk)

Gazela Biznesu (2009)

9 5

275 2006

Petr Bilek

WS Atkins-Polska Sp. z o.o. ul. Bonifraterska 17, 00-203 Warsaw NR 22 246-0700/22 246-0701 atkins@atkinsglobal.pl www.atkinsglobal.pl

WND WND 1.3 2.7

WND WND 24.3 25.5

✓ ✓ -

✓ ✓ -

✓ ✓ ✓

✓ ✓ ✓ ✓

Modernization of Glinojeck Sugar Factory (Glinojeck); warehouse of high storage for Glaxo Wellcome (Poznaƒ); conceptual designs of motorways service areas on A2 and A4 morotways (for Shell Polska); office and production buildings for Wall BDA Printery (Bydgoszcz)

WND

WND WND

WND 1993

Stephen Novis

Abart-Project Sp.c. ul. Kuênicza 59/60, 50-138 Wroc∏aw 23 71 342-9446/71 342-9445 ab@abart-project.com.pl www.abart-project.com.pl EM Jednacz Architekci ul. Flory 5/10, 00-586 Warsaw 24 22 646-7227/22 646-7277 biuro@jednacz.com.pl www.jednacz.com.pl Atelier 2 Architekci Sp. z o.o. ul. Poznaƒska 17, 00-680 Warsaw 25 22 622-4323/22 622-4323 architekci@atelier2.pl www.atelier2.pl

Atelier PS, Miros∏aw Polak, Marek Skwara Sp.c. ul. Jordana 10/8, 40-056 Katowice NR 32 251-4778/032 251-8218 atelierps@home.pl www.atelierps.home.pl Autorska Pracownia Architektury Villanette, Dagmara Ob∏uska Al. Krakowska 61, 02-183 Warsaw NR 601-939-355 biuro@villanette.pl www.villanette.pl Plus-Art. Biuro Architektoniczne Sp.c. ul. Âwitezianki 16, 91-496 ¸ódê NR 42 640-6116/42 640-6208

pa@plusart.pl www.plusart.pl

Notes: Notes: NR = Not Ranked, WND = Would Not Disclose. Research for the List was done in August 2011. Number of employees and ownership structure are as of July 2011. All information pertains to the companies’ activities in Poland. Companies not responding to our survey are not listed.

WND

Mokotów Nova (Warsaw); electron microscopy laboratories (Kraków; Warsaw); 1st prize for Science and Technology Park in Olsztyn Willa Krasicki (Warsaw)

President

Owner; CEO

President

President; Vice-President

President

Co-owner

Co-owner

Chief Designer

Director

Co-owners

Owner

Co-owners

Director

President

Managing Director

To the best of WBJ ’s knowledge, the information is accurate as of press time. While every effort is made to ensure accuracy and thoroughness, omissions and typographical errors may occur. Corrections or additions to the List should be sent, on official letterhead, to Warsaw Business Journal, attn. Joanna Raszka, ul. Elblàska 15/17, 01-747 Warsaw, via fax to (48-22) 639-8569, or via e-mail to wbjbol@wbj.pl. Copyright 2011, Valkea Media SA. The List may not be reprinted or reproduced in whole or in part without prior written permission of the publisher. Reprints are available.

22

LIFESTYLE

www.wbj.pl

NOVEMBER 7-13, 2011

Concert

French electronica

Guitar heroes

Jean Michel Jarre November 14, Torwar ¸azienkowska 6A, Warsaw

7th Warsaw Guitar Festival November 18-19 Studio Koncertowe Polskiego Radia ul. Z. Modzelewskiego 59 Warsaw

French electronic music pioneer Jean-Michel Jarre will bring his unique talent to the Polish cities of Bydgoszcz, Katowice and Warsaw this November. Mr Jarre, who has described him-

self as “a chic type, a rough type, an odd type – but never a stereotype,” has been a permanent fixture on the electronic scene since his breakthrough album, “Oxygène,” which sold 12 million copies in 1976.

