MADE in POLAND 2015/2016 Made in Poland a Guide to Polish EXPORTS

MADE IN POLAND 2015/2016 Made in Poland a guide to Polish EXPORTS

2015 / 16

TABLE OF CONTENTS

Foreword 4 Banking and Insurance 18 Design and Furniture 22 Partner Features Inward Bound (Partner Feature) 26 Polish Information and Foreign Logistics 28 Investment Agency 5 The data center market is becoming harder to German-Polish Chamber of Commerce 6 ignore, especially in Poland British-Polish Chamber of Commerce 7 (Partner Feature) 31 French-Polish Chamber of Commerce 8 IT: Video Games 32 Italian Chamber of Commerce Metallurgy 38 and Industry in Poland 9 On a course to global expansion Polish-Indian Chamber of Commerce 10 (Partner Feature) 42 Polish-African Chamber of Commerce Constructive collaboration of Polish science and Industry 11 and industry (Partner Feature) 44 Indo Polish Chamber of Commerce Defense 45 and Industry 12 Export Destination: Middle East 48 Polish-Iranian Business Council 13 Export Destination: China 53 Export Destination: Africa 58 Map of Exports 14-15 Ranking: Poland’s 50 Sector Analyses largest industrial companies 64 How to get financing for your export operations (Partner Feature) 16 Partners 69

Publisher: Morten Lindholm Sales & Marketing Director: Tomasz Pawlak Valkea Media SA Editor-in-Chief: Jacek Ciesnowski ([email protected]) ([email protected]) ul. Elbląska 15/17 Managing Editor: Beata Socha ([email protected]) Key Accounts: Magdalena Klimiuk, 01-747 Warsaw, Poland Copy Editor: Michael Evans Katarzyna Pomierna, Grzegorz Tarnowski % +48 22 257-7500 Journalists: Alicja Ciszewska, Sergiusz Prokurat, PR & Marketing Manager: Anna Augustyniak- 6 +48 22 257-7599 Wojciech Rylukowski, Kamila Wajszczuk Hoffman ([email protected]) NIP: 525-21-77-350 Art Director: Tomasz Chwinda Print & Distribution Coordinator: Krzysztof Wiliński

All photos: Shutterstock, Companies’ press materials

New products and destinations

JACEK CIESNOWSKI, EDITOR-IN-CHIEF, WARSAW BUSINESS JOURNAL GROUP

The defense sector in Poland, even with the recent boost in military spending, relies mostly on imports. Yet some Polish producers manage to sell their products abroad. Communication systems, drones and armored vehicles are among the success stories. oland has always relied on its neighbors when it comes to Poland is also a powerhouse when it comes to furniture, windows foreign trade. But sometimes it can backfire. With the crisis and doors. While still, the bulk of production is being done for in- Pin the east, exports to Russia and Ukraine are to drop sig- ternational companies, some Polish producers are selling them on nificantly by 14 and 17 percent respectively. Despite all the turmoil, their own, with great success. last year, Polish exports reached another record-high level of €163 The country has always been considered an industrial power- billion (a growth of 5.2 percent). Still, Polish companies are con- house. While the coal mining sector is in dire straits, with KGHM tinuously looking for other markets on which to sell their products. being one of the world’s biggest copper and silver producers, This can be very challenging, that’s why the Polish Information and metallurgy is thriving. So is logistics, with Poland’s central location Foreign Investment Agency has launched several programs aimed at the crossroads of Europe it’s a perfect fit for the logistics sector. at helping firms reach many exotic destinations. It even has a Go With the strong growth of e-commerce, hundreds of thousands of Arctic program. square meters of warehouse space are being added each year. That’s why in this year’s edition of Made in Poland we have de- For years, the biggest advantage Polish manufacturers boasted cided to profile some of these destinations. We’ve picked China, was a good quality-to-price ratio. Even though salaries in Po- Africa and the Middle East as places where exports from Po- land are still significantly behind the EU average, the gap is get- land are growing and where there are huge prospects for further ting smaller. In the last ten years, the average wage in Poland has growth. We write which companies have already entered those grown by 36 percent, so the price factor is becoming less signifi- regions, what challenges they faced and which sectors might have cant, while quality needs to be continuously improved in order to a chance of success. remain competitive. Besides that, as always, we’ve picked sectors which we know well and hope will drive exports forward. In the IT section we decided to profile Polish video games. It might not be the largest industry, even in the IT sector, but it’s certainly the one that puts this country in the spotlight, as millions of people all over the world play them, which boosts Poland’s image as an innovative nation. Made in Poland label

SŁAWOMIR MAJMAN ish specialists. Every year, 40,000 students graduate from Polish uni- PRESIDENT OF versities with diplomas in IT and telecommunications. Poland now THE POLISH INFORMATION specializes in computer games, which are a spectacular success all AND FOREIGN over the world. It’s worth mentioning productions such as the award INVESTMENT AGENCY winning Witcher, Dead Island, Sniper and Anomaly Warzone. In order to promote Polish companies abroad, government programs are being created to help exporters and investors succeed. The Pol- ish Information and Foreign Investment Agency has been putting the Go China and Go Africa export-oriented programs into action since 2012. The Go Arctic program was initiated in 2015. Poland has very ambitious plans concerning China, which involve conquering its markets with organic food, and much more. Poland is geostrategically situated as the gateway to the EU and may become, oland is radically changing its image and becoming more and through infrastructure investments, a logistics hub for Chinese goods more recognizable in the world thanks to its export leaders. in western Europe. That is why Poland actively supports the One Belt PPolish companies, by dynamically increasing exports, are not One Road initiative, and was the only country in central and eastern only making their own brands stronger, but also the image of Poland Europe to be a founding state of the AIIB bank. as a manufacturer of high quality goods. The “Made in Poland” label Poland is also looking for business opportunities in the fastest de- is increasingly associated with high quality at a reasonable price. veloping continent in the world - Africa. The Go Africa program was Polish cosmetics are becoming increasingly popular all over the created to increase trade between this part of the world and Poland. world. Profits from the export of hair, face and body care products, At present, it is slightly more than approximately 1 percent of Polish as well as color cosmetics, have risen by 25 percent during the first foreign trade. Previous promotional projects in Africa were attended decade of the 21st century. Consumers in 130 countries worldwide by over 300 Polish companies representing the following sectors: au- choose products made by Polish giants, such as Irena Inglot is a sym- tomotive, mining, defense, food, transport, shipbuilding, agricultural bol of Polish success in the cosmetics industry. Just nine years ago, machinery and construction. the company opened its first overseas shop, and today it has 400 Recently, Polish companies have started targeting a very unusual, elegant stores in 50 countries around the world, including in Dubai but promising area - the Arctic. The Go Arctic program is focused on and New York. Poland is enjoying great success in the global furniture encouraging Polish companies to invest, among others, in countries market. 9 out of 10 products produced here reach customers all over such as: Denmark, Finland, Iceland, Canada, Norway and Sweden, the world. In terms of the number of tons of furniture sold abroad, as well as on providing support for Polish exporters in benefiting from Poland is the fifth world power, surpassed only by China, Germany, economic opportunities generated by countries of the Arctic Council, Italy and the US in the export of furniture. in which Poland is a permanent observer. The furniture industry has been developing in Poland at an unprec- The 2016 promises to be the year in which Poland will truly open up edented pace. Since the political transformation, production has in- to the world in terms of exports. Radosław Domagalski, the deputy creased by 61 percent. Currently, the country has about 25,000 furni- minister of development, has announced that “The priority of the ture manufacturers. Polish design has also recently been conquering new government is to provide effective assistance to Polish compa- European markets. During the past few years, Poland has been build- nies in foreign markets in exports, and also in investments.” Minis- ing its position as the regional ICT market leader and a global player in ter Radosław Domagalski also announced the introduction of new the sales of communication technology. Polish companies are con- support instruments and the consolidation of existing ones. Polish quering foreign markets: Comarch employs 3,800 employees in 19 exporters will certainly benefit from this opportunity and the “Made in countries, Asseco Poland was included in the “TOP 100 European Poland” brand will gain further recognition. Software Vendors” ranking and Ericpol in the top twenty of Europe’s 500. These successes can be attributed to the competencies of Pol- Close ties and long traditions

MICHAEL KERN, CEO AND MEMBER OF THE BOARD OF THE POLISH-GERMAN CHAMBER OF INDUSTRY AND COMMERCE (AHK POLAND)

Germany is one of the most competitive, mature markets with demanding consumers. To operate on it successfully in the long term you need to be properly prepared. But it’s worth it. he internationalization of Polish companies is gaining mo- Many Polish companies planning to expand abroad often treat mentum and the image of Polish companies and brands is Germany as a test bed before entering other markets further afield. Tbecoming more and more associated with professionalism The strong advantage of Polish companies, especially while op- and innovation. erating on the German market, is an attractive quality to price ra- Particularly for Polish small medium sized companies the primary tio. This applies, for example, to Polish furniture, food, cosmetics, foreign market is, unquestionably, Germany. This connection is fa- buses, computer games, IT services and many more. cilitated by a number of factors, starting with basics such as the I am sure that the number of Polish entities exporting and operat- geographical proximity (not to be underestimated in terms of the ing successfully on foreign markets is going to increase in time. logistical costs), the long tradition of business ties and the market capacity of 82 million consumers with an average purchasing power which is stronger than in Poland.

Poland A.M. gives you the biggest Polish stories of the day. Have the most valuable news delivered to your inbox each weekday morning.

Export to the UK

MARTA SMOLAREK, EXPORT CONSULTANT, BRITISH POLISH CHAMBER OF COMMERCE

Interestingly, not only does Poland have a trade surplus with the UK in terms of goods, it also has an excess in the export of services, mainly in areas such as construction, finance, ICT and busi- Polish economy continues to expand rapidly ness services. While the value of UK export of services to Poland and is extremely competitive in many sectors. rose from £1.2 billion in 2013 to over £1.3 billion in 2014, the UK’s ThePolish manufacturers consistently produce imports of services from Poland increased from £1.5 billion in 2013 highly innovative, quality goods that sell well in European markets to around £1.6 billion in 2014, leaving the UK with a quarter-billion such as Germany, Scandinavia, Italy or France. The cost-base of pound trade deficit in services with Poland last year. Polish producers is still much lower than it is in the UK or any- In response to strong interest from Polish manufacturers wish- where in western Europe. Polish products are increasingly per- ing to export their products and services to the UK, last year, the ceived in the UK as offering the right balance of price and quality, BPCC launched a support service intended to help businesses being cheaper than goods manufactured in western Europe, yet of from all over Poland by matchmaking them with potential British higher quality than goods from the Far East. Additionally, Poland is partners. Now, the BPCC has great contacts, not only with export- no more than 48 hours away by truck and no more than a three- ers across Poland wanting to sell to the UK, but also with British hour flight from any UK airport. Moreover, Polish manufacturers importers interested in buying from Poland. are more flexible than those from the Far East in terms of shipment The focal point of the service is to identify a suitable UK importer, sizes, and delivery times are far shorter. buyer, agent, distributor and end-user. Additional help is provided While for the UK, Poland is merely its 22nd largest export market, by BPCC members operating in sectors such as translation, logis- for Poland the UK is its second biggest export market after Ger- tics, marketing, legal and IT. The entire process is supported by many. This would suggest that Polish exporters who are not yet utilizing the BPCC’s unrivalled expertise and its strong B2B net- present on the UK market should interest themselves in the UK as works across both countries. a potential long-term market. Over the course of 2015, the BPCC has held 14 meetings with Last year, the value of Polish goods exported to the UK reached Poland’s exporters across the country, from Toruń to Kraków, £8 billion, while UK exports to Poland totalled only around £4 bil- from Białystock to Wałbrzych. In total, nearly 600 Polish firms have lion, leaving the UK with a £4 billion-trade gap. In 2015, the value of had access to information from the BPCC and its members con- Polish goods exported to the UK is likely to be some 11-12 percent cerning the UK market. This will be stepped up next year. See the higher than in 2014, while the growth in the value of UK exports to BPCC website for more information. Poland is expected to be much slower. Poland’s trade surplus with the UK could end up around the £5 billion mark. The most frequently imported goods into the UK are: food and drinks; chemical products including pharmaceuticals, cosmetics and cleaning agents; furniture, interior fittings, doors and windows; clothing and household appliances and consumer electronics. Big and niche markets

NADIA BOUACID DIRECTOR, BUSINESS DEVELOPMENT CENTRE AT THE FRENCH-POLISH CHAMBER OF COMMERCE

slowly coming to an end and some Polish companies from the IT or furniture industry are already coming to France under their own brands - a good example is Comarch and Nowy Styl. Some Polish companies come to France by acquiring existing entities, like the many as 64 million inhabitants, mature consum- Suempol company, which purchased the French company Marcel ers, high purchasing power, geographical and cul- Baey in 2013. Polish luxury yachts, a niche segment of the mar- Astural proximity, and above all one of Europe’s largest ket, have gained many French customers over the last few years economies. All these factors make France a great place for Polish and are increasingly successful at the local fairs dedicated to that companies to do business. For entrepreneurs who have already sector. started their adventure with exports, and who successfully oper- Of course, the process for entering the market is dependent on ate on neighboring markets, including the large German market, many factors. One of them is the extensive system of certifica- France may be the next step in their international expansion. As tion that exists in many sectors. It is worth finding out beforehand we have seen in the past few years, more and more Polish com- which certificates are required or generally used in the case of your panies have arrived in France and successfully begun achieving particular product. This is very important if you are to successfully their business goals. Many of them come to consult the CCIFP, compete for French customers. In order to build up trust in your searching for basic information about specific industries, but also company, it is important to have a French version of company and for assistance in organizing a trade mission, in finding partners or product information, such as catalogues or folders, and most cer- being represented at fairs, which are numerous in France. Indeed, tainly the website. Of course, as everywhere, you need to estab- France is a country with a well-established tradition of organiz- lish whether your local partner is reliable. The best cooperation is ing fairs. Hence, it is a good way to announce your arrival and to based on trust and experience, which are the result of long-term check if your products will find buyers. contacts. But in the era of generally available tools that can ana- We should keep in mind that for many years France has ranked lyze the financial situation of a local partner, it is recommended in the top five markets for Polish products coming from diverse knowing who your customer is in advance. industries, such as the electrical and electronic industry or the The size of the French market, its prestige and proximity, are the furniture sector. The Polish food industry also plays an important factors that encourage Polish companies to export, then to estab- role. The specificity of the latter two sectors is that very often, lish their business in France. Good preparation is, however, the exported products are manufactured in Poland, but under local key to success. It will make cooperation with the French much brands of the French customers who have ordered them. There- easier. fore, sometimes the average French consumer is not aware that they are buying products “Made in Poland”. This trend, however, is Yachts, windows and cosmetics

ELISABETTA CAPRINO – SECRETARY GENERAL CCIP

We have identified ICT as a potential growth area, in fact, Poland has more expertise in this field than Italy, which is a country with a low level of computerization compared to the EU average. In par- here has always been a strong network of bilateral ex- ticular, document management, business intelligence and security change that involves both cultural and economic influence services have interesting investment margins. Tbetween Italy and Poland. However, we have to consider that a lot of semi-finished products Many important Italian companies, that initially decided to relocate are made in Poland and then transformed into finished products to Poland attracted by the lower costs of production and labor, abroad. In Italy these products often arrive with foreign brands, now remain and continue to invest due to the highly-skilled local consequently, the end user seldom realizes that the product is of labor force and the resultant quality of the finished product. Polish origin. Nowadays, Italy is the fifth largest market for Polish products and The furniture industry is one of the sectors that is hardest-hit by the value of exports is increasing every year. this trend as most of the exported Polish products are reworked In the Italian market, some Polish products are already very pop- or assembled abroad. Nevertheless, several Polish companies in ular and highly appreciated, especially those relating to public the door and windows industry have successfully marketed their transport, the yacht and boating industry, and cosmetics. products in Italy. We deal with companies such as Fakro, Drutex, We can refer to success stories such as, Solaris Bus & Coach Dobroplast and Oknoplast (known in Italy as a sponsor of Inter- SA, which won the contract for the renewal of the public transport nazionale football club since 2012). fleet in Milan (the Solaris Urbino Euro6 model was also used for However, it is evident that it’s necessary, therefore, to further EXPO 2015) or PESA Bydgoszcz SA, which supplied more than strengthen the brand “Made in Poland,” and to establish it as a 50 ATR220 diesel trains to the most important players of the Italian symbol of high quality and not just as a low-cost product. In this railway market: Trenitalia, TPER, Ferrovie del Sud Est and Ferrovie regard it is imperative to continue the excellent national marketing Nord Milano. campaign that was begun during Expo 2015, during which the Regarding the maritime industry, in Italy the most active Polish Poland brand garnered significant recognition. companies are: Sunreef Yachts, Galeon, Mirage, Sea Life, Parker Polska, Admiral Boats and Rega Yacht. Polish cosmetics also enjoy an excellent reputation due to their competitive pricing, high quality and focus on innovation. The most recognizable brands are: Cosmetic Laboratories Dr Irena Eris, Inglot, Dax Cosmetics, Ziaja and Oceanic, although there are many other Polish brands on the Italian market. An enormous basket of opportunities

DILIP BEDI, INDIA DESK – POLISH-INDIAN CHAMBER OF COMMERCE

an emerging geopolitical and economic power, India public transportation, defense, machine tools and manufacturing has been attracting attention from different interna- in which Poland is a contract manufacturer for various countries Astional actors and governments, making its impor- in the EU, are those that we want to extend into India. We are also tance unprecedented. At present, the country is in a period of seeking to encourage collaboration in the non-core sectors such rapid development and economic growth. The ‘Make in India’ ini- as skill development and training, clean energy and infrastructure tiative was launched with the objective of facilitating investment, technology. Indian market demands are being catered for by vari- encouraging innovation and strengthening manufacturing infra- ous international corporations and India now forms an integral part structure. Today, India offers an improved business environment of their businesses. In such a scenario, why can’t Poland be here and is the prime destination for global foreign direct investment and provide its best practices. I personally feel many untapped (FDI). We at the Polish Indian Chamber of Commerce (PICC) seek areas of cooperation exist in the field of breweries and distilleries, to generate opportunities to bring Poland to India in many new and consumer products, consumer durables, travel, automobiles and diversified ways. ancillaries, public transport (buses and railways), agricultural ma- India is the world’s largest democracy and has a population of chinery and produce, power and solar energy, etc. 1.25 billion. The country is stated to become the world’s youngest It is our endeavor at PICC to showcase how Poland’s initiative to nation in the coming years. In partnering with India on its urban export to India will help to establish Make in India. We share many development agenda, Poland has initiated numerous events in the things in common: a strong, capable, hard working and techni- recent past through which business relationships have been en- cal workforce, many cultural similarities and habits, and the de- hanced. We expect such initiatives to go a long way to fostering sire to excel. Consider exporting to India and you might also want growth and positive results, creating a conducive business envi- to Make in India. ronment between both nations. Incredible India now operates an investor friendly policy, through which FDIs up to 100 percent are permitted under the automatic route in most sectors and activities. Recently, we have witnessed the strengthening of relations with EU Member states – Germany, France and Great Britain have been the prime movers. These countries have been collaborating with India on several aspects of urbanization: infrastructure, clean energy, waste management, defense, aeronautics, etc. As India represents an enormous basket of opportunities, Poland has the requisite expertise to deliver. The core sectors, i.e. mining, The window is still open. but not for long

