2012 - British Polish Chamber of Commerce

November 2012
vol. 4 no. 7(31)
BPO sector
employment pushes
aside mighty Coal
Poland’s business services sector,
growing quickly, will eclipse
employment numbers in the coal
sector by 2013.
EU Budget:
Equities:
Legal:
November
battle
looms
Herkules leads
Top 10,
up 245%
Belgian fights
to recover
142,000 Euro
Table of Contents
November 2012
vol. 4 no. 7(31)
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Cover Story
4
BPO sector employment pushes aside mighty Coal
(4) VII Polish Outsourcing Forum; (6) International Outsourcing Forum, Sopot;
(8) ABSL Conference, Sopot
EU Budget
10
Push for EU budget deal ahead of November summit
Equities
11
Poland’s Exchange-traded funds (ETFs) give foreign
investors easy access to Polish market
Entrepreneurs
12
Sir Branson inspires Warsaw
Chopin Airport City
13
Food Exports
14
SIAL Paris Food Expo pulls in 120,000 visitors
Real Estae
16
Poland makes a strong showing at Expo Real in
Munich
Legal
18
Belgian fights to recover swindled 142,000 Euro
Energy
19
The Road to Nowhere: the Government’s
Proposed Law on Biogas
20
Energy sectors’ overview
22
Solar boom coming to Poland
FDI News
(24) Chinese–Polish economic cooperation; (25) In Brief
Politics
29
Excerpts from Address of Prime Minister Donald
Tusk delivered at the Sejm on 12 October 2012
City Investment News
(32) Kraków; (33) Szczecin; (33) Katowice; (34) Łódź; (35) Poznań; (36) Wrocław;
(36) Trójmiasto; (37) Lublin
Chamber of Commerce News
(38) United States; (38) Australia; (38) Holland; (39) Germany; (39) Switzerland;
(40) Czech Republic; (40) Japan; (40) Belgium; (40) United Kingdom; (41) Ireland;
(41) Portugal; (41) Canada; (42) India; (42)Spain
Events
Details at
subs@bizpoland.pl
or call +48-22-831-7062
(43) Polish entrepreneurs get together in Scotland again; (44) Foundation for
Corporate Social Responsibility CEO Breakfast; Food Producers Congress – Opole;
(45) Fashion Week Łódź; (46) BPCC Annual Ball; (47) Berlin Aviation Fair; Warsaw
Olympic Nights Gala; Macaroni Tomato Warszawa opens mens clothing shop
www.bizpoland.pl
Cover Story
BPO sector employment
pushes aside mighty Coal
Poland’s business services sector, growing quickly,
will eclipse employment numbers in the coal sector by 2013,
with unexpected benefits.
It wasn’t planned this way. And almost no
one saw it coming.
Yet growth in the business services sector (alternatively referred to as BPO or
outsourcing, and including shared service
centers) has outstripped even the most optimistic forecasts. With total employment
of less than 15,000 in 2004, when Poland
joined the European Union, the sector now
employs nearly 100,000 people – and is set
to displace the mighty, politically-powerful, and union-infested coal mining industry, which is expected to shrink to 95,000
jobs in 2013.
Indeed, the world’s crises seem to be a
boon to Poland’s outsourcing businesses.
And as the world takes notice of
Poland’s potential and performance,
the quality of jobs are moving upscale,
and the distribution of jobs is spread-
38 new service centres and over 20 new
investors came to Poland in 2011, with
American investors leading the pack.
Recent investors include Qatar Airways
with a new center in Wroclaw, and Bayer
with a new center in Gdansk. Both the cities of Katowice and Szczecin – coy about
naming names – have alluded to landing
major new service centers in the coming
months.
Poland has an ability to gain market share
as the EU crisis rumbles on
ing throughout the country, particularly
north and east.
According to research by ABSL
(Association of Business Services Leaders),
“The global crisis has worked to our
benefit by giving us the prospect of further growth in our industry and the
creation of new jobs in Poland”, said
VII Polish Outsourcing Forum
4
Roadshow’s annual Outsourcing Forum,
held in Warsaw, was held together with major partners ASPIRE and PwC, under the
patronage of Deputy Prime Minister and
Minister of Economy Waldemar Pawlak,
Marshal Adam Struzik Mazowiecki,
and under the patronage of PAIiIZ, the
National Chamber of Commerce and PARP.
This year’s guests of honor were:
Dariusz Rosati - Member of Parliament,
former Minister of Foreign Affairs, Janusz
Steinhoff - former Deputy Prime Minister
and former Minister of Economy, and
Richard Patru - Partner, PwC. All three
guests emphasized Poland’s place in the
global economy and how it affects the perception of further development of Poland’s
outsourcing industry.
Workshops addressed issues such as
Shared services and outsourcing for Polish
firms, public sector outsourcing, and
business models of Indians expanding in
Poland. Other issues raised including appropriate education of students and collaboration with universities, and building
■
greater industry awareness.
November 2012
www.bizpoland.pl
Marek Grodzinski, Vice-President BPO,
Capgemini Poland.
While the “American” crisis rattled the
world in 2008-2009, the “European” crisis is now centre-stage, unsettling capital
markets and threatening the very existence of the European Union. Yet as
Poland’s outsourcing sector benefited
from the American crisis by boosting
its employment numbers, it looks set to
benefit from the European crisis as well.
Certainly not immune to the troubles of
its western European neighbors and major
trading partners, Poland’s exclusion from
the Eurozone - once a source of shame - has
now become a source of safety.
American firms were forefront in the
period 2009-2011 in their quest to reduce
costs. Scouring the globe, many chose to
outsource jobs to traditional locations such
as India. Yet those with a major European
presence have found that Poland’s proximity to western Europe –geographically and
culturally – provides an advantage that
non-European locations can not provide.
Poland has reached a point where it is
able to offer both competitive labor rates
and highly-skilled staff capable of carrying
out more complex services.
“Major interest in Poland is now coming not just from the Global 500, but the
Cover Story
Credit Suisse to move more IT jobs to Poland
Credit Suisse announced in October that
it will cut an extra $1.1 billion of costs,
including axing more jobs, after its thirdquarter net profit more than halved due
to losses on the value of its own debt.
Volatile financial markets, a dearth of
deals and tighter capital rules in the wake
of the 2007-9 financial crisis are forcing
investment banks across the world to
slash costs, and the euro zone debt crisis
has pushed many to cut back even more.
Profits from Credit Suisse’s investment bank rose, helped by a pick up in
bond trading that has already been noted
by U.S. investment banks and is expected
to boost European peers.
However, that was offset by weakness
in Credit Suisse’s private banking business, which caters for wealthy clients.
Credit Suisse said it was targeting 4
Global 10,000”, said Andrew Hallam,
founder of ASPIRE, the association of outsourcing/shared services investors, based
in Krakow. He said that while the growth
in recent years has been spectacular, the
best is yet to come.
billion Swiss francs in cost savings by
2015, up from a goal of 3 billion francs it
set in July and an earlier figure of 2 billion.
The bank, which is already cutting
3,500 staff or 7 percent of its workforce,
said job losses would be inevitable to
achieve the extra savings, but did not say
how many more staff would go.
It has already combined the separate
operating platforms of its two main units
- private banking and investment banking - and will increasingly shift information technology jobs to Poland and India
as part of its cost saving drive, finance
chief David Mathers told journalists.
Crosstown rival UBS also announced
massive job cuts in October, to protect
profits as it withdraws from riskier investment banking areas which soak up
■
large sums of capital.
A simple sign tells the story of how
hot the sector is: conferences.
In
September, both ABSL and the ASPIREbacked Roadshow held major BPO/SSC
continued on page 6
5
2012 November
www.bizpoland.pl
Cover Story
continued from page 5
conferences just one week apart. IOF,
the London-based media group, held its
annual outsourcing conference in Sopot
in October. The City of Katowice weeks
ago organized an outsourcing conference.
SSON held a conference in Stockholm in
mid-October focused on the sector, including opportunities in central Europe. And
Shared Services Week will be held in Berlin
in mid-November, with a strong focus on
business services in Poland.
“The crisis will probably bring new
business to outsourcing companies,” said
Marcin Tchórzewski, vice president for
Poland of US financial services provider
State Street, as western European firms
look to reduce employment costs further.
The recent massive layoffs announced by
UBS in its western European offices will
surely mean more UBS jobs in Poland.
Pressure valve of Eastern Poland
As the traditionally-strong outsourcing cities such as Krakow and Wroclaw
continue to attract new investment and
higher value-added jobs, such as financial analysis and mobile technology R&D,
smaller Polish cities are keenly aware of
the financial and political advantages of
landing new business services investors.
Comparable to a pressure valve, cities like
Kielce and Lublin are keen to attract jobs
that cities like Krakow might now eschew,
such as call centres and rote business processes. And Eastern Poland, a fabricated
construction of Poland’s poorest five
city’s brand and trumpet the potential of
their young, well-educated workforce.
Different models and shifting sands
Firms such as EDF, with a strong presence
in Poland with multiple energy-related
subsidiaries, have chosen to outsource
“with a twist”. Instead of the traditional
establishment of a shared-services centre
HQs are no longer asking if it can be
done in Poland, but rather they are asking
their managers why it can’t be done in Poland”,
said one shared services executive
voivods, is tapping into substantial subsidies from the European Union, whose
Regional Development Programme aims
to narrow the gap between less-developed
regions and their wealthier neighbors.
Mayors of cities in eastern Poland such
as Kielce, Bialystok, Rzeszow, Lublin and
Olsztyn are aware of the need to support
speculative office development, build the
serving western Europe or the world, EDF
has set up a shared services centre for only
its Polish subsidiaries, deftly dodging the
potential political fallout of “outsourcing”
jobs from France. The emphasis in this
model is on operating efficiencies, not labor cost savings.
Polish firms are also increasingly aware
of the advantages and efficiencies to be
International Outsourcing Forum,
Sopot
6
Arena International, the Londonbased media group, organized its annual
European outsourcing conference in Sopot,
which was financially supported by the
City of Gdansk and InvestGDA. Running
over 3 days, the program combined a series
of master classes, keynote presentations,
panels sessions and roundtables delivered
by senior executives from the industry’s
most active outsourcers, industry associations, consultants and solution providers,
covering all aspects of outsourcing and location selection.
The aim of this combined format was
to provide senior executives with everything they need to know about current
BPO, ITeS and location options and strategies. Participants discussed best practices,
networked with peers facing similar challenges and gained insight into both established and emerging outsourcing suppliers
and location alternatives from around the
■
world.
November 2012
www.bizpoland.pl
gained through consolidation and bundling of jobs in one location. While the labor cost advantages may be minor, the operating efficiencies and reduction of office
costs can be significant value drivers. The
recent opening in Pila, a relatively small
town north of Poznan, of an outsourcing
centre for a Polish energy utility is another
sign of the growing awareness of the advantages of outsourcing for Polish firms.
And much like Poland is “east” for western Europe, east for Polish firms is eastern
Poland and Ukraine, where wages are substantially lower than in major Polish cities.
Accounting Plaza, recently acquired, last
year set up operations in the Ukrainian
city of Lwow, which is attractive to Polish
firms since a large percentage of the population speaks Polish. And Impel, the
Wroclaw-based outsourcing firm, recently
announced expansion plans for Ukraine
and Russia.
Public-sector outsourcing is virtually
non-existent, and presents another opportunity for growth, as state-owned enterprises are squeezed between budgetary
constraints and a growing awareness that
they must improve their return on assets.
While the US and UK governments are a
major force in outsourcing (everything
from real estate management, cleaning,
Cover Story
Qatar Airways to open customer care centre in Poland
Qatar Airways said it is planning to open a
new multi-lingual customer care centre in
Poland as the airline continues to open new
routes to Europe.
The centre will be based in the Polish
city of Wroclaw and will start operating
from early next year, the airline said in a
statement.
The announcement comes two months
ahead of the airline’s new route to the
Polish capital Warsaw, set to begin from
December 5 with four-flights-a-week direct
from the carrier’s Doha hub.
The contact centre will initially be staffed
by 100 employees, the statement added.
Qatar Airways CEO Akbar Al Baker said:
“As a five-star airline we are committed to
providing our customers with a seamless
travel experience not only in the air, but at
every touch point.
“Following a rigorous search for a suitable
document management and storage, finance and accounting, and HR/personnel),
the Polish government and its various ministries and departments are just now waking from a long slumber and being forced
to consider outsourcing more services.
location, we found the city of Wroclaw to be
the most suited for our European contact
centre in providing excellent customer service solutions to our customers in the region.
“With our move to Wroclaw, Qatar
Airways is making a major investment in
the local economy and the creation of jobs
which will provide Polish citizens with an
exciting opportunity to work for a worldclass airline.
“As we continue to grow as a company,
so will our new customer contact centre
creating even more opportunities,” added
Al Baker.
Wroclaw Mayor Rafal Dutkiewicz said:
“This is great news for the people and city
of Wroclaw and we assure Qatar Airways
of providing our full support to make this
a highly successful business venture for a
world-class airline that will soon be flying
■
to Poland.”
Indians coming
Another emerging player in Poland’s outsourcing sector are the Indians. While the
Americans’ expansion has been largely
continued on page 8
7
2012 November
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Cover Story
continued from page 7
the Indians who are working and traveling
frequently to Poland.
driven by cost-reduction and smoother
interaction with the European market,
Indian firms are coming from the other
direction – being driven by their clients
to offer services for their European operations. Wipro, a pioneer in the Tricity market, has blazed the trail for Indian firms,
having set up operations several years
ago with a focus on IT. Gdansk recently
landed WNS, a large Indian client which
has plans to set up a F&A centre serving
western Europe in multiple European
languages, a task nearly impossible to do
from Bangalore.
“Many more Indian firms are looking at
setting up operations in Poland”, said J.J.
Singh, founder of the Indo-Polish Chamber
of Commerce, which organizes bilateral
trade conferences and events between
Poland and India each year.
Another advantage for Poland, according
to Singh, is that Poles do not need visas to
travel around the EU, they are in the same
time-zone as western Europe, and share legal, linguistic and cultural characteristics
with their customers. Indians, for example, still need visas to enter the Schengen
zone, an annoyance that continues to rile
From single services to
multi-functional
As Poland’s outsourcing sector grows up
and matures, global firms are increasingly
using Poland as a base for multi-functional
business services. Instead of only providing basic accounting services, for examples,
firms are shifting more work to Poland, including HR/compliance, procurement, and
real estate asset management.
“Many of the centers are the headquarters of outsourcing organizations for
Europe or the EMEA region”, said Andrew
Hallam of ASPIRE.
Indeed in early spring, BNY Mellon, a
provider of investment management and
investment services, announced plans
to open a new Global Delivery Centre in
Wrocław, where staff will work in the areas
of fund accounting and investment operations. “Poland is a central location within
Europe, offering high-quality staff and
infrastructure,” said Martin Ring, who is
leading the development of BNY Mellon’s
operations in Wroclaw.
Another global financial institution, State Street, opened a new office
in Kraków in May, adding to the two
locations it already has in the region. It
plans to launch its Investment Analytics
service later in 2012, and by 2015, the
company will recruit nearly 600 professionals, to support its various financial
services.
“Poland has become a key European location for fund accounting, securities valuation, exchange traded derivatives and
hedge fund administration,” said Joseph
Antonellis, who is vice chairman of State
Street and leads all Europe and Asia-Pacific
Global Services and Global Markets.
Poland as a top European shoring
destination
2011 saw Poland strengthening its position as a leading global shoring destination. It was named by Everest as the most
mature offshoring location in Europe and
one of the Top 5 worldwide. Poland is the
world’s “Offices in smaller cities attract IT
outsourcing - FT.com” third most popular
shared services location after India and
China, according to KPMG. Also Hackett
Group identified Poland as one of the most
interesting offshoring venues for international investors and Kraków was ranked
11th globally in the TOP 100 outsourcing
destinations by Tholons. Poland currently
accounts for 40% of the total headcount in
ABSL Conference, Sopot
8
The 3rd ABSL Conference took place in
September in Sopot, and attracted more
than 350 representatives of the leading
SSC, BPO, ITO, and R&D companies, the
government, local authorities, as well as
companies supporting the growth of the
sector. Conference Special Guests included
such renowned personalities such as:
Lech Wałęsa, former President of Poland,
Nobel Prize Winner
Jerzy Buzek, former Prime Minister of
Poland, President of the European
Parliament in 2009-2012
Tomasz Arabski, Head of the Chancellery
of the Prime Minister, Chief of
Permanent Committee of the Council
of Ministers
Paweł Orłowski, Undersecretary of State,
Ministry of Regional Development
Numerous representatives of local authorities attended the event. Mayors of
Bydgoszcz, Białystok, Gdańsk, Katowice,
Lublin, Poznań and Radom took part in
a panel discussion dedicated to the cooperation between local authorities and
investors.
Also numerous panel discussions, case
study presentations and workshop sessions devoted to such topics as outsourcing and offshoring trends, journalists’
views of the sector, Business Intelligence
and Big Data, LEAN management, and
attitudes of Generation Y towards the
■
workplace.
November 2012
www.bizpoland.pl
outsourcing centres in Central and Eastern
Europe (CEE).
“Business Process Outsourcing and
Shared Service Centres account for most of
the projects of the Polish Information and
Foreign Investment Agency (PAIiIZ). 30
out of 149 investors we currently work with
in Poland represent the offshoring business which is an equivalent of over 7700
potential new work places.” said Slawomir
Majman, President of PAIZ.
Cover Story
outsourcing centres are finance and accounting, IT as well as research.
The predominant countries of origin
are those within the European Union
(France, Germany, UK, Sweden, and the
Netherlands) as well as the United States.
The sector gives employment to university graduates and students with fluent
English, German, French, Italian and
Spanish as well as other less popular foreign languages such as Danish, Swedish,
The shift in perception of Poland
is significant as more multinationals
open centres here.
In respect of headcount, PAIZ estimates
that 45% of the existing “outsourcing”
centres in Poland are Business Process
Outsourcing (BPO) centres and IT outsourcing centres (ITO), followed by Shared
Service Centres SSC (35%) and Research
and Development centres R&D (20%). Most
typical processes executed by Poland-based
Norwegian, and Dutch amongst other.
Services are delivered in a total of 34 different languages with a typical employee
being 29-30 years old with approximately
3 years of professional experience. This
is unlike only a couple of years ago when
SSC and BPO/ ITO centres were recruiting mainly new graduates. Interestingly,
employers are increasingly competing for
a talent pool who are not only experts in
areas of specialization such as IT but also
have a general knowledge about the sector
the company is active in.
The dominant three markets in respect
of headcount in the services sector are
Warsaw, Kraków and Wroclaw with SSC
and BPO/ ITO staff respectively of 20,000,
10,000 and 10,000. In addition, Tri-City
and Poznan are also recently receiving a lot
of interest from BPO/ ITO and SSC investors. McKinsey & Company and Samsung
invested in Poznan in 2011 while Bayer, OIE
Support and Metsa Group have all committed to the Tri-City market, as well as the
recently announced Indian firm WNS. The
seven biggest Polish agglomerations i.e.
Warsaw, Kraków, Wroclaw, Lódz, Silesia,
Tri-City and Poznan have about 80% of all
service centres in Poland, driven by strong
universities and higher-education centres,
and a reasonably wide availability of office
space, albeit differences exist between particular markets.
“This is the sector with potentially
Poland’s biggest employment growth,” says
Jacek Levernes, head of the Association of
Business Service Leaders in Poland, one of
two groups representing the shared office
■
and outsourcing industry.
9
2012 November
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EU Budget
Push for EU budget deal ahead of
November summit
EUROPEAN diplomats are
pushing to secure a swift deal
on the bloc’s next sevenyear budget, believing a Nov.
22-23 summit offers the best
chance of agreement - saying
the need to solve bigger issues may work to defuse the
political challenges.
10
At stake is nearly €1 trillion of investment
between 2014-2020 in infrastructure projects, agriculture and research, designed
to help spur the economic growth Europe
needs to emerge from its debt crisis.
The desire to reach agreement at a single summit appears at odds with recent
shadow boxing by EU governments, with
British Prime Minister David Cameron
publicly threatening to veto a deal if his
demands are not met.
It would also buck an EU trend for longdrawn-out talks over the multi-year budget, which in the past has required at least
two summits to get the unanimous agreement needed.
“Differences between EU member states
seem to be so big that the negotiations
would last much longer than currently
expected,” said Carsten Brzeski, senior
European economist at ING bank.
But with euro zone countries keen to
focus their efforts on crisis response measures, and with poorer EU countries wary
of any delays to the new spending plan,
diplomats insist that a one-shot deal is
possible and remains the best option.
“The best chance for a deal at the November
summit is the fact that, for many member
states, they have bigger fish to fry,” said one
EU diplomat involved in the discussions.
Even British officials have talked up the
chances of a November deal, despite the
government’s political posturing.
Cameron goes into the talks in a relatively strong position, with one of his main
priorities - keeping hold of the country’s
rebate - assured if no deal is reached.
He also has strong allies in Germany,
Finland and the Netherlands, among others, in his bid to cut the overall level of
EU spending proposed by the European
Commission last year.
London is calling for the deepest cuts, but
if offered a deal that safeguards its multibillion euro rebate and cuts some 100 billion euros from the total, Cameron could see
a chance to win back some EU goodwill for
little pain.