He has since gone on to sell 80 million albums worldwide, while also breaking numerous records

for putting on some of the largest-ever concerts, including a show in Moscow for 3.5 million people.

Tickets for the concerts are priced from z∏.200-500. ● For more information, including the dates and locations of other concerts in Poland, log on to eventim.pl

Since 2005, the Warsaw Guitar Festival has been melding the sounds of some of the world’s greatest classical acoustic guitar players with traditional orchestra music. This year’s event will see no fewer than three world premieres, with performances from guitarists including Italian Aniello Desiderio, who has won

COURTESY OF ANIELLODESIDERIO.NET

Concert

Aniello Desiderio

more than 18 international prizes for his music, and Renneborn impresario FrançoisXavier Nicolet, whose re-

nowned guitar skills have taken him all over the world. ● For more information log on to wfg.com.pl

Cabaret

Visual stimulation Straight from the Avenue George V in Paris, this famed French cabaret is sure to stimulate your imagination. Le Crazy Horse have been thrilling audiences with their own brand of burlesque performance and variety entertainment ever since the original establishment opened in 1951.

With their first international tour, which will see dancers perform their most avantgarde show to date, Le Crazy Horse plans to take their show to new fans

around the world. Tickets for the concerts in Warsaw and ¸ódê are priced from

COURTESY OF LE CRAZY HORSE

Jean Michel Jarre

COURTESY OF WIKIMEDIA COMMONS

Le Crazy Horse November 19 Warszawskie Centrum Expo XXI ul. Pràdzyƒskiego 12/14 Warsaw

z∏.200-z∏.600. ● For more information log on to crazy-horse.com.pl

Le Crazy Horse

Museums, galleries and venues in Warsaw Centre for Contemporary Art at Ujazdowski Castle ul. Jazdów 2 www.csw.art.pl Czarna Gallery ul. Marsza∏kowska 4 www.czarnagaleria.art.pl Galeria 022, DAP, Lufcik ul. Mazowiecka 11a www.owzpap.pl Galeria 65 ul. Bema 65 www.galeria65.com Galeria Appendix 2 (Praga) ul. Bia∏ostocka 9 www.appendix2.com Galeria Asymetria ul. Nowogrodzka 18a www.asymetria.eu Galeria Foksal ul. Foksal 1-4 www.galeriafoksal.pl Galeria Milano Rondo Waszyngtona 2A (Praga) www.milano.arts.pl Galeria Schody ul. Nowy Âwiat 39 www.galeriaschody.pl

Green Gallery ul. Krzywe Ko∏o 2/4 www.greengallery.pl

Simonis Gallery ul. Burakowska 9 www.simonisgallery.com

Katarzyna Napiórkowska Art Gallery ul. Âwi´tokrzyska 32, ul.

Krakowskie PrzedmieÊcie 42/44 and Old Town Square 19/21 www.napiorkowska.pl

State Archaeological Museum in Warsaw ul. D∏uga 52 (Arsena∏) www.pma.pl

Królikarnia National Gallery ul. Pu∏awska 113a www.krolikarnia.mnw.art.pl Le Guern Gallery ul. Widok 8, www.leguern.pl Museum of Independence Aleja SolidarnoÊci 62 www.muzeumniepodleglosci.art.pl National Museum in Warsaw Al. Jerozolimskie 3 www.mnw.art.pl Polish National Opera at Teatr Wielki Pl. Teatralny 1 www.teatrwielki.pl Pracownia Galeria ul. Emilii Plater 14 www.pracowniagaleria.pl

State Ethnographic Museum ul. Kredytowa 1 www.ethnomuseum.website.pl Historical Museum of Warsaw Old Town Square 28-42 www.mhw.pl History Meeting House of Warsaw ul. Karowa 20 www.dsh.waw.pl Warsaw Philharmonic ul. Jasna 5 www.filharmonia.pl Warsaw Rising Museum ul. Grzybowska 79 www.1944.pl