PHILIP MIBENGE, PRESIDENT – POLISH-AFRICAN CHAMBER OF COMMERCE & INDUSTRY

and almost everything is ready to be built or to be developed. Polish export offers great opportunities, but in the short term. Investment and building factories in Africa will make a difference advertise Poland in Africa as the “China of the EU”. and will lead to future advantages. There are opportunities in all Yes, Poland is an important industrial base, pro- sectors, such as: infrastructure, energy, mining, agriculture, food Weducing quality goods according to EU standards, processing, building, services, the list goes on... but at a reasonable price and cheaper than in western EU coun- Polish entrepreneurs, who cooperate with the few reliable exist- tries. The average salary for a qualified employee is still a third ing organizations in Poland that have experience in dealing with of what is paid in western EU countries. Moreover, Poland has a Africa, should be looking at the market for their products. They clean card. By that I mean they had no colonies in Africa. They are have to be prepared to invest in the prospective process. African not suspected of the plundering and exploitation of Africa’s riches. business people are not ready to buy solely online, they prefer As Poland has itself been colonized, it understands this pain and to meet their partners face to face. Polish entrepreneurs have to is open for win-win cooperation. understand that the time has gone when they could wait in their The window to do great business in Africa is still open for the next factories for clients to come and pick up goods right from their 3-5 years before competition becomes tight. Chinese products in doorstep. Competition is growing, everybody wants to do busi- Africa are now considered to be very cheap but of poor quality. ness and invest in Africa: China, India, Turkey, traditionally the US However, China does also produce very high quality goods, which and western European countries, even new players like Iran and so far are destined mostly to the US and the EU, but they will also even African countries themselves (South Africa, Nigeria, Egypt, soon reach Africa. Morocco) are now in the game. On the other hand, Africa is the largest and the most up-and- I can only say “Go Africa!” coming global market, a marvelous construction site: a population of one billion, which is predicted to double in the next 20 years. A population that consists of 60 percent young people, hungry for consumption; a rapidly growing middle class; all the necessary raw materials are available; great potential for energy production Poland: Make it big in India

JJ SINGH PRESIDENT OF INDO POLISH CHAMBERS OF COMMERCE & INDUSTRIES

India is on the path of a major infrastructural investment in the railway sector, with long term cooperation with India, Polish companies in this industry sector can capitalize on this as, in the next four ndia is a huge market of 1.2 billion people. With a new wave of years there will be a significant number of tenders up for grabs. Make in India Poland can make use of this market for invest- Coal mining equipment and mining know-how is another strong Iment in various industry sectors and profit from the special op- attribute of Poland’s which could be of great use as India still ex- portunities that are available to investors. tracts its coal from open-cast mines due to a lack of skills and The biggest opportunities are in agricultural products, and food equipment. processing know-how and machinery. With climate change and India’s pledge to play its part as a re- Polish food products are beginning to appear on the Indian mar- sponsible nation, there is a huge opportunity in terms of green ket. Polish dairy products, sweets and fruit products have become and renewable energy. Polish companies have already started available for purchase in the country. However, total food exports investing in joint ventures with their Indian counterparts and be- to India remain low with a value of barely a few million euros. gun to reap the benefits in waste management and water cleaning India has high requirements concerning the importation of food processes. Wind energy is another sector which is waiting to be into the market, not in order to ensure the safety of local consum- exploited. ers, but as a sort of market protection instrument. As much as 70 The value of Poland’s trade with India exceeded €1.7 billion last percent of Indian citizens live in rural areas and 90 percent of the year. Polish exports grew by 11.3 percent to some €410 million and food produced is consumed without any processing. imports rose by 15.5 percent to almost €1.3 billion as the trade gap The Indian market offers great potential for Polish producers. The deepened to about €890 million. country imports some 200,000 metric tons of apples a year, mostly from the US, New Zealand and Australia. These apples are very expensive in India. A large proportion of domestically produced apples rot as the country has no access to appropriate storage technology. Another sector that is open to Polish companies is defense, where India has allowed FDI and Poland, having a wealth of experience, can take advantage of the possibilities. Medical equipment is another great opportunity for Polish companies to develop joint ventures. India still imports more than 70 percent of the medical equipment that is used in the country. The furniture industry is also an opportunity for Polish companies, where a 700 million strong middle and upper middle class are interested in good quality furniture, for which Poland is well-know worldwide. Iran – the next step in expansion for Polish business

JACEK SOSNOWSKI CHAIRMAN OF THE POLISH- IRANIAN BUSINESS COUNCIL

ers, including the biggest chair manufacturer in the world and the No. 1 producer of tables for Germany, must not miss out on this opportunity. Central European wood can compete with Scandi- navian, Russian and Canadian supplies, both in quality and price. Islamic Republic of Iran is closer to Poland than The list of Polish specialties is long and encompasses a number many would think. It is not only due to the fact of sectors ranging from pharmaceuticals and cosmetics to car Thethat several Polish words are originally from Far- parts. Polish medical equipment, as well as medical technology si. Nor is it due to a shared history, many Iranians still remember for cardiovascular and oncological treatment, are vastly sought General Anders’ army and Polish refugees in Iran during WWII. after in Iran. Also, since Iran is the 10th largest car manufacturer Both countries are also similar in their passion to cultivate their in the world, there will be interest in car parts and vehicle-related own traditions and maintain their self-esteem. equipment. Thinking alike may bring businesses from Poland and Iran to the All the potential exports to Iran should be viewed as only the be- negotiation table. There are many opportunities to expand busi- ginning of a great wealth of opportunity. Polish consumers also ness relations since Poland has a lot to offer e.g. the Polish food need to consider what Iran has to offer. Poland will get access, not sector is famous for its high quality. Iran needs to import the major- only to the world’s largest producer of pistachios and dates that ity of its food supply from abroad. Among the most popular prod- are famous for their taste, but also a qualified workforce, primarily ucts that could be exported from Poland to Iran are: fruit, juices, IT specialists. Iran educates over 230,000 engineers every year, honey and grains. which puts the country in third place only after Russia and the US. Iran, with its young society of which almost 75 percent are below What is needed now in order to begin Polish-Iranian cooperation is the age of 35, builds a lot, from houses and apartment estates to break cultural stereotypes and prepare for different, but above to commercial buildings. The demand for high performance heat- all, professional negotiations. ing, cooling, ventilation and air-conditioning systems is booming. Iranians have a choice between cheap and lower quality Chinese products or expensive items from Germany, Japan or South Ko- rea. This leaves a gap for Polish manufacturers and distributors of construction and building materials, “smart home” systems and energy-efficient technology. What Iran also lacks is wood, and their love of wooden furniture is well-known. Poland, a country with thousands of furniture produc- [

MAP OF EXPORTS 14 [ POLISHPOLISH EXPORTS EXPORTS TO SELECTEDTO SELECTED COUNTRIES COUNTRIES (IN €(IN MILLIONS, € MILLIONS, 2014) 2014)

Source: MinistrySource: of Economy Ministry of Economy

19 Lithuania19 2,377 Lithuania 2,377 14 Ukraine 3,14014 Ukraine 3,140 18 Romania18 2,313.2 Romania 2,313.2 BIGGESTBIGGEST EXPORT EXPORT SECTORS: SECTORS: 9 Hungary 4,3619 Hungary 4,361 20 Turkey 2,33620 Turkey 2,336 ELECTRONICELECTRONIC AND MECHANICAL AND MECHANICAL MACHINERY: MACHINERY: (€ BILLIONS) (€ BILLIONS) 48 Israel 36048 Israel 360 65,813 65,813 10 Slovakia10 4,203 Slovakia 4,203 6 Russia 7,0096 Russia 7,009 CHEMICALS:CHEMICALS: 23,023 23,023 (€ BILLIONS) (€ BILLIONS) 3 Czech Republic3 Czech 9,596.3 Republic 9,596.3 63 Iraq 11863 Iraq 118 43 India 41343 India 413 36 Saudi Arabia36 Saudi 518 Arabia 518 FOODSTUFFS:FOODSTUFFS: 21,876 21,876 (€ MILLIONS) (€ MILLIONS) 1 Germany1 Germany 43,618 43,618 21 China 1,68321 China 1,683 87 Turkmenistan87 Turkmenistan 45 45 16 Norway 162,780 Norway 2,780

8 Sweden 4,7088 Sweden 4,708

17 Denmark17 2,713 Denmark 2,713

13 USA 3,62613 USA 3,626

27 Canada 27947 Canada 947 47 Mexico 37147 Mexico 371 49 Bahamas49 325 Bahamas 325

39 Japan 49239 Japan 492

46 South Korea46 South 378 Korea 378

42 Hong Kong42 Hong 419 Kong 419 31 Singapore31 621Singapore 621

28 United Arab28 United Emirates Arab 840 Emirates 840 50 Morocco50 322 Morocco 322 EXPORTSEXPORTS 66 Nigeria 10766 Nigeria 107

Over €5Over billion €5 billion 38 South Africa38 South 512 Africa 512 €1-5 billion€1-5 billion Less thanLess €1 than billion €1 billion

11 Spain 4,05411 Spain 4,054 45 Brazil 39545 Brazil 395 5 Italy 7,5235 Italy 7,523 71 Argentina71 92 Argentina 92 4 France 9,2724 France 9,272 40 Australia40 Australia 15 Austria 2,81315 Austria 2,813 481 481 POLISHPOLISH EXPORTS EXPORTS BY CATEGORY BY CATEGORY (IN € MILLIONS) (IN € MILLIONS) 87 New Zealand87 New Zealand 12 Belgium 123,735 Belgium 3,735 53 53

60,000 60,000 2013 2013 7 The Netherlands7 The Netherlands 6,904 6,904 50,000 50,000 2014 2014 2 Great Britain2 Great 10,567 Britain 10,567 40,000 40,000

30,000 30,000

20,000 20,000

10,000 10,000 TOTAL TOTALEXPORTS: EXPORTS: 0 0 165,7165,7 (€ BILLIONS) (€ BILLIONS) 7.0 PERCENT 7.0 PERCENT CHANGE CHANGE Y/Y Y/Y Minerals Minerals Ceramics Ceramics Machinery Machinery Chemicals Chemicals Metal products Metal products TOTAL TOTALIMPORTS: IMPORTS: (€ BILLIONS) (€ BILLIONS) Produce and foodstuffs Produce Produce and foodstuffs Produce 168,4168,4 Wood and paper products Wood Wood and paper products Wood 7.3 PERCENT 7.3 PERCENT CHANGE CHANGE Y/Y Y/Y POLISHPOLISH EXPORTS EXPORTS TO SELECTEDTO SELECTED COUNTRIES COUNTRIES (IN €(IN MILLIONS, € MILLIONS, 2014) 2014)

Source: MinistrySource: of Economy Ministry of Economy

8 Sweden 4,7088 Sweden 4,708

17 Denmark17 2,713 Denmark 2,713

13 USA 3,62613 USA 3,626

27 Canada 27947 Canada 947 47 Mexico 37147 Mexico 371 49 Bahamas49 325 Bahamas 325

39 Japan 49239 Japan 492

46 South Korea46 South 378 Korea 378

42 Hong Kong42 Hong 419 Kong 419 31 Singapore31 621Singapore 621

28 United Arab28 United Emirates Arab 840 Emirates 840 50 Morocco50 322 Morocco 322 EXPORTSEXPORTS 66 Nigeria 10766 Nigeria 107

Over €5Over billion €5 billion 38 South Africa38 South 512 Africa 512 €1-5 billion€1-5 billion Less thanLess €1 than billion €1 billion

60,000 60,000 2013 2013 7 The Netherlands7 The Netherlands 6,904 6,904 50,000 50,000 2014 2014 2 Great Britain2 Great 10,567 Britain 10,567 40,000 40,000

30,000 30,000

20,000 20,000

10,000 10,000 TOTAL TOTALEXPORTS: EXPORTS: 0 0 165,7165,7 (€ BILLIONS) (€ BILLIONS) 7.0 PERCENT 7.0 PERCENT CHANGE CHANGE Y/Y Y/Y Minerals Minerals Ceramics Ceramics Machinery Machinery Chemicals Chemicals Metal products Metal products TOTAL TOTALIMPORTS: IMPORTS: (€ BILLIONS) (€ BILLIONS) Produce and foodstuffs Produce Produce and foodstuffs Produce 168,4168,4 Wood and paper products Wood Wood and paper products Wood 7.3 PERCENT 7.3 PERCENT CHANGE CHANGE Y/Y Y/Y How to get financing for your export operations sector partner: mBank

DOROTA PODEMSKA - ADDED PRODUCTS DIVISION, SME DEPARTMENT

All of the methods mentioned above require time to check the credibility of the counterparty and are only available to the largest exporters or importers. The question of how SME exporters can finance international trade remains open. The easiest way to get financing is a bank loan. Banks offer a wide range of loans for ledgling entrepreneurs, who are full of hope and faith in the businesses. Expenses up to the amount of PLN 500,000 can be development of their own businesses in the international financed with a business loan. A company using such a service Fmarket, are very quickly faced with numerous obstacles re- can decide on what to allocate the resources, and there is no fixed lated to the financing of their projects. repayment schedule. Higher spending can be financed by loans Although it would seem like there are many possibilities to raise secured by real estate and other fixed assets. capital we must consider whether, in practice, all the solutions are Since being paid on time is a priority for an exporter, the level of appropriate and available to customers from the SME sector. So, risk when extending payment for goods delivered is an important where is the best place to look for capital to finance exports? factor. There are many ways to receive payment when selling a An entrepreneur selling goods abroad can apply for an export let- product abroad depending on the honesty of the buyer. An inter of credit, which means that the bank guarantees (according creasingly popular form of payment which ensures security is pre- to the stipulations of the contract) that the seller will receive pay- ordering. The goods are prepared and shipped only after receiving ment in full as long as certain delivery conditions have been met. payment from the counterparty. The company immediately has In the event that the buyer is unable to make payment on the pur- the means to complete orders and minimizes the risks involved in chase, the bank will cover the outstanding amount. specialized or difficult markets. Another option is export documentary collection, which involves the banks of both the buyer and the seller acting as collectors of funds. After shipping the goods, the entrepreneur passes the documents, along with instructions for payment, to the relevant banks. The remitting bank will then instruct the buyer’s bank to effect payment according to the instructions. The last, but not least, method for settlements with contractors is a bank guarantee, which is an unconditional and irrevocable commitment to pay the bank indicated by the exporter. That commitment is in exchange for the submission of a claim by the counterparty to the bank within a prescribed period. With the currency mPlatform for small and medium-sized companies you have the power of quick and mobile currency exchange

Establish your currency mPlatform and gain n exchange with two clicks n ideal solution for small and medium-sized companies

Contact a dealer: Kamil Gaszyński, phone: +48 42 638 96 03 e-mail: [email protected]

mBank.pl | 801 300 800

Detailed information, including terms and conditions of the “First Transaction without Spread” Promotion and terms and conditions of the currency mPlatform use for business customers, is provided in the “First Transaction without Spread” Promotion Regulations and in the Regulations of the Currency mPlatform Service for Companies as part of mBank S.A. retail banking offer available at www.mBank.pl/mPlatforma/ and www.mBank.pl/firmy/obsluga-walutowa/mPlatforma-walutowa/. The “First Transaction without Spread” Promotion lasts from 16.11.2015 to 31.01.2016. The promotion is targeted at enterprises understood as individuals conducting business activity, partners in private partnerships, general partnerships, limited liability companies, foundations, registered associations, cooperatives, hereinafter referred to as Promotion Participants meeting at the same time all of the following conditions: 1. during the Promotion they file an application to open an account with the Platform service and with at least one currency account at the bank, online at www.mBank.pl or by telephone at mLine operator at 801 300 800 or +48 42 6300 800; 2. during the Promotion they conclude with the bank an agreement on keeping an account with the Platform and an agreement on keeping a currency account; 3. by 31.01.2016 they make a currency exchange transaction through the Platform. Entities which held an mBiznes account for a given tax identification number NIP before 31.10.2015 are not eligible for the Promotion. A Promotion Participant that fulfilled the above conditions and that makes, during the Promotion, the first currency transaction through the Platform with the use of a promotional code available in selected press or at mBank, will exchange currency at the price fixed at the time of transaction at interbank market. The amount of the transaction made by the Promotion Participant may not exceed PLN 100 000 or its equivalent in another currency.