If no deal is struck, the EU’s 2013 budget
would roll over with an automatic 2 percent increase based on inflation, which should act as
an extra incentive for net contributors such as
Britain and Germany to reach a compromise.
That means that if Britain vetoes a deal, it
could end up paying more than it wants.
“The UK may have to take a little water
with its wine, but November could be the
best chance for a good deal, because they’re
not necessarily going to get a better one if
they wait,” said another EU diplomat who
spoke on condition of anonymity.
Others believe Cameron risks painting
himself into a corner with his talk of a veto
and needs a longer-term vision.
“If the UK is going to play the hard line it
has said it would play, then I think there is
very little scope to find a compromise which
works for everyone,” said Fabian Zuleeg,
chief economist at Brussels think tank the
European Policy Centre.
“If the UK is purely looking at how things
play in the British media and with Tory backbenchers, it becomes very difficult to find a
compromise here in Brussels.”
While Britain was described by one senior
EU official as the biggest problem in the budget talks, it is far from being the only one.
Sweden, a net contributor to the EU and
which has long called for reform of the common agricultural policy, is also expected to
play hardball.
“We have made clear that we believe a
freeze in real terms is what should happen
given that it has not been possible to achieve
a modernization or any major change in the
budget.” Sweden’s Prime Minister Fredrik
Reinfeldt told reporters on Tuesday.
Poland
Poland, Hungary and other EU members
from the former Soviet bloc, set to benefit
most from the spending plans, are opposed
to any cuts, and each carries its own veto
in the talks.
The European Parliament could also
use the power granted to it under the
2009 Lisbon Treaty to vote down any deal
reached by EU governments if its calls for
increased funds are ignored.
Around one-third of EU funds to be allocated to Poland under the 2014-2020
budget will be used to implement transport investment projects, said Elzbieta
Bienkowska, Minister for Regional
Development.
Bienkowska believes that the funds
will be used to carry out railway, road
and airport construction projects, with
the bulk of spending to be on railroad
projects. The funds will be also used to
fund the construction of expressways.
According to the National Development
Strategy adopted by the government,
Poland should have 2,800 km of expressways by 2020. Currently, there are 900
km of this type of roads in Poland, so
1,900 km will need to be built in the next
eight years.
Source: Independent.ie
November 2012
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Equities
Poland’s Exchange-traded funds
(ETFs) give foreign investors easy
access to Polish market
Poland’s Biggest Winners and Losers on the Warsaw Stock Exchange
(year-to-date 2012):
change
(%)
30 Oct.
2012
Top 10
2 Jan.
1012
Investors seeking broad exposure to the
Polish equity market might find EPOL an
interesting pick. Launched in May 2010,
the fund seeks to match the price and yield
of the MSCI Poland Investable Market
Index, before fees and expenses.
The product focuses largely on the large
cap segment of the Polish market and
holds 45 securities in its basket. The majority of holdings are classified as blend
stocks from a style perspective. The fund
is heavily concentrated in its top 10 holdings with nearly 69% of its total assets. The
top three companies combined make up
for nearly 34% of its portfolio.
From a sector perspective, the product
has a certain tilt towards the financial sector making up 42% of the ETF. Materials,
energy, utilities and telecommunication
services comprise the next four major sectors, with a combined 47% share.
Name
HERKULES
0.37
1.29
248.65
Notes
This crane operator bounced back from lows, but on low volume. The firm has expanded its operations from supporting
construction firms to the fast-growing wind energy sector, which requires cranes to erect their wind turbines.
BEST
13.73
35
154.92
BEST S.A. is one of the leading debt collection companies within the Polish financial services market and an expert in
the field of charge-off debt services. The company recovers debt portfolios and offers debt recovery services, which are
particularly suitable for large-scale operating banks, financial institutions and telecommunication companies. The firm’s
strong share performance in 2012 may be a contrarian indicator for Poland’s economy in 2013.
KREZUS
6.12
15.5
153.27
A play on gold and coffee. NFI Krezus S.A. owns eCoffee sp. z o.o. (100% owned) and 50% of Gold Investments sp. z o.o..
Based in Toruń, the company manages ELIZA jewelry shops, offering a wide range of jewelry articles of gold, silver, jewels
as well as brand watches, jewelry accessories and imitation jewelry.
GRAAL
5.69
12.65
122.32
Poland’s largest producer of canned fish products. Graal has been on the market since 1989. Through 8 subsidiary
companies, Graal sells tinned fish, tinned meat, smoked fish, sea food, caviars, frozen fish, pickles, salinity, fish salads,
vegetable salads and ready dishes.
ZPUE
115.5
240
107.79
ZPUE S.A. produces equipment for cable lines and overhead power lines such as: container transformer stations, MV
switchgears, LV switchgears, pole transformer stations and apparatus for overhead power lines, which is used in secondary
distribution in power distribution companies and industrial plants in Poland, Europe and the world. The company provies
power engineering installations in new, modernized and renovated power plants.
IMC
8.1
16.43
102.84
Industrial Milk Company is an integrated agricultural company in Ukraine. In May 2011 IMC did its IPO on the Warsaw
Stock Exchange. In addition to the company’s main operational activites (cultivation of grain & oilseeds crops, potato
production, dairy farming, storage and processing of grain & oilseeds crops), IMC is large owner of agricultural land in
Ukraine, and is among Ukraine’s top-10 industrial milk producers.
EMCINSMED
7.05
14.09
99.86
EMC Instytut Medyczny is subject to a takeover or major investment by EQT VI Limited fund. EMC is Poland’s largest
owner of hospitals and clinics on the private healthcare market. Within 10 years the company has grown from a local
company managing a hospital in Wroclaw into a network of medical facilities, expanding consistently throughout Polish
and abroad as well.
WIELTON
2.34
4.65
98.72
Wielton is Poland’s biggest semi-trailers and trailers producer, and one of the 10 leading producers in Europe. Its
customers consist of polish transportation, construction, production, agriculture and distribution companies, also foreign
vehicle and semi-trailers dealers, especially from: Russia, Ukraine, Lithuania, Latvia, Czech Republic, Bulgaria, Romania
and the European Union.
LPP
2019.5
3953.5
95.77
Based in Gdansk, LPP designs and distributes clothing under its own brands. Design is done in Gdansk, with all production outsourced to the Far East under the strict control of the LPP’s Shanghai office. Brands include RESERVED, CROPP,
PROMOSTARS,HOUSE, and MOHITO.
ENERGOINS
6.24
12.14
94.55
Energo Instal is one of the largest manufacturers of power boilers in Poland, and one of five manufacturers of finned
tubes in Europe, which are basic elements of heat recovery steam generators and heat exchangers. Finned tubes are
used in the largest heat recovery steam generators in Europe built by Energoinstal. The European Union is the largest
market for their products and services, with Germany being the biggest.
With Assets Under Management of
$140.7 million, the product charges 59 bps
in fees per year to investors. Volume is
continued on page 12
Key Indices for Poland
(10 months ended Oct 2012):
WIG
15%
WIG 80
15.60%
New Connect Index
-15%
Market Vectors Poland ETF (NYSE) 19%
2012 November
change
(%)
30 Oct.
2012
2 Jan.
1012
Worst 10
Name
HBPOLSKA
0.75
0.02
-97.33
Notes
Construction firm filed bankruptcy notice. Was involved in stadium construction.
ALTERCO
43
2.11
-95.09
Real investment and management fund. Involved in takeover of Reinhold real estate group. Disputes with shareholders and banks has torpedoed the stock.
PBG
73
4.84
-93.37
Construction firm filed bankruptcy notice. Was involved in stadium construction.
ABMSOLID
1.7
0.13
-92.35
This construction firm filed for bankruptcy in summer 2012. The filing is a “restructuring”, not a liquidation.
BOMI
2.26
0.24
-89.38
Bomi operates a chain of delicatessens/retail food shops. Heavy debt load and weak operational results have hurt the
share’s performance. Subject to either liquidation or take-over in 2013.
INTAKUS
1.4
0.15
-89.29
INTAKUS Group is a general contractor, invovled in construction of multi- and single-family homes, industrial buildings,
and general buildings. Firm also does building design work, leases cranes and specialist equipment.
ONE2ONE
2.25
0.25
-88.89
Mobile media and marketing services, operating under brands such as Mobi!Joy.
IDMSA
1.3
0.21
-83.85
One of Poland’s largest brokerage firms, also with an asset management division, IDM has been hurt by general
slowdown in IPO listings on the Warsaw Stock Exchange.
DSS
7.4
1.21
-83.65
DSS, whose largest subsidiary is Dolnośląskie Surowce Skalne S.A., is the biggest domestic producer of aggregate materials for infrastucture projects, such as highway construction. Firm supplies asphalt and cement from its own rockmines.
EUROMARK
1.16
0.2
-82.76
Euromark Polska S.A. is the leader of the Polish outdoor market. It is a designer and distributor of outdoor clothing,
footwear and equipment. Euromark Polska S.A. sells its products through a full spectrum of distribution channels from
wholesale to retail.
11
www.bizpoland.pl
Equities/Entrepreneurs
continued from page 11
quite good, trading in more than 70,000
shares per day on average, suggesting a
tight bid-ask spread. The ETF has generated outstanding returns of over 28% so far
in the year (as of October 16) and yields an
impressive annual dividend of 4.83%.
Market
Vectors
Poland
ETF
(NYSE:PLND)
Launched in November 2009, the fund
tracks the Market Vectors Poland Index,
which consists of 25 companies that are
either headquartered in Poland or produce
at least 50% of their revenues from the
nation.
The fund holds 30 securities in its basket, with a heavy focus on the top 10 holdings that account for about 60% of the assets. The top three companies dominate
more than 24% of the holdings. Though
the product puts more focus on large cap
stocks, mid cap takes 22% share with only
1% going to small caps.
In terms of holdings, financials consists
of more than one-third of the holdings followed by double-digit weightings in materials (16%), energy (16%), and utilities
(12%). The ETF has total assets of $32.5 million and sees a moderately good volume of
about 13,000 shares per day.
The product lags EPOL by a single basis
point in terms of fees. PLND has generated
excellent returns of nearly 25% year-todate (as of October 16) and yields a good
dividend of 3.60% annually. This suggests
that investors have a decent long-term
choice on their hands in this Poland ETF.
Provided below is the summary of the
two Polish ETFs:
EPOL
PLND
Inception Date
05/25/2010
11/24/2009
Index
MSCI Poland
Investable
Market Index
Market
Vectors Poland
Index
AUM
(in millions)
$140.7
$32.5
No. of Holdings
45
30
% of assets in
Top 10 Holdings
68.83%
60.13%
Expense Ratio
0.59%
0.60%
YTD Return (as
of October 16)
28.13%
24.62%
Dividend Yield
4.83%
3.60%
Sir Branson inspires Warsaw
12
In late October, Sir Richard Branson, one
of the world’s top entrepreneurs, visited Warsaw and inspired students at the
University of Warsaw, with tales of multiple
successes disrupting established industries. His visit is part of a new University
program to encourage entrepreneurship
among youth.
The British billionaire and Virgin Group
owner told students, who had packed into
a hall at Warsaw University, that they
need to be “passionate about whatever
you are doing in life” to achieve success.
Branson met with students on his first
visit to Poland on Wednesday, where he
came to launch Virgin Academy, which
will help young people kick start their own
businesses.
Branson, said to be worth an estimated 4.2
billion USD, started a vinyl record business in
the early 1970s, and after the setting up the
Virgin record label, he gradually expanded
into other areas, including airlines, train travel, telecommunications and insurance.
This year Branson launched his Virgin
Mobile brand in Poland, operating on the
P4 network.
In separate comments, he said that his
space tourism project keeps being pushed
back and isn’t sure of an exact date for the
first launch. He says it will be at least another
12 or 18 months before the Virgin Galactic
venture can offer paid space travel to adventurers. Asked about Virgin Galactic, Branson
said he has “stopped counting” days to the
launch because it gets delayed “to the next
year, to the next year.”
More than 100 would-be space tourists
have signed up for the $200,000 two-hour
trips that go 100 kilometers above Earth.
The 62 year-old entrepreneur has also
launched a new book this year, Like a
Virgin, which, he says, “will reveal secrets
they won’t teach you at business school”. ■
November 2012
www.bizpoland.pl
Entrepreneurs
Chopin Airport City
Arguably Poland’s most amand expands the firm’s “non-aeronautical city centre (urban railroad, buses, taxis).
Limiting vehicle traffic in favor of walkrevenues”.
bitious real estate developThe Chopin Airport City complex will ways will allow for developing the area in a
ment project, Chopin Airport include high standard office buildings, a work- and leisure-friendly fashion. Chopin
City aims to be the first proj- conference centre with one of the largest Airport City will have low-rise buildings
halls in Warsaw as well as Premium class surrounded by greenery and ponds and a
ect of its kind carried out in
hotels and recreation facilities surrounded centrally located square with recreational
Poland, reflecting the worldservices, galleries and restaurants availby a park with greenery and ponds.
The project also includes fitness clubs able for business people, tourists and cliwide trend of building small
and restaurants. In the middle of Chopin ents of the airport.
airport towns with commerAirport City there will be a roofed passagecial functions. The new office way comfortably connecting the buildings. Hotels
More hotels are coming to the airport
and retail complex is located
Fast-growing airport supports the
area, following on the commercial success
in Warsaw right next to the
office development concept
of the four-star Courtyard by Marriott
The key selling point of the Chopin Airport hotel. In 2013 two more hotels will open:
country’s largest airport.
Developed by ‘Polish Airports’ State
Enterprise (PPL), plans are that in the
next ten years the area located in the south
of Warsaw, along the main access road to
Chopin Airport, will be transformed into a
modern business park with recreation and
entertainment facilities.
According to Michał Marzec, prezes of
PPL, plans are for 17 buildings and a total
of 170,000 square meters of space. The
project will be developed in stages, with
the first stage to develop three buildings.
PPL is looking for development and investment partners, and plans are that the
complex may have several SPVs allowing PPL
to include multiple development partners.
ARUP and CBRE are consultants on the
project.
Marzec said that such development projects are a “second leg of PPL’s activities”
2012 November
City project is that it is adjacent to Chopin
Airport – the biggest airport in Poland.
At present the annual capacity of the
airport is approximately 15 million passengers. Once the development projects
scheduled to 2015 are executed, it will be
able to serve around 22 million passengers a year. In 2011 the airport handled
9,3 million passengers, 36% of whom were
business clients. As of winter 2011/12, the
airport serves 77 destinations in 38 countries. Currently 27 airlines operate regularly from Chopin Airport. The airport is
also a regional hub for cargo transport. In
2011 the airport reached its record high of
46,000 tonnes of freight handled.
Sustainable development
From its beginning the idea of the Chopin
Airport City project is to balance an environmental and community-oriented
approach with business functions. The
site will be comfortably linked with the
the five-star Renaissance Hotel, on the
premises of Chopin Airport City, and the
two-star Hampton Hotel by Hilton, located nearby.
Mazur said that PPL would like to finalize deals with potential partners by
September/October 2013, and start initial
construction at the beginning of 2014. ■
Chopin Airport City in figures
• Total area– 22,5 ha
• Gross covered area – 13,27 ha
• Number of office buildings with
additional functions - 17
• Usable floor space of the buildings
– over 170 000 sq m
• Height of buildings – 25 - 40 m (6-8
storeys)
• Storey area - between 1 800 – 2 000
sq m
• Parking spaces - at least 1 space per
50 sq m of area leased
13
www.bizpoland.pl
Food Exports
SIAL Paris Food Expo pulls in
120,000 visitors
Billed as the largest food
expo in the world, this year’s
edition of SIAL attracted
more than 120,000 professional visitors from 200 countries,
and 6,000 exhibitors from 100
countries.
Highlights this year included SIAL
Innovation, the most popular observatory
that attracts 75 percent of attendees looking for pioneering and trendsetting products. The SIAL d’Or also awarded the most
innovative products in 29 countries that
became a commercial success in the last
year.
Poland’s food export sector turned
out in large numbers, as SIAL (and the
Polish Exhibitors at SIAL 2012
Agencja Rynku Rolnego
Agro-Handel sp. z o.o.
Agros Trading Confectionery
Agus
Ajinomoto Poland sp. z o.o.
A-Meat sp. z o.o.
Apis Apiary Cooperative
Artifex
As Babuni
Avalon Foods sp. z o.o.
Aves
Balviten
Bartex sp. z o.o.
Best Foods
Biernacki - Meat Plant
Big Brands Group
Biofluid sp.j.
Brand Distribution Poland Ltd sp. z o.o. sp.k
Browar Jagiełło
Cisowianka
Contractus sp. z o.o.
Dawtona
District Cooperative Dairy Plant in Łowicz
Drosed
Duda Polish Meat Concern
Eastern Poland
Eko-Vit sp. z o.o.
Eltar Tesna Elżbieta
Expo Line sp. z o.o.
Foodcare
alternating ANUGA) is clearly the most
important food expo for Polish producers.
Poland’s agricultural exports are gaining market share on global markets, as
consumers increase their consumption of
Polish fish, apples, chicken, beef, beer –
and even candy.
Agriculture Minister Stanisław Kalemba
recently announced that Poland’s “food export surplus in 2012 will exceed €3 billion.”
Food From Poland Fischer Trading Group Ltd.
Food Service sp. z o.o.
Frigo Logistics sp. z o.o.
Fructofresh Group sp. z o.o. sp.k.
Good Food Products sp. z o.o.
Graal SA
Grana sp. z o.o.
Greek Trade Ltd
Grupa Tarczynski SA
Handel
Healthy Food Production SA
Herbapol-Lublin SA
Hortino
Ichem sp. z o.o.
Iko Kompania Drobiarska
Indykpol Sa
Instanta sp. z o.o.
Interfood Polska sp. z o.o.
14
November 2012
www.bizpoland.pl
Export revenue from Polish food will be
greater than reach €16 billion in 2012, predicted the Minister. The poultry sector records the greatest surplus, putting Poland
in third position across Europe. “When
it comes to production of apples – we are
number one,” said Minister Kalemba.
Poland’s EU membership has been a bonanza for Poland’s food exporters. A combination of open western-European markets and subsidies to modernize Poland’s
agricultural sector has moved Poland from
a net food importer to a net exporter since
its EU accession in 2004.
Food exports in 2012 will have grown
300% over the previous 8 years.
Kasol
Koliber sp.j.
Konspol Holding
Krakowski Kredens Tradycja Galicyjska SA
Krynica Vitamin sp. z o.o.
Kupiec sp. z o.o..
Lactex
Lactima Ltd
Lmeat-Luków
LST - Polska
Lubawa (POW Robert Kowalkowski)
Lukosz Polish Poultry Meat
Ministry of Agriculture and Rural Development
Mitmar sp. z o.o.
Mlekoma
Mlekovita
Mlekpol in Grajewo – Dairy Cooperative
Mokate
Food Exports
Polish food producers and farmers have
parlayed their natural advantages - of lower production costs – and added a dash of
focused marketing and sales to win major
food supply contracts. Initially focused on
the wealthier western European market,
Polish firms see increasing opportunities
in eastern markets including Russia, as
well as the Middle East and east Asia.
Honey and jam producers have found
new markets in Dubai, niche pork products are being exported to South Korea,
and Polish milk and vegetables are sold in
shops in London.
The mix of exported products
has changed over the last 7 years
distinctively, as meat and meat products
have become the number one exported
food product sector, representing 21.3%.
Live animal export has decreased substantially, as exporters have shifted to
higher value-add food production and
processing, with its commensurate higher margins.
The “sin” products – alcohol, tobacco and
cigarettes – have carved out a strong second position, and represent more than 12%
of all Polish food exports in 2011, up from
just 3.9% in 2004. Polish beer, niche vodka
products and Polish-processed cigarettes
are increasingly consumed in cities such as
■
Berlin, Barcelona, and Dublin.
Poradnik Handlowca
Nero Ltd
PPH Maxpol sp. z o.o.
Nord Capital
PPHU Karol
Octim
PUH Pilot Polska sp. z o.o.
Oshee Polska sp. z o.o.
PW Mat
Paula
Rene Coffee Pads
PB Group – Premium Beverages sp. z o.o.
Run Chłodnia we Włocławku sp. z o.o.
PekPol – Ostroleka SA
Rzeszowskie Zakłady Drobiarskie Res-Drob
Pepees JSC
Sante A. Kowalski sp.j.
Perła - Browary Lubelskie SA
Sertop sp. z o.o.
PHU “Unico”
Sery ICC Pasłęk
Pifo Eko Strefa
Pini Polonia sp. z o.o., Hungary Meat Kft, Spomet - Bergen
Stovit Group
Bresaol
Tan-Viet International SA
Polagro Trade sp. z o.o.
The Kutno Poultry Processing Plant
Polan sp. z o.o.
The National Poultry Council – Chamber of
Polder sp. z o.o.
Commerce (KRD-IG)
Polexpo Exhibitions
Polmlek Group
15
2012 November
www.bizpoland.pl
Real Estate
Poland makes a strong showing
at Expo Real in Munich
While many Polish cities turned out in large numbers for
the annual Expo Real Commercial Property fair, an equal
number of cities were noticeably absent, suggesting that the
investment mood – or state of city budgets – is weaker than
one year ago.
