Investing in Poland 2017 Investing in Poland 2017 Featuring Trendbook

INVESTING IN POLAND 2017 INVESTING IN POLAND 2017 FEATURING TRENDBOOK

Strategic Partners:

Industry Partners: Cosmopolitan_Radzimir_Debski_Investing_in_Poland_210x297.indd 1 21/11/2016 17:13 TABLE OF CONTENTS:

Foreword 2-11 Lubuskie 54-56 From the Editor-in-Chief 2 Łódzkie 58-59 EY 4 Małopolskie 60-61 PZU 6 Mazowieckie 62-63 PAIiIZ 7 Opolskie 64-65 Polish-German Chamber of Industry and Commerce 8 Podkarpackie 66-68 Italian Chamber of Industry and Commerce in Poland 9 Podlaskie 69-70 French-Polish Chamber of Industry and Commerce 10 Pomorskie 71-72 Polish Business and Innovation Centers Association 11 Silesia 73-74 Świętokrzyskie 75-76 Warmińsko-Mazurskie 77-78 Trendbook Poland 12-43 Wielkopolskie 79-80 Introduction 12 Zachodniopomorskie 81-82 Chemicals: The basic component industry 14-16 IT Systems for the defense industry (Partner Feature) 17 Special Economic Zones 84-91 Defense: The PLN 130 bln dilemma 19-21 Industrial and Technology Parks 92-94 Energy: Decarbonization - a must or heresy? 22-25 Partners 95-98 Banking: Taxing times ahead 26-29 Logistics: In top gear 30-31 IT: What’s blocking the cloud? 32-34 Real Estate: Big deals, bigger volumes 35-37 BPO: Millennials - hope for BPO 38-40 Interview with the Chinese Ambassador 41-43

Voivodships 44-82 Introduction 44-45 Kujawsko-Pomorskie 46-48 Lower Silesia 50-51 Lubelskie 52-53

Publisher: Morten Lindholm Key Accounts: Magdalena Klimiuk, Justyna Lund, Editor-in-Chief: Jacek Ciesnowski ([email protected]) Katarzyna Pomierna, Jola Zbieg Managing Editor: Beata Socha ([email protected]) PR & Marketing Manager: Anna Augustyniak-

Valkea Media SA Copy Editor: Michael Evans Hoffman ([email protected]) ul. Elbląska 15/17 Art Director: Wiesław Galach Print & Distribution Coordinator: Krzysztof Wiliński 01-747 Warsaw, Poland Graphic Designer: Aleksandra Szydło % +48 22 257-7500 All photos: Shutterstock, local autorities, Wikimedia, 6 +48 22 257-7599 NIP: 525-21-77-350 partners and companies Sales & Marketing Director: Tomasz Pawlak ([email protected]) INVESTMENTS STILL STRONG DESPITE SLOWDOWN

Jacek Ciesnowski, Editor-in-Chief, Warsaw Business Journal Group As always, we’ve highlighted selected sectors and industries that we think are driving foreign investments to Poland. Thanks to the countrys central location its a perfect t for the loistics sector. The real estate sector is recording record-levels of transactions.,and despite recent drawbacks with the helicopter tender, the defense sector is still looking to spend billions in the coming years. The IT, BPO, chemistry and energy sectors are as strong as ever, and even the banking sector, which was hit by legislation (bank tax and the Swiss franc loan conversion), is currently on the brink of a major phase of consolidation. n the followin paes youll nd a comprehensie picture of the olish inestment landscape. here are full proles of olands 16 This is the 8th edition of the Investing in Poland annual, which voivodships and major cities with the most crucial information re- we publish to promote Poland as an excellent place for FDIs (for- garding local infrastructure and contact information. We also pro- eign direct investments). The biggest CEE economy has faced a le all of olands Special Economic ones and list all of olands few economic challenges lately. GDP projections for 2016 have major technology parks. Finally, and probably the most important already been slashed from the initial 3.8 percent to 3.4 percent in aspect of this publication, all of the published information and data the budget draft approved by the Polish parliament. But with the was gathered and selected by the editorial staff of the Warsaw readin of .5 percent and many nancial institutions such as Business Journal Group, who are responsible for a number of the IMF and rating agencies slashing the forecasts even further, Poland’s most trusted English-language publications, in coopera- the . percent ure miht still be too optimistic. tion with our partners, who assisted us with their knowledge and The value of FDIs in Poland has also dropped, albeit only slightly. experience. In 2015, some PLN 712 billion was invested in Poland, according to Poland’s Central Bank, compared to PLN 741 billion in 2014. ut despite the droppin alue other ures are uite impressie. According to EY consultancy, Poland was the 5th most attractive investment destination in Europe in 2015, with 23 percent more FDI projects than the year before and with 15,485 workplaces created (3rd in Europe).

335480-Prasa-Witelo 210x297 v2.indd 1 18.11.2016 14:17 335480-Prasa-Witelo 210x297 v2.indd 1 18.11.2016 14:17 Partner feature

POLAND A SAFE HARBOR FOR NEW INVESTMENTS

These are some of the reasons why Poland ranks among the top European countries, and on pole position in CEE. Paweł Tynel, At the same time, we understand that this should not be taken for Partner EY granted. This competition is like in sport – you are only as good as your last game. New investors are the best examples of Poland’s position on the investor map. Investing in Poland should Goernments are chanin but one may be clear and condent be analyzed through the about one thing – that in Poland there has been, there is, and there success stories of thou- will be a government willing to attract new businesses and open for sands of companies that discussion about how to convince you to select Poland. have made new invest- In the last decade, a lot has been done in terms of infrastructure, ments in the last 27 years accessibility and telecommunications, but nowadays great pres- – a new era after the fall of sure is placed on the availability of skilled people. There are a lot of communism. Since 1989, activities targeted at supporting technical schools and cooperation Poland has become a between high-schools and business. And this is done in order to central point of interest to help inestors nd people with the necessary skills and motiation. investors, not only for Central and Eastern Europe, but also for the I strongly believe that next to the experiences of the last 27 years, whole of Europe and the world. our talent pool and availability of people constitute one of Poland’s Its large and attractive internal market – with more than 16 cities greatest assets that can be offered to new investors. Undoubtedly, with over 200,000 inhabitants from which investors can source it is a reason for the success and strong presence of SSC/BPO people for their operations – has become the initial factor for the centers in Poland. It has become a critical industry segment for selection of Poland as a home for new projects. thousands of people employed there. For those last 27 years, Poland has experienced only growth in Nowadays, the world does not offer many opportunities with per- terms of GDP. This remarkable achievement, unheard of anywhere fect stability, availability of people, and a good mix of costs. There else in the world, has not been missed by investors and it has in- are always some challenges, but Poland can be perceived as a creased the leel of condence and stability. safe choice and a safe harbor for new investments. Experiences ondence is one the of most critical aspects that companies are from the most important players on this market – investors – are the looking for. In Poland it is understood that by selecting a country, best ustication and conrmation of this statement. investors are speculating on their own business cases, their own future income, and also on their own careers. We understand how important these decisions are. Therefore, the experiences and rec- ommendations of actual investors are always the best indicators in these discussions. Poland has been a leader of change in the region for the last 27 years and has also been a leader in attracting investors. At EY we conduct our “EY Attractiveness Survey” annually and this year’s results proved that Poland is still highly regarded by investors. Some 211 new projects, and almost 20,000 jobs have been created, and Poland has reached 5th position in the ranking of all European countries perceived as the best places to make a new investment.

Partner feature

WITELO FUND FROM OUR TERRITORY, THAT IS FROM POLAND

near future this will translate into its rst inestments. he plan is for this to transpire at the turn of 2016 and 2017. Paweł The creation of this type of hub, however, requires not just capital, rwa, E P but also know-how and relations with leading Polish and international ye investors whom we would like to invite warmly to join the Witelo Fund. In recent months, we have conversed with more than 100 venture capital funds from Silicon alley in the S Germany and srael. his has made it possible for Polish start-ups to meet with representatives In nostra terra, scilicet Po- of leading venture capital investors such as Mjolnir Ventures, Team- lonia – from our territory, est aladin apital Group and eriech durin the ESE that is from Poland. That conference that took place in Kraków. Ultimately, the Witelo Progam is how Witelo, a Polish will hae 500 million at its disposal and the Group intends to physicist, mathematician, invest at least PLN 200 million. It will operate as a closed-end mutual philosopher and opti- fund investing in privately held assets (FIZAN) managed by TFI PZU. cian, described himself. I have no doubt that it is high time Poland became an active partici- He came from Silesia and pant and beneciary of the ourth ndustrial eolution. here is one was probably born in Legnica as the son of a Polish mother and a prerequisite – we must make up for the distance that separates us settler from Thuringia around 1230 and he died around 1300. He was from the key technology innovation centers operating in Silicon Valley one of the most prominent European scientists during the Middle in the S srael erlin and ondon. hat is the task at hand for the Ages, during which he laid the foundations for associative psychol- Witelo und. t will act as a bride between scientic centers in o- ogy. In his works he proved that the “eye does not retain any other land, young businesses and the business world. It will subsequently information besides light, color and apparent size,” while it is the mind commercialize their landmark ideas with the active participation of that “converts impressions using representations taken from experi- leading Polish businesses. It is our ambition for Witelo to become ence.” To frame it differently, one may see the same thing differently, a trampoline for implementing many innovative solutions that will di- or going one step further, one may see something others do not see. rectly contribute to developing the Polish economy. This will make it ne may be the rst to discoer slumberin potential. possible for the industrial revolution to take place along the Vistula This is how this medieval scholar from Poland gave the best lesson River even more rapidly than expected. in business. That is why it was a natural step that he became the he medieal Witelo was the rst to promote oland in the salons of patron of the Witelo Fund, an undertaking that is unparalleled across global science. I do not conceal the fact that his accomplishments Europe. This project has been forged by PZU and the National Center have inspired us. We would like the Witelo Fund to follow in its pa- for Research and Development under the patronage of the Ministry tron’s footsteps and become Poland’s greatest ambassador. Ulti- of Science and Higher Education and the Ministry of Development. mately, we would like for what our eyes see to be seen by the whole Through Venture Capital funds, Witelo is to support the pursuit of world. After all, here – in our territory, i.e. in Poland – is the best venue innovative projects from their early stage of development (start-ups) for investments and carrying out innovative projects. until they reach operational capabilities and can engage in business expansion. On one hand, this entails the creation of centers to develop innovative technologies in Poland (hubs) with whose assistance start-ups will gain the ability to operate globally. On the other hand, this is linked to investments in the best venture capital funds that will support these hubs through their efforts. The Witelo Fund has of- cially launched operations and the Group is its rst inestor hain subscribed for the rst series of inestment certicates. n the Partner feature

WITELO FUND FROM OUR EUROPEAN SAFE HAVEN TERRITORY, THAT IS FROM POLAND FOR INVESTMENTS

Those are only some of the examples from about one week of activity at PAIiIZ. But there are more illustrations of how the Polish Tomasz Pisula, investment landscape has changed and continues to develop. President of the Polish Information urrently the Aency supports 177 proects. Some 70 of them and Foreign represent the business serices sector and 11 are associated Investment Agency with R&D activity. n Europes uncertain reality oland has aain proed to be a safe haven for investors. A few years ago, our country was a refuge for those who suffered because of the global economic crisis. Today, we are the gateway to Europe for companies looking for a new location because of Brexit, the fear of migratory ows or the wae of terror across the ld ontinent. The investment climate Poland has a solid and stable economy and friendly investment in Poland is considered climate. Our country is still on the rise and offers excellent busi- one of the best in Eu- ness conditions. We invite you to invest in Poland and join the rope, and our investors Polish business community. agree that deciding on Poland as the place for their business is a wise choice. It is well known in the business world that an investment in Poland means access to a broad market and highly skilled staff. Investments in Poland have evolved along with the evolution of the Polish economy. Today, companies investing in our country are attracted by the knowledge and the experience of Polish employees. More and more companies that invest capital here, like Mondelez okia and nit in Wrocław or GE ealthcare in Kraków, have decided to implement complex processes and R&D activity in Poland. Only recently, I participated in the inauguration of three innovative investment projects. One of them is a Lithium-Ion battery production facility for G hem near Wrocław the ery rst of its kind in Europe. ee n-eom president of G hems energy systems division, declared that the company will turn the Polish battery plant into a mecca of battery production for EVs around the world. Another example is the production line of Van Genechten ackain. his elian company owns plants in 10 countries, but it is in Poland where the investor has decided to start one of the largest, and certainly its most modern, production lines. And of course Daimler, which is planning to build a new high-tech engine plant in Jawor. Markus Schaefer, member of the Board of Mercedes, revealed that the company considered seen locations for its factory. oweer when aimlers delea- tion came back from Jawor they just said three words: “this is it.” Partner feature

BUILDING BILATERAL TIES

Taking over from the US, Poland is looking forward to its role as the Partner Country at HANNOVER MESSE 2017, the world’s Michael Kern, biggest industrial fair. Not only because Germany is its largest CEO and member of the Board of the trading partner, but also because Poland’s industry has made Polish-German impressive progress concerning volume and innovation. Chamber of Industry and Commerce The German partners have noted and appreciated that fact and (AHK Poland) are intensifying bilateral ties with Poland. In spring, North Rhine Westphalia opened its rst forein representation in the Euro- pean Union and the location couldn’t be more telling – Warsaw, near the Polish-German Chamber of Industry and Commerce. As a result, NRW joined the federal state of Bavaria, which AHK Poland has been honored to represent for the last 10 years. I am convinced that targeted efforts towards the innovative Pol- Over 1,500 German in- ish industry and friendly investment environment will pay off in vestors that took part in positive investment trends and the transfer of modern technolo- the investment attrac- gies in the coming years. tiveness ranking of CEE countries in spring 2016 ranked Poland second among its regional competition. Only Czechia earned a better score – 4.1 compared to Poland’s 4.0 points in the 6-point scale. Following Poland were Slovakia and Estonia with 3.9 points each. In the eyes of German investors, Poland’s main advantages remain its E membership its employees - their skills ualica- tions, commitment and productivity, as well as the constantly growing availability and quality of local suppliers. Once a draw- back, Poland’s infrastructure has gained better notes every year and is now ranked just outside the TOP 5 factors by German investors. Motivated by the continuously improving investment environment, 43 percent of the survey interviewees plan to increase employment in Polish units and 36 percent want to increase investment expenditure compared to the previous year. The best indicator of Poland’s strength and the commitment of companies with German capital in Poland is, that 95 percent of them declare that they would still invest in the country if they had to choose again. Poland is not only a large and attractive sales market for German companies, and not only a meaningful supplier of German industry, but also increasingly a partner in high-tech projects, including: ICT, industrial automation, e-mobility and energy sectors. Partner feature

A FLOURISHING ECONOMIC ENVIRONMENT

the Government, the multiannual plan should involve PLN 1,000 billion – more than half of Poland’s GDP. Elisabetta Caprino, The plan offers positive perspectives for Italian investments both Secretary General CCIP in traditional industries such as aerospace, armaments, automotive, shipbuilding, chemistry, and in innovative and dynamic start-ups that can benet from seeral adantaes. On the innovation side, the new economic program is stimulating the emergence of a large number of young, dynamic companies. In this context, Italian SMEs with creative and original ideas could take adantae of the ourishin economic situation and enter the Polish market. As an afrmation of the condence of talian inestors towards Polish industry, a giant from the defense sector, Leonardo-Fin- For the year 2016, the meccanica, recently declared the launch of a long-term strategic growth forecast for Po- partnership with Polska Grupa Zbrojenionwa aimed at know- land’s GDP is 3.5 per- how and technological skill exchange, leading to cooperation in cent. The Polish economy has grown continuously for 23 years, the research deelopment and production elds. successfully overcoming the global recession, and it will continue to grow in 2017. Polish public debt is among the lowest in the whole of the European Union at 52.5 percent of GDP, the decit is .8 percent while the unemployment rate is at 7 percent – slightly higher than that of Germany. In addition to macro-economic data, there are several other factors that make this country very competitive for Italian investments: its strategic position in the middle of Eastern and Western markets, its relatively low electricity price, availability of important facilities for investments, and lower labor costs. Trade between Italy and Poland amounts to €16.4 billion and has increased by more than 60 percent over the past decade. There are more than 1,300 Italian companies actively operating in Po- land. In any case, despite the current positive economic environment, Italian investors are thinking long-term, when Poland will no longer be able to rely on low-cost labor, EU structural funds will no longer be crucial, and infrastructural delays will be overcome. For these reasons, they are looking forward to the implementation of the new economic program drawn up by vice president Mateusz Morawiecki. The program is aiming to ensure a steady development and strengthening of the industrial sector and giving incentives to sectors based on innovation and R&D. According to Partner feature

POLAND’S GREAT POTENTIAL

Another eample from this year this time in the eld of automated solutions for residential buildings, is Somfy, a company created in 1969 with eight production facilities in different countries. So far, the Monika Constant, General Director French company has invested PLN 117 million in Poland and created French-Polish more than 300 jobs, and is currently preparing another investment Chamber of Industry and Commerce worth PLN 90 million. Its goal is to expand the production plant in iepołomice near Kraków creatin an additional 00 obs. he production capacity of the eistin plant in iepołomice will be increased through the purchase of new production lines of modern drives and Polish-French economic control systems, tailored to the requirements of the smart and envi- cooperation has been a ronmentally friendly construction sector. tradition for more than 20 years. French companies As for the defense sector, it is impossible not to mention Thales. are among the most im- During the International Defence Industry Exhibition in Kielce, rep- portant foreign investors resentatives of the Polish Armament Group (Polska Grupa Zbrojen- in our country. Between iowa Mesko from Skarysko and the rench company hales-A 2004 and 2013, the cumu- informed that they had initiated cooperation. Production of modern lative value of French investments has more than doubled, from €8.4 missiles using inductive electronics and wireless technology will be- to €19.2 billion. France is also one of the largest foreign employers in in in Skarysko both for the domestic and the forein market. his Poland. In 2013, 1,378 enterprises with French capital were operating agreement also means that there will be a transfer of technology to in Poland, employing approximately 250,000 people. Key industries Poland. with French capital on the Polish market are: manufacturing, and wholesale and retail trade, as well as information and communication These are just a few examples of French investors which this year services. It is primarily in these areas that Polish entrepreneurs can are strengthening their presence on the Polish market, thus impact- count on the support and expertise of experienced French compa- ing the development of the national economy. For over 20 years, the nies, which are often looking for local partners and professionals. French-Polish Chamber of Commerce has created favorable conditions for further investment, supporting cooperation between the two One of the latest examples of a dynamic French investor is Safran, countries in many different ways. We are convinced that the common which is continuously developing its position in the US investment- future of France and Poland will be built under the symbol of mutual dominated Aviation Valley, using the potential of Podkarpackie trust and experience exchange. Every day, we do everything in our voivodship specialists. According to the most recent information, power to make such a perspective possible. Poland is the largest enineers from Sędziszów Małopolski are to build transmission country in Central and Eastern Europe. Between developed Western systems for a new generation of Airbus and Boeing LEAP air- economies and major Eastern markets (Russia and Ukraine), it oc- craft engines. A new plant is also under construction next to the cupies a strategic position on the map of Europe. A stable economy, Safran Transmission Systems Poland factory, which has already developing infrastructure and skilled specialists are the main advan- been operational for 15 years. The total value of the investment tages attracting foreign investors and showing the great potential amounts to PLN 160 million. The quality of products from the Pod- waitin to be utilized. karpackie voivodship has encouraged Safran to locate another factory dedicated to the production of LEAP engine components in Sędziszów. he new factory will launch in April net year and should eventually employ almost 300 professionals. The French roup is also buildin another new factory in nearby opczyce for approximately PLN 200 million, this time in cooperation with Rolls-Royce. Partner feature

POLAND’S GREAT POTENTIAL INSTRUMENTS OF SUPPORT FOR ECONOMIC DEVELOPMENT

addressed by industrial and technology zones and parks. Given that there are still very few small and medium-sized manufacturing companies in Poland, such initiatives are an essential element of arena aewa, support for the development of regional markets. Preent Pl ne an Regional authorities are in some way involved in almost every park nnatn enter or zone initiatie and they hae a sinicant impact on the rane of atn n Plan the support infrastructure that is visible in many centers. In cooperation with the zones and parks, various initiatives are organized, which activate the local and regional environment that disseminate knowlede in the eld of technoloy and the deelopment of coop- The mission of a special eration networks between entrepreneurs. economic zone is the After more than 20 years of construction and development of busi- development of econo- ness support infrastructure, zones and industrial/technology parks mically poor regions. In- have become an essential element of regional economic policy. dustrial parks focus their The process of consolidating the activities of different types of insti- activity on creating new tutions is not usually carried out as a result of their merging, but by workplaces by reorgan- building partnerships between them in selected areas. An example izing post-industrial and degraded areas. Technology parks are an of such a solution is the cooperation of Wrocław echnoloy ark element of a new direction in economic growth, and a stimulus for with regional authorities in relation to the creation of the Park based innovation. on the remaining assets of the former National Wagon Factory PA- Rapid technology growth and progressive globalization are serious AWAG in Wrocław. challenges for the activity of those elements of economic growth From the beginning, foreign investors represent a group of high sig- that support infrastructure. Initial assumptions, which informed nicance in economic zones that contribute to the deelopment of their creation, have changed as time has passed. New challenges, economically weak areas. Also, among the residents of technology such as the expectations of their role and offer, have caused SEZs parks the number of rms in which the owners or shareholders and parks to extend their activity by widening the basic operative are foreign has increased. This tendency has appeared in the last prole that addresses the needs of enterprises includin start-ups. three years, which means that it is not only Polish start-ups that are Although in the traditional concept of industrial parks and zones reaching for foreign markets, and investing in Poland is attracting there is a complex system of investor support (help with prepa- the attention of small innoatie rms. ration to invest, post-investment support, administrative help) and management infrastructure services, it is increasingly common that within their framework, technological parks and incubators are beginning to appear (such as the Pomerania Economic Zone). Equally, business incubators, which have quite a wide formula of embracin rms with technoloical potential zestochowski Industrial-Technology Park, Kedzierzyn-Kozle Industrial Park), are increasing in number. The spectrum of support provided to companies also includes other areas of activity, such as the creation of laboratories, prototyping zones and exhibition spaces.