MBKP_mPlatforma_EN_210x297_MadeInPoland.indd 1 24/11/15 15:37 [

SECTOR ANALYSIS: 18 BANKING AND INSURANCE [

The helping hand of insurance in international trade

To effectively counteract the In the case of importing goods Nowadays, international trade is effects of risk in international from abroad, the fundamental not just limited to simple business. transactions we should not only tools for securing a transaction Every sales transaction identify risk, but also determine are: cargo insurance and a letter to a foreign entity is fraught its causes, predict its conse- of credit. The latter instrument is with risk. Fortunately, it is the kind quences, and understand and particularly useful in relation to monitor its emergence and small and medium-sized com- of risk that can be insured presence in a company’s busi- panies as it provides financial ness. If you cannot avoid risk, it security for transactions. A letter a good idea to transfer it – i.e. of credit is an irrevocable written shift the problems associated commitment, from the issuing with the assessment and risk bank and the importer’s bank costs onto other entities. One to the beneficiary of the letter way to transfer risk to another of credit, i.e. the exporter and person or entity is insurance. the seller of goods. That com- This way you can both de- mitment ensures the payment fend yourself against foreign of a certain amount of money exchange risk, negative fluc- for documents presented in the tuations in the value of the USD, content of that letter of credit in EUR or other currencies we use strict accordance with its terms. in transactions, and minimize Nevertheless, we have to keep the risk associated with the im- in mind the cost of a letter of port and export. credit and the necessity of cer- BY SERGIUSZ PROKURAT SHUTTERSTOCK IMAGE: tain standards that must be met, way, anything can happen - a finding customers, to manage difference between the time among other things, the seller road accident, theft, damage the risk that occurs when it of delivery and the receipt of must be able to adopt it. “The while unloading the truck, which comes to payment. Practically payment,” claimed Czubek. cost of a letter of credit is mostly can only be covered by insur- speaking, the only way for a The main goal of trade credit borne by the importer,” said ance to a certain extent. Cargo manufacturer to have absolute insurance is the protection Henryk Czubek from the Uni- insurance provides almost 100 confidence that he will receive against the possibility of con- versity of Economics in Kraków. percent coverage for damage payment for the goods sold tractors taking credit at the ex- Cargo insurance, however, is the and compensation. is to receive cash from the pense of the seller. An entre- safest way to get compensation distributor at the time of de- preneur who delivers goods to in case of damage. If you send livery. This process effectively his customer with a deferred your goods across the country, Managing risks removes the risk, however, it payment date is aware that it can be very stressful to wait For a company that sells its is often impossible. “In such he will not receive the money for the message confirming ar- own products for export, it is a situation, insurance plays a immediately. The problem is rival at the destination. Along the extremely important, besides key role as it covers the time compounded when the coun- [

SECTOR ANALYSIS: 20 BANKING AND INSURANCE [

terpart fails to remit the pay- simply struggling with financial Taking advantages of a single transaction or a single ment and the“ lack of funds problems related to economic opportunities counterpart. These days, it is from that contract affects the downturn or the insolvency of Possibilities offered by in- rarely proposed by insurers due financial capacity and liquidity its debtors. In the worst case surance companies assume to the fact that in such a case of the producer or exporter. scenario it results in a domino that the supplier can decide the insurer has practically no The reasons why a recipi- effect, and suddenly several whether they need portfolio in- possibility of spreading the risk. ent fails to comply with timely companies, cooperating di- surance or insurance that will Whichever option is chosen, payment may vary – a trade rectly or indirectly, fall into fi- protect a single counterpart or the insurer, in consultation with partner may be dishonest or is nancial difficulties. a single transaction. Insurers the supplier, sets credit limits more frequently propose the for counterparts. A credit limit first solution. To take advan- is the maximum amount of in- Policies insuring the tage of it you need to contact sured liabilities coming from an insurer that offers a trade one debtor. movement of goods in receivables insurance policy. In- international trade are surance can be divided into two The credit insurance market categories. Portfolio insurance is a narrow and highly special- rather the domain of means that one policy covers ized field. Commercial insurers specialized insurance several borrowers. They may such as STU Ergo Hestia and all be counterparts of a com- PZU SA, offering policies to pro- companies, whose main pany or only selected ones, tect life and property, also offer business is financial who are considered likely to be credit insurance. Policies insur- late with payment for delivered ing the movement of goods in goods. Single insurance covers international trade are rather insurance. SHUTTERSTOCK IMAGES: the domain of specialized insur- the term “the insurance event”, ance companies, whose main which allows you to initiate a business is financial insurance. compensation process. It may The market is mainly divided be contained in enforcement among four companies: Euler proceedings, which have not Hermes, Coface, Export Credit been able to fully satisfy the Insurance Corporation JSC claim of the policyholder due to (KUKE SA) and Atriadus. An- the lack of assets possessed by other company, Kupeg, entered the debtor; or a court judgment the market relatively recently. announcing that the debtor has Each insurer offers its custom- gone bankrupt; or the redemp- ers a slightly different scope of tion of bailiff proceedings due products. In the case of import- to the absence of assets pos- ing, the appropriate institution sessed by the debtor. Secondly, to be addressed when it comes it is necessary to take a look at to a letter of credit are banks, the way in which the insurer de- which is also the case in terms fines the notion of a substantial of currency exchange risk insur- delay in payment of debt and its ance. notification date. “The condition for executing the policy is Provisions of insurance con- that the policyholder notifies the ditions can vary greatly de- insurer about their problems in pending on the insurer. “The due time. If the delay is 30 days mere payment of an insurance in relation to the agreed pay- premium is not the sole and ment deadline, we should feel sufficient requirement of the alarmed,” said Czubek, adding policyholder. It is also neces- that “It is good to scrutinize the sary to identify the trade part- details of the agreement, so that ner, including checking their we can avoid disappointment address and who exactly the associated, not only with the in- deal is concluded with,” said solvency of our counterpart, but Czubek. Therefore, it is good also with the matter of whether to know what, according to a or not we will receive compen- given company, is meant by sation on this account.” [

SECTOR ANALYSIS: 22 DESIGN AND FURNITURE [

Furnishing the world

oles seem to be flock- cent year-on-year (at 2014 Polish furniture, home furnishings, ing to interior decor prices), according to a Eu- and window and door exports have Pstores and collectively romonitor forecast. “It is worth been growing steadily in recent refurbishing their homes. The noting that stricter regula- years. The ongoing construction country’s furniture market reg- tions regarding credits, which boom and the abundant supply of istered a 5.8 percent growth in may hinder the demand, are 2014, reaching a value of USD likely to be implemented. On raw materials are both contributing 5.67 billion, according to data the other hand, even in tough to the sector’s expansion. However, from Euromonitor International. times, Poles demonstrated a producers still have work to do Analysts believe that the situa- desire to refresh their interior on design, innovation and brand tion reflects the improving GDP decor, which is relatively easy awareness growth and an increasing will- with such a wide offer of less ingness to spend money on the expensive products. This will part of consumers. Moreover, certainly contribute to the fur- the number of households in ther development of the home Poland increased to 13 million furnishings market,” said Jus- in 2014, fueling demand for fur- tas Gedvilas, industry analyst nishing products. at Euromonitor International. As the economy expands, Another analytical firm, the trend is likely to continue. PMR, expects the retail market During the period 2014-2019, for home furnishings (including sales of home furnishings are furniture) to grow by 4 percent expected to grow by one per- and reach a value of PLN 13.2 BY KAMILA WAJSZCZUK IMAGES: SHUTTERSTOCK billion in 2015. Its analysts point and the same growth rate is ing improvement in the housing will come from refurbishing to both the economic situa- expected for 2015, according construction industry contrib- work in existing housing and tion, and the increased sales to PMR. Windows sold better utes to the growth in the sector not from new construction. Its of new property. As residential than doors, largely due to high just as much as the trend for members are working to pro- real estate development com- exports. Sales of windows on more expensive, energy-saving mote modernization and ener- panies continue to announce the domestic market grew by products. A large number of gy-efficiencnt projects, which new investments, especially in 8 percent y/y in 2014, while for customers are now replacing could bring an increase in both large cities, there is ground for doors the figure was 6 percent. older windows and doors with volume and value. optimism. When both domestic and ex- more energy-efficient prod- EU funding also plays a role Construction and refurbish- port sales are considered, the ucts, PMR analysts said. in the industry’s expansion. In ing activity is also fueling the growth rates were 10 percent The Polish Windows and recent years, hundreds of mil- growth of the window and and 8 percent, respectively. Doors Association (POiD) be- lions of złotys have been invest- door market in Poland. In The general good condition lieves that in the near future, ed by window and door pro- 2014 it grew by 8 percent y/y of the economy and the ongo- the main driver for the sector ducers thanks to the subsidies. [

SECTOR ANALYSIS: 24 DESIGN AND FURNITURE [

RED DOTS STAND OUT WHILE THE MAJORITY OF POLAND’S FURNITURE PRODUCTION IS SOLD THROUGH POPULAR RETAIL NETWORKS AND AIMED AT THE

AVERAGE CUSTOMER, IN POLAND AND ABROAD, THERE IS A SEGMENT THAT AIMS TO SATISFY THE MORE DEMANDING CUSTOMER. EACH YEAR, DESIGNERS COME UP WITH NEW SOLUTIONS THAT ARE BOTH USEFUL AND PLEASANT ON THE EYE. IN 2015, PRODUCTS THAT MET WITH INTERNATIONAL RECOGNITION IN THE RED DOTS COMPETITION INCLUDED LIGHTING FROM AQUAFORM AND THE

INNOVATIVE PELIKAN CHAIR, AS WELL AS OTHER DESIGNS FROM PROFIM.

PMR expects the aluminum chosen for their high energy ef- companies in the sector. The There’s room outside door and window“ segment to ficiency. The same trend could same is true of the window and Development in the do- grow the fastest, followed by mean higher sales of exterior door market, 86 percent of the mestic market translates into less dynamic expansion in the coverings, which are useful in biggest window producers and growth abroad. According to PVC, wood and steel segments. extreme temperatures. 78 percent of door producers B+R Studio, an analytical unit POiD, on its part, expects cus- A characteristic trait of the are owned by Polish sharehold- specializing in the sector, furni- tomers to look towards the Polish furnishings market is the ers. Nevertheless, a number ture exports grew 1.16 percent premium segment, including dominance of local firms, which of international giants are also y/y in 2014 and reached €8.03 doors, windows and fittings account for 75 percent of all present in these sectors. What billion. The company’s analysts is worth noting is that even the expect that in 2015 the value foreign-owned companies usu- could reach €8.64 billion fol- Germany is by far the ally produce their goods in Po- lowing a growth of 1.08 per- land. cent. biggest export market – In the future, the industry Germany is by far the big- with an attributed value may see further consolidation, gest export market – with an especially as acquisitions are attributed value of €3.06 bil- of €3.06 billion in 2014. included in the plans of the lion in 2014. In the same year, biggest players, PMR analysts Polish furniture producers sold said. Only time will show who €624 million worth of goods will control major market shares to the UK. In third place, was but it seems clear that Poland France (€526 million). B+R will remain a major player in the Studio expects sales to those sector. three countries to grow by 1.05 IMAGES: SHUTTERSTOCK, RED DOTS percent, 1.16 percent and 0.99 on foreign markets. There are growing, despite the fact that percent respectively in 2015. also, of course, challenges. foreign markets are demand- However, the fastest grow- In previous years experts ing and there is an abundance ing export markets for Pol- have pointed out that Polish of competition. “In recent years, ish furniture are less obvious furniture exports are high in vol- Polish window and door pro- countries. Sales to Romania ume but not in value. Accord- ducers have invested large are expected to grow by 1.24 ing to B+R Studio, the ratio is funds into modern factories and percent in 2015 and sales to improving. In 2015 the average production lines. Now the sec- Slovakia and to the US – by value is seen growing to €268 tor can benefit from those activ- 1.21 percent. per kg compared to €251 per ities,” the association’s analysts Window and door exports kg in 2014. said. grew by 8.2 percent y/y to PLN In the foreseeable future, cur- 5.2 billion in 2014, according to Looking for recognition rency trends may support the ASM – Market Research and The outlook seems optimis- industry. “The weakening of the Analysis Centre. Windows and tic but the sector is not without PLN against the euro is also ex- doors made of plastic materi- challenges. Polish furniture is pected to provide a positive im- als represented 44.1 percent usually sold abroad under a pulse to Polish furniture exports. RED DOTS STAND OUT of total exports, while wooden foreign brand name, so Polish The PLN exchange rate against WHILE THE MAJORITY OF POLAND’S FURNITURE PRODUCTION IS SOLD THROUGH POPULAR RETAIL NETWORKS AND AIMED AT THE windows accounted for 31.9 producers are hardly known the euro is currently the high- AVERAGE CUSTOMER, IN POLAND AND ABROAD, THERE IS A SEGMENT THAT AIMS TO SATISFY THE MORE DEMANDING CUSTOMER. percent and wooden doors – outside their country of origin. est it has been since May 2012. EACH YEAR, DESIGNERS COME UP WITH NEW SOLUTIONS THAT ARE BOTH USEFUL AND PLEASANT ON THE EYE. IN 2015, PRODUCTS for 9.9 percent. Products made “Building their own brand and As the Polish furniture industry THAT MET WITH INTERNATIONAL RECOGNITION IN THE RED DOTS COMPETITION INCLUDED LIGHTING FROM AQUAFORM AND THE of aluminum (7.7 percent) and brand awareness abroad is a mainly targets the needs of euro INNOVATIVE PELIKAN CHAIR, AS WELL AS OTHER DESIGNS FROM PROFIM. steel (6.4 percent) were less pressing challenge for Polish zone markets, the depreciating significant in volume. Exports furniture manufacturers,” Ged- PLN will help furniture exports have been increasing for the vilas said. to grow,” Gedvilas said. past few years and since 2009 He also pointed out that Furniture exports 2009-2014 Poland has recorded a trade the Polish furniture industry is EUR billion surplus in the sector. lagging behind international 2009 Products from the sector are competitors in terms of design 5.01 sold largely to western econo- and innovation in research and Window and door exports 2009-2014 2010 mies. The biggest export mar- development, which, if left un- € billion 5.63 2011 ket for Polish windows and addressed, may hinder export 2009 3.03 6.45 doors is Germany (33 percent growth in the future. 2010 3.30 2012 of exports), followed by the According to Gedvilas, Pol- 2011 3.92 6.61 UK and France (20.6 percent ish producers should think of 2012 4.36 2013 of exports, jointly). Other ma- a better way to compete than 2013 4.81 7.0 6 2014 jor buyers are Italy, Belgium, through low costs and consider 2014 5.21 8.03 the Czech Republic, Slovakia, some way of increasing pro- Source: ASM – Market Research and Analysis Centre Source: B+R Studio Norway, Sweden, Denmark ductivity. “Even though wages and Lithuania. in Poland are relatively low, the Furniture exports 2009-2014 For both sectors, competi- wage growth is outpacing labor € billion tive prices, moderate produc- productivity growth, resulting in 2009 5.01 tion costs and a strong lo- increasing labor costs for Pol- 2010 5.63 cal supply of raw materials ish furniture manufacturers,” he 2011 6.45 (abundant raw wood reserves, said. 2012 6.61 strong plastics and metallurgy POiD is convinced that 2013 7.06 industries) play a part in es- awareness and recognition of 2014 8.03 tablishing a steady presence the “made in Poland” brand is Source: B+R Studio [

PARTNER FEATURE: 26 PANATTONI [

INTERVIEW Inward bound Demand for warehouse space is shifting from western Poland towards central areas. E-commerce firms, serving both European and domestic markets, seem to be setting the rules now

BY BEATA SOCHA

There are 600,000 sqm of warehouse space under con- Wrocław and Poznań? struction. Most of this space is being constructed in We can see both directions. On the one hand, international Warsaw suburbs, Upper Silesia and Central Poland. e-commerce firms are looking to follow in Amazon’s footsteps Does it mean that Wrocław and Poznań – the two lo- and relocate to Poland. They want to tap into the cheaper cations that have been developing the fastest over the labor pool and benefit from the more flexible labor code, par- past few years – are no longer that hot? Where are de- ticularly from short-term employment, which is important dur- velopers looking to now? ing the holiday season. These companies service European Robert Dobrzycki: The demand for warehouse space near markets from Poland. Poznań and Wrocław came from international companies, On the other hand, we also see traditional retailers expand- both production firms, including automotive manufacturers, ing their e-commerce businesses. These companies mainly as well as e-commerce companies. They were looking for service the Polish market. That’s why they choose to locate cheaper labor compared to what they could find in their do- near large populations, like Warsaw and Silesia. mestic markets and decided to locate near the western border. What about the developing and emerging warehouse In time the labor pool has started to dry up in the western locations: Szczecin, Lublin and Rzeszów? parts of the country, and now companies are looking “deep- These markets are, as you said, still developing and each at er.” The next stops for them are Silesia and Central Poland. its own pace. Szczecin’s attractiveness stems from its loca- Another factor in play here is the increasing consumption in tion: near northern Germany and Scandinavia. That’s why we Poland which also affects the e-commerce market. Its rapid mainly see Scandinavian firms looking for space there. Some development also makes central locations, such as Łódź and companies see that the labor market in Wrocław and Poznań Silesia, more attractive. We can see a lot of retailers consoli- is less favorable these days so they direct their gaze towards dating and relocating there. Szczecin instead. These two main factors are why this central “axis” is cur- Lublin and Rzeszów are gaining attractiveness due to im- rently more attractive that the west. proving infrastructure. Many manufacturing companies decide to locate near Rzeszów and Lublin. It is farther from the Talking about e-commerce, how many of the firms border but with the improved road network the distance is no in the sector handle the domestic demand and how longer so terrifying. Besides, the labor market and its depth many service European markets, like Amazon ship- in eastern Poland is definitely improving the attractiveness of ping goods to Germany from its fulfillment centers in Rzeszów and Lublin. One of the biggest lease transactions of 2015 was Leroy Merlin’s new lease of 53,000 sqm in Panattoni Park Stryków II. What are tenants looking for these days? Right now we can see that some tenants, due to their rapid development, need space very quickly and look for space which is already available. We can also often see that e-commerce firms that are expanding or relocating their business have little or no idea how much space they will eventually need. They prefer a short term lease with the option to increase their space rather than commit for a longer period of time. On the other hand, large companies already know what they need, and for how long. They have always preferred built-to-suit spaces.

Given the high volume of new development, do you expect vacancies to go up? What about rent rates? I think that vacancies should continue to go down. The demand is increasing and there are still few developers that build speculatively. This trend should continue. Rents shouldn’t fall, I expect them to remain stable or go up slightly. Construction costs will also increase a little, due to increased labor costs.

Do you think that the slightly older warehouses, say 10 years old, can compete with new projects in the pipeline? I think that if they were designed well and have good technical specifications, they will continue to be attractive. Not that much has changed. Naturally, e-commerce firms need very specific solutions but in the majority of cases, buildings that are 5-10 years old are just as competitive as the ones we are building now.