Cities and voivods such as Warmia
and Mazury, Lublin, Podlasie and
Świętokrzyskie, Białystok, Kielce, Ostrowiec
Świętokrzyski, Łomża, Krosno, Tarnobrzeg,
Lublin, Olsztyn, Gołdap and Suwalki Special
Economic Zone had representatives in
Munich. And larger cities such as Warsaw,
Katowice, and many cities from Slask attended, yet Gdansk, Poznan, Wroclaw, and
Szczecin did not exhibit this year.
A discernible trend at Expo Real is the
strong focus on investment in larger, liquid, core markets perceived as “safe havens”. Brokerage firm CBRE said real estate
investors are displaying greater caution,
which is leading to constrained activity in
increasingly polarized real estate markets
in Europe.
Investment activity contracted sharply
in Central and Eastern European markets
in H1 2012, falling by over half compared
with the previous six months, and the focus has narrowed to concentrate on Poland
and the Czech Republic, yet figures show
that Poland is a top performer with overall
commercial property investment volumes
worth €1.1 billion in the first three quarters of this year.
Polish companies from the real estate
sector and Polish municipalities believe
in showing strong presence at Expo Real.
Last year Polish entities were the second
most numerous group of exhibitors from
abroad, with 45 exhibitors, behind Austria
with 67 and ahead of the Netherlands with
44. This year 55 companies and entities
from Poland set up stands at the fair, including the Military Property Agency.
Przemyslaw Felicki, Associate Director,
Capital Markets at CBRE Poland:
“Investors are still showing unfaltering
interest in the Polish market and are eager
to be present here. Even though transaction
volumes are lower than last year and the
processes are taking far longer than in the
past, not least because securing financing
has been a challenge, there are a number of
large transactions in progress. For example
the sale of the Warsaw Financial Centre office building by CA Immo and Pramerica
Real Estate Investors is expected to be
16
November 2012
www.bizpoland.pl
finalized by the end of this year. The value
of this transaction is estimated at €210 million. Other ongoing transactions include
the sale of Platinium Business Park or of the
renowned Manufaktura shopping centre in
Lodz, which is expected to go for a reported
€400 million. Poland is being targeted by investors not only in the retail and office real
estate sectors. The logistics sector is also attracting capital and there have been some
huge transactions this year such as the one
between Prologis and Hines worth €96 million with more expected to close this year.
All in all the property investment market in
Poland is expected to reach the value of €2
billion by the end of 2012.”
While investors have been hesitant in
the eurozone markets, they have been
more active in the UK and Scandinavia.
London accounted for 20% of European
investment transactions in H1 2012 and
attracted almost half of the global capital
flowing into European markets from outside the region. Its size and pull coupled
with the high quality of London’s commercial real estate is obviously still a magnet
for money from around the world. The
Nordic markets increased their share of
the European investment market from
14% in 2011 to 18% in H1 2012.
Southern Europe is faring particularly
badly - the share of the five euro periphery markets (Spain, Portugal, Italy, Greece
and Ireland) in total turnover in H1 2012
fell to 4.9%, compared with 13% in 200809. While prime yields in stronger markets
remain relatively stable, yields in southern
Europe are particularly weak. Elsewhere,
for example in the Netherlands and the UK
regions, returns are also feeble. At a sector
level, prime High Street retail shows the
most resilient performance, while prime
office and industrial capital values have
slipped back into negative territory in
terms of annual changes at the European
level.
Felicki added:
“Both trans-regional capital flows and
spezialfonds activity are a distinct trend on
the Polish market. Spezialfonds are active
in Warsaw where they are purchasing top
quality core assets in prime locations, such
as the purchase of the Renaissance office
building by Euro GLL or of Norway House
by IVG, both in the centre of Warsaw. The
value of such transactions rarely exceeds
€50 million. Poland is also seeing its fair
share of trans-regional investors with both
Blackstone and Hines active on the Polish
market. In the past year Blackstone has
purchased a number of promising regional
shopping centres with a view to adding
■
value to those assets.”
2012 November
Real Estate
17
www.bizpoland.pl
Legal
Belgian fights to recover swindled
142,000 Euro
Tom Dierick is angry.
Very angry.
18
Stonewalled by Polish prosecutors, who
have so far refused to prosecute his case,
he is using a combination of TV crews, media, letters to Parliament, and relentless
persistence to “right the wrongs”.
While his case is uniquely captivating,
his cause has broader relevance for foreign
business people who are fed up with the
bureaucracy of the Polish justice system –
often scornfully referred to as the Polish
“justification” system.
His story starts not long ago, when
back in March 2012 he met a man named
Aleksander Kowalczyk, who represented a
company called KREODESIGN Sp. z o.o. in
Wroclaw. Dierick is in the business of plastic granulates, and Kowalczyk had a deal
to help him buy 100 tons of these raw materials necessary for the plastic injection
process. And this would be just the first of
several deals to come, which would lead to
a full 1200 tons of imported materials.
But it did not go as agreed.
To get the much lower-priced raw
materials, Kowalczyk required prepayment. As was agreed between Dierick and
Kowalczyk, the money would be used to
pay for the first 100 tons of PolyPropylene
from Saudi Arabian firm SABIC.
KREODESIGN issued a pro-format VAT in
April, and Dierick, via his company M&A
Cefta, transferred 142,000 Euro to the account of KREODESIGN.
The unusual deal, which offered cost
savings of at least 20%, hinged on a barter relationship between the Russian and
Saudi governments. Or at least so said
Pawel Szpilski, who was introduced to orchestrate the deal. Immediately after payment, Kowalczyk assured Dierick that the
100 tons had been ordered and were due to
arrive in Poland. “Then there were delays”,
said Dierick, “but for a couple of weeks
Kowalczyk continued to confirm that “the
trucks are on the way”. I started to get
nervous, but understood that there could
be delays, and that it was still possible that
the trucks would finally come”.
Then he got the letter.
On May 14th, a registered letter arrived
from KREODESIGN, represented by prezes
Rafal Dusza, whom Dierick had never met
and never heard of, stating that 200ts was
ordered, instead of 100ts, and thus the
firm had only received payment for 50% of
the order, and that the delivery would not
be made until payment was made in full.
When asked to return the money in that
case, Kowalczyk replied that unfortunately
the money was sent to a German intermediary company, of whom he kept the identity
secret, and that the German intermediary
does not want to return the money. So no
money back, and no products delivered.
Dierick went immediately to the prosecutor’s office in Warsaw, which within 3
days (18 May) issued a statement that the
case was “umorzony”, i.e. not a criminal
case but a civil case, and that therefore he
would not pursue it further. So Dierick appealed to the court to insist that the case
had validity, and after 4 months the court
finally decided that he was right and demanded the prosecutor to take the case.
However during these four months
Dierick had applied as well to the prosecutor in Wroclaw, and the case had been
“tossed” there from one prosecutor to another, and then to a third, yet finally sent
back to the first prosecutor, who finally
gave it to the police to investigate.
In an unusual quirk of circumstance,
that two prosecutors have to take on the
case caused another wrinkle. Only one can
pursue the case. So a separate court is now
considering which prosecutor’s office has
jurisdiction over the case. And so again the
case is on hold and slowed by bureaucracy.
And that’s where the case is now
– officially.
But unofficially, the case is being prosecuted, not by Polish prosecutors, but by
Tom Dierick himself, with the help of some
journalists.
And what Dierick has discovered is
astounding.
Kowalczyk in fact owns only 1% of
KREODESIGN, and is only the “prokurent”
for the company. He has no board position
and therefore no potential personal liability. KREODESIGN’s president and 99%
shareholder is Rafal Dusza, a physical worker at glass factory “Pan Sklarz” in Wroclaw.
Dusza, who was greeted last week by a
TVN television crew after his shift, said
that he and Kowalczyk had taken out
100,000 Euro from the KREODESIGN
bank account, which required his presence
to sign as “prezes” of the company - but
“the money went directly into Kowalczyk’s
pocket”. When asked by reporters about the
registered letter, he said that Kowalczyk
wrote it, and he signed it without reading
it, trusting that Kowalczyk would know
what documents need to be prepared and
signed. According to Dierick, Dusza was
only a „front man” for the company.
The plot thickens. After a few months of
investigative work Dierick finally discovered
the identity of the mysterious German intermediary, “KOHLER Biotechnology GmbH”,
whose president is Tomasz Niedziela – “another frontman”, says Dierick - and prokurent
is Norbert Westphal, with an official company address in an apartment in Berlin where
Mr. Westphal lives with his family. In later
statements to the police and to journalists,
Kowalczyk confirmed that KOHLER was
supposed to purchase the 1200 tons, with a
total value of 1.380.000 EUR, directly from
SABIC Turkey. When Dierick however investigated this claim with the SABIC organization, it turns out that nobody within the
SABIC organization had ever heard of Mr.
Westphal or KOHLER. On 28 August, after
nearly one year of existence, Kohler GmbH
filed for liquidation in Germany.
Dierick’s relentless pursuit has led to articles in two Polish newspapers, including
Gazeta Wroclawska, one Belgian newspaper “De Standaard” - and TVN’s program
“SuperWizjer” has sent a TV crew to follow the
case, with broadcast on TVN scheduled for
13th November. Several journalists continue
to follow the case, and controversy grows surrounding Kowalczyk and Szpilski, who reputedly has very good contacts both within the
Wroclaw police and prosecutor department,
being a former Belarusian KGB agent, according to local journalists. According to Dierick,
Kowalczyk has been convicted several times
in his life for fraud, has spent time in prison,
and presents himself to potential business
partners via at least 5 different companies,
in which in none of them does he own more
than 1% of the shares. He also does not hold
a board position, and thus does not bare any
responsibility under Polish law.
Continuing in his quest for resolution,
Dierick made an official request for interpellation in the Polish Parliament for a faster
and more efficient operation by the Polish
prosecutor’s office. He compares it with the
recent AmberGold scandal, in which the
prosecutors, regulators and politicians failed
to act until the case finally reached the media
■
headlines.
November 2012
www.bizpoland.pl
Energy
The Road to Nowhere: Government’s Proposed Law on Biogas
The Polish Government is
under pressure from Brussels
to enact the legislative means
to meet the green energy
target for Poland for 2020
under the EU Directive.
Randy M. Mott
One of the three main pillars to meet
the EU requirement is biogas, which the
Government promised to Brussels would
reach 980 MW of capacity by 2020 (from
about 125 MW in 2011). The EU broadly defines what biomass can be used to produce
biogas and qualify as green energy under
the Directive. Unfortunately the Polish
Government is proposing a very restrictive
and weak biogas program which has received little industry input and obviously
is being prepared without much thought
for the details.
The renewable energy system is supported by green certificates which are used to
provide a bonus to producers of green energy and increase the cost of electricity by a
tiny amount (less than a grosz per kilowatt
hour). While a minor burden on electricity
purchasers, the green certificates are the
mainstay of the support system necessary
for the interim future to allow the energy
sources in Poland to diversify. Such a program is required by EU law, but also can
add to Poland’s energy mix from domestic
sources to improve energy security. Biogas
from waste also solves other problems in
addition to providing a new energy source.
The EU definitions include a broad range
of biomass as possible feedstock for biogas,
including organic wastes from industry,
households and restaurants. The Polish
proposal sharply discriminates against
organic waste, providing only half the government support in green certificate values. The draft is written entirely from the
prospective that Poland will build biogas
plants only on farms and that only farm
material will be used for biogas. Only 28
such plants have been built in Poland in
the last ten years and it is unrealistic to assume that this is the only biogas useful to
Poland or that these farm plants will allow
Poland to meet its 980 MW of biogas output
2012 November
committed to the EU by 2020. In fact, most
of the current “agricultural biogas” plants
in Poland also use vegetable processing and
other organic waste that would disqualify
them under the Ministry’s draft bill from
receiving the full green certificate value.
To meet the mandatory EU target for 2020,
Poland will have to open one 250 kW farm
biogas plant every day for the next seven
years, having only done 28 in the last ten
years. In the opinion of German and Polish
experts, constructing these plants to only
use farm waste and silage is not economically viable (it cost more to produce the
electricity than it can be sold for, even with
the full green certificate multiplier). The
draft law does not fulfill Poland’s commit-
Randy M. Mott
ment to meet the EU Directive. The draft
law will also not benefit 99% of all farmers,
who are too small to support a farm biogas
plant. Centralized biogas plants - taking
farm wastes from several farms and other
material to make it economical to operate - are a common European solution to
provide biogas benefits to smaller farmers,
but these plants will be difficult or impossible to build under the draft law.
The draft provides half of the green certificate value for plants that use meat and
food processing wastes, sewage sludge, and
household and restaurant food wastes,
even if they also use farm wastes. These
organic wastes are also required to be managed in a more rigorous fashion by new
EU rules and Poland lacks the infrastructure in most cases to do so. The National
Association of Gminas recognizes the
problem and has endorsed amending the
draft law to treat all organic wastes with
the same level of support as the law would
provide for swine manure. The commonsense approach has been resisted by the
Ministry of Agriculture, which is stubbornly ignoring everything but farmbased biogas plants for the small number
of potential farms that could theoretically
build them.
Problematic wastes from the processing
of meat, poultry and other food products
as well as sewage sludge can be treated in
biogas plants to kill the pathogens in the
waste and increase their value as fertilizer.
This approach is endorsed by every nongovernmental environmental organization, including GreenPeace, as well as the
European Parliament and Commission.
Yet the draft law cuts support for processing these materials to half of what a farm
using swine manure will receive.
Besides dramatically reducing support,
the draft precludes renewable energy producers from selling electricity to local direct users at higher than a flat price set by
the Ministry for grid sales. Even the full
green certificate values are only half what
Germany has provided in support for biogas, so the ability to sell the electricity at
better prices in the local market has been
a valuable incentive for the investment in
Poland. The proposal changes the current
law and greatly weakens the investment
incentives.
The solution to the problems for biogas in the proposal are simple. The draft
should add a new category of biogas: codigestion plants that handle all of the substrates covered by the EU Directive, including those mentioned above. Such plants
are more expensive to build and operate,
including waste pretreatment and sophisticated odor control systems. They should
receive at least the same level of support as
farm plants that handle much less difficult
material. The co-digestion plant category
is also essential to meet Poland’s obligations for organic waste management under
several EU Directives as well as the ambitious 980 MW target for biogas capcity in
2020.
Rather than a “roadmap” to their objective of 2,500 biogas plants in Poland by
2020, the Ministry’s proposal is the road to
nowhere.
Mr. Mott holds a Juris Doctor degree from
Georgetown University, Washington, DC and is
president of CEERES Sp. z o.o. – a Polish biogas
company. He is also on the board of the Polish
Economic Chamber for Renewable Energy.
19
www.bizpoland.pl
Energy
Shale gas
Poland to invest 50 billion pln in shale gas by 2020
Poland will invest 50 billion pln in the exploration of shale gas by 2020, said Finance
Minister Mikolaj Budzanowski in late
October. Investment over the next two
years will total 5 billion pln, which includes
a 1.6 billion pln shale gas deal agreed in
July by five Polish energy and mining
groups, Budzanowski told the press.
Poland’s current gas accord with Russia
expires in 2022, and although the deal can
be renewed, the government intends, in the
long run, to wean itself off of Russian gas.
“With the Russian gas accord terminating
at the end of 2022, we must be well prepared to
noticeably boost the exploitation of our own
gas fields three years earlier,” Budzanowski
said, adding that state money as well as private investment would be involved.
The National Geological Institute (PIG)
said Poland’s shale gas deposits (estimated
Nuclear
Will Poland stick to plan to build $15.8 billion nuclear power station?
Poland’s politicians continue to zig and
zag over plans for nuclear power. While
the government officially announced in
October that it plans to build its first nuclear power station, critics say that plans could
yet be scrapped.
The October announcement laid out
plans to spend about 60 billion pln on eight
new power plants, in Turow, Opole, Pulawy,
Blachownia, Stalowa Wola, Jaworzno,
Kozienice and Wloclawek.
Treasury Minister Mikolaj Budzanowski
told broadcaster TVP Info:
“There will be an additional 50 billion
pln spent on the power stations, but this
investment decision, and the choice of
technology, will come only in 2015”. He
added the company managing the nuclear
project has just started to seek a location
for the power station, a process which
should end in 2015 as well.
Poland’s push to develop nuclear
power comes as it is squeezed from both
the East and the West – with Brussels
and the EU pushing Poland to reduce its
reliance on heavily-polluting coal, and
in March at 1,920 billion cubic metres of extractable shale gas deposits) are the third
largest in Europe after those of Norway
and the Netherlands.
Poland burns 14 billion cubic metres of
gas a year, two-thirds of which come from
Russia. The government expects extraction
to begin in 2014. Energy groups contend
that the extraction and exploitation of
Polish shale gas could not only allow lead to
gas energy independence, but also provide a
considerable source of export revenues for
the government.
continued high natural gas prices from
Russia. The geo-politics of any nuclear
decision are further complicated by
Germany’s recent decision to abandon
nuclear power, and the still-unproven
yet substantial potential of Poland’s
huge shale gas reserves.
The current nuclear plans are to
launch a 3 gigawatt nuclear plant by
2023 and double that capacity by 2030.
Several large multinationals are keen
to win the contract to supply technology for the project, including the U.S.Japanese group GE Hitachi, France’s
Areva and Westinghouse, a U.S. unit of
Japan’s Toshiba.
Coal
Coal price slump heralds slow-down
20
While the political battles continue to
rage over nuclear power and shale gas,
Poland’s tried-and-true coal mines continue to spew out low-cost energy, and
high profits for its owners, despite slumping prices.
Coal miner Bogdanka, according to acting
CEO Zbigniew Stopa, said that 2012 profits
are on track to exceed 300 million pln, and
that 2013 should exceed that level. While
coal prices has slumped in recent months,
Bogdanka is producing more coal, which
offsets the price decline. Bogdanka plans
to produce over 8 million tonnes of coal this
year and increase this to 9 million tonnes in
2013, aiming for 11 million tonnes in 2014.
Bogdanka, which listed on the Warsaw
Stock Exchange in 2009, is currently in talks
with key customers- mainly local power stations - on the price of coal supplies for 2013.
Mr Stopa said that the talks were difficult because power prices in Poland have
slumped in the past few months and power
stations are trying to pass this on to coal
suppliers. “I would compare the current
situation to the one from the end of 2008,
when power stations were exerting a lot of
pressure on lowering prices.” But he also
said prices actually only came down slightly in the end.
He said that “We are now working on a
financial plan for next year and everything
shows that we will at least maintain net
profit at this year’s levels. I cannot confirm
that our profit in 2012 will come close to
the 350 million zlotys forecast by analysts,
but over 300 million zlotys is a sum that
does not shock me at all.”
The group had to cope with a big rise
in inventories in mid-2012. “Power stations are trying to delay the deadlines for
delivery as they have a lot of coal on their
own stocks. He expected the company’s
reserves would stand at around 50,000
tonnes at the end of the year”, he said.
November 2012
www.bizpoland.pl
Energy
Wind
Poland’s wind industry is preparing a lastditch attempt to persuade politicians to
amend proposed renewables legislation that
it claims is seriously flawed and could hamper development.
Polish Wind Energy Association (PWEA)
deputy director Arkadiusz Sekscinski claims
that in its current form, the RES Act – which
will be debated in parliament in November –
“will bring green-energy development in our
country to a halt and will force many renewables investors to withdraw”.
A major concern centres on the draft
law’s impact on the system of tradeable
“green certificates” awarded to buyers of renewable power.
Under the proposals, the national regulator
will set an upper limit to the price to be paid
for renewable power by Poland’s so-called
“suppliers of last resort” — electricity distributors that are obliged to buy renewables
output from areas of the network they service.
The draft RES Act says any purchasers of
renewable power paying above that figure
will lose the accompanying green certificates, and the revenue that goes with them.
Market observers have noted that the
penalty imposed on power sales above the
regulated price could have a serious impact
on the viability of current or future powerpurchase agreements.
The Ministry of Economy wants the act to
be implemented from 1 January 2015.
Sekscinski says the PWEA “has done
what it can with the ministry, but we have
faced a brick wall”. The association has
commissioned an independent study from
PricewaterhouseCoopers into the problems
surrounding the bill, including transitional
arrangements for current investments.
It is understood that Dong Energy and
Iberdrola are considering plans to exit the
country. “The position is not yet totally clear,
but both companies are actively considering
which wind markets they want to be in,” says
one analyst.
Offshore windfarm gets grid preference
Poland’s political preferences for offshore
wind over onshore are increasingly obvious, as illustrated by the agreement in late
October by grid operator PSE Operator to
connect top utility PGE’s planned offshore
windfarm on the Baltic Sea to the country’s
power system. PSE Operator has repeatedly
told onshore wind farms that it lacks the
technical capacity to add more wind capacity.
The farm, with a potential capacity of
1045.5 megawatts and expected to start
operations in 2019, is the second offshore
windfarm that PSE has pledged to connect
to the grid.
State-controlled PGE, the leader in
Poland’s fledgling offshore wind industry,
has won permits to launch three wind farm
projects with a combined potential capacity
of 3.45 gigawatts. PGE’s long-term strategy
calls for the generation of 1 gigawatt in offshore wind power by 2020 and another gigawatt by 2025.
Although Poland currently has no operational offshore wind farms, wind-industry
insiders say that offshore wind is the “big
gun” that can help Poland reach its EUmandated target of 15% of energy generated
by renewables by 2020.