In recent times, companies have begun to show a growing in- STOWARZYSZENIE ORGANIZATORÓW terest in laboratory and production areas, which is quickly being OŚRODKÓW INNOWACJI I PRZEDSIĘBIORCZOŚCI W POLSCE 12 Moving and Relocation Companies, cont’d 10 Firmy przeprowadzkowe, cd. Modes of Services • Usługi

transport Środki transportu Company name Address Tel./Fax Top local E-mail executive / Web page Selected clients Title Kolejność Nazwa firmy Other Wybrani klienci Szef firmy Adres revenue Total Inne w Polsce / Przychody Przychody ogółem Servic areas firmy w Polsce Tel./Faks Montaż mebli / Pakowanie / Tytuł Rank • OC przewoźnika Number of relocations Sea / Air E-mail Liczba przeprowadzek Obsługiwane regiony Raod / Rail Strona www z przeprowadzek Przychody sectors / Residential Military Ownership: Polish / Foreign Ownership: Polish USŁUGI USŁUGI FINANSOWE Morski / Powietrzny Drogowy / Kolejowy Sprzątanie / Magazynowanie Właściciele: Polscy / Zagraniczni Number of vehicles: Trucks / Vans Number of vehicles: Trucks Odprawa celna / Ubezpieczenie Rozbicie przychodów: Sektor biurowy Revenue from moving/relocation services Liczba przeprowadzek tygodniowo / of employees / Year founded in Poland of employees / Year ISO certificate / Carrier’s insurance Revenue breakdown: Office and industrial FINANCIAL SERVICES i przemysłowy / Mieszkaniowy / Wojskowy mienia w transporcie / Certyfikat ISO / Customs clearance / Cargo insurance mln zł Liczba pojazdów: Ciężarówki / Furgonetki Furniture assembly / Packing / Cleaning assembly / Packing Furniture Liczba pracowników ogółem / Rok założenia Warehousing • Warehousing 2014 / 2013 / 2012 % number Number of relocations per week / Total Relocation services; home search; artwork and antiques packing and

MOTORYZACJA I TRANSPORT AGS Warsaw Sp. z o.o. ul. Julianowska 37, P P transport; vehicle registration; None WND WND WND WND office and machine relocation WND Brak Antoine 05-500 Piaseczno P P Worldwide P P WND NR WND WND 1,050 WND Usługi relokacyjne; poszukiwanie WND WND Mobilitas – Duquesnay 22 702-1072/22 702-1077 P P Cały świat P P WND Director WND WND 980 WND domów; pakowanie i transport 1992 99%; AGS Dyrektor MOTOR INDUSTRY AND FREIGHT [email protected] P P dzieł sztuki i antyków; rejestracja Paris – 1% www.agsmovers.com samochodów; przeprowadzka biur i maszyn Full range of relocation for In our Trendbook section, we profile selected sectors that we predict The automotiveforeigners (documents, sector home has seen some major investment in recent search, on-site orientation); transport of pets and vehicles; will Gosselinemerge Mobility in the Poland coming years. The central location makes it a per- years and while some potentialEmbassy projects of the still do not come to fruition ul. Nowa 23, Stara Iwiczna, P P packing and transport of artwork None Piotr WND WND 460 25 and antiques Kingdom of the 9 Brak fect05-500 location Piaseczno for logistic hubs and centers, Poles’ PincomesP Worldwide are gettingP (Psee our story on the JaguarNederlands/ plant on p.503 ), many more are Dmowskiantici- NR WND WND 390 70 Pełen zakres usług relokacyjnych 10 Corstjens General Director 22 737-7200/22 737-7277 P P Cały świat – – Ambasada 3 bigger and they can affordWND more,WND the380 real estate5 sector is also boom- pated. dlaWhile obcokrajowców coal (uzyskiwaniestill dominates the energy mix1999 and Internationalwill continue Dyrektor to [email protected] P P dokumentów, poszukiwanie Królestwa – 100% Generalny ing www.corstjens.comwith all residential, retail and office branches on the rise. With the do so indomów, the wycieczki future, orientacyjne); other sources Niderlandów are becoming more prominent and transport zwierząt i pojazdów; Polish government increasing defense spending in the last year and the newpakowanie regulations i transport dzieł concerning sztuki prosumers will create new business i antyków adopting the multi-year, multi-billion army modernization plan, many possibilitiesComprehensive and markets. relocation Last, but not least is IT. For years, Polish services: work permits, residence military contracts are up for grabs, the most recent one concerns engineerspermits, have visas, on-site been orientation, praised worldwide for their expert knowledge AsMove always, One Relocations we’ve highlighted selected sectors and industries that we The chemistryhome and school sector search, vehiclehas beenIBM; HP; theP&G; PwC;backbone of Polish industry for drones,Sp. z o.o. but many more are in the pipeline. Poland’s banking service but theyregistration, mostly legalization worked of forColgate international Palmolive; concerns, often abroad. Al. Jerozolimskie 65/79, WND WND 700 5 P P 14 Piotr think are driving foreign investments to Poland. ThanksP P Worldwideto the counP - decadesP documents and withfor foreign strong nationals PolishEmbassy companies of Canada/ 1 (Grupa Azoty,None Ciech) and NR 00-697 Warszawa WND WND 600 85 Kompleksowe usługi relokacyjne: Ambasada Kanady; 25 Brak Piekarowicz is one of the most modern in Europe, for exampleP contactlessP Cały świat payP - However,– within the recent start-up culture2 they are choosing toPresident stay trys central location its a perfect t for the loistics sector. he real 22 630-8161/22 630-8166 WND WND 600 10 many forein rms AS W it is one of the most innoatie in pozwolenia na pracę, zezwolenia Embassy of the US/ 2000 Lucella LTD Prezes [email protected] are the norm here, while in the rest of the EU, you are someP - inP Polandna pobyt and czasowy, develop wizy, wycieczki innovative Ambasada Stanówproducts. They design and manu- estatewww.moveoneinc.com sector is recording record-levels of transactions, and despite Europeorientacyjne, and getting poszukiwanie stronger domów eachZjednoczonych year. In terms of energy, due to re- times still asked to sign a receipt. The chemical sector is also relying facture excellenti szkół, rejestracja 3D pojazdów, printers and drones, who knows, maybe soon recent drawbacks with the helicopter tender, the defense sector is still cent developmentslegalizacja dokumentów in legislationdla which made investments in renewa- heavily on innovations. your smartphoneobcokrajowców will be made in Poland? Notes:looking NR = Not to Ranked, spend WND = billions Would Not Disclose.in the Research coming for the listyears. was conducted The in ITApril and 2015. NumberBPO of sectorsemployees and Uwagi:bles rather difcult to prot from the business is turnin back to coal NR = Poza rankingiem, WND = Dane nieujawnione. Informacje zbierane były w kwietniu 2015 r. Liczba pracowników i struktura observer ipad.pdf 1 10.06.2015 11:30 ownershipare as structure strong are as of as April ever,2015. All informationand even pertains theto the bankingcompanies’ activities sector, in Poland. whichCompanies notwas responding hit toby our własnościwhich, z kwietnia despite 2015 r. Wszystkie its many informacje drawbacks,dotyczą działalności firm continuesw Polsce. Firmy, które to nie beodpowiedziały the dominantna naszą ankietę, nie survey are not listed. zostały uwzględnione w rankingu. legislation (bank tax and the Swiss franc loan conversion), is currently force in the country’s energy mix. on the brink of a major phase of consolidation. At Avis we belive in delivering exceptional service as standard. We’re everywhere You can rely on us. Warsaw Business Journal’s Avis offet includes: C Observer brings readers the • Short - term rentaql, M stories, companies, personalities Y • Mid-term Avis Flex rental (1-12 months) CM and successes that are driving and Maxi- Rent 12+ rental (12-24 months), MY

CY Poland forward and creating the • Long term Full Servioce Lease (24-48 months), CMY Polish market. • Chauffer drive, K • Van rentals.

Central Booking Office: Sales departament: Tel. +48 22 572 65 65 Tel. +48 22 572 65 04 Tel. 0 801 120 010 e-mail: [email protected] e-mail: [email protected] www.avislease.pl www.avis.pl

152

Moving and Relocation.indd 152 10/15/15 4:28 PM reklama_INVESTING IN POLAND_10_2016_v1.indd 1 13.10.2016 12:55:19 POLAND A SAFE HARBOR FOR NEW INVESTMENTS SECTOR ANALYSIS: 14 CHEMICALS

Poland’s chemical The basic sector made a signiﬁcant leap last component year and is preparing for further growth industry fueled by considerable

BY KAMILA WAJSZCZUK investment. Before it catches up with its biggest competitors, it will have to face many challenges – from strict environmental standards to innovation enironmental standards ieliński added.

he chemical industry in oland has been continuously rowin Quest for materials for more than 0 years and 015 has proen to be an eception- Een thouh the situation is now improin oland is likely to ally ood year. he alue of sold chemical production has been continue recordin a forein trade decit in chemicals for many rowin continuously since 1995. n 015 it increased by slihtly years to come. ne of the reasons is the absence of easily ac- more than 5 percent y/y to 1 billion from 17 billion cessible reasonably priced raw materials such as crude oil and in 01. his is sinicant rowth of 7 billion y/y while in natural as. here are many product roups that we cannot preious years annual rowth was at around billion said manufacture and hae to import larely due to the absence of omasz ieliński president of the board of the olish hamber some raw materials in the country and the dependence on their of hemical ndustry . import. his includes crude oil where we are practically fully de- his ood condition is also isible as an increase in employment pendent. A similar situation can be obsered in terms of natural numbers up by some 1000 obs to around 66000 in 015 as the epert added. a rowth of .7 percent accordin to the . he hihest ne eample of such a product is methanol the basis for many rowth in the number of employees can be obsered in small other chemical products with a market of some 0.5 million met- and medium-sized enterprises especially in the plastics se- ric tons used annually in oland and no manufacturin in the ment. country because the main raw material reuired to produce Another factor is the improement of the forein trade balance methanol is epensie natural as. een thouh it is still in decit. n 01 the decit deepened to some etent due to the situation on East European markets Another leap ahead? ussia and kraine. hat situation inuenced the trade poli- Another sinal of the sectors ood performance is the onoin cies of many companies sinicantly especially smaller ones. increase in inestment. Accordin to data there was a rise n 015 the trend was reersed. he decit is now at 5.7 in capital ependitures of almost 1 percent y/y to about billion and more than 6 percent lower than in 01. oth eports 7.5 billion in 015. and imports rew last year ieliński eplained. ih cape is especially isible in olands larest chemical While it could be assumed that the improement of the forein companies. he market leader Grupa Azoty is in the midst of trade balance is connected to chanes on currency markets a 7 billion inestment proram inolin 68 proects which eperts hae eried that that is not the case the trade is now subect to erication but unlikely to be sinicantly cut. balance has improed in terms of olume. eertheless it is riately-owned Synthos has not declared any lon-term inest- hard to say whether the positie trend will be continued in the ment plans but in 016 the company plans to inest a total of comin years. 500 million followin a cape of 577 million in the pre- n many sements of the chemical sector the trade policy is to ious year. t has already spent 80 million on the acuisition of react uickly and moe to new markets with hiher marins and European epanded polystyrene producer ES Styrenics. t if marins are better on indiidual domestic markets the oods epects the takeoer to increase its styrene processin capacity stay in oland. ften businesses prefer to buy cheaper oods to more than 600 tons annually. n ielińskis opinion the indus- abroad. his is one of the problems we hae for eample the try has solid round for further rowth. We are still a deelopin ussian market proides cheaper oods produced without hih sector with a lot of potential. he consumption of chemicals per SECTOR ANALYSIS: 16 CHEMICALS

“The chemical industry is crucial for the Polish economy. Chemicals are Poland’s second biggest export, after electronics and mechanical machinery.”

capita calculated in euros is still almost twice as low as in the most developed markets (€550 per capita in Poland, €1,400 in Key sector data for 2015 Germany). In plastics the situation is similar, however consumption is growing and Poland has climbed to sixth place in Europe Foreign trade balance: PLN -25.7 billion in this category. When we look at the level of development and Sold production value: PLN 144 billion the size of the plastics segment, we can say it could still be bet- Employment: 266,000 ter,” he said. Capital expenditures: PLN 7.5 billion The path to growth may include a number of obstacles though. The chemical sector is very sensitive to many regulation issues, especially in terms of environmental protection. This includes Source: PIPC estimates a large package of environmental issues – from climate issues such as CO2 emissions to domestic regulations on matters rational policies, regulation and legislation, and through defend- such as water access. The sector’s high level of complexity ing and strengthening the competitive position of companies. means that it is prone to additional costs stemming from such Finally, through mechanisms that support innovation, such as regulations. “We make attempts to protect ourselves from nega- sector prorams ieliński commented. tie nancial conseuences of reulation policies both in the In terms of innovation, chemical companies may be divided into EU and domestically. Addressing these challenges is now our two groups: those that improve products and those that im- biest problem ieliński eplained. Another maor issue is ac- prove or introduce new processes. “In this aspect, the sector cess to raw materials. “First of all, it’s important to have diver- differs from the rest of the economy, especially the base chemi- sication in opportunities. his is more realistic in the case of cals segment, where almost 15 percent of businesses have natural gas – the gas market could be liberalized, which could introduced a new product since 2012. In the case of plastics lead to a decline in prices,” he added. producers the share is 10 percent. The situation is much bet- What chemical companies are looking forward to is the planned ter in the case of production process or technology innovation expansion of Poland’s natural gas pipeline network and the de- – the shares are 22 percent and 15 percent respectively,” said velopment of what may be called a regional gas trading hub. ieliński. Plans include the expansion of the newly opened LNG terminal Innovation in chemical companies is usually directed at the de- or the construction of a oatin storae reasication unit either velopment of production processes, and technologies – this of which could help the country diversify its imports of the fuel. was also visible in entries to the INNOCHEM competition. “De- elopin new products reuires hiher risk and hiher epen- Road to development ditures. New technologies are also important in view of stricter One of the biggest challenges any sector has to face is innova- regulations – sometimes we cannot look for cheaper materials tion. “Looking at the chemical sector in Western Europe, we also or energy so we look to cut costs on the processing side, in have a technology gap to cover, especially in developing innova- enery efciency and so on. When older production assets are tion ieliński said. replaced the replacements are tted with modern innoatie In cooperation with the National Centre for Research and De- technologies,” the PIPC president said. velopment (NCBR) the PIPC has launched the INNOCHEM pro- The situation could still be better, he added. “The main driver ram nanced from within the current E-fund scheme and in the sector comes from large tonnage companies and most aimed at supportin chemical innoation. he rst competition important from the point of view of innovation is the need to as part of the program was carried out this year and a second develop specialty products, which may be produced in lower competition is now being prepared to start at the end of this uantities but with hiher marins. Analysis has shown that year. Poland – and Europe in general – should follow this direction,” While all maor players include research and deelopment as he stressed. ieliński also beliees that chemical businesses part of their strategies, Synthos stands out by having launched should enhance cooperation with scientic institutions. n our its own public uest for innoation the Synthos hemical opinion, innovation should be a regular mechanism, run on an Award competition for scientists workin in the eld of chemis- everyday basis. But because we are lagging behind, we should try. The company is offering a PLN 1 million prize to the winner, carry out innoatie processes uickly and continue to deel- due to be announced for the rst time in ebruary 017. We op products and processes we already have. At this stage, it see that the sector needs many supporting mechanisms in this would be much more difcult if not for the support of the o- area rst of all on the part of public administration both throuh ernment,” he said. Partner feature

ERP/PLM IT SYSTEMS FOR THE DEFENSE INDUSTRY

sions of the same software), so the danger of costly mistakes can arise. Moreoer it is not sufcient to manae ust simple data blue- Preyław e eal Pret prints and uantity but the contractor needs to uphold uality and retr contractual requirements imposed by a military customer. To confuse T ere Pla the situation even more, one should keep in mind that nowadays it’s not uncommon to hae seeral proects with deadlines that miht conict and delay each other. his situation unless properly man- For the last year, the Pol- aed could een eopardize national security. ne is epected to nd ish Defense Industry has a way to manage the entire enterprise in a way to minimize those been undergoing sub- conicts and to secure delieries and subseuent support on time stantial and fundamental and on budget. changes. Emerging chal- Careful consideration of all these issues (any many others not men- lenges must be properly tioned here) leads to the conclusion that the only solution is a proven addressed. Among them, and properly implemented ERP/PLM (Enterprise Resources Manage- the most important is ment/roduct ifecycle Manaement system with multi-proect how to satisfy the grow- management capabilities built into the core feature set of the system ing needs of the Polish Armed Forces and, simultaneously, how to in a way that makes those capabilities intrinsic to the manufacturing improe business efciency. process. Such a system makes it possible to run multiple proects The Polish Armament Group (a key player in defense manufacturing under tight cost constraints and schedule controls, while maintaining in Poland) has recently announced some key business operational contractual and military regulatory compliance within a single enter- goals. These are: prise view (i.e. as requested by the Group). 1. lear nancial control and manaement at roup leel The ERP/PLM solution addresses the needs, constraints and re- 2. Coordination of the business activities of the particular companies uirements of this network and proides efcient manaement of within the Group (to avoid internal competition) the cooperation. As a result, mechanical, electronics, software and 3. Improved cooperation of defense manufacturing companies, with simulation data as well as documents and bills of materials Ms their specializations preserved. are managed and shared in a single and secure environment. Stand- The last goal means that manufacturers are expected to manage a ardized workows and processes can be etended to suppliers and broad and complex supply and cooperation network, which supports subcontractors. Therefore, a combination of the ERP solution and the ery specic nature of the products they build and their lon life PLM system can provide full management for a military product’s cycle after they are delivered (military products usually have a longer lifecycle from the concept/desin stae to the nal scrappin after lifetime than non-military ones and should have a high modernization many years. capacity). It is important to note that such cooperation starts at the And last, but not least, a highly experienced ERP/PLM implementa- preliminary design level (supported by CAD/CAE tools and solutions) tion partner is strongly recommended, there is no room for experi- and lasts until the life cycle of the manufactured product nishes sup- ments here. S&T has an unparalleled knowledge and experience in ported by ERP and PLM systems). the successful implementation of such solutions based on Design and development cooperation requires control of the multi- ERP LN and Siemens Teamcenter PLM software, in key Polish de- domain design processes, including mechanical, electrical, electron- fense industry companies. ics, software and simulation data and managing that data from a single secure source. The quality of the data should be validated and the completeness of design data should be secured before release to manufacturing. The situation becomes even more complex if the companies use different CAD/CAE software (or even different ver-

The PLN 130 billion dilemma On one hand, experts are saying that it is not enough and we need to be spending more. On the other, so far Poland has only spent a portion of the funds earmarked for this objective

BY JACEK CIESNOWSKI SECTOR ANALYSIS: 20 DEFENSE

When, a few years ago, the Polish government announced the ey of the olish defense industry compiled by the ational new army modernization plan worth PLN 130 billion, arms pro- entre for Strateic Studies. he number of administratie or- ducers worldwide immediately saw dollar signs. With recent geo- ans inoled in acuirin military euipment makes manain political changes in the region, the need to increase spending is and coordination ery difcult the report read mentionin a socially accepted and ustied. Accordin to a recent surey by staggering 15 bodies that can be involved in the process. On the Boston Consulting Group, 24 percent of Poles feel that con- top of that, the whole process takes ages, each step of the ventional war is a valid threat, while 26 percent are afraid of hybrid tender procedure can take up to 18 months according to Polish war. Only 27 percent of respondents think that Poland is prepared law and with the seat of the minister of defense changing hands for military conict. n such an enironment its a bi surprise that every 18 months on average, the delays can be even longer. Poland is lagging behind when it comes to actual spending. The Another fault of the system is the lack of a coherent well- biggest tender to date, for helicopters, even though it was decided thought out plan on what the army actually needs. Very of- in 2015, is still being negotiated and looks like the tender process ten the description of the euipment in the tender looks like a will be issued again. patchwork of ideas from different departments, often impos- Still, many, including the current leadership, have called for an sible to fulll. understand that the army miht hae different even bigger increase in spending and are labeling the current plan needs when it comes to euipment. hey can write it down in as insufcient and chaotic. We combined all the different plans the tender process but you cant order producers to include together, for choppers, tanks, missile defense systems and oth- eery sinle thin in the nished product. We hae to prioritize ers. We added up the ures and the result was 10 billion and the army should choose a producer which can implement said Krzysztof Krystowski, the President of the Board and the most of the thins. Sometimes its impossible to hae eery- Manain irector of -Świdnik. thin said Krystowski.

Too many cooks Past burdens espite all of that the olish Army cant een spend all the While many things have changed in Poland since the fall of funds they currently hae. n the rst three years of the current communism, the defense sector is still dragging its feet. Until modernization plan, only 70 percent of the earmarked budget 1989 oland mass produced arious military euipment most- was allocated. And thats only proidin that the epenses for ly based on Soviet Union licenses. The bulk of production was 2016 are fully covered. The reasons for such a delay are multi- sold to other member states of the Warsaw act. n 1987 there ple. irst and foremost its bureaucracy and a lack of manpower. were as many as 250,000 people employed in the sector. The he rench Aency responsible for buyin military euipment restructurization process continues to this day. has 1500 workers the olish one has only 00 said Wociech Currently, the biggest state-owned defense group Polska Gru- awłuszko an epert from the esław A. aa oundation. he pa Zbrojeniowa (PGZ) encompasses 64 companies with 20,000 same conclusions were presented in the recent report Strat- employees, which seems too big for such small demand. “The French Agency responsible for buying military equipment has 1,500 workers, Innovate and create the Polish one The sector is one of the last few that still remains in Polish hands, whether state or privately owned. It also allows for some state has only 400.” protectionism and security against foreign takeover. This all makes it a perfect candidate to boost the whole economy. Un- fortunately one key component is missing – technology. Only 2 percent of R&D military projects are implemented. There’s a lack of funds earmarked for investment in innovative technologies, and there is no long-term cooperation with universities. n top of that there is sinicant bureaucracy inoled which hampers R&D. The process from concept to execution in this sector takes years. This deters many investors from enteringg ments more of a marketing tool rather than a crucial boost to the industry and keeps spending on R&D below 1 percent of the military sector. GDP. All of this marginalizes Polish companies. Even though After the fall of communism, the country was left with huge they receive preferential treatment in tenders, they don’t even production facilities, but no products and markets for them, as participate in them, because there are no Polish-made planes, all countries in the Eastern bloc wanted to obtain more modern tanks or submarines. The answer to this might be offset (ar- weapons from the West. After Poland joined NATO, the Pol- rangements in which the seller of a product or service agrees to ish Army had no other choice but to replace outdated Soviet buy products or services from its client as an inducement). But equipment with that which met Alliance standards. with limited innoations its often difcult for olish companies This is a unique point in Polish history, Warsaw has money, to bring anything else to the table but servicing, refurbishing ambitious plans and high demand. Now it’s time to reform the or assembling services. Transfer of technology, as part of the aspects that stand in the way, and the road to modernization offset agreement, will be hard to enforce, making such agree- can become an open highway. SECTOR ANALYSIS: 22 ENERGY

Decarbonization – a must or heresy?

Poland didn’t use the opportunity to tap into elevated coal prices on the world markets to increase the eectiveness of coal extraction. Instead of reinvesting the proﬁts, they were consumed. Now the mining sector generates huge losses and remains a headache for the government, which is pushing to make it proﬁtable again

BY WOJCIECH RYLUKOWSKI loss last year and there are no signs that the trend will turn around any time soon. Poland’s dependency on coal has historical roots. Accel- erated industrialization after the World War II required increased coal extraction, which reached its peak in the 1970s and 80s, when Po- land became the fth biest coal producer in the world. Eports of the fossil fuel allowed the communist party to receive much needed foreign currency from the West. The scale of operations was so enormous that the authorities had to offer wide-scale social benets and privileges to entice workers to come to the Silesia region, Poland’s coal heartland. At that time, miners were the apple of the eye of the ruling party. However, within a decade after the fall of communism, demand for coal fell by 40 percent as many heavy industry plants were shut. Between 1998 and 2002, when the government, led by Jerzy Buzek, undertook the biggest restructuring effort in recent history, around 100,000 miners were laid-off. In total, the number of coal miners working in the industry fell from 400,000 at the beginning of the 1990s On April 26, 2016, representatives of mines, power companies, to 140,000 in 2002 and further to around 100,000 in 2015. Despite banks nancial institutions and unions sined an areement to es- the decreasin number of underround workers oerstafn and tablish new coal entity Polska Grupa Górnicza (PGG) in yet another low productivity have become main features of the sector, negatively bid to heal the Polish mining sector. The new company emerged in affectin its protability. the place of the now defunct Kompania Węlowa KW which would But there are also other reasons for the poor results: deposits that have gone bankrupt if it wasn’t for the last-minute accord. The state- were easily accessible have already been extracted, geological owned biest coal producer in Europe recorded a loss of approi- conditions are difcult mines are underinested and characterized mately PLN 700 million in 2014 and around PLN 1 billion the following by low effectiveness. On top of that, miners and administrative staff year. With 15 mines in its portfolio only three were protable and the hae enoyed unreasonable benets includin a thirteenth and een biggest laggard, the Brzeszcze mine, generated losses of PLN 247 a fourteenth salary, bonuses for miner’s day, transport cost refunds, a per ton. coal allowance worth a few thousand złotys a year ouchers for food Prior to establishing the new entity, the four worst performing pits and others. Top management have been politically nominated, with were handed over to state-owned mining restructurization company salaries not correspondin to nancial results. (SRK) to later be shut and the 11 remaining mines formed PGG. The oweer the maor factor makin coal etraction in oland unprota- idea behind the new project is that twelve investors will recapitalize ble is the low prices on world markets. Poland’s deep mines compete the coal group to the amount of PLN 2.42 billion, with Polish state- with open pit mines in Australia, the US, Kazakhstan and elsewhere, owned power rms GE Enera and GiG contributin the most where extraction costs are much lower. In Russia, the cost of pro- - PLN 500 million each in fresh capital for a stake of 17.1 percent. And ducing a ton of coal may be as low as $25, whereas in some Polish banks Alior ank ank G aribas GK WK and K mines, it amounts to more than $100 per ton. Although 90 percent of alon with state-owned Węlokoks declared the acuisition of demand is satised with domestic production oland is a net import- new GG bonds worth 1.7 billion as a result of the renancin er of coal, which means it imports more than it exports. Janusz Stein- of the current KW bond program. After the agreement was reached, hoff, former minister of the economy and the man responsible for the Enery Minister Krzysztof chórzewski declared that mines will in- sector reorganization in Buzek’s government, admitted that “not only crease productivity and effectiveness of coal extraction, making PGG falling coal prices led to this situation, but also a lack of any motivation the best coal enterprise in Europe. ut the ministers optimism is to carry out the restructuring process, making empty promises and based on thin premises. ignoring economics by the previous government.” Nonetheless, in the last couple of years, the mining sector in Poland Poland is based on coal had been brinin in prots as prices on the world markets were ery For many, many years the sentence “Poland is based on coal” has hih. n 011 olish mines earned billion but the prots were been repeated like a mantra, becoming a kind of common wisdom. consumed and spent on higher salaries instead of being reinvested to The truth is that 85 percent of energy in Poland is produced from coal, increase effectiveness. With China’s slowdown and Australia’s grow- but the other truth is that the sector recorded nearly a PLN 2 billion net ing extraction, such price hikes are unlikely to occur again. Additionally, SECTOR ANALYSIS: 24 ENERGY

“the conservative Law and Justice government has passed a law banning construction of wind farms close to dwellings and hiking property taxes for wind farm owners, with the unspoken aim g of stiﬂing the industry.”