What are the specific needs of e-commerce firms? A large e-commerce firm with a stable position in the market needs solutions that allow it to house a large number of employees. For example, Amazon has 3,000 employees. What such companies need is air conditioning, daylight, ROBERT much more social space and canteens, as well as a vast DOBRZYCKI, CHIEF area for parking and for bus stops. The outside infrastructure EXECUTIVE OFFICER needs to be better developed given the increased traffic at EUROPE specific times during the day. Apart from that the shell is basi- AT PANATTONI EUROPE cally the same as in any warehouse. [

SECTOR ANALYSIS: 28 LOGISTICS [

BY BEATA SOCHA A click away Fueled largely by increasing online sales, the warehouse market is poised to hit record figures this year. However, logistics operators agree that gearing up for the e-commerce boom in Poland will involve overcoming several major obstacles

fter three quarters, it sqm were renewals of existing there is a similar growing trend sion of companies already has become clear that contracts. The largest deal in in logistics. The logistics in- present here, plus an inflow A2015 will be the best 2015 has been the lease of dustry is subject to an overall of foreign firms to the market year for Poland’s warehouse 53,000 sqm by Leroy Merlin in market performance and the as well as the launching of industry in eight years. “De- Panattoni Park Stryków II. tendency of companies to new brands,” said Paweł Sa- spite the slightly lower tenant “If the fourth quarter results outsource logistics services,” pek, senior vice president and activity in the third quarter, are similar to those of the pre- explained Olszewski. country manager at Prologis compared to the previous vious quarters, we can expect A recent report prepared by Poland. quarters, levels of demand demand to reach record lev- Prologis and JLL stated that since the beginning of this els for the third time in a row,” e-commerce companies may Handbags, blenders year are at record levels,” said added Olszewski. need to lease another 700,000 andgroceries Tomasz Olszewski, head of In- sqm of warehouse space by In 2014, online sales ac- dustrial Department in Central Logistics still on top the end of 2020, assuming counted for 3.9 percent of and Eastern Europe, JLL. Logistics is once again the stable e-commerce growth total sales volumes in Poland, Since the beginning of leader among tenants, ac- rates of 15 percent per year. while in 2020 the share of e- the year, gross demand for counting for 30 percent of “We’ve seen the e-com- commerce in all retail is fore- warehouse space in Poland net demand. “Logistics commerce market grow at double- cast to exceed 10 percent. amounted to 1.6 million sqm panies appreciate Poland’s digit pace for years. The boom The areas of online retail with the third quarter account- geographical location and in e-commerce, combined where warehouse demand is ing for 433,000 sqm. New improving infrastructure. Also, with Poland’s investment at- growing the fastest right now lease agreements with exten- logistics companies represent tractiveness, creates new op- include clothes and accesso- sions amounted to 247,000 all industries. This means that portunities for the warehouse ries, white goods and small IMAGE: SHUTTERSTOCK IMAGE: sqm and an additional 186,000 when a sector starts to grow market along with the expan- household appliances, cosmetics, consumer electronics, and e-fulfillment centers by multimedia and food. traditional retailers, 3PL leases Getting ready The increase is bound to where a logistics operator ful- translate into much higher de- fills online orders on behalf of What are the biggest challenges of mand for modern warehouse a retailer, and omni-channel e-commerce for logistics operators? space. Sapek stated that the leases where only part of the Polish warehouse market is floor space is dedicated to Same-day deliveries – 100% well-placed for the increase in e-commerce,” Zombirt ex- Return logistics – 60% demand and that the majority plained. Cross-border deliveries – 40% of existing space meets ten- Security – 20% ants’ expectations. Major challenges Growing labor costs – 20% According to Jan Zombirt, While growing at an impres- Lease length – 20% associate director, Research sive rate year after year, the Availability and Consulting at JLL, both e-commerce business also of suitable international corporations poses a number of challenges warehouse space – 10% bringing their business to Po- to all market players. Logistics land and domestic firms will operators polled by JLL unani- Source: JLL contribute to increasing de- mously pointed to same-day mand. “This take-up will be deliveries as the greatest chal- sourced from three types of lenge of all, followed by return lease agreements: direct leas- logistics (60 percent of those es of pure-play online stores polled), and handling cross- [

SECTOR ANALYSIS: 30 LOGISTICS [

of third-party logistics firms will need more space for processing returns over the next five years, 71% according to research by JLL.

border sales (40 percent). Se- space is currently being de- markets where e-commerce for return processing centers curity, increasing labor costs veloped on a speculative ba- warehouses feature certain over the next five years, the and short-term contracts vs sis – that is without binding specializations including: a research suggested.

long-term leases were ma- lease agreements. These fac- dedicated e-fulfillment center, What logistics operators jor issues to 20 percent of tors combine to make Poland parcel hub/sorting center, par- in the e-commerce industry respondents, while sourcing well-equipped to receive e- cel delivery center and urban need now is the flexibility to

appropriate warehouse space commerce led demand,” said logistics depot, returns pro- expand or contract leased was cited by only 10 percent – Zombirt. cessing center, and a Dot.com space, mezzanine levels, a after all, developers have been warehouse for online food ful- high security level, more pow- churning out new warehouse What do they need? fillment. A survey conducted er, intensive HVAC, and an space in preparation“ for e- As the Polish warehouse by JLL among third-party lo- abundance of parking lots for commerce growth. market continues to mature, gistics providers (3PLs) and employees. In terms of loca- “Around 50 big warehouse it is becoming increasingly retailers show that some ware- tion, the key factor is availabil- modules will be available for similar to Western European house functions will also be ity and access to staff, access lease in Poland in the next six markets. It will continue to increasingly in demand in Po- to an extensive road network, months. Furthermore, around develop and specialize in the land. For instance, 71 percent and proximity to the end-cus- 280,000 sqm of warehouse same way as the developed of 3PLs will need more space tomer.

The areas of online retail where warehouse demand is growing the fastest include clothes and accessories, white goods and small household

appliances, cosmetics, SHUTTERSTOCK IMAGES: electronics, and food. The data center market is becoming harder to ignore, especially in Poland sector partner: Beyond.pl

ŁUKASZ POLAK, VICE PRESIDENT, BEYOND.PL

find any legal obstacles or government threats to your data here. The country ranked 10th in the global Data Center Risk Index. The Polish climate also works in its favor, with it’s great temperature ata Centers are no longer a part-time or side component. profile that allows freecooling, which translates into additional cost They have transitioned into primary points of engagement savings. Dand information exchanges with employees, partners, and Moreover, we can boast state-of-the-art modern infrastructure, customers in today’s interconnected world. Although cost reduc- meeting the highest of world-class standards. Beyond’s Data tion has always been an important issue for companies, it’s now Center 2 with its 12,000 sqm of great collocation space will not becoming noticeable that it can be achieved through collocation. only be the biggest facility in CEE, but more importantly the first As a result, the Data Center Collocation market is to be presented that meets Tier IV standards. Simultaneously being also the most with substantial opportunities and in the coming decade it is ex- energy efficient, with PUE less than 1,1. pected to see considerable growth. Europe’s market revenue is The future of the whole country’s market appears promising. Ac- estimated to grow from $7.59 billion in 2014 to $15.55 billion in cording to Kapsch BusinessCom, the Polish IT sector is “the most 2020 at an astonishing Compound Annual Growth Rate of 12.71 dynamic in the CEE region.” Market growth of software and IT ser- percent. vices in 2011-2015 is estimated to be 7.2 percent per annum. As With the rising number of possibilities and intensification of the much as 36 percent of the whole CEE data center sector is already demand for collocation services, an important question arises – located in Poland. I hope now you understand that overlooking the where is the best place to do it? Firstly, we can cross distance off opportunities that this country has to offer would be a mistake. our list of determining factors. In the modern, digital world it is no longer an issue. You can choose your partner driven by different, more significant factors. Need proof? Our Poznań data centers are just 12 ms from London. So let’s try to think of Poland as a potential data center provider. It appears to be the perfect location for this type of service with its steady and relatively cheap energy, as well as its safe and reliable business location. You won’t [

SECTOR ANALYSIS: 32 IT - VIDEO GAMES [

BY JACEK CIESNOWSKI Play the game When it comes to popular culture, Polish video games are among the most internationally well-regarded. While movies like “Ida” or music composed by Penderecki or Pawlik are recognized by critics and peers, they’re niche products. Meanwhile, Polish video games are played by millions worldwide

history of ing others, but learning from ing that period, but the vast Polish vid- them as well. Anyone who had majority of them were only The eo games a computer at home in the late published locally. Probably wouldn’t be the same if proper 80s and early 90s, flocked to the first Polish-made game intellectual property laws had a special market in Warsaw distributed worldwide was a existed here in the communist where hardware and software real-time strategy title, Earth era and during the first few was sold. Just like the one on 2140 released in 1997. Fast years after its fall. The humble ul. Grzybowska in Warsaw, forward to the present day. origins of the sector were in where each weekend hun- The Polish video game market copying others. Homemade dreds of future coders and de- is valued at $280 million and is clones of the Pong video game velopers congregated to get the second biggest market in “A pirated computer game were popping up left and right. the latest piece of software. the CEE (after Russia) and the worth £15 was being sold for Popular magazines dedicated Only thanks to pirated games, 23rd worldwide. More than 13 £3, roughly 48 hours after its to home electronics published could they be up to date with million Poles are gamers ac- release,” said CD Projekt co- whole schematics on how to current trends, as legal soft- cording to Newzoo. founder Maciej Iwiński. The make such a machine in your ware was either absent or too Of the currently operating company’s lucky break came home. The first Polish video expensive. game developers, the best- in 1998, when they distributed game consoles, made in the known, and one of the oldest, a popular role-playing game 1970s and 80s, were mostly Out of the underground is CD Projekt RED, founded in – Baldur’s Gate, which sold carbon copies of the Magna- The gaming scene remained 1994. Like most current devel- 100,000 copies, an astound- vox Odyssey machine. The underground for most of opers it started as a distributor ing result for the Polish mar- lack of intellectual property the 90s. A number of Polish of foreign titles and their big- ket. Thanks to its success, the laws did not only mean copy- games were released dur- gest competitors were pirates. company was asked to dis- IMAGE: CD PROJEKT RED “

Witcher 3: Wild Hunt (CD Projekt RED)

tribute one of the games se- were just the middle man, sell- quels – Baldur’s Gate Dark Al- ing someone else’s games,” The Polish video liance. The only problem was said Adam Kiciński, CD Pro- game market is that it was a console game jekt CEO. They were afraid and those were not popular that they were an easy takeo- valued at $280 million in Poland at the time, so the ver target and expanding their producers asked CD Projekt portfolio could prevent them and is the second to convert the game into a from being acquired. So they biggest market in CEE PC version. And, although ul- decided to make their first timately the deal fell through, game. “We devoted all the (after Russia) and the they caught the bug and money we had and then some 23rd worldwide decided to start developing [to reaching this goal],” Iwiński games. “We realized that we said. [

SECTOR ANALYSIS: 34 IT - VIDEO GAMES [

They set their eyes on the worldwide, it had to be good. 2077, which will be the first CD From dictionaries to zombies Witcher series of fantasy This was not an easy task, Projekt game without Witcher Another major game devel- books written by Andrzej especially for a company with in the title, with a planned re- oper is Techland. Founded in Sapkowski, often called “the no development experience lease date in 2016. 1991, it’s even older than CD Polish Tolkien”. His books under its belt. Five years and Right now, with three games Projekt RED and just like its are immensely popular in Po- PLN 20 million later, the Witch- in the Witcher series under its more famous peer, it started land, so there was great local er hit the shelves and placed belt, WSE-listed CD Projekt as a distributor. Soon after, crossover potential. “He’s in a CD Projekt RED on the map. is a two-headed beast. One the studio started publish- league of his own. If you say The latest, third part in the branch is the game developing their own simple games, ʻSapkowski’ it means top- series sold nearly 5 million ment business (CD Projekt translators and other educa- class – there is nobody else copies and won numerous RED), the other is an online tional software. Revenue from like him,” Iwiński said. Globally awards, beating other popu- distribution service GOG.com these products helped fund it was a different story, Sap- lar franchises like Fallout and (formerly Good Old Games), their more ambitious gaming kowski’s name was not well- Metal Gear Solid. which brought the company projects, the first of which was known abroad, so in order for The studio is also developing PLN 73.6 million in revenue in Crime Cities released in 2000, the product to be successful another game – Cyberpunk 2014. a game that was in production

Fortnite (Epic Games Poland) for six years. “Back in those days, making video games was not our main source of income, although it was definitely our main expenditure. Educational software was what brought us the cash needed to develop games. This was always a lengthy process,” said Techland founder Paweł Marchewka. Eventually, the company developed its own game engine (Chrome, in

2013) to be used in their own productions as well as to sell to other developers. This put Dying Light (Techland) Cyberpunk 2077 (CD“ Projekt RED)

The latest, third part in the series sold nearly 5 million copies and won numerous awards, beating other popular franchises like Fallout and Metal Gear Solid. IMAGES: CD PROJEKT RED, EPIC GAMES POLAND, TECHLAND [

SECTOR ANALYSIS: 36 IT - VIDEO GAMES [

INDIE HEAVEN While the game developers described in this article make mostly AAA titles (an industry term used to describe highly budgeted games, equivalent to a movie blockbuster), there is a strong independent scene here as well. These smaller games usually attract gamers with a unique idea or story. Thanks to digital distribution, they can also be sold by the studios themselves. In recent the company on the map as thusiasts who would give an company’s most ambitious months, two important a serious game developer, arm and a leg to work in the project was Lords of the Polish indie games have at least locally at first. Its first industry, they had no place to Fallen. Its budget reached been released. This War of major global success was in learn the craft. The compa- PLN 42 million and CI has Mine (11 bit studios) differs from most war-themed 2006 when Call of Juarez was nies, run by self-taught peo- sold nearly 1 million copies video games by focusing released and sold 1 million ple, often had to hire inter- so far. The game was made on the civilian experience copies. Its sequels sold even nationally, because it’s hard by German studio Deck13 of war rather than frontline better. This year, the studio to make highly-acclaimed and produced by the Polish combat. Players have to released its biggest block- games solely on enthusiasm, company and it won numer- make ethical choices in buster so far – Dying Light. you also need the relevant ous awards for both, Ger- order to survive the siege. Released in January, it has skills. This is slowly changing man and Polish game of the The second game is The sold over 3 million copies so as more schools and univer- year. CI Games and Deck13 Vanishing of Ethan Carter far. It was even the top sell- sities offer game develop- recently parted ways due to (Astronauts), a horror ing video game in the US in ment courses and majors. unspecified complications adventure game produced January, outselling such fran- The last of the major game and the Polish company has by Adrian Chmielarz, veteran of the Polish chises as Grand Theft Auto developers is Warsaw-based developed an internal team video game scene. Both or Call of Duty. In 2013, the CI Games (formerly, City In- to work on the sequel. The have been well received company opened its branch teractive). Founded in 2002, video game sector in Poland critically and commercially. in Canada. “Starting a studio the company, just like Tech- is truly unique. There aren’t This War of Mine covered in Canada opens up a wide land and CD Projekt RED, is that many Polish-made prod- the cost of its development range of new opportunities in listed on the Warsaw Stock ucts that are so in just two days of sales, the realm of game develop- Exchange. The company popular worldwide. The stu- while The Vanishing of ment,” said Marchewka, add- started developing budget dios that formed years ago in Ethan Carter sold 100,000 ing that it gave the company games for the first few years someone’s garage or a spare copies in the first three access to “a deep talent pool of its existence, with the big room are now listed on the months of its release. of educated employees.” break coming in 2010 with WSE and they’re still being the release of Sniper: Ghost run by the same people and It’s education, stupid Warrior, which, along with its not by multinationals. What’s This last aspect (education) sequel, has sold over 5.5 mil- most important is that they’re has been the sector’s prob- lion copies worldwide. The all innovative companies – lem for years. While there third installment is currently something that is lacking in were always video game en- in the works. However, the the Polish economy. IMAGE: 11 BITIMAGE: STUDIOS 11

[

SECTOR ANALYSIS: 38 METALURGY [

BY KAMILA WAJSZCZUK Well cast metals Poland is known as a major producer of a number of metals, including iron, steel, copper and silver. With growing global competition the industry has to prepare for tough times, but it may see a better future thanks to increased processed metals used in other sectors

ccording to data from that there may be another re- introduced a legal change that rolled products sector, thanks Euromonitor Interna- cord and consumption may put things back in place, oblig- to increased demand from the Ational, the Polish basic have grown by some 2-3 per- ing the buyers, rather than the wiring sector and to exports. iron and steel market grew by cent y/y,” Dzienniak said. sellers, to pay the tax. Ac- Increases are also expected 5.9 percent year-on-year in The Polish steel market cording to estimates quoted in the sectors of extruded and 2014 to a value of USD 19.96 stands out in Europe in terms by Dzienniak, some 1.5 mln drawn products from copper bln. The basic precious and of demand. Total demand in tons may have been sold in and brass, as well as in die non-ferrous metals market the markets of the European the shadow economy sphere casting aluminum alloys used grew by 4 percent y/y in to Union is now about 50 mln before the amendment. in the automotive industry. At USD 1.52 bln in 2014. tons lower than it was before According to the Economic the same time, other areas As Stefan Dzienniak, presi- the economic crisis, the ex- Chamber of Non-Ferrous Met- including copper and copper dent of the board at the Pol- pert explained. als and Recycling (IGMNiR) alloy sheets and tapes have ish Steel Association (HIPH) However, the situation for the situation of the non-ferrous most likely experienced a de- pointed out, 2015 was also a Polish producer was not al- metals sector in Poland varies cline. good year for the steel indus- ways so good. A few years ago depending on the sector. The Though production in- try. In 2014 steel consumption the Polish steel market was volume of basic metals pro- creased in most areas, com- in Poland grew to a record strongly hindered by a large duction (electrolytic copper, panies from the non-ferrous level of 12.28 mln metric tons shadow economy, stemming primary zinc and refined lead) sector have been experiencing and the following year may be from tax fraud on so-called is expected to rise year-on- certain difficulties in financial another record-breaker. “Data reverse VAT, especially in the year in 2015. terms due to significant price for the first ten months of this reinforcement bar sector. In Growth is also projected declines on the London Metal year confirm our projections August 2013 the government in the copper and aluminum Exchange. On the other hand, IMAGE: SHUTTERSTOCK IMAGE: electricity costs and excise projects are in the pipeline, levels were lower, the IGM- demand for steel remains sta- ON THE RAILS NiR’s analysts remarked. ble in Poland,” said Andrius STEEL RAILS ARE ONE OF POLAND’S Balsys, industry analyst at Eu- EXPORT SPECIALTIES. TENDERS FOR A challenging environment romonitor International. The overall good condition Nevertheless, Polish metals THE PRODUCT ARE ANNOUNCED of the Polish metallurgy mar- and metal products producers GLOBALLY AND POLISH COMPANIES ket may be largely attributed have to face increasing global SUCCESSFULLY COMPETE IN SOME to growing demand in other competition, especially from sectors. The processing in- China. “We have been forced OF THEM. POLAND IS ONE OF ONLY dustries, from construction to compete against imports THREE COUNTRIES IN THE WORLD materials to household goods, from third-party countries, not WHERE 120-METER-LONG RAILS ARE are also expanding. from the EU market, but from PRODUCED. POLISH-PRODUCED “Demand of basic iron and countries such as China, In- steel as well as basic precious dia, Russia, Ukraine, Belarus RAILS ARE VALUED FOR THE QUALITY and non-ferrous metal prod- and Moldova,” Dzienniak said. OF THE STEEL AND FOR THEIR ucts is driven by growing Pol- He explained that Chinese TECHNICAL PARAMETERS. ish construction and automo- exports have increased sig- tive industries. Metal industries nificantly after a crisis on the benefit greatly from infrastruc- country’s domestic market cut ture development financed by local demand. EU funds in Poland. As long What is more, Polish pro- as infrastructure development ducers have to comply with [

SECTOR ANALYSIS: 40 METALURGY [

strict CO2 emission regula- vironmental requirements that supply in the world, thus add- ous solution for Polish metal- tions, especially as power distort competitiveness,” ing pressure to steel products lurgy firms. According to data generation firms usually aim to Euromonitor International ana- prices. Meanwhile, gold, cop- from the Ministry of Economy, transfer their costs to buyers. lyst Andrius Balsys said. per and lead prices declined in 2014 Poland recorded a Another difficulty is high natu- Another issue is the ongo- by 10 percent, 6 percent and trade deficit of €190 mln in ral gas prices. Non-EU sector ing downward trend in met- 2 percent respectively damag- metallurgy products, com-

companies are in a completely als prices on global markets. ing non-ferrous metals indus- pared to a surplus of €650 mln different market environment. “The global metals industry is try growth,” Balsys added. a year earlier. “The industry is also facing affected by declining prices of Polish sector associations The industry’s exports grew

difficulties in relation to com- most metals, including steel. and the country’s government by 3.3 percent y/y to €17.5 petitiveness in a global per- A plummet in the price of iron are taking action to improve bln in 2014, while imports in- spective. Polish producers are ore of 28 percent in 2014 due the situation. Talks with the creased by 8.7 percent in the paying electricity excise in rela- to increased supply, in addi- European Commission are same period. The fastest- tion to carbon“ leakage, which tion to reduced coal prices by underway. “In 2015 the activity growing segments in terms of is increasing costs for the steel 17 percent has pushed inter- of sector organizations in this exports were aluminum and industry. As other countries, national prices of steel down. aspect has increased,” Dzien- aluminum products (up by like China, are avoiding car- The slowing down of the Chi- niak said. 11.8 percent to €2.1 bln) and bon taxing, Polish producers nese economy and a contin- “Following a Steel Action cast iron and steel products are facing international com- ued growth of the Chinese Plan signing at EU level, the (up by 8.8 percent to €5.6 bln). petition based on unequal en- steel industry has increased Polish government is working Exports of iron and steel fell on its own plan to protect and by 5.5 percent to €3.5 bln and aid its domestic steel produc- exports of copper and copper ers from unequal competition products declined by 9.8 per- Polish producers are in relation to differences in cent to €3.1 bln. environmental requirements. Exports to the EU in 2014 facing international Initial steps to prepare such a stood for nearly €14 bln (up competition plan were being made, though by 5.3 percent y/y), or 10.9 no results are yet available,” percent of total Polish met- based on unequal Balsys added. allurgy exports. Within that environmental volume, exports of aluminum Reaching further and aluminum products grew requirements Since domestic demand is by 15.3 percent y/y to €1.8 high, exports are not an obvi- bln and exports of processed that distort SHUTTERSTOCK IMAGES: competitiveness Exports of metallurgical products from Poland 2012-2015 (€ bln)

