made in poland 2011

A GUIDE TO POLISH EXPORT

Co-organizer of thePolish Export

Promotion ProgramgPublication partnerPublication partner

Wa r s a w B u s i n e s s Jo u r n a l ’s

ISSN

208

3-06

45 –

PLN

79

(8%

VAT

inclu

ded)W

arsaw B

usiness Journal’s Made in Poland 2011

vol.2

�e next edition of Trendbook Poland – a guide to business trends from

Warsaw Business Journal

Circulation: 12,500. Distributed to business leaders, diplomats and investors interested in doing business in Poland

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P o l a n d

Part of Warsaw Business Journal’s series of business guides

1Made in Poland 2011 table of contents

Introduction

table of contents� 1foreword from the editor-in-chief� 2opening statement from Deputy Prime Minister Pawlak� 3Interview with the President of the Polish chamber of commerce� 4-6

Macroeconomics

exports & Poland’s economy� 8-12Partner feature: branding� 13Partner feature: aid for exporters� 14Partner feature: Investment in Poland� 16Macroeconomic analysis� 17-19transport Infrastructure� 20-21

Sector�analyses

Introduction� 22food & agriculture� 23-28Defense� 29-33clothing� 34-37furniture� 38-41automotive� 42-46cosmetics� 47-51Yachts� 52-55

Pharmaceuticals� 56-6150 largest exporters� 62-65

Bilateral�trade

Introduction� 66statement from Us ambassador lee feinstein� 67-68Poland-Us trade� 68-69statement from chinese ambassador sun Yuxi� 70-71Poland-china trade� 71-72statement from German economic counselor Helmut lüders� 73-74Poland-eU trade� 74-75statement from Russian economic counselor ekaterina belyakova� 76-77Poland-Russia trade� 77-78

Mister�&�Junior�of�Exports�Competition

competition Rules� 79-80Registration form� 81-82

Resources

chambers of commerce� 83Government agencies� 84Importer/exporter events� 85Publication Partners� 86-87Index� 88

Valkea�Media�SAul. elbląska 15/17 01-747 Warsaw, Poland% (+48) 22 639 85 67-686 (+48) 22 639 85 69nIP: 525-21-77-350

Editor-in-Chief: andrew Kureth ([email protected])

Deputy�Editor:�Gareth Price ([email protected])

Editor:�e blake berry ([email protected])

Journalists:�Remi adekoya, e blake berry, ewa błaszczyńska, Roberto Galea, Jo Harper, brendan Melck, Mark ordon, andrew shale, Joanna sopyło, alice trudelle

Graphics/Design/DTP: Piotr Wyskok

Cover�Design/Photo�Editing: Łukasz Mazurek

all photos: courtesy of companies’ press materials; shutterstock

Publisher:�Morten lindholmManaging�Director:�Monika stawicka

Sales�Department:� Sales�&�Marketing�Director:�� agnieszka brejwo ([email protected])

� �Jowita Malich, Magdalena Karpińska, Małgorzata anczewska, Katarzyna Pinkiewicz

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Event�Manager:��Katarzyna Dragan ([email protected])

Print�&�Distribution�Coordinator: Krzysztof Wiliński ([email protected])www.valkea.com www.wbj.pl

Table of Contents

Warsaw Business Journal’s

MADE IN POLAND 2011

2 Made in Poland 2011foReWoRD

Dear reader,Poland’s economy continues to power along at a healthy pace

as the world recovers from the global financial crisis. Poland, as is now well-known, never entered recession during that pe-riod, though its GDP growth slowed significantly. In 2010, the country’s economy grew by a healthy 3.8 percent, and this year it is expected to grow by over four percent. Poland continues to stand out as a haven of growth and stability in europe.

now Polish firms are using this momentum to increase ex-ports – 20 years of market economy have brought Polish products to a point where they are extremely competitive in terms of both price and quality. exporters were able to make significant gains in many foreign markets during the crisis pe-riod and, having gained recognition for their products, they are ready to make an even bigger splash.

That’s why we are launching this inaugural edition of Made in Poland, the most extensive guide to Polish exports that you’ll find in english. our intention with this publication is to give you a detailed overview of the current state of Poland’s ex-port market, and where it’s headed in the future.

Herein you’ll find expert commentary from those who know the market best – such as the Polish chamber of commerce, consulting firm KPMG, and Deputy Prime Minister and economy Minister Waldemar Pawlak.

We’ve packed Made in Poland with useful information: anal-ysis of the Polish economy and how international trade fits into it, as well as an overview of Poland’s infrastructure, all-important for international trade. There is also a catalog of the 50 largest exporters in Poland and a calendar of important export-related events. Moreover, we’ve added some useful contacts for both exporters and importers of Polish products.

central to Made in Poland, however, are analyses of what we see as eight crucial sectors in Polish export, with overviews of the development of the exporters themselves, their suc-cess stories and the solutions they use. It is in these sectors that Polish firms are finding particular success abroad and in which they will make the biggest waves in the near future.

We’ve also included a large section on bilateral trade analy-ses with four of Poland’s key trading partners, and statements from the diplomats and trade representatives from those countries – including from ambassador lee feinstein of the United states. It is the Us, china, europe and Russia that constitute, in our minds, Poland’s four most important bilat-eral trading partners.

With the launch of Made in Poland, we also launch the Pol-ish export Promotion Program in cooperation with the Pol-ish chamber of commerce. This program will, in turn, bring back the “Mister and Junior of export” awards contest after a three-year absence. exporters interested in entering the contest can find the rules and an application form on pages 79-82. The awards will be handed out at a festive gala in June 2011.

It is our fervent hope that Made in Poland serves as the ul-timate guide to Poland’s export market. In its scope, detail, and engagement with exporters and the organizations that support them, it provides a comprehensive look at one of the most important elements of Poland’s economy. v

Andrew�Kureth�Editor-in-Chief�Made in Poland

3Made in Poland 2011 oPenInG stateMent

Ladies and Gentlemen,

Progressing globalization and the dynamic growth of civi-lization has led to a situation where raising the quality of

products and services has become the best way of creating a competitive advantage on the international market. a good reputation of domestic enterprises that can boast of imple-menting modern quality-management technologies and sys-tems has become a significant element in creating the image of our country and its economic potential.

We are aware of how vital exporters are in this area and to what extent their activities affect the condition of all aspects of economy. That is why the Ministry of economy under-takes promotional activities whose goal is to globally popu-larize the positive image of Polish companies, their products and services, as well as the growing economic collaboration with foreign countries. We are designing these activities with the aim to increase the volume of Polish export and the dy-namic influx of direct foreign investments to Poland.

Image studies will be conducted in the countries constituting priority target markets for Polish export. based on their re-sults we will develop the concept of promotion to determine the most effective lines and tools of communication. These promotions will also indicate the most important character-istics of the brand of Poland and we will also design a logo and a promotional slogan.

as part of this project we will conduct an informational and promotional campaign in foreign media. Its main message will be to present Poland as a modern country that is open to new investments and contacts, and offers attractive export specialties.

Industrial programs of promotion will support creating Pol-ish export specialties. Within the framework of this project we will be supporting promotional activities of selected sec-tors and product or service groups characterized by high ex-port potential. at the Ministry of economy we have selected 15 such groups. to realize this goal we will set aside as much as zł.198 million before the year 2015. We will also be provid-ing financial support for the activities promoting individual branches of the industry as a whole. This component has been designed in such a way that the effect of the promotion-al activities implemented will affect all entrepreneurs in the

given sector. We will be setting aside nearly zł.168 million to execute this concept.

another Ministry of economy project that will enable Polish entrepreneurs to use eU funds is through sub-measure 6.2.1 of the Innovative economy operational Programme – in-creasing the level of internationalization of Polish companies. Its aim is to make it easier for entrepreneurs to access com-prehensive, high-quality information services required for planning, organizing and conducting export or investment activities outside the territory of Poland.

This goal will be realized by the domestic network of 16 In-vestor and exporter support centers operating within the structures of voivodship Marshals’ offices. nearly zł.78 mil-lion has been set aside to perform the services rendered by these centers.

In the budget of the Ministry of economy, the funds for promoting and supporting specific export initiatives of Polish manufacturers and service providers also constitute an important item. Most importantly, these funds are used for financing the Program of Promotion realized by the Ministry of economy’s trade and Investment Promotion Departments located around the world. the main task of these agencies is to identify export niches in the given country and to provide economic and trade information to the entrepreneurs who wish to establish economic collab-oration in the given country. as part of the program, pro-motional seminars and conferences are organized, trade missions are supported, and meetings with companies and investors are organized.

to make it easier for entrepreneurs to access business infor-mation, the Ministry of economy also maintains the Polish export Promotion Portal. This is an online, public database containing updated information about foreign markets, in-struments supporting Polish export, and the possibilities of establishing trade contacts with foreign contractors. Through the portal it is also possible to promote enterprises and their export offers free of charge.

The Ministry of economy also helps to cover the costs of ob-taining export certificates. owners of companies may make use of a subsidy covering 50 percent of the costs of consulting services associated with obtaining confirmations, as well as certificates and attestations required by foreign markets. The annual limit for an entrepreneur is zł.50,000.

The Ministry of economy may also cover part of the expenses of organizing conferences, seminars and other promotional events incurred by entrepreneurs. We also subsidize releases of publications and materials promoting Polish export.

I am convinced that the solutions we have prepared will help Polish exporters in conquering successive foreign markets and improve their competitive position. I also trust that with their help our companies will be able to create strong Polish brands, contributing in this way to strengthening the positive image of the Polish economy around the world. to all Polish entrepreneurs, I wish many a successful contract. employ-ees of trade and Investment Promotion Departments in 47 countries around the world are at your disposal. v

Waldemar�Pawlak�Deputy�Prime��Minister,��Minister�of�Economy

4 Made in Poland 2011InteRvIeW

MiP:�What�are�the�biggest�issues�facing�Polish�exporters?

Andrzej� Arendarski: Putting aside all the other problems that Polish entrepreneurs have to face, such as excessive bu-reaucracy, a poor legal system and complicated tax regula-tions, special attention should be paid to the negative effect that the lack of a common concept and strategy for economic promotion abroad has on Polish exports. This fact results in, among other issues, there being no Polish brands that would be widely recognized around the world and which would positively reflect the potential of our exports.

another issue is also the political support of exports, which is critical if we want to do business in regions where business is closely tied to politics. Polish exporters, while battling on foreign markets, realize that they are not only battling with competition strictly on business terms, but on terms which are often backed by politics, such as in the form of govern-mental loans.

a serious barrier to the development of exports is the fluctua-tion of the exchange rate, which does not allow Polish enter-prises to plan a stable and safe export policy. a solution to this would of course be entering the euro zone.

another issue which would be helpful for exporters is an ef-fective system of financing exports which would be profitable in economic terms (loans, guarantees, warranties, insurance policies), which would facilitate entering foreign markets. There are already mechanisms introduced in Poland for sup-porting export, but in many cases taking advantage of them is still a cause of many problems and is often too expensive.

What�could�the�Polish�government�do�to�help�exporters?

first of all, the authorities should create a beneficial and friendly economic legal system and in general – a positive business climate. This relates to all enterprises, not only ex-porters. In the recognized ranking entitled “Doing business,” published by the World bank, which compares the condi-tions of doing business around the world, Poland is ranked somewhere around the 70th position. This means that in terms of conditions for doing business, a lot remains to be changed.

first of all, Poland needs a reform of the system of creating legislation. Polish enterprises feel that Polish law, instead of improving, is getting worse. one of the reasons for the poor quality of the bills is a defective legislation process, which forces legislators to frequently correct mistakes.

besides, it is necessary to carry out some real regulatory re-form. limiting the regulatory power of the state is one of the most effective methods of freeing the development and potential of entrepreneurship in a country. The regulations which are currently in force in many cases too deeply and often in an unjustified manner interfere with running dif-ferent types of business activities. If a good economic legal system existed in Poland, there would be less temptation to go around it.

TrEAT us LIkE PArTNErs

The president of the Polish Chamber of Commerce (KIG), Andrzej Arendarski, tells Made in Poland what it would take to help Polish exporters reach their full potential

5Made in Poland 2011 InteRvIeW

It is also crucial to create a common system of Polish eco-nomic promotion abroad. Until now we have not seen such a system, which leads to the fact that the potential of Polish exports in many fields still remains unexploited.

What�should�foreign�importers�keep�in�mind�when�deal-ing�with�Polish�exporters?

Poles feel appreciated when they are treated like partners. Within the past years a number of foreign businesspeople have come to the countries of central and eastern europe with the “I will show you how business should be done” ap-proach. With such an approach it will be difficult to come to an understanding with a Polish partner.

Poles are a friendly and an open nation – I don’t think that foreign partners should have a problem with establishing positive relations. our managers are perfectly well-educated and know how to operate in the world of international busi-ness. contacts with Polish exporters should not differ from the standards of Western europe.

It is also worth taking a look at what is written about us in foreign business-culture guidebooks. They emphasize that the Polish management style is characterized by hierarchy. Therefore, before the meeting it is important to identify the person who makes the decisions – this will greatly speed up the talks.

Those who know the Polish market also point to the fact that in state-controlled institutions the working model has not changed since democracy was introduced. People working for the private sector, especially those who work for the large

multinational corporations, work in the Western style. This also has its practical consequences. The negotiation process will be much longer in the public sector – at least this is how we are seen abroad.

“Poles will be rather distrustful at the first meeting. Dur-ing business meetings Poles will not joke around to ease the atmosphere for discussion. They are direct and focused. Jokes are left for after work” – this is a quote from one of the foreign websites dealing with business culture. experts advise that instead of jokes, a good presentation should be well-prepared and – something which is crucial – eye con-tact should be maintained throughout the whole meeting.

In the eyes of foreigners we are a nation which will not hide it if something bothers us, and potential partners might even feel offended with such an expression. In contrast to, for example, the Japanese, we do not take advantage of hidden meanings, context, and so on. We also do not like bargaining and raising one’s voice during negotiations, nor banging on the table.

This is the kind of information on Polish businesspeople that can be read in foreign publications. How is it in real life? The best thing is to come to Poland and find out for yourself.

Which�sectors�of�the�economy�may�not�be�great�exporters�now,�but�have�strong�potential�for�export?

There are several excellent companies, products and services in Poland which have a strong potential for export. Reports prepared for the economy Ministry indicate that such sectors

“Poles are a friendly and an open nation – I don’t think that foreign partners should have a problem with establishing positive relations”

6 Made in Poland 2011InteRvIeW

as engineering, It, transportation, jewelry, medical equip-ment, machines, goods made of glass, boats, plastics, cosmet-ics, as well as several others have a significant export potential.

It is worth keeping in mind however that Poland’s traditional export specialties are still agricultural and food products, raw materials as well as the end products, or furniture.

The truth is that thanks to the inflow of foreign investments in the previous years we have also become a significant player in terms of exports in the automotive and home electron-ics sectors, but the fact remains that Polish export is still far from being innovative. The level of innovation of the Polish economy for years has been behind the european and global standards. In international rankings which compare the level of innovativeness of economies, Poland is ranked in the last positions. The level of investment on research and develop-ment, one of the fundamental indicators of innovation, in Poland amounted to only 0.59 percent of GDP in 2008. for comparison, in spain this sum stood at 1.2 percent, in Ger-many 2.53 percent, and in sweden around 4.0 percent.

The situation also does not look too bright in terms of the number of registered patents. This situation is reflected in Polish foreign trade, where hi-tech goods account for only a

fraction of the total ex-ports. We should aim at changing the structure of Polish exports in the direction of increased innovation at any price. Thanks to eU funds for the years 2007-2013, we are capable of sig-nificantly increasing

the innovation-related potential of the Polish economy and become increasingly competitive on foreign markets.

In June this year the Polish chamber of commerce will orga-nize the 2nd Innovative economy congress. Within a group of prominent politicians, entrepreneurs and academics, we will be attempting to answer the question, among others, of how to direct Polish exports to the path of increased innova-tion.

Are�exporting�companies�in�the�chamber�feeling�the�eco-nomic�recovery?

Polish enterprises remain optimistic and believe that this year will be another phase in the return of the beneficial eco-nomic situation. at least this is the result of the european economic survey 2011 carried out by the Polish chamber of commerce last year.

The study indicated that over 66 percent of Polish entrepre-neurs are planning to increase turnover this year, while only 10 percent are expecting a decrease. almost two thirds of the entrepreneurs are planning to see an increase in sales. opti-

mistic forecasts also relate to the export sector. over 45 per-cent of the polled entrepreneurs are planning an increase in export volume.

The research of the Polish chamber of commerce also shows a significant boom in the field of investment plans. In the cur-rent year almost 48 percent of entrepreneurs are planning on increasing investments, while 40 percent plan to maintain them at their current level.

Unfortunately, Polish entrepreneurs show much less opti-mism when it comes to the area of business climate. opti-mism in this field is the lowest as compared to all researched forecasts in the previous years. only 27 percent of entrepre-neurs believe that the conditions of doing business will im-prove. Meanwhile, 28 percent believe that they will worsen. according to 43.6 percent of the polled entrepreneurs, the business climate will not change. This ranks Poland among the countries with the lowest evaluation of the expected con-ditions of doing business.

The entrepreneurs’ sentiment could get worse. We have to remember that the issue of the deficit in the euro zone coun-tries and the resulting crisis still remains a great unknown. The situation in europe can negatively affect the moods of Polish business. We have to hope that the decisions made in brussels aimed at preventing the growth of the crisis will bring about the expected results. This year’s business senti-ment will greatly depend on this issue.

Where�does�the�chamber�stand�in�terms�of�early�or�later�adoption�of�the�euro�in�Poland?�Does�the�chamber�feel�it�would�help�or�hurt�Polish�exporters?

for many years the Polish chamber of commerce has been arguing for early adoption of the common currency. In sev-eral cases we have criticized the postponing of the adoption date of the euro. Postponing the date of entering the euro zone undermines the competitive position of Polish compa-nies and does not allow the entrepreneurs to plan on a stable level and to become fully involved in foreign trade.

The risk related to exchange-rate fluctuations is recognized by the entrepreneurs as one of the most significant barriers to their development and functioning on the european mar-ket. currently around 70 percent of Polish export goes to eU countries, of which a majority is in the euro zone.

In fact, being left out of the euro zone and the weakening of the value of the złoty during the crisis was an additional factor stim-ulating growth and allowed us to avoid the effects of the financial crisis. The crisis however is an exceptional situation and a busi-ness strategy cannot be planned with an upfront assumption that taking a risk is not worth it, because the global economy sooner or later will once again find itself in a crisis situation.

Therefore we retain our stance that Poland should adopt the euro as soon as possible, of course at the most convenient moment. v

“The fact remains that Polish export is still far from being innovative”

�e project will include:• Made in Poland – A guide to Polish export• Mister and Junior of Exports, a competition to award Poland’s best exporting companies and export products – those which distinguish themselves by a high level of quality and innovation• A gala, on June 14th 2011, at which the awards will be given out

Warsaw Business Journal Group and the Polish Chamber of Commerce, under the patronage of the Economy Ministry, have undertaken a new initiative called the Polish Export Promotion Program, aimed at promoting Polish exporters and their products abroad. �rough this project we will shine a spotlight on Poland's export market, as well as the companies and products that it comprises, and draw a ention to their achievements.


To get more information about the project, please contactSales Director Agnieszka Brejwo at [email protected]

�e entry form and competition rules are available on pages 79-82


Warsaw Business Journal Group and the Polish Chamber of Commerce, under the patronage of the Economy Ministry, have undertaken a new initiative called the Polish Export Promotion Program, aimed at promoting Polish exporters and their products abroad. �rough this project we will shine a spotlight on Poland's export market, as well as the companies and products that it comprises, and draw a ention to their achievements.


To get more information about the project, please contactSales Director Agnieszka Brejwo at [email protected]

�e entry form and competition rules are available on pages 79-82

8 exports & poland’s economy Made in Poland 2011

It is well-documented that poland’s economy was the only one in the european Union to grow in full-year 2009. stronger Gdp expansion in the following year served to confirm the country’s solid fundamentals and helped distinguish it from other developing economies on the eU’s eastern border.

economists identified domestic demand and a timely influx of eU structural funds as two key drivers of polish growth in 2009. Inventory rebuilding was added to the equation in the following year. But what part did trade play in helping poland dodge a downturn?

Trade deficitpoland’s economy is not export-oriented, but instead relies on domestic demand for growth – net exports, as a result, rarely have a significant positive impact on the country’s Gdp.

poland’s reliance on imports to meet domestic demand means that, like many developing economies, it consistently reports a trade deficit. and although such trade deficits aren’t necessarily desirable, in poland’s case it ought not to be seen as a negative.

“It is important to know how this imbalance is financed,” said piotr Bujak, a senior economist at Bank Zachodni WBK.

almost all of poland’s trade deficit is funded by long-term capital inflows, mainly from FdI and eU structural funds. and poland has far larger capital inflows than it does out-flows.

“This by itself creates domestic demand for machinery, goods and services from abroad,” mr Bujak said.

That Poland isn’t overdependent on exports has helped it to maintain economic stability

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10 exports & poland’s economy Made in Poland 2011

“poland’s economy is not like china’s or Germany’s,” he add-ed. “The trade deficit is structural in nature and this results from our economy’s reliance on domestic demand.”

The country’s trade deficit grew year-on-year in 2010, reflect-ing strengthening internal demand for imports after the slow-down in the previous year. poland’s combined 2010 exports were valued at zł.469.15 billion by the central statistical of-fice, while total imports stood at zł.522.99 billion, leaving a trade deficit of zł.53.84 billion. The trade deficit for the previ-ous year stood at zł.40.14 billion.

many experts expect to see the gap widen in 2011 as domes-tic demand continues to pick up steam.

“The trade deficit will continue to grow this year,” said piotr Kalisz, chief economist at citi Handlowy.

Net exportsInterestingly, despite the fact that poland nearly always runs a trade deficit, the effect of net exports on Gdp growth was positive in every quarter in 2009. This has generally been attributed to the fact that in that year domestic demand dropped and the złoty fell in value, meaning exports per-formed better than they usually do relative to domestic de-mand.

The impact of net exports on Q4 2010 Gdp growth was -1.2 percentage points – the second and deepest drop since 2008. This, however, merely reflected the growth of “domestic uses,” which grew 5.6 percent y/y in Q4 2010.