Western countries and the US are decreasing their dependency on With Poland’s deposits, coal should provide energy security for at coal, selling surpluses on international markets. And falling oil prices least the next 20 years. But it’s time to think of other sources. “Poland have further dragged down the prices of coal, which declined from should differentiate its energy mix. Considering lack of investments in the all-time high of nearly $140 in January 2011 to the unprecedented the coal sector, we will be coal importers in the future,” Steinhoff said. low of $48.6 in January 2016. Despite that, he is not a supporter of moving away from coal. The issue of protability should be soled by far-reachin restructurization “Decarbonization is heresy” and the problem of CO2 emissions should be tackled by upgrading “If a country has 90 percent of European coal deposits, if the energy infrastructure. “Why eliminate one of the sources of energy? The only sector is based in a decisive way on coal, then speaking of decar- reasonable way of reducing CO2 emission in Poland is increasing the bonization is heresy and has an anti-state character,” said President effectiveness of coal combustion. We have outdated power plants Andrzej Duda, referring to Poland’s energy security and economic and there is huge space for modernization,” Steinhoff claimed. None- calculation. There is widespread belief that energy from coal is the theless, upgrading infrastructure is a costly undertaking and with cheapest, which is generally true, but the case of Poland is more capital involvment in the coal group, energy companies may have comple as the nal price of one MWh doesnt show hidden costs. trouble nancin it if the GG proect turns out to be a op. er the past 5 years the state has nancially supported the minin sector throuh direct and indirect subsidies includin nancial Will it work this time? transfers, canceling outstanding debt against central and local gov- So, how economically viable is the new governmental plan to res- ernment, subsidizing social security contributions and internalizing cue PGG with money from power utilities? The ministerial optimism externalities. According to a report by Greenpeace, the bulk of direct expressed in the declaration that it will be the best coal company in subsidies were channeled into the mining sector in the 1990s prior to Poland joining the EU. It was at that time when the most comprehensive restructuring plans were carried out. In the last couple of years however, due to EU law, this form of public aid was limited to R&D, downsizing workforces and environmental recultivation. Despite that, the state still nances the sector with abundant cash ows. or eery złoty paid into the S social security scheme by a miner the state adds another PLN 0.8. Considering that miners retire early (aged 48 on average) and the chances that they will reach retirement age are 1/3 greater than in the case of an average man, the hidden value of subsidies to the social security scheme amounts to 152 percent, Greenpeace said. Overall, the total value of public aid to the mining sector and coal-based electricity generation amounted to around PLN 160 billion between 1990 and 2012, Greenpeace estimated. In comparison, the state supported energy production from renewables with the sum of PLN 19 billion in the period 2005-2012, of which PLN 7.4 billion was earmarked for co-rin biomass which indirectly supports the coal sector and PLN 4.7 billion went to old hydroelectric power stations. Only PLN 6.9 billion was spent on wind farms and other new generation renewables. his wont chane anytime soon as Enery Minister Krzysztof Tchórzewski recently declared that “because of the renewable energy madness we are reducing our GDP growth.” In the meantime, the conservative Law and Justice government has passed a law banning construction of wind farms close to dwellings and hiking property taxes for wind farm owners with the unspoken aim of stiin the industry. Europe is not equally shared. Think-tank WiseEuropa said in a re- to increases of around three percent for private users. Should the port that the integration of the energy sector with the mining sector restructurization of GG fail each household could face coerin will have negative economic consequences unless it’s followed by the unprotable mines with an annual sum of between 0 the closin of consistently unprotable mines and increasin the ef- and 60 WiseEuropa said. t also added that in the net two fectiveness of the others. It means limiting coal extraction by 40 per- decades, the energy companies would have to spend billions of cent in Poland’s three biggest mining companies and reducing the złotys on modernizin infrastructure to maintain competitieness. workforce by half by 2018. The report also stated that PGG, in the he inestment in GG without its further reoranization could limit form that it emerged under the April agreement, has little chance of inestment capabilities of GE and Enera by 1 billion. bein protable. he accord stipulates that only 000 out of 500 miners will take advantage of the voluntary redundancy program or Success conditional on political will the early retirement scheme. ead of Solidarity at KW ousław oes coal minin in oland hae a future he eample of the Sile- Hutek admitted that unions have agreed to suspend the fourteenth sia mine is tellin. After bein taken oer by a zech company the salary, but will not allow further redundancies or cuts to other ben- mine has started operatin /7 the number of people workin in ets. And if the company enerates a prot in 017 the fourteenth administration was reduced by half from 10 to 75 and miners salary could be restored. benets were reduced. Soon after the acuisition the mine became urrently only e out of 11 GG mines are protable or are close protable with money bein re-inested not consumed. When it to reachin protability. Without further reoranization the money comes to large state-owned companies, the picture is complete- from power utilities will be consumed within two years, and the ly different. n heaily indebted Kompania Węlowa 800 people well-performing mines would be forced to cover the losses of the worked in its headquarters, of which 28 were directors. Top man- laggards, instead of making necessary re-investments. The govern- agement earned huge salaries, completely at odds with the desper- ment is plannin to mere the eleen mines into e of which two ate nancial situation of the roup. At the other end of the payroll the most protable and the hihest loss enerator will be stan- the situation was eually dysfunctional with 160 different trade un- dalone entities. According to Maciej Bukowski, head of WiseEuropa, ions ehemently protestin aainst any chanes to miners benets. this move is necessary, but it will only work if the mines are catego- And their salaries are more than decent. Sufce to say that an aer- rized accordin to their prots with a roup of the worst perform- age miner earns 90 percent more than an average Pole, has an 89 ers destined for closure. As of now, the government has made no percent hiher pension retires 11. year earlier and has 15 different declaration regarding shutting down the pits. “Whether the PGG salary bonuses per year. And its all subsidized by the state budet. project will succeed is conditioned by determination of politicians oland could produce coal protably for the net twenty years or and managers’ effectiveness. Of course, far-reaching restructuring so, but the government needs to have the guts and resoluteness to is needed, which would encompass liquidation of some of the per- permanently shut down unprotable mines and reoranize the sec- manently unprotable mines as nothin indicates that the eports of tor. his will be politically difcult as miners unions are the stronest coal will be protable in the foreseeable future Steinhoff admitted. in the country and eery moe aainst their benets is answered There is also the question of the effect of the plan on the energy with massive protests in Warsaw. However, should the money from companies. Some analysts declare openly that they would transfer power utilities be wasted and consumed, in two year’s time PGG the costs of helping the mines onto end-users. According to Kr- would require another cash injection from taxpayers through state- zysztof Kubiszewski from M rion the price of enery could row owned companies. And we would be right back to the same situa- by 11 percent at the Polish Power Exchange, which would translate tion as we are in today. SECTOR ANALYSIS: 26 BANKING

Taxing times ahead New regulations spell challenges for the banking sector in Poland

BY AMALIA LEITNER On February 1, 2016 a new banking tax was introduced into the Polish legal system amidst controversy over its legal grounds and economic consequences. The government touted the tax as a means towards achieving budgetary targets and to facilitate ensurin post-crisis nancial stability contribution. he bill introduced a levy of 0.44 percent annually on assets of selected nancial institutions i.e. domestic banks consumer loan lendin institutions, and insurance companies as well as branches of foreign banks and insurance companies in Poland. With annual streams estimated at PLN 4.4 billion, the bill introduced by the ruling Law and Justice party was said to provide a source of nancin for robust social reforms such as 500 which inoles a payment of 500 for each second and subseuent child in a family as well as for the rst child in low-income families the lowerin of retirement ae to 65 and 60 years of ae for men and women respectively) as well as the increase of the non- taxable income amount. The levy is aimed primarily at foreign banks, in line with the government’s policy of favoring national business. According to the rime Minister eata Szydło as much as 70 percent of the entire bankin sector in oland is comprised of banks with main ofces abroad. “Financial corporations should take a hit, as banking services in Poland are among the most expensive in Europe with the highest banking fees and margins. The EU itself has discussed the need for imposin a ta on nancial transactions she added. latter typically constitutes oer 50 percent of the asset structure The European Financial Transaction Tax has been in the works followed by securities, while cash makes up only a fraction. It is for years. riinally it was supposed to be introduced in 015 worth mentioning that the taxable base may be reduced by the but plans for the European tax have been pushed back more amounts listed in the act, including the value of equity and Polish than once, due to disagreements between EU Member States. Treasury bonds (decisive here is the portfolio of treasury bonds In September 2016, The European Commission once again reaf- held on the respective last day of the month) as well as amounts rmed its oal to complete the ta neotiations by the end of 016. that were paid for the strenthenin of euity capital in fulllment he at ta of 0.01 percent is epected to raise between 16. of regulatory provisions. billion and . billion. t is also forecast to hae an impact on secondary nancial products and curb hih-freuency tradin as Incentives dry up well as leeraed deriaties. As many as 17 Member States hae Accordin to the olish inancial Superision Authority K decided against waiting for the EU’s bureaucratic processes and neither does the tax structure provide incentives to increase have already imposed bank taxes, without any impact studies in the scale of granting loans, nor does it encourage banks to particular. increase deposits. Moreover, coupled with the requirement of The controversy has not only been sparked by the size of the tax proidin a 15 percent downpayment on a mortae outlined rate 0.0 percent in Germany 0.105 percent in the K 0.5 per- in the Ks S ecommendation een if 5 percent can be cent in rance 0.1 percent in unary and 0. percent in o- proided throuh a claim on indiidual pension account KE land), but also by the taxable base. Bank tax rates imposed on savings, bank account or treasury bonds), the tax could sub- unarian banks in 010 at 0.5 percent resulted in the countrys stantially curb the loan activity of Poles. banking sector shrinking by a quarter, which in turn translated into So far more than 15 banks hae increased their bank chares an economic slowdown. mortgage margins and/or interest on SME and consumer loans. As opposed to Germany, where liabilities (e.g. deposits and bor- Meanwhile, interest on deposits dedicated to either households rowings) are subjected to tax, Polish tax is calculated on assets or enterprises has been lowered in at least 11 banks. i.e. cash and equivalents, securities and loans (C&I loans, real es- As biniew aiełło resident of the Manaement oard of tate loans and consumer loans such as credit cards), whereby the K pointed out each bank whose return on assets is SECTOR ANALYSIS: 28 BANKING

Franc borrowers go to court “Banking he ta is but one of the impediments the sector is facin. th- services in er challenges for banks operating in Poland include low interest rates, the possible bailout of Swiss franc borrowers, increased Poland are ank Guarantee und G transfers and contributions to or- among the most rowers Support und. The government’s proposals to lessen the burden of Poland’s $36 expensive in billion of foreign-currency mortgages may be the harbinger of an g era when the debtors hold more sway than creditors. The Polish Europe with government has already presented several proposals of the regu- the highest lation that would allow borrowers to recover some of the money they paid to banks but thus far it has not made a nal decision. banking fees Meanwhile, the court system has become increasingly involved and margins.” in franc-denominated loans passin the rst unfaorable rul- ings for banks. In August 2016, a district court in Warsaw ruled that Millennium ank was to repay one borrower 100000 below 0.5 percent eats up its own capital, so it will have to due to the fact that the loan contract contained “abusive claus- change its asset composition by giving up on loans, as they es. e it by oernment bill or by court decisions banks with do not provide enough revenue. When starting a relationship high exposure to foreign-currency mortgages could be facing with a new client, a bank will have to take the tax into account, increasing trouble. which will hae to be reected in the marin unless the mar- gin is compensated by sources of revenue other than interest. Data-driven executive decisions ezary Stypułkowski E of mank adds that some banks n another front some banks hae been underoin a chane of will nd it difcult to stay aoat which will make them consider their business model driven by digitization and the implementation selling their assets. of bi data solutions. i data could proe to be an effectie tool report said. The increasing sense of insecurity arises from the fact that other nancial serices such as internet payment systems and other subcontractors, are far less prepared to face cybercriminals. So far, there has only been one documented case of hacking bank servers. In 2015, as many as 713 crimes were connected with internet banking (a 22 percent increase year-on-year), 73 of which involved “phishing,” where customers were directed to a false bank website, where they entered their login and password.

The ﬁttest will survive not only to manage customer value through cross-selling, to cre- Given the high competition in the market and the fact that Pol- ate tailor made offers and to identify those who are about to leave ish customers are not very loyal to their bank (some 57 percent the bank for another lender, but also to make decisions about dis- have changed their bank at least once), marketing has been tribution channels as well as branch location and type. That could very high on the list of priorities. According to a PwC partner lead to a reduction of the number of branches and thus, employ- Łukasz ystrzyński the costs of bank marketin in oland ment in the sector. makes up 6 percent of operating costs, whereas the European Another challenge is connected with security, which bank cli- average is at 2-3 percent. ents view as a major threat, according to a PwC report. How- etween the bankin ta the uncertainty oer forein-currency ever, it is not banks that are exposed to the security breaches. loans, and outside threats, the Polish banking market is be- hey are some of the better prepared entities of the nancial comin an increasinly difcult playround. Some banks hae system, as far as fending off potential threats is concerned,” the already left (Saxo bank) and new entries are rather unlikely. SECTOR ANALYSIS: 30 LOGISTICS

In top gear The warehouse market in Poland has broken several records this year. Despite the historically high demand and all-time low vacancies, however, rents don’t seem to be budging and remain among the lowest in Europe

BY BEATA SOCHA

he amount of warehouse space leased oer the rst si struction 51 percent of which was bein built speculatiely months of 016 reached a record-breakin half-yearly leel of i.e. without eistin pre-leases said omasz lszewski head 11000 sm accordin to . onsiderin that the entire of Warehouse and ndustrial epartment at . onsider- modern warehouse stock in oland is a little oer 10 million in the hih deeloper actiity the market may eceed 11 mil- sm the result is uite impressie. nsurprisinly ien the lion sm of supply by the end of 016 he added. Accordin record demand deelopers remain bullish. At the end of 1 to lszewski what is driin up the demand for warehouse 2016 some 742,000 sqm of warehouse space was under con- space is not only steady G rowth. t is the low rents that are attracting companies to Poland. “Poland has one of the money. Poland is seen as a stable and safe bet when it comes lowest warehouse rents in Europe.” Effective rents in most core to the warehouse sector. The economy has remained buoyant locations are between €2 and €3 per sqm per month. The ex- for years and the countrys eoraphical location makes it a tremely low rents present something of a puzzle. Given the perfect destination both for local and pan-European logistics. ever increasing demand, as well as historically low vacancies Logistics operators alone took up 38.3 percent of all ware- – 6.1 percent as of the end of June, with several local markets house space contracted in 1 016 accordin to . ts the having no vacant space whatsoever (including three develop- perception of the market as a stable economy with solid growth in markets Szczecin ydoszcz/oruń and pole shouldnt prospects that makes nanciers eaer to couh up money for there be at least some upward pressure on rent rates? Market more warehouse development. That, and the continually low players and analysts aree that rst and foremost the reason interest rates, both in Poland and across Europe. According for the low rents is the erce competition between deelopers. to s lszewski as lon as deelopers hae the appetite to “With growing demand and low vacancy rates, one might ex- build, rents will likely remain low. “And the appetite to build will pect rents to go up, yet such trends cannot be observed. Due continue as long as there is capital interested in buying real to the hue potential of the market deelopers are condent estate. nly after interest rates o up will there be a possibility of creating more warehouse space, thus the competition is of rent growth,” he explained. rowin rapidly eplained Madalena Szulc Seros director for Central Europe. In fact, most of the major developers are Lining up present in Poland, and several new ones are looking to enter But developing and leasing is only a part of the equation. Pana- the market, according to Jan Barbasiewicz, director, Industrial ttoni, as well as several other warehouse developers, operates and oistics Aency olliers nternational. er the rst si under the build-lease-sell model. hey probably wouldnt be months of the year Panattoni was the clear leader in churning so eaer to add more space if they didnt hae a sure-re eit out new warehouse and industrial space. The developer had option. he nal inredient to the boom the market is eperi- nearly 335,000 sqm in the pipeline in H1 of the year, of which encing is the “very high demand levels by institutional investors 170,000 sqm was pre-leased. seeking to acquire quality income producing assets in the industrial sector in Poland, which in turn is driving yield compres- Checking all boxes sion,” said Tom Listowski, partner, head of Industrial and Lo- The continually low construction costs are also fueling the sup- gistics Agency Poland and CEE Corporate Relations, Cushman ply side of the market, “as well as – contrary to a popular belief – Wakeeld. While these factors are alined rents will remain administrative procedures, which are quicker and simpler than stable at the current low levels. However, we are seeing rents in other countries said arbasiewicz. A sufcient land bank going up in some locations with limited space and land avail- is also necessary to meet the growing demand. Fortunately, ability he added. arbasiewicz concurred nce a property developers have been stockpiling development plots over the is leased, there is a line of investors, real estate and pension past few years in anticipation of the regulatory changes that funds ready to purchase it.” Currently, yields for prime ware- were enforced this year, which make land trading substantially house assets stand at 6.75 percent, with further compression more difcult. oth arable land and plots at least partially co- forecast, according to JLL. The best, long leased properties ered by forests now have to go through long and tedious pro- are even trading well below 6 percent. The investment volume cedures before they can be sold, with government agencies in the warehouse segment may not have been very high over hain the nal say on whether the sale takes place as well as the past months, with only €261 million worth of warehouse the preemptive rights to purchase the land. Luckily, developers properties changing hands within seven deals (including three hae been wise enouh to secure sufcient land to last them for portfolio transactions but that is mainly due to the limited aail- years. hats why they can offer their clients more options and ability of product for sale. he larest transactions oer the rst at better prices in comparison to CEE and Western European six months of the year were: NBGI Portfolio purchased by Hines markets. n the lon run once deelopers land plots hae REIT, Annopol Business Park sold by ECI to Hines REIT and been developed, the limited availability will cause rents to in- Gs acuisition of the Amazon ulllment enter in a sale crease, particularly in areas that are easily accessible for poten- and leaseback deal in oznań. All in all it seems that as lon tial employees. This aspect has long been key in choosing the as the economic fundamentals remain strong and low interest location,” explained Barbasiewicz. In the short and mid-term rates keep driving capital to the real estate market, the self- perspective, however, developers have all they could wish for: perpetuating cycle of high demand, high supply and low rents clients to build for, cheap materials, plenty of land and … cheap will continue. SECTOR ANALYSIS: 32 IT

What’s blocking the cloud? While Polish ﬁrms produce some of the best cloud-based apps, the country’s own SMEs are reluctant to adopt cloud solutions. Customization costs, legacy software, and regulations are some of the factors that are preventing cloud solutions from spreading in Poland

BY BEATA SOCHA oland took rst spot in the SaaS Summer Games 016 in the Most opular Apps cateory. he contest oranized by software ealuation rm GetApp looks at applications workin in the cloud in seen indiidual cateories as well as at countries where the endors of the applications oriinate. Apart from the team old medal there was another prizewinner amon olish contenders. SalesManao Marketin Automation placed second in the Marketin Automation cateory after S- built Autopilot. he olish-built software has been praised for its rane of capabilities which etends beyond marketin automation to include M email marketin and more said the contest oranizers. While oles seem so capable of makin hih-uality cloud applications one would think they are eually eaer to use the cloud in their own businesses. he truth is howeer that olish rms olish small and medium-sized enterprises are burdened with are still ery reluctant to adopt cloud technoloies. n fact most leacy systems. n that area we are lain behind the rest of of the cloud-based software made by olish start-ups is eport- Europe as well as the EE reion said onald inkofski E ed. A recent poll of 00 olish start-ups shows that 9 percent of Microsoft olska durin a loud p oland debate oranized are dedicated to creatin SaaS software which is a hue portion by Goole olska and omputerworld. Switchin from on-prem- of the start-up scene many of them eportin their products to ises infrastructure to cloud solutions is simply too costly. hats the K and the S said Suzie laszkiewicz a researcher for the why cloud-based solutions are employed mainly by rms build- software ealuation rm GetApp. in their systems from scratch. t is youn entrepreneurs and he cloud market in oland is worth 611 million accordin start-ups that are the most eaer to adopt cloud solutions. hey to this years edition of omputerworld 00 report. hat is decide to use it from the et-o particularly the aaS model less than 1 percent of the entire market which is alued at said iotr ietrzak at M olska. 105. billion and less than 5 percent of the serice proiders he leacy problem is compounded by the fact that addin an- market in oland worth 1.8 billion. Accordin to research other player into the infrastructure the cloud operator cre- rm the clouds share in the serices market is around ates bottlenecks between the on-premises and cloud compo- percent. nents. Most lare companies operate on the assumption that o wonder the market is so small if only percent of lare cor- all of their resources are kept in one data center. hat means porations in oland use some form of cloud accordin to the fast connections data processin done at niht and terabytes latest report by research rm SS conducted for ntel. As far of data moin throuh the company network. t works because as the public cloud is concerned only 19 percent of lare olish we are located in a sinle data center. ut when we pull one enterprises use it. Still oer a half of them use some form of part of the infrastructure and place it outside we no loner priate cloud which means their own infrastructure which they moe throuh a 100 G optic ber. We hae to make do with make aailable to their employees ia secure connections such far smaller bandwidths said Krzysztof ąbrowski / at as said Krzysztof onak director at ntel for EE. t ap- mank. e concluded that cloud solution proiders are enerally pears that manaers do see the need for the cloud and makin not ready to handle systems comprised of many interconnected resources aailable to their employees but they would rather not components. release their data to a third party. he leel of acceptance for public cloud solutions is uite small. We still mostly use priate Scalability and standardization cloud solutions which means we want to hae full control oer Analysts aree that cloud solutions work best for standard purpos- our data. We are still learnin to use the public cloud onak es. nce a client reuires a lot of customization the cost incenties concluded. of a cloud solution decrease. More comple companies usually need more tailor-made solutions which enerates additional costs. Legacy systems and bottlenecks nce aain cloud solutions seem to be more suitable for start-ups Why is the cloud not happenin in oland ne of the key rea- which often use the most basic and standard solutions that cloud sons is the cost of switchin technoloies. o my knowlede computin proiders offer. hey are much cheaper than deelopin SECTOR ANALYSIS: 34 IT

Polish SMEs are burdened with legacy IT systems. In that area we are lagging And yet oland is not so bad when it comes to leal reulations for cloud solutions. oland was ranked 10th in the latest behind the rest SA Global loud omputin Scorecard 016 which ranks of Europe, as countries that account for 80 percent of the lobal market on the basis of how supportie their reulations are of cloud solu- well as the CEE tions. ompared to the preious edition of the rankin carried region out in 01 oland moed up two spots thanks to its impressie ains in both its leal and reulatory framework and information technoloy infrastructure the rankin analysts said. gthe rms own solutions. Similarly cloud computin can be ery ef- hey praised olands up-to-date laws for priacy electronic cient for businesses that are either rowin ery uickly or whose sinatures electronic commerce and cybercrime as well as its use of resources chanes from one period to the net. pward comprehensie reime for the protection of intellectual property and downward scalability is an adantae admitted ąbrowski. includin specic rules for internet serice proider S liability. oweer if a company uses a similar amount of resources oer Where it fell short howeer were some aps in enforcin its laws time it is often cheaper to maintain its own on-premises infrastruc- and reulations. ture. After all cloud proiders also hae prot marins and the Some also point to mental barriers that make oles distrustful reater the infrastructure the bier the marin ets. roiders of storin their data in the cloud. he fact that there hae been dont offer enouh incenties for us he concluded. some hihly publicized security breaches oer the past few years doesnt help matters either. eulations and trust issues are the Regulations – good or bad? two main obstacles to cloud use in oland accordin to ntels hen there is the whole security problem. inance bankin and onak. nce leislation becomes clearer and once the trust leel telecoms industries that are at the top of the list of tech innoa- in cloud solutions increases cloud-based solutions will take off tors and should be leadin the way into the cloud are at the in oland and other EE countries he said. Also oles like to same time some of the most heaily reulated industries in o- own thins that are essential to their well-bein for instance land. efore you et consent to o into the cloud no one will unlike in many Western European economies the maority of want to take the risk that in two years time his auditors will tell oles prefer to own their home rather than rent. he same could him he made the wron decision and now he has to switch back be true for resources keepin your own infrastructure ies to his old systems said ąbrowski and added that in these you the feelin of bein in control. f thats the case then the cloud industries if you dont et a reen liht you hae to assume should eentually win people oer with its simplicity scalability its red. and possible reater cost-effectieness. Big deals, bigger volumes

In early September, developer HB Reavis made headlines with With €2 billion worth the sale of its three Warsaw ofce proects for a total of approi- of deals in H1, the mately 00 million accordin to market sources. Konstruktor- ska usiness enter featurin 9500 sm of space that is fully biggest transaction in leased was acuired by Golden Star Estate. t was the rst com- the market’s history, pleted proect in the olish market that eais has sold. nly a week later the deeloper announced the sale of two more of- and new sources ce schemes comprisin 8000 sm within the Gdański usiness enter in Warsaw for 186 million. hey were purchased of capital coming into by Saills nestment Manaement on behalf of a lobal pension the country, 2016 is fund. Accordin to Eurobuild EE the inestor is Malaysian en- sion und E a new player on the market. looking to be a very he Sloakian deelopers deals hae contributed to what is e- good year for Polish pected to be a ery robust year on olands real estate inestment market. etween anuary and une olands inestment real estate. Even Brexit olume totaled a little oer billion .5 times more than in the cannot spoil correspondin period of last year accordin to E. Analysts epect the alue for the entire year to eceed or at least be on the pretty picture a par with last years .1 billion. etail transactions accounted for nearly half of the total olume with 1.0 billion in retail as- BY BEATA SOCHA sets chanin hands between anuary and une accordin to SECTOR ANALYSIS: 36 REAL ESTATE

“While analyzing the impact of Brexit on Central and Eastern European markets, I do not foresee that we will observe any special turbulence anytime soon.”