Year Value

2012 16.80 2013 16.94 2014 17.51 H1 2015 9.08

Source: Ministry of Economy

cast iron and steel products According to Balsys, “Polish cent depreciation of the PLN als sector companies com- grew by 11.1 percent y/y to exports of basic iron and steel, against the US dollar was pete with foreign firms thanks €4.5 bln. Other important seg- as well as basic precious and favorable for exporters,” the to lower production costs, re- ments were copper and cop- non-ferrous metals, will be IGMNiR’s analysts said. sulting from lower remunera- per products (€2.3 bln, down troubled by increasing com- Dzienniak was optimistic tion costs. It is worth noting by 10.3 percent y/y) and iron, petition in international mar- about the future of the indus- that products of the indus- cast iron and steel (€3.1 bln, kets, especially from China.” try. “Steel processing is going try comply with international down by 5.4 percent y/y). Nevertheless, fabricated metal strong in Poland. We are no. 2 standards,” its analysts said. “Players in every EU coun- products or custom products in the EU in steel structure pro- Balsys believes that major try are fighting for presence on are expected to sustain de- duction volume and this year challenges faced by Polish the local market,” Dzienniak mand growth in Polish export we might be no. 1,” he said. metallurgy will include declin- said. He stressed that in Po- markets as competition is less He also pointed to the growing ing prices in world markets, land’s case, demand is higher tense in these sectors. demand for processed steel, carbon pricing and EU envi- than domestic production. In the Polish non-ferrous resulting from a growing num- ronmental policy compliance, However, a number of compa- metals sector, exports stand ber of uses for the material. as well as high gas and elec- nies are widely renowned and for more than 70 percent of The IGMNiR is in consen- tricity prices in comparison to sell their products globally. total sales value. “The 11 per- sus. “Polish non-ferrous met- neighboring countries. [

PARTNER FEATURE: 42 WB GROUP [

INTERVIEW On a course to global expansion WB Group is one of few Polish private companies operating in the defense sector that has achieved success on a global scale. Within 18 years since its establishment, the company has become one of the leading producers of C4ISR & Unmanned Aircraft Systems

PIOTR WOJCIECHOWSKI, BY WOJCIECH RYLUKOWSKI CEO AT WB GROUP

Most of your revenues come from exports and you are You are quickly becoming world leaders in unmanned one of the largest Polish exporters in the defense sec- aircraft systems. Recently you have signed a contract tor. What’s your recipe for success? with a French giant, Thales. Piotr Wojciechowski: Export accounts for 50 percent of rev- Although, unmanned aircraft systems (UAS) are developed enues recorded by WB Group, which comprises five compa- in many centers all over the world, WB Group is one of few nies. Some of its units, such as WB Electronics, generate 80 companies who manufacture them relying solely on its own percent of revenues by selling abroad. There are three main technology. Every component of the system is designed and factors behind our success: good quality, competitive pric- produced by us, and we have knowledge about every part, in- ing and the trust the client has in our products. High quality cluding the autopilot, fuselage or the drive unit. There are few is maintained through a complex control over the production producers like us who provide others with their technology - process. Every piece of weaponry is tested for mechanical, we sell our licenses, for example, to Vietnam, among others. thermal and electromagnetic resilience before being export- We have been partners with Thales for many years and ed. Since we design and manufacture the products we sell, one of our units, Radmor, produces a radio station on their there is room for flexibility and we can make a system individ- license. Since the Polish army has announced a tender for ually crafted to clients’ particular needs. We are on a par with a mid-range “Gryf” UAV system with short delivery time, we the world’s giants, because, just like them, we have our own will be supported by Thales in developing our own product technology and that helps us win trust of our clients. Since we based on their Watchkeeper X. Production will be located in don’t need to pay for licenses we can offer a good price and Poland and we are on the lookout for Polish suppliers who are attractive cooperation conditions. interested in the project. These three factors, combined with the uniqueness of our products are of key-importance for being successful in ex- You mentioned that Vietnam develops its systems porting and they create our competitive advantage. Export is based on your technology. Could you reveal which oth- a flywheel - the more we sell abroad, the more feedback we er countries also buy WB Group products? receive, which allows us to improve our products and once Unfortunately, most of these deals are secret and we they get better it becomes easier to export more. cannot disclose details. We can say that WB Group’s and perhaps the Polish defense industry’s biggest success is is under the state’s umbrella. We are on the government’s list the sale of a license for Fonet, a digital internal communi- of companies of particular importance for national security. cation system, to the US Army. The US company, which Owing to the fact that the defense sector is a source of inno- acquired the license, Harris, produces more units than vation, we are able to get subsidies from the National Center we do and probably all of the vehicles in the US army are for Research and Development (NCBIR), if our projects win equipped with it. Through the United States, the system is a grant contest. A WB Group’s unit, Flytronic, has research exported to several dozen countries including the Visegrad center status as one of few private companies in Poland. Group states, India, North African countries, Iraq, Thai- The government has recently announced a PLN 130 bil- land, Australia and Jordan. We can safely say that this lion Army modernization program. One of the key challenges is the most widespread Polish military technology and a is to ensure that the money will be spent in Poland and not brand that is recognized all over the world. abroad. The question is whether the state will be able to give the Polish defense industry a chance to expand. Why do you rely so heavily on exports? Relying on exports is our deliberate strategy, we aim to bal- WB Group has raised PLN 80 million from selling ance the domestic market with foreign markets in order to bonds. There are also plans to enter the Warsaw Stock be immune to the fluctuations on the Polish market. In my Exchange. opinion, the best situation is when you have 10 clients who Bonds were issued to buy a 46 percent stake in Radmor each buy 10 percent of the production. In that case, lower from Polski Holding Obronny and consequently to finalize its demand on one market doesn’t undermine the stability of the privatization. Currently, we own nearly a 100 percent stake in company. the company. The remaining sum was channeled into R&D Export also shows in a plausible and objective manner activities, which we carry out to develop new products, such whether a product is competitive vis-à-vis its foreign coun- as new communication systems or adapting drones for use terparts. If we win markets abroad, there is no doubt that the in the civil sector. product is good. When the situation repeats on many mar- In terms of entering the WSE, the situation is more com- kets, we can say it’s the best in its category. Exports also plex. As a company which is on the government list of strate- provide us with feedback we get from many users and that gic defense companies we cannot disclose all the information helps us to improve the product. and we are in the process of working out how communication could function. The decision to enter the bourse hasn’t yet The government is carrying out consolidation of the been made. We are mulling it over. We are also considering Polish defense sector. What’s your relation with a new capital cooperation with a domestic entity in order to help entity, Polska Grupa Zbrojeniowa (PGZ), which com- each other strengthen and then to decide whether to carry prises 16 public-owned companies? out an IPO. I am convinced that there is nothing more valuable than a good cooperation. Since we make different products, there’s How did you get to where you are now? You started as no competition between us, there’s synergy. PGZ offers plat- a garage company. forms on which our products could be applied, and they don’t The history of our company is a kind of “American Dream” have to look for foreign suppliers. As the money spent on story. Since the beginning, we have been committed to de- armaments comes from Poles’ taxes, PGZ should use the veloping the company based on our technology that would funds to buy from local producers so that the taxes stay in the be unique on a global scale. We are also adherents to the country. I also hope that it won’t try to monopolize the market, rule of reinvesting profits systematically. Our success comes but will cooperate with private companies, creating a much from building the company with vision for many years ahead. more sustainable model. We hope this will be our chance. We have to anticipate the development of technology and invest in it. Any product that is created from scratch requires a How does the government support you? good, well-managed team that can achieve perfection after The defense sector is classified as a strategic sector and many years of working together. Constructive collaboration of Polish science and industry sector partner: WB Group

TOMASZ BADOWSKI DIRECTOR OF COMMUNICATION & PROMOTION DEPARTMENT WB GROUP

has benefited from this collaboration. One result of the fruitful collaboration between WAT and WB Electronics is the cutting-edge device for the remote control of multiple rocket launchers (MRLs), ne basic problem of the Polish economy, unlike in the manufactured by WB Electronics. Finnish, German or French, is the lack of effective com- The device, jointly developed by WB Electronics and WAT, meets Omercialization in terms of leading scientific centres’ the Polish Army’s strict requirements. On-site, laboratory and field achievements. The shortage of modern, innovative, Polish-devel- (dynamic) tests brought very favorable results. The device is a oped technologies and products considerably hinders our eco- reliable, safe and modern replacement for older Soviet devices. nomic development. Despite the past 20 years of a free economy, MRLs have long been used by the Polish armed forces and armies we still do not have a “Polish Nokia”, an innovative, modern com- all over the world. Therefore, the State’s investment can yield prof- pany offering cutting-edge products. its thanks to potential exports. The State’s investments in research often fail to result in mass pro- The collaboration in question proves that technological projects duction and commercial success. Consequently, many innovative do not need to be large and very expensive to be an innovative solutions, which could stimulate the development of the economy, drive for the economy. The device is just one of many examples frequently remain merely scientific projects. of cutting-edge instruments’ development and implementation However, there are noteworthy exceptions. The collaboration of in production. It is also a promise for the future. Since effective scientific centers with the WB Group is a good example. It shows collaboration between WB Group and WAT has proven feasible, how the State’s investments in scientific research pays dividends other Polish scientific centers may consider collaboration with in indirect and direct taxes generated through the proper com- other such leaders in innovative technologies. What can be more mercialisation of scientific accomplishments. valuable for scientists than seeing the results of their efforts in ev- The WB Group, consisting of WB Electronics S.A, RADMOR S.A., eryday use, for everyone’s benefit? Arex Sp. z o.o., FlyTronic Sp. z o.o. and MindMade Sp. z o.o., has created an effective, well-managed and innovative method of ab- sorbing innovative technological solutions into production. Thanks to its efficient organization, the WB Group has achieved what many entities, often much larger, have long been striving for – an efficient platform for the collaboration and implementation of Pol- ish scientific achievements in mass production. One interesting example is the collaboration of WB Electronics S.A. with the Institute of Armament Technology at the Military Uni- versity of Technology in Warsaw (WAT). For many years, WAT has carried out extensive R&D works on the use of advanced solutions in the modernization of military equipment. The Polish Army Revamping the defense sector

one are times when After WWII, the reconstruc- Poland’s defense sector reached one of the pillars of tion of the defense sector its peak in the 1980s and since Gthe Polish economy required previously unheard was its domestic defense of amounts of money. The then it has experienced a steady sector. The end of the cold country saw the second decline. Poland’s government is war marked the collapse wave of increased spending making efforts in order to reverse of the overgrown industry, on armaments in the 1970s, the trend and boost exports which didn’t have a place in and one decade later, the the new era of “the end of his- sector reached the peak tory” and the thaw in the rela- of its capabilities. Accord- tions between the East and ing to Jakub Jaworski from West. In the past 25 years, the Polish Chamber of De- Polish governments have fense Manufacturers, in the been making efforts to find a 1980s, there were 82 enter- new formula for the sector, all prises which had strategic to little avail. Recently howev- defense company status, ten er, the first signs of recovery research centers and more have emerged. than 600 firms that cooper- ated with the strategic com- Past Glory panies. Within a year, Poland To get the full picture of Po- could produce 300 T-2 tanks, land’s defense industry one 160 jet fighters and transport has to look back to the past, aircrafts, 350 helicopters or BY WOJCIECH RYLUKOWSKI to the Warsaw Pact period. 700 anti-aircraft missiles. The IMAGE: SHUTTERSTOCK IMAGE: [

SECTOR ANALYSIS: 46 DEFENSE [

industry employed 250,000 1985, Poland was the fifth reasons behind the flop were product themselves. Consid- people. During communism, biggest weapons exporter manifold, including a lack of ering that the remaining €100 the defense industry in the in the world. Most of the ex- coordination between minis- million included the sale of Soviet bloc states and its sat- ports, however, were sent tries, insufficient financing of old, decommissioned weap- ellites was coordinated by the to the Warsaw Pact and its restructuring programs, lack ons, “the real” value of Polish USSR, whose aim was to pre- members had a limited pos- of control over money trans- defense companies’ exports vent each country from fully sibility to sell the production ferred to the troubled compa- is estimated at around €30- developing the potential of elsewhere since the weaponry nies, or insufficient spending €40 million, a figure as low as their defense industries. So- was usually made on Soviet lion R&D. Scaling down the at the beginning of the 90s. It viet Russia forced the eastern censes. employment can be named wouldn’t be an exaggeration bloc to work out a specializa- as one of the few successes. to say that weapons exports tion within the alliance - only Hard Landing The transformation under- are close to extinction. one country could make a fi- After the 1989 transforma- mined Poland’s weapons ex- The government is making nal product with components tion, such excessive fund- ports as well. According to efforts to turn the fate of the supplied by other states. For ing was no longer available, an annual report by the Min- industry around and to help it example, parts to assemble bonds with former allies be- istry of Foreign Affairs, Poland bounce back. One of its lat- a T-2 tank in Poland were im- came more lax and demand sold armaments worth €395 est policies is the renewed ported from East Germany, for weapons was no longer million to foreign markets in attempt to consolidate state- Romania, Bulgaria, Hungary secured. It was evident that 2014. Of that sum, €294 mil- owned companies into one and the USSR. Because of the sector, burdened with lion was in the ML10 category, entity, something that had the geopolitical realities of overstaffing, needed to un- i.e aircrafts, unmanned air- previously failed twice. This the cold war, the defense dergo significant restructuring crafts, aircraft engines and time, with the newly created sectors in this part of Europe to close the technological gap components. In fact, this Polska Grupa Zbrojeniowa, were massively overgrown. with the West. Efforts have positive result was achieved the situation is expected to The scale of the industry in been made throughout the by cooperators or subsidiar- be different. In September, Poland had put a burden on 90s and 2000s to upgrade the ies of foreign producers op- the head of PGZ, Wojciech the budget as expenses on industry so that it can com- erating in Poland (Sikorsky, Dąbrowski, announced at a armaments were said to stand pete on international markets. AgustaWesland or Airbus defense fair in Kielce that the at 12-15 percent of the annual Nonetheless, results have Military). Regrettably, these company “wants to act as an budget. It shouldn’t come as not, so far, been satisfactory. companies are only suppliers innovative supplier of special- a surprise, therefore, that in According to analysts, the and not able to make a final ized systems” and said that it will have revenues of PLN 12 billion in 2030, of which PLN 6 billion is to be generated in the civil sector. The majority of the sum is expected to come from exports. The company wants to introduce 100 new products in the next 15 years and become the 10th biggest weapons producer in the world. How plausible is that? It’s hard to assess right now, but achieving success would also boost production volumes and capabilities of private companies, who may become associates of the IMAGES: SHUTTERSTOCK IMAGES: IMAGES: SHUTTERSTOCK t ternal communication system, System for the Polish Army. Polish the for System Management Battlefield the w of aconsortium part come be has it recently and turret, developing an unmanned gun is it Wola, Stalowa Huta with ow ready cooperating with state- al is company the that, from Apart countries. other dozen l of a sale the is success gest big company’s The markets. m 870 of PLN revenues erated 2014, In well. 13 gen of them faring are companies private the And giant. state-owned de had it technology the censing li successfully is Group, WB company, leading The people. i o t cense for Fonet, a digital in adigital Fonet, for cense i i th PG to run in a tender for for a tender in to PG run th llion, and employed 5,000 5,000 employed and llion, s n igned itself to international he US Army and several several and Army US he ed companies. In tandem tandem In companies. ed

------Po cause that would eliminate the possibilities of the sector, be go completely beyond the would that needs generate program. cannot party ordering “The the from benefit m to order in patriotism” nomic “eco to display need prises, enter the and state the ties, G of WB head the jciechowski, announced in 2013. Piotr Wo P worth program ernization mod army the in chances its sees also company The New opportunities r extensive more fulfill will ers but with time, these produc perfect, be yet not may that products order and a chance them to give has state “The e L r a quirements,” Wojciechowski Wojciechowski quirements,” oup, said that both par both that said oup, N 130 billion, which was was which N 130 billion, lish companies,” he said. said. he companies,” lish ke sure that Polish firms firms Polish that sure ke ------A ports. The “Regional Security ex supporting at aimed gram co state-owned tor, including sec whole of the progress the opinion, his In added. arms. The program’s goal is is goal program’s The arms. Polish to purchase able be will they that so Bulgaria and s Baltic the Hungary), and kia Slova Republic, Czech (the the Visegrad Group members stipulates providing loans to h army, government the the ize modern and sector the idate the ambitious plans to consol Poland since WWII. Besides in produced and designed completely kind of its weapon pr self- RAK developed has Wola Stalowa Huta example, t a s ates, as well as Romania Romania as well as ates, opelled mortars, the first first the mortars, opelled s recently launched a pro launched s recently mpanies, is substantial. For For substantial. is mpanies, sistance Program 2022”

------ma mer, but combined policies asum make doesn’t swallow 29 fighter jets. Of course, one MiG its to service Poland with deal million a€6 signed has Russia, on dependence cut to striving is which Bulgaria, PLN 120 million. Meanwhile, Rosomak Scipio vehicles for southern neighbor will buy 30 the aresult, as and industry, cooperation in the defense regarding of intent a letter Poland and Slovakia signed July, In work. could a program such that indications initial are There region. the in countries the of all potential defense the also to bind and coordinate o come one of the driving forces be can it again, once that, so sector defense its rebuild to able be may Poland and f t y he economy. he bring tangible results,