Galeria XX1 Al. Jana Paw∏a II 36 www.galeriaxx1.pl

Rempex Art and Auction House ul. Karowa 31 www.rempex.com.pl

Wilanów Palace Museum and Wilanów Poster Museum ul. St Kostki Potockiego 10/16 www.milanow-palac.pl www.postermuseum.pl

Galeria Zoya ul. Kopernika 32 m.8 www.zoya.art.pl

Royal Castle Pl. Zamkowy 4 www.zamek-krolewski.com.pl

Zachęta National Art Gallery Pl. Ma∏achowskiego 3 www.zacheta.art.pl

NOVEMBER 7-13, 2011

LAST WORD

www.wbj.pl

23

Tech Eye

Tickled pink by November prejudice November has only just begun, and Milkings Month. Stuck next to December, it’s like the buckTecheye is already feeling a little toothed sixth son of a pink. That’s right, pink. seventh son – a Why? Well, it thing to be halfcould conceivheartedly ably be due to gawked at the “freakish and then hormonal quickly forimbalance” gotten in our doctor anticipation keeps whinof something ing about. better.

It’s Or it might boring and be related to filled with the recent redepressing holemergence of idays (if anyrepressed membody wants ories in which to argue the Grandma Techeye COURTESY OF BOOMBOTIX merits of Thanksdresses us like Eleanor Roosevelt and forces us to repeat- giving, we invite you to try and suredly shout “A woman is vive a Techeye family NOTHING like a tea bag!” while gathering).

And so, sitting in a pink bathtub full of thoroughly steaming sugar water.

Probably not, though. A better afflicted with explanation is that November is N o v e m b e r horrible and bleak, while the color m e l a n c h o l y , we’ve started pink is not.

Seriously, November is terrible. collecting pink pink It’s the worst month in the history dishsoap, of the world ever, even worse than scarves and pink computthe Old English calendar’s Three- er wallpaper. No pink socks

though.

Our new-found love of the color has naturally tinged our work, as you can plainly see. Take, for example, the BB1 from Boombotix (boombotix.com), “a portable amplified speaker system that works with any audio device” (as long as said audio device has a modern data port). Pictured is the aptly named Squinty Pink version, which costs $39.99 + shipping if you get it directly from Boombotix. A note to the penny pinchers out there: it’s on Amazon for $39.98.

The Beer Belt, meanwhile, adds more than a dash of pink to November – there’s a splash of white trash in there too. Don’t let that discourage you from picking one up, though. This is the ultimate accessory for the

hard-partier who loves to carry around a sixpack of room-temperature, well-

COURTESY OF THEDIAMONDBATHTUB.COM

shaken beer. It also has pouches for a pack of cancer sticks and extra beer money.

According to the high-minded people at BigFatTailgateParty.com, “the Beer Belt is perfect to bring to parties, NASCAR events, fishing trips, or anywhere you plan on drinking.” But let’s face it – what they really mean is “the Beer Belt is perfect for hillbillies, Texans and anyone who thinks ‘baa’ is sheep for ‘soul mate.’”

The Beer Belt costs a measure of self-respect, along with $18.95 + shipping. Techeye plans to get two and wear them like bandoliers at our family’s next Thanksgiving party.

Our final antiNovember product is the Diamond Baby Bathtub from designer Lori Gardner (thediamondbathtub.com). The name is a bit misleading, since there are no diamonds involved, only pink Swarovski crystals. The baby part seems to be optional too; alternative uses suggested by Ms Gardner’s team include “pet bath” or “ice bucket.”

Each Diamond Baby Bathtub costs $5,200, a relatively hefty price to pay for a sparkly pink baby bathtub, particularly if it dredges up weird memories of your grandmother.

On the other hand, if you detest November as much as we do, an oversized pink ice bucket might be just the thing to help drown your sorrows. And to chill your Beer Belts. ●

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Ever been forced to denounce Eleanor Roosevelt by a demented elderly person? Let us know: techeye.wbj@gmail.com