Echo’s big plans The Kielce-based developer has more transactions brewing. Its subsidiary, Echo Polska Properties, which it co-owns with Re- dene is plannin on buyin eiht assets by the end of the year from its parent company includin three staes of the usiness ampus in Kraków two phases of the Symetris ofce comple in Łód the third stae of A usiness ark in Katowice and the ryton usiness ark in Gdańsk. he alue of these assets at . fce deals amounted to 786 million and the warehouse the end of 016 stood at nearly 150 million. nce completed sement saw 61 million worth of assets sold. he full rane and leased E has estimated the portfolio to be worth 5 of inestors from core to opportunistic is actie in the ol- million. E is also oin to buy a 70 percent stake in Grifns ish market said Aata Sekuła head of EE etail nestment g maor mied-use proect in Warsaws Wola district planned to at . She also noted that deals ranin from small indiidual be completed by 00. assets to comple platform transactions were concluded in 1. Uncertain times Big expectations ndoubtedly the biest news for the European inestment market Een if 016 falls short of the billion mark it will still be the this year was reit. nestors across the lobe includin in oland year of the biest real estate transaction in olands history waited with bated breath in the aftermath of the ote. mmediately with South African fund edene roperties acuisition of a after reit was announced olish inestment fund E ywi- 75 percent stake in Echo nestments commercial platform for denda lus suspended its plans of enterin the Warsaw Stock E- nearly 900 million includin retail schemes 77 percent of the change, citing the “uncertain situation.” The company resumed its portfolio and ofce proects. n fact Echo nestment has been preparations in September but hain failed to raise the the biest headliner in the olish inestment market for the past 10 million it needed to purchase the tareted assets Alchemia in two years. ast year uembour-based Grifn eal Estate and Gdańsk and Malta ouse in oznań it cancelled the offerin citin S inestment fund imco acuired a 1.55 percent stake in the lack of necessary leislation for Es in oland. nfortunate- Echo Investment. ly the uncertainty on the stock market as well as the lack of leal framework preailed adosław Świątkowski president of E positie. While analyzin the impact of reit on entral and ywidenda lus eplained. e added howeer that the company Eastern European markets do not foresee that we will obsere is plannin to return with its offer as soon as the necessary reula- any special turbulence anytime soon. he K referendum ote tions are introduced to the olish leal system. may lead to increased demand for prime assets elsewhere in Europe. t may een benet the commercial real estate market in After Brexit oland he added. Accordin to rnka neither the K ote nor When asked about reit now olish real estate market play- the lowerin of Standardoors and Moodys ratins for oland ers and analysts seem to be enerally unfazed by probably the this year will hae any maor lon-term effects. Without a doubt most important news in Europes recent history. At the moment the EE reion specically Warsaw remains one of the safest and there is only speculation and it is in the future when we will be conseuently most faored inestment locations. What is more able to say what if any impact reit has had on the olish we are seein increased interest from new market players includ- economy. We do hope howeer that other than some short-term in South African and Asian fund manaers. he deelopers re- slow-down resultin from inestors bein cautious lon term ac- cent sale of three of its proects in Warsaw seem to be in line with tiity will not be lowered because of reit said omasz rzósło that iew. manain director of consultancy oland. Een the K real estate market itself could benet from the coun- aturally it is the deelopers who are the most eposed if in- trys eit from the E. Accordin to some eperts reit and estors take their cash and o elsewhere. he commercial real the associated depreciation of the pound may translate into in- estate industry is considered one of the most ulnerable to the creased interest in ritish real estate. eais recently sold its neatie effects of reit and the related depreciation of the rst ondon proect entral to Wells aro. Wells aros pound as well as the economic and political uncertainty admit- decision to purchase rather than lease entral as it had been ted Stanisla rnka E of deeloper eais oland. ow- preiously planned demonstrates that sinicant companies are eer he added that the effects of reit miht not be neatie still willin to inest in the K market and reit does not affect it for EE markets as had been the initial sentiment but in fact rnka eplained. SECTOR ANALYSIS: 38 BPO

Millennials – hope for BPO

The business services sector in Poland employs some 212,000 As the shortage of people, according to the Association of Business Service Leaders. skilled employees Estimates say the BPO workforce will increase by 20,000 a year, which means that by 2020 employment in the BPO industry will becomes more acute, most likely exceed 300,000. “You need to emphasize that 1,000 jobs in BPO generate another 260 workplaces in industries sup- employers look for portin business serices stressed aweł anczy manain solutions to attract the director at ABSL Polska at the European Economic Congress in Katowice in May. The rapidly expanding BPO sector is creating sub- younger generation, or stantial demand for ofce space. Accordin to the business even replace it services sector in Poland currently occupies approximately 2 million sm of modern ofce space and the number continues to row. “According to our estimates, the business services sector in Poland miht reuire some 50000 sm of new modern ofce space each year. This stems from the industry’s development and the increase in employment that follows,” sad Mateusz Polkowski, associate di- BY BEATA SOCHA rector esearch and onsultin . partner at Enterprise Investors. “It will affect the entire market in the future,” he added. And it is not only technical skills that are in short supply. “Foreign languages are becoming a challenge as well, surprisingly, even English,” said Panczyj. Attracting young talent has become one of the biggest challenges in Po- land, and employers are aware that the new generation they are trying to lure has different expectations from the previous ones. Pay rises and promotions are not as effective incentives for Gen Y employees as they used to be with older generations. “Com- panies are looking more favorably at work-life balance issues and are trying to adjust their work culture to the expectations of the youngest generation [in their workforce]. International tech rms are in the lead in this area said Michał Młynarczyk managing director Hays Poland. “The employee’s market is fueling changes in the market as employees are paying increasing attention to work time and to its organization,” he added.

All over the place The shortages in the labor market have started to shift companies’ focus from the powerhouses that are Wrocław and Kraków (where unemployment stood at 3.5 percent and 4.5 percent re- spectiely in March 016 accordin to statistics ofce GS to less obious locations. Some of the risin stars on the radar are Skill search Kielce zeszów iałystok ublin ielona Góra and ydoszcz. The main reason why multinational corporations move their busi- he demand for modern ofce space from companies is ness processes to Poland is the shortage of skilled employees in one of the main reasons for the ofce market rowth in reional their countries of origin. “It’s people, people and once again people. cities. y 00 companies from the sector will need approi- That’s what foreign investors like. Not because they are cheap. It’s mately 1 million sm of ofce space in oland particularly in their skills and efciency said Marek Grodziński from apemini regional cities. That’s what makes them so attractive for devel- olska. oweer the shortae of ualied workers is loomin oer opers,” said Alexander Jurkowitsch, member of the manage- the industry een in oland. an we maintain a 15-0 percent an- ment board at Warimpe. n Łód where we are oin to build nual revenue and employment growth in the sector? Certainly, but the rodowa fce acancies hae been some of the lowest the employee market is becoming more of a challenge,” admitted among regional cities,” he added. A recent BPO investment that wona honowska-aponik from forein inestment aency Ai. made headlines was eloitte leasin 500 sm of ofce space For years now, one of the areas with the biggest disparity between for its business serice center in the Skyres proect in zeszów. supply and demand has been the IT sector. It doesn’t help that in- We are talkin about as many as 50 potential locations. ne of ternational software giants, like Amazon, have been aggressively the latest new proects was located in Sandomierz said pursuing Polish IT specialists offering them positions in their Euro- Panczyj. Each of these locations has a lot to offer potential in- pean ofces further contributin to the labor shortae at home. vestors, although some are still largely underdeveloped. “We are increasingly involved in projects in non-obvious locations,” con- Primary concern curred Krzysztof Misiak partner at ushman Wakeeld. he The growing talent shortage is already felt by companies in business serices sector has become the maor ofce tenant in the business, but the biggest hit has yet to come. “We have cities outside of Warsaw. n 015 business serices companies fewer and fewer students in Poland. Only a few years ago, there leased 80000 sm of ofce space outside Warsaw which ac- were million students in oland now there are 1.8 million counted for 55 percent of the entire ofce demand accordin to said anczy. he most sinicant shortaes are aain seen . n 1 016 the share of business serices centers in oerall in computer sciences. “The market is growing rapidly, making occupied ofce space totaled around 67 percent in Kraków 5 competition for employees eer ercer. Meanwhile the number percent in Łód 51 percent in Wrocław 7 percent in zeszów of computer studies raduates isnt rowin said afał ator and 5 percent in Katowice accordin to . n comparison SECTOR ANALYSIS: 40 BPO

business services centers account for only 9 percent of occupied desinin ofces called workplace solutions. A reater number ofce space in Warsaw. Warsaw althouh behind reional cities of meetin rooms space for proect work creatie work workin in attractin s is still the o-to location for adanced process in silence or space for interation these solutions are becom- outsourcin like . nestors locate their centers where they in increasinly popular in ofces. hey can trier the rowth of can nd ood employees. hese could be talented students as space leased by business serices centers for which coneniently well as people with many years of eperience. he latter roup is desined attractiely arraned and comfortable ofces hae be- attractin companies inestin in adanced serices. or them come of crucial importance durin recruitment processes and the no. 1 location is currently Warsaw said acek eernes help them retain the best specialists. he ofce has become a president of AS. ital tool for manaement eplained Karol atynowski associate director enant epresentation . Oce transformation With the rowin competition for the best specialists the work- Why need people at all? place has become a ery important factor in the recruitment pro- Een the best possible workin conditions may not be enouh cesses. Accordin to oint research by and Skanska con- ien the rowin labor shortaes. Some employers are consid- ducted amon employees from the business serices sector up erin implementin more automation into their business models. to 65 percent of the specialists uestioned say that a modern We constantly arrie at a dilemma of where to nd people to spacious ofce that encouraes productie work can tip the complete the orders we et. nstead of oin in circles why not scales in faor of one prospectie employer oer another. he think of usin robots instead said Grodziński and added that specic nature of our business clearly determines the epecta- apemini is already workin on automatin processes. tions we hae in relation to ofce space. n a lare part we hire We hae plans to create a irtual serice center with special ro- members of Generation people who see their workplace as bots and software automation systems he said. ut een with more than ust an ofce. We epect deelopers to understand our rowin automation the business serices industry will need industry and meet their needs said eernes. eelopers are more employees and will o a lon way to win oer the best tal- eaer to accommodate the chanin needs of the industry which ent. fferin cool ofces and adustin work culture may be ust has resulted in the rowin popularity of the new approach in the beinnin of a larer transformation. China-Poland: New steps in international relations WBJ Observer spoke with Ambassador Xu Jian about new steps taken in developing relations between China and Poland, plus the international implications of the Chinese initiative to create the Belt Road stretching across the Eurasian continent and Europe aimed at coordinating and galvanizing the economic growth of the countries along the route

INTERVIEW BY EWA BONIECKA

WBJ Observer: The recent visit of Chinese president During that visit, agreements on the development Xi Jinping to Poland confirms that our countries treat of Chinese-Polish cooperation in various fields were each other as long-lasting and stable strategic part- signed. Among those agreements many were in rela- ners, how do you assess the value of the agreement tion to the financial sector. Which one do you consider to upgrade Chinese-Polish ties and its impact on the the most innovative and meaningful for further devel- whole CEE region? opment in the cooperation between Chinese investors Xu Jian: he hinese resident i inpin paid a successful and Polish business? state isit to oland in une. is isit raised our bilateral rela- During President Xi’s visit, China and Poland signed 34 agree- tions to a comprehensie strateic partnership which has si- ments worth a total of €6 billion, including several in relation to nicant meanin for the future. ommunication and cooperation nancial and inestment cooperation. Amon them there are between China and Poland will go further, bringing tangible ben- agreements on infrastructure investment, Chinese investment in ets to our nations. oland the cooperation of banks and bond issuance etc. oland is the larest economy in entral and Eastern Europe hese areements are uite inclusie and are potentially ood EE. beliee an upraded and comprehensie relationship be- tools to facilitate infrastructure and inestment cooperation. We tween China and Poland could be a model for relations between hope both sides can conscientiously carry out these areements hina and other EE ountries. and use them as a bride to reach more inestment proects. 42 INTERVIEW:

“The Belt and Road is an important move to enhance friendship between countries and promote mutual The Chinese economy is now the second largest in learning between the world and has enormous export potential, yet there are some discrepancies in dealing with the trade issue dierent civilizations.” between China and some members of the EU. This is mainly due to the imbalance between the amount of exports and imports, and there is also an imbalance between Chinese exports into Poland and our imports into your country, what can be done to deal with this issue? Poland has been China’s largest trade partner in CEE for 11 years in a row. For China, we hope to expand bilateral trade on the principles of euality and mutual benet. We would like to see more balanced The Belt and Road Initiative, which has been put forth by China, trade through dynamic growth and enlarged two-way investments. focuses on e maor oals includin policy coordination facilities We are open to importin more oods includin those from oland. connectiity unimpeded trade nancial interation and people-to- Now we import $2 trillion worth of goods each year and this amount people bonds.g is rowin. he hinese market welcomes uality fruit dairy and From an economic perspective, the Belt and Road Initiative is other aricultural products from oland. We also welcome olish aimed at the coordinated development of different regions. Stretch- companies to promote their competitive products in China. ing along the Eurasian Continent, the Belt and Road creates tighter links between prosperin East Asian economies and the hihly Do you view the agreement relating to the coopera- developed European economies at either end. This will galvanize tion between the Warsaw Stock Exchange and Chinese the growth of the vast interior of the Eurasian continent. It can also Haitong Bank and Poland’s access to the Asian Bank encourage the countries along the route to cooperate in creating of Infrastructure Investment as an important move growth opportunities and share the fruits of development. for our two countries, but also one that has an inter- From a cultural perspective, the Belt and Road is an important national impact and links to the functioning of the move to enhance friendship between countries and promote mu- global economy? tual learning between different civilizations. It will promote friendly he Asian nfrastructure nestment ank A is a multilateral de- interaction between countries along the route, and expand practi- elopment bank initiated by hina with the purpose of improin cal cooperation in culture, education, arts, science and technology, the economic development of Asia. Poland is the only co-founder tourism, health and sport. from the CEE region. So far, more than 70 countries and international organizations along Both the Chinese and Polish economies have been growing very the route, including Poland and other CEE countries, have shown fast for the past few decades. In 2015, China was still one of the interest in it. It is not a solo performance. It is an initiative of win-win largest and fastest-growing economies with a 6.9 percent growth cooperation and common deelopment. hina looks forward to rate, and it contributed 25 percent to global growth. Poland is workin toether with oland and other partners for a shared ision. the only country in the European Union that has maintained constant and stable rowth. We should hae condence that nancial One of my law students at Warsaw University is cooperation between China and Poland will not only be conducive taking part in a program of educational exchange to our economic development, but also have positive effects on the between the University of Warsaw, the Jagiellonian sluggish global economy. University in Kraków and Beijing University. It illus- trates to me the amount of human links developing There is huge interest from Poland concerning the between China and Poland. Links which aect stu- vision of creating the Silk Belt Road beginning in cen- dents, professionals from the energy and agriculture tral China and running through Northern Iran, Iraq, sectors, and some other groups of our society, not Syria, Turkey, Bulgaria, Romania, Czechia, Poland, only businesspeople dealing with Chinese compa- Germany, and into Italy. When would such a vision be nies. What ﬁeld of cooperation would, in your view, possible to realize, taking into account the enormous have the most lasting meaning in terms of develop- economic, and also political demands, involving so ing strategic relations between China and Poland? many countries? How does China intend to undertake here is a hinese sayin that oes he key to sound relations be- such a gigantic project? tween states lies in the afnity between their people. hat means With rich tourism resources, both China and Poland are major tourist destinations. In 2015, over 60,000 Chinese people visited Poland, which was an increase of 25.6 percent in comparison to the previous year. It is the fastest growth rate among all foreign visitors to Poland. In the same year, the number of Polish tourists visiting China reached over 75,000. The Polish national tourist agency has set up its branch ofce in eiin. his boomin tourist cooperation is eidence of the growing mutual interest from both sides. Taking this into consideration, airlines from both countries aim to en- lare their serices in this area. Air hina opened direct ihts between eiin and Warsaw in September. is also considerin increasin its reular direct ihts in the near future. hese direct ihts will provide a further boost to the tourist industry. I hope more and more Chinese and Polish people will take advantage of this conveni- ence to visit each other.

China recently signed strategic partnerships with the European Union and with several individual mem- people-to-people exchanges play a fundamental and leading role bers of the EU, but now economic growth in some in bilateral relations. member states is slowing and the EU is facing various I am happy to see that, besides the fast-growing trade and economy political and economic crises which are aecting its cooperation, the educational and cultural exchanges between China performance. However, Poland, as a member of the and Poland have also expanded greatly in recent years. As Presi- European Union, has steady economic growth and is dent Xi described, our people-to-people exchange has grown more eager to cooperate further with China. So do you think diverse in form and richer in content, injecting fresh vigor into our tra- that the strategic partnership between China and Po- ditional friendship. land can be seen as an eective vehicle for strength- o date oland has e onfucius nstitutes while olish-lanuae ening cooperation between China and the whole of teaching will soon be available in nine universities in China. At the Europe? end of 2015, both nations had over 1,000 students studying in each The China-Poland relationship and China-EU relations are not par- other’s countries. “Happy Chinese New Year in Poland” has been allels, but they are closely integrated with each other. held for six years, while such events as Polish culture season and n one hand oland as the sith larest economy in the E and Polish cultural festival are gaining popularity in China. More than 30 the China-Poland relationship is an important building block of Chi- cultural groups run exchange visits annually. The China-Poland Re- nese-EU relations. Sound and stable China-EU relations provide a gional Forum has been held successfully for four sessions, providing good framework for the development of China’s relationship with a platform for sub-national interactions. Also, we now have 27 pairs Poland. of sister cities. n the other hand bein a front-runner in hina-E relations the During President Xi Jinping’s state visit to Poland this June, the two comprehensive strategic partnership between China and Poland is countries signed a series of documents in educational and cultural an important enine for hinas relations with the E. ocated in cooperation, as well as other areas, which serve as a new boost to the heart of Europe, Poland is an important member of the EU and people-to-people exchanges between China and Poland. Without CEE countries. Now, both China and Poland are at a crucial stage of doubt, this cooperation will have a long-lasting impact on our bilateral development, working for restructuring, innovation and international relationship in the years to come. outreach. The two sides have a lot in common. Therefore, bilateral cooperation is epandin in all areas benetin the two nations Do you think that now there are regular direct greatly and could be a good example of win-win cooperation to ﬂights between Warsaw and Beijing, the interest and other countries in CEE and the EU. perspectives for enlarging tourist movement between Now, China and the EU are striving for the China-EU partnership for our countries will grow? peace, growth, reform and civilization. China attaches great impor- Seeing is believing. Tourism is the most natural and effective way to tance to Poland and we hope the country can play an active role in promote exchanges and friendship between different peoples. pushing China-EU relations forward. VOIVODSHIPS AND CITIES: 44 INTRODUCTION Voivodships

Investing in Poland’s eastern regions affords investors direct access to foreign markets located to the country’s east such as A voivodship is the highest-level administrative subdivision in Po- Ukraine and Russia, while investing in the western regions offers land. Reforms enacted in 1999, carved out 16 new voivodships, access to both the Czech Republic and Germany, Poland’s larg- which replaced the much smaller 49 that had been in place since est trading partner and Europe’s strongest economy. 1975. Administrative authority at voivodship level is shared between a The current units range in area from under 10,000 square kilom- centrally-appointed governor, called a voivode; an elected regional eters (Opolskie voivodship) to over 35,000 square kilometers (Ma- voivodship council, called “sejmik;” and an executive chosen by zowieckie voivodship) and in population from one million (Opolskie that assembly. The leader of the sejmik is the voivodship marshall. oiodship to oer e million Mazowieckie oiodship. Voivodships are further divided into powiats (counties) and gminas (municipalities). Poland’s voivodships vary when it comes to their level of development, wages and economic potential. The western side of Po- This section provides an overview of the nation’s voivodships and land is better-developed and wealthier and is often referred to as most important cities. Presented within are facts, statistics and “Poland A,” while the poorer eastern regions are referred to as descriptions that will help you learn more about regional strengths “Poland B.” and weaknesses.

Both sides have their advantages: the western regions have a more deeloped infrastructure and more afuent citizens while the eastern regions offer low-cost labor and often more generous investment incentives than the western voivodships. INVESTING IN POLAND 2017 46 INVESTMENT GUIDE Kujawsko-Pomorskie VOIVODSHIP

ADMINISTRATION

Grudziądz Voivode: Mikołaj Bogdanowicz

Wisła A1 Bydgoszcz

BZG Toruń Marshall: Piotr Całbecki KEY CONTACTS

Inowrocław The Kujawsko-Pomorskie Investor Assistance-Centre coi.kujawsko-pomorskie.pl Włocławek Plac Teatralny 2 87-100 Toruń [email protected]

HIGHER EDUCATION LABOR MARKET BUSINESS

NUMBER OF INSTITUTIONS POPULATION (Dec. 2015) SPECIAL ECONOMIC ZONES 21 2,086,210 Pomeranian Special Economic Zone RECENT MAJOR INVESTORS MAJOR UNIVERSITIES WORKINGAGE POPULATION Atos Kazimierz Wielki University (Dec. 2015) Itella Information Nicolaus Copernicus University Livingstone University of Technology and Life Science 1,309,091 MMP Neupack Schoenberger Group NUMBER OF STUDENTS (2015) UNEMPLOYMENT RATE 61,801 (Dec. 2015) 13.2% NUMBER OF GRADUATES (2015): AVERAGE MONTHLY WAGE 17,505 (Dec. 2015) PLN 3,540 INVESTING IN POLAND 2017 INVESTMENT GUIDE 47 CAPITAL Bydgoszcz

LONDON 1,243 KM PARIS 1,192 KM BERLIN MOSCOW 316 KM 1,298 KM

PRAGUE ROME 419 KM 1,318 KM

MAYOR RAFAŁ BRUSKI POPULATION DEC. 2015 355,645 Poland’s high-water city

ince the ﬁrst settlement the eighth largest city in Poland by was built during the Bronze population. The city is a major ad- WORKING AGE POPULATION Age, the city has utilized its ministrative center with the voivode’s DEC. 2015 position on the intersection ofﬁce located there. It is also one of of several major waterways the fastest developing centers of busi- 217,487 toS become a major trade hub. While ness, science, culture and sport in the the two rivers and the Bydgoszcz country. UNEMPLOYMENT RATE Canal still play an integral role in the The city has received several distinc- DEC. 2015 economy, the modern city also has one tions and awards such as the Gmina of the largest and newest industrial Fair Play award, a title granted by the 5.4% and technological parks in the country. Institute for Private Enterprise and IT, electrics, telecommunications, Democracy. It has also been acknowl- AVERAGE PAY chemicals, and plastics are all grow- edged as a city with a lot of potential DEC. 2015 ing sectors. for shared services centers, including With a population of over 350,000, the title of “Rising Star” for the invest- PLN 3,850 Bydgoszcz is the biggest city in the ment environment it provides for BPO Kujawsko-Pomorskie voivodship and companies.