- - [

EXPORT DESTINATION: 48 MIDDLE EAST [

BY ALICJA CISZEWSKA Advancing the middle east Middle East countries are very far from being able to be named as Poland’s major trade partners. Yet, Polish exporters would lose a lot if they neglected to establish solid trade ties with these fast- growing regions

o many, the Middle East economy has risen by 5.3 per- may seem to be the very cent year-on-year on average, Tcenter of the world’s larg- Qatar’s GDP increased by 9.6 est wars, inhabited by either percent, while the United Arab wealthy sheikhs or rather poor Emirates (UAE) recorded a 4 societies. However, this region percent growth. At that time, is recognized as one of the the euro zone grew by just 0.6 most promising for European percent (IMF), hence, it took companies, since it has been Saudi Arabia seven months to recording soaring GDP for a make up the numbers, which few decades. “Although a ma- it took the euro zone five years jor part of the Arab world has to achieve. Despite some de- plunged into massive turmoil, clines, forecasts continue to be we have to keep in mind that promising. HSBC estimated that it is a very diverse region and the UAE’s GDP will slow to 3.1 one can find big markets there percent in 2015, Saudi Arabia’s which operate without any inter- to 3.6 percent and Qatar’s to ference. Properly prepared and 5.6 percent. Meanwhile the euro directed expansion could bring zone economy will rise by only Polish companies real business 1.3 percent. success,” Przemysław Polac- zek, managing partner at Grant One percent that matters Thornton pointed out. Over the Last year, Poland recorded last five years, Saudi Arabia’s a trade surplus with almost all IMAGES: SHUTTERSTOCK the region’s economies, be- the UAE, where the emerging sides Bahrain. The total turno- middle class is in need of con- ver reached over €7 billion, and sumer goods. Polish fashion re- exports alone amounted to €4.5 tailer, LPP opened around 200 billion (see: table). Turkey (20th) stores in Poland and abroad followed by United Arab Emir- in 2015, expanding its number ates (28th) and Saudi Arabia to some 3,200. As the Ukrain- (36th) were Poland’s major trade ian crisis had an impact on the partners in the region. Overall, firm last year, LPP will expand its an increase in exports with Mid- business mainly in the EU and dle Eastern countries stood at the Middle East, i.e. Egypt, Sau- 30 percent on a yearly basis, di Arabia, Kuwait, Qatar and the boosted mainly by trade with the UAE. Wójcik, a producer of chil- UAE. In 2014, nearly one third of dren’s clothing is also consid- the total exports volume to Sau- ering entering the Middle East. di Arabia was accounted for by Moreover, the Polish cosmetic grains, a similar percentage of sector, which is currently the the total volume sold to Iraq con- sixth largest in Europe has been sisted of combine harvesters. conquering the region too. Pol- Iran purchased sound receiv- ish-made cosmetics are recog- ers (over 40 percent of imports), nized as high quality products at Jordan acquired aerial vehicles reasonable prices. Inglot Global (30 percent), mainly from PZL Cosmetic is planning to open Mielec. Qatar was a buyer of 100 stores in the United Arab mechanical and electronic de- Emirates by 2020. Opening vices, Kuwait - food and ag- stores in the UAE is a part of the ricultural products (nearly 40 company’s broader strategy of percent of imports from Poland). launching 220 units in the coun- Lebanon (over half) and Syria tries of the Persian Gulf Cooper- (80 percent) imported foodstuff, ation Council. As for now, Inglot such as sugar, bread, chocolate has 19 stores in the UAE. The products, among others (over region accounts for 8 percent 50 percent). What’s interesting, of the firm’s total sales revenue. almost half of the products sold Delia Cosmetics proudly admit- to the UAE market were mobile ted that in comparison to 2012, phones. it doubled its sales in the Middle Despite the fact that the ex- East last year. Eveline owns 120 ports to Middle Eastern coun- outlets in Dubai alone. Labora- tries accounts for only one torium Kosmetyczne Dr Irena percent (0.5 percent to Turkey Eris is finalizing agreements with alone), those markets have po- distributors in Bahrain, Kuwait tential to become quite profit- and Qatar. Polish companies able for Polish companies. admit that the Middle East is dif- Experts claim that Polish food, ficult to enter, but it’s worth the energy, apparel, furniture, con- effort. “We think that the market struction and cosmetics sectors is really challenging, but it cre- have, and will, benefit the most ates opportunities to establish from the trade exchange. In par- long-term trade relations,” Ewa ticular, Saudi Arabia, Qatar and Sabaj, Export Manager at Blux [

EXPORT DESTINATION: 50 MIDDLE EAST [

Cosmetics told Bankier.com from scratch,” Antoni Mielenic- food. For instance, Saudi Arabia ogy, but such countries as Jor- web portal. Arab countries are zuk, the president of Polish- imports some 90 percent of its dan, Lebanon and Kuwait have one of the directions that Pol- Saudi Economic Chamber told fresh and processed food, Iran not been mentioned. ish shipyards have moved in. As Puls Bzinesu daily. Saudi Arabia buys around 85 percent. Po- many as 100 Polish boat and alone will earmark USD 550 land’s food and foodstuff ex- Go Iran?

yacht manufacturers sell nearly billion for infrastructural invest- ports will be valued at €25 billion Former Minister of the Econ- their entire production output ments in years 2012-2015. Kr- in 2015, according to estimates omy, Janusz Piechociński said (99 percent) abroad and in Eu- zysztof Woźniak, head of the in- from the Ministry of Agricul- that the landmark nuclear deal

rope. The Far East as well as ternational banking department ture. Domestic producers have with Iran creates a great oppor- the Middle East are their major at HSBC Polska argued that been selling food products to tunity for Polish farmers, since markets according to the Polish local authorities invest in “great the Middle East, as it was men- the Persian country imports 85 Chamber of Marine Industry and infrastructural projects”, with the tioned above, and experts claim percent of its food products and, Water Sports. An interesting de- support of foreign“ entities, and this sector is one of the most what has to be noted, Polish tail is that Poland is the world’s this is an opportunity for Pol- promising in the mutual trade food exports to Iran have grown second largest small motor ish contractors or consultants exchange. Nevertheless, Pol- threefold since 2011. The min- yacht producer and the sector specializing in the creation and ish exporters have to deal with ister claimed the improvement has been chosen by the Polish management of engineering strong competition from the likes of relations with “a big market government as a beneficiary of ventures. Unfortunately, some of German and French firms. that has money,” is a good sign financial aid provided from EU claim that Polish construction What’s worth noting is that Pol- for the Polish economy. Poland funds. may offer Iran such foodstuff as Polish technology has also fruit, juices, honey and grains entered the Middle East. The Middle East region is as well as car parts, medical mobile payment system pro- equipment, furniture and build- vider mPay signed a seven-year a great construction ing materials. “The normalization deal with Bahrain-based eTime site nowadays, of relations with Iran is a great IT Solutions this year. It was the opportunity to sell several thou- firm’s first international contract. where high quality sand railway carriages, several In line with the deal, custom- thousand trams, subway cars, ers from such countries as the materials, services very large amounts of food. This Kingdom of Bahrain, Saudi and professionals are is a huge opportunity to export Arabia, Kuwait, the United Arab Polish poultry and beef, a great Emirates, Qatar and Oman will firms could be too weak to enter ish food processing technology opportunity for many technolo- be able to use mPay’s applica- the Middle East, additionally, the is also desirable in Arab coun- gies,” Piechociński stressed. A tion to pay for bus and parking leading firms have Spanish (Bu- tries, in addition, Polish compa- few weeks later, Piechociński tickets. Firstly, the app will be dimex and Mostostal Warszawa) nies may successfully establish went on a trade mission to Iran delivered to the Bahrain mar- and Austrian (Strabag) owners joint ventures in the sector, the where he signed an agreement ket, within a year after eTime IT who will not let them be present Saudi Arabian embassy to Po- of economic cooperation with Solutions obtains the necessary in the market in which they have land pointed out. Sławomir Maj- the country. The document is to permits. been operating for years, Ma- man, the president of the Polish enhance intergovernmental co- Experts stress that the Middle ciej Stańczuk, the president of Information and Foreign Invest- operation as well as the trade ex- East region is a great construc- Polish-Saudi Arabian Business ment Agency (PAIiIZ), recognizes change between the two econo- tion site nowadays, where high Council told Dziennik Gazeta the Polish food sector’s achieve- mies. Piechociński stressed that quality materials, services and Prawna in 2012. ments in the United Arab Emir- “the Polish government knows professionals are necessary. ates and believes that Poland the specification of Iranian crude “Arab countries are characteris- Bread basket for the Middle should pursue exporting food oil and it can be processed at tic for many investment projects, East there. The Ministry of Economy Polish refineries. “Under the which are not only offices, but Due to the unfavorable cli- also identified Oman as one of agreement, a joint committee hotels and housing schemes, mate conditions, Arab countries the biggest potential importers will be established whose main there are entire cities being built must face an undeniable lack of of Polish food and food technol- tasks will be to analyze the cur- IMAGE: SHUTTERSTOCK rent economic cooperation of Polish-Iranian Business Council In late April, Reuters said that in petrochemical projects. “The the two countries and suggest was established. The council PKN Orlen had bought a 122 main subject of the talks with recommendations for the gov- was formed during a conference thousand metric ton shipment the European firm is a purchase ernments. on “How to export to Iran”, held of Iran’s gas condensates for of equipment and the newest The former economy minis- in Warsaw. The Chairman of its Mazeikai complex, however, technology for the petrochemi- ter suggested that Poland, pre- the Council, Jacek Sosnowski, the news was denied. What is cal industry,” he said. However, cisely PAIiIZ, should introduce stressed that “trade relations be- more, Iranian media reported he did not mention the name of the Go Iran program. Majman tween Poland and Iran must be that Polish state-controlled gas the “European firm”. shared his optimism saying that enhanced, so Polish companies and oil giant PGNiG is keen on it is high time to bring it into be- are not left behind by their com- carrying out investment projects Hunting for new chances ing. Although, Go Arctic has petitors from other European in Iran after the possible lift- “As for now, we are making recently been launched, there countries.” ing of sanctions that had earlier our presence felt in the UAE and has been no official announce- been imposed on the country. Saudi Arabia but there are lots ment for the implementation the Acting on their own “Years ago, the Polish firm par- of countries in the Middle East Iranian project, even PAIiIZ staff Meanwhile, Poland’s largest ticipated in the Lavan gas pro- with which we can cooperate are wary of giving any details re- refiner, PKN Orlen has become ject and now it is ready to come closer,” Radosław Jarema, the garding the idea suggested by interested in investments in the back to the developing Iranian CEO at AKCENTA, CEE leading Piechociński. Let’s hope it did Iranian oil sector in the event market,” PGNiG representative non-banking financial institution not die when the minister left that economic sanctions im- to the Middle East, Bogusław argued. Furthermore, regarding office. The Minister of Develop- posed on the country are lifted, Sozański told Mehr agency, the above, Polish companies ment, Mateusz Morawiecki, who according to the Shana press adding that the company is likely have also started advancing in replaced Piechociński, called agency, which cited Jarosław to open its office in Tehran. Ab- Iran. In his and other experts’ for deepening cooperation with Zacharski, G&G Manager at Or- bas Sha’ri-Moqaddam, Iranian opinions, Jordan, Qatar, Bah- ASEAN countries. So far he has len. This was not the first time deputy petroleum minister in- rain, Kuwait and Iran (if the mar- not mentioned anything about the media has speculated about formed that talks with the Polish ket opens), could, and should, advancements in Iran. Moreo- the Polish company getting in- party have already begun and be of interest to Polish exporters ver, following the mission, the volved in the Iranian market. they are regarding cooperation in the near future. Trade exchange with the Middle East countries, 2014, data in € millions

Country Exports Imports Turnover Balance

Turkey 2,336.7 2,017.5 4,354,2 319.2 The United Arab Emirates 840.4 121 961.4 719.5 Saudi Arabia 518.8 45.7 564.5 473.1 Israel 360.9 282.2 643 78.7 Iraq 118.5 0.1 118.5 118.4 Jordan 57.1 0.7 57.8 56.3 Lebanon 54.4 8.8 63.2 45.6 Kuwait 51.5 2.5 54 49 Oman 48.4 9.5 57.9 38.8 Qatar 39.9 12.3 52.2 27.7 Iran 35 22.4 57.4 12.5 Syria 24.7 7.5 32.2 17.2 Bahrain 21.1 52.5 73.6 -31.3 Jemen 9.5 0.2 9.7 9.3 Palestinian National Authority 4.4 2.8 7.2 1.6

Total 4,521.3 2,585.7 7,106.8 1,938.6 Observer fullpage2.pdf 1 09.06.2015 17:10

A LEADING ENGLISHLANGUAGE BUSINESS MONTHLY IN POLAND

CMY

K On Chinese track Back in August 2015, local cider, beer, mineral water and confectionery products departed from a cargo terminal in Łódź and set out for the world’s largest market, China. In launching its “One belt, one road” strategy China intends to conquer European markets more comprehensively. Poland just happens to be on the Chinese path to expansion

BY ALICJA CISZEWSKA

[ EXPORT DESTINATION: “ 54 CHINA [

Only 3.5 percent of the total exports from China to Europe are carried over 2013, China’s authori- the Chinese, a door to the Euro- land, despite the fact that ties came up with the pean market,” Radosław Pyffel, In idea of establishing the president of the Poland-Asia it is three times quicker a new infrastructural project Research Center admitted. Only dubbed “One belt, one road” (or 3.5 percent of the total exports than by sea. “New Silk Road” in reference to from China to Europe are carried the Silk Road) in line with which, over land, despite the fact that among others a web of cargo it is three times quicker than by routes connecting Asia and sea. A network of rail connec- Europe will be made. This new tions is an essential element of businesses for a while. Łódź and Łódź was in launching the strategy is crucial in the continu- the Chinese project, because came up with the idea of estab- first ever, China-Poland cargo ation of the Chinese economy’s the government is convinced lishing a regional Poland-China connection in April 2013. Each growth, “today, a conversation in that transportation by train will forum after former president cargo train holds 41 containers Beijing is beginning on the topic be more attractive for traders Bronisław Komorowski paid a and travels through Belarus, Ka- of the New Silk Road,” Sławomir than via ships and speed will visit to Beijing in 2011, when a zakhstan and Russia for 14 days Majman, the president at Polish compensate for higher costs. mutual strategic partnership was before it reaches the terminal in Information and Foreign Invest- “Railway transport is signifi- forged. Since then, three editions Chengdu. The first “export train” ment Agency (PAIiIZ) stressed. cantly faster, yet more expen- of the event have taken place, left Łódź on August 17 this year, Central and Eastern Europe is sive than by sea. According to uniting the representatives of lo- the second departed from Łódź, considered by Chinese geo-po- our analysis, the price of the cal authorities and businessmen Olechów terminal nine days later litical analytics as a sort of “intro- transportation of one container from all over the two countries. heading to Xiamen. Xiamen is a duction to the European Union, from Europe to China accounts Furthermore, there have been major city on the southeastern an area of political and economic for 30-40 percent of the value several business and political Chinese coast, its population influence,” Marcin Kaczmarski, of the transported goods. And missions to China, undertaken stands at over 3.5 million. The an expert at the Center of East- this is the main drawback for this by local authorities. Barbara journey from Łódź to the city ern Studies said. Poland is locat- kind of transportation,” Szymon Ochcika, a specialist in the field lasts a bit longer than to Cheng- ed in the center of Europe and is Mikołajczak, the member of the of logistics from the University of du, but it is quicker to pass the largest economy in the CEE board of managers at Carsped, Łódź, claimed that the region’s through customs clearance be- region, neighboring with the en- a subsidiary of PKP Cargo, ex- location, convenient access to cause the city is in a sub-district gine of the EU, Germany. Which plained on promare.pl web por- rail and road infrastructure, the of the Fujian Free Trade Zone. means the Chinese have chosen tal. prospect of developing multi- The trains to Chengdu and Xia- Poland from a strategic point of modal connections and growing men will operate every week, view. “It would be difficult to im- Łódź takes it all warehouse space are “the pillars thus 25 more convoys will have plement this project without Po- Łódzkie voivodship has been of its logistics potential.” In 2012, departed from the terminal in land, which is a great location for attempting to attract Chinese the city of Łódź opened its office Olechów by the end of the year, in Chengdu, Sichuan province. according to Grzelak. Monika Chengdu is a city of 14 million Konsor-Fąferek, marketing and and the capital of the Sichuan development manager at PCC province, it plays a role in the Intermodal, was slightly less en- logistics, financial and techno- thusiastic, “taking into account €1.68 billion logical centers of the western current freight rates, the Chinese IS THE VALUE OF POLISH EXPORTS TO CHINA IN 2014 part of the country. The city spe- are focused on sales, they at- cializes in wood and the electro- tach less importance to import- tech industry. The turning point ing via railways, which would be in relations between Chengdu the jewel in Europe’s crown.” There is this huge enthusiasm for Polish milk in China.