The Baltic Sea, with its relatively strong
wind and shallow, calm water, offers plenty
of potential for generation of offshore wind
power. Industry-insiders have said that
the concessions for offshore wind were generally awarded to large Polish companies,
which lack the technology, but will enter into
partnerships and joint ventures with large
international wind groups, which will bring
both the technological prowess as well as the
substantial financial resources required to
develop offshore wind.
Vestas receives order for delivery of
40 MW to Poland
Aldesa Nowa Energia Sp. z o.o., is a fullyowned subsidiary of the Spanish Aldesa
Group focusing on construction, renewable
energies, engineering, real estate, auxiliary
services and concessions.
The second largest utility in Poland,
Tauron Polska Energia S.A., is the end owner
of the Wicko wind power plant. This is the
second project in 2012 with Vestas turbines
and Tauron Polska Energia as the end owner.
Earlier this year, Vestas turbines were selected for a project only 50 km away from Wicko.
Poland is one of the most attractive
wind energy markets in Europe due to its
excellent wind speed conditions in large
parts of the country and the outlook for a
growing Polish market. According to IHS
Emerging Energy Research, Poland has
the potential of reaching 7 GW of installed
capacity by 2020. This is also underlined
in the Polish National Action Plan for
Renewable Energy adopted by the Ministry
of Economy.
“Poland is one of the key markets for Vestas
in a global perspective. We are very happy
to be chosen as supplier of turbines for the
Wicko project,” said Klaus Steen Mortensen,
President of Vestas Northern Europe.
for now in the phase of preparations,
Pulpanova said.
CEZ wants to obtain a building permit for the wind farms next year. The
company could start to build the power plants next year already, but the
year 2014 is a more likely date for the
launch of construction, according to
Pulpanova.
It is now difficult to estimate the date when
the power plants will be launched into operation, Pulpanova said. CEZ is not producing
electricity from wind energy in Poland now.
CEZ bought a majority stake in Polish developer of wind parks Eco - Wind Construction in
December 2011. The developer has a total of 15
projects in its portfolio that have a total capacity of up to 700 megawatts.
HUSUM WindEnergy trade fair. The turbines, each with a rated power of 2.05 MW,
are intended for the Taczalin project near
Legnica in Lower Silesia. Construction and
commissioning of the wind farm, which
will have a total power output of 45.1 MW,
are scheduled for completion in August
2013. In August 2011, Dresden-based WSB
commissioned a wind farm near Opole, its
first in Poland. REpower has already set up
two service support points in Poland for the
maintenance of its turbines installations.
Polish wind industry fights to change ‘flawed’ legislation
Vestas has received an order from Aldesa
Nowa Energia Sp. z o.o. for delivery of 20 units
of the V90-2.0 MW wind turbine for Poland.
The order has a total capacity of 40 MW and
the turbines will be installed in Wicko in the
Pomeranian province near Gdansk. Delivery of
the turbines is scheduled to start in the second
quarter of 2013 and the project is expected to
be completed in the third quarter of 2013. The
order includes supply, installation and commissioning of the turbines, as well as a threeyear service and maintenance agreement.
Czech ČEZ re-commits to Poland,
plans 600 MW wind farms
CzecheEnergy company CEZ wants to
build wind farms with a capacity of 600
megawatts in Poland by 2017. But CEZ
spokeswoman Barbora Pulpanova said
that it is difficult in this phase to estimate what the output of the power plants
will be within five years. The project is
REpower sells 22 wind turbines to
WSB for Legnica project
Suzlon Group- subsidiary REpower Systems
SE and WSB Neue Energien GmbH signed a
contract for the delivery and construction
of 22 REpower MM92 wind turbines at the
2012 November
21
www.bizpoland.pl
Energy
Solar boom coming to Poland
According to research
company eclareon, solar in
Poland amounted to under 1%
of installed renewable energy
capacity in 2011, with less
than 2 MW of PV connected
to the grid.
Solar and PV set to be big winner
from new RES law
Poland is expected to introduce a new
Renewable Energy Sources (RES) Act during next year, and the law will see the
introduction of a specific PV support
scheme, which will likely strongly boost PV
development and investment.
While the new law is meant to come into
force in January 2013, some believe it will
not enter into law until at least the second
quarter of next year. Christian Schnell, a
Polish lawyer working at DMS DeBenedetti
Majewski Szcześniak: “I don’t expect the
law to be fully in place before the second
half of 2013. The notification process with
the EC usually needs at least half a year,”
he states.
Even less optimistic is CEO of Polish
company Easy Solar, Marcin Dolata, who
believes the law may only come into force
at the end of 2013. Having already laid out
guaranteed by the grid operator and based
on the average price of electricity from the
previous year. In 2013, this will be around
€0.05/kWh.
Stanislaw Pietruszko, President of the
Polish Society for Photovoltaics tells pv
magazine he has suggested to the government that a Feed-in-Tariff (FIT) should be
made available for systems up to 5 MW.
In addition to the higher tariff, another
sign of the government’s preference for
systems up to 100 kWp, is the introduction
of simplified licensing procedures. For instance, while a renewable energy developer
Despite uncertainties regarding
the implementation of the law,
and grid connection issues,
the PV investment
landscape appears healthy.
22
a plan on the back of the promised PV support, he has had to apply the brakes until
it is known when the act will be passed. As
currently laid out in the RES Act, remuneration for PV systems under 100 kWp will
be paid by state-owned electricity offtakers (the so called “supplier of last resort”),
and will comprise the maximum price for
green certificates (GCs) – instead of around
95%, as is the market norm taking into account the compensation fee – multiplied by
a “correction coefficient,” and coupled with
payment for renewable electricity, which is
must currently apply for a license enabling
it to generate and sell electricity, and register as a commercial activity – both of which
are said to represent “major obstacles” –
under the proposed new law, systems up
to 200 kWp will not require this license,
and Microsystems under 40 kWp will not
have to register as a commercial activity.
Pietruszko adds that grid connection for
microsystems will be free and obligatory,
and that a building notification or permit
for systems under 40 kWp will not be required if their height is lower than 3 meters.
While current capacity is negligible, the
new RES measures will boost PV’s Polish
presence. Aimed to boost the uptake of
PV systems up to 100 kWp, the government has devised a feed-in tariff (FIT) of
1.1 Polish zloty (PLN)/kWh for at least the
first 2 years.
Tradable on the Polish Power Exchange,
electricity companies must accumulate
enough Green Certificates (GC) to reach
their quota targets as laid out by the country’s energy act. All renewable energy systems, regardless of technology, received 1
GC for each
MW of renewable energy produced.
“This promoted the deployment of the
most cost-competitive and mature technologies, meaning other, more costly renewable energy technologies [like PV]
were not deployed,” says consultant Anna
Poblocka. To mitigate this situation, the
new correction coefficients have been devised to favor certain renewable technology, which will then be used to determine
the amount of certificates to be issued.
Unlike previously, the amount of GCs will
also depend on the size of the plant and
the date of its commissioning. “The correction rates for 2013 are expected to range
from 0.3 per MWh for biomass cofiring in
coal power plants, to 2.85 for photovoltaic
plants,” continues Poblocka.
Too generous
According to Pietruszko, the current rates
for PV systems above 100 kWp are very generous. “If you compare this with the situation
in Germany, where big systems now have
rates below 18 euro cents … one can expect
November 2012
www.bizpoland.pl
that there will be a big run to the Polish market,” he says, adding that the coefficients for
bigger systems should be reduced to avoid a
boom and bust situation. Less concerned is
Schnell: “€0.23 … is too much – everybody
should know that. But maybe to boom the
market at the beginning is a good idea.” He
believes that since the next coefficients will
be published in 3 years, based on the market situation at that time, and enacted in 5
years, there is a “window of opportunity”
for developers. “The next correction coefficients … will be substantially lower,” he adds.
Schnell’s main concern is GC oversupply.
“The moment you have oversupply, of course
the certificate prices fall,” he says. “The system here is such that if you don’t have the
amount of certificates you should have, due
to the quotation obligations … you have to
pay a compensation fee for the rest.” He explains that electricity producers are looking
to buy certificates for around 95 to 97% of the
PLN 286.74 per MWh compensation fee.
Energy
as contractor and, in certain cases, as coinvestor. Project sizes will range from 100
kW to 30 MW, and locations will cover the
northwest and southeast of the country.
Meanwhile, Easy Solar has begun laying the
groundwork for its PV projects. Originally,
it had planned a pipeline of 20 and 25 MW,
comprising a 10 MW project for a third party, and a series of self-owned 5 MW projects
for installation in 2013 in the center and
western parts of Poland. But, following the
delay of the RES Act, the company’s plans
are on hold and it has instead strengthened
its focus on the development of a partner
network, with the aim of building the largest PV distribution network in Poland.
While he declined to divulge details,
Parabel Solar’s Siegfried Kowalewski said
the Germany-based company will also
be working on crystalline PV projects in
Poland. “It’s a big opportunity for Parabel
… considering the small geographical dis-
is to connect to the regional 110 kv or local
20 kV grid. “This is in the hands of a few
regional grid operators – all state-owned –
and these guys are very reluctant when it
comes to connecting something to the grid,”
says Schnell. He continues, “Everybody
right now who is applying for new technical grid connections either gets a no-go,
or gets a go but with heavy investments in
extending the 110 kv grid. And these are
investments of up to €10 million. This is
something which pays off for a 70, 80, 90
MW wind farm, but not for a 5 to 10 MW
PV farm.” Pietruszko goes on to say, “Many
people are applying for the connection conditions and this paper is valid for 2 years if
you don’t sign the grid connection contract,
so it means that even if they don’t start
building the systems they have booked the
capacity which other people
then can’t use. This is not good.”
Fortunately, there are a few locations in
tance from Parabel’s locations to potential PV sites, which allows quick response
supported by its long term experience in
ground-mounted PV power plants.”
France-based Senersun has just closed
a 23 MW module supply contract with
Poland’s Solar-Bau. A spokesperson for
Senersun tells pv magazine the company expects to see shipments increase to
the country, in part due to the new law.
However, its aim is to develop its partnership with Solar-Bau to strengthen its
Polish presence “with or without incentives.” Current project costs are said to be
between €1.2 to €1.4/W.
Poland, which are not dominated by wind,
namely in the southwest. “Here you have
quite a good grid, you don’t have wind, so
there’s a big chance to connect 5 to 10 MW
PV farms,” explains Schnell.
Government vs. industry
On the matter of oversupply, eyebrows have
been raised over the government’s installed
PV capacity target of 600 MW by 2020.
Overall, it expects just 50 MW to be installed in 2012, and that annual growth shall
not reach more than 90 MW until the end
of the decade. Responding to the targets,
Easy Solar’s Marcin Dolata tells pv magazine they are too low and underestimate the
ability of the PV industry. He predicts over
400 MW will be installed in the first year
alone, and that by 2020, 1 to 2 GW could be
in place. Schnell, Pietruszko and eclareon
are also skeptical of the government’s low
expectations, and Pietruszko suggests that
by 2020, 1.8 GW could be installed.
Taking a more neutral stance, Janusz
Starościk head of the Polish heating organization SPIUG says, “There are no reliable
forecasts … The potential is so big that 600
MW till 2020 seems to be underestimated.
On the other side, there are only about 2
MW of PV officially connected into the
grid … There are big expectations of private potential producers, who want to install PV to produce energy in Poland. We
hear even about uncontrolled explosion of
new installations, in case start of the new
RES law. Those high expectations could be
confronted with reality.”
Many in the industry say they intend to
focus on systems between 1 and 10 MW. “It
is supposed to be quite easy to get project
finance for a 1 to 5 MW solar park,” says
Christian Schnell, who expects the majority of new installations to fall within this
range, at least in the beginning. KRD is
already working on PV projects in Poland
2012 November
Biggest bottleneck
Everyone is in agreement that the biggest
bottleneck to Poland’s PV development is
grid connection. As Schnell tells pv magazine, it is currently too costly to connect to
the 220 or 400 kilovolt (kv) grid, due to the
massive “ghost capacities” from the wind
industry, said to total up to 10 GW. There
is very limited capacity available for new PV
projects, and one of the only viable options
Bank financing for solar
Despite uncertainties regarding the implementation of the law, and grid connection issues, the PV investment landscape appears
healthy. According to Schnell, a few first
mover banks, including Austria’s Raiffeisen
Bank and Germany’s DZ Bank are said to be
interested in following their clients when it
comes to PV in Poland. Danish-Norwegian
bank DNB Nord and Rabobank subsidiary,
BGZ are also keen to finance projects.
The second movers, meanwhile, are
said to be Commerz Bank, Nord LB and
HypoVereinsbank subsidiary, PeKAO.
Overall, the PV industry – a virtually
non-existent industry in Poland - appears
pleased with the proposed changes to
Poland’s RES Act, which will encourage
rapid investment in the sector.
Source: pv Magazine
23
www.bizpoland.pl
FDI News
Chinese–Polish economic
cooperation
In late October, the China Chamber of
Commerce for Import and Export of
Machinery and Electronic Products and
Poland’s PAIZ hosted 30 Chinese companies at an event to strengthen PolishChinese economic relations, dubbed
“China-Poland Trade and Investment
Cooperation Forum”.
The event was attended by large
Chinese companies, such as China State
Construction Engineering Corp, Harbin
Electric, and China Railway Signal &
Communication Corp.
Following a morning session on opportunities in Poland for Chinese in key sectors such as energy, infrastructure, automotive and construction sector, business
matchmaking sessions introduced Polish
firms, such as Tauron Power and Orion
Electric. “We meet at the moment of discovering Poland by China and China by
Poland. We are happy that we can be part
of this process. Polish companies have begun to pay more attention to cooperation
with China. The interministerial GoChina
program contributes to it”, said Slawomir
■
Majman, President of PAIZ.
China Trade and Investment Promotion Delegation to Poland
Shi Yonghong
China Chamber of Commerce for
Import and Export of Machinery and
Electronic Products; Vice President
Jin Luolan
China Chamber of Commerce for
Import and Export of Machinery and
Electronic Products; Director
Sheng Guofei
China Chamber of Commerce for
Import and Export of Machinery and
Electronic Products; Staff
Zhang Xutao
China Chamber of Commerce for
Import and Export of Machinery and
Electronic Products; Staff
Hu Weidong
Dongfang Electric International
Corporation; Vice President
Yuan Xuemin
China Tianchen Engineering
Corporation; Vice President
Sun Baishuang
China Tianchen Engineering
Corporation; Regional Manager
Wang Wei
Sinoma International Engineering
Co.Ltd; Chairman
Li Qin
Sinoma International Engineering
Co.Ltd; Senior Manager of Investment
Management Department
Li Jiqin
China State Construction Engineering
Corporation Ltd.; Overseas Operations
Managing Director
Wang Yuhang
Sun Yang
China CAMC Engineering Co.,Ltd; Vice
President
Liu Jiadan
Beijing Peony Electronic Group Co.,
Ltd; deputy chief engineer
Deng Qiang
China CAMC Engineering Co.,Ltd;
Manager of department 9
Ding Zhengguo
Power Construction Corporation of
China; Assistant to Group President
Xu Shouting
China IPPR International Engineering
Corporation; Vice-President
China Railway Signal &
Communication Corp. Ltd; Deputy
General Manager of CRSC
International Co., Ltd
Yun liang
SINOHYDRO Group Ltd.; Executive
Vice President
Luo Huiyan
TBEA Co.,Ltd
Zhang Yuanling
China National Corporation For
Overseas Economic Cooperation;
Deputy General Manager
Hong Jiaqing
Assistant G-M
TABARA INESA TBEA Co.,Ltd; Project
Manager
Xu Xianglin
China National Corporation For
Overseas Economic Cooperation;
Dept. Deputy General Manager
Cao Xisen
Shandong Luneng Mount Tai Electric
Equipment Co., Ltd; Chairman of
the Board
Li Yuhao
Shandong Luneng Mount Tai Electric
Equipment Co., Ltd; General Manager
of Dept.
Zhang Xiao
Taishan Group TaiAn Boao
International Trade Co., Ltd.; General
Manager
Shi Li
China Gezhouba Group International
Engineering Co. Ltd.; Vice President
Shanghai Linde Hotel Equipment
(Shanghai)Co.,Ltd; President
Zhang Liwei
Harbin Electric International Company
Limited; Vice President
Liu Zhizhuo
Harbin Electric International Company
Limited; Deputy manager
Jin Jiansheng
GuangZhou CityStar Logistics co.,LTD;
President
Wu Jiyan
GuangZhou CityStar Logistics co.,LTD;
Market General Manager
Pan Qinping
Guangdong JinTairong medicine Co.,
Ltd.; General Manager
China Trade and Investment Promotion Delegation to Poland
Brief introduction of delegation members
China Chamber of Commerce for Import and
Export of Machinery and Electronic Products
Supervised by Ministry of Commerce of China, CCCME is one
of the largest and leading chambers of commerce in China.
Now it has nearly 10,000 members.
Dongfang Electric International Corporation
The main business of Dongfang Electric International
Corporation involves power generation, power distribution and
transmission, environmental protection, traffic and transportation, etc.
China Tianchen Engineering Corporation
TCC provides engineering consultant, design, procurement,
construction management and commission supervision of
chemical projects.
Sinoma International Engineering Co.Ltd
Sinoma International provides service ranging from cement
technology, equipments manufacturing to engineering, and
enjoys integrated industrial chain resources.
China State Contruction Engineering Corporation
Ltd
The core businesses of CSCEC range from building construction, international contracting, real estate development &
investment, infrastructure to design & engineering.
China CAMC Engineering Co.,Ltd
CAMCE’s business mainly covers engineering procurement
construction (EPC) projects, domestic and foreign investment,
and international trade.
Power Construction Corporation Of China
Power Construction Corp China is a mega-scale power
construction company capable of providing one-stop service
in various power sectors. Its world-class technical edge
covers planning, survey, design, construction and operation
in hydropower, thermal power, renewable energy, power grid
and infrastructure.
China IPPR International Engineering Corporation
IPPR possesses Qualification of Comprehensive Engineering
Design Grade A, able to undertake engineering design for
all industries and all levels and perform general contracting
for engineering project and project management involving
21 fields such as architecture, machinery, medication, ship,
weapon, municipal facilities, commerce, chemical engineering,
energy, building materials, light industry, etc
China National Corporation For Overseas
Economic Cooperation
We have successfully undertaken to provide goods, equipment
and technical services to more than 600 overseas development projects funded under Chinese foreign-aid schemes
in various fields ranging from energy, light and chemical
industries, telecommunication, transportation and agriculture
to culture, sports, health care and urban construction, winning
praises from both the Chinese government and governments
of the recipient countries.
Shandong Luneng Mount Tai Electric Equipment
Co., Ltd
The company has oversea project contracting qualification by
itself, and has participated in EPC of foreign thermal power
plant (300WV), transmission lines and substations with State
Grid and LuNeng Power Construction Group.
Taishan Group Taian Boao International Trade Co.,
Ltd
Taishan Group is a large state enterprise group which is a
major designer and manufacture of industrial boilers, utility
boiers, pressure vessels, electrical equipment, cable circuit
technology, ship exhaust cooling and other products.
China Gezhouba Group International Engineering
Co.,Ltd
Gezhouba is the highest in China’s international contracting
sector and machinery and electronic products import and export sector, and has built more than 100 large and mediumsized hydropower stations including the world-famous Three
Gorges Project and more than 4,000 projects of various kinds
including nuclear power projects, thermal power projects,
wind power projects, airport projects, railway projects,
expressway projects, port projects, embankment projects, civil
architecture projects, municipal public projects, etc.
Beijing Peony Electronic Group Co., Ltd
Being engaged in DTV industry, PEONY GROUP extended
its four business scope to components, new display devices,
system solutions and detection technology.
China Railway Signal & Communication Corp. Ltd
CRSC focus on the system of signaling, communication,
informatization, power supply, traction power and automatic
controlling in the field of transportation, also engaged in the
field of housing and building, public works, road, bridge and
tunnel.
SINOHYDRO Group Ltd.
SINOHYDRO is a global enterprise active in engineering &
construction, power investment, real estate, and M&E.
TBEA Co.,Ltd
TBEA represents the world’s third largest global transformer
supplier and one of the biggest Chinese manufacturing and
exporting base of photovoltaic systems and products, as well
as of electronic new materials..
Shanghai Linde Hotel Equipment Co.,Ltd
The company has been working in hotel facility industry for
15 years.
Harbin Electric International Company Limited
HEI is primarily engaged in the supply of complete sets of
equipment, the undertaking of EPC project, and the construction of relative substation, transmission lines, and other
utilities in the area of thermal power plants, hydroelectric,
and combined-cycle power plant projects. HEI also provided
comprehensive professional after-sale service for the power
plant..
GuangZhou CityStar Logistics Co.,LTD
City Star Services products Intercity Automotive general
pieces, fine pieces, Army aviation parts and so on.
Guangdong JinTairong medicine Co., Ltd.
Company JinTairong specializes in pharmaceutical, wholesale
distribution, pharmaceutical marketing.
24
November 2012
www.bizpoland.pl
FDI News
Brazil and Colombia tempt tourists
and investors
Ambassadors from Colombia and Brazil
met at the PAIZ investment promotion
office with Deputy Minister of Foreign
Affairs Beata Stelmach in mid-October
to highlight the opportunities for Polish
companies.
During the meeting, HE the
Ambassador of Colombia in Poland,
Mrs Victoria Gonzalez Ariza and HE
Ambassador of Brazil to Poland, Mr
Jorge Geraldo Kadri along with representatives of the institutions responsible for the promotion of the economy
presented economic potential and investment offer of both countries.
Colombia’s economy grew by 4% in 2010,
and since 2003, the index of foreign direct
investment increased by 669%, from USD
1.72 billion to USD 13.234 billion in 2011.
Exports have boomed, increasing by 73%
in the last three years.
Brazil has become one of the leading
world-wide recipients of FDI in the last
decade. In terms of the value of investment attracted, Brazil has trailed only the
United States, China and Great Britain.
Brazil is a leader in renewable energy and
the third largest producer of passenger aircraft. Among the key advantages of Brazil
is a huge internal market.
The conference was organized by the
Ministry of Foreign Affairs represented at
the meeting by the Secretary of State, Mrs
Beata Stelmach, the Embassy of Colombia
in Poland, the Embassy of Brazil in Poland,
PAIiIZ and Proexport Colombia - the body
responsible for the promotion of investment, export and tourism of Colombia.
Beata Stelmach, Deputy Minister, Ministry of Foreign Relations
In late November, PKPP Lewiatan is organizing a delegation for Polish entrepreneurs to Brazil and Colombia.
Fortitech opens new vitamin plant
near Poznan
American company Fortitech officially
opened its new plant in Buk, near Poznan,
in early October. Fortitech manufactures
vitamin premixes for the food industry,
supplying the biggest producers in 60 countries. The new, 7000 sqm plant with annual
capacity of 5,000 tons, is the third biggest
Fortitech site in the world. Together with
another plant in Denmark, Buk will supply
the growing base of customers in Central
and Eastern Europe. The company employs 20 people, with a target headcount of
100. The value of the investment is USD 11
million. The decision to locate in Buk was
due to a combination of factors, including
positive investment climate, proximity
to Poznan, availability of skilled and talented labor force as well as ideal positioning with regard to major transportation
routes. Fortitech is the 25th company that
has located its production in the “Buk”
Industrial Park.
Euro-Park WisłoSan Economic Zone
lands new sawmill investment
Swedwood Poland will invest about 33 million pln in the Tarnobrzeg Special Economic
Zone Euro-Park WisłoSan.
Swedwood
Poland Sp. z o.o. - in the sub-section Stalowa
Wola – will build a plant for sawmill activities, on about 26 hectares of land. The
company produces prefabricated furniture
parts. Cut timber from Stalowa Wola will
be used for the production of furniture in
Swedwood factories worldwide. The new
plant will employ at least 40 employees.
It is the 228th permit issued by ARP SA
to operate in the Zone, representing a total
of 7 billion pln investment and employing
more than 20,000 people.
Japan-Poland seminar
The Japanese embassy and JETRO, together with PAIZ, hosted a one-day seminar in
late October to encourage further investment and trade ties between Poland and
Japan, entitled ““How to stimulate and
broaden the Japanese-Polish economic
relations?”.
2012 November
25
www.bizpoland.pl
FDI News
Japanese investors in Euro-Park
Mielec SEZ
Euro-Park Mielec Special Economic Zone
has landed its first Japanese investor
from the automotive industry. ARP SA issued permission to Japanese company TRI
(Poland) to operate in the Subzone Zagórz
of SEZ Euro-Park Mielec. TRI will invest
11 million Euro to start production of rubber and plastic products for the automotive industry. The planned product range
includes engine suspension components,
bodywork, polyurethane shields and covers for engines and transmission. The first
products will leave the production belt in
August 2013, and the company expects to
employ about 200 employees by 2015.
TRI Group (Tokai Rubber Industries)
was established in Japan in 1929 and
quickly became a leader in the manufacture of automotive anti-vibration parts.
TRI (Poland) was established in 1999 and
is one of the leading manufacturers of anti-vibration and soundproofing parts for
cars.
Cosmetics packaging investment of
180 million pln
In Zgorzelec Subzone of Kamiennogórska,
the Aerosol International company, linked
with the MAXIM capital group - one of the
largest European manufacturers of cosmetics, will begin construction of a modern production facility for aerosol packaging.
The Zgorzelec zone has attracted direct
investment of 1.76 billion pln, which has
created 4800 manufacturing jobs. This
new investment will be built on six hectares of land, and the investment amount
will exceed 180 million pln and create
more than 300 jobs. International Aerosol
company uses innovative technology to
produce packaging. In Zgorzelec, the firm
will open an R&D center. Thanks to its
innovative technology, the company annually produces about 100 million seamless
cans. The production will supply MAXIM
group needs on packaging for manufactured cosmetics, which are sold in more
than 40 countries around the world. This
investment is the first “seed” in a planned
cluster, aimed to attract cosmetic packaging firms using modern technologies.
Chassis Brakes International
Chassis Brakes International (CBI), one of
the world’s largest manufacturers of automotive foundation brakes and brake components, initiated the construction of a
production plant in Mirkow near Wroclaw
in October. The value of the project is €13.5
million, and it is expected to start operations in August 2013. CBI is the former
foundation brakes business of Bosch,
which in June 2012 was acquired by KPS
Capital Partners in a global deal. The transaction covered brake production operations at Bosch’s facility in Mirkow. These
activities will now be moved to a separate,
new plant erected for CBI. Whether the
relocation brings new jobs will depend on
the outcome of large contract tenders the
company is currently participating in, said
Wojciech Sliwinski, head of CBI’s Wroclaw
unit. CBI has 21 manufacturing facilities
and engineering centres in Europe, Asia,
and South America and employs approximately 6,000 people worldwide.
Beef investor in the Łódź Special
Economic Zone
26
Beef-Beef Company will start business in
the Łódź Special Economic Zone. The firm
plants to process (yes, you guessed it) beef.
The firm plans to invest at least 70 million
pln to build a 29,000 sm facility, and will
employ at least 100 workers.
Precision-cutting plant in
Kamiennogórska sub-zone
The company “Motyl” s.c. – a unique worldwide manufacturer of ultrathin grinding wheels used for precision cutting and
processing - has been authorized to set
up business in the special economic zone
Europark Mielec S.A. - Lubartów Subzone.
PAIZ boasts of another 400 jobs in
high-tech sectors
Three more companies recently announced
plans to invest and create antoher 400
jobs, in the BPO, R & D and aviation sectors. Currently, the PAIZ Agency is working on 149 projects, with could lead to new
investment of 6 billion euro, and additional 37,000 jobs.
There is no change in the list of the largest
investors looking at new projects in Poland:
the United States still leads with 31 projects
(EUR 738 million, 6,049 jobs). Next countries are Germany with 18 projects (EUR
543 million, 4,429 jobs), United Kingdom (16
projects, EUR 191 million, 2,849 jobs), China
(11 projects) and France (5 projects).
There was slight change among the most
popular sectors. In the first place remains
automotive industry (28 projects, EUR
2,098 million, 13,869 jobs), BPO (26 projects, EUR 29 million, 7,043 jobs), ICT and
machinery (10 projects each), R&D and
chemical industry (9 projects each).
So far in 2012, PAIZ has already closed 36
investments, with a total value over 1 billion euro. The projects will create in Poland
at least 6,559 new jobs in the near future.
November 2012
www.bizpoland.pl
Kazakh - Polish Economic Seminar
The Polish-Kazakh Economic Seminar
was held in late September in Astana, and
included a visit by Deputy Prime Minister
and Minister of Economy Mr Waldemar
Pawlak.
The aim of the seminar, in cooperation
with PAIZ, was to introduce investment
offers between Poland and Kazakhstan
as well as strengthen bilateral economic
cooperation. The presidium was seated
by Prime Minister Mr Waldemar Pawlak,
Mr Rapie Żoszybajew - Secretary of the
Ministry of Foreign Affairs of Kazakhstan
as well as President of PAIZ - Mr Slawomir
Majman and Vice President of Kazakhstan
Chamber of Commerce and Industry - Mr
Erenow Ajan, who served as moderators
of the meeting. The speakers’ presentations focused on the investment potential
between Kazakhstan and Poland, including the World Expo to be held in Astana in
2017, and the experience of Polish companies investing in Kazakhstan.
After the official speeches, match-making sessions and bilateral talks between
Polish and Kazakh businessmen and representatives of business organizations
were held.
The seminar was also an opportunity to
sign cooperation agreements between the
Polish-Kazakh Chamber of Commerce and
the Union of Poles in Kazakhstan as well as
between companies Kazakhstan Opalubka
ULMA and AstanaSerwisStroiMontaz, as
well as Krusz service and PSK M-Tunes.
The seminar was organized by PAIiIZ,
the Chamber of Commerce and Industry
2012 November
FDI News
of the Republic of Kazakhstan as well as
Kaznex Invest.
Medical tourism promoted to international journalists
Foreign journalists came to Poland to
hear about the potential for medical tourism projects, including Polish healthresorts and clinics. The program, held in
late September, including study-tours to
Warsaw, Krakow, Wieliczka and Wieliszew.
Journalists met the representatives of
the Carolina Medical Center, Cyberknife,
DENTestetica and “Wieliczka” Salt Mine.
These institutions are involved in the
promotion of Polish medical tourism, and
supported by EuCP and Ameds Centre.
The delegation included representatives
of media journalists from the UK, Sweden,
Denmark, Germany, Russia and the United
States - countries identified as priorities in
promotion of Polish medical tourism.
More investors attracted to
Szczecin special economic zone
Over 200 jobs as well as PLN 20 million of
new investment are coming to the Szczecin
area, as a result of two large investors,
who plan to operate on ul. Struga in the
Szczecin Special Economic Zone.
Szczecin announced the sale of two plots
within the Special Economic Zone. One of
the investors is Sanger Metal Ltd from
Szczecin, which purchased a 5,000 square
meter plot. The company specializes in
manufacturing devices used for lifting and
securing freight. The company plans to
build a 2500 square meter production hall
with adjacent offices. The estimated investment value is around PLN 3.8 million.
The company plans to employ 47 people
by the year 2016, and plans to start operations in the new manufacturing plant in
mid-2014.
By the end of the year 2013 another company from Szczecin is planning to finalized its new investment. HLK Dekoracja
Okien Ltd. plans to build a 8000 square
meter manufacturing hall and 800 square
meter offices, on a 3 ha plot. The estimated
value of the investment is around PLN 16
million. By 2016, the company said it will
employ almost 200. It is also implementing
a first on the Polish market – an innovative system of building automation, which
is tailored to the interior window rollerblinds industry.
16th Polish-Belarusian Economic
Forum
In October in Minsk, the 16th
Polish-Belarusian
Economic
Forum
“Neighborliness 2012” under the theme:
“Energy, agriculture and finance as the
main source of growth of the BelarusianPolish economic cooperation” was held.
The Forum was held under the auspices of the Ministry of Economy and
the Ministry of Agriculture and Rural
Development of the Republic of Poland
and the Republic of Belarus.
There were two plenary sessions, as well
as three special seminars devoted to the
energy industry, renewable energy and cooperation opportunities and conditions in
financial institutions. The event coincided
27
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FDI News
with the opening of the “Energy Expo 2012”
International Fair and Exhibition, devoted
to industrial power generation and renewable energy.
“Neighborliness 2012” was organized
by the Polish-Belarusian Chamber of
Commerce and Industry, the Belarusian
Chamber of Commerce and Industry
as well as the Department of Trade and
Investment Promotion of the Polish
Embassy in Belarus. Strategic partner of
the project was the Agricultural Market
Agency.
Biomedical center opens near
Poznan
In Złotniki near Poznan, Nickel
BioCentrum has opened a new biomedical center, housed within the Nickel
Technology Park Poznań (NTPP), which
has more than 4,000 square meters of
class laboratory and office space for the
sector. PTB Nickel construction company is responsible for the 22 million pln
investment.
“Nickel BioCentrum is another step in
our ongoing projects that support the development of Polish biotechnology, medical and Life Sciences. Our park, among
others, is the founder of the Association
of Wielkopolska BioRegion, as well as
Nickel BioCentrum and the Nickel
Technology Park Poznań specialize in activities to support the development of the
IT sector and bio-business.
New regional park and the first
investor in Gryfino
Dagmara Nickel, president of NTPP,
for the last two years the organizer of
international biobusiness meetings BIOCONNECT conference”, said Dagmara
Nickel, president of NTPP, at the opening
ceremony. “Thanks to funding from the
EU’s Wielkopolska Regional Operational
Programme for years 2007-2013, which
provided 50% of the investment, we could
create a very modern infrastructure near
Poznan, meeting the high standards connected with bioeconomy. Setting up of the
infrastructure will help to commercialize
the ideas and research results of Polish scientists and certainly will contribute in the
coming years to increase the level of innovation in our country.”
In a newly established regional park in
Gryfino, near Szczecin, Gotech Ltd from
Gorzów Wielkopolski will set up new services and manufacturing facilities. The
company, operating since 1990, is a leader
in the Polish and European power and industrial construction market. The company’s main sectors are construction, modernization, renovation of electrical wiring
and manufacturing services. Gotech’s
main clients are western European companies from sectors such as energy,
chemicals, fuel, metallurgical as well as
timber processing. The company plans to
start production of steel components for
power plants, and the investment will create 80 jobs in the Zachodniopomorskie
Voivodeship. The reason of choosing
the town of Gardno as the factory’s location is its easy access to the German and
Scandinavian markets. Gryfino industrial
park is a 160 ha area, including 55 ha with a
status of Special economic zone with facili■
ties worth over PLN 35 million.
28
November 2012
www.bizpoland.pl
Politics
Excerpts from Address of Prime Minister Donald
Tusk delivered at the Sejm on 12 October 2012
Mr President, Ms Speaker, Mr Speaker,
Honourable Deputies.
This information from the Government,
which some call the second exposé, is, I believe, essential after the initial year of our
work, after the first year of the second term
of the Government formed by the coalition
between the Civic Platform and the Polish
Peasants’ Party. Why do we need this second
exposé? Because 2013, which will be a difficult year not only for Poland, a year with
far more questions than certainties as to the
developments in the economy, a demanding
year calling for different tools and for creative
thinking to find solutions to protect Poland
against the crisis as effectively as today. My
so-called second exposé will largely focus on
economic measures that the Government,
all the Poles in fact, must undertake to keep
Poland safe during the global turmoil. There
are no grounds to believe that 2013 would be
less difficult or more calm in the global or
European dimension. It will be a different
year, but not necessarily a more difficult one
for Poland. We need to adjust our economic
policy to the current situation, we need to act
in a flexible way, consistently, and come up
with fresh ideas. The value of such a strategy
has been proven by our experience in the last
five years. Thanks to our ability to act flexibly and tailor our actions to match the circumstances, Poland managed to survive the
critical year better than the majority of other
countries. After a year that has not been easy,
I would also like to provide you with a concise
report on what we have managed to achieve
in this year.
***
I am aware that any authority can sometimes
be irritating. The Government in office for
five years can be disappointing. I know this
from my experience as the Prime Minister,
but also from my experience as a member
of the opposition, and therefore I have no
doubts that those who remain in the coalition, as well as those who are disappointed
with it, will demand that every day, not just
on an exceptional day like this when I present
this information, we prove that every action
we take is an effort to regain their confidence
and trust, to rebuild their faith, not only in
the authorities, but also their faith that their
affairs, everyday affairs of ordinary Poles, are
on the right path.
***
2012 November
A few days ago, I presented to the general
public a report on what we have managed to
accomplish as regards the objectives of the
exposé I delivered before the Parliament last
year. I would like to say that I am aware that
this year has not been easy for the people,
although the primary objective, the most
important goal for the authorities in every
European country, is to effectively protect its
citizens against the effects of the crisis. This
year was a kind of investment in difficult
decisions so that Poland and Poles could feel
safe, so that we could say it in a year with a
clear conscience – we did not and we will not
let the crisis in. It has obviously been knocking at our door, not for a day or a year, but we
have made and implemented the decisions
that have not always been popular, to say the
least. And I am referring here mainly to the
changes in the pension system and the retirement age increase, as well as to other decisions concerning other professional groups
that had been enjoying special pension privileges, to the essential decisions arising from
the need to stabilise the state budget – what
I have in mind here is the increase in pension
contributions. But as all of you probably remember, although some would prefer not to,
in my first exposé I also talked about what we
could contribute in these difficult times. And
we talked about the necessary raises for uniformed services. Police officers and military
men received them as of 1 July. Other services – as of 1 October, as announced. Owing
to the fact that this year we did not have to
spend enormous sums of money on removing
the consequences of natural disasters – and
this was the condition we mentioned – we
managed to find the necessary funds. As we
announced, we also started a cycle of salary
rises for the employees of higher education
institutions. It is a 10% rise each year. We are
going to launch the project in 2013.
***
In my address, I would like to focus on two
key issues. The third highly significant issue,
namely our strategy in Europe, our foreign
policy in the context of the changes taking place in the European Union, will be the
subject of a separate address following the
October meeting of the European Council,
but still before the crucial November meeting. I believe that the Parliament will also
be prepared for a very serious debate on the
possible ratification of the fiscal compact,
as it will also outline our European strategy
for many years to come. But let us make this
wide-ranging issue the subject of my address
and our debate in the nearest future.
Today, in the context of 2013, I need to and
would like to focus on two issues that are key
in my opinion. However, they are key not for
the government and not for the opposition,
but for the society. If everybody predicts that
2013 will be another critical year, although
nobody knows to what extent, in Europe, and
when everybody wonders what priorities we
should set at turbulent times of crisis, I point
to two indisputable priorities.
The priority is to maintain economic
growth; to maintain Poland’s development
rate which fills the rest of the world with awe.
We should be determined to maintain this
positive growth rate, even at a lower level
than in the recent years, regardless of the
cost, not to brag with statistics better than
those other countries, but to protect each and
every job. We have prepared several tools and
decisions which, in my opinion, will ensure
safety for Poles and will allow me to speak
in fairly optimistic terms about the hopes
attached to the Polish unique way of dealing
with the crisis.
Firstly, we have developed a banking tool
which requires additional instruments in
the form of a special purpose entity under
the Polish Investments programme. Bank
Gospodarstwa Krajowego (BGK) will be the
operator. Until 2015 it will be provided with
the capital of PLN 40 billion to achieve investment capacities amounting to PLN 40
billion in this period, i.e. until 2015. This
will be possible to achieve without compromising Poland’s financial security, i.e. without increasing the public deficit or debt by
this amount. This will be possible by making active use of currently frozen capital. I
mean state-owned shares in State Treasury
companies. We would like these assets, currently passive so to speak, to work for the
benefit of investments with the participation of private capital and higher creditworthiness. According to the calculations which
will be presented by Minister Rostowski and
by Minister Budzanowski in more detail tomorrow, this way we will be able to create a
leverage for investments in and lending to
the Polish economy. As I already mentioned,
the investments will absorb up to PLN 40 billion by 2015 and about PLN 90 billion over
six years, and they must be profitable. The
investments cannot be treated as a form of
state aid.
29
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Politics
30
Companies with the participation of State
Treasury and the government make joint decisions on large scale investments in the energy sector. It has twofold implications. Firstly,
we continue the large programme for energy
security and Poland’s energy independence
that we started five years ago. Secondly,
this way we invest not only budget funds,
but also funds that belong to commercial
law companies. Large energy projects that
involve the work of thousands and tens of
thousands of people. What facts are we talking about? We are talking about around PLN
60 billion until 2020, for the investment process will last as the projects are large. It will
last for many years, but it starts now. Here,
I am talking about building power blocks. In
Turów, in Opole, in Puławy, in Blachownia,
in Stalowa Wola, in Jaworzno, in Kozienice,
in Włocławek. I am talking about continuing
the construction of a gas terminal. I am talking about a project that has already started –
thousands of kilometres of gas pipelines, and
about gas storage facilities. By the end of 2014
we will have enhanced their capacity from
slightly over 1.5 billion cubic meters to almost
3 billion cubic meters during these two years.
What is more, we plan to finish the interconnector, i.e. the energy link between Poland
and Lithuania built with the use of European
funds, in 2020, but we are starting work now.
We are also expanding the Gdańsk oil terminal. If we sum it up for the total for the
next seven years, the PLN 60 billion will also
translate into actual jobs as soon as in 2013.
We have concluded the work on a legal
act that has given rise to various emotional
reactions: the Act on shale gas. As you know
– and especially one MP keeps reminding us
of the issue – shale gas is extremely important for Poland. However, we do not need to
be reminded, we are well aware of the hopes
that Poles vest in our new national source of
energy. Shale gas means also some direct investment by state-owned companies: PGNiG,
Orlen, Lotos and KGHM. It also involves constructing three drilling pad sites; we assume
that by 2016 these investments will reach PLN
5 billion. The Act on shale gas should become
a topic of our joint debate; this act must not
be treated as a property of this Government
or of any future governments: it must ensure
energy and financial security of all Poles.
We will also carry on with the most developed national infrastructural project, the
project which, as many people believe, has
somehow lost momentum after the EURO
2012. I am talking about motorways and
national roads. We all know the dramatic
experience of some construction companies; we also know how important it is to
continue investment, regardless of the gap
between the current and the next European
Perspective. Therefore, we are looking for
ways to mobilise financial resources for the
purpose, as well as for fast public procurement and project implementation procedures, so that the money that we talk about
while referring to “Polish Investments”
could work, could start to work immediately,
without waiting until projects are finalised.
I would like to mention at this point the period between the end of 2012 and 2015 – this
is when, I believe, we will be responsible for
this issue. This sum of PLN 43 billion should
be invested in the continuation of the motorways and national roads programme.
For example, in 2012 we will announce tenders for completion of the missing part of
Poznań ring road, and in 2013 - for another
section of the A1 motorway between Tuszyn
and Pyrzowice. In 2013, tenders will be announced for the Marki ring road, as well
as for the completion of S7 road between
Gdańsk and Warsaw, and for the S19 road
between Rzeszów and Lublin. In the years
2014–2015, tenders will be announced for S5
road between Poznań and Wrocław, and S7
between Warsaw and Krakow.
We are also going to invest in the modernisation of railways, and will look for possibilities of EU financing. Modernisation
of railways has been one of the most disappointing projects in recent years. Poles are
disappointed because extremely lengthy
railway projects result in extended travel
time and in uncomfortable travel conditions. We are paying this price, passenger
discomfort, because we expect that modernisation will finally produce some effects:
we will be able to announce tenders for the
purchase of new rolling stock for the Polish
National Railways. These tenders are scheduled for 2013 – theoretically the most difficult year to come. We are talking here about
allocating PLN 30 billion for the modernisation of railways in the period between 2013
and 2015.
As you know, the fight for the EU budget
is waging. Confident in our effectiveness in
Europe, we have declared that PLN 300 billion is a satisfactory minimum. We are talking about the period between 2014 and 2020.
This fight for the budget has reached its
climax. As I have already mentioned, I will
inform the Parliament about the European
Council meeting in November, which will be
of crucial importance to this battle. I am convinced that the Polish ambitions concerning
the amount which we indicated over a year
ago and which will enable us to maintain the
growth and pace of development in Poland,
that this plan is feasible – albeit difficult. The
difficulty lies mainly in the scepticism of the
British and the conservative British government about the new budget.
***
We are also looking for other funds that
could be invested in development, which also
translates into new jobs, in fields which so
far have not always served the Polish labour
market well. This is why we have decided
– at which point I would like to thank Mr
President for support and Minister Tomasz
Siemoniak for the initiative – to consolidate
expenditure for Polish military security so
that as much equipment as possible is manufactured in Poland. At the same time, however, we want to ensure that Polish manufacturers guarantee a high level of the equipment
that we will deliver to the Polish army. This
is why we will do everything in our power to
ensure that this expenditure – which, as you
know, we secured by refusing to reduce funds
for national defence below the threshold
which we accepted many years ago – that it
helps to create new jobs. For today Polish security is not just about the planned purchases
and manufacturing equipment in Poland. Let
me emphasise that I refer to manufacturing
helicopters, ships, Rosomak transporters and
building the air and anti-aircraft defence system in Poland, also with the involvement of
the Polish industry. Because security is not
only about high-quality equipment, it also
means jobs resulting from these investments.
We are talking about a very high amount. The
sum in question is PLN 10 billion between
2013 and 2014, but the planned strategic investments are going to amount to a total of
almost PLN 100 billion by 2022. We want the
money to work as effectively as possible in
these times of crisis.
I would like to strongly emphasise that
the Government and the President see eye to
eye on the directions of strengthening Polish
national security. The security of Poland is
possible by close cooperation with the NATO
and the United States in setting up the air
defence system, including the anti-missile
defence system. This is accompanied by the
implementation of the NATO Smart Defence
idea, or smart common defence, which we
are going to develop together with our neighbours in Europe and which should also bring
about multi-billion investments in the Polish
defence system and research centres – we are
working hard on that together with our partners. This might also include investments by
foreign companies.
When adding up these funds, we arrive
at the sum of PLN 700-800 billion, which is
going to back European funds in this new
European perspective. A large part of these
funds is going to be invested in the crucial
2013-2014 period.
We are working on a new liquidation
law and a new building code. Work on the
November 2012
www.bizpoland.pl
commercial judiciary centre is also underway.
Minister Gowin proposed this initiative to
consolidate and centralise commercial divisions of Warsaw courts so as to enable commercial cases to be handled in a swift and
competent manner, rather than torment
those waiting for a verdict.
***
I would like to add – and this is the second
issue I want to devote myself to – that in the
present time of crisis, the word ‘safety’ has
gained a different, more intimate and more
personal dimension. It is the safety of the
Polish family and Polish children. We have
to understand that a family stands for all
generations, from the oldest to the youngest. If we want to focus on the safety of
the family today, we have to acknowledge
that we need to stop the fragmentary and
ineffective measures that have been undertaken for so many years – I know it well and
that is why I am going to present relevant
proposals in a moment. This is the only area
where I will allow myself to use the word
‘revolution’ – because this is what Poland
needs, a revolution for the sake of the safety
of mothers who, together with fathers, decide to have a baby. The measures undertaken so far have failed to bring the expected
results. However, we know that successful
actions are possible. I will now briefly present the plan that we want to put into practice already in 2013.
Firstly, and this is the key element, we want
to propose extending the maternity leave beyond the originally planned six months. The
extension to six months was to be introduced
next year, and was to be the final solution.
However, we propose to extend maternity
leave to one year. We are looking at a model
that has proven successful in Europe, although only one country has decided to introduce it, Sweden. Nevertheless, I am convinced
that we would not be able to find a better way
to quickly improve the situation.
I would like to see the project implemented
in 2013. I expect that by 2015 we will definitively solve the child care problem in Poland.
To that end, we suggest changing the financing rules for building day care centres. We received many reports from local governments
that the current co-financing rules are impossible to bear, particularly for poorer local
governments. Therefore, I suggest changing
the proportion from 80% to 20%. Local governments will have to contribute only 20%
when they decide to build a new day care
centre.
Also private entities that decide to invest
in day care centres will be able to obtain cofunding. It translates into expenditure for
new day care centres increased by PLN 50
2012 November
Politics
million in 2013. And in 2014, we will have
to spend much more than that. As you well
remember, we decided to spend additional
PLN 320 million on kindergartens in 2013.
We will not stop there, although looking at
the increase in the number of places in kindergartens we assume that the problem of
kindergarten availability, and I do not talk
about prices but about availability, will be
solved in 100% in 2015. Our task is to achieve
a situation where availability stands for a reasonable price as well. This is why in 2013 we
will increase the subsidy, by PLN 320 million
for now.
***
I have not mentioned the achievements of
several ministers, nor such important projects as “Optimum State”, which is being developed by Minister Boni, based among other
on digitalisation projects. It is their task now
to win the public and to win you over during
their presentations.
I have already mentioned our future in
the European Union, filled with more dilemmas than simple hopes. As I have said, I
will talk about it also here in this Chamber,
among others, during our attempt at ratification of and during our discussion about a
potential ratification of the fiscal pact; this
debate will, in fact, give us a foretaste of the
upcoming in-depth discussion on where, at
which point, and when Poland is to join this
new integration process, the reintegration
of the European Union. This is a difficult
discussion, which however we cannot evade.
Finally, I wish to tell you, Ladies and
Gentlemen, that in the recent years, and
also in the last year, I have often heard the
opinion that our actions and our proposals lacked the great romantic vision. In a
way, I share this opinion – it really is so.
I am not – and I never will be – a specialist in great romantic visions or romantic
elations. As a matter of fact, in these five
years, and also in the years to come, if I am
given such a possibility, I will have one goal
and one dream - I feel that it is the same as
goals and dreams – maybe small and mundane – of ordinary Poles. Neither a worker
nor a shop assistant, a student, a cook, a
teacher, nor I dream about victorious wars
– wars in our history have been associated
more frequently with defeat and have often
been lost. We are not filled with any kind
of national messianic mission. We are not
searching for occasions to make sacrifices.
We do not want to prove anything to the
world by force. That’s the way it is. My vision consists of small, everyday dreams. I
really wish I could convince everybody that
each day to come will be an attempt to rebuild faith and regain hope of those who are
losing it in the face of the crisis, the faith
and hope that cooperation is possible, and
that Poland will continue to develop as safely as it has done so far. I believe that these
little dreams, these seemingly small goals,
form the most all-encompassing vision, and
the greatest and most splendid idea. Let me
tell you this, Ladies and Gentlemen, I believe we all share a kind of historic awareness, we have it in our heads and in our
hearts – mine is very intense and I feel it
every day – the awareness that for the last
odd twenty years we have been racing history. We have been racing for years of peace,
for good relationships with our neighbours,
and for opportunities of development, of
using the European funds, and of strengthening our position in the Western culture.
For twenty years we have been racing time,
remember that history has rarely given us
so much time. It, however, is really possible
that – maybe not in one but maybe in five
years – history will show us its dreadful face
again – here in this part of the world, just as
it did so many times before. I want to stress
that we have to be prepared when this time
comes, we have to be ready. We have to gain
as much time as possible, and in this time
that we gain we have to build as much as
possible, and invest as much money as possible - in our children, in our roads, in our
families and in our workplaces. Whether
you like it or not, today Poland is held in
high esteem and it is enjoying a good reputation; the world has noticed that millions
of normal people took to work here some
years ago, and proved that Poland can be
a role model, and not a whipping boy. This
is the vision, the great idea that we would
like to put into practice. We want to complete this enormous task without too great
a pomp, possibly with making mistakes.
In order to do this, I need the trust of
this Parliament, I need confirmation that
last year’s elections brought about a stable
parliamentary majority; we need more trust
than the society has now. We will not gain
it with one address or one voting. I wish
to make such an ordinary human commitment to you. Every day we will strive, even
harder than we have done so far, to regain
your support, your trust, your faith, and
your conviction that Poland can carry on as
safely as it has done so far. I firmly believe
that it can. Even if I have failed so far to do
everything to make you believe in it as well,
we will strive every day in the coming three
years to make everybody in Poland regain
confidence in themselves.
Thank you very much, Ladies and
Gentlemen. Ms Speaker, I hereby ask you
for a vote of confidence – the confidence
■
that I hope for. Thank you very much.
31
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City Investment News
Kraków
Kraków beats out 30 cities to land
next business services center
32
Premier Farnell plc has chosen Krakow to
be its commercial centre of excellence for
Europe. The company is a global leader in
high service distribution of technology
products and solutions for electronic system design, maintenance and repair.
The new Centre is providing best in
class outbound telesales and telemarketing in 22 European languages to Farnell
element14’s new and existing customers
across the continent. The centre is part of a
strategic investment representing Farnell
element14’s commitment to delivering a
multi-channel service. The centre works
closely with the field sales, customer service support, e-commerce and marketing
teams in Farnell element14’s network of
offices across Europe.
Farnell element14 began building the
team in Krakow during March 2012 and
has built a 120-strong, multi-cultural team
representing 24 different European nationalities. The team has been through an
intensive training programme and is now
able to fully support the needs of Farnell
element14’s European customers.
Speaking at the opening ceremony, Kevin
Yapp, Chief Strategy and Marketing Officer,
Premier Farnell plc said: “E-commerce
through our Farnell element14 transactional sites now accounts for more than 75% of
our European business and in order to continue to evolve our competitive advantage
we have created this centre to ensure our
customers receive the best possible service
as they continue to interact with us through
their channel of choice. We recognise that
in an online world good quality conversations and personal interaction are extremely important to our customers. The opening
of the Krakow Commercial Centre demonstrates Farnell element14’s commitment to
a flexible, multi-channel service that allows
our customers to choose the way they buy
and engage with us.”
Elaine Barnes, Head of the European
Commercial Centre in Krakow commented:
“Today’s opening ceremony completes what
has been a highly successful start up phase for
the Krakow centre. We considered some 30
different European locations before choosing
Krakow, thanks to its impressively diverse,
multi-cultural and multi-lingual community,
which offered a rich pool of high potential talent for us to recruit from. The famous Polish
work ethic and strong customer service culture was also a great fit with our own. Poland’s
status as a thriving economy that has escaped
the deep recession affecting most other parts
of Europe has also been a factor in helping us
successfully entice experts from other countries to relocate to Krakow.”
The Farnell element14 brand is now well
established in the Eastern European market where its customers include OEM and
CEM’s from high-tech industries such as
medical, telecommunications, consumer
and automotive.
Kraków receives first tram of new
fleet
Bombardier has handed over the first of a
new fleet of Flexity trams to the Kraków
Transport Authority. The Mayor of Kraków,
Jacek Majchrowski, welcomed the Polish
city’s first new tram from an order for 24
units which was signed in 2010. MPK Kraków
placed its first order with Bombardier for 14
trams in 1998. The total number of vehicles
supplied by the rolling stock manufacturer to
the city now stands at 74.
Julian Pilszczek, chief executive of
MPK Kraków, said: “We are delighted with
the design of this state-of-the art tram
inspired by the spirit of Kraków. The vehicle’s most prominent features are the
blue ceiling with LED lighting, an allegory
to the stars in the sky, and the city’s arms
with the Kraków dragon on passenger
seats. These new, modern trams will shape
the future cityscape of Kraków.”
The first public presentation of the new
tram for Krakow took place at September’s
InnoTrans trade fair in Berlin. Germar
Wacker, president, light rail vehicles,
Bombardier Transportation, said: “This
fourth order in a row confirms MPK’s
confidence in Bombardier as a supplier of
proven urban transport solutions. ”
Janusz Kućmin, chief country representative for Bombardier Transportation
in Poland, said: “At present, the city of
Kraków has one of the most modern public transport systems in Poland and the
biggest fleet of reliable low-floor Flexity
trams in the country. I am glad that the
trams we produce have become an inherent element of the panorama of this beautiful city.”
November 2012
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City Investment News
Szczecin
Major industrial restructuring of 50
ha Szczecin Shipyards
Bain & Company consulting firm will
assist Towarzystwo Finansowe Silesia
(TFS) in the preparation and implementation of the concept for redevelopment
of land formerly owned by the “New
Szczecin Shipyards” (SSN). The project is divided into several stages. “The
analytical phase will take into account
the area’s industrial potential, location,
scope of investment, and global market
trends”. The next phase of the project
will be creation of a business plan and
preparation for the implementation of
the selected solution.
TFS and Bain will also consult with the
local government and regional and local
business representatives to take into account the development priorities of the
region and Szczecin, and the potential for
local companies.
Founded in 2000, TFS is owned by the
Treasury Ministry, and specializes in economic revitalization of industrial areas.
The original mission of the company was
the restructuring of the steel industry.
Currently, the core of its activities focus
on corrective action of distressed assets.
Production at SSN was stopped in January
2009 because the European Commission
concluded that the shipyards in Gdynia
and Szczecin (owned by the Polish government) received illegal state aid. Assets
of the yard were sold and workers were
laid off.
Galeria Katowicka, quietly observed the
crowd. “It’s interesting to watch how they
discover this place again. Today we have
finished just one giant jigsaw puzzle piece”,
since construction on additional rails of
the train station will continue. The new
station is about 6,000 square meters, and
the adjacent shopping center houses more
than 250 shops, with parking for 1200 cars
under ground.
The first phase of the project will
be ready in a few months.
For TFS, based in Katowice, in 2010,
SSN’s real estate is its most valuable asset. Among the assets purchased by TFS
are three slipways, a quay (length of 510
m) equipped with lifting equipment and
storage yards, industrial buildings, office buildings and land with a total area
of 50 hectares.
Katowice
Galeria Katowicka and train station
opened – 240 million euro project
In the last days of October, the city of
Katowice officially opened its newlyrenovated train station and adjacent
shopping centre Galeria Katowicka. VIP
guests poured in, including former Prime
Minister Jerzy Buzek, the Minister of
Transport Slawomir Nowak, President of
PKP Group Jakub Karnowski, as well as
Katowice mayor Pitor Uszok and top management of the Spanish developer Neinver,
who spearheaded and bankrolled the project. Mayor Uszok cut the symbolic ribbon,
adding “let’s do everything to keep the new
station looking this way, because we all remember what the old one was like!”
Nicolas Roques from the studio Sud
Architectes, who designed and built the
2012 November
33
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City Investment News
Łódź
EIB continues to support modernisation of Polish railways
A loan of EUR 100 million from the
European Investment Bank will finance
the modernisation of 58 km of twin track
line between Warszawa Zachodnia and
Miedniewice to the speed of 160 km/h, and
installation of signaling equipment on a 42
km section of the already improved line between Miedniewice and Lodz Widzew.
modernization of the 164 km of the E59
between Wroclaw and Poznan, which is expected to be completed by 2016.
Anton Rop, EIB Vice-President responsible for operations in Poland, said: “The
EIB funds will help to upgrade the railway
lines along the key transport corridors
in Poland, contributing to an increase of
transport safety and speed and improving
the environment by promoting environmentally friendly modes of transport.”
The current loans are a continuation of
EIB’s cooperation with PKP Polskie Linie
Kolejowe S.A. Including the current loans,
the Bank has provided loans to PLK totaling EUR 1.4 billion to finance railway modernization projects across Poland.
FashionPhilosophy Fashion Week
Poland
The upgrading of the line between
Miedniewice and Lodz Widzew to the
speed of 160 km/h was already accomplished in 2008.
Another loan of EUR 65 million will
contribute to the upgrading of a 32 kmlong section of the twin track railway line
from Poznan to Czempin in the southwest
Poland, which is part of the E59 European
Rail Corridor connecting Malmo in Sweden
with Ostrava in the Czech Republic
through Poland via Szczecin, Poznan,
Wroclaw and Chalupki.
The modernised line will make it possible to use trains operating at a maximum speed of 160 km/h. As the European
Investment Bank reported, this section
forms the second part of the planned
34
Lodz once again hosted its FashionPhilosophy
Fashion Week, which continues to grow in
size and stature amongst European fashion
designers and fashion labels. The 4-day event
ended 28 October, after showcasing more
than 120 collections from mostly young, aspiring fashion designers from Poland’s top
fashion schools. The week ended with the
fashion show of Dawid Tomaszewski, one of
Poland’s best-known fashion designers and
a regular at the Lodz Fashion Week. He is
graduate of the London Fashion Academy,
and studied under Vivienne Westwood in
Berlin, and has worked for world-renowned
designers and brands such as Sonia Rykiel
and Comme des Garcons.
With over 2,000 square meters of exhibitions and showrooms, the event is
increasingly heralded as a strong promotional event for the City of Lodz, and consistent
with its branding strategy of being a city for
creative talent. “It’s an amazing promotion
for the city”, said Izabella Adamczewska, a
co-organizer, “not just the city but for the design schools. Professors and lecturers of the
faculty of design from all over Poland come to
the festival”. In addition to events at the Łódź
Special Economic Zone, the hotel Andels also
hosted several events and private parties.
Inside the hotel’s rooms, designers such as
Maciej Zień, Agata Wojtkiewicz and Natalia
Jaroszewska showed off their newest designs
for the spring season.
More than 30 collections were featured
on “Designer Avenue”, including the Aga
Pou designers, Agata Wojtkiewicz, Berenice
Czarnota, Grzegorz Kasperski, Basic,
Maldoror, Michael Szulc, MMC Studio,
Natalia Jaroszewska, Nenukko, Orsay,
Biskup Handbags, and Tomaotomo. Not Just
a Label, one of the largest online platforms
for the fashion industry in the world, showed
off the newest collection of Mads Diensen.
Łódź shows offs its new technologies and new Projects At Twin Cities
Forum
Within the Forum of Twin Cities, the City
of Lodz hosted several partner cities, including representatives from Iwanow,
Kaliningrad, Odessa, Lwow, Rustaw
(Georgia), Tampere (Finland) and the
Mexican city of Pueblo.
“It is important that our cooperation is
not limited to the exchange of correspondence, but within the Forum of Twin Cities,
I wish that our exchange will be rich - include youth meetings, science and cultural
exchanges”, said Lodz’s president Hanna
Zdanowska.
The city promotion officials visited
several of Lodz’s landmark new developments, including the airport, BioNanoPark,
the Barry Callebaut chocolate factory,
Manufaktura shopping center, and the EC-1
city redevelopment project.
November 2012
www.bizpoland.pl
City Investment News
At BioNanoPark, the guests saw progress in the field of biotechnology and nanotechnology, including a three-dimensional
printer installed in the workshop for medical implants. The device creates shapes that
allow one to perfectly fit implants used in
facial surgery.
The Barry Callebaut chocolate plant provides confectioneries and chocolates - in
various forms - white, black, powder, liquid. “When we opened our factory here in
1996, not many people in the international
community had heard of Lodz, but now it’s
changing. We chose this location because
of the great location, close to Warsaw, and
presence of universities, which means
qualified staff. The city supports us and is
a good partner - said Witold Dachniewski,
vice president of the chocolate company.
Poznań
Poznań drops out of race to host
2018 Youth Olympic Games
Poznań, one of the favourites to host the 2018
Youth Olympics, has pulled out of the race to
stage the Games due to a lack of financial
guarantees. Poznań was bidding for the competition for the second time in succession,
having narrowly lost out to Nanjing for the
2014 edition of the event by just five votes.
But it has stunningly withdrawn from the
race, with the City Council failing to provide
the financial guarantees of around €20 million to organize the Youth Olympic Games,
with 27 councillors voting against with only
four in favor.
The move comes largely
because of Poznań’s spiralling
debt problems.
“It is a great shame that the City Council did
not agree to the funding guarantees for the
2018 Youth Olympic Games,” said the Mayor
of Poznań Ryszard Grobelny. “I’m convinced
that the city of Poznań would have been a great
host for the event and could have organized a
great Games. We deeply regret that this event
will not take place in our city in 2018.”
The withdrawal came just days before
the candidates for the 2018 Youth Olympic
Games were due to hand in their bid books
to the International Olympic Committee
(IOC) at its headquarters in Lausanne on
October 15.
But despite the shock withdrawal of
Poznań, the bid race remains the most
competitive in the short history of the
Youth Olympic Games with Buenos Aires,
2012 November
Medellín, Glasgow, Guadalajara
Rotterdam all still involved.
and
Poznan Waste-to-Energy Project
combines PPP with EU subsidies for
maximum effect
In order to comply with new national and
European environmental standards on waste
disposal, a number of Polish cities and regions
have commenced (in the current programming
period (2007-2013) project preparation for the
construction of waste incinerators. The projects are consistent with national and regional
strategic documents and the objectives of the
Polish Operational Programme Infrastructure
and Environment 2007-2013, making them
eligible for EU grant co-financing, with grant
amounts reserved for their co-financing.
Up to PLN 352 million have been pre-allocated to the project. The cities of Bialystok,
Bydgoszcz-Torun, Gdansk, Koszalin, Krakow,
Lodz, Szczecin and Warsaw have already announced plans to build similar infrastructure
but only Poznan has so far chosen to go ahead
with a PPP structure, although Gdansk,
Koszalin and Lódz are also considering procuring the infrastructure via a PPP structure.
The waste-to-energy project of the City of
Poznan is one of the most advanced cases in
Poland of a greenfield project attempting to
combine EU funds (from the Cohesion Fund)
with a PPP structure. Even though blending
PPPs with EU funds is feasible in the current financial climate, relatively few projects
where the private sector effectively leveraged the project have succeeded in Europe
and only one is known to have succeeded to
date in Poland, on a much smaller scale and
involving far less complexity.
The development of the project in Poznan
is closely followed by the Polish Ministry of
Regional Development and the Commission.
Other Polish cities are expected to follow suit,
possibly in the next EU budget period (20142020), if the Poznan case proves successful in
terms of both PPP structure and its capacity
to blend.
The Poznan Waste-to-Energy Project is
subject of a case study that is part of a series
being prepared by EPEC on projects that have
combined or have attempted to combine EU
funds with a public-private partnership (PPP)
structure. Much more information can be
found under cee-environmental.com, from
which the article above is an excerpt.
Hotel Polonez in Poznan acquired
by Griffin Real Estate
A fund managed by Griffin Real Estate has
acquired from Orbis S.A. the 369-room Hotel
Polonez and an adjacent 4,000 square meter
development site, located at Al. Niepodleglosci
in Poznan. Financial terms of the transaction
were not disclosed. Colliers International advised Griffin on the transaction. The Hotel
Polonez was built in the early 1970s and has
a usable area of 21,000 square meters. The
Property is situated in central Poznan near the
historic Old Town and in the direct neighborhood of the University of Adama Mickiewicza.
Griffin plans to convert the Hotel Polonez into
a student housing condominium project and
the redevelopment of the property will include
a 5,000 square meter commercial base. Orbis
S.A. has also granted exclusivity to Griffin on
another major property located in Warsaw
and this conditional transaction is scheduled
to close in 2013.
35
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City Investment News
Wrocław
He said that by concentrating the production of complete buses in one single
plant, the company can reduce costs and
thus reverse its negative profitability
trend.
The planned restructure means that
production at the Volvo Buses plant in
Saffle, Sweden, will be terminated at end
June 2013, provided union negotiations
have been completed by then.
The company forecast volume growth in
Europe will remain low in the coming years
and that price pressure will continue. By
focusing all production on the much larger
plant in Wroclaw, Volvo Buses expects to
achieve the economies of scale that are essential in order to tackle the increasingly
tough competition on the market. The
plant in Poland has four times the capacity
than the one in Saffle.
DB Schenker launches second
London – Poland service
Inter IKEA to invest €50 million to
create largest Polish mall by 2014
Volvo shifts European bus production from Sweden to Poland
Inter IKEA, the development arm of Swedishbased global furniture chain IKEA, is planning to modernize and extend its Polish
shopping mall in Wroclaw to create the largest centre in Poland by 2014. It aims to invest
more than €50 million in the project.
The refurbishment of Park Handlowy
Bielany will almost double the size to
150,000 sq.m., allowing it to accommodate
about 200 shops compared to some 80 at
the moment. Current tenants include supermarket chain Tesco and clothing retailer H&M. The group plans to start construction next spring and open the extension in
2014. “This investment is of huge significance for us, we have been preparing for it
for a long time,” said Mikael Andersson,
Inter IKEA Centre Group Poland MD. IKEA
plans to demolish its own store in the mall
to make room for Park Handlowy Bielany’s
extension, and is building a new location
nearby to replace it. Inter IKEA manages
eight shopping centres throughout Poland,
including two in Warsaw.
Swedish Volvo AB said its Volvo Buses unit
is planning to concentrate its European
production in the company’s main plant in
Wroclaw, following weak market developments and tough European competition, a
move that will affect 330 permanent employees and about 60 consultants.
If production is relocated, it is expected
that this will negatively impact the Volvo
Group’s operating profit in the fourth
quarter of 2012 to the tune of about $15
million, Volvo said.
“The demand for new buses in Europe
has dropped steadily over the past few
years, paralleled by considerable pressure on prices, particularly in the Nordic
markets,” said Hakan Karlsson, President
Volvo Bus Corp.
Trojmiasto
Goodman commences construction
of Pomeranian Logistics Centre
36
Goodman has launched its flagship development project in Poland, the Pomeranian
Logistics Centre (PLC). Located adjacent to
the Gdansk Deepwater Container Terminal
(DCT), it is the largest logistics hub of its
kind in northern Poland. When completed,
it will feature approximately 500,000 sq meters of high quality warehouse and light industrial space. Construction of the first facility, a 14,000 sq m warehouse, commenced
DB Schenker Rail launched its second
weekly service between the UK and
Wroclaw in Poland in early October, when
a train loaded with ‘a range of manufactured goods’ departed from Barking in east
London. Having launched a weekly service
in November 2011, DB Schenker has now
doubled the frequency in response to ‘increased customer demand’.
‘DB Schenker Rail is a pan-European
rail freight operator and the strengthening of our services between Poland and
the UK clearly illustrates the success of
our strategy for European rail freight
growth’, said DB Schenker Rail Chairman
Alexander Hedderich. ‘Through effective trading corridors such as this one
we are able to provide customers with
the economic and environmental solutions that enable their use of rail freight
to increase.’
Operating on High Speed 1 between
London and the Channel Tunnel, the DB
Schenker service is able to carry 9 ft 6 in
high swap bodies that would foul the loading gauge on conventional routes in the UK,
as well as standard European wagons.
in September 2012, with delivery planned
for the end of Q1 2013. The total value of the
project is estimated to exceed €300 million
on completion.
“Due to its excellent location, we are
convinced that our Pomeranian Logistics
Centre in Gdansk will meet with considerable customer interest, particularly as
northern Poland still lacks well-located
logistics and industrial areas,” said Blazej
November 2012
www.bizpoland.pl
Ciesielczak, Regional Director Goodman
Poland. “Development of the logistics centre has significance for Gdansk as a city
aiming to become the main gateway to
countries in central and eastern Europe. We
are pleased that construction has begun,”
said Boris Wenzel, CEO DCT Gdansk.
“The last few years have seen billions of
euros invested in Poland’s transport infrastructure by both public and private sector
entities. The on-going investment process is
a window of opportunity for ports and local
authorities in Gdansk to create one of the
largest intermodal logistics hubs on the Baltic
Sea. The investment has the potential to become one of Poland’s main economic drivers,
creating new jobs and, as in the examples of
Hamburg and Rotterdam, generating significant revenue for local communities and the
state. Goodman’s logistics centre project at
Gdansk’s northern port is an integral part of
this vision,” said Alan Aleksandrowicz, CEO
Gdansk Economic Development Agency.
“The potential customers we are targeting
with this development include companies
City Investment News
operating locally, domestically and internationally, across industry sectors including sea
transport, logistics, distribution, food and
FMCG. Our flexible approach allows us to
offer built-to-suit warehouses, production facilities, distribution centres and office areas,”
Mr Ciesielczak added.
Deepwater Container Terminal
Gdansk toasts its 5th year
Deepwater Container Terminal (DCT)
Gdansk celebrated its fith birthday. On this
occasion DCT also announced that it has
increased its capacity by 25% to 1,25 million
TEU with the addition of new stacking areas.
The celebration took place on 15th October in
presence of the Marshal of Pomerania region,
the Mayor of Gdansk and the Presidents of
Port Authorities of Gdansk and Gdynia.
“DCT Gdansk was created out of the vision that Gdansk and the whole Pomerania
region may shine as major gateways for
trade as was the case back in the XVI century. Many did not believe that this would
be possible, but today DCT is already
Lublin
Lublin Airport looks to secure
EuroLOT links
The new airport in Lublin, which will
launch with routes from low-cost carriers Wizz Air and Ryanair in December, is
in talks with EuroLOT and charter carrier
Travel Service Airlines to secure additional
new air services.
The airport, which officially opens on
November 10, will initially have the capability to handle one million passengers
a year, but has ambitions to grow to 3.5
million after 2015. Ryanair will fly three
times a week to London and twice weekly
to Dublin, from December 17. Wizz Air will
fly twice a week to both Oslo and London,
from December 18. The airport is predicting 300,000 passengers in its first year.
Lublin Airport’s CEO, Dariusz Krzowski,
said the timing of any airport expansion
would depend on the gateway’s initial
2012 November
demonstrating the huge potential for
Poland to serve as a major gateway to CEE
and to Russia” says Boris Wenzel, DCT
Gdansk CEO. “DCT Gdansk development
was possible thanks to the relentless support from the local authorities. The close
cooperation between DCT and local authorities has ensured the development of
surrounding road, rail and logistic infrastructure that were necessary to accompany
DCT’s rapid growth. To date, 500 jobs have
been created in DCT alone and many more
will be generated by the 100 ha logistic park
project which is now under construction”.
DCT Gdansk was opened in October 2007
and has rapidly developed into Poland’s
biggest container terminal with over 57%
share in container handlings. The terminal
serves Poland, surrounding CEE countries
and Russia and is the only hub port on the
Baltic Sea with weekly calls of Ultra-Large
container vessels.
“DCT’s success is the outcome of hard
work of many anonymous people, who were
breaking the barriers to build this terminal”
said Pawel Adamowicz, Mayor of Gdansk. “I
would like to congratulate all the people involved in the creation of DCT. I would like to
express my recognition to Boris Wenzel for
whom DCT’s success is a source of personal
pride. I remember Boris’ smile when he was
sharing his vision of the development of
DCT Gdansk on our last visit to China. DCT
is a very important investor and we are more
than happy to host it in our region.”
Ferrovial to build €40m cultural
centre in Lublin
passenger numbers. “It depends on traffic.
It could be after 2015. Not early than that
for sure but we will see. When we hit one
million passengers a year, that will be the
signal to start further expansion.”
Krzowski added that Wizz Air is expected to form a small base at the airport
from next March, and that Lublin was also
in talks with Eurolot about starting flights
from December 2012.
Budimex, Ferrovial Agroman’s Polish
subsidiary, has been chosen by Lublin’s
authorities to build the city’s Cultural
Encounter Centre.
The project, worth €40 million, is scheduled for completion in 2015.
Lublin is Poland’s ninth-largest city and
one of the country’s most important academic and cultural sites. The authorities
envision the Cultural Encounter Centre as
becoming one of the city’s landmarks.
The project requires the partial demolition of a 40-year-old unfinished building
and the construction of the new building
in its place. The centre will have five floors,
two of them underground, and a multifunctional hall accommodating 1,200 people.
As part of this contract, Budimex will
also refurbish the adjacent building,
which houses the Musical Theatre and the
Henryk Wieniawski Lublin Philharmonic,
and build a new 5,000 square meter plaza
■
and underground car park.
37
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Chamber of Commerce News
United States
Stephen Mull sworn in as the
U.S. Ambassador to Poland on 24
October
“In the 23 years since it regained independence, Poland has proven itself as an unshakable ally of the United States, standing
shoulder to shoulder with us on the front
lines from Iraq to Afghanistan, shining the
light of democracy on those dark corners of
the world that have not yet won their freedom, and volunteering to be among the
first in helping the NATO alliance defend
against the threat of ballistic missiles,”
Mull said at his swearing-in ceremony.
Investments in such sectors as mining,
energy, logistics and distribution as well
as information technology show that
Australian companies are taking advantage of Poland’s stable investment climate
and unique location in Europe. Australian
companies are also active in the field of
intelligent transportation systems, in the
automotive, medical, educational market as well as service and innovation sectors. Polish companies are present on the
Australian market in the mining sector.
The seminar focused on bilateral economic
cooperation, investment, trade cooperation and support of Polish companies interested in investing in Australia and exporting to the country.
Holland
Enkev Polska among best Polish
employers
Mull began his career in the Foreign
Service in 1982 and is currently a Career
Minister. He has served in the Bahamas,
Poland and South Africa and was the U.S.
ambassador to Lithuania from 2003 to
2006.
“Steve was always the first to spring into
action, standing up task forces, managing
rapid response personnel,” Secretary of
State Hillary Rodham Clinton said before
Mull was sworn-in, according to a transcript of the speech. “Whether it was after
the earthquake in Haiti, the terrible natural and nuclear crisis in Japan, or, most
recently, the awful assault on our post in
Benghazi and other diplomatic posts that
were threatened, we never doubted we’d
get the best response, the most professional response because of Steve’s leadership
and hard work.”
Enkev Polska has been awarded in the
Best Employers Study 2012 in Poland. The
competition is part of the Best Employers
Program (BEP) which is conducted by
Aon Hewitt in association with strategic partner Harvard Business Review
Poland. Enkev Polska took the third place
in the category small and medium sized
busineses.
“Gaining the title proves the high level
of involvement of our staff. We put people
in the first place, both our employees as
well as the clients that use our products.
Therefore we are very satisfied to have won
this title”, says Czesław Grochulski, managing director of Enkev Polska.
Senator office building the best office development in Europe
Polish office building Senator won in a global, prestigious European Property Awards
competition in the Office Development
category. Senator is the latest Ghelamco
Poland project completed in Warsaw.
The European Property Awards 2012
is part of the prestigious International
Property Awards contest, which distinguishes most spectacular real estate projects. The jury is composed of 60 international specialists. Awards for Senator
were personally accepted by Ghelamco’s
representatives: Jeroen van der Toolen,
Managing Director CEE, and Jarosław
Zagórski, Commercial and Business
Development Director.
“Senator was a big challenge for our company. The implementation of the building took 6 years of hard work and strong
commitment. Now that the building has
been distinguished by international real
estate specialists as the best European office project we feel particularly honored.,”
Jeroen van der Toolen said.
The contest’s final will take place in
December 2012, when the winning projects
from all over the world will compete with
each other. Senator will face projects form
Asia, Africa, the Americas and the Arab
region.
Business Lease Poland and KBC
Autolease Polska merger finalized
On August 1 Business Lease finalized its
merger with KBC Autolease Polska. With
a total contract portfolio of 6,100 cars, the
new company is now the seventh largest in
Poland in terms of market share.
The final stages of this period saw the
KBC Autolease inventory being moved to
the Business Lease site, the office space
Australia
Polish - Australian business seminar
38
In September, a Polish-Australian
Economic seminar was organized by the
Australian Trade Commission (Austrade)
and the Australian Embassy in Poland.
Trade between Australia and Poland
is not significant (about 270 million
Australian dollars) and focuses mainly on
the rapid growth of imports of high-quality Australian wine to Poland. However
the growing number of Australian investment in Poland should be considered.
Senator office building the best office development in Europe
November 2012
www.bizpoland.pl
Chamber of Commerce News
being redesigned and data being converted. Business Lease Group has appointed
Richard Heijnsbroek as Managing Director
of Business Lease Poland.
Richard (41) has moved to Poland from
Slovakia where he was responsible for
Business Lease Slovakia. Over the past six
years, his success developing the company
there has seen it secure a sound market position and brand name, and it is now the
third largest in Slovakia in terms of market share.
Atrium Signs Euro RTV AGV at
Lublin Shopping Centre
The Amsterdam-based Atrium European
Real Estate Limited, announced that it has
secured a new pre-let at its 75,000 sqm
Atrium Felicity shopping centre development in Lublin. As a result of a 1,454 sqm
pre-let to leading Polish home appliances
and consumer electronics retailer, EURO
RTV AGV, Atrium Felicity is 73% pre-let,
with over a year to go before the centre’s
expected opening in late 2013. This deal
follows shortly after a successful cornerstone ceremony last week, to officially celebrate the start of construction, a 12,500
sqm pre-let to Leroy Merlin in September
and the pre-sale of a 19,700 sqm hypermarket at the site to a major international food
retailer in June. Atrium has also secured
pre-lets with many other strong retail
brands including H&M, Reserved, Mohito,
House, and Intersport, as well as Zara,
Zara Home, Bershka, Stradivarius, Pull &
Bear, Oysho and Massimo Dutti from the
Inditex Group.
Kochański Zięba Rapala & Partners
represents Newsweek journalist
Kochański Zięba Rapala & Partners is representing the Newsweek journalist, Cezary
Łazarewicz in a case against Stowarzyszenie
Dziennikarzy Polskich (Association of
Polish Journalists). Newsweek’s journalist Mr. Cezary Łazarewicz is suing
the Association of Polish Journalists for
nominating him the “Hyena of the Year”
for unflattering articles about the father
of Lech Kaczyński (former President of
The Republic of Poland) and Jaroslaw
Kaczyński. The Newsweek journalist
demands that the Association of Polish
Journalists publish an apology on its website, as well as in reputable, and pay PLN 20
000 to the benefit of the Home Hospice of
the Marian Fathers (Hospicjum Domowe
Zgromadzenia Księży Marianów).
New corporate identity for DTZ
DTZ and UGL Services are now united under a single global brand — DTZ, a UGL
2012 November
Polish-German Chamber of Industry and Commerce (AHK Poland) participate in Matchmaking for Polish companies from the IT industry and metal processing
company. The new brand reflects the creation of a fully integrated, global company
with a unique platform. In creating the new
brand, the company has retained the DTZ
name acknowledging the brand equity of
DTZ, an iconic brand with a legacy extending back to 1784, and capitalizing on the
broad market recognition of the specialist capabilities of DTZ. By combining the
DTZ name with UGL’s corporate identity,
the new brand captures the endorsement
of UGL’s financial strength and reflects the
company’s leading expertise in integrated
facilities management.
Speed Business Meeting
The next meeting in the series Speed
Business Meeting took place on 4th October
in Wrocław. The idea of a Speed Business
Meeting is to establish direct business contacts with a large group of people by having
several one-to-one conversations within
Germany
Matchmaking for Polish companies
from the IT industry and metal
processing
Polish-German Chamber of Industry
and Commerce (AHK Poland), Trade and
Investment Promotion Section of the
Polish Embassy in Berlin and the Chamber
of Commerce Regensburg (IHK) invite
Polish companies from the IT industry and
metal processing to participate in the cooperative exchange with Bavarian companies from the region of Regensburg which
will take place on November 26, 2012 in
IHK Regensburg.
this networking model. The next part of
the event, a cocktail, provides the opportunity to continue previously started conversations. The meetings are popular among
member companies and plans are that the
next event in Wrocław will become a permanent fixture in the calendar.
Switzerland
International Business Meeting
Polish-Swiss Chamber of Commerce
cooperates with Belgians, French and
Scandivanian Chamber in the following two events.
The event took place on 18th October at
the Polish National Film, Television and
Theatre School in Łódź. During the meeting a panel discussion on the development
of Łódź was held, in which the President
39
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Chamber of Commerce News
of Łódź Mrs Hanna Zdanowska, city business representatives and international investors took part. The discussion was followed by a networking event.
Polish-Swiss economic cooperation
President of Poland Bronislaw Komorowski
visited Zurich in October for the economic
forum “Polish Investment Market” . The
aim of the meeting was to present the
Polish investment potential, as well as establish closer economic relations between
the Poland and Switzerland. Swiss companies employ in Poland approximately
35,000 people working in particular in
the pharmaceutical and chemical sector,
machinery and precision instruments. In
2011, exports from Switzerland amounted to CHF 2 billion, an increase of 4.6%.
Imporst from Poland totaled CHF 1.4 billion, an increase of 6.5%. Poland is the most
important market for Swiss direct investment in Central Europe, with great potential in the field of devices, medical technology and services.
The conference was organized by the
Swiss Business Federation - Economiesuisse
and the Polish Embassy in Switzerland. The
Polish delegation included Undersecretary
of State in the Ministry of Economy, Mrs
Ilona Antoniszyk-Click, Undersecretary of
State in the Ministry of the Treasury, Mr
Rafał Baniak, PAIiIZ’s President Sławomir
Majman and Chairman of Warsaw Stock
Exchange Ludwik Sobolewski.
Czech Republic
Poland - Czech Republic Economic
Forum
40
Warsaw’s Hotel InterContinetial hosted
the Poland - Czech Republic Economic
Forum in mid-October. It was the most
important Polish - Czech economic meeting in recent years. The event was opened
by the presidents of both countries - Vaclav
Klaus and Bronisław Komorowski.
The aim of the meeting was to discuss
the prospects for the development of conventional energy and nuclear projects.
Instability of the EU market was also discussed. Among the forum’s topics were
common energy policy and energy projects, investments and trade, with emphasis on the role and place of Poland and
Czech Republic in the economic development of Central Europe - as well as the
promotion of both countries and regions
in foreign markets. The Forum was organized by the PTWP Group, the organizer of
the European Economic Congress, together with the Embassy of the Czech Republic
and the Polish Ministry of Economy in cooperation with the Polish Information and
Foreign Investment Agency.
Japan
Japanese investors assess Polish
investment climate
In late October, PAIZ held a seminar on ‘How
to effectively develop Polish-Japanese economic relations “, with a special emphasis
on the appeal of Poland’s special economic
Uszok and Vice President of the Katowice
Special Economic Zone (KSEZ), Mr Andrzej
Pasek. Program of the visit also included a
meeting with Belgian investors in the Belgian
Chamber of Commerce, as well as presentations of investment areas in the KSEZ.
The journalists represented the leading Belgian economic media: “L’Echo”, the
Flemish newspaper “De Morgen”, RTBF
radio, weekly magazine “Knack” and the
newspapers published in French “La Libre
Belgique” et “Derniere Heure”.
Study tours organized by PAIiIZ are directed primarily to foreign journalists and
are designed to promote Poland among the
foreign public.
GreenWings under the wing of CFE
Polska
The construction of GreenWings. a modern Class A office space, started in early
October, and is located on ul. 17 Stycznia,
close to Warsaw’s Chopin airport. The general contractor of the project is Belgian
company CFE Polska.
Belgian Days
zones to Japanese manufacturers. The
Embassy of Japan in Poland, JETRO, and
the Shokokai Employers’ Association produced a report outlining the strengths and
weaknesses of doing business in Poland,
from the perspective of the Japanese.
At the end of 2010, according to the NBP,
the cumulative value of Japanese FDI in
Poland was over $ 1.5 billion. “Currently,
there are about 300 active Japanese investors in Poland, of which 100 are manufacturing companies, which employ about
40,000 people”, said Makoto Yamanaka,
the Japanese Ambassador to Poland.
The report shows that Japanese investors appreciate the scale of the Polish
market, geographical location (proximity to both Western markets and Eastern
Europe), labor force, and political and economic stability – as well as the investment
incentives that support investment in the
Special Economic Zones.
6-24 November 2012
With events spread across three cities
(Poznan, Gdansk, and Warsaw), the annual Belgian Days, under the Patronage of
the Ambassador of Belgium His Excellency
Raoul Delcorde, have a packed schedule of
business, social and cultural events. This
year’s edition will be exceptional – due to
the celebration of 20 years of the Belgian
Business Chamber. The events being organised for the Belgian Days 2012 will be
focused, more than in previous years, on a
business dimension. They include: a Sharing
Experiences conference, a CEO Forum and a
Gala Dinner. During the Belgian Days, two
important awards will be presented: the
Belgian Business Chamber Award (for the
fourth time) and the Best Belgian Exporter
Award (for the first time). Cultural events
are also provided, among them a Belgian
Evening - Mussels & Fries and an Urban
Game around the streets of Warsaw.
Belgian Business Mixer in Warsaw
Belgium
13 December 2012
Belgian Business Chamber has the pleasure
to invite you to the Belgian Business Mixer,
to be held at the State Ethnographical
Museum in Warsaw.
Belgian media experience Poland
United Kingdom
During the visit, the journalists met
Undersecretary of State in the Ministry
of Economy, Mrs Ilona Antoniszyn-Click,
President of PAIiIZ, Mr Sławomir Majman,
President of the City of Katowice, Mr Piotr
Export Roadshow Seminars, the
British Polish Chamber of Commerce
(BPCC), Lewiatan along with experts
from HSBC, Raben Group and Accace
November 2012
www.bizpoland.pl
Chamber of Commerce News
organized export seminars for medium and large Polish exporters.
A series of 8 seminars “Open up the market and expand the company” aims to show
entrepreneurs the benefits of diversifying
markets. The event has been covered under the honorary patronage of the Polish
Information and Foreign Investment
Agency.
The events are aimed at senior decision makers in medium- and larger- sized
companies who are responsible for export
strategy. A total of 8 meetings were scheduled. The first was held in Lublin on 2nd
of October. The next meeting took place in
the following towns: Błonie near Warsaw
(October 9), Gądki near Poznań (October
16), Wrocław (October 23).
Ireland
Irish footballers win championship
The Irish Chamber football team, against
all odds and pre-tournament predictions,
have become the champions of the IGCC
The Polish-Portuguese Chamber of Commerce (PPCC) annually organizes a Welcome Dinner for the Portuguese
ERASMUS students that come to Poland for the internship
their observations with the Ambassador of
Portugal. This edition of the Round Table
Talks with the Ambassador took place on the
11th October at Westin Hotel in Warsaw. The
participants had the opportunity to have an
interesting discussion about the current economic situation in Portugal and Poland, to
analyse the data of the trade balance and foreign direct investment and current business
opportunities available in both Portuguese
and Polish markets.
ERASMUS Students
2012 football tournament. Having had
three draws in the group stages, Ireland
went into the knock out stages knowing
that an improvement was required, and
that is what was delivered. ICC beat Italy
in the quarter finals, Germany 2 in the
semifinals, and the previously unbeaten
Germany 1 in a tense final by 2 goals to 1.
This event took place in the Sinus Club in
Wilanow. Marcin Zaporski, ICC Captain, received the winning trophy from Ken Morgan,
president of IGCC. Krzysztof Domogala was
awarded top player of the tournament.
The Polish-Portuguese Chamber of Commerce (PPCC) annually organizes a Welcome Dinner for the Portuguese ERASMUS students that come to Poland for the
internship. Each year PPCC gathers around
100 students studying in different cities
across Poland that come to Warsaw for this
special event, during which they have the
opportunity to meet with the PPCC Management Board, Ambassador of Portugal
in Warsaw and with representatives of
PPCC Member companies. Thanks to this
event, the students can make friends with
each other, get acquainted with the activity of the Polish-Portuguese Chamber of
Commerce and spend an interesting evening with Portuguese food and wine. The
event will take place on the 7th December
in Warsaw.
Canada:
October. With over 50 people in attendance, the annual event sponsored by law
firm MillerCanfield was a success in bringing together people and businesses. The
evening was opened up by Paul Fogo,
Senior Attorney of MillerCanfield followed by welcome speeches from Tomasz
Lisiecki, President of PCCC and of TriGranit
Polska. Greetings on behalf of the guests
were given by Greg Houlahan, Canadian
Embassy, Carsten Nilsen, Chairman of
the Scandinavian Chamber and Jarosław
Łach, Vice President of the Swiss Chamber.
Hard-coal fired power plant
Enea Wytwarzanie SA and a consortium
of two firms, Hitachi Power Europe GmbH
and Polimex-Mostostal, signed an agreement for the construction of a new hardcoal fired power unit. The new unit in
Kozienice is to up the plant’s power generation output by one third. It will run at
supercritical steam parameters delivering
the gross power of 1075 MW and the net
efficiency of 45.6 percent. Its construction
cost will amount to about PLN 6.4 billion
gross and completion is scheduled for the
second half of 2017. Bireta s.c., a technical translation provider, will provide full
translation support for this project. Bireta
specializes in projects from such sectors
as power, oil & gas and environmental
protection.
Portugal
PCCC Fall Business Mixer with
Norwegians and Swiss
Trinity expands shelf company
services with new Joint-Stock
Companies
Round Table Talks
The PCCC hosted a lively business mixer
that included members of the Norwegian
Business Forum and the Polish Swiss
Chamber of Commerce on Thursday, 25th
Trinity is adding Joint-Stock Companies to
its growing portfolio of shelf company services. The new service will complement its existing stock of Limited Liability Companies,
Twice a year, the Polish – Portuguese
Chamber of Commerce provides a special opportunity for its Members to meet and share
2012 November
41
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Chamber of Commerce News
Limited Partnerships and Limited JointStock Partnerships. In Poland, Joint-Stock
Companies are an interesting alternative for
investors planning to conduct a large scale
business activity, offering a lot of possibilities with regards to raising capital and reducing operational risk.
India
A business delegation led by B.B. Swain,
vice chairman of the Gujarat Industrial
Development Corporation (GIDC) was hosted
by IPCCI in September in Warsaw. During its
four-day stay, the delegation interacted with
the Polish Chamber of Commerce (KIG), and
signed a Memorandum of Understanding
with the Indo-Polish Chamber of Commerce
and Industry (IPCCI) . As per the MOU, IPCCI
will be the sole representative to promote
Gujarat in Poland.
The Vibrant Gujarat Summit has become
an example of the visionary approach of the
State Government to investment promotion and advancement of economic and social development for many states. The event
provides enormous prospects to the State
to display its strengths, progressive stand,
initiatives taken to improve governance, investor friendly climate and art and culture of
Gujarat.
The Vibrant Gujarat 2013 (11-13 January,
2013) Summit should be transformational
and revolutionary – both in its coverage and
scale. It will provide a platform for various
states of India and other countries to cooperate and explore attractive business opportunities. Interested organizations should
contact Mrs. Joanna Mazurkiewicz , Director
IPCCI at j.mazurkiewicz@ipcci.pl.
IPCCI also cooperated with Roadshow
Poland led by Mrs.Eva Aboo and organized
a panel about the BPO Industry in Poland,
the role of Indian IT companies based in
Poland and 5-year perspectives during the VII
Outsourcing Forum held in Warsaw in late
September.
42
Spain
Polish–Spanish Forum of Renewable
Energy
The Polish-Spanish Chamber of Commerce
together with the Renewable Energy
Association celebrated in Warsaw the 6th
edition of the Polish–Spanish Forum of
Renewable Energy. The event was attended
by over one hundred people from both countries: by delegates of high authority, the
Deputy Minister of Economy of Poland, Mr.
Mieczyslaw Kasprzak, the Ambassador of
Spain in Poland, Agustín Núñez, representatives from the Ministry of Foreign Affairs and
the Ministry of Agriculture, representatives
of Polish cities, as well as companies from the
renewable energy sector and experts.
The main aim of the conference was
the discussion about the development of
sources of energy, the presentation of active attitude of the pro-investment regions
and the profits which are the effect of the
investment in the renewable energy. It was
the place to exchange experiences and it
provided the opportunities to tighten contacts and to develop cooperation between
Polish and Spanish companies and regions.
During the conference, the experts
of renewable energy raised themes such
as the European and National Funds for
Renewable Energy Sources in Poland,
Changes of the Renewable Energy Policy in
Poland, Development of Renewable Energy
Sources in Spain and investing in the most
attractive Polish regions.
Tarde de Sabores
This event - Tarde de Sabores – Evening of
Tastes -.takes place every last Thursday of
the month. The Polish-Spanish Chamber
of Commerce invites you to an encounter
with the Polish-Spanish group with a culinary theme.
“How to effectively exercise one’s
rights in a dispute with the State.”
The Polish-Spanish Chamber of Commerce
in cooperation with the member company Kochański Zięba Rapala & Partners
law firm are pleased to invite you to participate in a business breakfast dedicated
to international investment arbitration issues. The seminar will be held on
20th November 2012 in Kochański Zięba
Rapala & Partners’s offices in Warsaw.
The purpose of the meeting will be to
explain the methods and possibilities of
claiming compensation from the state, currently favored by foreign investors, namely
the initiation of international investment
arbitration on the basis of arbitration offers included in international investment
agreements. Speakers will present situations, supported by practical examples, in
which an investor may exercise his rights in
front of the international arbitrational tribunal. They will focus on the possibilities of
claiming compensation by investors in the
event of violation by the state of concluded
agreements.
The PHIG invites representatives of
companies investing in Poland or in a
country other than their country of origin. Participation in the seminar is free,
■
detailed information: www.phig.pl.
November 2012
www.bizpoland.pl
Events
Polish entrepreneurs get
together in Scotland again
For the fourth time this year, the BPCC, together with
Picklemedia, has organised a business meeting for Polish
entrepreneurs active in Scotland. The Chamber is actively
working with Polish entrepreneurs north of the border, and
is developing strong links with Scottish institutions working
with business.
Marketing in its broadest sense was the
theme of the evening's meeting, held in
the elegant surroundings of Glasgow's 29
Private Members Club. Practical advice
about selling to Scottish businesses and to
Scottish public sector was offered by experienced practitioners.
Public procurement – more transparent,
open and predictable than it is in Poland
– is an area that should be of interest to
Polish businesses in Scotland. The Scottish
public sector is spending money constantly
on goods and services and there's no reason why a firm started by a Pole in Scotland
should not be able to supply them at a
good price. Pauline Wallace from Glasgow
and and Audrey Cameron from law firm
Anderson Strathern explained, with exemplary clarity, what a business needs to do if
it wants to successfully sell to the Scottish
government or local authorities. “It's so
easy for an SME to do business with the
public sector in Scotland – the key thing
is to be registered online as a supplier of
goods and products,” she said, “which is a
simple procedure”.
Over 50 Polish entrepreneurs representing a wide range of business sectors
from real estate and construction, to
translation and on-line advertising, took
part in an event which had as its aim the
presentation of business information and
networking.
Case studies from successful SMEs –
one set up by Poles, Eltech, an electrical
contractor which has carried out re-wiring a Scottish castle, and Cobb Bakeries,
a company from Loch Ness that has
grown from being a hotelier to supplying tens of thousands of cup cakes for
large sporting events. Willie Cameron
inspired participants with his story of
how Cobb Bakeries managed to deliver
34,000 cup cakes to 34 sites around the
UK in time for the opening day of the
London Olympics.
Business support guru, Dr Arshi Ilyas,
who has mentored around 100 start-ups,
talked about the key factors that determine the success of a entrepreneur, and
explained how Business Gateway can help
Polish entrepreneurs that are growing
their firms in Scotland.
Bartek Kowalczyk of Picklemedia, who
organises the BPCC business seminar mixers, said “It is important that Polish entrepreneurs in Scotland learn how to network
effectively. There is still a conviction, carried over from the 'old country' that there's
something shady about business people
getting together.” David Atkinson, who
runs a design company, gave some handy
tips about selling yourself. A key message
was the importance of one's business card,
the importance of price, and winning the
trust of clients and customers.
The formal presentations were followed
by networking, which began with every
participant introducing himself or herself
to everyone else. The networking part of
the evening was popular with participants;
during the course of the evening, many
new contacts were made – a real estate
agent, having bought a new house with
her husband, made useful introductions to
kitchen and electrical contractors.
The event was sponsored by Bank
Santander, MoneyGram, Eltech Electrical
■
Systems and eleMedia.
43
2012 November
Events
www.bizpoland.pl
Foundation for Corporate Social
Responsibility CEO Breakfast
The FCSR held its annual CEO Breakfast,
bringing in more than 50 CEOs who support the Foundation. Held at the Hotel
Intercontinental, Bill Chasey took the occasion to welcome the incoming General
Manager of the hotel, Marten Schoenrock,
who has replaced Christian Henkemeir.
The FCSR will hold its annual Dinner
■
Dance on 21 January, 2013.
Food Producers Congress – Opole
The second annual Food Forum was held
in late October in Opole, with a large
range of participants, including food
producers and exporters, suppliers to
the industry, food scientists, and officials from the local government, including Ryszard Zembaczyński, president of
the city of Opole (pictured here), and icecream magnate Zbigniew Grycan (pic■
tured here).
44
November 2012
www.bizpoland.pl
Events
Fashion Week Łódź
Burda International, the
publisher behind Elle,
used the occasion of Lodz
Fashion Week to announce
its puchase of a 25% stake in
Polish ecommerce startup
Showroom.
Polish online fashion marketplace
Showroom said there is no official word on
how the strategic investment from Burda,
which includes well-known international
brands Elle, InStyle and Prestige within its
299 magazine-strong stable, will be used.
However, the news does come at a time
when Showroom — founded earlier this
year — is beginning to expand its presence
into new European markets beyond its native Poland, so it is logical to presume that
Burda will help with this.
Showroom is, as the name suggests,
an online platform for independent fashion designers to showcase and sell their
work. Designers and brands upload photos and post descriptions of the items to
the site themselves, and customers buy
direct from them too. Currently the site
includes items from more than 500 Polish
independent designers, and more than
100 fashion brands. The Polish startup is
placing great emphasis on Facebook and it
offers discounts to customers which help
2012 November
spread word of the site by ‘liking’ items on
its page on the social network.
Commenting on its investment, Burda
International CEO Fabrizio D’Angelo said
“Showroom is a great concept with fascinating development potential for this type
of platform in fashion segment. We reach
lots of target groups interested in fashion
[and this deal] makes an excellent foundation for a strategic partnership between
Showroom and Burda International.”
Michal Juda and Jasiek Stasz,
Showroom’s co-founders said that the deal
will help build awareness of Polish fashion
designers overseas.
“We believe that Polish fashion has a
great potential. Our designers have a lot
to offer and we want to make their voice
heard outside of Poland. Thanks to Burda
International investment and their great
experience we would like to open new door
to our designers, especially abroad,” they
said.
Showroom landed undisclosed seed
funding from Poland-based HardGamma
■
Ventures back in March.
45
www.bizpoland.pl
Events
BPCC Annual Ball
The British Chamber of Commerce held
its Annual Ball at the Sheraton Hotel,
with many additional attractions, thanks
to support from the evening’s main
sponsor - HSBC Bank - and of course the
BPCC’s 20th Anniversary partner companies (AstraZeneca, Atkins, BP, BSI and
Provident). In the foyer guests enjoyed
the thrill of the casino, tasted the delights
of some exclusive whiskies in a whisky
46
tasting run by The Whisky Society, were
offered colourful cocktails by Chopin
vodka and British beer from Legends Bar.
Sklepcygara.pl provided cigars for guests,
International Diamond Corporation presented their beautiful jewelry in glass
show cases and additionally a Jaguar XKR
stood in the foyer.
His Majesty’s Ambassador Robin
Barnett opened the evening with a warm
welcome and a very hopeful speech regarding Poland’s future as an emerging
European market, whilst Antoni Reczek,
the BPCC Chairman and Joe Tunney, BPCC
CEO, thanked all companies involved in
creating the event and encouraged the
250 guests to have a wonderful night. The
Charity Auction and Lottery jointly raised
21,320zł and that money is being donated
■
to the Sue Ryder Foundation.
November 2012
www.bizpoland.pl
Events
Berlin Aviation Fair
In 2012, Poland was the partner country of
the International Aviation Exhibition in
Berlin. During this year’s edition the most
important accomplishments of Polish
aviation and aerospace industry were
presented. Fourteen Polish companies
and institutions had stands, including:
the Institute of Aviation, Space Research
Centre PAS, the AIR Force Institute of
Technology, Wielkopolska Aerospace
Custer, Municipality of Krosno, Rzeszów
University of Technology, Office of the
Marshal of Podkarpackie Voivodeship,
Municipality of Kalisz, Aviation Valley,
Office of the Marshal of Lubuskie
Voivodeship, Margański & Mysłowski
Aircraft Company, Aviation Artur Trendak,
Allstar PZL Lider, J&S Aero Design.
Within Polish national stand the conference on the aviation sector in Poland was
held. The aviation acrobatic group Grupa
Akrobatyczna Żelazny, which invited by
the Ministry of Economy, dazzled the on■
lookers.
Warsaw Olympic Nights Gala
The third Gala “Warsaw Olympic Nights”,
organized by the Foundation Feliks
Stamm, was held in October in Hala
Arena Ursynów.
During the evening trophies were
awarded for all “Ambassadors of Sport”
Polish Olympic medalists from the
London Olympics 2012.
An auction of autographed sports items
raised money for the charity “Young
Sports Talent”. Well-known sportsmen
attended, including Apollonius Tajner,
Mariusz Czerkawski, Matthew Ligocki,
Tomasz Majewski, Sylvia Bogacka,
Sophia Klepacka, Damian Janikowski,
Bartlomiej Bonk, Fularczyk Magda and
Marta
Makowska
paraolimpijczycy
Warsaw, Gregory Pluta, Dariusz Pender,
Małgorzata Jankowska, Raphael Korce
and many other great heroes of this year’s
Olympic Games and Paralympic Games
LONDON 2012. Honorary Patron of the
event was from the Mayor of London, the
Ministry of Sport and Tourism, the Polish
Olympic Committee and the Business
■
Centre Club.
Macaroni Tomato
Warszawa opens
mens clothing shop
Tatiana Hrechorowicz and Wojtek Szarski
recently opened their upscale, Italian mens
clothing shop in Warsaw’s swanky Powisle
district. Dubbed Macaroni Tomato, the
shop aims to fill a nice in elegant mens
■
clothing, including footwear.
47
2012 November
Poland Outsourcing Awards
7 February 2013
Hotel Intercontinental, Warsaw
A Black-Tie Gala Awards and Forum
Recognizing Excellence and Leadership
in Poland’s BPO/Outsourcing/Shared
Services Sectors in 2012
For more information about reservations,
jury membership, or sponsorship, please contact
Thom Barnhardt (tb@biznespolska.pl; 508-143-963), or
Wiktor Glinski (wglinski@biznespolska.pl; 694-492-067)
www.PolandOutsourcingAwards.pl
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