MODERN OFFICE SPACE 52,600 SQM

OFFICE VACANCY RATE KEY CONTACTS: 10.1% Bydgoszcz Regional PRIME HEADLINE Development Agency RENTS barr.pl €11.50€13.00 ul. Mennica 6 85-112 Bydgoszcz Tel.: +48 52 585-8823 [email protected]

SOURCE: COLLIERS INVESTING IN POLAND 2017 48 INVESTMENT GUIDE CAPITAL Toruń

LONDON 1,283 KM PARIS 1,226 KM BERLIN MOSCOW 354 KM 1,265 KM

PRAGUE ROME 435 KM 1,321 KM

MAYOR MICHAŁ ZALESKI Poland’s historical POPULATION DEC. 2015 heritage 202,591 oruń, a historic city located ment and good connection to Warsaw, in north-central Poland, is Gdańsk, Poznań, Szczecin and other one of the few cities that major cities in Poland make Toruń an escaped being leveled dur- ideal spot for investment. Apart from ing World War II. Its Gothic attracting a number of BPO/SCC busi- architectureT attracts over 1.5 million nesses, the city also promotes eco- tourists each year, which has led to friendly solutions and technologies. the city developing a sizable hotel base Nowadays, Toruń is also a modern WORKING AGE POPULATION and commercial services. business and administrative center, DEC. 2015 Its unique combination of Polish and serving as the seat of the voivodship’s German history has secured the city a marshall. 126,388 place on UNESCO’s list of World Cul- tural and Natural Heritage sites. UNEMPLOYMENT RATE Toruń has recently seen signiﬁcant DEC. 2015 investments in infrastructure, receiv- ing upgrades to its roads, as well as 6.0% its sports and cultural facilities. Its central location, fast pace of develop- AVERAGE PAY DEC. 2015 PLN 3,990 KEY CONTACTS: MODERN OFFICE SPACE Business Support Centre 43,100 SQM torun.direct ul. Kopernika 4 OFFICE VACANCY 87-100 Toruń Tel.: +48 56 621-5620 RATE [email protected] 18.4%

PRIME HEADLINE RENTS OTHER MAJOR CITIES €11.50€13.00 CITY POPULATION WORKING AGE POPULATION UNEMPLOYMENT Włocławek 112,635 69,664 16.9% Grudziądz 96,111 59,278 14.2% Inowrocław 74,087 46,953 17.5%*

*LOCAL COUNTY DATA SOURCE: COLLIERS At Avis we belive in delivering exceptional service as standard. You can rely on us.

Avis offet includes: • Short - term rentaql, • Mid-term Avis Flex rental (1-12 months) and Maxi- Rent 12+ rental (12-24 months), • Long term Full Servioce Lease (24-48 months), • Chauffer drive, • Van rentals.

Central Booking Office: Sales departament: Tel. +48 22 572 65 65 Tel. +48 22 572 65 04 Tel. 0 801 120 010 e-mail: [email protected] e-mail: [email protected] www.avislease.pl www.avis.pl

reklama_INVESTING IN POLAND_10_2016_v1.indd 1 13.10.2016 12:55:19 INVESTING IN POLAND 2017 50 INVESTMENT GUIDE Lower Silesia VOIVODSHIP

ADMINISTRATION

Odra

Voivode: Paweł Hreniak Lubin A18

A4 Legnica S8 Wrocław WRO Jelenia Góra A4 Marshall: Cezary Przybylski Wałbrzych KEY CONTACTS Lower Silesia Agency for Economics Cooperation Regional Investor Assistance Center dawg.pl ul. Kotlarska 42 50-151 Wrocław Tel. +48 71 344-0286 Fax +48 71 344-0285 [email protected]

HIGHER EDUCATION LABOR MARKET BUSINESS

NUMBER OF INSTITUTIONS POPULATION (Dec. 2015) SPECIAL ECONOMIC ZONES Kamienna Góra Special Economic 37 2,904,207 Zone for Medium Business Legnica Special Economic Zone MAJOR UNIVERSITIES WORKINGAGE POPULATION Wałbrzych Special Economic Zone Wrocław Medical Academy (Dec. 2015) ”INVEST-PARK” Wrocław University Tarnobrzeg Special Economic Zone Wrocław University of Economics 1,823,505 ”EURO-PARK WISŁOSAN” Wrocław University of Technology UNEMPLOYMENT RATE RECENT MAJOR INVESTORS NUMBER OF STUDENTS (2015) (Dec. 2015) Acturis, Amazon, BASF, BSH Bosch und Siemens, Catlin, Com- 129,769 8.9% pal Electronics, Eagle, Franklin Products,Parker Hanniﬁn, Sitech, NUMBER OF GRADUATES (2015) AVERAGE MONTHLY WAGE Smart Comerce, VOSS Automotive 34,240 (Dec. 2015) PLN 4,189 INVESTING IN POLAND 2017 INVESTMENT GUIDE 51 CAPITAL Wrocław

LONDON 1,192 KM PARIS 1,078 KM BERLIN MOSCOW 295 KM 1,452 KM

PRAGUE ROME 216 KM 1,085 KM

MAYOR RAFAŁ DUTKIEWICZ POPULATION DEC. 2015 635,759 Cultural heartland

he history of Lower Silesia, the region is an important manufacturing and indeed that of the city hub for the automotive, electronics and of Wrocław, is a fascinating white goods industries, Wrocław is focus- tale of conquest and con- ing on high-tech industries and special- stant cultural intermingling ized services. inT the heart of Europe. Ownership has The city, Poland’s third-largest academic passed between the Czechs, Austrians, center, is training a large number of ac- WORKINGAGE POPULATION Prussians, French, Germans and ﬁnally, countants, engineers and IT specialists. DEC. 2015 Poles. As part of Germany, Wrocław They, in turn, produce skilled labor for the suffered enormous destruction during city’s BPO/ SSC, IT, ﬁnance and account- 393,121 World War II. After the war, Poles from ing, and life science sectors. the country’s eastern territories were UNEMPLOYMENT RATE repatriated there. DEC. 2015 The city is one of Poland’s major academic centers, with thousands of 3.5% accomplished and multilingual students graduating each year. Its central location KEY CONTACTS: AVERAGE PAY in the heart of Europe, and well devel- DEC. 2015 oped transit and local road networks Wrocław Agglomeration facilitate easy and convenient travel and Development Agency PLN 4,570 transportation. Wrocław has a strong tra- araw.pl dition as a major cultural center, and has Pl. Solny 14 hosted a myriad of international events 50-062 Wrocław and festivals. Tel. +48 71 783-5310 MODERN OFFICE According to the Association of Business Fax +48 71 783-5311 SPACE Service Leaders, the city has the largest [email protected] 757,000 SQM number of R&D centers in Poland. While OFFICE VACANCY RATE 10.1%

PRIME HEADLINE OTHER MAJOR CITIES RENTS CITY POPULATION WORKINGAGE POPULATION UNEMPLOYMENT €12.50€14.50 Wałbrzych 115,453 71,364 10.7% Legnica 100,886 62,999 7.4% Jelenia Góra 81,010 48,983 5.2% Lubin 73,210 44,776 6.5%*

*LOCAL COUNTY DATA SOURCE: CUSHMAN & WAKEFIELD INVESTING IN POLAND 2017 52 INVESTMENT GUIDE Lubelskie VOIVODSHIP

ADMINISTRATION

Biała Podlaska

Voivode: Przemysław Czarnek

Puławy

S17 LUZ Wisła Świdnik Marshall: Sławomir Sosnowski Lublin Chełm KEY CONTACTS Marshall's Ofﬁce of Lubelskie Voivodeship Zamość Trade and Investment Promotion Section invest.lubelskie.pl ul. Grottgera 4 20-029 Lublin Tel.: +48 81 537–1615 [email protected]

HIGHER EDUCATION LABOR MARKET BUSINESS

NUMBER OF INSTITUTIONS POPULATION (Dec. 2015) SPECIAL ECONOMIC ZONES Euro Park Mielec 18 2,139,726 Special Economic Zone Starachowice Special Economic Zone MAJOR UNIVERSITIES WORKINGAGE POPULATION Tarnobrzeg Special Economic Zone John Paul II Catholic University in Lublin (Dec. 2015) EUROPARK WISŁOSAN Maria Curie-Skłodowska University in Lublin Lublin University of Technology 1,328,014 RECENT MAJOR INVESTORS Medical University of Lublin ABM GreiffenBerger Univesity of Life Sciences in Lublin UNEMPLOYMENT RATE Aliplast (Dec. 2015) Convergys NUMBER OF STUDENTS (2015) Genpact 11.7% Roto Frank 75,426 AVERAGE MONTHLY WAGE NUMBER OF GRADUATES (2015) (Dec.2015) 21,997 PLN 3,699 INVESTING IN POLAND 2017 INVESTMENT GUIDE 53 CAPITAL Lublin

LONDON 1,786 KM PARIS 1,744 KM BERLIN MOSCOW 730 KM 1,209 KM

PRAGUE ROME 832 KM 1,877 KM

MAYOR KRZYSZTOF ŻUK POPULATION DEC. 2015 340,745

WORKINGAGE POPULATION DEC. 2015 Eastern gem

209,771 ublin is one of the oldest city’s population is made up of students. settlements in Poland, with Businesses currently based in and around UNEMPLOYMENT RATE archeological evidence sug- Lublin include pasta maker Lubella, herb DEC. 2015 gesting that man was present and tea producer Herbapol, and Agus- here 3,000 years ago. The first taWestland-owned aviation producer PZL 7.9% L mention of the name Lublin dates back Świdnik. Farm machinery producer Ursus to the late 12th century. Legend has relocated there in recent years. AVERAGE PAY it that Julius Caesar’s sister found her DEC. 2015 way to Polish territory and founded two cities – Lublin and Lubusz – old spellings PLN 4,060 which reflected her brother’s first name KEY CONTACTS: at the time. Strategy and Investor As the largest city in Poland east of the Assistance Department Vistula River, Lublin has served as one of lublin.eu MODERN OFFICE Poland’s prominent municipalities over Plac Litewski 1 SPACE the centuries. 20-080 Lublin 129,000 SQM Nowadays, Lublin attracts tourists from all Tel.: +48 81 466-2500 over Europe, mainly to its historic old town. [email protected] OFFICE VACANCY Today, approximately 35 percent of the RATE 7.7% OTHER MAJOR CITIES

PRIME HEADLINE CITY POPULATION WORKINGAGE POPULATION UNEMPLOYMENT RENTS Zamość 64,746 41,219 14.0% €11.00€12.50 Chełm 63,949 40,766 14.7% Biała Podlaska 57,389 37,000 13.7% Puławy 48,526 28,350 8.2%* Świdnik 39,913 24,488 13.3%*

*LOCAL COUNTY DATA SOURCE: CUSHMAN & WAKEFIELD INVESTING IN POLAND 2017 54 INVESTMENT GUIDE Lubuskie VOIVODSHIP

ADMINISTRATION

Gorzów S3 Wielkopolski

W art a Voivode: Władysław Dajczak

Odra IEG Marshall: Elżbieta Polak KEY CONTACTS Zielona Investor Assistance Center of Lubuskie Voivodship Góra coi-lubuskie.pl Nowa Sól ul. Chrobrego 1-3-5 Żary 65-057 Zielona Góra Tel.: +48 68 456–5425 A18 [email protected]

HIGHER EDUCATION LABOR MARKET BUSINESS

NUMBER OF INSTITUTIONS POPULATION (Dec. 2015) SPECIAL ECONOMIC ZONES Kostrzyń-Słubice 8 1,018,075 Special Economic Zone Wałbrzych Special Economic Zone MAJOR UNIVERSITIES WORKINGAGE POPULATION Collegium Polonicum (Dec. 2015) RECENT MAJOR INVESTORS State School of Higher Vocational Gedia, Homann Holzwerkstofee Education in Gorzów Wielkopolski 642,638 University of Zielona Góra UNEMPLOYMENT RATE NUMBER OF STUDENTS (2015) (Dec. 2015) 15,134 10.5%

NUMBER OF GRADUATES (2015) AVERAGE MONTHLY WAGE 4,433 (Dec. 2015) PLN 3,568 INVESTING IN POLAND 2017 INVESTMENT GUIDE 55 CAPITAL Zielona Góra

LONDON 1,077 KM PARIS 992 KM BERLIN MOSCOW 157 KM 1,505 KM

PRAGUE ROME 220 KM 1,143 KM

MAYOR JANUSZ KUBICKI POPULATION DEC. 2015 138,898

The city of forests

ince 1999, Zielona Góra has with a local higher education entity to been the co-capital (with become the University of Zielona Góra. WORKINGAGE POPULATION Gorzów Wielkopolski) of the In 2005, the Economic Activity Zone was DEC. 2015 Lubuskie voivodship and established to develop an extensive in- the seat of the provincial vestment offer, with the biggest project 85,614 assemblyS and the province marshal. being the Stelmet timber plant. Located in western Poland, the settle- Rich in green areas, the city is also UNEMPLOYMENT RATE ment was granted town rights around home to arguably the most recognized DEC. 2015 1323. One of the earliest occupations nation-wide speedway team, Falubaz – of its inhabitants was wine growing, a a multiple champion of Poland. 6.3% tradition still cultivated today. Based on the wine’s popularity, the Zielona Góra AVERAGE PAY wine festival has been organized in the DEC. 2015 city every fall since 1852. KEY CONTACTS: Unlike many other cities, Zielona Góra PLN 3,732 was not destroyed during World War Zielona Góra City Hall II and after 1945 it became part of the Entrepreneurship Poznań province. Former German citi- and Municipal Economy zens were deported and replaced with Department MODERN OFFICE Polish settlers from the East. Under biznes.zielonagora.pl SPACE communism, the city developed rapidly ul. Podgórna 22 23,700 SQM and turned into an important cultural, 65-454 Zielona Góra industrial and academic center. In the Tel.: +48 68 456-4100 OFFICE VACANCY 1960s, the ﬁrst technical university [email protected] RATE was opened and in 2001 it merged 12.4%

PRIME HEADLINE RENTS €6.50€8.00 OTHER MAJOR CITIES

CITY POPULATION WORKINGAGE POPULATION UNEMPLOYMENT Nowa Sól 39,459 24,049 15.6% Żary 38,197 23,886 5.9%

*LOCAL COUNTY DATA SOURCE: COLLIERS INVESTING IN POLAND 2017 56 INVESTMENT GUIDE CAPITAL Gorzów Wielkopolski

LONDON 1,056 KM PARIS 1,002 KM BERLIN MOSCOW 126 KM 1,487 KM

PRAGUE ROME 300 KM 1,226 KM

MAYOR JACEK WÓJCICKI POPULATION DEC. 2015 123,911

WORKING AGE POPULATION Small great city DEC. 2015 orzów Wielkopolski is a Kostrzyńsko-Słubicka Economic Zone, 76,291 city in western Poland and many new companies began operating the seat of the Lubuskie in the city, with the largest investment UNEMPLOYMENT RATE voivodship. The settle- from Taiwanese TPV Displays. The city DEC. 2015 ment was set up in the is very well connected as the S3 ex- 13thG century and for a large part of its pressway provides a fast road connec- 5.1% history remained under Brandenburg- tion to Szczecin and Zielona Góra. ian, Prussian and German rule. After AVERAGE PAY World War II, in accordance with the DEC. 2015 Potsdam Conference, Landsberg – as it was called in German – became part PLN 3,533 of Poland and was renamed Gorzów. During communism, the city saw fast economic development and a growth in population. The economic transforma- MODERN OFFICE tion in 1989 resulted in the bankruptcy SPACE of large state owned plants, elevated KEY CONTACTS: Not available unemployment and economic hardship followed. Like elsewhere in Poland, City Hall Investor OFFICE VACANCY Gorzów responded to the crisis by Assistance Ofﬁce RATE opening up to foreign investors. By gorzow.pl Not available 1993, Volkswagen had established its ul. Myśliborska 34 car-wiring factory (currently owned 66-400 Gorzów Wielkopolski PRIME HEADLINE by Japanese Sumomito Electric) and Tel.: +48 95 735-5966 RENTS became the biggest employer in the [email protected] Not available city. After Gorzów was included in the

INVESTING IN POLAND 2017 58 INVESTMENT GUIDE Łódzkie VOIVODSHIP

ADMINISTRATION

Voivode: Zbigniew Rau A2

Łódź LCJ art aW S8

Marshall: Witold Stępień Bełchatów Piotrków Trybunalski KEY CONTACTS Łódzkie Marshall's Ofﬁce Department 1 of Entrepreneurship Investors and Exporters Service Centre biznes.lodzkie.pl al. Piłsudskiego 8 90-051 Łódź Tel.: +48 42 663-3000 Tel.: +48 42 663-3380 [email protected]

HIGHER EDUCATION LABOR MARKET BUSINESS

NUMBER OF INSTITUTIONS POPULATION (Dec. 2015) SPECIAL ECONOMIC ZONES Łódź Special Economic Zone 29 2,493,603 ”Starachowice” Special Economic Zone

MAJOR UNIVERSITIES WORKINGAGE POPULATION RECENT MAJOR INVESTORS Medical University of Łódź (Dec. 2015) Arynga, Light in the box, Open R&D, National Film School in Łódź UGS, Union Industries, UPS Technical University of Łódź 1,530,471 University of Łódź UNEMPLOYMENT RATE NUMBER OF STUDENTS (2015) (Dec 2015) 89,063 10.3%

NUMBER OF GRADUATES (2015) AVERAGE MONTHLY WAGE 23,223 (Dec. 2015) PLN 3,791 INVESTING IN POLAND 2017 INVESTMENT GUIDE 59 CAPITAL Łódź

LONDON 1,350 KM PARIS 1,255 KM BERLIN MOSCOW 422 KM 1,271 KM

PRAGUE ROME 399 KM 1,219 KM

MAYOR HANNA ZDANOWSKA POPULATION DEC. 2015 698,688 Postindustrial wonder

ith the rise of the textile success in many different sectors, from industry at the begin- creative businesses to IT companies. ning of the 19th century, The vacuum caused by the decline of the Łódź, a small settle- clothes industry was filled with foreign WORKING AGE POPULATION ment of a few hundred investments, making Łódź one of the DEC. 2015 W inhabitants, experienced rapid growth. It leading destinations for firms from the was here where the first steam powered white goods, BPO, and logistics sectors. 419,804 factory in Poland, then a client state to Benefiting from its central location at the Russia, was launched in 1839. Industrial- junction of two major highways, its aca- UNEMPLOYMENT RATE ization, and an influx of migrants from all demic centers and relatively cheap, but DEC. 2015 over Europe, transformed the tiny town well-educated labor, Łódź is on a path to into a modern city, with Germans, Jews regain its past glory. Already fast-devel- 9.5% and Poles constituting the majority of the oping and rapidly modernizing, the city citizens. The population of Łódź doubled will receive an additional impulse when AVERAGE PAY every decade between the 1820s and the construction of a new city center is DEC. 2015 1870s and it grew to become the largest completed. textile center in the Russian empire. PLN 4,048 Dubbed “The promised land,” the city saw the making of fabulous fortunes, but it was also a place with huge inequali- KEY CONTACTS: ties and poverty. Its rapid growth was inhibited in the interwar period due to the Investor Relations Office Great Depression and the loss of access invest.lodz.pl MODERN OFFICE to the Russian market following the ul. Piotrkowska 104a SPACE Bolshevik revolution. 90-926 Łódź 347,000 SQM After World War II, Łódź once again grew [email protected] to become a major industrial center, Tel. +48 42 638-5939 OFFICE VACANCY heavily focused on textile production. The Tel. +48 42 638-5940 RATE 1989 transformation marked a decline [email protected] 9.7% in industry, but the city has encountered

PRIME HEADLINE RENTS OTHER MAJOR CITIES €12.00€13.50 CITY POPULATION WORKING AGE POPULATION UNEMPLOYMENT Piotrków Trybunalski 74,905 45,499 9.3% Bełchatów 58,407 39,787 7.9%

*LOCAL COUNTY DATA SOURCE: CUSHMAN & WAKEFIELD INVESTING IN POLAND 2017 60 INVESTMENT GUIDE Małopolskie VOIVODSHIP

ADMINISTRATION

Voivode: Józef Pilch

Oświęcim Kraków KRK A4 Tarnów Wisła

Marshall: Jacek Krupa

KEY CONTACTS Nowy Sącz Business in Małopolska Centre businessinmalopolska.pl ul. Podole 60 30-394 Kraków Tel. +48 12 620-9140 Fax +48 12 620-9166 [email protected]

HIGHER EDUCATION LABOR MARKET BUSINESS

NUMBER OF INSTITUTIONS POPULATION (Dec. 2015) SPECIAL ECONOMIC ZONES Kraków Technology Park 33 3,372,618 Special Economic Zone Katowice Special Economic Zone MAJOR UNIVERSITIES WORKINGAGE POPULATION EURO-PARK MIELEC AGH University of Science and (Dec. 2015) Special Economic Zone Technology, Jagiellonian University, Kraków University of Economics 2,106,080 RECENT MAJOR INVESTORS Airline Accounting Center, Rolls NUMBER OF STUDENTS (2015) UNEMPLOYMENT RATE (Dec. 2015) Royce, RWE, Samsung 175,596 8.3%

NUMBER OF GRADUATES (2015) AVERAGE MONTHLY WAGE 49,986 (Dec. 2015) PLN 3,907 INVESTING IN POLAND 2017 INVESTMENT GUIDE 61 CAPITAL Kraków

LONDON 1,550 KM PARIS 1,460 KM BERLIN MOSCOW 520 KM 1,540 KM

PRAGUE ROME 450 KM 1,500 KM

MAYOR JACEK MAJCHROWSKI POPULATION DEC. 2015 762,448 The city of legends

he ﬁrst mention of the city means it is easily accessible by frequent dates back to 966, when it rail and bus connections. was already an important Its reputation as a growing hub for commercial center in what research and development make it an today is southern Poland. In attractive location for both domestic and WORKINGAGE POPULATION theT mid-eleventh century, it became the international companies. High business DEC. 2015 second Polish capital (after the capital credibility and a special economic zone was moved from Gniezno) and kept that with diverse business incentives serve to 471,743 role until 1596, when the seat of power encourage investment. Several interna- was moved to Warsaw. tional banks, business associations, and UNEMPLOYMENT RATE As one of Poland’s oldest cities and the chambers of commerce have branches in DEC. 2015 historical seat of power, Kraków boasts the city. It’s also one of the strongest BPO a rich history and culture. The historical hubs in Poland with as many as 50,000 4.4% center, including the Wawel Castle, is a people working in the city’s numerous UNESCO listed World Heritage Site. As BPO/SSC centers. AVERAGE PAY legend has it, the city was founded by the DEC. 2015 mythical Prince Krakus, who built Wawel Castle after slaying a great dragon. Over- PLN 4,431 all, splendid examples of medieval, Re- naissance, and Baroque architecture still KEY CONTACTS: abound in the picturesque city. Kraków’s Municipality of Kraków Jagiellonian University is the oldest in Investors Assistance Ofﬁce MODERN OFFICE Poland and one of the oldest in Europe, krakow.pl SPACE and has seen many great students roam 833,000 SQM ul. Bracka 1 its halls, from Copernicus to Pope John 31-005 Kraków Paul II. OFFICE VACANCY Tel.: +48 12 616-6002 Kraków’s convenient geographic location, [email protected] RATE in close proximity to Poland’s major cit- 6% ies, as well as several European capitals,

PRIME HEADLINE RENTS OTHER MAJOR CITIES €12.50€14.50 CITY POPULATION WORKINGAGE POPULATION UNEMPLOYMENT Tarnów 110,381 68,033 8.2% Nowy Sącz 83,829 52,066 7.6% Oświęcim 39,057 23,390 11.3%

*LOCAL COUNTY DATA SOURCE: CUSHMAN & WAKEFIELD INVESTING IN POLAND 2017 62 INVESTMENT GUIDE Mazowieckie VOIVODSHIP

ADMINISTRATION

Voivode: Zdzisław Sipiera Płock

WMI Wisła

Warszawa Siedlce A2 WAW Marshall: Adam Struzik

KEY CONTACTS S7 Mazovia Development Agency Investor and Exporter Service Centre armsa.pl ul. Świętojerska 9 Radom 00-236 Warszawa Tel.: +48 22 566–4760 [email protected]

HIGHER EDUCATION LABOR MARKET BUSINESS

NUMBER OF INSTITUTIONS POPULATION (Dec. 2015) SPECIAL ECONOMIC ZONES Tarnobrzeg SEZ “EURO-PARK 105 5,349,114 WISŁOSAN” Warmia-Mazury SEZ MAJOR UNIVERSITIES WORKINGAGE POPULATION “STARACHOWICE” SEZ University of Warsaw (Dec. 2015) Łódź SEZ Warsaw School of Economics Suwałki SEZ Warsaw University of Technology 3,282,698 RECENT MAJOR INVESTORS NUMBER OF STUDENTS (2015) UNEMPLOYMENT RATE Goldman Sachs, Grand Medical Po- (Dec. 2015) land, Linklaters, Medtronic, Money- 261,599 gram, RBS, Steva Groupe 8.5% NUMBER OF GRADUATES (2015) AVERAGE MONTHLY WAGE 67,485 (Dec. 2015) PLN 5,094 INVESTING IN POLAND 2017 INVESTMENT GUIDE 63 CAPITAL Warsaw