Return to formpoland’s 2010 trade volumes picked up significantly from the previous year, as its main trade partners re-stocked their depleted inventories and returned to growth. total exports denominated in złoty leaped 10.8 percent y/y, while imports jumped 12.9 percent. The total value of exports in 2010 was the highest in poland’s history.

poland’s main export goods include machinery and transport equipment, manufactured goods, miscellaneous manufac-

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Exports by commodity type in 2008 and 2009 (in 2009 prices, E millions)

Commodity type 2008 2009

Live animals; animal products 3,565 3,636

Vegetable products 1,947 2,337

Fats and oils 247 257

Prepared foodstuffs 4,331 5,269

Mineral products 4,163 3,199

Products of the chemical industry 5,346 5,886

Plastics and rubber and articles thereof 6,426 5,955

Raw hides and skins, articles thereof 388 323

Wood and articles of wood 2,622 2,067

Pulp of wood, paper, paperboard and articles thereof 2,980 3,105

Textiles and textile articles 3,422 3,403

Footwear, headgear and articles thereof 369 355

Articles of stone, ceramic products, glass 2,310 1,865

Pearls, precious stones, metals and articles thereof 525 531

Base metals and articles thereof 13,529 10,089

Machinery and mechanical appliances, electrical and electrotechnical equipment

25,391 25,360

Transport equipment 16,889 17,765

Arms and ammunition 49 37

Miscellaneous manufactured articles 6,473 5,832

Works of art, collectors’ pieces and antiques 39 43

Source: Central Statistical Office

11exports & poland’s economyMade in Poland 2011

tured articles, food and live animals and chemicals and re-lated products. Imports are very similar to exports, although chemicals, mineral fuels, lubricants and related material also feature strongly.

poland conducts the lion’s share of its trade with its partners in the european Union, who accounted for 78.6 percent of poland’s exports last year and supplied 58.8 percent of its imports. Germany, whose economy bounced back strongly from a sharp contraction in 2009, is poland’s primary trading partner, accounting for 26 percent of all exports last year and 21.7 percent of imports.

The health of the single market, and especially of its German heart, is therefore of singular importance to poland.

Currency movementsThe behavior of the złoty is also crucial. exporters obvious-ly benefit from a weak złoty, seeing more demand for their products from abroad and padded profit margins from the exchange of the strong currencies they receive. But when the złoty is strong, imports become more affordable, allowing the economy to take in more.

most economists therefore agree that the best scenario for the polish economy is to have a stable, and fairly strong, złoty.

But that’s easier said than done when the global economy is as volatile as it has been in recent years.

The polish currency is expected to be strongly influenced by global sentiment in 2011. “Investors will remind themselves about the pIIGs [portugal, Ireland, Italy, Greece, spain] countries’ debt problems,” adam narczewski, managing di-rector of x-trade Brokers Hungary said. “stock markets, after increasing for almost the whole of 2010, should decline in a corrective movement. all those global factors should cause the złoty to lose some ground in the first half of 2011 with possible levels of zł.4.15-4.20 for the eUr/pln and zł.3.22-3.25 for the Usd/pln,” he added.

But polish exporters have had to get used to living with an unstable currency, with many learning to hedge against the risks associated with currency fluctuations.

“even with a strong złoty decline or hike, I do not think the whole [export] industry will go under water. [exporters] would be in real trouble [however] if the eUr/pln goes much beyond the zł.3.00-4.50 range,” said mr narczewski.

The futureThe outlook for polish exports appeared to be good at the start of 2011. purchasing managers Index reports showed a significant pick-up in export orders, which largely reflected the continued expansion of Germany’s manufacturing sector.

But there are nevertheless serious potential stumbling blocks ahead for poland’s exporters. The economies of the eU, and especially those in the euro zone, are generally seeing only sluggish returns to growth. Worries persist that they could be dragged down into the red again if the fiscal problems at the eU’s periphery spiral out of control. This could severely drag on demand and hurt polish exports.

That poland does not rely heavily on exports, however, means it is better protected than most export-oriented econ-omies against deep and sudden global contractions. This was a crucial factor in allowing poland to avoid recession in 2009 and can therefore be seen as one of the country’s strengths.

Gareth Price

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Pro�t. Opportunity. Poland.

To subscribe contact Krzysztof Wiliński: [email protected] advertise contact Agnieszka Brejwo: [email protected]

For daily news see www.wbj.pl

�e leader among English-language business publications in Poland.

13Made in Poland 2011 PaRtneR featURe: branDInG

A ccording to a 2009 survey by the foreign Ministry, Poland is mainly associated with historical figures such as lech

Wałęsa, Pope John Paul II and fryderyk chopin. It is also associated, but less so, with products and brands, although Wedel sweets, among others, appeared in the survey.

Poland lacks the kind of image that brings a distinctive prod-uct to mind. switzerland is associated with banks and watch-es, belgium with chocolates, sweden with IKea and volvo, and france with perfume and champagne. and although Po-land is often identified with vodka, it is difficult to regard this association as appropriate, firstly because it is awkward due to the nature of the product, and secondly because Russia is also famous for vodka, so the association is not exclusive.

When we recently contacted the owners of the leading brand names in Poland in order to determine how much the value of their brand was dependent on export sales, the informa-tion was mostly held secret.

but was the real reason for this the fact that there was nothing to brag about? Popular brands in Poland that have often been pres-ent on the market for over a hundred years – such as Wedel – are seldom recognized abroad by consumers other than Poles.

A Polish product – what is it? In recent years, many consumer brands have been purchased, along with the companies that produced them, by multina-

tionals that usually already had a portfolio of similar prod-ucts. Their obvious priority was to develop brands with global reach.

at that time Polish products were reserved for an internal market that covered a country with a population of nearly 40 million. This resulted in little attention being paid to exports. as a result of the cost of promoting a new product abroad, if Polish products were exported, it was often under a foreign brand name.

It’s true that there were a few niche products that were suc-cessful in foreign markets (buses, boats), but they were not mass consumer products and typically they are not widely recognized.

How it’s done down south traveling in tuscany, I asked a well-known wine producer if indeed the high price of their wines resulted from better quality in comparison to wines from other regions of Italy. I received a surprisingly honest answer – tuscan wines are not better, but thanks to the promotion of the region, their cus-tomers loved them and were willing to pay a higher price. so why haven’t we in Poland built up regional products that at-tract tourists in the same way as Italian wines, french cheeses and scotch whiskies?

While producers are responsible for all promotional ac-tivities, the Ministry of economy’s support in coordinating these efforts would be helpful. but, above all, economic prof-it should be enough to justify the presence of Polish brands in foreign markets.

The heart of each Pole beats stronger when, being abroad, we see a Polish brand: the Inglot store in times square, in Madi-son square Garden an advert for sobieski vodka or Hortex juice in a shop in Greenpoint. However, these things still sur-prise us, even though we would like strong Polish brands in a global market to be something not so out of the ordinary.

We’ve had the chopin year, soon we will have the Polish presidency of the european Union, and in a year there will be the euro 2012 soccer championship. These three events mean that many people are focusing their attention on Po-land. Will we be able to make use of it? v

The presence of Polish brands abroad

Tomasz�Wiśniewski,�CBV,�FCCA,��Partner�in�charge�of�the�Valuations�Team,�KPMG

14 Made in Poland 2011PaRtneR featURe: aID foR exPoRteRs

Financial support for export activities may be obtained from several sources, including european Union funds under the Innovative economy operational Programme, within the Regional operational Programmes and from government programs.

Their goal is to strengthen the Polish economy through the promotion of Poland as an attractive economic partner and a place where valuable business contacts can be made, as well as to increase the volume of Polish exports and the number of businesses engaged in export activity.

among the institutions that support the development of Pol-ish exporters, the first that deserve mention include the Pol-ish agency for enterprise Development (PaRP), the Minis-try of economy, as well as the Marshals’ offices.

Support from PARPThe Polish agency for enterprise Development is responsible, among other things, for the implementation of the Innovative economy operational Programme’s measure 6.1 – Passport to export. This measure is aimed at small and medium-sized enter-prises initiating export activities.

The framework provides comprehensive support for entrepre-neurs interested in establishing business contacts with foreign partners, including, in particular, advice and training to pro-mote export and sales activities abroad, market research and participation in international fairs and exhibitions.

The amount of aid granted to support the preparation and implementation of export development for one entrepreneur may not exceed E200,000.

Ministry of Economy programsentrepreneurs are also able to take advantage of export sup-port tools at the disposal of the Ministry of economy. funds are available under the Innovative economy operational Programme’s sub-measure 6.5.2 – supporting the participa-tion of entrepreneurs in promotion programs – as well as through government programs.

applicants may obtain financing for the cost of promoting their products on international markets from many sources of support. The amount of financial support depends on the source of support.

Marshals’ officesanother source of support for Polish entrepreneurs’ export activities are the Regional operational Programmes. Most of the Regional operational Programmes provide separate measures aimed at strengthening the market position of enterprises, or consolidating their brands in the european market.

In particular, these programs are dedicated to sMes. The Marshals’ offices are responsible for the implementation of Regional operational Programmes. v

Where can Polish exporters find

financial support?

Daniel�Mościcki��Expert,�KPMG�

Kiejstut�Żagun��Tax�Advisor,�Senior�Manager,�KPMG

Reklama WBJ.indd 1 3/15/2011 2:55:21 PM

Reklama WBJ.indd 1 3/15/2011 2:55:21 PM

16 Made in Poland 2011PaRtneR featURe: InvestMent In PolanD

Opinions about doing business in Poland are burdened by many stereotypes. In addition to discussions about the

economy, comments usually focus on problems, crises, or even scandals. When analyzing the scope for a business proj-ect in Poland, one can see that reports from the media focus on unfavorable information or conditions. and it happens that our opinions are affected by commentators who often have no practical business experience.

entrepreneurs, and especially those who have experience in international markets, know that there is no ideal place to in-vest and do business. typically, where a favorable legal and tax regime does exist, there is usually a small local market and/or the presence of very strong competition to deal with.

The potential of a large market within a region or a country is often limited by barriers to access. It requires of investors a higher level of business acumen, particularly in the context of the regulatory environment and the principles of fiscal ac-counts.

Polish bureaucracy: not so relevantPoles often complain about bureaucracy and about taxes. In Poland, it is a commonly held belief that taxes are some of the highest and that the administration in the country is the least friendly to entrepreneurs.

on the other hand, Poland still has high levels of foreign in-vestment, meaning – it seems – tax regulations and adminis-trative hurdles are not the most decisive factors.

Investors have come to invest in Poland from economically liberal countries like the Us. and investors have also come from countries both geographically distant and culturally dissimilar to Poland – like china.

What motivates these companies to locate in the country? The answer to this question can be found in a report pre-pared by the american chamber of commerce in Poland and KPMG entitled, “20 Years of american investment in Poland.”

People: the decisive factorThe report shows that the main factor for companies when they decide whether or not to invest in a particular market is

the type of workforce available. In particular, investors look at the availability of a skilled labor force, which means assess-ing professional skills and education levels. The availability and quality of workers constitute the most important factors in the eyes of american companies investing in Poland.

other important factors include the locations for doing busi-ness in Poland and the size of the market. The growth po-tential of the Polish economy and its stability are also given strong consideration.

The availability of industrial and commercial space is also important, as is the presence of local suppliers and subcon-tractors.

The American approach to businessInvestors from the Us speak less about bureaucracy, exces-sive fiscal policies and unclear regulations. Indeed, they speak less about everything that at first glance appear to be the main issues when we talk about the economy and busi-ness conditions in Poland.

This is the american approach to business. In the face of the country’s bureaucracy and tax system, enterprises operating in Poland can experience more difficult conditions than in other countries – but the economic potential, level of entre-preneurship and the expected and obtained profits prevail as factors for Us firms.

A step further: attracting Chinese investorsKPMG is preparing a study and a report for chinese compa-nies and investors currently present in Poland and for those planning business ventures here.

The report is tentatively titled, “The position of Poland as a business partner for china.” although there are only a few major chinese investors and companies already active in Po-land, increasing numbers are finding space to do business in the country.

The new KPMG report will give us an interesting alternative to the american opinion of doing business in Poland. It may also provide us with the latest revision of stereotypes about doing business here.

changing investment trends and the evolving opinions of en-trepreneurs, as confirmed by KPMG, show that Poland, as a place to do business, is expanding and improving. v

Andrzej�Kaczmarek,�former�Deputy��Minister�of�Economy

how foreign firms see Poland

17PolanD’s MacRoeconoMIcsMade in Poland 2011

If there is one thing that business abhors, it’s unpredictability. especially for importers and exporters, unexpected macro-economic changes can turn what once may have seemed like a smart long-term contract into dangerous ballast.

That is a big reason why foreign investors have shown so much interest in Poland of late. In an environment of global economic insecurity, Poland has remained a remarkably sta-ble ship on rough economic seas.

not that the global economic crisis didn’t rock Poland’s boat. In 2009 GDP growth slid to 1.8 percent, down from 4.8 per-cent in 2008. The first few months of 2009, in particular, saw significant volatility in the złoty exchange rate against key currencies, frustrating exporters and importers.

but compared to other economies on the continent – and in the region especially – Poland fared extremely well, becom-ing the only eU country to see full-year growth in 2009.

The consumer is kingconsumer activity was the driver. Wages continued to rise – but not enough to spur inflation – and the złoty remained stable enough that Poles didn’t default on their largely swiss

franc-denominated mortgages. Unemployment rose at the end of 2009, but didn’t spike.

Recovery was solid in 2010, with Poland’s economy growing by 3.8 percent. consumers continued to buy and inflation remained manageable.

The recovery is expected to continue in 2011, with most ex-perts predicting GDP growth of 4.0 percent or slightly more. conventional wisdom has it that consumption will finally begin to slow this year (although february retail sales figures surprised on the upside at 12 percent growth, higher than even December 2010’s exceptionally strong numbers). at the same time, investment, which has disappointed over the past couple of years, is expected to finally begin to pick up, mak-ing up for the drop in consumption. Prime Minister tusk’s top economic advisor, former PM Jan Krzysztof bielecki, posited as much at the beginning of february.

“The investment cycle in the Polish private sector is short. We usually see two to three years of investment growth and then two to three years when it hardly grows. after the drop in investments which began in 2009 … this year will be the first in which investments in the private sector will grow,”

Stable growth has been the hallmark of the Polish economy, and that is expected to continue

ON sOLID grOuND

18 PolanD’s MacRoeconoMIcs Made in Poland 2011

said Mr bielecki.

additionally, the credit market is loosening up somewhat, so Polish businesses will have more access to financing.

for importers of Polish products, that means that they don’t have to worry about their Polish partners suddenly going bankrupt. for those exporting to Poland, it means that de-mand for products will remain stable.

External factorsbut the Polish economy does not exist in a vacuum – its cur-rent positive performance has much to do with Germany’s impressive recovery. If Poland’s largest trading partner were to run into an economic rough patch, it could have dire con-sequences for the domestic economy.

and, in considering external factors, it is impossible to ignore the destabilizing events that shook the globe in early 2011. The series of uprisings in north africa and the Middle east pushed the price of oil skyward, while uncertainty regard-ing earthquake and tsunami damage in Japan, not to men-tion the nuclear catastrophe, sent shocks throughout the world’s stock markets. When events like that occur, investors lose their appetite for risk and the złoty, still considered an emerging-market currency, heads southward.

so, how will the złoty behave this year?

“Recent global events, including the earthquake in Japan and the military action in libya, increased risk aversion and the sensitivity of investors,” said adam narczewski, managing director of x-trade brokers Hungary. “emerging curren-cies were hurt but quickly recovered. The złoty is a volatile currency and we should not be surprised when we see big exchange-rate swings,” he said.

“nevertheless, the złoty has been depreciating since the be-ginning of the year, a trend that might be maintained in the short-term but not till the end of the year. Higher inflation has caused the Monetary Policy council [the national bank of Poland’s interest-rate-setting body] to act by increasing in-terest rates,” he added.

Mr narczewski expects the złoty to appreciate by the end of the year to between zł.3.8 and zł.3.9 to the euro. “Those are still levels that will make Polish export competitive,” he said.

“In order to affect importers or exporters, the złoty would have to either appreciate dramatically (for example to record lows of 3.20 against the euro, affecting exporters) or depre-ciate dramatically (to over zł.4.5 per euro, affecting import-ers).”

Reasons for worryas Made in Poland went to press, most analysts felt that the złoty would see a steady but slight appreciation by December of 2011, provided the volatility caused by unexpected events settled down. but it was by no means a unanimous view.

Danske bank took a distinctly bearish tone on the złoty in March, downgrading its “near future” forecast for the złoty to zł.4.15 to the euro and saying it was possible it could remain there for 12 months.

The reason? Despite all of the good macro news, the Polish economy is not without problems, and Danske bank analysts felt these were finally beginning to take a toll.

“The markets have not fully reacted” to the “worsening of Polish fundamentals, not only weak public finances and the large current-account deficit, but also higher inflation,” the banks’ analysts wrote. “This should put downward pressure on the złoty over the longer horizon.”

Those “worsening fundamentals” were beginning to filter their way into the political debate at the beginning of 2011. Poland’s budget deficit rose sharply over 2009 and 2010 to eight percent of GDP – prompting the Moody’s rating agen-cy to issue a warning in october 2010 that investors could al-ter their perceptions about Poland if the budget deficit wasn’t brought under control. Poland’s debt-to-GDP ratio was tee-tering perilously close to the 55 percent threshold which, if crossed, would trigger legally mandated spending cuts.

to avoid that embarrassment in an election year, the govern-ment was getting set to institute a set of reforms to Poland’s pension system which would essentially have moved money from Poland’s private pension funds into its public system, allowing the government to shore up its balance sheet.

The proposal had caused a great amount of controversy, lead-ing leszek balcerowicz, a former finance minister, former president of the national bank of Poland and architect of Poland’s post-communist economic reforms, to heavily criti-

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19PolanD’s MacRoeconoMIcsMade in Poland 2011

cize the proposed changes. and while experts disagreed as to whether the changes were actually necessary, there was little disagreement that they amounted to little more than creative accounting, rather than a real improvement in Poland’s fi-nances.

The large current-account deficit that Danske bank men-tioned was also gaining attention towards the end of March 2011, as former finance Minister Mirosław Gronicki, an advisor to the national bank of Poland, revealed a large and unforeseen anomaly in the “omissions and errors” section of Poland’s balance of payment statistics.

The difference amounted to as much as 4.0 percent of GDP – some €15 billion, which experts said probably resulted in an underestimation of imports. If Poland had indeed under-estimated its imports to that degree, it would seriously affect its macroeconomic figures, resulting in significant changes to its GDP growth numbers, possibly dating as far back as 2004. More urgently for the government, it might mean that the debt-to-GDP ratio had already surpassed the 55 percent threshold.

Outlook: stableso does that mean that the end of Poland’s macroeconomic stability is on the horizon? as Made in Poland went to press, it seemed unlikely. a backwards revision of macroeconomic data, while making things tougher on the government in an

election year and making Poland’s macroeconomic situation look slightly worse, would be unlikely to snuff out consumer spending or thwart investments by firms looking to capitalize on the recovery in Poland.

Wages continued to rise and, while inflation was above the national bank of Poland’s tolerance band of 1.5-3.5 percent in february, at 3.6 percent, it was still lower than expected, and was likely to be kept in check by interest-rate rises.

“The current inflation levels are affected by global prices of energy (oil) and food (soft commodities) prices, but real in-flation in Poland is not rising as quickly as in other econo-mies,” said x-trade brokers’ adam narczewski.

“I believe the Polish economy can be considered stable. Its GDP growth forecast for 2011 is one of the highest in the eU. Debt levels are not dramatic and do not require the help of the IMf. employment and wages will keep increasing as the economy is expected to grow, but I do not expect a burst of core inflation,” he added.

so while Poland’s economy has problems like any other, it is still faring far better than many of its neighbors, and is ex-pected to retain its trend of stable growth for the near to mid-term. That’s news in which both exporters and importers can take heart.

Andrew�Kureth

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20 Made in Poland 2011

For many years now, foreign investors and Polish businesspeo-ple alike have beamoaned the state of Poland’s roads. Major cities are connected by roads far too narrow and fragile to cope with the semi-trailer trucks needed to carry imports and exports. for those who can manage the drive, travel times can be long.

Thanks to heavy investment over the last few years, however, Poland’s roads have improved significantly. The change was mainly brought about by european Union structural funds – a large portion of which have been invested in Poland’s road network. The upcoming euro 2012 soccer tournament, which Poland is co-hosting with Ukraine, has provided a fur-ther boost. to prepare for the expected large influx of soccer fans, Poland is currently racing against the clock to have its major cities connected with highways and adequate rail links.

Roads: building speedThe Polish Infrastructure Ministry in January 2011 an-nounced a new program for Polish roads. The “national Road construction Program for 2011-2015” should see a to-

tal of 810.4 km of roads built – including 168.3 km through public-private partnerships.

as part of the previous, but still ongoing, five-year program (2008-2012), a total of 1,166.5 km of roads have been com-pleted. out of this, 183.5 km of highways were built (90 km through PPP) and 293.1 km of expressways.

according to the Ministry of Infrastructure, the state of Polish roads has improved dramatically over the last few years, with the percentage of “bad roads” reduced from 34 percent to 18.9 percent between 2001 and 2009. over the same period, the proportion of “good roads” increased from 28.5 percent to 59.6 percent. at the end of the afore-mentioned plan for 2011-2015, a total of 66 percent of roads around the country are expected to be in “good” condition.

Poland’s roads will reach their potential one or two years after the end of euro 2012, due to heavy investment by the Polish government, said Mikołaj oniszczuk, a member of the board of the association of Polish exporters.

transPoRt InfrastRUctURe

rOADs TO ThE fuTurE

21Made in Poland 2011

“When considering exporting from Poland, foreign firms need to think long-term, about the possibilities the future holds for the country’s infrastructure,” he said, explaining that Poland, because of its position between Western and eastern europe, has a lot to offer.

The long lines at the country’s eastern borders might still hit companies’ wallets, but since Poland joined the schengen area in 2007, transporting goods to other countries in West-ern europe has become a much easier process.

Rail: stuck in its tracksDespite large investments, Poland’s rail system still leaves much to be desired. according to Iwetta Drewko-bieńkowska, director of rail freight at RoHlIG sUUs lo-gistics, it is still well short of Western european standards.

she added that the infrastructure itself is just one of the rail system’s problems. The poor state of rolling stock, a large number of speed limitations and high fees all conspire to drag down Polish rail as a method of transport, she said.

“This all means that the share of container transport by rail in Poland is still only at two to three percent,” Ms Drewko-bieńkowska said, “while the european average is around 15-17 percent and increasing steadily.”

Air: speed and safetyland transport is not the only way to transport goods out of Poland, however, and a much quicker way to export perish-ables, for example, is to fly them to their destination. both forms have their advantages and disadvantages, said Grze-gorz Urban, head of marketing at UPs Polska.

“choosing the right service depends on the customer’s needs. air transport is certainly the fastest and safest option, but its limitation is the higher cost.”

The solution to the logistics conundrum, Mr Urban said, is to find a trusted partner who will assist in finding the most efficient way to transport goods out of the country.

Roberto Galea

transPoRt InfrastRUctURe

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Poland’s exports are the si-lent heroes of its economy. Though the Polish economy is nowhere near as depen-dent on exports as some of its neighbors, exports played a crucial role in keeping eco-nomic growth in positive ter-ritory throughout the global financial crisis. It’s true that domestic demand held up in 2009, but growth still slowed significantly and Polish manufacturers, boosted by a weak złoty, were able to gain market share in important export markets and generate much-needed new revenue. Their competitive prices, combined with a high level of quality, have solidified their places in overseas markets.

but what exactly does Poland export? The answers might sur-prise you. If you live outside Poland, especially elsewhere in europe, chances are you own more products that have been ex-ported from Poland than you realize. That swedish furniture? Quite possibly produced in Poland. That wallet whose manu-facturer sounds vaguely German? also a Polish product. and the name-brand prescription medicine sitting in your cabinet? That’s right, there’s a good chance it was made in Poland.

on the surface of things, Poland doesn’t have a well-known na-tional export. america has its films, Italy its clothes, france its wine, and china, well, just about everything. but Polish exports

nonetheless play a significant, if un-sung role in the global economy.

and while many Polish exports are delivered to end customers under generic or foreign brand names, home-grown brands are also mak-ing a splash in some very competi-tive foreign markets. These include Polpharma (pharmaceuticals), Dr Irena eris (cosmetics), bumar (defense), solaris (automotive) and sunreef Yachts (watercraft), to name but a handful.

In the pages which follow you will find these success stories and more, contained within analyses of eight sectors in which Polish exporters have been particularly

successful: food & agriculture, defense, clothing, furniture, automotive, cosmetics, yachts, and pharmaceuticals. Watch these products – if Poland is to find its “trademark” export, it may well come from one of these sectors in the future.

and that future looks bright, by the way. Polish firms are just getting started. It’s been slightly over 20 years since Poland began its transition to a market economy, and its brands are already competing head-to-head in some of the world’s most developed markets. as Polish firms gain more experience and know-how, they are sure produce even more competitive products and enter even more for-eign markets.

for these stars of export, the sky’s the limit. v

sectoR analYses: IntRoDUctIon

(QuIETLy) rIsINg sTArs

23sectoR analYsIs: fooD & aGRIcUltUReMade in Poland 2011

The year 2011 will be an important one for Polish agri-food exports. Poland’s turn at the presidency of the eU coun-

cil will start in July and, in January, Poland was the partner country at the Green Week in berlin (IGW). both represent huge PR opportunities, considering the dominance of eU countries in general and Germany in particular as markets for Polish agri-food (food produced agriculturally)exports.

Despite fears that eU accession would flood the Polish mar-ket with foreign products, exports have surged and Poland has been a net exporter for several years, with over 80 per-cent of agri-food exports directed to eU markets. since 2003, the value of these exports has increased more than threefold, from E4.0 billion to a projected E14 billion in 2010. and in 2010, Poland’s Ministry of agriculture estimates there was a trade surplus of E3.5 billion.

“Poland’s membership in the european Union produced a dynamic increase in exports of agri-food products and ac-celerated the development of the Polish food economy,” said Mirosława tereszczuk from the Institute of agricultural and food economics (IeRiGŻ) at the national Research Insti-tute in Warsaw. today agri-food exports represent over 10 percent of total national exports.

A bite out of the crisisagri-food exports have also proven resilient in the face of re-cent crises.

While wavering demand form eU consumers during the global slowdown did affect Polish exporters, the decline was moderate. sales of Polish agri-food products abroad droped in 2009 for the first time since Poland entered the eU, but

As local and traditional food products become increasingly popular, Poland might just have found the right jingle

TraDITION AND MODErNITy

TraDITION AND MODErNITy

24 sectoR analYsIs: fooD & aGRIcUltURe Made in Poland 2011

only by around three percent, which compares to a 15 per-cent drop for exports in general. This was in large part due to the depreciating złoty, which helped make all Polish exports more competitive. but agriculture in 2009 was nonetheless the only sector of the economy that had a positive balance of trade, recording a E2.2 billion surplus according to the Min-istry of agriculture.

floods in May and June 2010, for their part, took a toll on over 105,000 farms. Despite this, in the period between Janu-ary and september 2010, the value of foreign trade in agri-food products amounted to E9.593 billion, a 12.7 percent increase from the corresponding period in 2009.

Let them eat Polishalthough Poland is a leading global producer of rye, rape-seed and potatoes, as well as a leading european producer of apples and berries, it is difficult to pinpoint one dominant

sector in agri-food exports. In terms of value, Poland’s biggest agricultural export is meat, including pork, beef and various types of poultry meat. Milk products, baked goods, fish prod-ucts and tobacco also account for a large share of the value of Poland’s exports.

between January and september 2010, Germans, who buy one-quarter of Polish food exports to the eU, bought smoked fish (for E186.9 million), poultry meat (E136.9 million) as well as baked goods (for E101.7 million). britons, the sec-ond-largest eU importers of Polish food, bought chocolate, poultry meat and pork meat. czechs imported Polish poul-try, pork and cheese, while french, Italians and the Dutch purchased Polish cigarettes and beef.

When weakness becomes a strengthaccording to experts, Polish food producers were well-pre-pared to enter the eU, and have been taking advantage – al-

Dairy exportsPoland’s top dairy exports are cheese and cream cheese, 153,000 metric tons of which were sold abroad in 2008. Polish rennet and ripening cheese are popular in Germany and the czech Republic. about 80 percent of Polish dairy exports go to european Union member states. Russia lift-ed its ban on Polish dairy imports in 2008, and has since become an important export market as well. like its meat products, the popularity of Poland’s dairy products is owed to their “natural” image and advantageous prices. However, despite seasonal upward trends, in Q1 2010 exports of dairy products dropped by five percent compared to the previ-ous year. Poland’s top dairy exporters include spółdzielnia Mleczarska “Mlekovita,” okręgowa spółdzielnia Mleczar-ska w Łowiczu, and spółdzielnia Mleczarska w Łapach. v

Meat exportsMeat is the most popular Polish food export. Poland’s an-tipathy to genetically modified organisms contributes to the image of country’s meat as “natural.” Pork, veal and beef are the country’s best-selling meat products abroad.

Poland’s government plans to invest more in meat produc-tion and increase its sale abroad in the coming years. It is es-timated that in H1 of 2011, production of beef may rise by four percent as compared with H1 of 2009. Poland is also successful in the export of poultry meat. Polish goose-meat products dominate the German market. Meat from Poland is also making its mark in asian markets. This year chinese authorities approved some Polish meats for import. The top Polish meat exporters include Zakłady Mięsne Łmeat-Łuków, food service and PKM Duda. v


beit not entirely efficiently – of eU subsidies for agriculture. over 90 percent of food processing-facilities have been mod-ernized and are now in line with eU standards.

but agriculture remains largely inefficient. only around 30 percent of Poland’s over 1.5 million farms are considered by the eU to be competitive, modern farms. a mere 225,000 farmers with plots of over 15 hectares produce about 90 per-cent of Poland’s agri-food products.

The overwhelming majority of Polish farms are smaller than five hectares (70 percent of Polish farms account for less than 20 percent of all arable land) and remain loss-making, highly inefficient and oriented towards self-supply. The resulting situation is that agriculture employs 15 percent of Poland’s workers and generates only four percent of GDP.

However, small-scale, “traditional” farming, which uses few chemicals, results in agricultural products that are perceived as healthy, authentic and which have a smaller impact on the environment. In other words Polish farms, compared to their highly industrialized and large-scale Western european

counterparts, are well-positioned to cater to seekers of natu-ral, traditional products.

A wise betand their ranks among european consumers are growing. “We are witnessing a trend of moving away from fast food,” Minister of agriculture Marek sawicki told Made in Poland. “consumers are looking for traditional, natural products that are safe and without artificial additives and preservatives.”

and these customers are prepared to pay. “There is a grow-ing market for high-quality ecological and regional products, and european consumers prefer to accept a high-quality product even if it is a bit more expensive, but produced in line with nature, using traditional methods,” commented Władysław Łukasik, president of the agricultural Market agency (aRR).

This, it seems, is the bet Poland has made to promote Pol-ish food in a year of high-visibility within the eU. for the Green Week in berlin, Poland prepared “an invitation to a

Other

Cereals and cereal products

Tobacco and alcohol

Oil and oil products

Sugar and sugar products

Potatoes and potato products

Fish and fish products

Vegetables, fruits and mushrooms

Milk and dairy products

Animals, meat and meat products

Structure of agri-food exports in terms of value, 2009

Source: Institute of Agricultural and Food Economics (IERiGŻ)

Poland’s agricultural exports and imports, as well as the resulting trade balance, in € million

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3

6

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12

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BalanceImports

Exports

2010*200920082007200620052004

26 sectoR analYsIs: fooD & aGRIcUltURe Made in Poland 2011

culinary journey of discovery around Poland’s most attrac-tive regions, where people still live in harmony with nature and where they still prefer traditional foods,” in Minister sa-wicki’s words.

according to him, the “wisdom” of keeping traditional forms of farm management allows Poles to offer products which modern consumers are now looking for. “one could say we are modern traditionalists,” he said.

The confirmation that this strategy has been somewhat suc-cessful is the fact that Poland has registered 23 products in the eU system of protected designation of origin, protected geographical indication and traditional specialty guaranteed. Thirteen other products are awaiting registration. albeit modest when compared to Italy’s 231 registered products or france’s 187, Poland fares well compared to fellow cee countries. In the region, only the czech Republic (25), Hun-gary (7), slovakia (6) and lithuania (1) have registered products so far.

Get them organizedPolish agri-food exports have the advantages of high quality, competitive prices, a large workforce and no shortage of in-vestment. but are farmers and entrepreneurs taking advan-tage of the situation?

on the positive side, organic farming is developing dynami-cally. between 2004 and 2009, the number of organic farms grew almost five-fold, passing from 3,760 to 17,000 farms, and this trend is expected to continue. This year, the Minitry of agriculture is also launching a program to revive Polish lo-cal markets, where farmers will be able to sell their products directly to consumers. efforts are also made to develop agri-tourism, and the Ministry of agriculture has devised a com-mon promotion strategy together with the Polish Informa-tion and foreign Investment agency (PaIiIZ) and the Polish tourist organization (Pot), which launched at the Green Week in berlin in January.

but according to all of the experts Made in Poland consulted, the level of disorganization in the market remains a sizable obstacle.

farmers need to form groups and build closer relations with food-processing businesses. Producers also lack organiza-tions, as well as distribution channels and retail facilities, and should aim to bring together production, processing and re-tail. exporters also tend to be loosely connected and do not benefit from strong exporter’s clubs.

“Many producers are too small to act independently and conclude great contracts on distant markets,” said the aRR’s Władysław Łukasik. “The weakness of Polish exporters is that they cooperate weakly with each other in external markets.”

Polish agri-food products also lack a long-term promotional strategy. Indeed, although the Polish diaspora, which ac-counts for an important part of eU demand, buys products that they know from home, there are very few strong, recog-nizable Polish brands. It also does not help that Polish prod-ucts are not always sold under their Polish food producers’ brand name in europe.

according to Mr Łukasik, Polish food producers and export-ers also lack support from financial institutions. “Polish ex-

Biggest export markets for Polish agri-food products, January-September 2010

Country Value (E billion)

Germany 2.111

United Kingdom 0.671

France 0.598.8

Italy 0.656

Netherlands 0.555

Russian Federation 0.548

EU27 7.620

Total 9.693Source: Ministry of Agriculture

Other

Cereals and cereal products

Tobacco and alcohol

Oil and oil products

Sugar and sugar products

Potatoes and potato products

Fish and fish products

Vegetables, fruits and mushrooms

Milk and dairy products

Animals, meat and meat products

Structure of agri-food exports in terms of value, 2009

Source: Institute of Agricultural and Food Economics (IERiGŻ)

Poland’s agricultural exports and imports, as well as the resulting trade balance, in € million

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* estimate

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3

6

9

12

15

BalanceImports

Exports

2010*200920082007200620052004

Fruit and vegetable exports

Poland is an important producer of fresh fruits and veg-etables as well as their preserves, such as juice concentrates and pickled cucumbers. Whereas in the period of January-november 2010 the biggest market for fresh Polish fruits was the commonwealth of Independent states, both fresh vegetables and preserves were exported predominantly to eU countries. Importantly, unfavorable weather condi-tions severely affected Poland’s fruit and vegetable sector in 2010. fruit crops decreased by 25 percent, whereas the pro-duction of field vegetables fell by 13 percent, amounting to 2.7 and 4.2 million metric tons respectively. experts predict that the period of 2010/2011 will see a decrease in exports of almost all fruits, vegetables and their preserves. v


porters do not have as broad insurance available to them as their Western european counterparts, and are therefore more at risk when it comes to delays in deliveries and the like.”

Looking eastfor the time being, Polish exports remain competitive on the eU market because of their price. but this could change, warned IeRiGŻ’s Mirosława tereszczuk. “In fact it has al-ready changed since Poland’s eU accession. Prices are going up, we see it this year, with everything going up by two, three percent, and this will continue.”

on the one hand, Poland must deal with an ongoing liber-alization process on the eU food market. cheaper products from asia or MeRcosUR countries (argentina, brazil, Par-aguay, and Uruguay) are being made available to european consumers. but these markets, which have led the global recovery, also have consumers with increasing purchasing power, and this could also be an opportunity for Poland.

for example, a new eU-south Korea free-trade agreement, which should come into force in July 2011, could bring sig-nificant results, according to tai-sik lee, general director of the Korea trade-Investment Promotion agency (Kotra) in Warsaw. Prospects for Polish pork meat in particular are looking up.

The agriculture Ministry is making efforts to facilitate trade

with asia. In May 2010 Minister sawicki went on an official visit in china and signed a protocol which was described as a “milestone” on the way to exporting pork meat to the chinese market. and in february, Polish poultry exports re-ceived the green light from chinese authorities.

but according to Mr lee, Polish businesspeople are generally not very used to doing business with asian countries, instead focusing on european markets. The lack of a developed and established network for economic cooperation is another factor slowing down trade.

closer to the east, trade with the commonwealth of Inde-pendent states (cIs) is being revived. These former soviet republics used to be Poland’s main trade partners, but trade plummeted after the fall of the soviet Union and Poland’s en-try to the eU. Relations with Russia also suffered under the leadership of the law and Justice (Pis) party, and between 2005 and 2007 some Polish exports were subject to an em-bargo.

In the first three quarters of 2010, exports to the cIs consti-tuted only around 10 percent of total agri-food export value, amounting to E992 million. but this represented an increase of as much as 31.5 percent from the first three quarters of 2009 according to the Ministry of agriculture.

Rebuilding exports with Russia and cIs countries is diffi-cult and things are progressing slowly. “In some cases Polish

28 sector analysis: food & agriculture Made in Poland 2011

companies were replaced by others from the eu, argentina, new-Zealand, who have secured long-term agreements,” said Mr Łukasik. But, according to Ms tereszczuk, that is where Polish food exporters should concentrate their efforts. “east-ern markets, in my opinion, are the futures,” she said.

Green rush?With relative geographic proximity, competitive prices and eu membership, Poland is well-positioned to tap into east-ern markets. But although their importance is bound to in-crease, the eu, and germany in particular, are expected to remain the principal destination for Polish agri-food exports for the near future.

an increased budget for promotion, as well as concerted strategies, should enable Polish producers and exporters to benefit form a good visibility at the european level this year.

High-quality products, which answer a growing demand for natural and traditional food, sport good chances of being well-received.

lack of cohesion among and between Polish farmers, pro-ducers and exporters will likely continue to impair their abil-ity to make the most of this situation. But on the other hand, this leaves vast investment opportunities for entrepreneurs interested in importing Polish food and agricultural products and, according to Minister sawicki, those investors should hurry, because those opportunities won’t last forever.

Alice Trudelle

Alcohol exportsas an important producer of alcohol, Poland actively en-gages in conquering new foreign markets.

starting from april 2011, sobieski, one of Poland’s best-known brands, will target the promising indian market. following in its footsteps, Żubrówka intends to enter an-other distant market, namely china. according to the esti-mates of the Polish spirits industry employers union (ZP PPs), export of spirits in 2010 reached 52 million liters, as compared to 42 million liters a year earlier. two of the big-gest importers of Polish vodka in 2010 were france and the us, with exports worth E41 and E12 million respectively. v

29sector analysis: defenseMade in Poland 2011

Under-invested, under-innovative and plagued by under-developed infrastructure – those are the kinds of under-

whelmed opinions you might hear about Poland’s defense industry. others include, “half the companies in the sector are state-owned” and “the sector is over-reliant on govern-ment budget decisions.”

That might be a fairly accurate assessment of the state of the Polish defense industry, but it’s only half the story. in fact, the industry has seen a number of noteworthy successes over the past few years and it’s pushing to export more equipment.

Poland’s big gunsThe core of the Polish defense industry comprises around 100 companies, of which roughly half are state-owned or state-influenced. The remainder are privately owned, a mix of formerly state-owned firms, foreign-controlled subsidiar-ies and greenfield investments.

The largest player in the Polish market is the treasury-owned Bumar Group, which is undergoing restructuring in order to develop synergies in the otherwise fragmented Polish defense market. Bumar now includes more than 20

Poland’s defense industry is still a work in progress, but business is booming when it comes to certain products

TargeTing foreign markeTs

TargeTing foreign markeTs

In cooperation with:

30 sectoR analYsIs: Defense Made in Poland 2011

companies operating in four divisions: amunicja (ammuni-tion), Żołnierz (soldier), elektronika (electronics) and ląd (land). as a state-owned firm, bumar has naturally been fo-cused on the domestic market, but it is increasingly turning to exports.

The company’s export sales have amounted to approximate-ly $200 million annually over the past few years, which is roughly 20 percent of its total revenue. Group ceo edward nowak wants to push this figure to 30 percent by 2012.

That’s a fairly ambitious goal, in comparison with the world average. according to industry publication Defense News, ex-port sales make up about 10 percent of total revenue in the international defense sector.

a big chunk of bumar Group products are shipped to asia – Mr nowak cites India, Indonesia and Malaysia as the largest customers – as well as the Middle east and north africa. The

group’s offer has also found interest in the otherwise satu-rated markets of europe and north america.

Old favorites and new gearbumar, as the largest firm in the domestic industry, naturally has the broadest export portfolio. Mr nowak admitted that many of the group’s products are “historical,” but he never-theless made a case for the Pt-91 tank (produced by sub-sidiary ZM bumar-Łabędy), which does eerily resemble old soviet tanks.

The machine has been continually modernized and fulfills all of the modern defense industry’s stringent requirements, Mr nowak stated. Malaysia, for example, bought almost 50 Pt-91s in the 2000s, with bumar completing the contract in 2009.

another old favorite is the Kalashnikov rifle, which has been produced in Poland “forever,” according to Mr nowak, and

“Another old favorite is the Kalashnikov rifle, which has been

produced in Poland ‘forever’”

32 sectoR analYsIs: Defense Made in Poland 2011

will continue to be produced in Poland. This weapon too has undergone improvements over the years and draws interest due to its reliability, simplicity and relatively low price.

There’s more to bumar’s offer than soviet-flavored equip-ment, though. trinitrotoluene (aka tnt), a product of by-dgoszcz-based bumar subsidiary nitro-chem, has become very popular internationally and has, for example, success-fully penetrated the Us market.

export of tnt to the Us started as part of a 2003 offset agreement with lockheed Martin accompanying the sale of f-16s to Poland. This opened the door to a large and de-manding market. according to sławomir Kołakowski, head

of the Polish chamber of national Defense Manufacturers, aerospace firm atK was especially impressed by the qual-ity of the product, as well as the level of service. This lead to further orders, beyond the original offset agreement, and a four-year contract worth over $55 million.

last year, total exports of the explosive generated over $30 million for bumar.

Pco, another bumar subsidiary known for its optical equip-ment, recently brought to the market its monocular Mtn-1 product, which fuses night-vision and infrared capabilities. according to the firm, this is the first product of its kind to be produced in europe.

Then there’s the Rosomak armored vehicle, a bumar product based on a design from finnish defense firm Patria. The Pol-ish Defense Ministry has expressed its own satisfaction with the Rosomak, a modified version of which has been deployed in afghanistan. It has been marketed in a number of foreign countries, however, and there are hopes that it could find a home alongside the Pt-91 in Malaysia.

Private-sector competitionPZl Mielec is another firm known for exports. The country’s largest producer of aircraft, it was founded in 1939 and priva-tized in 2007; today it is a unit of United technologies cor-poration, making both civilian and military aircraft.

The most recent addition to its portfolio is the s70i black Hawk helicopter (sikorsky aircraft, owner of the black Hawk brand, is a sister company). The company plans to build 20 of these machines annually from 2012, all slated for export sales.

sikorsky sees potential demand for the black Hawk reaching 1,000. The facility in Mielec is considered one of the most tech-nologically advanced in the group, a fact which even the compe-

tition acknowledges – bumar’s ceo described PZl Mielec as one of the most promising aviation companies in Poland.

Then there’s Wb electronics, which describes itself as the leading Polish manufacturer of specialist electronic solu-tions for the military. The privately held company provides c4I (command, control, communications, computer and intelligence systems) solutions and it has ambitious expan-sion plans. The firm recently purchased a controlling stake in Radmor, a previously state-owned manufacturer of mobile vHf/UHf radio communication equipment.

Wb’s latest product is the flyeye, a unmanned reconnais-sance craft which has a range of 300 km, can fly at 6,000 me-ters and weighs 15 kg. The firm boasts that the flyeye can be carried in a large backpack, assembled in 15 minutes and literally launched by hand.

Defense of the futurePlenty of modernization and consolidation awaits the domestic defense industry if it is to meet the demands of today’s clients.

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33sectoR analYsIs: DefenseMade in Poland 2011

Yet it’s not as though Polish firms are bringing blunderbusses and catapults to the market. Many products are tried-and-true, yes, but innovative solutions are also appearing.

The past 20 years of free-market trade in Poland has undeni-ably led to progress, be it through the consolidation of state-owned assets, the privatization of existing facilities or the development of new ventures.

further international partnerships are also likely. In early 2011, for example, bumar and Italian defense giant finmec-canica inked a memorandum of understanding regarding possible partnership in offset agreements, a “soldier of the future” project and optoelectronic systems.

finmeccanica, it seems, is among the growing number of for-eign firms with a positive opinion of Poland’s defense sector.

Mark�Ordon

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Bumar Group is the leading Polish pro-ducer and exporter of military equipment

and armaments. The main recipient of Bumar Group’s products are the Polish Armed Forces, especially the divisions taking part in foreign missions.

In Poland there are currently more than 100 companies operating in the security and defense sector. Bumar Group is the largest player in this field, bringing together 24 companies which em-ploy 12,000 workers.

The majority of Bumar Group’s subsidiaries are 100 percent owned by the State Treasury. War-saw-based Bumar sp. z o.o. fulfills the function of the dominant entity.

The group consists of several divisions that can be defined as consortia bringing together companies of the same product profile or creating similar systems platforms. These include: Bumar-Ammunition, Bu-mar-Soldier, Bumar-Land and Bumar-Electronics.

Bumar Group’s total revenue amounts to over $1 billion. Among Bumar’s best companies are PCO SA, Nitrochem SA, Maskpol SA, Mesko SA, Dezamet SA, Cenzin sp. z o.o. as well as the leading entity, Bumar sp. z o.o.

Bumar is the largest producer and supplier in the armaments sector in Central Europe. Asian countries belong to its most important export markets, accounting for almost 85 percent of Bu-mar’s export sales. Specifically, Bumar exports to Malaysia, India and Indonesia. Other destina-tions for Bumar’s products include Europe, the Middle East, Africa and the United States.

Bumar Group’s subsidiaries specialize in the production of ammunition and rockets, land platforms, electronics, equipment and armor for soldiers and officers, trainings, logistics and service. The companies offer also night-vision and optoelectronic equipment, equipment for individual soldiers, radars, air-defense systems, ammunition of various calibers – including non-

ricochet ammunition – gunpowder, armored tanks, technical vehicles and track bridges.

The defense sector is one in which modern tech-nologies are used extensively, with elements of electronics, information-communication technolo-gies, transport, as well as bio- and nano-tech-nologies. Bumar Group has increased its R&D expenditures to $60 million to offer its clients modern solutions, especially in the fields of op-toelectronics and equipment for soldiers.

Bumar Group is developing the Future Soldier system within the TYTAN program: work on a new type of assault rifle, the Modular Systems Small Arms MSBS 5.56 mm, is advanced; the FUSION night-vision and thermo-vision mon-ocular also emerged within the program.

Bumar Group’s newest research and development product is the Multifunctional Track Platform ANDERS in the form of an armored vehicle, a so-called light tank. One of the biggest proj-ects of the Bumar Group is the construction of the anti-aircraft and anti-missile defense sys-tem in Poland, called “THE POLISH SHIELD” (“TARCZA POLSKI”), which is being developed in cooperation with European partners. v

a d v e r t o r i a l f e a t u r e

Bumar Group

34 sectoR analYsIs: clotHInG Made in Poland 2011

Even if you’ve never been to Poland, there’s a good chance you’ve unknowingly worn – and perhaps appreciated – clothes made there. The country has a proud tradition of textile trade, mainly centered around Łódź, although the city is no longer the industrial powerhouse it was during the late 19th and early 20th centuries.

Łódź retains its reputation as the country’s textile capital, but the end of communism saw international clothiers set up production facilities in various locations around Poland. levi’s, for example, founded its factory in Płock in the early 1990s. It and other multinationals entered the market to stem the flow of counterfeit products from asia and to take advantage of low production costs.

The products they manufactured were destined for both the domestic and Western european markets, although there was a greater focus on the latter, at least at first. However, the Polish market quickly grew in importance.

times have changed, however. Poland is no longer just a low-cost manufacturing base, and the value of the market – in-cluding exports – is large and growing. Homegrown clothiers are pushing into new markets with some success.

Western allureRedan is one such example. one of Poland’s largest apparel-makers, it owns popular brands such as top secret, troll, textil Market and Drywash. The firm plans to open a total

It will be a while before customers associate Poland with haute couture, but local firms are sizing up foreign markets

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35sectoR analYsIs: clotHInGMade in Poland 2011

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of 265 new shops in 2011, including locations in Ukraine, belarus and Russia.

“We already have around 20 stores in Ukraine, three in Rus-sia which operate on a franchise basis and three stores in be-larus. We opened our first foreign store in Ukraine in 2005,” said bogusz Kruszyński, president of Redan.

“at the beginning, our brand was totally unknown over there and it took some time and effort to convince people that our clothes are well-designed, but right now we are very pleased with our position in that market,” he said.

asked why, like many other Polish clothiers, Redan chose english names like top secret for its brands, Mr Kruszyński said his firm had just followed what was common practice among Polish clothiers at the time.

“top secret was established in 1996 and then everybody was

simply picking english-sounding names because they were bet-ter received by the public than Polish-sounding names,” he said.

This reluctance to use Polish names to sell clothing brands is a hold-over from the communist period, when people re-garded products made behind the Iron curtain to be of infe-rior quality to those produced in the West.

another example of a Polish retailer using a “Western” brand name is successful luxury leather goods maker Wittchen, which was established in 1990. The firm now has around 50 stores in Poland. Its products are also available in Rus-sia, where it has 10 shops, as well as in Ukraine, lithuania and belarus. last autumn, Wittchen opened its first store in Prague, czech Republic.

The company adopted as its brand name the surname of its owner Jędrzej Wittchen, a Pole born in Międzychód, a city close to the German border. He says that his firm is associ-

36 sectoR analYsIs: clotHInG Made in Poland 2011

ated with “German precision” and this has been very helpful in foreign markets as well as in Poland.

“Just like in Poland, many clients in the east don’t know they are buying a product which is Polish, because of the name, which sounds German or to some, even Italian. Rus-sians love products from those countries. If a client asks, we of course tell him that it is a Polish product. but we don’t advertise this fact in our marketing campaigns,” said Mr Wittchen.

Tailored to fit new marketsfootwear-maker nG2 is another Polish company which is gaining traction in foreign markets, albeit slowly. The firm, which owns the ccc, botI and QUaZI brands, had sales of over zł.1 billion in 2010, making it the leader in Polish shoe sales. at the same time, the value of its exports was just zł.53 million.

nG2’s brands are gaining ground in the czech Republic. “In 2005, we opened our first store in the czech Republic and we now have 48 stores there. but I will admit that we had a lot

of problems at the beginning,” said Piotr nowjalis, the firm’s vice president.

Mr nowjalis said that even though the average czech has more disposable income than the average Pole, he tends to spend less on clothes than his Polish counterpart and is very conscious of the price-to-quality ratio.

“In Poland we have been trying to improve our brand image, but in the czech Republic, we avoided that and stuck with the cheap, discount-store image. That worked over there, but we are opening a store in Russia this March and there our products will be more expensive than in Poland,” he said.

Wittchen has also tailored its products to fit the Russian mar-ket.

“The products we sell in Russia differ from those in Poland. classic design is not valued there. In Russia products need to be more extravagant and luxurious, with more decorations on them. The most difficult part in breaking into a foreign market is identifying the particular needs of the potential customers in that market,” said Mr Wittchen.

37sector analysis: clothingMade in Poland 2011

Building a brand the hard wayit would seem, then, that the trick is to create a “need” in the fashion market for Polish products. Brands are gener-ally perceived the same way as their country of origin is per-ceived. german products are associated with precision and durability, italian clothes are seen to be stylish and flamboy-ant, French clothes are connected with luxury and elegance, american with trend-setting.

There’s just one problem – building such a reputation usually starts at home, and Poles themselves can be just as skeptical as foreigners when it comes to Polish-born fashion.

in an interview for fashion website Moda.com.pl, Mr Wittch-en recalled how it pained him at the beginning of his firm’s activities when Poles thought Wittchen couldn’t be Polish because of the good quality of its products. he recalled how the company had conducted a market survey in the mid-1990s in which women were invited to share their opinion of Wittchen’s accessories. Their initial comments and impres-sions of the brand were very positive.

however, their attitude changed immediately they were in-formed Wittchen was a Polish firm. They then retreated from their previous opinions and instead offered comments such

as “well, for a Polish product, it’s not bad at all.”

“in Poland we are still convinced that if something is Polish then it cannot be good,” complained Mr Wittchen.

Paradoxically, Poles – and Western europeans – seem happy enough to buy Polish-crafted levi’s and other international-known labels. Thus it would seem a matter of branding rather than quality or interesting design.

Mr Wittchen himself noted as much. “Many Polish clothiers have successfully entered eastern markets in the last couple of years. That in itself proves that our quality and design are not of a lower standard than that of other international brands. if they were, we wouldn’t be able to compete success-fully on these markets,” said Mr Wittchen.

creating a strong “Polish brand” in the world of fashion will be an uphill battle, but the market is large and its pool of talented professionals is deep. it is a matter of time before they create a new, internationally recognized tradition for quality much like the one their forebearers earned in late 19th century.

in the meantime, lacking this national brand, Polish firms will have to earn international respect the hard way – one sale at a time. Remi Adekoya

38 sectoR analYsIs: fURnItURe Made in Poland 2011

Poland has a long and proud tradition of furniture making, due in part to the abundance of timber in the country. The government estimates that about 30 percent of the country is forested today, down from approximately 40 percent at the end of the 1700s.

The availability of wood and centuries of experience have helped to make Poland into a giant of the furniture industry. as of 2010, the country was the 10th-largest furniture pro-ducer in the world and the fourth largest exporter by value, according to data from the Polish chamber of commerce of furniture Manufacturers (oIGPM).

Polish furniture companies export about 85 percent of their production, according to oIGPM, with the majority des-tined for the european market. and, through investment (both foreign and domestic) as well as the hard work of lo-cal employees, the industry has earned a reputation for high-quality, sturdy and affordable products.

Splintered industrystill, the sector has had a hard time of it over the past few years. according to credit information provider coface Po-land, furniture production was one of the few sectors to see

The Polish furniture industry has endured a couple of hard years, but its fortunes may be improving

TurNINg ThE TAbLEs

TurNINg ThE TAbLEs

39sectoR analYsIs: fURnItUReMade in Poland 2011

bankruptcies rise y/y in 2010, increasing from 10 a year ear-lier to 15. a drop in consumer spending brought on by the financial crisis, the rising cost of raw materials, the slow re-vival of exports and currency fluctuations have all plagued the industry.

Many of the large international firms have launched produc-tion operations in neighboring Ukraine or Russia in order to reduce production costs and avoid stringent regulations. Meanwhile, the products which are produced in Poland can sometimes be hard to spot. some are exported unbranded, while others are marketed under foreign brands.

The latter is true for swedwood’s output, for example. The firm is a unit of IKea and its products are marketed ac-cordingly (although you can usually find “Made in Poland” stamped on them somewhere).

Top 10 importers of Polish furniture, 2005 and 2010 2005 2010

1 Germany Germany

2 France France

3 United Kingdom Czech Republic

4 Switzerland United Kingdom

5 Czech Republic The Netherlands

6 The Netherlands Switzerland

7 Belgium & Luxembourg United States

8 United States Belgium & Luxembourg

9 Slovakia Spain

10 Hungary ItalySource: Polish Chamber of Commerce of Furniture Manufacturers

40 sectoR analYsIs: fURnItURe Made in Poland 2011

Major manufacturersManufacturers seated in Poland have had a harder time of it than their multinational peers, but are nonetheless seeking new markets and trying out new solutions.

Meble Kler is one such firm. Though not a giant of industry, it has carefully crafted its image as a luxury furniture brand. a factory in Dobrodzień makes all of the firm’s products, which are then distributed via 36 showrooms and seven franchise outlets in Poland.

The firm’s international network is developing as well, with Kler showrooms in brussels, Prague, brno, Hradec Králové and České budějovice. This past January it opened its second German sales showroom, located in the center of cologne, and Kler furniture reaches other european markets, as well as far-off destinations such as the Us or Japan, through partner networks.

The largest Polish player in the industry, meanwhile, is the black Red White Group, a manufacturer and distributor of

furniture and interior design accessories. The company com-mands 20 percent of the market in terms of sales revenue, according to its own estimates.

The group comprises black Red White and 20 subsidiaries, including nine enterprises located in Ukraine, belarus, slo-vakia, Russia and bosnia and Herzegovina. Production is car-ried out in 21 manufacturing facilities in Poland and about 30 percent of production is exported to 50 countries in europe and north america. The group’s sales distribution network consists of 2,000 sales outlets, half of which are located out-side of Poland.

The nowy styl Group, another major player, is just as exten-sive, with subsidiaries spread out in 12 countries and an of-fering organized in four product lines: nowy styl, bn office solution, forum seating and baltic Wood.

nowy styl’s current strategy focuses on rapid expansion through mergers and acquisitions. In early 2011 the group purchased German chair manufacturer sato office, which specializes in the supply of furniture for offices, cinemas,

41sector analysis: furnitureMade in Poland 2011

theaters and auditoriums. The move has allowed nowy styl to further develop its presence on the German market and it estimated its 2011 revenues from Germany would come in at E40 million, double the previous year’s figure.

The group expects E200 million in total revenue for 2011. That’s an impressive leap for a company that started off in 1992 with seven associates and three chair models.

Rebuildingalthough it’s weathered hard times, the Polish furniture in-dustry now appears to be recouping strength.

export sales are on the rise, for example, albeit slowly. in 2010, Poland’s furniture exports totaled E2.83 billion, up 1.16 percent on the previous year. economic woes in the euro zone could hinder growth, but high quality and care-ful pricing will help to keep Polish-made products com-petitive. ambitious growth strategies will have an influ-ence as well.

in the meantime, furniture “made in Poland” will continue to meet client demand – and expectations – in markets old and new. Mark Ordon

++Bar graph++Total value of furniture exports (in EUR billions), 2006-20102006r 5.0742007r 5.7192008r 6.0612009r 5.171Source: Central Statistical Office

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42 sectoR analYsIs: aUtoMotIve Made in Poland 2011

East of Germany and Italy, the european automotive indus-try has a decidedly mixed reputation. slovakia has become a well-known export center, for example, but has no recog-nizable vehicle brands of its own. Romania, meanwhile, is gaining notoriety for Dacia, a unit of Renault, but the brand remains best known in central and eastern europe.

on the other hand, failures of the past are hard to live down – the now defunct state of Yugoslavia is still renowned in the

United states for its Yugo (Zastava Koral) vehicle, which earned the inglorious nickname “Yugo nowhere.” certain iconically squat communist-era brands have gained cult fol-lowings, but this has no significance for the mainstream in-dustry.

for its part, Poland’s automotive industry carries little his-torical baggage, but has enjoyed equally few successes. as it stands today, the industry is largely an “under-the-hood” af-

Poland is quietly becoming a leader in auto and auto-parts exporting

DrIvINg fOrcEsDrIvINg fOrcEs

43sector analysis: automotiveMade in Poland 2011

fair. a few home-grown brands are gaining traction, yet Pol-ish parts and labor go into plenty of internationally branded products.

Export by the numbersaccording to a ranking of the top 100 exporters in Poland in 2009 issued by Polityka (the 2010 ranking had not been published as Made in Poland went to press), Fiat was the country’s second-biggest exporter and the leader in the au-

tomotive market. moreover, the auto industry accounted for over a quarter of the list.

Bus and tram producer solaris was the only Polish-owned entity among the top 10 auto exporters that year.

The value of Polish auto exports has risen fairly steadily over the years, discounting a financial crisis-induced dip in 2009. a total of E11.61 billion “non-rolling stock vehicles, parts and accessories” were exported in the first three quarters of 2010,

solaris, a maker of buses and trams, is arguably the biggest success story in the Polish auto industry. Founded as “neo-plan Polska” in 1994 by Krzysztof olszewski, an engineer who spent most of the 1980s in West Germany, the company took on its current name in 1999 and began exporting its products in 2000.

solaris’ first cross-border sales were to Germany and the czech republic. eleven years later it is pres-ent in 22 foreign markets with annual exports worth more than zł.800 million.

according to mateusz Figa szewski, solaris’ spokesper-son, in making its first sales the firm had to overcome a deficit of trust.

“in those first years it was very tough to build customers’ awareness of a Polish brand,” he said. “There was some kind of risk connected with dealing with a Polish company in this industry. But very quickly it became obvious for opera-tors, especially from Western countries, that we are a reli-able partner.”

The key to gaining trust, mr Figaszewski stated, was “flexibil-ity, listening to customers’ wishes, delivery of expectations and quality which is on the same level as many other top eu-ropean manufacturers.”

as it has established its brand, solaris has also worked to diversify and in-novate. in 2006 it became the first manufacturer in eu-rope to launch a hybrid bus, for example, and it currently claims to have the widest range of such vehicles on the market. it also added trams to its offer in 2010.

looking to the future, so-laris wants to offer new,

“greener” products. it is working on a prototype of a purely electric bus and is considering the development of ultra-light bus frames to reduce fuel consumption.

Getting to this stage wasn’t easy, mr Figaszewski said. “But after a few years, and especially after joining the eu, i think we’re on equal rights as any other well-known brand amongst bus operators.” v

Solaris’ route to brand recognition

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Poland’s top five automotive-sector exporters (export revenue in zł. billions), 2009

Value of car parts and accessories export (in € billions)

Top 10 automotive export destinations by value (in € millions), Q1-Q3 2010

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for example, up from E7.47 billion for full-year 2004 (the ear-liest data available from the central statistical office).

This year is expected to maintain the overall export growth trend.

“In terms of car production and export, we can expect that the situation will be at least similar to last year, or maybe even a little better,” commented Wojciech Drzewiecki, head of auto-market analysis firm samar. car production will be maintained, he said, because fiat will still be making its older model Panda and its new lancia model will start production. The end of Panda production will hurt production figures starting in 2012, however.

Vehicles for successPolish car production and vehicle export are dominated by foreign brands, which generally have dedicated supply chains and export according to their own needs. The biggest “Pol-ish” car maker is fso, although since 2007 it has been owned by Ukrainian firm cJsc ZaZ.

fso has struggled for years, and as of early 2011 its future was in doubt. Its contract with GM to produce the chevy aveo ended at the end of february and the company’s management

Arriving at quality a remarkable transformation has taken place since the end of communism. When many international firms first in-vested in Poland, the industry’s main advantages were low labor and production costs. Quality remained the domain of Western-made products.

no longer. In part this change has come about through the import of foreign know-how and technologies. but the strong work ethic and technical capabilities of the local la-bor force have also had much to do with it, as fiat’s experi-ence in Poland illustrates.

fiat auto Poland produced over 522,600 units in 2010, according to industry intelligence firm samar, accounting for more than 65 percent of car production in the country. frustrated by labor disputes in fiat’s home market, ceo sergio Marchionne noted in Q4 2010 that his firm’s only facility in Poland, in tychy, produces more vehicles than all five of fiat’s factories in Italy – with a quarter of the man-power. v

45sectoR analYsIs: aUtoMotIveMade in Poland 2011

had been searching for a new production deal for months before that.

“We are not sure if fso still exists or not ... They are talk-ing to chinese manufactur-ers, who eventually could be interested in production, but still there’s not a final deci-sion. and probably the chi-nese, if they come to europe, will choose another market,” said Mr Drzewiecki. This lat-ter comment, he explained, is due to unfavorable car-market regulations which are frequently – “17 times in the last 10 years” – tinkered with by the government.

fso has also engaged in talks with Japanese car-maker nis-san, but as Made in Poland went to press nothing had come of this.

Meanwhile, local firms have seen significant success in oth-er areas of production, such as solaris (see box, p. 43) and autosan have enjoyed with public transportation contracts. The latter firm produces buses, rolling stock and military transport vehicles. Wielton, a maker of trailers and semi-

trailers, is another well-known brand.

Parts of a wholeexport of parts and accessories accounted for more than half of total auto exports in Q1-Q3 2010. comparing exports dur-ing that period to figures from 2004, significant growth was noted to markets such as Peru, Thailand, china and Iraq. There was even some export of parts and accessories to antarctica, though admittedly the volume and value were humble.

Meanwhile, the biggest export drops between 2004 and Q1-Q3 2010 involved the canadian and Malaysian markets.

Germany is Poland’s top export destination for parts and ac-cessories, and the structure of exports is expected to remain unchanged in the near term. However, according to Rafał orłowski, an analyst from industry website automotivesup-pliers.pl, changes to subsidy systems in markets like Germa-ny and Italy will affect exports.

like samar’s Wojciech Dziwiecki, Mr orłowski suggested

A guide to Polish business and industry Przewodnik po polskim biznesie i gospodarce

�e 2011 edition of bookof lists is now available!

• Find key information about the dominant players in the market

• Expand your portfolio of contacts

• See who’s on top of your sector

To order:Please contact us at +48 22 639 85 68 or [email protected]

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2011 could see a slight production and export increase com-pared with the previous year. as for export markets with growth potential, he isn’t counting on exotic locations like Thailand or china because of tough local competition.

“speaking theoretically, if we’re talking about markets which could see a comeback, then we’re talking about the Russian market,” said Mr orłowski. The Russian car market is being stimulated by subsidies and, although it tends to give prefer-ence to domestically produced fare, some Polish parts and accessories are used in local vehicle manufacturing.

subsidiaries of foreign companies also dominate in the auto-parts sector, albeit less completely than in vehicle manufac-turing. big names include tRW Polska, faurecia Poland,

valeo and Wix-filtron, all of which number among Poland’s top exporters.

top among homegrown firms is Inter cars, a Warsaw stock exchange-listed firm, which was Poland’s 59th biggest export-er in 2009 and describes itself as the largest cee distribu-tor of parts for cars, delivery vehicles and big trucks. Its sales revenues in 2010 amounted to zł.2.132 billion (roughly E538 million), a figure up 14.5 percent year-on-year.

There are also scores of smaller, exceedingly vital firms spread throughout Poland. These may not enjoy the cachet of large multinationals, but their products are generally reliable and col-lectively responsible for Poland’s quietly growing reputation for quality manufacturing and auto exports. E�Blake�Berry

47sectoR analYsIs: cosMetIcsMade in Poland 2011

Poland’s cosmetics industry is one of the country’s true suc-cess stories. from its beginnings until today, the story of the industry has been marked with examples of innovation and a commitment to quality. The industry has deep roots in Poland, and its history extends back to pre-war years, with familiar names such as ewa (which evolved into Pollena eva) and Miraculum (later Kolastyna) established in the 1920s.

During the communist era, Poland was the largest producer of cosmetics in the eastern bloc, with state-run collective Pollena producing much of the cosmetics consumed in the former soviet Union.

In the 1980s and 1990s, a new wave of cosmetics produc-ers rose to prominence in Poland – including those compa-

nies now driving the domestic industry’s expansion, both at home and outside the country. These include companies specializing in skincare – a segment in which the Polish cos-metics industry is particularly strong – such as Dax cosmet-ics, oceanic, Ziaja, Dr Irena eris and soraya, as well as com-panies specializing in makeup and nail polish, such as Inglot and bell.

Surviving the transformationThe industry experienced a brief decline during the period of transformation in the early 1990s, with the markets of the former soviet Union as well as central and eastern european countries embracing new, Western players, while old trade agreements were dismantled.

sIttINg PrEttysIttINg PrEtty

A focus on value for money helps Polish cosmetics exporters compete in a tough market

48 sectoR analYsIs: cosMetIcs Made in Poland 2011

“There was a period of decline after the transformation pe-riod 20 years ago, when international brands which hadn’t been on the market before appeared ... but this only lasted a couple of years, and then people returned to Polish prod-ucts,” said Jolanta Górska, PR and advertising manager of oceanic, a major Polish skincare company.

since the transformation, Polish companies have had to com-pete with Western companies not only in their home market, but in export markets too.

“In Poland now, you have major international companies with fantastic factories producing cosmetics in Poland to supply most of europe – but you also still have a very strong Polish private sector,” explained Wojciech Inglot, president and owner of Inglot.

there are now around 470 companies producing cosmet-ics in Poland today – from very small firms to large do-mestic players, such as oceanic, Inglot and Dax, to major multinationals. Poland is now a cosmetics giant in the cee region.

Quality and innovationexports have become an increasingly important focus for the major Polish cosmetics producers. In the first three quarters of 2010, the value of Polish cosmetics exports reached E1.15 billion, having reached E1.34 billion in 2009 as a whole, ac-cording to daily Rzeczpospolitia.

While this figure includes multinationals, Polish-owned cos-metics companies have also achieved great success in numer-ous markets around the world. What is it that marks Polish cosmetics products out and helps them achieve international success?

Polish producers have prospered in international markets thanks to their focus on quality, value for money and inno-vation. Dr Irena eris, a leading firm in the Polish cosmet-ics industry, has won a host of awards, including the Prix d’excellence of french monthly Marie Claire, and the Gold Glamour award of british monthly Glamour – a testament to the internationally recognized high quality of its products. The company has committed itself to making large invest-

reklama Made In Poland_A4.indd 2 21-02-11 12:48:31reklama Made In Poland_A4.indd 2

reklama Made In Poland_A4.indd 2 21-02-11 12:48:31reklama Made In Poland_A4.indd 2

50 sectoR analYsIs: cosMetIcs Made in Poland 2011

ments in research and development, establishing its own centre for science and Research in 2001.

oceanic, meanwhile, has made good progress in penetrat-ing some difficult markets, including south Korea, thanks to its products’ high quality and stringent adherence to quality tests.

Innovative expansionMakeup specialist Inglot has distinguished itself with a broad product range and a wide international network of mono-brand outlets, taking a different approach to international

expansion from that of most Polish cosmetics producers.

“We were trying to be different from the crowd … so we tried a different concept – to have our own stores. and right now, everyone wants to have them,” explained Wojciech In-glot.

His company has established a net-work of own stores in Poland, aus-tralia and the United states, as well as single outlets in the United Kingdom, Ukraine and lithuania. It has also grown a franchise network alongside these, and is now poised for major ex-pansion in Western europe.

“We were cautious about going from Warsaw directly to vienna and berlin – instead, we decided to go to vienna, berlin, and the rest of Western europe once we had established ourselves in new York, Dubai and sydney – once we had done this, all of a sudden, just from Western europe, we have about 50 serious applications for franchises – and this year is going to be the year of Western europe – including Italy, spain, Germany and Holland,” Mr In-glot enthused.

In this way, Inglot has established it-self as a global player – one with its roots firmly in Poland.

Competing on pricePolish cosmetics producers have been able to compete with major Western players in cee markets, as well as further east, because they have shown their products to be of a good qual-ity – which adherence to the euro-pean Union’s certification standards has helped to verify objectively. but crucially, they have also been able to compete in terms of price.

“our dermo-cosmetics are sold in pharmacies, and they are much cheaper than other product lines sold

in pharmacies – that is definitely our strength in export mar-kets,” said oceanic’s Jolanta Górska.

Dax cosmetics, which also specializes in skincare products – and in 2009 enjoyed the strongest growth of any cosmetics producer in Poland in terms of sales value and volume in the facial-care segment (32 percent and 26 percent y/y, respec-tively) – has succeeded both domestically and internation-ally. It has managed this by diversifying its portfolio in terms of high-end, prestige product lines, such as Yoskine, while at the same time pursuing more mass-appeal product lines,

51sectoR analYsIs: cosMetIcsMade in Poland 2011

such as Perfecta and celia, the latter of which was acquired by Dax in 2007.

“of all our product ranges, the one which enjoys the most popularity outside Poland is the ‘mass-market’ brand Perfec-ta, which offers a wide selection of body and face care prod-ucts, while the ‘budget’ cosmetics brand, celia, is becoming increasingly popular,” said Jagna Dyżakowska, PR manager at Dax cosmetics.

A real alternativeIt remains a considerable challenge for Polish companies to establish a strong brand awareness in Western european markets, where the major international players are so firmly established.

“Polish cosmetics are in no way inferior in terms of quality to those of Western producers, and the main Polish play-ers are also able to compete with the Western companies in terms of attractive packaging and labeling,” explained Ms Dyżakowska.

“Polish products are better from the point of view of the rela-tion between price and quality,” she added.

“for Polish producers, the most difficult part of competing with big multinationals is the marketing and advertising, be-cause we don’t have the large budgets that those companies have.”

as consumers around the world become increasingly price-conscious, however, it may become less of a challenge to present Polish cosmetics as a real alternative.

Brendan�Melck

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52 sectoR analYsIs: YacHts Made in Poland 2011

Poland’s yachting industry, concentrated in the northern Ma-zurian lake district, is experiencing phenomenal growth. In-deed, according to industry players, Poland is set to become a european yacht-building hub, whose products are marked by high quality and low prices.

The Polish yacht-production sector has grown more than fivefold over the last five years. In 2010, the combined value of sales reached almost $500 million, giving Poland about

five percent of a global market that is currently valued at around $11.5 billion.

Polish boatyards are also beginning to invest in the pro-duction of much larger vessels. Maciej chylak, president of trade fair organizer Doramm, said that Polish yards initially tended to function as subcontractors for West-ern shipyards, which sold Polish yachts under their own brands.

sELLINg sAILsPoland’s luxury yacht makers have thrived on exports despite the global slowdown

sELLINg sAILs

53sectoR analYsIs: YacHtsMade in Poland 2011

“We later consolidated and, with success, began to sell to markets in the West,” he said.

The biggest hits for export sales are six- to eight-meter yachts, which are about 20 percent cheaper to build than their West-ern counterparts. They are mainly sold to Germany, the UK, france and norway. Marek słodownik of the Polish cham-ber of Marine Industry and Water sports, says that among Poland’s industrial products, yachts were the sixth-largest export in 2010, with more than 95 percent of the sailing and motor yachts made in Poland sold abroad.

Trade windsMaciej stompór, sales director at sunreef Yachts, Poland’s largest designer and maker of catamarans, says Poland’s cheap labor costs, location, skills and flexibility are the key reasons Poland is seeing booming production. Polish design-ers are also a key factor, Mr stompór said, adding, “They are modern, functional, ergonomic.”

“We are very sensitive to the global market,” he says, “with labor costs about 20 percent lower than in france.”

Mr stompór and others argue that Poland is not only an attractive place due to its lower costs, but also due to the presence of the skills that are required to produce world-class yachts. Polish vessels are associated with high-quality laminates, precise outfitting and modern construction.

Their high quality stems from the fact that many elements are handcrafted.

The biggest Polish boatyards – Delphia Yachts, balt Yacht, Galeon, ostróda Yacht and Ślepsk – export almost all of their production. other well-known boatyards include skipper Yachts, tes Yacht, Mirage and sasanka.

overall about 95 percent of all luxury yachts made in Poland are sold abroad and about 90 percent of theese are sold to clients in the european Union and the Us. Italy, the world’s largest luxury yacht-maker, exports 65 percent of its total production.

In Poland, the industry consists of not only large, medium and smaller yards, but also a vast network of subcontractors and suppliers. These include producers of masts, rope, fab-rics, glass, resins, sails, cables, fittings and wooden finishing elements. Parts and equipment from suppliers, depending on the unit, make up around 80 percent of the total sale value.

Choppy waterson the downside, the stronger złoty threatens sales in an export-dependent industry. another problem is the state of Polish roads, which make it difficult to transport large yachts.

nevertheless, foreign companies see many advantages in building in Poland. In January 2011, Danish x-Yachts, for ex-

54 sector analysis: yachts Made in Poland 2011

ample, said it will manufacture laminate yacht components in Poland at X-yachts’ facility in Gołdap with the use of mod-ern technical and organizational solutions from Denmark.

Polish companies are also confident about making invest-ments. Poland’s Galeon, a leading builder of luxury yachts, describes its prospects as good.

“[last year] was an excellent year for Galeon,” company spokesperson aleksandra Brzozowska said. “We introduced five new Galeon models [the 340 Fly, 350 htc, 385 hts, 385 open and 700 skydeck] as well as 11 new Gaul motorboats.”

The company also says it has expanded its dealer network. “clients in countries like switzerland, turkey, china, south Korea, australia and the Us are now able to purchase a Ga-leon yacht.”

Regaining confidenceothers also have reasons for confidence. “We are broaden-ing our product range to include motorboats,” says Kamil Jankowski, manager of engineering at Kama yachts.

“it seems,” Mr Jankowski said, “that the yacht market is re-gaining momentum after the crisis, which resulted in the de-

velopment of numerous new models of yachts and the broad implementation of sophisticated solutions.”

in Gdańsk, sunreef yachts designs and builds luxury custom-made catamarans of 19 to 50 meters. its biggest superyacht, the sunreef 114, recently received a nomination for the World superyacht awards 2011 in the category of best sail-ing yacht from 30 to 45 meters.

“This is a huge success for the Polish marine business and Polish luxury industry in general,” said Mr stompór. “our design studio ... draws people from all over the world, and added to the local technology and know-how means we can compete on all fronts.”

Mr stompór said the company’s turnover was about E40 mil-lion, with margins falling to around 25-30 percent during the global economic crisis.

The crisis created some competition from the secondary market, as buyers turned to pre-owned boats, he said. “We had to lower prices to meet tighter demand, but the 98 per-cent of our production that we export – 54 boats built to date – has survived the storm, with very strong demand in the Far east in particular.”

55sectoR analYsIs: YacHtsMade in Poland 2011

The company is also somewhat subject to the vagaries of the euro, given that it has many parts to import mainly for larger vessels’ engines, masts and rigging.

“[some] 35-40 percent of parts are imported,” Mr stompór said, “mainly from france, the netherlands and the Us, with exports now moving more towards the Middle east, austra-lia and east asia. sunreef Yachts is already a global leader in luxury catamarans, both power and sail, as well as multihull superyachts.”

sunreef Yachts charter now has over 1,700 yachts in its fleet. Its 2009 net sales rose to E2.3 million, 30 percent compared with 2008, with a 50 percent increase seen in provisional fig-ures for 2010.

Increasing capacity“Despite a challenging labor market in Poland, this accelerat-ing production rate was achieved by optimizing production techniques,” said stompór.

sunreef is also increasing its overall production capacity with the acquisition of 16 hectares of land in nearby Gdańsk Wiślinka for the construction of a new 24,000 sqm purpose-built manufacturing facility. This facility will enable sunreef

to build yachts up to 50 meters in length.

“our goal for the future is quite simply to maintain our posi-tion as the world’s largest manufacturer of large and luxury catamarans from 60 to 200 feet,” said Mr stompór.

ostróda Yacht – a subsidiary of beneteau Group – builds around 4,000 power boats per year. Its best-ever annual turn-over totaled E50 million.

“[some] 99 percent of our production is exported to dif-ferent european countries, the main markets being france, Italy, norway, sweden and spain,” said Piotr Jasionowski, president of the management board.

Crunch timeMr Jasionowski says he believes that the next three years will determine the future of the Polish boat-building industry.

“If the market stabilizes, then Polish manufacturers should restart development probably even with more speed than be-fore the crisis. If the market continues reduction of capacity, only the strongest companies will survive,” he said.

Jo�Harper

56 sectoR analYsIs: PHaRMaceUtIcals Made in Poland 2011

Poland has the largest pharmaceuticals market in central and eastern europe, making it an attractive destination for fDI and giving Polish companies the resources to invest in top-of-the-line medicines. This has, in turn, made Polish-made products attractive in international markets. Moreover, the country’s location, between Western europe and a number of emerging economies, gives its exporters access to some large and growing markets.

Germany is Poland’s main pharmaceuticals export market, while the value of Polish pharmaceutical exports to Russia and france have grown markedly.

There is a strong focus on reducing pharmaceutical reim-bursement costs in Germany, which has put Polish producers in a good position to sell to their Western neighbor. Indeed, the cost-cutting trend is being seen across europe, and the

Polish pharmaceutical exports are strong, but the industry still has some bitter pills left to swallow

PrEscrIPTION fOr grOWTh

PrEscrIPTION fOr grOWTh


predominance of generics producers in Poland means that domestic pharmaceutical producers are cost-competitive.

Polish giantsPolpharma, which claims the title of largest manu-facturer of drugs and active pharmaceutical ingredients in Poland, offers a good ex-ample. about 24 percent of the firm’s total turnover comes from international operations. around 60 percent of export involves the sale of drugs, with the remainder from the sale of other pharmaceutical sub-stances.

“Polpharma conducts re-search work in its own re-search and development center in starogard Gdański – one of the largest in central and eastern europe ... Polpharma builds partnerships and collaboration with academic centers, and with service pro-viders [which have] innovative technologies and develop-ment laboratories,” said Magdalena Rzeszotalska, a company spokesperson.

Polpharma’s products are present in approximately 50 coun-tries worldwide, Ms Rzeszotalska stated, adding that the emerging markets of central and eastern europe are most important for it.

“The company has its own representative offices in Ukraine,

lithuania, belarus, Kazakhstan, azerbaijan, and Uzbekistan. The largest volume of Polpharma’s drugs is exported to the Russian market, whereas active pharmaceutical ingredients are mainly sold to north america and the european Union

countries,” she said.

In order to strengthen its position in the Polish market and to develop its exports, the company is implementing a number of research and develop-ment projects, she added.

among other Polish phar-maceutical companies with significant exports are Polfa Warszawa, which sells around 20 percent of its production abroad, mainly to Russia and oth-er former soviet states as well as to asia and south

africa, and Jelfa (owned by the lithuanian sanitas Group), which sells its products across cee, including the baltics, Ukraine, Russia and bulgaria.

Emerging prospectsMany industry experts stress the potential of emerging mar-kets for major pharmaceuticals exporters.

“International pharmaceutical companies in the coming years should concentrate their forces on strengthening their position in emerging markets, which have the greatest po-tential for growth. This requires them, however, to know

Total value of pharmaceuticals exports (in EUR millions), 2006-20102006r 5522007r 7402008r 10912009r 1165Source: Central Statistical Office

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59sectoR analYsIs: PHaRMaceUtIcalsMade in Poland 2011

the specificity of these markets, which are homogeneous,” Maciej Kuźmierkiewicz, of pharmaceutical market research company IMs Health, said in a report.

lest one forgets, Poland is itself still an emerging market and many major international pharmaceutical players are attract-ed by its well-qualified but low-cost workforce.

Recently, GlaxosmithKline said that it would transfer the production of its benign prostatic hyperplasia treatment, avodart (dutasteride), from france to Poland, in an effort to optimize manufacturing costs. The drug generated sales of $643 million in 2010 and is expected to provide a boost to Polish exports once production launches in Poland.

A strong baseamong emerging european markets, Poland has the third-largest pharmaceuticals market, according to IMs. only Rus-sia and turkey are ahead of it.

Drug expenditure represents 2.3 percent of GDP, IMs says, which is above both the global and regional averages. Poland accounts for four percent of the total value of the european pharmaceuticals market.

“Given the size, growth potential, structure and current trends, especially privatization plans, the Polish pharma-ceuticals market is definitely one of the most interesting to watch,” stated Dominika Grzywińska, an analyst for cee & cIs at market research firm frost & sullivan.

“The Polish pharmaceuticals market is the largest in eastern

europe, with sales generating over one quarter of the region’s turnover.”

However, it is not only the size and growth perspectives that make the market so attractive, Ms Grzywińska said.

“There are a number of ongoing mergers and privatization processes in consultation, which are strongly influencing the market’s shape.”

Its value grew by around eight percent y/y, reaching about zł.27 billion in 2010 – this included foreign sales, she said.

January 2011 also saw record revenues for drug wholesalers, with sales at pharmacies in Poland exceeding zł.2.1 billion, ac-cording to industry data and analysis company Pharmaexpert.

Barriers to entryall of these factors have enticed major international phar-maceutical players to explore – and often invest – in Poland. once they have launched production in the country and be-gin selling abroad, they contribute to Poland’s pharmaceuti-cal export revenues. Indeed, there are some notable success stories.

GlaxosmithKline Pharmaceuticals, for one, finished 10th in magazine Polityka’s list of Poland’s most successful exporters in 2009. total export revenues from its Polish branch in 2009 reached zł.2.66 billion.

but despite the healthy figures, Poland’s pharmaceuticals market is no utopia for foreign investors.


Research firm business Monitor International said it consid-ers Poland’s pharmaceutical market overall to be an attrac-tive setting for multinational pharmaceutical companies. In its “business environment Ratings for Q210” report, Poland placed seventh out of the 20 cee markets and 31st globally.

“The regulatory system remains the major drawback to com-panies operating in Poland,” the report reads. “While intel-lectual property legislation has improved since eU accession in 2004, it still attracts criticism from the international drug community.”

Health-care reformIn october 2010, Poland’s Ministry of Health submitted its latest draft act on the reimbursement of medicines, which is one of the most significant components of Poland’s ongoing health-care reform.

The draft legislation includes a fixed wholesale mark-up of five percent on prescription drugs which are reimbursed. The draft bill states that 17 percent of the total annual budget of the Polish national Health fund (nfZ) is to be spent on the reimbursement of medicines.

The latest update to Poland’s reimbursement list was released

in December 2009, with the Ministry of Health claiming it will save zł.45 million. Updates to the letter include the re-moval of 92 drugs, considered to be either outdated or to have questionable efficacy. on a positive note, 258 drugs were added to the list, including new treatments for condi-tions including asthma, cystic fibrosis, phenylketonuria and attention-deficit hyperactivity disorder.

Potentially this means a new batch of Polish-produced drugs will be available for export, allowing Polish companies to meet demand more widely.

The picture of healthDespite some uncertainty as to the possible impact of pro-posed legislative changes to the pricing of Polish products, sold mainly on the domestic over-the-counter market, and of ongoing regulatory issues in Poland, Polish pharmaceuticals exporters can look ahead with some confidence to growth in R&D, and to the development of new drugs.

Moreover, on the back of a recovery in the German economy – the market’s largest recipient – growth in exports over the next two years or more can be expected.

Jo�Harper

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62 50 laRGest exPoRteRs Made in Poland 2011

50 LArGeSt exPorterS (2009)

Rank Company Address E-mail/website Sector

Revenues from export in 2009 (in zł. millions)

1 PKN Orlenul. Chemików 7, 09-411 Płocktel: (+48) 24 365 00 00 fax: (+48) 24 365 40 40

[email protected]

Raw materials and fuel 18,201

2 Fiat Auto Polandul. M. Grażyńskiego 141, 43-300 Bielsko-Białatel: (+48) 33 813 21 00

[email protected]

Automotive 14,852

3 KGHM Polska Miedźul. M. Skłodowskiej-Curie 48, 59-301 Lubintel: (+48) 76 747 82 00 fax: (+48) 76 747 85 00

[email protected]


4 Volkswagen Poznań Automotive

ul. Warszawska 349, 61-060 Poznańtel: (+48) 61 876 17 81 fax: (+48) 61 876 14 73

www.volkswagen-poznan.pl Automotive 7,562

5 LG Electronics Mława

ul. LG Electronics 7, 06-500 Mławatel: (+48) 23 654 74 04 fax: (+48) 23 654 3259

pl.lge.com Electrical and electronic goods 5,184

6 LG Electronics Wrocław

ul. LG Electronics 1-2, 55-040 Biskupice Podgórnetel: (+48) 71 792 94 00 fax: 48 71 792 94 05

pl.lge.com Electrical and electronic goods 4,493

7 Philips Lighting Poland

ul. Kossaka 150, 64-920 Piłatel: (+48) 67 35 13 000 www.lighting.philips.pl Electrical and

electronic goods 3,690

8 Faurecia w Polsceul. Spółdzielcza 4, 05-600 Grójectel: (+48) 48 665 01 13 fax: (+48) 48 665 03 03

www.faurecia.pl Automotive 2,871

9BSH Sprzęt Gospodarstwa Domowego

Al. Jerozolimskie 183, 02-222 Warsawtel: (+48) 22 572 76 00 fax: +48 (22) 572 66 00

www.bsh-group.pl Electrical and electronic goods 2,871

10 GK GlaxoSmithKline Pharmaceuticals

ul. Rzymowskiego 53, 02-697 Warsawtel: (+48 ) 22 576 90 00 fax: (+48) 22 576 90 01

www.gsk.com.pl Pharmaceuticals and cosmetics 2,665

11Toyota Motor Manufacturing Poland

ul. Uczniowska 26, 58-306 Wałbrzychtel: (+48) 74 888 80 00 www.toyotapl.com/walbrzych Automotive 2,496

12 TRW Polskaul. Rolnicza 33, 42-200 Częstochowatel: (+48) 34 343 10 03 fax: (+48) 34 369 34 30

www.trw.pl Automotive 2,367

13 Węglokoksul. Mickiewicza 29, 40-085 Katowicetel: (+48) 32 258 24 31 fax: (+48) 32 251 54 53

[email protected]


6350 laRGest exPoRteRsMade in Poland 2011

50 LArGeSt exPorterS (2009)Ra

nk Company Address E-mail/website SectorRevenues from export in 2009 (in zł. millions)

14 Fiat GM Powertrain Polska

ul. Grazynskiego 141, Bielsko-Biała, 43-300, Polandtel: (+48) 33 8132 100 fax: (+48) 33 8132 451

www.fiat-gm-pwt.pl Automotive 1,981

15 GK Ciechul. Puławska 182, 02-670 Warsawtel: (+48) 22 639 10 00 fax (+48) 22 639 14 51

[email protected] Chemicals 1,951

16 Can-Packul. Jasnogórska 1, 31-358 Krakówtel: (+48)12 662 34 03 fax: (+48) 12 662-34-19

[email protected] Metals 1,938

17 Electrolux Polandul. Kolejowa 5/7, 01-217 Warsawtel: (+48) 22 568 98 67 fax: (+48) 22 434 73 03

www.electrolux.pl Electrical and electronic goods 1,833

18 Man Bus

Sady, ul. Poznańska 4, 62-080 Tarnowo Podgórnetel: (+48) 618 16 63 01 fax: (+48) 618 16 63 50

www.mantruckandbus.pl Automotive 1,717

19 Tele-Fonika Kableul. Wielicka 114, 30-663 Krakówtel: (+48) 12 652 50 00 fax: (+48) 12 652 51 56

www.tfkable.pl Electrical and electronic goods 1,679

20 Indesit Company Polska

ul. J. Dąbrowskiego 216, 93-231 Łódźtel: (+48) 42 645 51 00 fax: (+48) 42 645 51 91

[email protected]

Electrical and electronic goods 1,631

21 Ferrero Polskaul. Wiertnicza 126, 02-952 Warsawtel: (+48) 22 550 50 00 fax: (+48) 22 550 50 01

[email protected] Food 1,618

22 Polski Koksul. Gawronów 22, 40-527 Katowicetel: (+48) 32 357 09 00 fax: (+48) 32 357 09 08

www.polskikoks.pl Raw materials and fuel 1,544

23 Synthosul. Chemików 1, 32-600 Oświęcimtel: (+48) 33 844 18 21 fax (+48) 33 842 42 18


24 Gdańska Stocznia Remontowa

ul. Na Ostrowiu 1, 80-958 Gdansktel: (+48) 58 307 22 22

[email protected] Shipyards 1,507

25 Valeoul. Przemysłowa 3, 32-050 Skawinatel: (+48) 12 299 80 00 fax: (+48) 12 299 80 04

[email protected] Automotive 1,494

26System Gazociągów Tranzytowych EuRoPol Gaz

Al. Stanów Zjednoczonych 61, 04-028 Warsawtel: (+48) 22 517 40 00, fax: (+48) 22 517 40 40

[email protected]


64 50 laRGest exPoRteRs Made in Poland 2011

50 LArGeSt exPorterS (2009)

Rank Company Address E-mail/website Sector

Revenues from export in 2009 (in zł. millions)

27 International Paper Kwidzyn

ul. Lotnicza 1, 82-500 Kwidzyntel: (+48) 55 279 80 00 fax: (+48) 55 279 8451

www.internationalpaper.com Paper and wood 1,254

28 Anwilul. Toruńska 222, 87-805 Włocławektel: (+48) 54 236 30 91 fax: (+48) 54 236 19 83


29 Firma Oponiarska Dębica

ul. 1 Maja 1, 39-200 Dębicatel: (+48) 14 670 28 31 fax: (+48) 14 670 09 57

www.debica.com.pl Automotive 1,050

30 Kopexul. Grabowa 1, 40-172 Katowicetel: (+48) 32 604 70 00 fax: (+48) 32 604 71 00

[email protected]

Industrial machinery 1,030

31 Polimex-Mostostalul. Czackiego 15/17, 00-950 Warsawtel: (+48) 22 829 71 00 fax: (+48) 22 826 04 93

[email protected] Construction 1,025

32 Boryszewul. 15 Sierpnia 106, 96-500 Sochaczewtel: (+48) 46 863 02 01 fax: (+48) 46 863 00 96

www.boryszew.com.pl Automotive 1,024

33 ALSTOM PowerAl. Jana Pawła II 12, 00-124 Warsawtel: (+48) 22 850 96 09 fax: (+48) 22 654 55 90

www.alstom.pl Industrial machinery 969

34 Solaris Bus & Coach

ul. Obornicka 46, Bolechowo-Osiedle, 62-005 Owińskatel: (+48) 61 667 23 33 fax: (+48) 61 667 23 10

[email protected] Automotive 921

35 Mondi ul. Bydgoska 1, 86-100 Świecietel: (+48) 52 332 10 00

[email protected] Paper and wood 901

36 ABBul. Żegańska 1, 04-713 Warsawtel: (+48) 22 220 20 00 fax: (+48) 22 220 20 31

www.abb.pl Electrical and electronic goods 888

37 SGL Carbon Polskaul. Piastowska 29, 47-400 Racibórztel: (+48) 32 415 45 01 fax: (+48) 32 459 55 20

www.sglcarbon.com Raw materials and fuel 884

38 PGNiGul. Marcina Kasprzaka 25, 01-224 Warsawtel: (+48) 22 589 45 55 fax: (+48) 22 691 82 73

www.pgnig.pl Raw materials and fuel 858

6550 laRGest exPoRteRsMade in Poland 2011

50 LArGeSt exPorterS (2009)Ra

nk Company Address E-mail/website SectorRevenues from export in 2009 (in zł. millions)

39 Impexmetalul. Łucka 7/9, 00-842 Warsawtel: (+48) 22 658 60 00 fax: (+48) 22 620 05 44

[email protected] Metals 831

40 Zakłady Azotowe Puławy

Al. Tysiąclecia Państwa Polskiego 13, 24-110 Puławytel: (+48) 81 886 34 31 fax: (+48) 81 565 28 56

[email protected] Chemicals 815

41 Toyota Motor Industries Poland

ul. Japonska 6, Leg, 55-220 Jelcz-Laskowicetel: (+48) 71 302 00 00 fax: (+48) 71 302 00 01

www.toyota-industries.com Automotive 805

42 Hutchinson Polandul. Stolarska 23, 34-300 Żywiectel: (+48) 33 866 64 03 fax: (+48) 33 866 64 07

[email protected] Automotive 791

43 Sitechul. Strefowa 2, 59-101 Polkowicetel: (+48) 76 726 70 00 fax: (+48) 76 726 70 70

[email protected]/pl

Automotive 774

44 GKN Driveline Polska

ul. Południowa 18 56-400 Olesnicatel: (+48) 71 399 80 00 fax: (+48) 71 399 80 11

www.gkndriveline.com/drive-linecms/opencms/en Automotive 772

45 Stalproduktul. Wygoda 69, 32-700 Bochniatel: (+48) 14 615 10 00 fax: (+48) 14 615 11 18

[email protected] Metals 750

46Toruńskie Zakłady Materiałów Opatrunkowych

ul. Żółkiewskiego 20/26, 87-100 Toruńtel: (+48) 56 612 39 00 www.tzmo.pl Pharmaceuticals

and cosmetics 744

47 Volvo Polskaul. Puławska 558/560, 02-884 Warsawtel: (+48) 22 566 28 00 fax: (+48) 22 566 28 88

www.volvocars.com/pl Automotive 697

48 Mars PolskaKożuszki Parcel 42, 96-500 Sochaczewtel: (+48) 22 595 50 00 fax: (+48) 22 595 50 01

www.marskariera.pl Food 656

49 Zakłady Azotowe w Tarnowie-MoŹcicach

ul. E. Kwiatkowskiego 8, 33-101 Tarnówtel: (+48) 14 633 07 81 fax: (+48) 14 633 07 18

[email protected] Chemicals 634

50 CNH Polskaul. Otolińska 25, 09-407 Płocktel: (+48) 24 267 96 00 fax: (+48) 24 267 96 05

cnh-polska.polandtrade.plwww.cnh.com

Industrial machinery 632

Source: “100 Largest Exporters in 2009”. Reprinted with permission of Polityka

66 Made in Poland 2011bIlateral traDe: IntRoDUctIon

Trade is, among other things, a relationship based on trust. It’s important for each party in that relationship to realize

the importance of the partnership between importer and ex-porter, customer and supplier. Without exporters to provide goods and importers to buy them, the world economy would collapse.

With that in mind, we pro-vide you with a look at four of Poland’s most important trade relationships: with the United states, china, the european Union (and a focus on Germany) and Russia.

from a purely statistical standpoint, only those last two might seem significant. The eU (and Germany spe-cifically) is by far the largest export destination for Pol-ish goods. outside of the eU, Russia, which exports vital fossil fuels to Poland and in turn absorbs much Polish machinery and food, is easily the next most important trading partner.

What then of the Us and china? both represent tiny trade balances in comparison to the first two. but they are impor-tant nonetheless. firstly, there is the simple geopolitics – they are the superpowers of today and tomorrow. Poland’s relationships with them, politically and economically, will have important consequences.

There are other considerations as well. The Us, with its eco-nomic might and technological know-how, has the potential to become a much more significant trade partner in the fu-ture. as it looks to recover from the global economic crisis, exports are critical. and Poland, with its population rapidly

gaining spending power, offers a fantastic opportunity for Us exporters.

Moreover, as Poland turns to alternative sources of energy – such as nuclear power and shale gas – Us firms will be looking to share their technology and know-how. for Pol-ish exporters, the Us remains a relatively untapped market,

with a great deal of potential left to exploit. look for bi-lateral trade agreements be-tween these two countries to increase over the next few years.

for china, the view is lon-ger term. The country has become an export giant, and many Western countries find it hard to compete in china’s low-price environ-ment. nevertheless, china’s voracious economy needs all sorts of goods from abroad,

and some Polish companies are already making a go of it there.

Then there’s china’s need for raw materials. Poland can’t pro-vide all of these, but it can provide some, and firms such as copper producer KGHM have benefited from china’s rise. It’s also no secret that chinese firms have begun flexing their muscles abroad, and indeed have also come to Poland. and while Poland doesn’t offer the huge market that the Us, Japan or Germany do, its rapid development makes it a market that chinese exporters can’t ignore.

In the next few pages, you’ll find analyses of Poland’s bilat-eral trade relationships with these partners, as well as the perspective from the partners themselves, written by the dip-lomats and economic experts that help maintain those very important relationships on a day-to-day basis. v

bILATEraL TraDE

67Made in Poland 2011 bIlateral traDe: tHe UnIteD states

This is a dynamic period for trade and investment between the United states and Poland: the world’s largest economy,

and europe’s fastest growing. Us investors are attracted to Poland’s continuing growth, Poland’s strong and growing domestic market, and its culture of entrepreneurship and trade in which american businesses feel at home. The range of projects attracting american interest here is impressive – software development in Wrocław, the aviation valley near Rzeszów, biotechnology research throughout the country, and a cutting-edge partnership between the new York and Warsaw stock exchanges. Us investment in Poland has been especially strong since 2008, reflecting Poland’s unique posi-tion in the eU as a country that has grown consistently and prudently.

The United states and europe are overwhelmingly one an-other’s most important commercial markets, despite the attention given to the emerging economies of the bRIc countries. and, for a large and growing number of american investors, Poland has become an attractive destination within europe. america’s collective asset base in Poland, Hungary and the czech Republic, for example, is roughly $85 billion – twice the size of corporate america’s assets in India. Poland’s share is the largest of these three countries, totaling $30.5 bil-lion according to Johns Hopkins University’s 2011 survey of jobs, trade, and investment. The output of Us affiliates in Po-land, $8.3 billion – is larger than the output of Us affiliates in austria, Denmark, or turkey. some 360,000 Poles in Poland are employed directly or indirectly by american businesses, according to the american chamber of commerce. That number is poised to grow with new investments in renewable and clean energy, in financial and legal services, information technology, business services, real estate, and defense.

trade between the Us and Poland may be bigger than many realize. I would like it to grow further still. for the world’s largest economy and europe’s fastest growing, there is ample room for expansion, which is why growing trade between

Poland and the United states is one of the embassy’s top pri-orities.

energy is a good example of the huge potential for growth in trade and investment. Us oil and gas companies are lead-ing the exploration and development of Poland’s shale gas resources. The results of their efforts should start to become clear later this year, but scientists, businesspeople and strate-gists are optimistic that shale gas might transform Poland’s energy market and create a completely new, very valuable Polish export. on renewable energy, several Us investors are helping to drive remarkable growth in Poland’s wind-power generation capacity. The United states and Poland are expanding their cooperation so that Poland’s future nuclear power industry will have the best technology, a new cadre of highly qualified engineers and technicians, and a regulatory system that ensures the safety of Poland’s people and envi-ronment and a secure, zero-carbon supply of electricity.

In the medical field, Poland has become the largest clinical trials market in central and eastern europe and shows po-tential for even more growth. clinical trials contribute zł.860 million to the Polish economy annually while providing more access to advanced therapies for Polish patients. They also help to improve the standard of medical care and create professional development opportunities for Polish medical professionals. Us investment in the health sector creates a win-win outcome for Us business and the health and wealth of Polish society.

american firms are also doing well by doing good. The american chamber of commerce recognized fluor sa with its 2010 corporate social Responsibility award for fluor’s support for universities and students, as well as its donations to children’s homes and educational institutions. I was also pleased in 2010 to nominate UPs Polska for the secretary of state’s award for corporate excellence, thanks in part to its program bringing together rural schools across the Polish and Ukrainian borders.

My embassy is at work deepening business ties, especially with young people. one program I am especially proud of is the Polish american freedom foundation’s internships to recognize and promote young entrepreneurs. This program will bring approximately 40 Polish university students to the United states this summer for internships with Us compa-nies doing business in Poland. There they learn Us business practices and corporate culture, preparing them for success after graduation from university. Us companies have sup-ported the program enthusiastically, and we expect the num-ber of interns to grow significantly next year.

We are also blessed with a dynamic Us business community in Warsaw, represented in a population of tens of thousands of americans in Poland. The community’s leadership is first rate. The american chamber of commerce has just elected

room to grow

Lee�A.�Feinstein�United�States��Ambassador�to�the�Republic�of�Poland

68 Made in Poland 2011bilateral trade: the united states

Poland’s trade structure is heavily oriented towards fellow eu-ropean union member states, which account for 78 percent of its exports. Poland’s top export markets include Germany, France and the uK. exports to non-eu countries, many of them emerging and developing markets, stand at approximate-ly 20 percent, according to statistics office data for 2010.

What may surprise many is that the us receives just one per-cent of Polish exports. The us’s share of imports to Poland is also relatively small, at just 2.6 percent. Germany, by contrast, accounted for 21.7 percent of all imports into Poland in 2010.

in spite of these figures, Polish exports to the us have been growing steadily over the last decade. in 2000, Poland’s ex-ports to the us were worth just under $1 billion, while us imports to Poland were worth approximately $2.1 billion, ac-cording to data from the us Census bureau. us-Polish trade hit its highest point in 2008, just as the global economy was slipping into crisis. Polish exports reached $2.5 billion, while us imports to Poland peaked at $4.1 billion. defense prod-ucts comprised about a quarter of total imports.

by the end of 2010, us-Polish trade stood at just above $2.9 billion. in fact, during the first 11 months of 2010, Poland posted a $12.8 million trade surplus with the us, though a large part of the slump in us exports was due to the country’s sharp economic downturn.

Leading sectorsWhen it comes to the breakdown of us-Polish trade, Po-land’s main exports to the us include industrial machinery – such as jet engine parts – steel and copper products, chemical products, medical control equipment, food and beverages, furniture, fuels, glassware and ceramics.

although these products are competitive, the Polish govern-ment, along with organizations such as the us-Polish trade Council (usPtC), as well as private sector companies, hope to diversify Poland’s economy so that it can provide higher value-added products and offer strategic knowledge in sec-tors including biotech, energy (shale gas and nuclear), it/high-tech, defense and aviation.

according to adam normark, first secretary at the embassy of Poland’s trade and investment section in Washington dC, his office has sponsored over 16 trade missions targeting these very sectors throughout the us.

The main goal of these trade promotion events is to attract R&d partners, customers and investors as well as to cultivate Polish innovation and stronger business relationships, espe-cially at the minister-governor level.

lands of opportunity

The US-Poland trade relationship has a long way to go before it reaches its full potential

a new chairman, Joseph Wancer, whose achievements in the banking and financial sector are legendary. i was also pleased to be present for the launching of the new us-Poland busi-ness Council in Warsaw last October. This new group brings together us businesses committed to the Polish market to advocate, in the united states and in Poland, for policies de-signed to link our two countries closer together.

The coming years are promising. us firms have begun invest-ing in Polish intellectual capital through massive in-house training programs. some have established R&d centers here, while others partner with Polish universities and technical schools to build more competitive curricula. new invest-

ments in information technology and advanced manufactur-ing are creating stronger demand for more highly-educated Polish graduates. The results are increased exports of high-technology, Polish-built aviation systems, sophisticated busi-ness services, and software solutions to markets all around the world.

President Obama has made increasing global trade a top prior-ity. The president’s visit to Poland in May will provide an op-portunity to showcase opportunities for trade and investment between our countries. boosting trade is not only good for business; trade is an increasingly strong and important pillar of the enduring ties between Poland and the united states. v

69Made in Poland 2011 bIlateral traDe: tHe UnIteD states

according to The Economist, Poland’s economy is about the size of the state of virginia’s. Unlike china or India, Poland is too small to become a major trading partner for the Us. nevertheless, by targeting specific states and niche sectors, Polish firms can achieve direct and tangible results.

on the flip side, the main Us exports to Poland include in-dustrial machinery, pharmaceutical products, controlling and measuring equipment, road vehicles, non-ferrous and steel products and military aircraft.

according to Mr normark, most major american compa-nies already have a presence in Poland and they now want to educate and attract more Us small and medium-sized en-terprises (sMes) to expand operations and increase exports to Poland. In fact, the Polish embassy hopes to take advan-tage of Poland’s upcoming eU presidency by promoting the country as an attractive business location throughout the Us.

Challenges and opportunitiesfrom the perspective of Us exporters, while their share of Poland’s import market remains small, they have found con-siderable success in targeting competitive niches. sectors which continue to offer strong sales opportunities include power generation, environmental technologies and defense.

for Polish firms trying to enter the Us market, money con-tinues to be a major hurdle, particularly as millions of dol-lars are needed to build brand equity via aggressive sales and marketing campaigns. to put it simply, many Polish firms do not have that kind of money. scale is also an issue, as many Polish firms do not have the capacity to meet demand from large-scale national buyers.

That is why Dr Piotr Moncarz, chairman of the silicon valley-

based Us-Polish trade council, believes Polish firms should aim to build strategic partnerships, foster integration and co-operate with Us companies via shared products and services, particularly in the high-tech and pharmaceutical sectors.

The success of these initiatives, however, will depend large-ly on decisions made by both countries’ governments to strengthen economic relations. one strategic initiative in particular, energy security, creates the potential for greater Us-Polish cooperation, said Dr Grzegorz Kozłowski, of the embassy of Poland in Washington Dc.

There is a tremendous amount of interest on the part of american firms and the Us government to increase coopera-tion, exchange technical knowledge and develop economic opportunities within the oil and gas, nuclear, clean and re-newable energy sectors in Poland, Mr Kozlowski said.

The futureThe Us-Polish trade relationship has not reached is full po-tential, but there are encouraging signs of improvement.

Despite its solid fundamentals innovation will ultimately be the key to Poland’s long-term trading success, but an in-novative economy also needs an innovative government, says francis skrobiszewski, director of the Us-Polish trade council.

Us President obama’s national export initiative aims to dou-ble american exports in five years. by targeting Poland as a strategic mid-sized trade partner, the Us can solidify politi-cal, economic and international security relations for years to come. Polish firms, though, have to do their part to capitalize on the opportunities the Us offers.

Ewa�Błaszczyńska�

70 Made in Poland 2011bIlateral traDe: cHIna

Polish-chinese economic relations are developing very well and offer promising prospects. In 2010, the volume of mu-tual trade was $11 billion. chinese imports from Poland in-creased by 13 percent and chinese exports to Poland grew by 26 percent. There is a big gap, but we are trying to narrow it. now the most important task ahead is to make mutual trade more balanced in favor of the Polish side.

I consider this an urgent goal, so the embassy has organized Polish business trips to china to show the potential of chi-na’s huge market. china is already buying copper products from Poland, and it might buy more agricultural products. but Polish exports to china should also include more sophis-ticated products. for example, Poland produces very good helicopters, and these could be sold to china.

We want to expand chinese investment in Poland, which in 2010 reached over $200 million. The Polish government has privatization plans, and we are interested in those projects and our businesspeople do research in some of the areas.

chinese companies are also interested in direct cooperation in building Polish expressways, railways, power stations and in ven-tures dealing with development of renewable energy.

Case studycovec (china overseas engineering Group co) is building a section of the a2 highway in Poland. The company has com-pleted a lot of big projects in developing countries, but this is the first time it is completing such a project in europe. The consortium that won the contract is a highly experienced one, with some other chinese companies included in the group, and the contract concerns the construction of a relatively small – about 50-kilometer long – section of expressway.

covec itself is overcoming some difficulties in conducting its work in Poland. It took some time to learn how to cooperate, due to certain disparities in style of management, language problems and cultural differences between chinese and Pol-ish workers.

Yet covec is now covering its earlier losses and cooperation is developing very well. so I think that this direct involvement of a chinese company in developing Poland’s infrastructure will be successful and could open the way to similar such ven-tures in future.

Trade imbalanceschina holds a trade surplus with many trading partners around the world, including Poland. We are concerned about the situation, but nowadays lots of chinese manufacturing plants are joint ventures with foreign firms and their exports increase these statistics.

Yet we see our lack of trade balance with other countries as a problem, and during the two or three years of the financial crisis we sent many trade delegations to the Us and europe to make arrangements to buy more and sell less. so the fig-ures of the last few years show that while our exports have increased by 31.3 percent, imports to china have increased by 38.7 percent.

The new trend is clear. We now have a fully open market economy, so there are good conditions to invest in our coun-try and to export more products to china.

Political and cultural relationschina and Poland have close political relations and in 2004 during the visit of the chinese president to Poland, an agreement on friendly and cooperative partnership was signed. cultural ties are also strong: many chinese troupes perform in Poland and during the 200th anniver-sary of chopin’s birth there were many Polish cultural events in china.

We have opened four confucius Institutes in Polish universi-ties where the chinese language and culture are taught. In china, two universities have Polish language departments. one of them is in my own home town of Harbin.

However, there is a very small amount of tourism between our countries. While 60 million chinese visit other countries around the world every year, only 20,000 come to Poland. one of my goals is to increase the level of our mutual tour-ism. We are encouraging Polish and chinese travel offices to cooperate, and I believe that our mutual tourism will grow in the next few years.

China in the global economychina’s economy is developing very quickly: in 2010 GDP growth reached 10 percent; in 2009 it was 9.7 percent.

Due to the current, fast rate of its economic growth, china is making a valid contribution to the global economy. espe-

Promising prospects

Sun�Yuxi�Chinese�Ambassador�to�the�Republic�of�Poland

71Made in Poland 2011 bIlateral traDe: cHIna

cially when there are international financial crises, our high economic performance is helping to generate some growth in various areas of the global economy.

It is time for us to think about how to speed up the process of integrating the chinese economy into the world econ-

omy, and we are ready to participate in all efforts to help the global economy perform better. china is active in such gatherings as the G20 and G8, we are talking about global finance with the World bank, the International Monetary fund and other global financial institutions. v

The european Union is china’s largest trading partner. for eU countries combined, china is third on the list of export partners. The total value of goods traded between china and the eU in 2009 amounted to E296 billion, while E30 billion worth of services were exchanged, according to Poland’s Ministry of economy.

nevertheless, although Poland is in the eU, china ranked in a lowly 21st position on its list of export partners in 2009. The situation is getting better though, and the main dynamo for improvement is coming from a surprising source – the eco-nomic crisis.

“a few years ago finding companies willing to attend business missions in china was a serious problem. even big compa-nies said that this direction was not among their interests. suddenly their attitude has changed, and now we have a problem with choosing those who can go,” said tomasz os-taszewicz, director of the Department of bilateral economic cooperation at the Ministry of economy.

Crisis, the healerchina is Poland’s most important asian partner, but, when viewed from the perspective of Poland’s total exports, it is still only plays a bit part. Polish exports to china in 2009 amounted to only 1.1 percent of overall exports. Polish busi-nesspeople are often intimidated by the differences between Polish and chinese culture and are put off by china’s com-

plicated legal system. They prefer to start trading with the czech Republic or slovakia, then later expanding to france and Germany.

Most often those firms which export to china are large enti-ties which trade raw materials rather than refined and pro-cessed goods.

although the last 10 years have been marked by trade growth between Poland and china, Poland still has a high trade deficit with the asian powerhouse. according to the economy Ministry, between 2003 and 2008, Polish ex-ports to china rose – from E224 to E866.5 million, while chinese exports to Poland have risen from E2.56 billion to E11.46 billion.

In the same period, Poland’s trade deficit with china has ris-en from E2.33 billion to E10.59 billion. The deficit is also vis-ible in the number of companies involved in Poland-china trade – 1,289 exporting from Poland and 17,175 exporting from china.

However, many experts believe the year 2009 marked a positive turning point for Poland. Paradoxically, during that year, when the crisis was at its worst, Polish exports to china increased by 21 percent. over the same period, the average value of overall Polish exports decreased by 15 percent y/y. china’s exports to Poland also decreased and as a result, for the first time in many years, Poland’s trade deficit with china decreased. In addition, the number of companies exporting from Poland rose by 62, while chi-nese importers decreased in number by 436.

Though that might seem surprising, the explanation is sim-ple. Due to the crisis, european countries were not able to receive the same volume of products from Poland as they had previously, and Polish businesspeople were forced to turn their eyes to china.

chANgINg AttITuDEs

Polish firms are coming around to the Chinese market

72 Made in Poland 2011bIlateral traDe: cHIna

Hurdles to entrycompanies interested in exporting to china come largely from the grocery, jewelry and environmental engineering sectors, said Rajmund Żelewski, vice president of Polish-chinese chamber of commerce.

The Ministry of economy’s tomasz ostaszewicz sees the fu-ture of Poland’s trade with china continuing to come from these sectors.

“Recently five Polish poultry companies obtained the certifi-cate which allows them to export poultry to china. taking into account the high veterinary and health requirements, this can be considered a real success,” said Mr ostaszewicz.

“Moreover, I see a chance to export special vehicles, such as fire engines and emergency cars, as chinese provinces are in the process of developing their services in these fields,” he added.

nevertheless, the structure of exported products is still far from ideal. big Polish companies export mostly copper, spe-cialist machines and chemical products while chinese ex-ports to Poland include mechanical and electrical devices, clothes and shoes. Poland, in short, lacks smaller companies which export highly processed products.

The disadvantages and problems Polish businesspeople have to face do not end there, according to Mr Żelewski.

“china is characterized by complicated legal rules, problems

with chinese companies, importing licenses for 338 product categories and others. Moreover, the trade deficit is still far from being minimized,” he said.

“Imports from china will probably not decrease due to long-term agreements, and exports to china depend on the Polish side. a big promotional campaign might be helpful, but given the budget constrains in 2011, the economy Ministry cannot afford it,” explained Mr ostaszewicz.

What next?Mr Żelewski said that political activity is crucial for the devel-opment of Polish-chinese trade. The Polish government needs to maintain good political relations with this huge partner.

a bilateral governmental commission is currently working on developing cooperation between the two countries, while Polish and chinese logistics companies are continually im-proving connections between Poland and china.

after the success of the Polish pavilion at expo 2010 in shanghai, the Polish Information and foreign Investment agency opened an office in shanghai. Moreover, President bronisław Komorowski could possibly visit china in april 2011, Mr ostaszewicz said.

but the last word belongs to businesspeople – they are the ones who need to shake off old inhibitions and embrace the potential of the world’s second-largest economy.

Joanna�Sopyło

73Made in Poland 2011 bIlateral traDe: eURoPe/GeRManY

The growth and development of the Polish economy is a won-derful european success story. so too is the development of

German-Polish relations in recent years. our countries enjoy smooth cooperation in politics and business, including in our approach to trade and investments. We also hold com-mon positions on most european issues. The shared under-standing both countries have now was inconceivable just one or two decades ago.

never in the past have German-Polish relations been so good – and the economic relations between our countries reflect the excellent understanding both of our economies have.

Bilateral tradeDespite the burdens caused by the global financial crisis, Po-land’s importance for German foreign trade is still growing steadily. among all other German trade partners in central and eastern europe, Poland continues to hold first place – ahead of the czech Republic and Russia. We expect the flow of trade to keep developing dynamically this year and in 2012 as well.

In the opposite direction, Germany has been the most impor-tant trading partner by far for Poland for many years. approxi-mately 26 percent of all Polish exports are shipped to Ger-many. The country’s robust, strong economic growth supports this sound development. In 2011, Poland and Germany will be among the countries with the highest growth rates within the eU. The Polish market is important for countless German exporters. two-thirds of German exports to Poland are from those industries that are traditionally strong in Germany – ma-chinery and equipment, electronics, cars, various commodities and chemical products. surprisingly, the structure of Polish ex-ports to Germany does not differ considerably and points to a healthy, although not quite balanced, trade exchange with an overall volume of E66 billion in 2010.

Business tiesa few companies have been present in Poland for many years – a good example is basf, which has Polish roots dating back to the end of the 19th century. nearly all major German players have discovered the Polish market. some of them see Poland as a good basis for their activities in other cee coun-tries. Increasing numbers of sMes are expanding their range of coverage – for instance Polish It companies with compar-ative advantages are branching out into the German market.

The framework conditions for German-Polish economic re-lations are excellent. This has been confirmed during numer-ous official visits and during the latest consultations between the German and Polish governments. Many businesses in Germany appreciate the policy of steady economic renewal in Poland and, though still slow at times, the improvement of Poland’s infrastructure.

The presence of a high number of German companies in Poland reflects the growing importance of central europe. There are a growing number of German contacts to countries located around the baltic sea, while the eastern Partnership and contacts within the framework of the so-called Weimar triangle (france, Germany and Poland) continue to be im-portant for Germany. There is an increasing potential for investments in cee, with Poland serving as a hub between east and West. Poland’s integration into the eU and its sus-tainable and responsible economic and financial policies are considered important factors by German companies when they make investment decisions.

InvestmentWithout counting smaller investments of less than E1 mil-lion, over the past 20 years, cumulative German investments in Poland have amounted to more than E20 billion. German capital has therefore created numerous jobs and strength-ened local communities in Poland. Metro Group, volkswa-gen, Man, Robert bosch, RWe, siemens, basf and bayer are among the most significant investors. However, I hesitate to name them as there is a risk of omitting other important companies.

Poland’s membership of the eU, its large and growing in-ternal market, proximity to Germany, competitive tax rates, highly qualified labor force and expected positive growth rates for years to come are among the factors that make Po-land an excellent country to trade with and invest in. vice-versa, Polish export-oriented companies see the German market as a place of strong innovation, high labor produc-tivity and excellent infrastructure. Many also see it as the home of world-leading research institutions in both basic and applied research. v

A European success story

Helmut�Lüders�Head�of�the��economic�department�at�the�German��Embassy�in�Warsaw

74 Made in Poland 2011bIlateral traDe: eURoPe/GeRManY

Poland has reaped huge economic benefit from its 2004 ac-cession to the european Union. structural funds have poured in, allowing the country to develop its infrastructure and, ac-cording to many economists, stave off recession in 2009.

In terms of trade, the volume of Polish exports to the european single market has grown in each year since the country’s acces-sion, although imports dipped slightly in the crisis year of 2009.

last year, total exports to the eU stood at zł.368.55 billion, compared to zł.222.89 billion in 2005.

Trade patternsThere has been no discernible pattern in terms of the struc-ture of Poland’s exports to the eU since its accession. The proportion which goes to the bloc has hovered between 77-80 percent every year since 2005. The eU accounted for 78.6 percent of Poland’s exports in 2010, a drop of one percentage point from the year before.

Imports coming from the eU, however, have displayed a slight downward trend since 2005. last year, 58.8 percent of all imports came from the eU while in 2005 the volume stood at 65.6 percent.

one reason for this is the rise of china’s economic star, and in particular the success of its exporters. In 2009, china had risen to become the second-largest importer to Poland, be-fore Russia moved back into second place in 2010 – re-estab-lishing its position as the major non-eU importer to Poland.

“In the case of china, the story is the same as everywhere else. Many countries import a lot of goods from china, gen-erating a high trade deficit with them,” said Monika Kurtek, senior economist at bank bPH.

“Russia is in second place mainly due to high prices of im-ported commodities like oil and gas,” she added.

The Germany effectIn terms of the absolute value of trade with the eU, 2007 saw the most significant y/y leap, as Poland cashed in on imple-mentation of the schengen agrement. This abolished border

controls between signatory countries and allowed trade to flow more freely across Poland’s frontiers.

In 2009, the main imports into Poland were machinery and transport equipment – products badly needed by the coun-try’s developing economy. Domestic demand is the main en-gine of GDP growth in Poland and high export volumes are required to meet it. Much of the supply comes from Germa-ny, whose economy produces advanced technical products and raw materials vital to Poland.

Germany, which neighbors Poland and whose economy is the largest in the eU, has been Poland’s main trading part-ner since 1990. Poland’s exports to its western neighbor ac-counted for 26 percent of the total last year, while Germany accounted for 21.7 percent of all imports, according to Pol-ish statistics. to put the size of Germany’s share in perspec-tive, the next most significant destination for Polish exports, france, accounted for just 6.8 percent of the total.

Poland imports goods from Germany that the latter is tra-ditionally strong at making, such as machinery, electronic products and cars. It also imports a number of commodities including chemicals.

Accounting for differencesThe products Poland exports to Germany, meanwhile, are surprisingly similar and were in great demand last year.

companies such as aluminum-products maker Grupa Kęty, oil refiner orlen and many from the chemicals sector ramped up production to meet demand from Germany where indus-trial output leaped in 2010. Indeed, on the back of this, Pol-ish production was 11.5 percent higher in December 2010 than a year earlier.

surprisingly, Poland does not run a trade deficit with Ger-many, at least according to Polish statistics. last year, Poland exported zł.121.88 billion to its western neighbor, and im-ported zł.113.54 billion. but this may have more to do with who does the counting than anything else.

There is a considerable difference between German and Pol-ish statistics. according to official German statistics, there was a trade deficit of roughly E10 billion in 2010. In euro terms, according to Poland’s statistics office, Poland had around E2 billion in surplus.

DependencyGermany’s share of Poland’s trade pie has been diminishing, albeit extremely gradually, ever since Poland began its eco-

rELyINg ON gEr MANy

Germany’s economic health is crucial to Poland’s exporters

75Made in Poland 2011 bIlateral traDe: eURoPe/GeRManY

nomic transition. German imports to Poland dropped by 0.7 percentage points y/y in 2010.

nevertheless, for Polish manufacturers, much will still de-pend on the strength of German demand.

“as long as the economic situation in Germany does not de-teriorate, Polish producers should not have any reason to be worried,” said Ms Kurtek.

should the fiscal problems of the euro zone’s periphery coun-tries spread to the zone’s major economies, however, Poland could suffer from a huge drop in international demand for its products.

Poland’s exporters would be wise, therefore, to explore mar-kets further afield and to slowly wean themselves off their dependency on the single market. Gareth�Price�

76 Made in Poland 2011bIlateral traDe: RUssIa

The Russian federation is Poland’s second-largest partner in terms of turnover, just behind Germany when it comes to

imports and sixth when it comes to exports. Poland, in turn, firmly belongs to Russia’s top 10 trade partners, taking fourth position among eU countries. after a short period during the crisis with a dramatic 40 per-cent fall in mutual turnover, Polish-Russian trade is again seeing growth. according to Russian statistics, turnover be-tween Poland and Russia amounted to $20.8 billion in 2010. That includes exports from Russia to Poland at about $14.9 billion and Russian imports from Poland at about $5.8 bil-lion. according to Polish statistics, Poland’s imports from Russia amounted to $18.2 billion, while exports from Poland to Russia equaled $6.6 billion. Despite the differences, both sets of statistics reflect the dynamism and significance of trade between the two countries.

Key productsRussian exports to Poland are characterized by a low level of diversification and an exceptionally high share of unpro-cessed or little-processed products. Minerals and, especially, energy, form over 90 percent of Russian exports to Poland. for Russia, that is a significantly larger proportion than with any other country in the world. obviously, this makes Polish-Russian trade too dependent on the global economic situa-tion and too sensitive to crisis.

The main products that Russia supplies to Poland are crude oil and unprocessed petroleum products, amounting to over 70 percent of exports. contrary to widespread misconcep-tions in Poland, the share of natural gas imported from Rus-sia is relatively small and equals around 15 percent (includ-ing gas supplied through the territory of Ukraine). liquified

petroleum gas (propane, butane) and an increasing supply of coal make for a three-percent share of Russian exports to Po-land. synthetic rubber, petroleum jelly and paraffin, as well as potassium fertilizers, take further positions.

Polish exports to Russia are far more diversified: they com-prise two large groups of products. The first group includes products that Poland has been exporting to the Russia for many years, even decades. These include agricultural prod-ucts and foodstuffs, cosmetics, paper products, building and finishing materials and plastic articles.

In 2010, Poland exported fresh apples worth $200 million to Russia. exports of make-up and skin-care products were valued at $150 million. exports of putty and sealing com-pounds, as well as paint fillers, amounted to $90 million.

The other major group of Polish exports to Russia includes products coming from Poland-based daughter companies of global corporations, mainly in various branches of the elec-tronics industry such as home appliances and consumer elec-tronics. The group also includes car production and medicines.

In 2010, the top Polish export to Russia was parts and units of transmitting devices, mainly tv receivers. exports from this branch were worth $340 million. exports of complex medi-cines amounted to almost $270 million, while exports of car parts and accessories equaled $160 million. exports of electric ovens and other home appliances reached $83 million.

notably, however, the same type of production is gradually developing in Russia and constitutes growing competition to imports. This process has strengthened due to the global crisis.

Potential for developmentThe prospects of further growth of our exchange are pre-dominantly linked to cooperation in the sphere of invest-ment and innovation. The possibility exists for establishing common Russian-Polish enterprises in one of our countries that would produce products intended for both the Russian and european markets. scientific and technical cooperation might also play an important role.

sectors which have the best conditions for the expansion of such cooperation include It, energy production, chemicals, metalury, machine construction and transport. other fields, such as agriculture and environmental protection technolo-gies, also have good prospects.

There is mutual interest in cooperation in the field of energy-efficiency and the use of renewable energy sources.

To improve trade, improve trust

Ekaterina�Belyakova�Trade�representative��at�the�Russian��Embassy�in�Warsaw


Strengths and weaknessesThe strengths of Russian-Polish economic cooperation in-clude traditions of cooperation, the understanding of each others’ mentality and, partly, the conditions for operating on each others’ markets. We have a treaty that forms a good basis for cooperation. However, it lacks provisions on support and mutual protection of investments.

on both sides there are administrative and technical barriers, such as the insufficient development of transport infrastruc-ture or difficulties in starting up.

However, the biggest barriers have emerged in people’s minds. I think that until significant changes in the political climate of our relations appear, real progress in business rela-tions is not possible.

but signs of such changes are already visible. There is signifi-cant investment activity on the part of Polish firms in Russia.

consolidated direct Polish investment in Russia at the end of Q3 2010 amounted to $428.5 million.

Russian investments in Poland, however, are scant. Positive examples are important, but we won’t find fully successful cases of Russian investment in Poland. The few projects that exist are an exception to the rule. There is reason to say that there is a bias against Russian capital, both in public opinion in Poland and among the country’s elite.

We need to meet and learn about each other. That is why we are seriously considering creating various platforms for con-tacts, the exchange of entrepreneur delegations and regions’ representatives.

We simply need to improve trust. no matter how long we talk about the possibility of doing good business and no matter how much we could possibly earn from it, we will not im-prove business ties if one side doesn’t trust the other. v

bIlateral traDe: RUssIa

say the words “Russian trade” to a Pole and he or she might first think of Russian goods arriving from Kaliningrad. In recent times, the long queues of cars smuggling alcohol and cigarettes from the Russian enclave into Poland have been one of the few sure things in exchange between the two coun-tries.

That wasn’t always the case. In the years from 1950 to 1990, soviet Russia was Poland’s main trading partner in terms of both imports and exports. but since its comecon trading system collapsed in 1990, Russia’s importance as an export market for Polish goods has fallen significantly.

from Q1 to Q3 2010, Russia ranked as Poland’s seventh-largest trading partner, receiving only 3.8 percent of its ex-ports, according to Poland’s central statistical office (GUs).

Germany, on the other hand, led the list with a 25.8 percent share of Polish exports, followed by france and the United Kingdom with 7.2 and 6.8 percent shares, respectively.

Holding grudgesany improvement in these figures will not only be dependent on what makes business sense. Polish-Russian trade is unique in that it is also strongly influenced by the countries’ current political relations.

“We observed it right after the smolensk plane crash, when we saw a great warming of relations. However, right after our criticism of the Russian report into the crash, suddenly the Russians did not want to allow Polish transportation companies to enter the country,” said Wojciech borodzicz-smoliński, an analyst from the center for International Rela-tions in Warsaw.

This latest dispute over transit permits was finally settled – but only after Polish trucks were turned away from the Rus-sian border for eight straight days. With over 90 percent of Polish goods being delivered by semi truck, it is estimated to have cost the Polish freight industry over zł.30 million.

busINEss WITh ThE bEAr

Polish-russian trade is growing, but is influenced by factors other than just what makes business sense

78 Made in Poland 2011bIlateral traDe: RUssIa

It’s not surprising, therefore, that politically motivated dis-putes such as this have tarnished the image of Russia as a re-liable trading partner. Polish companies are now somewhat nervous about sending their products eastwards to Russia.

In 2009, the involvement of Polish companies in the Russian economy remained small in comparison to those of other countries, according to a survey conducted by the Polish In-formation and foreign Investment agency (PaIiIZ). In that year, 75 percent of all Polish companies surveyed were active in Germany, while 48 percent traded in the czech Repub-lic and 48 percent in Ukraine. However, only 33 percent of those questioned said they were active in Russia.

“Political factors will affect Polish-Russian [trade] relations till the moment that Russia becomes a truly democratic state,” added Mr borodzicz-smoliński.

A worrying diagnosisIt’s something which causes anxiety in certain sectors of the Polish economy. In 2009, Russia was the fourth largest recipi-ent of Polish pharmaceuticals, receiving products worth some zł.401.6 million, 8.4 percent of Poland’s total pharmaceutical exports, according to Poland’s central statistical office.

for some companies such as Polfa Warszawa, much of their business models rest on income from exports to Russia, and with it the ups and downs of Russian-Polish political rela-tions. In 2008, Polfa Warszawa received 50 percent of its total export sales from Russia, Ukraine and belarus. The european

Union, on the other hand, only managed to se-cure half this figure.

but although Russia may sometimes seem an unpredictable trading partner, the potential gains are too great for many to ignore. Polish companies have therefore learned to live with, and adapt to, the uncertainty of the Russian market.

“Polish companies recognize Russia as a market of the future and Poles have a kind of special knowledge of how to work in an unfriendly investment environment,” Mr borodzicz-smoliński added.

Tipping the balancetraveling in the opposite direction of Poland’s pharmaceutical exports are huge quantities of Russian gas and oil. Indeed, say the words “Rus-sian trade” to a Pole and the second thing he or she might think of are the millions of cubic meters of oil and gas flowing into the country, providing the Kremlin with an uncomfortable amount of leverage over Poland’s economy.

In 2009, Poland spent zł.27.7 billion on the pur-chase of Russian mineral products, including oil and gas, lubricants and other related materials – more than from any other country.

In total, 92 percent of Poland’s gas comes from Russia – a dependence which tips the trading

balance significantly in Russia’s favor. Year-on-year, Poland continues to add to its significant trade deficit with Russia, which has grown steadily from $530 million in 1997 to $7.82 billion in 2009, according to GUs figures.

“This situation may change if Poland manages to develop substantial amounts of shale gas. In that case, Poland’s de-pendence on Russian gas imports could decline in the long-run,” said energy analyst adnan vatanser from the carnegie endowment, a foreign-policy think tank.

Indeed, if the highest predictions for the amount of shale gas lying under Poland’s soil turn out to be accurate, the country could itself become a net exporter of gas.

Winds of changeDespite the sometimes negative aspects of trade with Rus-sia, Polish exchange with its eastern neighbor is changing and improving year-on-year. In 2010, it rocketed by 40 percent, and it looks set to continue this trend in the coming years.

symbolic of this change is the opening of a new crossing point on the Polish-Kaliningrad border. With capacity for 4,000 vehicles, it is hoped that the crossing will at last put an end to the practice of smuggling Russian goods into Poland.

say the words “Russian trade” to a Pole in some years’ time then, and the images that come to mind may be altogether more positive. Andrew�Shale

79MIsteR & JUnIoR of exPoRt coMPetItIonMade in Poland 2011

Warsaw business Journal Group and the Polish chamber of commerce, under the patronage of the economy Ministry, have un-dertaken a new initiative called the Polish export Promotion Program, aimed at promoting Polish exporters and their products abroad. Through this project we will shine a spotlight on Poland’s export market, as well as the companies and products that it comprises, and draw attention to their achievements.

The project includes two core events: publication of Made in Poland and the Mister & Junior of exports competition.

“Mister & Junior of Export 2011” competition

under the patronage of the Ministry of EconomyThe competition for the title of the “Mister & Junior of export 2011” is organized by the Polish Chamber of Commerce and Warsaw Business Journal.

RULES AND CONDITIONS

§1

The objective of the competition is to distinguish products (goods or services) characterized by specific quality and economic value which serve as good examples of achievements in export. The competition is to serve as a means of promotion for these products and is to emphasize the role of export in the development of Poland’s economy.

§2

Products submitted in the Mister of export category must have been a subject of export for at least three years. each exporter has the right to submit up to five products.

§3

Products submitted in the Junior of export category must have been a subject of export for at least one year. each exporter has the right to submit up to five products.

§4

all exporters of domestic products are eligible to participate in the competition. Participation in the competition is free of charge.

§5

The main criteria for evaluating products submitted for the competition:

• value of exports of the product – 40% • level and innovativeness of the technical and technological solutions, and the originality of the solutions – 30% • growth (in relation to previous years)*, export prospects and sales markets – 20% • competitiveness of the product on the external market (price, functionality and aesthetics of the product) – 10%

§6

The competition is divided into two stages:

1. During the first stage the commission will examine the submitted forms for formal approval and will designate a group of products to be evaluated by the jury of the competition

2. During the second stage the jury will select the winners of the competition among all those that qualify for the final.

80 MIsteR & JUnIoR of exPoRt coMPetItIon Made in Poland 2011

§7

Members of the jury of the competition are appointed by the chairman of the Polish chamber of commerce. The jury of the competition can ask for opinions from experts to evaluate the selected products.

§8

The jury of the competition grants the winners of the competition the following titles:

• Mister of export • vice-Mister of export • Junior of export

§9

1. The winner of the Mister of export category will receive:

• The title “Mister of export 2011”, • The statuette “Mister of export 2011”, • a cash prize of zł.20,000 and a letter of congratulations from the economy Minister,

2. The winner of the vice-Mister of export category will receive:

• The title “vice-Mister of export 2011”, • a cash prize of zł.10,000 and a letter of congratulations from the economy Minister.

3. The winner of the Junior of export category will receive:

• The title “Junior of export 2011”, • a cash prize of zł.10,000 and a letter of congratulations from the economy Minister.

The jury of the competition, depending on the results of the final evaluation of the products, will decide during a plenary session on the number and type of granted titles, awards and distinctions.

§10

all products taking part in the final phase of the competition which received an award or a distinction have the right to use the title: “Winner of the Mister and Junior of export 2011 competition”.

§11

The announcement of the results of the competition and the handing out of the awards will take place in June 2011, during a gala in Warsaw.

§12

Entering�the�competition:

all detailed information concerning the competition, including the registration form, can be found on the following websites:

www.kig.pl,�www.wbj.pl

The registration form (one registration form for each individual product), together with the required documents must be deliv-ered before april 30, 2011 to the following address:

Polish�Chamber�of�Commerce 00-074 Warsaw, ul. trębacka 4,

room 303 with the annotation: “Mister & Junior of export 2011 competition”

The jury of the competition can request the presentation of a model of a product submitted to the competition. In such a case, the date and place of delivery of the model of the products submitted to the competition should be settled with the appropriate responsible persons.

Responsible�persons:

bogdan Galewski tel.: (22) 63 09 666 [email protected]

Żanna szulc-stronczyńska tel.: (22) 63 09 668 [email protected]

*does not apply to applications in the Junior of export category

81MIsteR & JUnIoR of exPoRt coMPetItIonMade in Poland 2011

reGIStratIon ForMMISter & JUnIor oF exPort

page 1

1 Product name, product group

2 Producer’s name

3 Producer’s address

4 Exporter’s name

5 Exporter’s address

6Annual production volume of product(according to 2010 annual report)

In units (unit name)

10 Value of export of the given product in 2010

Value in złoty mln

7 Export growth compared to previous years*11 Countries to which the

product is exported8 Unit price of export in złoty

9 Product age

Since when has the current version been produced?When was export started?

12

Percentage share of the product export in relation to company’s total exports

Product data

13 Was the product created with participation of industrial designers, experts on ergonomics?

14 Is the product the original solution of the producer?

15 What kind of certificates, attestations or awards has the product received?

16 Does the product have a quality certificate?

17 Does the product have an opinion from a KIG division or a sector chamber of commerce?

18 Does the product have an opinion from experts, and if yes, what kind of experts?

* does not apply to registration in the Junior of Export categoryProducer

(director’s signature and company stamp)

#

82 MIsteR & JUnIoR of exPoRt coMPetItIon Made in Poland 2011

reGIStratIon ForMMISter & JUnIor oF exPort

page 2

Product name:

Producer name:

Exporter name:

Picture of the registered product or a description of the service in the form of a print-out or recorded on electronic media (CD, DVD)

Producer (director’s signature and company

stamp)

!

83UsefUl contactsMade in Poland 2011

ChAMberS oF CoMMerCe

Name Address Tel.Fax

E-mailWebsite

Top executive Title

American Chamber of Commerce ul. E. Plater 5300-113 Warsaw

22 520-599922 520-5998

[email protected]

Józef WancerChairman

British-Polish Chamber of Commerce

ul. Fabryczna 16/2200-446 Warsaw

22 320-010022 621-1937

[email protected]

Martin OxleyCEO

Czech-Polish Chamber of Commerce

ul. Janackova 10702 00 Ostrava, Czech Republic

(+420) 596-612-230(+420) 596-612-231

[email protected]

Magdalena HoleksováDirector

French Chamber of Commerce and Industry in Poland

ul. Widok 800-023 Warsaw

22 696-758022 696-7590

[email protected]

Monika ConstantGeneral Director

German-Polish Chamber of Industry and Commerce

ul. Miodowa 14 00-246 Warsaw

22 531-050022 531-0600

[email protected] www.ahk.pl

Lars BosseCEO

Irish Chamber of Commerce in Poland

ul. Mysia 500-496 Warsaw

22 690-688022 690-7590

[email protected]

Kenny Morgan President

Netherlands-Polish Chamber of Commerce

ul. Jana Pawła II 2900-867 Warsaw

22 653-788522 653-7874

[email protected]

Eric DrokChairman

Polish-Azeri Chamber of Commerce and Industry

ul. Św. Jana 5542-200 Częstochowa

34 361-465134 361-3126/18

[email protected]

Witold PiecuchCEO

Polish-Belarusian Chamber of Commerce and Industry

ul. Kopernika 3000-336 Warsaw

22 828-5102 22 828-5101

[email protected] www.pbihp.pl

Józef Łochowski CEO

Polish - Bulgarian Chamber of Commerce

ul. Bobrowiecka 4A00-728 Warsaw

22 642-6960 22 642-6960

[email protected]

Vladislav Angelov President

Polish-Canadian Chamber of Commerce

ul. Pulawska 300A02-819 Warsaw

22 697-6888 22 697-6886

[email protected]

Michael MiasekPresident

Polish-Indian Chamber of Commerce

ul. Bukowska 1260-810 Poznań

61 610-131661 610-1318

[email protected]

Ryszard Sznajder President

Polish-Italian Chamber of Commerce

ul. Kredytowa 8/2600-062 Warsaw

22 828-200822 826-0936

[email protected];www.cciip.pl

Donato Di GilioCEO

Polish-Portuguese Chamber of Commerce

Al. Niepodległości 6902-626 Warsaw

22 322-766722 322-7667

[email protected]

Pedro Pereira da SilvaChairman

Polish-Russian Chamber of Commerce and Industry

ul. Zimna 2/200-138 Warsaw

22 654-737322 654-7388

[email protected]

Hanna WielgoszCEO

Polish-Spanish Chamber of Commerce

ul. Arabska 903-977 Warsaw

22 511-157022 511-1571

[email protected]

Stefan Bekir AssanowiczCEO

Polish-Swedish Chamber of Industry and Commerce

ul. Chmielna 101/10280-748 Gdańsk

58 763-146958 768-1480

[email protected]

Tadeusz IwanowskiCEO

Polish-Swiss Chamber of Industry and Commerce

Al. Jana Pawła II 1500-828 Warsaw

22 697-797922 697-7980

[email protected]

Marek KondratPresident

Polish-Turkish Chamber of Commerce

ul. Smocza 2701-048 Warsaw

22 652-161922 652-1622

[email protected]

Marek Nowakowski CEO

Polish-Ukrainian Chamber of Commerce

ul. Mazowiecka 2/400-048 Warsaw

22 828-008122 827-0079

[email protected]

Jacek PiechotaPresident

Scandinavian-Polish Chamber of Commerce

ul. Wiśniowa 40B/902-520 Warsaw

22 849-741422 646-4930

[email protected]

Carsten NilsenChairman

84 UsefUl contacts Made in Poland 2011

GovernMent AGenCIeS

Name Address Tel.Fax

E-mailWebsite Top Executive

Agency for Restructuring and Modernisation of Agriculture

ul. Poleczki 3302-822 Warsaw

0-800-380-08422 318-5330

[email protected] Tomasz Kołodziej

Agricultural Property Agency ul. Dolańskiego 2 00-215 Warsaw

22 635-800922 635-0060

[email protected] Tomasz Nawrocki

Central Statistical Office Al. Niepodległości 20800-925 Warsaw

22 608-300022 608-3860

[email protected] Józef Oleński

Chancellery of the Prime Minister Al. Ujazdowskie 1/300-583 Warsaw

22 694-600022 625-2637

[email protected] Tomasz Arabski

Chief Sanitary Inspectorate ul. Długa 38/4000-238 Warsaw

22 536-130022 635-6194

[email protected] Andrzej Wojtyła

Customs Service ul. Świętokrzyska 1200-916 Warsaw

22 694-555522 694-4303

[email protected] Jacek Kapica

Ministry of Agriculture and Rural Development

ul. Wspólna 3000-930 Warsaw

22 623-100022 623-2750

[email protected] Marek Sawicki

Ministry of Economy Pl. Trzech Krzyży 3/500-507 Warsaw

22 693-500022 693-4046

[email protected] Waldemar Pawlak

Ministry of Labour and Social Policy

u. Nowogrodzka 1/3/500-513 Warsaw

22 661-100022 661-1336

[email protected] Jolanta Fedak

Ministry of Regional Development ul. Wspólna 2/400-926 Warsaw

22 461-300022 461-3275

[email protected] Elżbieta Bieńkowska

Ministry of Treasury ul. Krucza 36/Wspólna 600-522 Warsaw

22 695-800022 628-0872

[email protected] Aleksander Grad

National Bank of Poland ul. Świętokrzyska 11/2100-919 Warsaw

22 653-100022 620-8518

[email protected] Marek Belka

National Labour Inspectorate ul. Krucza 38/42, Warsaw00-926 Warsaw

22 420-373122 625-4770

[email protected] Tadeusz Jan Zając

Polish Agency for Enterprise Development

ul. Pańska 81/8300-834 Warsaw

22 432-808022 432-8620

[email protected] Bożena Lublińska-Kasprzak

Polish Information and Foreign Investment Agency

ul. Bagatela 1200-585 Warsaw

22 334-980022 334-9889

[email protected] Sławomir Majman

Polish National Police ul. Puławska 148/15002-624 Warsaw

22 621-025122 601-2921

[email protected] Andrzej Matejuk

Polish Tourist Organisation ul. Chałubińskiego 800-613 Warsaw

22 536-707022 536-7004

[email protected] Rafał Szmytke

Public Procurement Office ul. Postępu 17a 02-676 Warsaw

22 458-770222 458-7700

[email protected] Jacek Sadowy

Social Insurance Institution ul. Szamocka 3, 501-748 Warsaw

22 667-100022 667-1418 www.zus.pl Zbigniew Derdziuk

Supreme Chamber of Control ul. Filtrowa 5/702-056 Warsaw

22 444-500022 444-5793

[email protected] Jacek Jezierski

The Office of Competition and Consumer Protection

Pl. Powstańców Warszawy 1 00-950 Warsaw

22 556-0800 22 826-6125

[email protected] www.uokik.gov.pl

Małgorzata Krasnodębska-Tomkiel

The Patent Office of the Republic of Poland

Al. Niepodległości 188 / 19200-950 Warsaw

22 579-000022 579-0001

[email protected] Alicja Adamczak


eventS For IMPorterS And exPorterSDate Event Description Website

May 12-15, 2011 Targi Techniki Motory-zacyjnej

TTM is the largest automotive technology fair in Poland and is targeted at professionals from the automotive industry. http://ttm.mtp.pl/pl

May 25-27, 2011 Home Decor i Luminexpo

Home Decor is the largest fair dedicated to the interior design and fittings industry in the region. http://www.homedecor.pl/pl

June 1-2, 2011 7th edition of AutoEventAutoEvent is the biggest and the most substantive annual confer-ence of the automotive industry in Poland and in Central and Eastern Europe.

http://www.autoevent.pl

June 14, 2011Mister and Junior of Export Competition Gala

The Mister and Junior of Export awards will be handed out at a festive gala, organized by the Polish Chamber of Commerce (KIG) in cooperation with Warsaw Business Journal.

http://www.wbj.pl

June 14-17, 2011 ITM Poland ITM Poland – the largest fair of modern technologies for indus-try in Poland. http://technologie.mtp.pl/en

July 14-16, 2011 INNOPROM

INNOPROM presents advanced technologies developed in Russia which are ready to be used in industry, to facilitate the spreading of the best innovation practices and developing busi-ness connections between industrial enterprises and technology developers.

http://www.innoprom.org

August 30 – Sep-tember 1, 2011

The BTS Exhibition of Shoes, Leather and Leather Goods

The BTS Exhibition of Shoes, Leather and Leather Goods features trends for autumn and winter 2011/2012. http://bts.mtp.pl/pl

August 30 – Sep-tember 1, 2011

The NEXT SEASON Exhibition of Clothing, Lingerie and Accessories

The NEXT SEASON Exhibition of Clothing, Lingerie and Acces-sories features trends for fall-winter 2011/2012. http://nextseason.mtp.pl/pl

September 4-7, 2011

Autumn Fair International

Autumn Fair International is the biggest show of its kind during the third quarter, and is the most important buying opportunity for retailers seeking fast-moving items for the festive season and beyond.

http://www.autumnfair.com

September 5-8, 2011

MSPO Expo “International Defence Industry Exhibition”

MSPO Expo is one of Europe’s largest and most important events dedicated to the defense industry. http://www.targikielce.pl

September 8-18, 2011 İzmir International Fair İzmir International Fair is the oldest trade show in Turkey with

various product groups. http://ief.izfas.com.tr

September 12-15, 2011 Polagra-Food Food sector specialists from the country and abroad will meet in

Poznań for the 26th time. http://www.polagra-food.pl/pl

September 12-15, 2011 Polagra-Tech

International Trade Fair of Food Processing Technologies Polagra-Tech is the most important trade meeting of its type Central and Eastern Europe.

http://www.polagra-tech.pl/pl

September 13-16, 2011

World Food Moscow 2011

The leading international exhibition for food products in Russia takes place in the centre of Moscow city. http://www.world-food.ru/eng

September 14-18, 2011

Zagreb International Autumn Fair, Zagreb, Croatia

Zagreb International Autumn Fair is a group of specialized fairs on topics including energy, ecology, innovation, construction and transport.

http://www.zv.hr

October 5-7, 2011 WorldHotel 2011WorldHotel aims to present a full and diverse offering of products, services and solutions for lodging houses of different standards.

http://www.targiwarszawa.com

October 6-9, 2011 EXPOPHARM

Visitors from Germany and abroad can explore topics beyond drugs and medicines designed especially for self-administration to include pharmaceutical services, cosmetics, homeopathy, pedi-atrics and food supplements.

http://www.expopharm.de

October 8-12, 2011 Anuga Food Fair The world’s leading food fair for the retail-trade and the food-service and catering markets. http://www.anuga.com

November 18-20, 2011 BOATSHOW BOATSHOW is one of the biggest events presenting yachts,

motorboats, sailing and water sports equipment in Poland. http://www.boatshow.pl

IMPoRteR/exPoRteR events


KPMG

KPMG is one of the largest net-works of professional firms world-wide. In 146 countries KPMG

member firms provide audit, tax and advisory services.

our greatest asset is the expertise of 140,000 of KPMG em-ployees worldwide.

KPMG was among the first professional firms to establish itself in Poland, opening its office in Warsaw in May 1990. In response to the high demand for professional services in audit and advisory, we have opened five regional branches within Poland in Kraków, Poznań, Wrocław, Gdańsk and Ka-towice. KPMG in Poland employs almost 1,200 staff.

We advise Polish and multinational corporations and organi-sations in all sectors of the economy, particularly in finance, insurance, pharmaceuticals, the trade and manufacturing of consumer goods and industrial goods, information, com-munications and entertainment, public administration and sMes.

Why�KPMG?

our member firms around the world have high corporate standards of service.

We have a team of outstanding advisers, comprising hun-dreds of experienced professionals.

our professionals have extensive experience and know-how in their respective industries.

We build close relationships with our clients based on regular communication, deep knowledge of our client’s business and understanding of their expectations.

We have a strong set of values and transparent communica-tion between KPMG personnel and our clients.

We aim to share information, assist in practical implementa-tion of strategies and in interpreting the law and tax regula-tions.

our advisers are recognised for their thought leadership in trade organisations and in the media.

KPMG in Poland ul. chłodna 51, 00-867 Warszawa tel. +48 (22) 528-1100 fax +48 (22) 528-1009 http://www.kpmg.pl [email protected]

The�Polish��Chamber�of�Commerce

(Krajowa�Izba�Gospo-darcza,�KIG)

since 1990 the Polish chamber of commerce has been working primarily for small and medium-sized enterprises, representing their interests at home and abroad. It brings to-gether over 150 local chambers of commerce.

The mission of the Polish chamber of commerce can be summarized in the slogan: “We care about entrepreneur-ship.” This care is demonstrated on many levels. first of all, we represent Polish entrepreneurs in their relations with the President of the Republic of Poland, the government, Parlia-ment and local authorities. We review all draft legislation af-fecting the economy and business activities. In this area, KIG depends on the opinions of its members, especially chambers of industry and experts cooperating with us. another area of KIG’s activity is to provide services to entrepreneurs in such areas as law, training and consultancy. We confirm and issue business documents and certificates. We also contribute to the competitiveness of the Polish economy through the use of eU structural funds for entrepreneurs.

services related to entering business in foreign markets occu-py a special place in KIG’s activities. We provide training to help businesses prepare to do business in foreign countries. We also organize several international trade missions and trade-fair presentations, which are an excellent opportunity to establish business contacts. The headquarters of the Pol-ish chamber of commerce welcomes many delegations of foreign politicians and businesspeople who are looking for partners.

Krajowa Izba Gospodarcza ul. trębacka 4, 00-074 Warszawa tel.: +48 (22) 630-9600 fax: +48 (22) 827-4673 www.kig.pl [email protected]

PaRtneRs

Partners


The�National�Council�of�Agriculture�Chambers

(Krajowa�Rada�Izb�Rolniczych)

www.krir.pl

The national council of agriculture cham-bers is the national representation of all agricultural cham-bers in Poland. It consists of presidents of the agricultural chambers and one delegate from each chamber. The council makes important decisions for the local agricultural cham-bers. The main and basic task of these chambers is to act to solve the problems of and represent the interests of their members. The agricultural chambers influence the shape of agricultural policy and participate in its execution.

The�Polish�Chamber�of�the�Automotive�Industry

(Polska�Izba�Motoryzacji)

www.pim.pl

The Polish chamber of automotive Industry was established in 1994 and consists of representatives of the wider automo-tive industry lobby. We represent companies of the automo-tive sector, including leading car dealers, authorized service, parts and components manufacturers, distributors of garage equipment, professional organizations, certification compa-nies, auto-industry media, and the automotive sector asso-ciations. We bring together both small and large businesses and associations in Poland.

The�Polish�Chamber�of�National�De-fense�Manufacturers

(Izba�Prodcentów�na�Rzecz�Obronności�Kraju)

www.przemysl-obronny.pl

The Polish chamber of national Defence Manufacturers brings together 147 state-owned and private enterprises. They include giants such as bumar, Polish operator, sa Mesko and Radwar, as well as small businesses. The chamber represents the sector to the govenrment, organizes training sessions for its members, works to help its members increase the technical level of their products, facilitates cooperation between members, encourages increased production, and encourages the restructuring and modernization of the in-dustry.

The�Polish�Pasta�Chamber

(Polska�Izba�Makaronu)

www.makarony.org

The Polish Pasta chamber was established in 1997 as a representative of pasta manufacturers to cooper-ate with government administration. The tasks of the organi-zation include active involvement and cooperation with gov-ernment administration in the field of legislation concerning the production and marketing of pasta, as well as undertak-ing joint marketing and promotional activities, publishing activities and information and participation in food fairs. The chamber brings together 21 producers of pasta in Poland.

The�Polish�Chamber�of�the�Shoe�and��Leather�Industry�

(Izba�Przemysłu�Skórzanego)

www.pips.pl

The Polish chamber of the shoe and leather Industry is a non-profit trade association representing the Polish footwear and leather industry. We bring together foot-wear manufacturers, leather goods and clothing producers, tanneries, suppliers of chemicals, accessories, and machines, among others. We cooperate closely with Polish trade press and research institutes. The main aim of our organization is the support for the Polish footwear and leather industry and its effective promotion in Poland and on the international markets.

Internet�portals�cooperating�with�Made�in�Poland:

cosmetics sector partner:�http://kosmetologia.com.pl

agricultural sector partner:�http://kulturawsi.pl

furniture sector partner: http://meble.pl

PaRtneRs


aatK� 32automotivesuppliers.pl� 45autosan� 45

bbalt Yacht� 53bank bPH� 74bank Zachodni WbK� 8basf� 73bayer� 73bell� 47beneteau Group� 55black Red White Group� 40bumar� 22, 29, 30, 32, 33, 87business Monitor International� 60

cciti Handlowy� 10cJsc ZaZ� 44covec� 70

DDacia� 42Danske bank� 18, 19Dax cosmetics� 47, 48, 50, 51Delphia Yachts� 53Doramm� 52Dr Irena eris� 22, 47, 48

ffaurecia Poland� 46fiat� 43, 44finmeccanica� 33fluor sa� 67food service� 24frost & sullivan� 59fso� 44, 45

GGaleon� 53, 54GlaxosmithKline� 59GM� 44Grupa Kęty� 74

IIKea� 39IMs Health� 59Inglot� 47, 48, 50Inter cars� 46

JJelfa� 58Johns Hopkins University� 67

KKama Yachts� 54Kolastyna� 47KPMG� 13, 14, 16

llevi’s� 34, 37lockheed Martin� 32

MMan� 73Meble Kler� 40Metro Group� 73Mirage� 53Moda.com.pl� 37Moody’s� 18

nnG2� 36nissan� 45nitro-chem� 32nowy styl Group� 40, 41

ooceanic� 47, 48, 50okręgowa spółdzielnia Mleczarska w Łowiczu� 24orlen� 74ostróda Yacht� 53, 55

PPco� 32Pharmaexpert� 59PKM Duda� 24Polfa Warszawa� 58, 78Polish operator� 87Pollena eva� 47Polpharma� 22, 58PZl Mielec� 32

RRadmor� 32Radwar� 87Redan� 34, 35Renault� 42Robert bosch� 73

RoHlIG sUUs logistics� 21RWe� 73

ssamar� 44, 45sa Mesko� 87sanitas Group� 58sasanka� 53sato office� 40siemens� 73sikorsky aircraft� 32skipper Yachts� 53Ślepsk� 53sobieski� 28solaris� 22, 43, 45soraya� 47spółdzielnia Mleczarska “Mlekovita”� 24spółdzielnia Mleczarska w Łapach� 24sunreef Yachts� 22, 53, 54, 55swedwood� 39

ttes Yacht� 53tRW Polska� 46

UUnited technologies corporation� 32UPs Polska� 21, 67

vvaleo� 46volkswagen� 73

WWb electronics� 32Wielton� 45Wittchen� 35, 36, 37Wix-filtron� 46

xx-trade brokers� 11, 18, 19x-Yachts� 53, 54

ZZakłady Mięsne Łmeat-Łuków� 24Ziaja� 47ZM bumar-Łabędy� 30Żubrówka� 28

InDex

Index

Investing in Poland 2011Part of Warsaw Business Journal’s series of business guides

presents

For investment news and analysis, visit: www.investinginpoland.wbj.plFoFor r ininininvevevevestststs mememeeemeennntntntntnnn newwws anannd d anala ysysy isisisisssisss, , vv

To order a print copy or CD-ROM version of the publication, e-mail [email protected] or call +48 (22) 639 85 67 ext. 208

presents

made in poland 2011

Documents

polandrussia trade

polandchina trade

polandeu trade

edition of trendbook

business trends

business leaders

partner feature

opening statement