The Chinese would like to “the draft is ready and the in- play a considerable part in the vestors have funds at their dis- transformation of the Polish city, posal,” Grzelak asserted, and Xiamen would be a good intro- Ochcicka suggested possible duction from which to expand EU financing may be involved in to the other parts of the region. the investment. “We express our eagerness to create a common logistics plat- Milk shopping spree form with Łódź , which would Since the spring of 2013, service the transportation of 70,000 metric tons of goods goods from Europe to South- including household appli- East Asia, including China and ances, electronics and textiles Taiwan,” said Zheng Yunfeng, have been exported from China the deputy mayor of Xiamen. A to Poland (with 20 percent of continuation of Chinese involve- goods being exported further ment in the region is a plan to to other European countries) via construct a second cargo ter- the rail link, its operator, Hatrans minal somewhere in Łódź. A Logistics estimated. In 2013, similar terminal, valued at a few China was Poland’s third larg- hundred million USD, has been est trade partner as concerns operating in Chengdu. The Pol- exports, a year later it had ad- ish city aspires to achieve the vanced up to second spot. Two same capacity. A joint venture years ago, China accounted has already been established, for 9.3 percent of total Polish comprising Chinese and Polish imports, last year, the share companies enlisted to develop reached 10.4 percent. When it the project. There are more than comes to exports, China is not two and less than five locations listed in the top ten recipients of on the table, Grzelak said, add- Polish goods (GUS). The share ing that the choice will most of Poland’s exports stands be- likely be finalized in October. tween 1-3 percent of China’s Witold Stępień, the marshal of total imports. Undoubtedly, the voivodship informed that the cargo connection has in- the scheme is expected to be fluenced the mutual exchange completed within three years, negatively from Poland’s stand-

[ EXPORT DESTINATION: “ 56 CHINA [

Each cargo train holds 41 containers and travels through Belarus, Kazakhstan point and widened the trade State-controlled PKP Cargo is deficit. It took over two years for and Russia for responsible for the operation of the containers to be filled with 14 days before it the European section of the con- Polish products. Some media nection with China, i.e. Poland- reports suggested that Pol- reaches the terminal Germany. Since October 2013, ish companies would require trains from Suzhou, Jiangsu subsidiaries from the govern- in Chengdu province have been arriving into ment (like their Chinese coun- Warsaw. Transportation ser- terparts), but these demands is the appropriate strategy with contaminated milk powder. Ex- vices were organized by PKP are against WTO regulations, which to enter the Chinese porters who sent their products Cargo Logistics. The ultimate Bartosz Michalak, the president market and gradually begin to via the rail connection operated goal is to establish a daily con- at the Polish-Chinese Coopera- make inroads. Train transporta- by Hatrans have high hopes re- nection, which the company tion Forum stressed. Apparently, tion is suitable for small cargos garding their presence on the hopes to implement next year. the problem lies elsewhere, “it consisting of products with Chinese market, one of them, Hatrans seems to be ahead of its was really hard to organize the a limited shelf life. Polish milk Andrzej Pawelec, the owner at competitor, because PKP Cargo cargo and Polish companies and powdered milk have been Chociszew-based +H20, a ci- is still in talks with potential firms had to meet strict Chinese re- highly successful with Chi- der producer, said the Chinese who would be interested in trans- quirements,” Tomasz Grzelak, nese consumers and exporters liked our alcohol very much. porting their products to China the CEO at Hatrans Logistics agreed. “The Chinese are very They conducted research and via the connection. In June, PKP admitted. It has to be noted, that interested in our products, es- they chose what they wanted in Cargo signed a letter of intent it is currently prohibited to import pecially dairy,” Michał Brzeziński, China. Another liquor producer, to establish a joint venture with certain goods to the Chinese Deputy Head of Promotion and Sulimar from Piotrków Trybunal- Zhengzhou International Hub market, e.g. pork (trade with Po- International Cooperation Unit ski shares the same hopes for a (ZIH) from Henan province in land is suspended, however ten of Łódź regional Development fruitful cooperation with the Chi- China. The parties will cooperate Polish firms have been certified) Agency. Łowickie, Mlekovita nese. “Talks were very long, but to expand a handling terminal and beef (governmental talks are and other brands are available our samples were evaluated very near the Polish border with Be- ongoing). The other issue is the in supermarkets in Shanghai, well. We think that this is just the larus, in Małaszewicze. Chinese Russian embargo imposed on there is this huge enthusiasm for beginning of our mutual trade Zhengzhou International Hub numerous products from the Polish milk in China, Grzegorz exchange,” said Grzegorz Sza- will own a 51 percent stake in EU, that is why Polish fruit and Marciniak, managing partner fran, the CEO at Sulimar, which the project. The company was dairy cannot be transported via at VMIX consultancy, pointed sent Cornelius and Trybunał Ek- to be established within three the rail link. Grzelak stated that out. The Chinese prefer Pol- sport beers to Xiamen. Pawelec months, however, according his company along with Chinese ish milk to local, because they also believes that Poland should to its press office, “talks are still partners have been negotiating find it healthier and safer, Pyffel start selling vodka to China. ongoing.” ZIH seeks to find new with Russia in the hope of es- said, adding that Chinese cus- markets for goods manufac- tablishing a system which will al- tomers remain wary about do- Big plans for a small town tured in Henan and Poland is to low the Russians to examine the mestic dairy products after the Besides Hatrans, there is an- be crucial in expanding access train to ensure it is adequately milk scandal that shocked the other player on the scene look- to Germany, where cargo will secured. Grzelak believes that public in 2008 in which 300,000 ing to take advantage of China’s be handled before exporting it the Chinese will have some po- children were taken ill due to new international infrastructure. further west. Barbara Dunasze- litical influence over Russia, that wska, President of the Man- is one of the reasons why the agement Board of Cargosped, Chinese delegation to Łódź was informed that PKP Cargo is so sizeable on the days of the currently servicing three trains a trains’ departure. week arriving from Henan prov- Polish producers believe that 10 trains ince. Furthermore, it has signed exporting domestic liquors and additional contracts that will en- PER WEEK WILL BE TRANSPORTING GOODS BETWEEN PO- dairy products, including milk LAND AND CHINA able the railway company to pro- [ ONE BELT, ONE ROAD vide comprehensive intermodal cooperation they will invest $5 THE TWO CONNECTIONS FROM ŁÓDŹ TO CHENGDU AND rail freight services from China to million combined, according to XIAMEN ARE AMONG OTHER SEVERAL RAIL ROUTES Europe for seven trains a week Adam Purwin, the CEO of PKP THAT BIND CHINA AND EUROPE TOGETHER WITHIN with the prospect of extending it Cargo. THE FRAMEWORK OF THE “ONE BELT, ONE ROAD” to 10 trains a week (from Henan, It is easy to condemn the en- PROJECT, WHICH IS CHINA’S MOST STRATEGIC INITIATIVE Sichuan and Yunnan provinces). tire project, to question why Po- “The new connections will form land is trying to conquer China INCLUDING 65 COUNTRIES AND 4.4 BILLION PEOPLE. a link not only between Poland with such cheap and unsophis- IN SEPTEMBER 2013, XI JINPING, THE PRESIDENT OF and China (through our logis- ticated products. One needs to THE PEOPLE’S REPUBLIC OF CHINA, SUGGESTED THAT tic depot in Malaszewicze near realize that, firstly, every cargo CHINA AND OTHER CENTRAL ASIAN COUNTRIES SHOULD the Poland-Belarus border) but has limited capacity, secondly, ESTABLISH AN “ECONOMIC BELT ALONG THE SILK ROAD,” also leading to Germany and the it is hard to impress the world’s A TRANS-EURASIAN PROJECT SPANNING FROM THE Netherlands,” she stressed. The largest producer of almost eve- PACIFIC OCEAN TO THE BALTIC SEA. A MONTH LATER, company is also holding talks on rything. Moreover, China is not IN INDONESIA, HE PROPOSED A NEW MARITIME SILK providing postal services to and lacking in electronics, it needs ROAD. JINPING’S PROPOSAL IS SAID TO BE THE MOST from Asia, with state-controlled high quality food. Hopefully, it SIGNIFICANT AND FAR-REACHING INITIATIVE THAT CHINA Poczta Polska. Furthermore, will soon get it if Hatrans Logis- HAS EVER PUT FORWARD. SILK ROAD PROJECTS WILL they plan to incorporate a spe- tics and its Chinese partners can CONNECT COUNTRIES THAT REPRESENT 55 PERCENT OF cialized distribution center for reach a consensus with Russia. e-commerce shipments into In addition, the construction of THE WORLD’S GDP, 70 PERCENT OF GLOBAL POPULATION, the Malaszewicze terminal and the multimodal terminal is defi- AND 75 PERCENT OF KNOWN ENERGY RESERVES. THE Zhengzhou International Hub nitely worth observing, because CHINESE GOVERNMENT HAS ALREADY LAUNCHED A is currently working on a similar the Chinese may eventually FIVE YEAR STRATEGIC PLAN, WITH IMPLEMENTATION terminal in Henan province. Dur- spend millions on greenfield in- EXPECTED TO BEGIN IN 2021. EUROPEAN COUNCIL ing the first stage of their mutual vestment in Poland. OF FOREIGN RELATIONS ESTIMATES THAT THE SILK ROAD INVESTMENTS WILL BE FULLY DELIVERED IN APPROXIMATELY 35 YEARS, IN 2049, THE 100TH ANNIVERSARY OF THE FOUNDATION OF THE PEOPLE’S REPUBLIC OF CHINA. [

EXPORT DESTINATION: 58 AFRICA [

Southern exposure

Africa is recording spectacular Even though Africa saw some with the number of new projects growth in the 1960s and 70s, growing by six percent in annual rates of growth and is attracting its lack of technology, institu- terms. investments from many corners of tions and organizational skills The African boom, which started the world. Will Polish companies caused disintegration of the in the early years of the 21st cen- join the race and tap the young economies. A deep- tury, has been attracting capital continent’s potential? rooted stereotype that conveys from advanced and emerg- an image of a continent receiving economies alike. Although ing international aid and export- China and India are still trailing ing asylum seekers, in turn, may the UK and the United States in soon give way, as Africa is de- terms of the value of their out- veloping fast. The thriving region ward FDIs, their role is rising. grew at a rate of five percent last After Chinese involvement in the year, beating the global average continent grew eightfold in the by 1.5 percentage points and is years 2004-2012, the country’s home to ten out of the 15 fast- Prime Minister Li Keqiang an- est growing economies in the nounced in 2014 that China’s world. The region attracted FDIs total stock in African investment worth around $80 billion in 2014, projects will quadruple to $100 BY WOJCIECH RYLUKOWSKI SHUTTERSTOCK IMAGE: billion by 2020. A substantial part the services and manufacturing out by the Polish Foreign Infor- “In the initial stage, the political of these projects will surely flow sectors. mation and Investment Agency umbrella seems indispensable,” to resource-rich sub-Saharan (PAIiIZ). The program’s objective said Majman. Nonetheless, he countries, although the times Polish business in Africa is to increase the level of Polish deems that the main hindrance when South Africa was the top The presence of Polish com- investments and share of trade to entering this market is a lack recipient of external investments panies in this landscape is still with Africa by organizing busi- of information. “Polish com- are gone. Last year, it came in modest, however, it is on the ness missions, conferences and panies were doing business in third with FDIs worth $4.2 bil- increase. According to data by training sessions, as well as by Africa in the 1980s. A lot has lion, behind Egypt ($5.5 billion) the Ministry of Foreign Affairs, promoting Poland as a business changed since then,” Majman and Mozambique ($4.9 billion). Polish firms invested €49.4 mil- partner. Sławomir Majman, the asserted. That’s why one of the Other countries that succeed in lion in 2014, which stands for head of PAIiIZ, told WBJ Ob- key activities carried out under enticing investors include Mo- 0.8 percent of the total value of server that Polish companies the GoAfrica program is raising rocco, Ghana, Congo, Angola Polish outward FDIs. The small can successfully compete in awareness among Polish com- and Uganda. Although the bulk scale of investments stems from the construction, food, chemi- panies about the continent and of the investments is in the min- a fear of allocating capital in a cal, transportation and logistics preparing them to venture into ing sector, which accounts for region associated with unrest. sectors in Africa. Their efforts the region. The same applies to some 33 percent of the total Nonetheless, the situation is need to be supported by the African partners who are invited FDI value, there is a visible shift slowly changing, partly due to government as African busi- to Poland by PAIiIZ in order to away from oil and resources, to the GoAfrica program carried ness is intertwined with politics. change their view of our country [

EXPORT DESTINATION: 60 AFRICA [ IMAGES: SHUTTERSTOCK, URSUS SHUTTERSTOCK, IMAGES: The number of tractors to be delivered to Ethiopia by Ursus under the $90 million contract.

as a fringe European economy. Polish3,000 brand sold tractors to Al- Since GoAfrica’s launch in 2013, geria, Morocco, Tunisia, Congo PAIiIZ has organized 40 events, or Ghana back in the 1970s including trade missions to Ni- and 80s. After the transforma- geria, South Africa, Zambia, tion, Ursus’ production plum- Senegal, Ghana, Morocco and meted and the ailing company good price, we have proper tion process and engage in new Algeria. The program proved to was taken over by POL-MOT technology and we are flexible, activities, as well as to raise the be successful, as Poland’s ex- Warfama in 2011. The new own- very flexible,” Zarajczyk suc- country’s output, an inflow of ports to Africa grew by 29 per- er’s concept was to win foreign cinctly put it. But he added, that FDIs may help lift Africa out of cent in 2013 and 14.5 percent in markets where the mechaniza- this is not enough. Considering poverty. It is therefore crucial 2014. When It comes to outward tion of agriculture was still in its fierce competition from Indian that investors who come to the FDIs, the agency expects that a early stage by offering simple, and Chinese companies, you continent develop links with lo- surge in Polish investments will reliable and cost-effective trac- can’t come to Africa with just an cal suppliers, transfer technol- occur in 2016, but some notable tors based on a Massey Fergu- end-product. “You have to pro- ogy and train local staff. Ursus’ projects are already being car- son license. In an effort to win pose extra value. In our case, policy corresponds with these ried out. Polish chemical giant contracts, the company carried that is technology transfer and expectations. After signing the Azoty extracts calcium phos- out a wide-ranging promotional staff training,” Zarajczyk said. contract, the company would phate from deposits in Senegal; campaign across the continent send tractor parts to be as- shipbuilding company Navimor aimed at refreshing the memory sembled in a factory run by is about to finalize the establish- of the brand. When asked by the What’s in it for Africa state-owned The Metals and ment of the Maritime Academy WBJ Observer why he decided Since foreign investors bring Engineering Corporation (ME- in Angola; Asseco signed a $10 to invest in Ethiopia, Karol Zara- capital, technology and man- TEC) in Adama, 90 kilometers million contract to deliver an IT jczyk, the CEO of the company agement that allow the host south-east of Addis-Ababa. In system to Ethiopia’s Network said that “the African market, like economy to improve the effec- May of this year, Ursus launched Security Agency; Kulczyk Hold- any other market with potential tiveness of the existing produc- its own production line within ing is the owner of a gold mine for agriculture, is interesting from in Angola and Polpharma an- our point of view. And Ethiopia nounced that it will set up a drug is the political center of Africa - factory in Algeria. if you succeed there, the news spreads across the continent.” Poles spearhead Unlike large multinationals who agricultural revolution sell over-scaled, expensive ve- Perhaps the most spectacular hicles, Ursus’ tractors come at Polish success in Africa is the a better price and are of better story of tractor producer Ursus, quality than those offered by its who won a $90 million contract Chinese competitors. The com- for the delivery of 3,000 tractors pany’s comparative advantage to Ethiopia and subsequently comes from the ability to offer a opened a production line in the product that fits the local needs. African country. The legendary “We offer value for money, a [ “

EXPORT DESTINATION: 62 AFRICA [ The African market, like any other market with potential for agriculture, is interesting from our point of view. And Ethiopia is the political center of Africa - if you succeed there, the news spreads across the continent

where the margins offer higher so is low. He further claims that profit opportunities. The manu- the Chinese come with cheap facturer already orders castings credit, but their poor qual- from domestic firms and says ity products often break before that nothing prevents the local they serve long enough to cover companies from supplying the their market value. When the lo- plant with windshields, hoods, cals cannot pay back the loan, screws and the like. they offer natural resources as repayment, which leads to neocolonial relations. Majman The moment is now agrees with the opinion, high- Ursus’ presence in the African lighting that Poland’s advantage market sets an example worth comes from the fact that it is not following. The contract in Ethio- identified as former colonizer. pia gave the company a major The head of PAIiIZ claimed that boost since the domestic mar- Polish companies perform well ket shrunk by 70 percent y/y in in the fields in which the Chi- 2013 due to the decision by the nese firms operate and have a Agency for Restructuring and chance to replace them. To be Modernisation of Agriculture successful, they would have to the METEC facility. The opening professionalism. Our only chal- (ARMiR) to curb EU subsidies for learn how to deal with the local day was attended by prominent lenge is the high staff turnover. tractors, according to Zarajczyk. administration. Unlike in Poland, figures including Nobel prize lau- Managers that work on our pro- Ursus recorded a net loss that business has to establish and reate Lech Wałęsa and Dlamini ject are highly appreciated in the year, but thanks to the Ethio- maintain good relations with Zuma, the chairperson of the Af- company’s structure and are pian deal, it managed to bounce the bureaucracy to prosper. An- rican Union Commission. quickly taken to work on other back. And it didn’t have to worry other challenge is a different ap- The manufacturing site employs projects. We already have the about funds, as the money pro- proach to time – things happen Ethiopians only, however, there third manager working with us, vided to the Ethiopian party for slower there. But, according to are around ten engineers on while the other two climbed up the purchase of tractors came Zarajczyk, the game is worth a behalf of Ursus who are tutor- the corporate ladder.” from an intergovernmental loan candle. “What happened in the ing local engineers. According Apart from training the local granted by Poland under the last 25 years in China will hap- to Zarajczyk, the cooperation staff, Ursus also wants to de- umbrella of the OECD. pen in some African countries is smooth with one exception. velop a chain of local suppliers. Zarajczyk asserts that it is the too,” and not appreciating the “METEC is a big company that Currently, it is focusing on sell- right moment to enter the mar- market at this moment may re- employs around 60,000 peo- ing as many tractors as pos- ket, because the reputation of sult in barriers that will be difficult ple and we are pleased with sible, but ultimately its target is those who have been operat- to overcome later. the cooperation and the level of to develop a spare parts market, ing there for the last ten years or $10 million was the value of Asseco’s contract for delivery of an IT system to Ethiopia’s Network Security

Agency URSUS IMAGE: FOR CLIENTS ONLY

magazyn czasu wolnego wiosna 2015

elektrodeskorolki, tatuaże domowej roboty, dziwaczne samochody, donuty

Chłopaki z curly heads opowiadajà o swoich poczàtkach sneaker on egzemplarz promocyjny egzemplarz nr 15, wiosna 2015 #

www.cp.valkea.com 2 APRIL 2015 • WBJ OBSERVER

Ad_investing.indd 124 10/15/15 4:30 PM POLAND’S 50 LARGEST INDUSTRIAL COMPANIES (2014)

Revenues from Company Sector sales in 2014 Address Website

Rank (in PLN thousands)

POLSKI KONCERN Raw materials 1 106,832,000 ul. Chemików 7, 09-411 Płock www.orlen.pl NAFTOWY ORLEN SA and fuel

POLSKIE GÓRNICTWO ul. Marcina Kasprzaka 25 2 NAFTOWE Gas 34,304,000 www.pgnig.pl 01-224 Warsaw I GAZOWNICTWO SA

Raw materials ul. Elbląska 135 3 GRUPA LOTOS SA 28,501,887 www.lotos.pl and fuel 80-718 Gdańsk

PGE POLSKA GRUPA ul. Mysia 2, 4 Utility 28,137,000 www.pgesa.pl ENERGETYCZNA SA 00-496 Warsaw

ul.Marii Skłodowskiej-Curie 48, 5 KGHM SA Mining 20,492,000 www.kghm.pl 59-301 Lubin

TAURON ul. Ks. Piotra Ściegiennego 3 6 Utility 18,440,763 www.tauron-pe.pl POLSKA ENERGIA SA 40-114 Katowice

ul. Grażyńskiego 141 7 FCA POLAND SA Automotive 13,335,870 www.fiat.pl 43-300 Bielsko-Biała

ul. 8 Marca 6 8 PGE OBRÓT SA Utility 12,391,794 www.pge-obrot.pl 35-959 Rzeszów

ul. Kwiatkowskiego 8 9 ENERGA SA Utility 10,590,595 www.energa.pl 33-101 Tarnów

ul. Kossaka 150, 10 GRUPA AZOTY SA Chemicals 9,898,476 www.grupaazoty.com 64-920 Piła

ul. Górecka 1 11 ENEA SA Utility 9,855,395 www.enea.pl 60-201 Poznań

VOLKSWAGEN POZNAŃ ul. Warszawska 349 12 Automotive 9,543,911 www.volkswagen-poznan.pl SP. Z O.O. 61-060 Poznań

TAURON ul. Łagiewnicka 60 13 Utility 7,813,689 www.tauron.pl SPRZEDAŻ SP. Z O.O. 30-417 Kraków

Data provided by: POLAND’S 50 LARGEST INDUSTRIAL COMPANIES (2014) POLAND’S 50 LARGEST INDUSTRIAL COMPANIES (2014)

Revenues from Revenues from Company Sector sales in 2014 Address Website Company Sector sales in 2014 Address Website Rank Rank (in PLN thousands) (in PLN thousands)

POLSKI KONCERN Raw materials ul. Powstańców 30 1 106,832,000 ul. Chemików 7, 09-411 Płock www.orlen.pl 14 KOMPANIA WĘGLOWA SA Mining 7,751,033 www.kwsa.pl NAFTOWY ORLEN SA and fuel 40-039 Katowice

POLSKIE GÓRNICTWO POLSKIE SIECI ul. Marcina Kasprzaka 25 Energy distri- ul.Warszawska 165 2 NAFTOWE Gas 34,304,000 www.pgnig.pl 15 ELEKTROENERGETYCZNE 7,100,583 www.pse-operator.pl 01-224 Warsaw bution 05-510 Konstancin-Jeziorna I GAZOWNICTWO SA SA

Raw materials ul. Elbląska 135 JASTRZĘBSKA SPÓŁKA ul. Aleja Jana Pawła II 4 3 GRUPA LOTOS SA 28,501,887 www.lotos.pl 16 Mining 6,814,936 www.jsw.pl and fuel 80-718 Gdańsk WĘGLOWA SA 44-330 Jastrzębie-Zdrój

PGE POLSKA GRUPA ul. Mysia 2, Energy distri- Al. Grunwaldzka 472 4 Utility 28,137,000 www.pgesa.pl 17 ENERGA OBRÓT SA 5,552,256 www.energa.pl ENERGETYCZNA SA 00-496 Warsaw bution 80-309 Gdańsk

Al. Tysiąclecia ul.Marii Skłodowskiej-Curie 48, GRUPA AZOTY ZAKŁADY 5 KGHM SA Mining 20,492,000 www.kghm.pl 18 Chemicals 5,426,999 Państwa Polskiego 13 www.pulawy.com 59-301 Lubin AZOTOWE PUŁAWY SA 24-110 Puławy

TAURON ul. Ks. Piotra Ściegiennego 3 ul. Łucka 7/9 6 Utility 18,440,763 www.tauron-pe.pl 19 BORYSZEW SA Chemicals 5,058,120 www.boryszew.com.pl POLSKA ENERGIA SA 40-114 Katowice 00-842 Warsaw

ul. Grażyńskiego 141 ul. Stawki 40 7 FCA POLAND SA Automotive 13,335,870 www.fiat.pl 20 BUDIMEX SA Construction 4,949,939 www.budimex.pl 43-300 Bielsko-Biała 01-040 Warsaw

ul. 8 Marca 6 ul. Chemików 1 8 PGE OBRÓT SA Utility 12,391,794 www.pge-obrot.pl 21 SYNTHOS SA Chemicals 4,618,845 www.synthosgroup.com 35-959 Rzeszów 32-600 Oświęcim

ul. Kwiatkowskiego 8 POLSKA SPÓŁKA ul. Marcina Kasprzaka 25 9 ENERGA SA Utility 10,590,595 www.energa.pl 22 Gas 4,340,849 www.psgaz.pl 33-101 Tarnów GAZOWNICTWA SP. Z O.O. 01-224 Warsaw

ul. Kossaka 150, Energy distri- ul.Hoża 63/67 10 GRUPA AZOTY SA Chemicals 9,898,476 www.grupaazoty.com 23 PKP ENERGETYKA SA 4,316,887 www.pkpenergetyka.p 64-920 Piła bution 00-681 Warsaw

ul. Górecka 1 Energy distri- ul. Marynarki Polskiej 130 11 ENEA SA Utility 9,855,395 www.enea.pl 24 ENERGA OPERATOR SA 3,874,358 www.energa-operator.pl 60-201 Poznań bution 80-557 Gdańsk

VOLKSWAGEN POZNAŃ ul. Warszawska 349 Freight trans- ul. Grójecka 17 12 Automotive 9,543,911 www.volkswagen-poznan.pl 25 PKP CARGO SA 3,804,672 www.pkp-cargo.pl SP. Z O.O. 61-060 Poznań port 02-021 Warsaw

TAURON ul. Łagiewnicka 60 FCA POWERTRAIN ul. Grażyńskiego 141 13 Utility 7,813,689 www.tauron.pl 26 Automotive 3,497,349 www.fiatgroup.pl SPRZEDAŻ SP. Z O.O. 30-417 Kraków POLAND SP. Z O.O. 43-300 Bielsko-Biała

Data provided by: POLAND’S 50 LARGEST INDUSTRIAL COMPANIES (2014)

Revenues from Company Sector sales in 2014 Address Website

Rank (in PLN thousands)

KATOWICKI HOLDING ul. Damrota 16-18 27 Mining 3,388,971 www.khw.pl WĘGLOWY SA 40-022 Katowice

ul.Puławska 182 28 CIECH SA Chemicals 3,243,900 www.ciechgroup.com 02-670 Warsaw

Mining and ul. Mickiewicza 29 29 WĘGLOKOKS SA 3,061,712 www.weglokoks.com.pl utilities 40-085 Katowice

ul. Jasnogórska 1 30 CAN PACK SA Packaging 3,030,878 www.canpack.eu 31-358 Kraków

ul. Podgórki Tynieckie 2 31 DELPHI POLAND SA Automotive 2,875,297 www.delphikrakow.pl 30-399 Kraków

ul.Wygoda 69 32 STALPRODUKT SA Metals 2,858,537 www.stalprodukt.pl 32-700 Bochnia

ul. Mydlana 2 33 VOLVO POLSKA SP. Z O.O. Automotive 2,829,005 www.volvogroup.com 51-502 Wrocław

ul. Łucka 7/9 34 IMPEXMETAL SA Metals 2,819,488 www.impexmetal.com.pl 00-842 Warsaw

ZESPÓŁ ELEKTROWNI ul. Kazimierska 45 35 PĄTNÓW-ADAMÓW- Utility 2,680,111 www.zepak.com.pl 62-510 Konin KONIN SA

Energy distri- ul. Wybrzeże Kościuszkowskie 36 RWE POLSKA SA 2,541,700 www.rwe.pl bution 41 00-347 Warsaw

ul. Piłsudskiego 82 37 CMC POLAND SP. Z O.O. Metals 2,509,180 www.cmc.com 42-400 Zawiercie

ul. Żegańska 1 38 ABB SP. Z O.O. Automotive 2,433,692 www.abb.pl 04-713 Warsaw

GRUPA AZOTY ZAKŁADY ul. Kuźnicka 1 39 Chemicals 2,412,443 www.zchpolice.com CHEMICZNE POLICE SA 72-010 Police

Data provided by: POLAND’S 50 LARGEST INDUSTRIAL COMPANIES (2014)

Revenues from Company Sector sales in 2014 Address Website

Rank (in PLN thousands)

GDF SUEZ ENERGIA Energy distri- ul. Zawada 26 40 2,410,531 www.gdfsuez-energia.pl POLSKA SA bution 28-230 Zawada

GRUPA AZOTY ZAKŁADY ul.Mostowa 30 a 41 AZOTOWE KĘDZIERZYN Chemicals 2,055,616 www.grupaazoty.com 47-220 Kędzierzyn-Koźle SA

LUBELSKI WĘGIEL BOG- Bogdanka 42 Mining 2,013,568 www.lw.com.pl DANKA SA 21-013 Puchaczów

Energy distri- ul. Krucza 24/26 43 POLENERGIA OBRÓT SA 1,991,429 www.polenergia.pl bution 00-526 Warsaw

FIRMA OPONIARSKA ul. 1 Maja 1 44 Tires 1,837,805 www.debica.com.pl DĘBICA SA* 39-200 Dębica

ul. Kościuszki 111 45 GRUPA KĘTY SA Metals 1,819,552 www.grupakety.com 32-650 Kęty

BRENNTAG POLSKA SP. ul. Bema 21 46 Chemicals 1,736,953 www.brenntag.pl Z O.O. 47-224 Kędzierzyn-Koźle

ul. Obornicka 46 47 SOLARIS BUS & COACH SA Automotive 1,699,227 www.solarisbus.com 62-005 Bolechowo-Osiedle

HUTCHINSON POLAND Leśnianka 73 48 Rubber 1,611,957 www.hutchinson.com.pl SP. Z O.O. 34-300 Żywiec

ul. Puławska 300A 49 ERBUD SA Construction 1,577,830 www.erbud.pl 02-819 Warsaw

Wysogotowo, Skórzewska 35 50 PBG SA Construction 1,530,248 www.pbg-sa.pl 62-081 Przeźmierowo

Data provided by: TO ADVERTISE: TOMASZ PAWLAK, [email protected], +48 501 791 461 SUBSCRIPTION: MONIKA BRYSIAK, [email protected] Industry Partners

Beyond.pl is an innovative, leading data center operator that Panattoni Europe is a European branch of one of the larg- provides businesses with a reliable IT infrastructure. The com- est developers in the US, Panattoni Development Company, pany was established in 2005, and since then it has become a established in 1986 by Carl Panattoni. In subsequent years, flagship brand for data center and cloud computing services, new branches appeared, initially in the US and Canada, as with customers from a whole range of industries. It’s also the well as the UK and across the whole of Europe. Since 2005, first carrier-neutral data center in Poland with access to Tier1 that is from the onset of Panattoni’s presence in Europe, the carriers and all internet Exchange points. Beyond’s infrastruc- developer has built over 3.2 million sqm of modern indus- ture includes two state-of-the-art data centers with over 12 trial space. Panattoni has offices in Prague, Luxembourg, 000 sqm of total area. Beyond.pl Data center 2 is the biggest Hamburg,Munich, Warsaw and Bucharest. and most innovative facility in the country. Beyond.pl distin- panattoni.pl guishes itself on the market thanks to a complex approach Warsaw Financial Centre towards its customers’ IT needs. It is among the top three ul. Emilii Plater 53 Data Centers Providers in Poland, number one quality leader 00-113 Warsaw and the only data center provider with managed services. tel. +48 22 540-7171 beyond.pl [email protected] ul. Półwiejska 32 61-688 Poznań tel. +48 61 859-7007 [email protected]

The mBank Group offers companies and individual cus- WB Electronics S.A., is the continuator of technological tomers a wide range of products and services to meet their transformation in the Polish army and the defense sector. Op- financial needs. The offer is complemented by leasing, factor- erating in the field of specialized electronics and military IT, it ing and a full range of brokerage services. The Group also has led the Armed Forces of the Republic of Poland into the comprises the mortgage bank mBank Hipoteczny. Affluent 21st century, setting binding standards in key areas for nation- customers who value top-class tailor-made expert financial al security. It is the leader of the WB Group – the largest private services and an individual approach can use private banking defense industry group in Poland. It is an exporter of concepts and asset management services offered by the mBank Group. and technologies to several dozen countries around the world, mBank has decided to combine forces under the mBank including the US. It is guided in its business by innovation and brand, as it enjoys the strongest recognition of all members the creation of major technological breakthroughs. The busi- of the group and provides its services to millions of clients ness philosophy adopted by us is expressed in a product of- in Poland, the Czech Republic and Slovakia. So far mBank fer that has incorporated unique solutions on a global scale, has been associated not only with innovative solutions in elec- implemented in the toughest and most demanding markets. tronic banking and mobile banking, but also other modern wb.com.pl ventures and projects. ul. Poznańska 129/133 mbank.pl 05-850 Ożarów Mazowiecki mBank S.A. tel. +48 22 731-2500 ul. Senatorska 18 fax +48 22 731-2501 00-950 Warsaw [email protected] tel. + 48 22 829-0000 [

PARTNERS: 70 [

Industry Partners

KGHM Polska Miedź S.A. is a global, innovative and modern company, that has been conducting advanced geological, mining and metallurgical activities for over 50 years. The company focuses on ore mining, production of copper, precious metals and other non-ferrous metals. KGHM is the world’s largest silver producer and one of the top producers of copper in the world. It boasts a geographically diversified portfolio of mining projects. Its facilities are located on three continents – Europe, North and South America. The operations are carried out in accordance with the highest environmental standards and regulations. The achievements in the field of corporate social responsibility are widely recognized wherever KGHM manages its activities. The KGHM Group operates nine mines in Poland, Canada, the US and Chile as well as four projects in the investment and pre- investment phase, including Ajax and Victoria projects located in Sudbury, Canada. Owing to its global expansion, KGHM has access to key global resources including copper, silver, gold, rhenium, nickel, platinum group metals and molybdenum. The knowledge and experience of KGHM employees facilitates the extraction and processing of valuable natural resources, making it possible to develop the modern world. kghm.com ul. M. Skłodowskiej-Curie 48 59-301 Lubin tel. +48 76 747-8200

Strategic Partners

The Polish Information and Foreign Investment Agency (PAIiIZ), helps investors to enter the Polish market and find the best ways to utilize the possibilities available to them. We guide investors through all the essential administrative and legal procedures that are involved in a project; we also support firms that are already active in Poland. We provide rapid access to complex information relating to legal and business matters associated with investments, help to find appropriate partners and suppliers, and new locations. PAIiIZ’s mission is also to create a positive image of Poland across the world, promoting Polish goods and services. paiz.gov.pl

ul. Bagatela 12, 00-585 Warsaw tel. +48 22 334-9800

[email protected] or [email protected] The Polish-African Chamber of Commerce and Indus- Polish-Indian Chamber of Commerce is a bilateral try (formerly The Polish-African Chamber of Commerce) is chamber, which was registered on March 9, 2009, with an association of businesspeople. It was founded through the aim of promoting and fostering commercial and eco- the initiative of Polish ambassadors, Polish honorary con- nomic relations between Poland and India. The Chamber suls present in Africa, African and Polish entrepreneurs in- provides a platform for Polish and Indian companies to volved in projects in Africa, and experts who have worked explore business opportunities in both countries, such as or are working in Africa. Members of the Chamber have imports, exports, joint ventures and greenfield investments. strong business relationships and political contacts in Po- The PICC identifies common interests and the exchange of land and in African countries, which are necessary to initiate information regarding economic activities in both countries. and develop businesses in these two geographical areas. Since its creation the PICC has organized many business The Polish-African Chamber of Commerce and Industry missions, fairs, conferences and seminars both in Poland creates a business environment with the aim of gathering and India that have highlighted the business potential of and propagating information about financial markets and both countries and offered opportunities to establish direct the economic conditions which support the economic ac- contact with Polish and Indian entrepreneurs. In our daily tivity of Polish and African companies. The main role of the activities we focus mostly on business consultancy services Chamber is connecting business partners with a view to co- - market research, credit reports, and searching for busi- operating with relevant entities in Africa and Poland. ness partners in both countries. paig-pacc.com www.piig-poland.org ul. Plutonu AK “Torpedy” 41, 02-495 Warsaw World Trade Center Poznan tel. +48 729 335 222 ul. Bukowska 12 [email protected] 60-810 Poznań tel. +48 531-522-899 [email protected]

The Italian Chamber of Commerce and Industry in Po- The Polish-Iranian Business Council was established land (CCIIP) is an independent association of employers to promote co-operation and improve relations between operating in the Polish market. The Chamber, founded in The Republic of Poland and The Islamic Republic of Iran. 1996, represents Italian investors in Poland. However, mem- The activities of The Council include cultural and business bership is also be open to Polish capital companies. On 27 exchange, promoting both countries and enhancing bilat- January 2015, by Decree of the Italian Minister of Economic eral understanding. The PIBC works closely with the media, Development, our association has been recognized as an scientificinstitutions, governments and NGOs in Poland and official Italian Chamber of Commerce abroad. Our objec- Iran to help create the appropriate grounds for social and tives are to promote the Italian system in Poland, support business relations. the economic growth of associated companies and represent our members before local authorities, Polish and Ital- The PIBC also aids private enterprises in expanding into the ian institutions and associations. Our Chamber is headquar- region with the goal of successfully exploiting new business tered in Warsaw with a branch in Katowice and it is in the opportunities. Members of the PIBC have access to a wide process of finalizing a partnership for Poznan and roclaw.W variety of resources, expertise and services to help facili- Warsaw, Katowice tate cross-cultural understanding and expansion into both ul. Kredytowa 8/26 ul. Mickiewicza 29 countries. 00-062 Warsaw 40-085 Katowice www.pibc.org.pl tel. +48 22 828-2008 tel. +48 32 207-2316 Al. Jana Pawła II 80, 00-175 Warsaw [email protected] [email protected] [email protected] [

PARTNERS: 72 [

The Indo Polish Chamber of Commerce and Industry The German-Polish Chamber of Commerce, founded (IPCCI) was established in 2007. The IPCCI’s goal is to in 1995 and now the biggest Chamber of Commerce in develop Indian and Polish business and industry relations. Poland (1,000 member companies), supports bilateral busi- Additionally, we aim to ensure that the government and so- ness ties and provides a range of services for German and ciety as a whole, understand needs of both and their contri- Polish companies. It’s first task is to foster the bilateral busi- bution to the nation’s economic development. We work to: ness partnerships of both countries, in particular: to inform identify and strengthen business and industry’s role in the potential investors about opportunities in their neighboring economic development of the countries; act as a catalyst in country by publishing key facts, attending trade fairs, orga- bringing about the growth and development of Indian and nizing more than 200 networking events annually and ac- Polish business; identify and address the special needs of companying German and Polish investors on visits to Po- the small sector to make it more competitive; promote co- land/Germany. operation with counterpart organizations; work towards the ahk.pl globalization of Indian industry and integration into the world ul. Miodowa 14, 00-246 Warszawa economy. We work with various organizations providing a tel. +48 22 531-0500 platform for an exchange of knowledge and experience so tel. +48 22 531-0600 that Polish and Indian cooperation can continue to be fruit- [email protected] ful. Ipcci.pl ul. Taśmowa 7, 02-677 Warsaw [email protected] [email protected]

The French-Polish Chamber of Commerce and Indus- try (CCIFP) is an employers’ association bringing together The British Polish Chamber of Commerce has been over 450 French and Polish firms. For 21 years the CCIFP networking business relationships in Poland since the early has been working for the interests of Polish and French in- days of the market economy. Today we reach out across vestors by acting as a networking platform for the exchange Poland and the UK promoting the best of each country. Our of business experiences and best practices between compa- executive team works with you to support your business nies. Last year the CCIFP organized around 100 events such growth. Partnership and networking is at the very heart of as business mixers, conferences, seminars, meetings with what we do. Whether you are a large global corporation or influential politicians and economists, gathering nearly 6,000 a small company employing a few people – if you’re doing participants. business between Poland and the UK – we want to speak ccifp.pl with you. In recent years we have been recognized as the ul. Widok 8, 00-023 Warsaw best British chamber in continental Europe no fewer than tel. +48 22 696-7580 four times by COBCOE, a network of over 10,000 busi- tel. +48 22 696-7590 nesses in over 30 European countries. Joining us enables [email protected] you to network and expand your business in Poland, one of Europe’s highest growth potential economies. bpcc.org.pl ul. Zielna 37, 00-108 Warszawa @[email protected] Investing in Poland available now !

* voivodships featuring * special economic zones 2016 * trends