LONDON 1,450 KM PARIS 1,368 KM BERLIN MOSCOW 517 KM 1,151 KM

PRAGUE ROME 517 KM 1,320 KM

MAYOR HANNA GRONKIEWICZWALTZ POPULATION DEC. 2015 The beating heart 1,748,916 of Poland

oland’s capital is the big- sectors. Warsaw’s start-up scene is gest city in the country and also flourishing with programs such one of the biggest financial as Innovative Warsaw 2020 poised to and economic centers in support young entrepreneurs. Google the CEE region. Its GDP per has opened a special entrepreneur- Pcapita is three times higher than the ship campus in Warsaw, the second of WORKINGAGE POPULATION country’s average, providing investors its kind in Europe (London is home to DEC. 2015 with a substantial consumer market. the first). Despite its size, it’s a relatively young Its ever-changing landscape has been 1,046,632 city. Its beginnings were in the 13th further enriched in recent months by century. The city’s name stems from the addition of Warsaw Spire and Q22 UNEMPLOYMENT RATE the knight Warcisław, or rather the office high rises, with several more in DEC. 2015 diminutive Warsz, who was the vil- the pipeline. lage’s owner. In the 16th century, King 3.3% Sigismund Vasa moved the capital of Poland from Kraków to Warsaw. This AVERAGE PAY precipitated a major expansion of the DEC. 2015 provincial town. It remains the capital to this day. KEY CONTACTS: PLN 5,586 Warsaw lies at the intersection of a business and political environment, Smolna Enterpreneurship housing the head offices of the largest firma.um.warszawa.pl national and international companies, ul. Smolna 4 MODERN OFFICE as well as diplomatic missions and 00-375 Warsaw Tel. +48 22 443-0756 SPACE central state offices. It’s also home to centrum.przedsiebiorczosci@ 4,988,000 SQM the country’s largest science and tech- um.warszawa.pl nology center, and the site of various OFFICE VACANCY development initiatives across many RATE 15.4%

PRIME HEADLINE RENTS OTHER MAJOR CITIES Central CITY POPULATION WORKINGAGE POPULATION UNEMPLOYMENT €22.00€24.00 Radom 215,653 133,827 18.4% Non-central €13.00€16.50 Płock 121,468 74,692 10.3%* Siedlce 77,072 47,187 7.9%

*LOCAL COUNTY DATA SOURCE: CUSHMAN & WAKEFIELD 63 INVESTING IN POLAND 2017 64 INVESTMENT GUIDE Opolskie VOIVODSHIP

ADMINISTRATION

Voivode: Adrian Czubak

Odra

A4 Opole

Nysa Marshall: Andrzej Buła

Kędzierzyn-Koźle KEY CONTACTS Investor and Exporter Assistance Center coi.opolskie.pl ul. Krakowska 38 45-075 Opole Tel.: +48 77 403–3645 [email protected]

HIGHER EDUCATION LABOR MARKET BUSINESS

NUMBER OF INSTITUTIONS POPULATION (Dec. 2015) SPECIAL ECONOMIC ZONES Wałbrzych Special Economic Zone 6 996,011 Katowice Special Economic Zone ”STARACHOWICE” MAJOR UNIVERSITIES WORKINGAGE POPULATION Special Economic Zone Academy of Management and Administration (Dec. 2015) College of Humanities and Economy in Brzeg RECENT MAJOR INVESTORS Opole University, Opole University of Technology 635,551 Global Steering Systems, Poligak, Public Medical Vocational College in Opole Tube Tec Rohrverformungstechnik, UNEMPLOYMENT RATE Wipak NUMBER OF STUDENTS (2015) (Dec. 2015) 22,946 10.3%

NUMBER OF GRADUATES (201) AVERAGE MONTHLY WAGE 7,776 (Dec. 2015) PLN 3,793 INVESTING IN POLAND 2017 INVESTMENT GUIDE 65 CAPITAL Opole

LONDON 1,262 KM PARIS 1,135 KM BERLIN MOSCOW 373 KM 1,423 KM

PRAGUE ROME 256 KM 1,064 KM

MAYOR ARKADIUSZ WIŚNIEWSKI POPULATION DEC. 2015 118,938

A city on song

he name Opole comes from rising stars. Many of Poland’s most the old Slavic word mean- prominent singers began their careers WORKINGAGE POPULATION ing the smallest govern- at the festival. DEC. 2015 mental unit. As the capital The most frequent investments in the of the Opolskie voivodship, city are in the metal, food production, 73,773 OpoleT is the central city of the region, construction, and outsourcing sec- providing workplaces, education and tors. Current investors in these sec- UNEMPLOYMENT RATE research facilities. tors include Nutricia, Zott, Energomet, DEC. 2015 Opole was a rich town in Silesia. Kamex, Remak and Capgemini. Opole Consequently, it has experienced many is also Poland’s leading city in terms of 5.3% memorable moments that form the EU funds: money from these funds have city’s entangled history. From the 1241 helped the city renovate its old town, AVERAGE PAY Mongolian invasion to World War II, modernize its infrastructure, and it con- DEC. 2015 Opole seldom experienced peace. It tinues to bolster the city’s development. was plagued by intrigues, sieges and PLN 4,225 annexations. In spite of this, the city was able to gather enough money to impress modern tourists with splendid KEY CONTACTS: architecture. Furthermore, the area MODERN OFFICE around Opole is still home to a signiﬁ- Opole City Hall SPACE cant German-speaking minority. opole.pl Rynek Ratusz 23,100 SQM Opole’s National Polish Song Festival 45-015 Opole is a prominent annual attraction not Tel.: +48 77 451-1800 OFFICE VACANCY only for the city, but also for the rest [email protected] RATE of Poland. Millions tune in to watch 15.5% musical performances by the country’s

PRIME HEADLINE RENTS €7.00€9.50 OTHER MAJOR CITIES

CITY POPULATION WORKINGAGE POPULATION UNEMPLOYMENT Kędzierzyn-Koźle 62,193 38,949 12.7% Nysa 44,419 27,597 17.5%

*LOCAL COUNTY DATA SOURCE: COLLIERS INVESTING IN POLAND 2017 66 INVESTMENT GUIDE Podkarpackie VOIVODSHIP

ADMINISTRATION

Stalowa Wola

Voivode: Ewa Leniart Mielec

RZE A4 RZE Rzeszów A4 Przemyśl Krosno Marshall: Władysław Ortyl KEY CONTACTS Rzeszów Regional Development Agency Inward Investment Centre coi.rzeszow.pl ul. Szopena 51 35-959 Rzeszów Tel. +48 17 852-4376 Fax +48 17 852-4374 [email protected]

HIGHER EDUCATION LABOR MARKET BUSINESS

NUMBER OF INSTITUTIONS POPULATION (Dec. 2015) SPECIAL ECONOMIC ZONES

15 2,127,657 EURO-PARK MIELEC Special Economic Zone MAJOR UNIVERSITIES WORKINGAGE POPULATION Kraków Technology Park Special Rzeszów University of Technology, (Dec. 2015) Economic Zone School of Law and Public Tarnobrzeg Special Economic Zone Administration in Rzeszów, 1,345,402 “EURO-PARK WISŁOSAN” University of Information Technology and Management, UNEMPLOYMENT RATE RECENT MAJOR INVESTORS University of Rzeszów (Dec. 2015) , IKEA Industries, JiangSu LanTian NUMBER OF STUDENTS (2015) 13.3% Aerospace Industrial Park Management, Kirchhoff, MTU Aero 54,086 AVERAGE MONTHLY WAGE Engines (Dec. 2015) NUMBER OF GRADUATES (2015) PLN 3,528 17,973

INVESTING IN POLAND 2017 68 INVESTMENT GUIDE CAPITAL Rzeszów

LONDON 1,560 KM PARIS 1,423 KM BERLIN MOSCOW 658 KM 1,222 KM

PRAGUE ROME 540 KM 1,168 KM

MAYOR TADEUSZ FERENC POPULATION DEC. 2015 Tech firms and planes 187,027 zeszów, located in southeast amounted to PLN 21,100. Poland, is the capital of the In 2016, the A4 highway was completed Podkarpackie voivodship and providing a connection with both Germany the seat of Rzeszów County. and Ukraine. The S19 expressway, which is It was granted a town charter nearing completion, will offer a north-south inR 1354. Having been invaded a number of route, connecting the city with Lublin and times by Tatars, Vlachs, and Swedes dur- Białystok, as well as leading to the Slova- ing the Deluge, the city has burnt down kian border in the South, and up to Belarus WORKINGAGE POPULATION several times over the centuries. However, in the North. DEC. 2015 thanks to its favorable location at the Rzeszów features an international airport – intersection of major east-west routes, it Rzeszów-Jasionka, which services 13,000 117,746 has always managed to recover. takeoffs and landings a year. The number of Rzeszów now has over 187,000 residents, passengers travelling to and from the air- UNEMPLOYMENT RATE and has maintained its average population port has increased by 15 percent annually DEC. 2015 growth rate of 1,500 a year since 2000. The on average since 2007, and in 2015 reached city has positioned itself as an IT power- nearly 650,000. 7.3% house, with Poland’s largest IT company Asseco headquartered in the city, together AVERAGE PAY with a number of other software houses. DEC. 2015 The area around Rzeszów is also home to a KEY CONTACTS: large cluster of companies in the aerospace PLN 4,232 and aviation industry, altogether form- Rzeszów Regional ing the so-called “Aviation Valley,” which Development Agency includes Vac Aero International, MacBraida, Inward Investment Centre UTC Aerospace Systems, BorgWarner coi.rzeszow.pl MODERN OFFICE Turbosystems and MTU Aero Engine. ul. Szopena 51 SPACE The city has been active in procuring Euro- 35-959 Rzeszów 66,000 SQM pean financing for investment. In the 2007- Tel. +48 17 852-4376 2013 EU financial framework, it ranked Fax +48 17 852-4374 OFFICE VACANCY second (after Gdańsk) in investments per [email protected] RATE capita carried out with EU funding, which 7.8%

HEADLINE OTHER MAJOR CITIES RENTS CITY POPULATION WORKINGAGE POPULATION UNEMPLOYMENT €8.00€10.50 Stalowa Wola 62,636 39,661 14.9%* Przemyśl 62,485 38,777 9.2%* Mielec 60,827 38,312 10.8%* Krosno 46.934 28,679 5.9%

*LOCAL COUNTY DATA SOURCE: COLLIERS INVESTING IN POLAND 2017 INVESTMENT GUIDE 69 Podlaskie VOIVODSHIP

ADMINISTRATION

Suwałki

Voivode: Bohdan Józef Paszkowski

Łomża Marshall: Jerzy S8 Białystok Leszczyński KEY CONTACTS Investor Assistance Centre coi.wrotapodlasia.pl ul. Poleska 89 15-874 Białystok Tel. +48 85 665-4495 Fax +48 85 665-4440 [email protected]

HIGHER EDUCATION LABOR MARKET BUSINESS

NUMBER OF INSTITUTIONS POPULATION (Dec. 2015) SPECIAL ECONOMIC ZONES Suwałki Special Economic Zone 18 1,118,800 Tarnobrzeg Special Economic Zone

MAJOR UNIVERSITIES WORKINGAGE POPULATION RECENT MAJOR INVESTORS Białystok Technical University, (Dec. 2015) Altrad, British American Tobacco, Medical University of Białystok, IKEA, Mecom Press, Nibe, University of Białystok 750,360 Nordstjernan, Pﬂeiderer, Pilkington, SABMiller Group, NUMBER OF STUDENTS (2015) UNEMPLOYMENT RATE (Dec. 2015) Standard Motor Products 36,249 12%

NUMBER OF GRADUATES (2015) AVERAGE MONTHLY WAGE 11,030 (Dec. 2015) PLN 3,647 INVESTING IN POLAND 2017 70 INVESTMENT GUIDE CAPITAL Białystok

LONDON 1,588 KM PARIS 1,527 KM BERLIN MOSCOW 659 KM 977 KM

PRAGUE ROME 692 KM 1,485 KM

MAYOR TADEUSZ TRUSKOLASKI Rising spirits POPULATION DEC. 2015 296,310 iałystok, the capital of the highest population densities of 2,893 Podlaskie voivodship, is residents per square km, which is second Poland’s largest city in only to Warsaw among Poland’s major the northeastern part of cities. It is the cultural and educational the country, located close hub of the region, producing around 9,000 Bto four national borders: with Russia, university graduates a year, two-thirds of Lithuania, Belarus, and Ukraine. Granted which are women. town charter in 1692, the town was the The city is located on the S8 expressway, residence of several aristocratic families, connecting Białystok in the northeast WORKINGAGE POPULATION including the Branicki and Lubomirski with Wrocław in the southwest of the DEC. 2015 families. Many of the architectural gems country. The route should be completed they left behind have been restored to by the end of 2018. Another express- 188,588 their former glory, including the baroque- way under construction – the S19 – will style Branicki Palace, one of the city’s top connect it with Lublin and Rzeszów, two UNEMPLOYMENT RATE tourist destinations. major Polish cities in eastern Poland, and DEC. 2015 Throughout the 19th and 20th centuries, further south with Slovakia, as part of the the city was a major hub for light industry, Via Carpathia route. 10.5% which led to its rapid growth. However, The city ranked first in the quality of life after the transformation many of the category in the 2016 city ranking pre- AVERAGE PAY factories faced financial problems and pared by weekly Wprost. DEC. 2015 subsequently went under. Still, the city is an important industrial center, with elec- PLN 3,845 tronics and metallurgy, wood processing, construction, glass and textile manufacturing located there. It also features the largest vodka distillery in Poland. How- KEY CONTACTS: MODERN OFFICE ever, over the past two decades Białystok SPACE has been refocusing its economy on the Department of Strategy 39,300 SQM BPO and IT industries. and Development, The city’s population has remained stable Investor Assistance Office OFFICE VACANCY over the past two decades, increasing by bialystok.pl RATE some 10,000 since 2010 to nearly 260,000 ul. Słonimska 1 15-950 Białystok 13% in 2015, which is mainly due to the influx Tel. +48 85 879-7979 from neighboring municipalities and HEADLINE smaller towns. Białystok has one of the RENTS €8.50€10.00 OTHER MAJOR CITIES

CITY POPULATION WORKINGAGE POPULATION UNEMPLOYMENT Suwałki 69,543 45,167 8.5% Łomża 62,716 40,775 13.4%

*LOCAL COUNTY DATA SOURCE: COLLIERS INVESTING IN POLAND 2017 INVESTMENT GUIDE 71 Pomorskie VOIVODSHIP

ADMINISTRATION

Voivode: Dariusz Drelich

Gdynia Gdynia

S6 Gdańsk

GDN

Marshall: Mieczysław Struk

Tczew KEY CONTACTS Invest in Pomerania A1 investinpomerania.pl ul. Grunwaldzka 472 D Wisła 80-309 Gdańsk Tel. +48 58 323-3256 Fax +48 58 301-1200

HIGHER EDUCATION LABOR MARKET BUSINESS

NUMBER OF INSTITUTIONS POPULATION (Dec. 2015) SPECIAL ECONOMIC ZONES Pomeranian Special Economic Zone 28 2,307,710 Słupsk Special Economic Zone

MAJOR UNIVERSITIES WORKINGAGE POPULATION RECENT MAJOR INVESTORS Gdańsk University of Technology (Dec. 2015) Jeppesen, Luxoft, Marine Harvest VAP University of Gdańsk 1,436,214 Europe, State Street, Wadakyu Europe NUMBER OF STUDENTS (2015) UNEMPLOYMENT RATE 90,031 (Dec. 2015) NUMBER OF GRADUATES (2015) 9.1% 23,132 AVERAGE MONTHLY WAGE (Dec. 2015) PLN 4,132 INVESTING IN POLAND 2017 72 INVESTMENT GUIDE CAPITAL Gdańsk

LONDON 1,192 KM PARIS 1,078 KM BERLIN MOSCOW 295 KM 1,452 KM

PRAGUE ROME 216 KM 1,085 KM

MAYOR PAWEŁ ADAMOWICZ POPULATION DEC. 2015 462,996 Poland’s door to the high seas dańsk’s strategic location up the Tri-City metropolitan area. on the shores of the Baltic Gdańsk witnessed rapid infrastructural WORKINGAGE POPULATION Sea has contributed to its development as it strove to prepare for DEC. 2015 prominent role throughout the Euro 2012 soccer championships. The centuries of Polish history. recently completed second terminal of the 281,839 G Founded in the late 10th century, the city Lech Wałęsa Airport has helped increase was a hotbed of trade, fishing, and craft passenger traffic to an estimated 2.9 mil- UNEMPLOYMENT RATE guilds. Its favorable geographic positioning, lion per year. The PGE Arena and Amber DEC. 2015 as well as flourishing industries, made it Expo center have in turn improved the city’s a point of contention between Poland and capacity to host events, fairs and confer- 4.0% Germany. However, because of its strong ences. economic position, the city enjoyed sig- AVERAGE PAY nificant autonomy, briefly becoming a free DEC. 2015 city during the Napoleonic Wars, and again after World War I. PLN 4,992 Modern day Gdańsk still utilizes its strate- KEY CONTACTS: gic location at the crossroads of European land and sea trade. The capital of the Gdańsk Economic Pomeranian voivodship has become an Development Agency MODERN OFFICE important venue for various international investgda.pl SPACE meetings of politicians, business people, ul. Żaglowa 11 629,000 SQM researchers and artists. It also offers a wide 80-560 Gdańsk variety of business associations, and insti- Tel.: +48 58 722-0300 OFFICE VACANCY tutions such as the Gdańsk Entrepreneur Fax +48 58 746-3399 RATE Service Center. Along with the neighboring offi[email protected] 13.5% cities of Gydnia and Sopot, Gdańsk makes

PRIME HEADLINE RENTS OTHER MAJOR CITIES €12.00 €13.50 CITY POPULATION WORKINGAGE POPULATION UNEMPLOYMENT Gdynia 247,329 149,112 4.9% Słupsk 92,170 56,897 7.9% Tczew 59,972 36,950 8.9%*

*LOCAL COUNTY DATA SOURCE: CUSHMAN & WAKEFIELD INVESTING IN POLAND 2017 INVESTMENT GUIDE 73 Silesia VOIVODSHIP

ADMINISTRATION

Częstochowa

art aW 1 Voivode: Jarosław Wieczorek

KTW Dąbrowa A4 Górnicza Gliwice Sosnowiec

Katowice Rybnik A1 Marshall: Wojciech Saluga Odra KEY CONTACTS Wisła Silesian Investor and Exporter Assistance Center S1 invest.slaskie.pl Bielsko-Biała ul. Ligonia 46 40-037 Katowice [email protected]

HIGHER EDUCATION LABOR MARKET BUSINESS

NUMBER OF INSTITUTIONS POPULATION (Dec. 2015) SPECIAL ECONOMIC ZONES 45 4,570,849 Katowice Special Economic Zone RECENT MAJOR INVESTORS MAJOR UNIVERSITIES WORKINGAGE POPULATION Ajinomoto Jawo, Daedong System, Academy of Fine Arts in Katowice, (Dec. 2015) Fiuka Polska, General Motors Academy of Physical Education in Manufacturing, Hanil E - Hwa Katowice, Częstochowa University 2,858,648 Automotive Poland, Plastic Omnium, of Technology, Medical University Teleperformance, TRW Steering of Silesia, Silesian University UNEMPLOYMENT RATE (Dec. 2015) System, Woobo Tech NUMBER OF STUDENTS (2015) 8.2% 118,936 AVERAGE MONTHLY WAGE (Dec. 2015) NUMBER OF GRADUATES (2015) PLN 4,221 36,692 INVESTING IN POLAND 2017 74 INVESTMENT GUIDE CAPITAL Katowice

LONDON 1,550 KM PARIS 1,460 KM BERLIN MOSCOW 520 KM 1,540 KM

PRAGUE ROME 450 KM 1,500 KM

MAYOR MARCIN KRUPA POPULATION DEC. 2015 299,012 Working wonders

rom the 16th century until the Ericsson, ING, IBM, PwC, Oracle, and end of World War I Katowice Perform Media. Economic indicators was an important industrial only reinforce Katowice’s accomplish- city under Prussian, and later ments: the unemployment rate is the German, control. When Up- lowest in Poland, while the per capita WORKINGAGE POPULATION perF Silesia was awarded to Poland as GDP is the highest nationwide. DEC. 2015 part of the Treaty of Versailles, German Kattowitz became Polish Katowice. 185,081 Then, in 1953, to commemorate the death of Joseph Stalin, the city was UNEMPLOYMENT RATE renamed Stalinogród by contemporane- DEC. 2015 ous Polish authorities. The previous and current name was restored in 1956. 3.8% After the fall of communism, many of the mines and local industries were AVERAGE PAY closed. Currently, more than 70 percent DEC. 2015 of Katowice’s residents work in the KEY CONTACTS: services sector, which is experiencing a PLN 5,262 revival. Some mines are still operational, Strategic Investors other sectors of industry are reinvent- Assistance Centre ing themselves and the city center has invest.katowice.eu undergone a major renovation. ul. Młyńska 4 MODERN OFFICE The city currently boasts 64 service 40-098 Katowice Tel. +48 32 259-3823 SPACE centers owned by 57 investors from 10 [email protected] 398,000 SQM countries. Foreign investors in Kato- wice include ArcelorMittal, Bombardier, OFFICE VACANCY RATE 14.30% OTHER MAJOR CITIES

CITY POPULATION WORKINGAGE POPULATION UNEMPLOYMENT PRIME HEADLINE Częstochowa 227,270 139,722 8.5% RENTS Sosnowiec 206,516 128,479 11.4% €12.00€13.75 Gliwice 182,969 114,133 5.5% Bielsko-Biała 172,407 104,028 4.3% Bytom 170,059 106,548 18.5% Dąbrowa Górnicza 122,451 77,226 9.1%

*LOCAL COUNTY DATA SOURCE: CUSHMAN & WAKEFIELD INVESTING IN POLAND 2017 INVESTMENT GUIDE 75 Świętokrzyskie VOIVODSHIP

ADMINISTRATION

Voivode: Agata Wojtyszek

Starachowice

S8 Ostrowiec Kielce Świętokrzyski

Marshall: Adam Jarubas

KEY CONTACTS Investor Assistance Centre of Świętokrzyskie Wisła Voivodeship coi.sejmik.kielce.pl ul. Sienkiewicza 63 25-002 Kielce Tel. +48 41 365-8182

HIGHER EDUCATION LABOR MARKET BUSINESS

NUMBER OF INSTITUTIONS POPULATION (Dec. 2015) SPECIAL ECONOMIC ZONES ”STARACHOWICE” 15 1,257,179 Special Economic Zone Tarnobrzeg Special Economic Zone MAJOR UNIVERSITIES WORKINGAGE POPULATION ”EURO-PARK WISŁOSAN” Jan Kochanowski University (Dec. 2015) Kielce University of Technology RECENT MAJOR INVESTORS 780,879 AS Energy, Foster Wheeler, NUMBER OF STUDENTS (2015) GDF SUEZ UNEMPLOYMENT RATE 30,109 (Dec. 2015) NUMBER OF GRADUATES (2015) 12.7% 11,148 AVERAGE MONTHLY WAGE (Dec. 2015) PLN 3,581 INVESTING IN POLAND 2017 76 INVESTMENT GUIDE CAPITAL Kielce

LONDON 1,445 KM PARIS 1,326 KM BERLIN MOSCOW 531 KM 1,249 KM

PRAGUE ROME 447 KM 1,179 KM

MAYOR WOJCIECH LUBAWSKI POPULATION DEC. 2015 197,724

A city of all trades ielce is located at the foot of visitors annually. The expositions the Świętokrzyskie Moun- highlight various industries, including de- WORKINGAGE POPULATION tains, a convenient location fense, agriculture, and religious articles. DEC. 2015 which has made the city The rise in the significance and size of a significant commercial, the trade fairs has led to more regional 121,015 K political, and military center in Poland. It companies getting involved in the mar- is also the academic center of the region, ket, as well as a cluster of conference UNEMPLOYMENT RATE with 11 higher education institutions, and organizers and providers of associated DEC. 2015 41,000 students. The city’s authorities services. The exhibitions also facilitate have shown an increasing willingness contacts and relationships with foreign 8.8% to finance initiatives to improve both the entities, helping to build the city’s image quality of life of its citizens, and the busi- abroad. AVERAGE PAY ness environment for investors. Recent DEC. 2015 projects include the development of the public transportation system, the mod- PLN 3,846 ernization of a waste treatment plant, as well as the revitalization of the historic downtown area. During its long history, Kielce based its KEY CONTACTS: MODERN OFFICE industry on ore processing of cop- SPACE per, iron and lead, as well as marble Investor Assistance Center 59,500 SQM production. The city has expanded into invest.kielce.pl different branches, including property ul. Strycharska 6 OFFICE VACANCY development, building materials and food 25-659 Kielce RATE processing. Tel.: +48 41 367-6571 9.4% One of the city’s main attractions is the [email protected] Kielce Trade Fairs, which draw 200,000 HEADLINE RENTS €8.00€10.00 OTHER MAJOR CITIES

CITY POPULATION WORKINGAGE POPULATION UNEMPLOYMENT Ostrowiec Świętokrzyski 70,396 43,772 16.7%* Starachowice 50,174 30,516 12.9%*

*LOCAL COUNTY DATA SOURCE: COLLIERS INVESTING IN POLAND 2017 INVESTMENT GUIDE 77 Warmińsko-Mazurskie VOIVODSHIP

ADMINISTRATION

Voivode: Artur Chojecki

Elbląg

S7 Ełk Olsztyn Marshall: Gustaw Marek Brzezin QYO KEY CONTACTS Investors and Exporters’ Service Centre invest.warmia.mazury.pl ul. Głowackiego 17 10-447 Olsztyn Tel. +48 89 512-5190 [email protected]

HIGHER EDUCATION LABOR MARKET BUSINESS

NUMBER OF INSTITUTIONS POPULATION (Dec. 2015) SPECIAL ECONOMIC ZONES

8 1,439,675 Suwałki Special Economic Zone Warmia-Mazury Special Economic Zone MAJOR UNIVERSITIES WORKINGAGE POPULATION University of Computer Science (Dec. 2015) RECENT MAJOR INVESTORS and Economics, University of Warmia and Mazury 917,403 Alstom, Heinz-Glas, IKEA, Michelin, Philips Lighting, NUMBER OF STUDENTS (2015) UNEMPLOYMENT RATE Smithﬁeld Foods 29,341 (Dec. 2015) 16.5% NUMBER OF GRADUATES (2015) AVERAGE MONTHLY WAGE 9,115 (Dec. 2015) PLN 3,495 INVESTING IN POLAND 2017 78 INVESTMENT GUIDE CAPITAL Olsztyn

LONDON 1,409 KM PARIS 1,370 KM BERLIN MOSCOW 492 KM 1,119 KM

PRAGUE ROME 584 KM 1,451 KM

MAYOR PIOTR GRZYMOWICZ POPULATION DEC. 2015 173,599

The city amid a thousand lakes WORKINGAGE POPULATION lsztyn is the capital After the ﬁrst partition of Poland, Olsztyn DEC. 2015 of the Warmińsko- was annexed by Prussia and only re- Mazurskie voivodship turned to Poland after the 1945 Potsdam 109,143 located in northeastern Agreement redrew the country’s borders. Poland. The city has a Since 1967, the city has boasted a well- UNEMPLOYMENT RATE richO history dating back to the 14th known tire factory, Stomil – now owned by DEC. 2015 century when Teutonic Knights Michelin. Companies operating in wood, began the construction of a castle, furniture, food and many other sectors 5.8% which gave the settlement its frequently invest here. Olsztyn is one of name. Olsztyn is a Polish translit- the few cities that have a positive reading AVERAGE PAY eration of Allenstein, which meant in population growth. DEC. 2015 the castle on the Alle river (now Łyna). The most famous resident PLN 4,104 of the castle was Nicolas Coper- nicus and it was there where he wrote one of the ﬁrst works in the history of economic thought. In the KEY CONTACTS: MODERN OFFICE 15th century, the settlement came SPACE under the rule of Poland and after Olsztyn City Hall 40,400 SQM the defeat of the Teutonic Knights olsztyn.eu in 1521 it experienced swift devel- Pl. Jana Pawła II 1 OFFICE VACANCY opment, which came to a halt 200 10-101 Olsztyn RATE years later, when the epidemics of Tel. +48 89 527-3111 ext. 261 [email protected] 29.7% bubonic plague and cholera wiped out the population. PRIME HEADLINE RENTS €11.00€12.50 OTHER MAJOR CITIES

CITY POPULATION WORKINGAGE POPULATION UNEMPLOYMENT Elbląg 121,412 76,605 12.9% Ełk 60,621 38,721 16.5%*

*LOCAL COUNTY DATA SOURCE: COLLIERS INVESTING IN POLAND 2017 INVESTMENT GUIDE 79 Wielkopolskie VOIVODSHIP

ADMINISTRATION

Piła

Voivode: Zbigniew Hoffmann W art a

S11 Poznań A2 POZ S5 Konin Marshall: Marek Woźniak

KEY CONTACTS Wielkopolskie Investor Assistance Centre Kalisz investinwielkopolska.pl Al. Niepodległości 16/18 61-713 Poznań Tel. +48 61 854-1973 Fax +48 61 851-5395 ofﬁ[email protected] S8 [email protected]

HIGHER EDUCATION LABOR MARKET BUSINESS

NUMBER OF INSTITUTIONS POPULATION (Dec. 2015) SPECIAL ECONOMIC ZONES

40 3,475,323 Kamienna Góra Special Economic Zone MAJOR UNIVERSITIES WORKINGAGE POPULATION Kostrzyn-Słubice Special (Dec. 2015) Economic Zone Adam Mickiewicz University in Poznań, Łódź Special Economic Zone Poznań University of Economics, 2,175,703 Pomeranian Special Economic Zone Poznań University of Life Sciences, Wałbrzych Special Poznań University of Medical Sciences UNEMPLOYMENT RATE Economic Zone (Dec. 2015) NUMBER OF STUDENTS (2015) 6.3% RECENT MAJOR INVESTORS 140,135 Amazon, ArjoHuntleigh, Delphi AVERAGE MONTHLY WAGE Automotive, DFDS, Grupa Armatura, NUMBER OF GRADUATES (2015) (Dec. 2015) Mars, Newell Rubbermaid, O-I, 39,739 PLN 3,729 Volkswagen INVESTING IN POLAND 2017 80 INVESTMENT GUIDE CAPITAL Poznań

LONDON 1,171 KM PARIS 1,099 KM BERLIN MOSCOW 239 KM 1,395 KM

PRAGUE ROME 312 KM 1,219 KM

MAYOR JACEK JAŚKOWIAK POPULATION DEC. 2015 541,561 The cradle of Poland

ocated on the Warta River, The city hosts the annual Poznań In- halfway between Warsaw ternational Fair, the biggest industrial and Berlin, Poznań is a half- fair in Poland and foreign investment million strong economic rates are some of the highest in the center, and the capital of the country. It maintains its position as LWielkopolskie voivodship. Its history is one of the strongest economic centers WORKINGAGE POPULATION closely tied to the history of Poland as in Poland. The city also offers a wide DEC. 2015 the city is the area where the Polish range of cultural and entertainment state emerged. It was probably here events, including the Malta Festival – 332,702 where the ruler of the Polan tribe, the biggest theater festival in Poland – Mieszko I, was baptized in 966, an and Dancing Poznań with guests from UNEMPLOYMENT RATE event that marked Poland’s incorpora- all over the world. DEC. 2015 tion into Christian Europe. Throughout history the city remained a major 2.4% cultural, economic and political center thanks to its location on the East-West AVERAGE PAY trade route. Poznań is also the loca- DEC. 2015 tion of the 1918 Greater Poland Upris- ing, the only successful armed bid for KEY CONTACTS: PLN 4,549 independence in Poland. The city is home to many foreign com- Investor Relations panies, which are attracted by its loca- Department tion, good transport network and well poznan.pl MODERN OFFICE educated, but relatively cheap work- Pl. Kolegiacki 17 SPACE force. Among the biggest corporations 61-841 Poznań 404,000 SQM present in Poznań and its vicinity are Tel. +48 61 878-5428 Fax +48 61 878-5500 Volkswagen, Allegro, GlaxoSmithKline, [email protected] OFFICE VACANCY Solaris Bus and Coach, and Kuehne RATE and Nagel. 13.2%

PRIME HEADLINE RENTS OTHER MAJOR CITIES €12.50€14.00 CITY POPULATION WORKINGAGE POPULATION UNEMPLOYMENT Kalisz 102,575 61,682 5.5% Konin 75,607 46,679 11.2% Piła 74,102 46,399 7.4%

*LOCAL COUNTY DATA SOURCE: CUSHMAN & WAKEFIELD INVESTING IN POLAND 2017 INVESTMENT GUIDE 81 Zachodniopomorskie VOIVODSHIP

ADMINISTRATION

Koszalin

Świnoujście Voivode: Krzysztof Kozłowski

SZZ S3 Szczecin Stargard Marshall: Olgierd Geblewicz Szczeciński S10 KEY CONTACTS Investors Assistance Center S3 iac.wzp.pl Al. Piłsudzkiego 42 70-421 Szczecin Tel. +48 91 446-7105 Odra Fax +48 91 446-7105 [email protected]

HIGHER EDUCATION LABOR MARKET BUSINESS

NUMBER OF INSTITUTIONS POPULATION (Dec. 2015) SPECIAL ECONOMIC ZONES Słupsk Special Economic Zone 20 1,710,482 Kostrzyn-Słubice Special Economic Zone MAJOR UNIVERSITIES WORKINGAGE POPULATION Łódź Special Economic Zone (Dec. 2015) Pomeranian Special Economic Zone Koszalin University of Technology EURO-PARK MIELEC Special Maritime University of Szczecin 1,079,511 Economic Zone Pomeranian Medical University University of Szczecin UNEMPLOYMENT RATE (Dec. 2015) RECENT MAJOR INVESTORS West Pomeranian Business School Backer OBR, Bilﬁnger, Bridgestone, 13.3% Cargolec, Colorplast, Espersen, NUMBER OF STUDENTS (2015) LM Wind Power Blades, Smartguy AVERAGE MONTHLY WAGE Group, Tieto, Tognum, Unichains, 45,205 (Dec. 2015) UniCredit Process & Administration NUMBER OF GRADUATES (2015) PLN 3,794 12,474 INVESTING IN POLAND 2017 82 INVESTMENT GUIDE CAPITAL Szczecin

LONDON 1,017 KM PARIS 991 KM BERLIN MOSCOW 127 KM 1,503 KM

PRAGUE ROME 373 KM 1,293 KM

MAYOR PIOTR KRZYSTEK POPULATION DEC. 2015 405,413 Between mainland and sea

espite not being located For business strategy, city officials are directly by the Baltic Sea currently focused on developing the (some 65 kilometers from BPO, logistics and renewable energy the coast), the city is one sectors, particularly wind energy, in WORKINGAGE POPULATION of Poland’s major marine addition to its more traditional mari- DEC. 2015 portsD thanks to being directly situated time industries. on the Oder river estuary. 250,253 The first settlement in the area of modern-day Szczecin dates back to UNEMPLOYMENT RATE the 6th century BC and is attributed DEC. 2015 to the Lusatian Culture. The first documented stronghold was built 6.8% here in the late 8th century and later expanded under Slavic rulers. AVERAGE PAY For most of its history, Szczecin was DEC. 2015 known as Stettin, and remained part of the Prussian, and later German Em- KEY CONTACTS: PLN 4,382 pire until after World War II. After the war, Szczecin began to develop rapidly, Investors and Business Sup- predominantly because of the grow- port Department ing importance of its seaport, which invest.szczecin.eu MODERN OFFICE was a transfer point for Silesian coal. Pl. Armii Krajowej 1 70-456 Szczecin SPACE The city was also famously featured Tel. +48 91 424-5819 166,000 SQM in Winston Churchill’s Iron Curtain Fax +48 91 424-5820 speech: “From Stettin in the Baltic to [email protected] OFFICE VACANCY Trieste in the Adriatic, an iron curtain RATE has descended across the Continent.” 17.7%

PRIME HEADLINE RENTS €12.00€13.50 OTHER MAJOR CITIES CITY POPULATION WORKINGAGE POPULATION UNEMPLOYMENT Koszalin 107,981 65,752 8.4% Stargard Szczeciński 68,564 42,821 12.7% Świnoujście 41,134 25,772 7.0%

*LOCAL COUNTY DATA SOURCE: CUSHMAN & WAKEFIELD KOSZALIN – The Excellent choice

Koszalin is a dynamic economic centre of the Middle Pomerania. There are more than 18,200 businesses here, whereof almost 97% are private firms, including firms with international capital input such as Espersen Polska Sp. z o.o. (Denmark), Royal Greenland Seafood Sp. z o.o. (Denmark), Elfa Manufacturing Poland Sp. z o.o. (Swe- den), Rotho Sp. z o.o. (Switzerland), Jeronimo Martins Polska S.A. (Portugal) and Schwarte-Milfor Sp. z o.o. (Ger- many). NordGlass Sp. z o. o. (Poland), GIPO Sp. z o.o. (Denmark), BerlinerLuft Technik Spółka z o.o. (Germany). Koszalin is also an important academic centre. There are three schools of university standing in the city that provide higher education in technical and liberal arts fields as well as a well developed network of the secondary level schools. Therefore, we can offer well educated and prepared professional workforce and a good base for development of such industry in our city.

Advantages of Koszalin: The attractive investment sites attractive investment lands equipped with utilities of 59 hectares located in the “Koszalin” Subzone of the Słupsk Special Economic Zone (SSEZ) at attractive conditions. The lands are designated for the building of production plants and logistics centers as well as for BPO investments.

Perfect location and transport accessibility in the vicinity of national routes No 6 (Szczecin – Gdańsk) and No 11 (Kołobrzeg – Poznań – Górny Śląsk) near planed motorways no S6 and no S11 junction. Expressway S6 connecting Berlin and Gdańsk is under construction. Until 2018 Koszalin – Sianów bypass will be constructed within that project framework.

Close to the Sea It is only 6 km to the Baltic Sea in a straight Line. There is also a harbor in Darłowo – 25 km away, and harbor in Kołobrzeg – 36 km away.

Preferences for Investors An entrepreneur who has been granted the permit for business activity in the zone is exempted from the CIT income tax up to 55%, depending on the size of the company. He is also exempted from the local real estate, lands, buildings and constructions tax by the rule of de minimis.

Plots division according to investor’s needs which Contact: means large savings. Min. plot area from 0,4 ha. MUNICIPALITY OF KOSZALIN Zoning in local spatial development plan:

75-007 Koszalin PL industrial production, logistic & warehouse cent- Rynek Staromiejski 6-7 ers. No investment obstacles. Allowed built-up

Ptr el area: up to 75%, max. height up to 25 m. Mayor of Koszalin Phone : (+48) 94-348-86-03, Friendly climate and permanent contact with Fax : (+48) 94-348-86-25 @: [email protected] investor till launching plant (investment process assistance by representatives of the Municipality). Joanna Piotrkowska-Ciechomska Mayor’s Representative in charge of Key Investors and Employment Well qualiﬁed future staff and low work costs. Phone : (+48) 94 348 87 93; Fax : (+48) 94 348 87 92 @: [email protected] Assistance in searching for employees. INVESTING IN POLAND 2017 84 SPECIAL ECONOMIC ZONES

SPECIAL ECONOMIC ZONES

ince 1994 when the ﬁrst SEZ was created in Poland, the Polish special economic zones in terms of area Scountry has continued to look to these investment ar- (in hectars), latest ﬁgures eas to boost its economy. So far, 14 such zones have been created. Their lifespan has been extended recently to 2026 (from 2020). 3000

The government explained that extending the time that 2500 SEZs will operate was especially important to investors 3000 carrying out long-term projects that take several years to 2000

break even, for example in the automotive industry. If the 2500 zones were to be dissolved in 2020, car manufacturers, for 1500

2000 example, would not decide to build their factories in Po- 1000 land, it said. 1500 500 Companies investing in SEZs can count on numerous in- 1000 centives, including tax breaks. According to the Economy 0 SOOIPP Source:

Ministry’s calculations, investors in Polish SEZs saved over Łodź 500 Legnica Słupsk Suwałki Katowice Wałbrzych PLN 4.9 billion in tax breaks between 2007 and 2010. From Pomeranian Tarnobrzeg Kostrzyn-Slubice Warmia-Mazury “Starachowice” Kamienna Góra

their inception through the end of 2010, companies invest- 0 SOOIPP Source: EURO-PARK MIELEC ed a total of more than PLN 73 billion and created over Krakow Technology Park Łodź Legnica Słupsk Suwałki Katowice 167,000 jobs in the SEZs. Wałbrzych Pomeranian Tarnobrzeg Kostrzyn-Slubice Warmia-Mazury “Starachowice” Kamienna Góra

Each SEZ is unique, with its own strengths, weaknesses EURO-PARK MIELEC and particular focus. For example the Kamienna Góra SEZ Polish special economic zones inKrakow terms Technology Park of investment for Medium Business specializes in servicing SMEs. The value25 (in PLN billions), latest ﬁgures Kraków Technology Park deals with innovative services and

technologies. Other SEZs are located in particularly attrac- 20

tive areas in terms of lucrative foreign markets to the east 25

or west, or in the case of the Słupsk and Pomeranian Spe- 15

cial Economic Zones, proximity to the Baltic Sea. 20 At the same time, regardless of their dominant industries 10 or geographic locations, all of Poland’s special economic 15 zones remain open to a wide range of investments. 5 10

Investment regulations vary in each SEZ but in general, 0 SOOIPP Source:

the investor needs to agree with the specific authorities on 5 Łodz Słupsk Legnica Suwałki Katowice how many jobs will be created through the investment and Wałbrzych PomeranianTarnobrzeg Warmia-Mazury Kamienna “Starachowice”Góra must later fulfill this agreement. The minimum value of an 0 Kostrzyn-Słubice SOOIPP Source: EURO-PARK MIELEC investment to be located in a special economic zone is usu- Kraków Technology Park Łodz Słupsk Legnica Suwałki ally €100,000. Regulations governing investment vary ac- Katowice Wałbrzych PomeranianTarnobrzeg cording to each SEZ and the size of the tax breaks available Kamienna “Starachowice”Góra Kostrzyn-Słubice Warmia-Mazury depends on the size of the investing entity and voivodship EURO-PARK MIELEC Kraków Technology Park where the subzone in question resides. For specific details on investment regulations, please see the zones’ individual websites, listed in this section. EURO-PARK MIELEC Special Economic Zone- The first economic zone to be created, the EURO-PARK MIELEC Special Economic Zone is located in both the southeast corner of Poland and in the northwest in Zachodniopomorskie voivodship, meaning it has access to both the German and Eastern European markets. The maximum amount of corporate tax exemption (based on either investment or job creation) is 50 percent of the total expenditures on new investments for large firms, 60 percent for medium-sized firms and 70 percent for small firms.

Year established: 1995 Contact: Total area: 1,495 ha (456 ha available) europark.arp.pl Dominant industries: automotive, aviation, ul. Partyzantów 25 metals, wood processing 39-300 Mielec Total number of new workplaces (in 2015): Tel. +48 17 788-7236 12,173 Fax +48 17 788-7769 Total value of investments (in 2015): PLN 5.3 [email protected] bln

Kamienna Góra Special Economic Zone for Medium Business The Kamienna Góra Special Economic Zone for Medium Business is not only aimed at attracting SMEs, offering particularly advantageous conditions for operating their business, but it is also open to larger investors. The zone is primarily located in the Lower Silesia voivodship, with a small presence in the Wielkopolskie voivodship. Its location near the Czech and German borders is a clear asset, as is the presence of well-developed communication and transportation infrastructure near its subzones.

Year established: 1997 Contact: Total area: 373.83 ha (150 ha available) ssemp.pl Dominant industries: automotive, metal, paper, 58-400 Kamienna Góra printing Tel. +48 75 645-2030 Total number of new workplaces (in 2015): Fax +48 75 744-2017 5,967 [email protected] Total value of investments (in 2015): PLN 2.17 bln INVESTING IN POLAND 2017 86 SPECIAL ECONOMIC ZONES

Katowice Special Economic Zone The Katowice Special Economic Zone describes itself as the leader of Poland’s SEZs. The 9 million people living within a 100 km radius of Kato- wice offer huge labor and consumer markets to investors, while the local area also offers some of the best transport links in Poland, including the A4 east-west and the A1 north-south highways. It is also located close to two international airports – Katowice-Pyrzowice and Kraków-Balice.

Year established: 1996 Contact: Total area: 2,347 ha (824 ha available) ksse.com.pl Dominant industries: automotive, construction, ul. Wojewódzka 42 glass, food processing, steel 40-026 Katowice Total number of new workplaces (in 2015): 44,554 Tel. +48 32 251-0736 Total value of investments (in 2015): PLN 23.3 bln Fax +48 32 251-3766 [email protected]

Kostrzyn-Słubice Special Economic Zone Ofﬁcials from the Kostrzyn-Słubice Special Economic Zone stress that the key advantages of investing there include its well-educated workforce and location close to the German border. The SEZ has at least one subzone within 90 km of Berlin. Low labor costs and high unemployment are other advantages for investors. Land in the SEZ is ready for investment, with full technical infrastructure already in place. According to ofﬁcials, certain subzones provide the possibility of a 100 percent exemption from local taxes in addition to income tax or employment cost reliefs.

Year established: 1997 Contact: Total area: 1.868 ha (839 ha available) kssse.pl Dominant industries: automotive, electronics, ul. Orła Białego 22 paper, metal and wood processing 66-470 Kostrzyn n. Odrą Total number of new workplaces (in 2015): Tel. +48 95 721-9800 18,679 Fax +48 95 752-4167 Total value of investments (in 2015): PLN 6.32 [email protected] bln Kraków Technology Park Special Economic Zone The Kraków Technology Park Special Economic Zone operates as both an SEZ and a technology park, supporting innovation and new technology, as well as bringing together scientists, entrepreneurs and investors. The city of Kraków provides it with a strong academic base, with several universities located in the vicinity of the technology park, from which qualiﬁed staff can be drawn. Ofﬁcials say public aid for investors in Kraków Technology Park is the highest in Poland. Year established: 1997 Contact: Total area: 707 ha (165 ha available) sse.krakow.pl Dominant industries: automotive, BPO, IT Al. Jana Pawła II 41 L Total number of new workplaces (in 2015): 31-864 Kraków 11,503 Tel. +48 12 640-1940 Total value of investments (in 2015): PLN 2.94 Fax +48 12 640-1945 bln [email protected]

Legnica Special Economic Zone The Legnica Special Economic Zone is situated in the southwestern part of Poland, in the Lower Silesia voivodship. It describes itself as a place where businesses can improve their competitiveness, technology and know-how. It also allows them to develop national and international business ties. Invest- ing in the Legnica SEZ also gives ﬁrms access to exemptions on income and property tax. The LSEZ describes itself as a high-quality investment area because it is prepared for business activity, equipped with technical infrastructure, sub- divided to suit investor requirements and located in well-connected areas, close to major roads such as the A4 and A18 highways.

Year established: 1997 Contact: Total area: 1,763 ha (1,442 ha available) lsse.eu Dominant industries: automotive ul. Św. Maksymiliana Kolbe 14 Total number of new workplaces (in 2015): 59-220 Legnica 12,353 Tel. +48 76 727-7470 Total value of investments (in 2015): PLN 7.59 bln Fax +48 76 727-7476 [email protected] INVESTING IN POLAND 2017 88 SPECIAL ECONOMIC ZONES

Łódź Special Economic Zone The Łodź Special Economic Zone describes itself as a conveniently located SEZ with access to a labor market of some 1.6 million people and a consumer market of 3 million. The city of Łódź itself is also an important academic center, producing students with high levels of vocational, secondary and higher education. It is also located in central Poland, providing access to much of the country via the A1 and A2 motorways which run through the region.

Year established: 1997 Contact: Total area: 1.339 ha (329 ha available) sse.lodz.pl Dominant industries: construction materials, ul. Tymienieckiego 22/24 packaging, pharmaceuticals, plastics, white goods 90-349 Łódź Total number of new workplaces (in 2015): Tel. +48 42 676-2753 25,958 Fax +48 42 676-2755 Total value of investments (in 2015): PLN 13.62 [email protected] bln

Pomeranian Special Economic Zone The Pomeranian Special Economic Zone occupies one of the most beneficial logistics positions in Poland, being located close to Germany and several major Baltic Sea ports. The SEZ cooperates with local authorities, as well as regional economic, scientific and cultural bodies to provide investors with fast, relevant and accurate information, officials say. The Pomeranian SEZ has delivered two major projects providing laboratory, office, production and warehouse space. The Gdańsk Science and Tech- nology Park was scheduled to be completed in 2013, while the Baltic New Technologies Port in Gdynia opened in January 2013. This space forms part of the SEZ.

Year established: 1997 Total area: 2.040 ha (673 ha available) Dominant industries: automotive, biopharmaceu- ticals, construction components, electronics, high- tech electronics assembly, machinery, packaging, paper production Total number of new workplaces (in 2015): 15,107 Total value of investments (in 2015): PLN 10.62 bln

Contact: strefa.gda.pl ul. Władysława IV 9 81-703 Sopot Tel. +48 58 555-9700 Fax +48 58 555-9711 [email protected] Słupsk Special Economic Zone Located in the north of Poland, the Słupsk Special Economic Zone’s proximity to the Baltic Sea provides investors with easy access to local ports, shipyards and shipping lanes. An additional bonus is that subzones in the Zachodniopomorskie voivodship border Germany. In addition to the standard investment incentives, the SEZ has subzones located in industrial parks and boasts partial or total property exemptions. Ofﬁcials from the SEZ also stress that average construction and labor costs in the region are relatively low.

Year established: 1997 Total area: 899 ha (605 ha available) Dominant industries: automotive, construction materials, ﬁsh and food processing, glass manufacturing, metals, plastic, transport and logistics, warehousing, wood processing Total number of new workplaces (in 2015): 3,063 Total value of investments (in 2015): PLN 1.49 bln

Contact: sse.slupsk.pl ul. Obrońców Wybrzeża 2 76-200 Słupsk Tel. +48 59 841-2892 Fax +48 59 841-3261 ofﬁce@ parr.slupsk.pl

“Starachowice” Special Economic Zone Spread across ﬁve different voivodships, the “Starachowice” Special Economic Zone offers investors perhaps the most variety among SEZs in terms of location. Moreover it was ranked as one of the top free zones of the future, according to fDi Magazine’s 2012/2013 report on global economic zones. The regions’ industrial traditions, fully developed technical infrastructure and the generally low labor costs are added advantages for investing in this SEZ.

Year established: 1997 Contact: Total area: 644 ha (207 ha available) sse.com.pl Dominant industries: automotive, ceramics, ul. Radomska 29 chemicals and construction chemicals, construc- 27-200 Starachowice tion materials, metal and machinery, printing Tel. +48 41 275-4101 industry Fax +48 41 275-4102 Total number of new workplaces (in 2015): 4,056 [email protected] Total value of investments (in 2015): PLN 2.13 bln INVESTING IN POLAND 2017 90 SPECIAL ECONOMIC ZONES

Suwałki Special Economic Zone With locations in the Podlaskie, Warmińsko-Mazurskie and Mazowieckie voivodships, the Suwałki Special Economic Zone is particularly well-suited for those interested in investing in the Belarusian, Russian or Lithuanian markets. To date, firms in the zone have created almost 6,000 workplaces and invested almost zł.1.8 billion in new production plants. Northeastern Poland’s low labor costs and the availability of qualified workers coupled with a helpful local government providing “competitive consulting” add to the incentives for investors. Located in one of Europe’s cleanest environments and within close proximity to three major scientific- technology parks, the SEZ also provides investors with significant tax exemptions.

Year established: 1996 Contact: Total area: 635 ha (302 ha available) ssse.com.pl Dominant industries: construction materials, ul. Noniewicza 49 clothing, electronics, food processing, machinery, 16-400 Suwałki metals, plastic, precision mechanics, printing, Tel. +48 87 565-2217 wood processing Fax +48 87 565-2449 Total number of new workplaces (in 2015): 6,483 [email protected] Total value of investments (in 2015): PLN 2.07 bln

Tarnobrzeg Special Economic Zone “EURO-PARK WISŁOSAN” “EURO-PARK WISŁOSAN” is situated mainly in eastern Poland, offering ample opportunities for investors interested in Belarus, Ukraine, Russia, as well as Poland’s own fast-developing eastern markets. At the same time, the zone offers land in the Lower Silesia voivodship, which sits on the Czech and German borders and is home to Wrocław, a major foreign investment hub. This SEZ provides investors with public aid in the form of tax exemptions covering up to 70 percent of total investment outlays, while it also offers prices which are one of the lowest in Poland, according to ofﬁcials.

Year established: 1997 Contact: Total area: 1,743 ha (474 ha available) tsse.arp.pl Dominant industries: automotive, aluminum, ul. Zakładowa 30 construction, electronics, metal, paper and timber, 39-400 Tarnobrzeg printing, chemicals Tel. +48 15 822-9999 Total number of new workplaces (in 2015): Fax +48 15 823-4708 19,442 [email protected] Total value of investments (in 2015): PLN 8.08 bln Wałbrzych Special Economic Zone “INVEST-PARK” Located mainly in the western part of Poland, Wałbrzych SEZ “INVEST-PARK” con- sists of 41 subzones in the Lower Silesia, as well as in Wielkopolskie, Opolskie and Lubuskie voivodships. It provides investors with easy access to the Austrian, Czech, German and Slovak markets. The A4 highway and airports in Wrocław and Poznań offer a wide range of domestic and international connections. Tax exemptions of up to 70 percent on labor costs are available to investors.

Year established: 1997 Total area: 2.921 ha (1,280 ha available) Dominant industries: automotive, electronics, engineering, food, white goods Total number of new workplaces (in 2015): 36,419 Total value of investments (in 2015): PLN 21.73 bln

Contact: invest-park.com.pl ul. Uczniowska 16 58-306 Wałbrzych Tel. +48 664 91 64 Fax +48 664 91 62 [email protected]

Warmia-Mazury Special Economic Zone

The Warmia-Mazury SEZ offers some of the highest levels of aid in Poland, according to ofﬁcials. Located in the Mazowieckie and Warmińsko-Mazurskie voivodships, it provides easy access to the Baltic Sea, as well as to Lithuania and the markets of Eastern Europe. As well as attracting major ﬁrms such as Michelin and LG, many small and medium-sized companies from the furniture and construction sectors have also invested in Warmia-Mazury SEZ.

Year established: 1997 Contact: Total area: 1,057 ha (289 ha available) wmsse.com.pl Dominant industries: construction, furniture, ul. Kasprowicza 1 electronics, tire manufacturing, wood processing 10-219 Olsztyn Total number of new workplaces (in 2015): 9,465 Tel. +48 89 535-0241 Total value of investments (in 2015): PLN 4.22 Fax +48 89 535-9002 bln [email protected] INVESTING IN POLAND 2017 92 SPECIAL ECONOMIC ZONES TECHNOLOGY PARKS echnology parks are the most developed In practice, parks are displaying a large diversity centers of innovation and entrepreneurship, in management and the range of services offered. Twhose main task is to support rising technol- This is mainly due to the environment in which they ogy firms by providing technical infrastructure as function. The regional economic factors, industrial well as giving substantive support. traditions and the cultural entrepreneurship conditions exert significant influence on the manner and What differentiates technology parks from one range of the parks’ functioning. Many parks offer a another is first and foremost the target group for couple or more specializations in the fields of: IT, offered services. The particular clients’ character- energy-efficiency, biotechnology. istic traits also outline a specific range of the offer. The main services offered to clients of technology All Polish technology parks lead stable cooperation parks include: operational space suited to the needs with regional academic centers. Many universities of business and research enterprises;business and team up with them on a wide array of research administrative services; business support services, projects. Among other things, many technology such as consulting in all matters concerning finan- park firms have received national and international cial, marketing, law, patent office, organizational and recognition in contests promoting the most active technological issues, services supporting innova- and most innovative companies. tion, services helping secure external financing for companies.

AEROPOLIS Częstochowa Industry Ełk Science and Podkarpackie Science and Technology Park Technology Park and Technology Park Dominant sectors: WND Dominant sectors: Dominant sectors: Contact: production production/IT czpp.com.pl Contact: Contact: Al. Najświętszej Maryi technopark.elk.pl aeropolis.com.pl Panny 24/8, ul.Piłsudskiego 5, ul. Szopena 51, 42-202 Częstochowa 19-300 Ełk 35-959 Rzeszów Tel. +48 34 360-5688 Tel. +48 87 732-6302 Tel. +48 17 867-6210 EkoPark Technology Euro-Centrum Science Białystok Science and Industry Park and Technology Park and Technology Park in Piekary Śląskie Dominant sectors: WND Dominant sectors: Dominant sectors: Contact: IT/medicine production euro-centrum.com.pl Contact: Contact: ul. Ligocka 103 bpnt.bialystok.pl ekopark.piekary.pl 40-568 ul. Żurawia 71, ul. W.Roździeńskiego 38, Katowice 15-540 Białystok 41-949 Piekary Śląskie Tel. 32 205-0092 Tel. +48 85 733-0052 Tel. +48 32 289-0484 Gdańsk Science Bydgoszcz Industry Elbląg Technology Park and Technology Park and Technology Park Dominant sectors: produc- Dominant sectors: Dominant sectors: tion/material services IT/ medical production production/IT Contact: and services Contact: ept.umelblag.pl Contact: bppt.pl ul. Sulimy 1, gpnt.pl ul.Bogdana 82-300 Elbląg ul. Trzy Lipy 3, Raczkowskiego 11, Tel. +48 55 239-3467 80-172 Gdańsk 85-862, Bydgoszcz Tel. +48 58 739-6114 Tel. +48 52 365-3310 Interior Technology Lower Silesian Park of Nobel Tower Center of Park Innovation and Science Advanced Technologies Dominant sectors: Dominant sectors: Dominant sectors: production, IT, eko-friendly production/IT medicine technology Contact: Contact: Contact: dpin.pl cztpoznan.pl www.parkinterior.pl ul. E.Kwiatkowskiego 4 ul. Piątkowska 161 ul. Inżynierska 8 52-326 Wrocław 60-650, Poznań, 67-100 Nowa Sól Tel. +48 71 725-4041 Tel. +48 61 842-5425 Tel. +48 68 411-4400 Lower Silesian Olsztyn Science KGHM LETIA Legnica Technology Park and Technology Park Technology Park SA Dominant sectors: Dominant sectors: WND Dominant sectors: mixed Contact: non-material services/ Contact: parktechnologiczny.olsztyn. production t-park.pl eu Contact: ul. Szczawieńska 2 ul. Władysława letia.pl 58-310 Szczawno-Zdrój Trylińskiego 2 ul. Rycerska 24, Tel. +48 74 648-0447 10-683 Olsztyn 59-220 Legnica Tel. +48 89 612-0500 Tel. +48 76 747-5440 Lublin Science and Technology Park Opole Science Kielce Technology Park Dominant sectors: WND and Technology Park Dominant sectors: Contact: Dominant sectors: WND production/IT lpnt.pl Contact: Contact: ul. Dobrzańskiego 3, opnt.pl technopark.kielce.pl 20-262 Lublin ul. Mikołajczyka 5 ul. Olszewskiego 6 Tel. +48 81 534-6100 45-271 Opole 25-663 Kielce Tel. +48 607 080 129 Tel. +48 41 278-7200 Łódź Regional Science and Technology Park Płock Industry and Kraków Technology Dominant sectors: Technology Park SA Park IT/research and develop- Dominant sectors: Dominant sectors: IT ment production/IT Contact: Contact: Contact: kpt.krakow.pl technopark.lodz.pl www.pppt.pl ul. Podole 60, ul. Dubois 114/118 ul. Zglenickiego 42 30-394 Kraków 93-465 Łódź 09-411 Płock Tel. +48 12 640-1940 Tel. +48 42 684-4444 Tel. +48 24 364-0350

MMC Brainville Poland-East Science Life Science Park Technology Park Dominant sectors: and Technology Park Dominant sectors: WND medical and pharmaceuti- in Suwałki Contact: cal production/research Dominant sectors: IT/ brainville.pl Contact: material services ul. Myśliwska 2 www.jci.pl Contact: 33-300 Nowy Sącz ul. Bobrzyńskiego 14 park.suwalki.pl Tel. +48 18 449-9463 30-348 Kraków ul. Innowacyjna 1 Tel. +48 51 308-6206 16-400 Suwałki Tel. +48 87 562-8477 INVESTING IN POLAND 2017 94 TECHNOLOGY PARKS

Pomerania Science Science and Technol- TECHNOPARK and Technology Park ogy Park - University GLIWICE Science Dominant sectors: IT/bio- of Zielona Góra and Technology Park technology/creative Dominant sectors: IT/re- Dominant sectors: IT/re- industry seacrh and development search and development Contact: Contact: Contact: ppnt.pl www.pnt.uz.zgora.pl www.technopark.gliwice.pl Al. Zwycięstwa 96/98 ul. Syrkiewicza 6 ul. Konarskiego 18C 81-451 Gdynia 68-002 Nowy Kisielin 44-100 Gliwice Tel. +48 58 735-1140 Tel. +48 68 328-2111 Tel. +48 32 335-8500

Poznań Science Silesian Industry Toruń Technology and Technology Park and Technology Park Park – Adam Mickiewicz Dominant sectors: Dominant sectors: IT, University Foundation IT/production electronic sector Dominant sectors: IT/ Contact: Contact: research and development sppt.pl www.technopark.org.pl Contact: ul. Szyb Walentyny 26 ul. Włocławska 167 ppnt.poznan.pl 41-700 Ruda Śląska 87-100 Toruń ul. Rubież 46 Tel. +48 32 789-5101 Tel. +48 56 621-0421 61-612 Poznań Tel. +48 61 827-9742 Sosnowiec Science Wrocław Technology and Technology Park Park Poznań Technology Dominant sectors: Dominant sectors: IT/re- and Industry Park produkcja/ICT search and development Dominant sectors: IT/ mixed Contact: Contact: Contact: spnt.sosnowiec.pl technologpark.pl pptp.pl ul. Wojska Polskiego 8-8A ul. Muchoborska 18 ul. 28 Czerwca 1956 nr 406 41-208 Sosnowiec 54-424 Wrocław 61-441 Poznań Tel. +48 32 778-9100 Tel. +48 71 798-5800 Tel. +48 61 673-4543 Szczecin Science Puławy Science and Technology Park and Technology Park Dominant sectors: IT Dominant sectors: Contact: production/research www.spnt.pl and development ul. Niemierzyńska 17A Contact: 71-412 Szczecin ppnt.pulawy.pl Tel. +48 91 852-2911 Mościckiego 1 24-100 Puławy Technology Park Tel. +48 81 464-6316 Dominant sectors: WND Contact: pt.koszalin.pl ul. Partyzanów 17 75-411 Koszalin Tel. +48 94 316-7910 PARTNERS STRATEGIC PARTNERS

The Polish Information and We help in finding the appropriate partners and sup- Foreign Investment Agency pliers, and assist in identifying new locations. PAIiIZ (PAIiIZ), helps investors to also supports Polish companies in their expansion on enter the Polish market and find foreign markets. the best ways to utilize the pos- PAIiIZ’s mission is also to create a positive image of sibilities available to them. We Poland across the world, promoting Polish goods and guide investors through all the services. essential administrative and legal procedures that are involved in a project; we also Contact: support firms that are already active in Poland. We paiz.gov.pl provide rapid access to complex information relating ul. Bagatela 12, 00-585 Warsaw to legal and business matters regarding investments. @ [email protected]

EY is a global leader in assur- Litigation; and Financial Solutions. ance, tax, transaction and advisory The Grants and Incentives Advisory Services Depart- services. The insight and qual- ment, co-operating with the Global Incentive Advisor of ity services we deliver help build EY, advises which EU funds are available and helps in trust and confidence in the capital the process of applying for financial support; Supports markets and in economies the entrepreneurs in negotiations of terms and conditions world over. We develop outstand- for public funds granted by institutions of central and ing leaders who work to deliver on self-government administration. our promises to all of our stake- holders. In doing so, we play a critical role in building Contact: a better working world for our employees, for our ey.com/pl clients and for our communities. Our tax advisors help Rondo ONZ 1 clients to minimize tax burdens while observing all legal 00-124 Warsaw regulations. We offer the following services: Interna- %+ 48 22 557-7000 tional tax; VAT, customs and excise; Corporate profits @ [email protected] tax; Personal income tax and payroll – Human Capital; Social security; Investment strategies; Transfer pricing;

Polish Confederation Lewi- Lewiatan’s aim is to support companies’ development. atan is the most inﬂuential Lewiatan strives for stable economic growth, better Polish business organization legislation, healthy competition, more jobs and rein- representing employers’ interests forced social capital. It associates 4,100 companies, in Poland and the EU. It is the which employ 1,050,000 workers. only Polish employers’ organization with an ofﬁce in Brussels, Contact: an has been in operation since konfederacjalewiatan.pl 2001. Lewiatan is also a mem- ul. Zbyszka Cybulskiego 3 ber of Businesseurope, an organization representing 00-727 Warsaw European employers’ interests (41 business organiza- % +48 22 559-9900 tions from 35 countries, associating companies which @ [email protected] employ 120 million workers).

The Polish Chamber of Com- ﬁnding business partners in domestically and abroad. merce of Importers, Export- The territorial coverage of the Chamber’s operations ers and Cooperation has been expands to all continents. The Chamber provides representing the interest of Pol- comprehensive information on the availability and ish and foreign companies from utilization of European Union funds for entrepre- various industries for more than neurs. 20 years. The Chamber supports the development of its members Contact: by providing information, consultancy and training pcc.org.pl concerning all aspects of business activity. Special Plac Wolnosci 18 focus is concentrated on support of the growth of 61-739 Poznań international cooperation, export and import, as- % +48 61 851-7848 sistance to domestic and foreign investors as well as @ [email protected] INVESTING IN POLAND 2017 96 PARTNERS

Polish Presidents and Prime Ministers to date have consulted with BCC members. BCC is an international organization, a member of the European Economic Business Centre Club was founded at the end of the 20th century, in 1991. BCC is a elite business and Social Committee, and an opinion-making insti- club and the biggest private employer organization in tution of the European Committee in Brussels. Poland. BCC affiliates over 2,000 members including entrepreneurs and companies. BCC members, Contact: representing almost 250 towns and cities, assemble bcc.org.pl in 23 regional lodges all over the country. BCC Plac Żelaznej Bramy 10, gathers representatives of all business branches, 00-136 Warsaw international corporations, financial and insurance %+48 22 625-3037 institutions, telecoms, the biggest producers in @ [email protected] Poland, universities, publishing houses and reputable law firms. BCC also affiliates lawyers, journalists, scientists, physicians, servicemen and students. All

events and accompanying German and Polish investors on visits to Poland/Germany.

Contact: ahk.pl The German-Polish Chamber of Commerce, ul. Miodowa 14, 00-246 Warszawa founded in 1995 and now the biggest Chamber of % +48 22 531-0500 Commerce in Poland (1,000 member companies), 6 +48 22 531-0600 supports bilateral business ties and provides a range @ [email protected] of services for German and Polish companies. It’s Regional Ofﬁces: Wrocław: [email protected], ﬁrst task is to foster the bilateral business partner- Poznań: [email protected], ships of both countries, in particular: to inform po- Katowice: [email protected] tential investors about opportunities in the neighboring country by publishing key facts, attending trade fairs, organizing more than 200 annual networking

The British Polish pany employing a few people, if you’re doing business Chamber of Com- between Poland and the UK, we want to speak with merce has been net- you. In recent years, we have been recognized as the working and building best British Chamber in continental Europe no fewer business relationships than four times by COBCOE, a network of over 10,000 in Poland since the businesses in over 30 European countries. Joining early days of the mar- us enables you to network and grow your business ket economy. Today in Poland, one of Europe’s highest growth potential we reach out across economies. Poland and the UK promoting the best of Contact: each country. Our executive team works with you to www.bpcc.org.pl support your business growth. Partnership and net- ul. Zielna 37, 00-108 Warsaw working is at the very heart of what we do. Whether @ [email protected] you are a large global corporation, or a small com- The Italian Cham- Poznań and Wrocław. ber of Commerce and Industry in Contact: Poland (CCIIP) is an ul. Pańska 98/9 independent associa- 00-837 Warsaw tion of employers operating in the Polish market. The % +48 22 621-9959 Chamber, founded in 1996, represents Italian investors @ [email protected] in Poland. However, membership is also open to Polish Katowice capital companies. ul. Mickiewicza 29 On January 27, 2015, by Decree of the Italian Minis- 40-085 Katowice ter of Economic Development, our association was +48 32 207-2316 recognized as an ofﬁcial Italian Chamber of Commerce % @ [email protected] abroad. Our objectives are to promote the Italian system in Poland, support the economic growth of associated companies and represent our members in front of local Wrocław authorities, Polish and Italian institutions and associa- ul. Szewska 5 tions. 50-053 Wrocław Our Chamber is headquartered in Warsaw with a @ [email protected] branch in Katowice and it is ﬁnalizing a partnership for

over 800 innovation and entrepreneurship centers, including a large number of parks and technology incubators, technology transfer centers, business incubators, loan funds, and training and consultancy centers. The Association and its members participate in the functioning of many international organizations The Polish Business and Innovation Centers supporting the development of entrepreneurship and Association in Poland (PBICA) was established institutions connected with business. in 1992. At PBICA there are over 150 individual members and supporting members, which represent Contact: innovation and entrepreneurship centers as well as sooipp.org.pl other institutions operating in the ﬁeld of entrepre- ul. Rubież 46, 6–612 Poznań neurship promotion and regional development. The % +48 22 465-8416 Association functions as a coordinating and inspiring %+48 503-075-167 network for people and organizations supporting en- @ [email protected] trepreneurship, innovation and regional development. The Association is in permanent working contact with

The French-Pol- Last year, CCIFP organized around 100 events such ish Chamber of as business mixers, conferences, seminars, meet- Commerce and ings with inﬂuential politicians and economists, in Industry (CCIFP) total gathering nearly 6,000 participants. is an employers’ association bring- Contact: ing together over 460 French and Polish ﬁrms. For ccifp.pl 22 years CCIFP has been working for the interests of ul. Widok 8, 00-023 Warsaw Polish and French investors by acting as a platform % +48 22 696-7580 for networking and for the exchange of business 6 +48 22 696-7590 experiences and best practices between companies. @ [email protected] INVESTING IN POLAND 2017 98 PARTNERS PARTNERS INDUSTRY PARTNERS

S&T Services Pol- By choosing S&T Services Polska as a business part- ska Sp. z o. o. offers ner, our customers can be certain of having selected services in consulting, the most adequate technology and producer, together designing, and imple- with access to a broad range of products designed by menting IT systems, S&T and its technology partners. outsourcing and S&T Services Polska is a group company of S&T AG, 24/7/365 support for customers in the following sec- with headquarters in Linz. tors: public administration, banking and insurance, distribution, education, retail, public services, indus- Contact: try, and scientiﬁc research units. In each of these www.snt.pl areas, S&T provides teams of highly qualiﬁed experts ul. Postępu 21 D, 02-676 Warsaw at the stage of preparing offers and suggesting solu- % +48 22 535-9500 tions and producers, as well as at the stage of solu- 6 +48 22 535-9597 tion implementation and its later maintenance. @ [email protected]

Tacit Investment is an category of apartment buildings in Poland. experienced investor with a Tacit Investment is also the owner of Park Lane, a strong capital position, which unique, cozy residence building for the most de- has been operating on the real manding customers, situated in a prestigious loca- estate market in Poland for tion in the immediate vicinity of Łazienki Park on ul. many years. It is a pioneer on Podchorążych. It is a detached eight-storey building the luxury real estate market in with an underground level, with twelve spacious, Poland. By creating new prod- luxury apartments finished to uct categories and implement- the highest standards. Tacit Investment’s projects ing the highest quality projects include other well-known buildings in Warsaw, such in its class, it has set the tone for discussions about as the Rialto Hotel, the Sinnet exclusive sports and the future of the top-class real estate market in recreation club, the Sound & More recording studio Poland. Tacit Investment’s flagship project is the and an office building on ul. Karowa. apartment building Cosmopolitan Twarda 4, which was completed in 2014, erected in the heart of the Contact: capital, adjacent to the peaceful Grzybowski Square. tacit.com.pl This 44-storey, fully-glazed apartment building brings ul. Twarda 4 an element of modernity to a historic space that is 00-105 Warsaw famous for such contrast. It is the first investment of % +48 22 213-5000 this type in Warsaw, thus creating a completely new

Grupa PZU is the leader in sonal insurance products on offer. PZU experts also the insurance market in Po- run pension funds, investment funds and savings land and one of the largest programs for companies and individual clients. and fastest-growing ﬁnancial institutions in Central and Contact: Eastern Europe. Grupa PZU www.pzu.pl currently protects more than AL. Jana Pawła II 24, 00-133 Warsaw 16 million clients in Poland. % +48 22 582-2000 The company has almost 300 @ [email protected] general, life and other per- INDUSTRIAL & LOGISTICS AGENCY CUSHMAN & WAKEFIELD

If you are looking for production, logistics or warehouse space in Poland contact us: