No. 2 (237) / 2016 Polish Market by Polish Market

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No. 2 (237) /2016 :: www.polishmarket.com.pl

Finance

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From The Government Information Centre Prof. Piotr Gliński, deputy Prime Minister and Minister of Culture and National Heritage: TO DO BETTER!

Mateusz Morawiecki, deputy Prime Minister and Minister of Economic Development: INDIA IS A COUNTRY OF UNLIMITED OPPORTUNITIES FOR POLISH EXPORTERS AND INVESTORS The Poland-India economic relations Radosław Domagalski-Łabędzki, deputy Minister of Economic Development: “WE WANT TO INCREASE THE SHARE OF POLISH CAPITAL IN INVESTMENT” THE NEW PRESIDENT OF THE WARSAW STOCK EXCHANGE (WSE)

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Łukasz Kalinowski, President and Managing Director of MetLife in Poland: WE ARE PROUD OF OUR HISTORY, HOWEVER WE KEEP LOOKING INTO THE FUTURE

Prof. Marek Belka, President of the National Bank of Poland (NBP), President of the Monetary Policy Council (RPP): THE MONETARY POLICY COUNCIL IN 2010-2015

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Innovation

From The President’s Press Office

NEW FINANCIAL OPPORTUNITIES FOR MICRO AND SMALL ENTERPRISES

NATIONAL BANK OF POLAND Prof. Elżbieta Mączyńska, President of the Polish Economic Society (PTE): ECONOMICS IS BEAUTIFUL? “WE REWARD SAFE DRIVERS” TELEMATICS IN INSURANCE

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GOVERNMENT SET UP THE INNOVATION COUNCIL Prof. Ryszard Pregiel, Polish Chamber of Commerce for High Technology: IN SEARCH OF A NEW INNOVATION STRATEGY Marcin Haber: INSTITUTE OF AVIATION AN EXAMPLE OF GOOD COOPERATION BETWEEN SCIENCE AND INDUSTRY Jerzy Bojanowicz: “POLISH NOBEL PRIZES” THE WORLD HEARING CENTER INNOVATIVELY, INTERDISCIPLINARILY, GLOBALLY Prof. Florian Ryszka, MD, President of Pharmaceutical Research and Production Plant Biochefa: INNOVATION IN TRANSPLANTATION. REVOLUTION IN MEDICINE IS COMING

THE FIVE PILLARS OF THE POLISH INVESTMENT PROCESS

Marcin M. Kruk, PhD, Director of the Building Research Institute (ITB), Robert Geryło, PhD, deputy Director of the ITB for Strategy and Development: EUROPEAN INNOVATION MARKET STRATEGY OF THE BUILDING RESEARCH INSTITUTE

Infrastructure

Our Guest

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Marek Michałowski, Chairman of the Supervisory Board, Budimex SA: HOMES SELLING LIKE HOT CAKES THE BUILDINGS THAT MAKE YOU HAPPY TO BE ALIVE STRABAG AND VOLKSWAGEN TOGETHER FOR WIELKOPOLSKA Piotr Kledzik, President of PORR Polska Infrastructure SA: WE ARE NOT AFRAID OF ANY CHALLENGES QUALITY AS THE FOUNDATION OF DEVELOPMENT Andrzej Goławski, President of Mostostal Warszawa: INNOVATIONS ARE PART OF MOSTOSTAL WARSZAWA’S DNA

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Paweł Piwowar, chairman of the board of Infovide-Matrix: INFOVIDE-MATRIX HAS SIGNED A CONTRACT WITH PGNIG Marcin Haber: THE HISTORIC COP21 AGREEMENT

Jacek Janiszewski, Chair of the Curriculum Committee of the Welconomy Forum: OUR WORK MAKES SENSE

GÓRAŻDŻE CEMENT - A SOCIALLY RESPONSIBLE ENTERPRISE

Maciej Proliński: THE GENIUS OF MOZART AT THE BEGINNING OF THE NEW YEAR!

Maciej Proliński: THE CASTLE WITHOUT THE PROFESSOR

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THE LAUREATES OF THE 14TH EQUESTRIAN GALA DECORATED AT KLICZKÓW CASTLE

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BCC GIVES AWARDS TO THE LEADERS

CULTURAL MONITOR

THE LAURELS AWARDED FOR THE 24TH TIME! AS USUAL ON MIODOWA STREET THE “POLISH ECOLOGY” BIOFOOD CLUSTER - ANOTHER KEY NATIONAL CLUSTER? Economic Monitor

Jan Sosna: SURE, WE CAN! Urszula Ciołeszyńska, founder of the Polish Network of Women Entrepreneurship Ambassadors: WOMEN IN LEADERSHIP Cover: Łukasz Kalinowski The President and General Manager of MetLife in Poland Photos on issue: www.shutterstock.com

Beata Drzazga, Founder, owner and president of BetaMed SA: HEALTH ABOVE ALL

CONTENTS

Tomasz Zieliński, DSc (Eng), President of the Polish Chamber of Chemical Industry (PIPC): POLISH CHEMICAL INDUSTRY DESERVES A POSITIVE IMAGE

POWER RING SYSTEMIC SOLUTIONS FOR LOW-CARBON ENERGY

Culture

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Food Industry

Energy Chemical

Events Industry

Powerful Businesswoman

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ZERO-ENERGY CONSTRUCTION A LOW-CARBON ECONOMY PRIORITY

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Publisher: Oficyna Wydawnicza RYNEK POLSKI Sp. z o.o. (RYNEK POLSKI Publishers Co. Ltd.) President: Krystyna Woźniak-Trzosek Vice - Presidents: Błażej Grabowski, Grażyna Jaskuła Address: ul. Elektoralna 13, 00-137 Warszawa, Poland Phone (+48 22) 620 31 42, 652 95 77 Fax (+48 22) 620 31 37 E-mail: info@polishmarket.com.pl Editor-in-Chief: Krystyna Woźniak-Trzosek Deputy Editor-in-Chief: Ewelina Janczylik-Foryś redakcja@polishmarket.com.pl Marcin Haber m.haber@polishmarket.com.pl

Writers/Editors: Maciej Proliński, Jan Sosna, Sylwia Wesołowska- Betkier, Grażyna Śleszyńska, Janusz Korzeń, Jerzy Bojanowicz, Janusz Turakiewicz,

DTP: Godai Studio www.godai.pl

Contributors: Agnieszka Turakiewicz

Oficyna Wydawnicza RYNEK POLSKI Sp. z o.o. Nr KRS 0000080385, Sąd Rejonowy dla m.st. Warszawy XII Wydział Gospodarczy Kapitał zakładowy 80.000,- zł. REGON 011915685, NIP 526-11-62-572

Graphic design: Godai Studio Agnieszka Andrzejczak -Charuba, Joanna Wiktoria Grabowska Sales: Phone (+48 22) 620 38 34, 654 95 77 Marketing Manager: Marianna Dąbkowska marianna.dabkowska@polishmarket.com.pl

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Published articles represent the authors’ personal views only. The Editor and Publisher disclaim any responsibility or liability for their contents. Unso-licited material will not be returned. The editors reserve the right to edit the material for length and content. The editors accept no responsibility what-soever for the content of advertising material. Reproduction of any material from this magazine requires prior written permission from the Publisher.

Editorial

Krystyna Woźniak-Trzosek Editor-in-Chief President of Rynek Polski Publishers Co. Ltd.

20 YEARS

CELEBRATING OF “POLISH MARKET”

hen you have to write an article about economic prospects in a year which has just begun your thoughts go in one obvious direction: forward. But if you are aware that it is not for the first time that you are doing so, that you have done so for 20 years, then the “magic of round numbers” inevitably pushes you into the world of reminiscence and reflection. Yes, Dear Readers, it will be 20 years this year since “Polish Market” started its activity. Looking from the perspective of many reputable international economic magazines, with which we would not even dare to compare ourselves, our age is not impressive. But from the perspective of initiatives on the Polish publishing market, which is merely 25 or so years old in its free-market form, 20 years is quite a long time. And it allows us to say that we were close to nearly all of the most important developments in Poland and in the Polish economy at the time of its free-market transition and maturing. There were many such developments. My travel to Washington for the ratification of Poland’s entry to NATO is the one I remember the best from these first years. It was a watershed moment not only for our country’s security, but also in terms of our mind-set. We joined a global system - a global commitment to act for peace in the world. Polish people became convinced of this in practice, during peace-keeping and stabilization missions in the Balkans, the Middle East, Iraq, Afghanistan and Africa. “Polish Market” was present there as well – for example, we made the effort and published an Arab-language issue of our magazine. But the result was even more far-reaching as the problem of security, including military security, became one of our regular topics. We also took part in another fundamental process – Poland’s entry to the European Union. Since the first steps on this road we were an advocate of the accession to the EU and promoted it both in Brussels and in the “old” EU countries. “Polish Market” was present in Copenhagen during the late-night negotiations on enlargement and at the signing of the treaty of accession in Athens. We always tried – as much as we possibly could - to be helpful to the Polish delegation in Brussels and we are grateful to this day that such outstanding Polish officials as Jerzy Buzek, Janusz Lewandowski and others became friends of our editorial board. Serving Poland’s nascent economic diplomacy was our mission since the beginning. We made a contribution to a long series of government-sponsored promotional events held under the slogan “Year of Poland” in Spain, Austria, France, Germany, Sweden, Russia, Israel and Britain. “Polish Market” was published in the French, German, Russian and Hebrew language. In 2010, time came for the Chinese language at the Shangai Expo. This was already quite natural – “Polish Market” promoted Poland at each of the universal expositions held since 1998 – in Lisbon, Hanover, Aichi, Saragossa, Shanghai and Milan, at international climate change conferences COP, and at the most reputable international fairs, like MIDEM, Grüne Woche, MIPIM and Vienna Real Estate. We accompanied Polish trade missions, bilateral and regional chambers of commerce, and the setting up and activity of Trade and Investment Promotion Sections at Polish diplomatic missions. Showing what is the most important for the Polish economy was the obvious thing to do. The second rule was not to bore the readers with preoccupation with a single subject. What can be more convincing than showing that Poland’s economic dynamism results and is based on achievements of Polish science, art and culture, and that while getting integrated with the Western community we preserve and contribute to it our cultural diversity and wealth. We enriched our publishing activity not only with new topics, but also our own promotional activity. Its symbol is the 13 galas of the Pearls of the Polish Economy held at Warsaw’s Royal Castle to promote the most efficient companies in Poland and 10 galas of “Polish Market’s” Honorary Pearl awards granted to the most outstanding personalities and institutions in the categories of economy, science, culture and for promoting patriotic and social values - people whose achievement, experience, prestige and personal virtues make them the ambassadors for the highest Polish values. We show the world what we think is the best in Poland. And we benefit from our right decision to base our success on providing good news.

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President

Meeting between the President of Poland and the President of the European Council

resident Andrzej Duda had a meeting in January with President of the European Council Donald Tusk. As President Duda mentioned during the joint press conference, the topics discussed included the issues of Poland in the context of the European Commission, the Brexit problem, migration, Nord Stream 2, and Ukraine. He pointed out that a change of power in a democratic state like Poland was nothing unusual, and the current lively political discussion only affirmed the freedom of speech. President Duda gave an assurance that Polish citizens respect EU institutions but they expect the respect to be mutual. He called for a more moderate discussion based on the actual situation in Poland, instead of information distorted by the media which had recently been repeated by politicians from various countries, and was far from being true. Referring to the so-called Brexit, President Duda declared that the United Kingdom’s leaving the EU would not be beneficial for Poland, and Europe should reach a compromise on the matter. He also added that Poland completely understood at least some of UK’s claims. Further, he emphasised that the UK’s exit from the EU would lead to a major crisis in the Community. As regards Nord Stream 2, President Duda said that Poland’s position on the issue remained unchanged. “We believe this project is unjustified and quite detrimental economically, has a political nature, and, in our view, does not comply with EU law, challenges Europe’s energy solidarity, and compromises the energy security of not only Poland, but also Ukraine, Slovakia and other countries,” President Duda said. He said Poland would make every effort necessary to present the general and legal arguments and Poland’s standpoint, especially at the European Commission level.

Poland’s position on the issue of refugees also remained unchanged, and, as President Duda confirmed, Poland upholds the obligations made by the previous government. President Duda also mentioned that the issues discussed with President Tusk included the problem of Ukraine. “We hope that the Minsk agreements will be implemented, although we are aware of the difficulty of the situation,” Andrzej Duda stated. He expressed the hope that the standpoint of European states, especially those participating in the Minsk format, would be steadfast.

Meetings within the preparations for the NATO Summit in Warsaw

ndrzej Duda and General Philip Breedlove, the Supreme Allied Commander Europe (SACEUR) met at the Supreme Headquarters Allied Powers Europe (SHAPE) in January. “Thank you for supporting the implementation of the plan for strengthening and protecting the eastern wing of NATO,” said President Duda during a conference following the meeting. He further emphasised that the NATO Summit in Warsaw must focus on the future and on foreseeing scenarios for security issues. According to Andrzej Duda, the prospects for developing both the North-East multinational corps and cooperation not only with NATO forces but also with the United States, our major ally, are very promising.

he main subject discussed by President Duda and NATO Secretary General Jens Stoltenberg was the NATO Summit to be held in July in Warsaw. During the joint conference the Polish President confirmed that its major objective is to strengthen the security of Central Europe and the southern wing of NATO. “These are areas in which tightening security is particularly vital, under the two basic assumptions of NATO’s operations: that NATO is a common organisation consisting of 28 countries jointly responsible for security, which is indivisible and NATO must be adequately prepared for threats and function as a living organism,” President Duda said. The Warsaw Summit needs to achieve three major goals: decisions must be reached on the security of Central Europe and the southern wing of NATO; it must look to the future and consider all possible scenarios;

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Andrzej Duda and General Philip Breedlove and arrive at decisions as to the strengthening of its defence and deterrence potential. The President argued that tightening security, and NATO’s adjusting to the new circumstances, mean an intensified presence of the Organisation in Central and Eastern Europe in terms of both infrastructure and armed forces. In the context of July’s summit, the Polish President is of the opinion that it should be made clear that NATO’s door is always open. As he stated, the participation of countries cooperating closely with NATO, that is Sweden, Finland, Australia, Jordan, Georgia, Moldova and Ukraine, needs to be considered.

Prime Minister

Debate at the European Parliament attended by PM Beata Szydło

n 19 January a debate was held at the European Parliament on the current situation in Poland. Our country was represented by Prime Minister Beata Szydło who set out to explain in person the changes taking place in Poland. She told the MEPs during the debate in Strasbourg: “I strongly believe that my explanation will give a new quality to information about Poland. I’m convinced that it is in dialogue and understanding that we will be building the future of the European Union together”. She also added: “Thank you for creating the conditions for – I hope – a matter-of-fact and good debate. It is very important to me to be able to dispel your doubts, if any, about the changes we are introducing in Poland.” The Prime Minister stated that in a democratic election Poles had decided that they wanted the changes proposed by the ruling party to be introduced. “We Europeans should build our community on the basis of trust, respect for diversity, and building, as part of our diversity, unity within the EU. We have taken on this challenge because the values of security and unity are dear to us. We know perfectly well that only a united Europe, strong with the power of its Member States, is able to deal with the challenges we face and about which all of us need to talk together,” the Prime Minister emphasised during her speech. “The election and our citizens’ choice have obliged us to introduce the good changes we have agreed with Poles, and we have been implementing them since our government was formed,” Beata Szydło declared. She added that the demands which are expected to create the foundations of Polish development had been fulfilled. “We are doing it in compliance with the law, respecting the constitution, laws and EU treaties,” Ms. Szydło said. “I can see no grounds for devoting so much time to Polish affairs, as there are many other important problems in Europe. I want to tell you about Poland, I want to clarify all doubts. I strongly believe that thanks to the good will we are encountering here, we will be able to leave this debate being convinced that Poland is a strong and well-developing member of the EU,” said the Polish Prime Minister.

Commenting on the doubts of certain commentators, Prime Minister Szydło emphasised that the Constitutional Court was doing well in Poland. She added that just a few hours earlier it had taken one of its decisions. “The changes we have introduced to the Constitutional Court comply with the standards applicable in Europe, and do not deviate from the regulations used by other EU countries,” the Prime Minister explained. Referring to the changes in public media, Beata Szydło said: “The changes to the public media introduced by the parliamentary majority do not violate the European standards applicable to public broadcasters in any respect. Furthermore, the changes we have initiated are an attempt to restore genuine political neutrality and impartiality to public media in Poland”. During the debate at the European Parliament the Prime Minister also commented on the speeches made by representatives of the respective political groups. “In all these speeches we could hear concern for the EU, its future and shape. Poland wants the EU to be stable and not shaken by crises. Poland does not trigger these crises, but wants to take an active part in pursuing the European policy,” PM Szydło explained.

Meeting between Prime Minister Beata Szydło and German Minister of Foreign Affairs Frank-Walter Steinmeier

he topics of the conversation between the Polish Prime Minister and the head of the German Ministry of Foreign Affairs on January 21 included EU issues, the organisation of the NATO Summit in Warsaw and Polish-German relations. The meeting between Prime Minister Szydło and Minister Steinmeier took place at the initiative of Germany. Minister of Foreign Affairs Witold Waszczykowski also talked to the head of the German diplomacy. Prime Minister Beata Szydło discussed with Minister Frank-Walter Steinmeier EU-related issues such as energy and security policy, including the preparation for this year’s NATO Summit in Warsaw. The meeting was also devoted to eastern policy and bilateral relations between both countries, in particular the 25th anniversary of the Treaty on Good Neighbourship and Friendly Cooperation. The situation of Poles living in Germany was also discussed. Prime Minister Szydło announced that on 12 February she would visit Berlin to meet Chancellor of Germany Angela Merkel.

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Our Guest

TO DO

BETTER! Prof. Piotr Gliński, deputy Prime Minister and Minister of Culture and National Heritage, talks to “Polish Market.”

The objective of every trade mission is to establish new contacts for Polish business. What kind of businesses do we want to promote in India? Is the government going to support every sector? I want to say one thing: although economic relations between our countries have been developing, with a doubledigit growth in our trade recorded last year, I assess them simply as too modest considering the size of our countries and the diversity and extent of potential areas of cooperation. So, we have a lot to do. Poland would very much like our trade and joint projects to reach a much bigger scale. This does not mean that I do not appreciate what we have achieved so far. But we can simply do better. What sectors and companies will be cooperating with Indian partners will be best assessed by those interested. The government is not a party to contracts, which does not mean that we are not trying to help by, for example, making efforts to remove some barriers and through promotion at governmental level. During our visit to India we will be promoting the food sector, for instance, in which we PM

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are a global power. I will be talking with Prime Minister Modi about making access to the Indian market easier for our exporters of fresh fruit. I also want to promote other sectors, like extraction technologies, waste recycling, ICT, food processing and the arms industry. At the inauguration of the Innovation Council, you said: “Without an innovative economy we have no chance in the global economy. We have to build our competitive advantages based on knowledge and innovative solutions.” You are right. And how does your remark relate to the forthcoming trade mission? Will we really show in India innovative solutions and new technologies, and attract Indian capital with them? Poland has a lot to offer to India in the sectors I have mentioned and in many others. I want not only to promote investment and encourage Indian partners to buy Polish goods and technologies, but also to talk about joint undertakings. The two countries have well-developed IT industries and are known in the world for having very good PM

Our Guest

and numerous specialists. Why not to combine our forces more often than so far? Another example is the mining industry and clean technologies. In these fields, Poland has many achievements to its credit. Some of the solutions are quite unique and can be offered to our partners. And what do we expect from the Indian side? What companies would be welcome in Poland? Indian companies have been present in Poland in many sectors for a long time. And we know that they are good investors. In coming years, Poland will be seeking investors creating new jobs, and bringing in their capital and technologies. This is what Poland has been doing so far, but we will give more preference to investors generating a higher value added in Poland and involving the longest possible chains of Polish business partners, not only suppliers, but also partners in developing new technologies. In other words, companies which want to put down deep roots in Poland and for a long time are particularly welcome. PM

And what are we going to offer to Indian companies? How are we going to attract Indian capital? Why should they invest in Poland? Poland is a country with increasingly good infrastructure, a very convenient location and well-qualified human resources. I think the fact that Poland is among the most stable and secure places for business is something not to be sniffed at in today’s world. Additionally, we propose many incentives to the investors who offer innovation and, in particular, promise a high value added to be generated in our country. We invite them to our special economic zones, technology parks and enterprise incubators. PM

Will you be seeking cooperation in the field of culture during the trade mission to India as deputy prime minister and minister of culture? Looking from a global and long-term perspective, culture is of overriding importance for nations. Poland and the Polish people have survived thanks to their culture and religion, which largely corresponds with the historical experience of the Indian people. I would like us to undertake broader cooperation in the area of our common heritage and shared history. We remember that during the Second World War Maharaja of Nawanagar Jam Saheb Digvijaysinhji offered shelter to nearly 1,000 Polish children released from Soviet camps. Among those who have marked their presence in India is Polish artist Stefan Norblin. Polish public television is now working on a film about the life of Wanda Dynowska (Uma Devi), who started her work to bring Poland and India closer to each other as early as before the Second World War. Poland is famous in the world for its excellent specialists in conservation and restoration of cultural heritage. We will always be eager to offer our assistance in saving India’s tangible cultural heritage and to discuss ways of preserving intangible heritage, to which more and more attention is paid. India does not have to worry about its popularity in Poland, where Indian cuisine is one of the most fashionable this season and Bollywood film showings electrify social

POLAND IS A COUNTRY WITH INCREASINGLY GOOD INFRASTRUCTURE, A VERY CONVENIENT LOCATION AND WELLQUALIFIED HUMAN RESOURCES. I THINK THE FACT THAT POLAND IS AMONG THE MOST STABLE AND SECURE PLACES FOR BUSINESS IS SOMETHING NOT TO BE SNIFFED AT IN TODAY’S WORLD.

networking portals. In contrast, the task of promoting Polish culture in the Indian subcontinent is very difficult. However, I am convinced that Poland’s over 1,000-year-old culture is rich enough to contain elements able to appeal to anyone in any place in the world. Let us note that this is already happening, largely thanks to private initiatives. Poland, as a film location, and Polish specialists are present in the world’s biggest film industry. A Polish city, Warsaw, has finally played itself in “Kick,” a Bollywood film which has been shot here. We will continue to encourage cooperation in the film industry. As a result, we hope for increased interest in our country as a tourist destination. We ceaselessly invite tourists to Poland and encourage them to get familiar with its cultural and natural heritage. We also hope for the exchange of students and scholarship holders. I have visited India several times in connection with my trips to the Himalayas. But I saw the whole country. My latest visit to India was to Kashmir a few years ago to attend an annual congress of the Sociological Society. Former president of the Indian Sociological Society Ishwar Modi is my friend. I hope to meet him during my forthcoming • visit. 2/2016 polish market

Our Guest

INDIA IS A COUNTRY OF UNLIMITED OPPORTUNITIES FOR POLISH EXPORTERS AND INVESTORS Mateusz Morawiecki, deputy Prime Minister and Minister of Economic Develompent

n coming years, India will be ranking in top places in the global league table of the world’s economies. The Polish government, putting special emphasis on innovation and exports promotion, cannot ignore a market with such a huge potential. We have noted with satisfaction that the state of Polish-Indian relations is very good. We should cultivate them and give them a strategic dimension based on partnership and solid cooperation. I would like to stress that the main task of the public administration sector is to identify each other’s needs and economic policy directions. Their implementation will be necessary for the further economic development of our countries. Making Indian business and government bodies familiar with the export potential of Polish companies will be translated into higher interest from Indian firms in looking for trade partners in Poland. I hope that, thanks to these joint activities, cooperation between our countries will be exemplary and will bring notable benefits to both economies. The rapid expansion of the Indian economy, its large potential and the growing importance of India on world markets allow us to project that there is a great potential for boosting our trade. In my view, trade between Poland and India, although it has more than tripled in the past decade, still does not measure up to the potential and ambitions of the two economies. We export products of the machine and electrical industry, metallurgical industry, chemical and light industry. We are aware that Polish companies can expect more. I mean especially the manufacturing, machine-building, ship-building and defence sectors. The attractive locations for foreign investment in India also include the energy, construction, pharmaceutical and service

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sectors. Mining, including deliveries of mining machines and equipment, on-shore oil and gas exploration coupled with the delivery of equipment and software, may be an important topic for our bilateral discussions. It is also worthwhile to talk about the transfer of technology in the area of environmental protection, the export of medical equipment and cooperation in such rapidly expanding sectors as construction, the hotel industry, transport services and telecommunications. Let us remember that India is a country of unlimited opportunities for Polish exporters and investors, a country looking for new economic partners and open to cooperation with Poland. We should exploit this opportunity and we want to do so. Besides bilaterial cooperation, our shared experience on the markets of third countries, including markets in South Asia and on other continents, may be extremely valuable. Poland and India need partnership based on solid business and cultural relations. We are on the right track to build them in the area of economic cooperation and political dialogue. While we are happy that our country is developing, we are aware of further challenges. The world is gathering momentum and the processes in which we are taking part require commitment and mutual cooperation. I am convinced that thanks to our efforts the favourable trends in the development of the Polish economy will continue and that brand Poland will be recognizable across the world. India is undoubtedly a distant and difficult market. But this market is huge and enormously promising and friendly to Poland. I hope that politics will successfully pave the way for business so that we continue to improve our positive balance in trade between our countries. •

Our Guest

THE POLAND-INDIA

ECONOMIC RELATIONS POLISH TRADE WITH INDIA (IN USD MLN) The state the Polish-Indian of economic relations is very good. India is for Poland one of the most important strategic partners in the global arena. The two countries benefit from extensive economic cooperation and political dialogue, as well as solid economic relations. However, despite the steadily increasing mutual trade, they do not fully exploit the potential of their economies. India continues to offer Polish enterprises untapped opportunities in terms of export and investment.

THE COMMODITY STRUCTURE OF TRADE WITH INDIA In recent years, there have been positive changes in the commodity structure of Polish exports to India. The exports has seen a steadily increasing share of relatively highly processed goods, i.e. electromechanical products. In 2014, these accounted for 41.6% of Polish exports to India compared to approx. 35% in 2010. In 2010-2014, the exports of electromechanical products increased nearly 2-fold, to USD 230 million, with the following goods gaining most in importance: • machinery and mechanical appliances and their parts, whose sales increased more than 2-fold (up to approx. USD 120 million), and the share rose by 4.3%, to 22.1%; electrical machinery and equipment and their parts, whose exports increased 3-fold, to nearly USD 80 million, and the share soared from less than 8% to 14.3% in 2014. The second place in terms of export share fell to metallurgical products (25.9% in 2014), whose exports in 2010-2014 grew by 50%, to USD 143 million. The dominant role was that of iron, cast iron and steel, although their exports grew relatively slowly (by 5.3%). On the other •

hand, sales clearly accelerated of tools, utensils, knives, spoons, forks, cutlery (6.7-fold), copper and copper products (2.8-fold) and aluminum and aluminum products (3-fold). The sales of chemical products increased in 2010-2014 by 75%, to nearly USD 110 million (20% of the export share, third place). This was the result of a dynamic increase in exports of plastics and plastic products (more than 3-fold) and rubber and rubber products (2.7-fold).

INVESTMENT AND CAPITAL COOPERATION India is one of the most important economic partners of Poland among non-European countries. Poland is one of the EU leaders in terms of attracting Indian capital. At the same time, we are the largest recipient of Indian FDI in Central and Eastern Europe. According to NBP estimates, the value of capital invested by Indian companies in Poland amounted to USD 45,4 million by the end of 2014. It should be noted, however, that its cumulative value hits new highs every year, with a 7-fold increase relative to 2004. Poland is also among the EU countries attracting the most of Indian capital, as well as the largest recipient of Indian FDI in Central and Eastern Europe. In 2014 alone Indian companies invested in Poland a total of USD 2.7 million. According to GUS data, by the end of 2014, there were 122 companies with Indian capital operating in Poland, most of which (99) employing up to 9 people. NBP statistics regarding the Indian capital investments in Poland fall short of ArcelorMittal, which, due to it being headquartered in Luxembourg, is considered as Luxemburgish capital. Arcelor-Mittal Poland is the biggest steel producer in Poland, with a headcount of over 11,000 people working in six locations in the provinces of Silesia, Małopolska and Opolskie. In 2004-2013, the company invested in Poland approx. PLN 4.8 billion.

POSSIBLE AREAS OF FURTHER BILATERAL COOPERATION A relatively rapid pace of growth of the Indian economy, its great economic potential, as well as its growing importance in the world economy allow to anticipate an increase both in Poland’s activity on the Indian market and in India’s interest in Poland. According to the Ministry of Economic Development, new possibilities are opening up for cooperation in traditional sectors where Polish companies have already an established reputation, e.g.: • mining (underground and open-cast) – construction of complete plants (including mines and coal preparation plants), supply of machinery and mining equipment, as well as services and works for the Indian coal mining; • energy – supply of services and assemblies, components and spare parts for repairs and overhauls (improving energy efficiency) of power plants built in India in the 1970s and 1980s, among others, by Elektrim and Megadex; • armaments – cooperative partnership, technology transfer, development of R&D cooperation. New opportunities have emerged in areas such as: • on-shore exploration of oil and natural gas, including supply of equipment, instrumentation and software, and conducting drillings (research, exploitation and directional drillings) • pharmaceuticals and medical equipment – due to expanding Indian health care, both state and private, with a market of over one billion potential patients and consumers of medical and hygiene products and medicines; • food processing machinery and equipment; • installations and technology transfer in the field of environmental protection; R&D cooperation. • 2/2016 polish market

Photo: Rafał Nowak

Our Guest

“WE WANT TO INCREASE THE SHARE OF POLISH CAPITAL IN INVESTMENT” Radosław Domagalski-Łabędzki, deputy Minister of Economic Development

oland is entering a special time when simple mechanisms driving its economic growth are slowly becoming exhausted. Relatively low labour costs, or foreign capital, are no longer an optimal model for building our competitive advantages. We want to raise the efficiency and productivity of the Polish economy. We also want to increase the share of Polish capital in investment. The road to success, to avoiding the middle-income trap, is quite obvious to us. This is why we have to base our economic growth on innovation, research and development, and on enhancing the competitiveness of Polish businesses, especially exporters. Work is now underway at the Ministry of Economic Development to introduce a new model of support for exports and enterprise. We believe that it will have a positive influence on the ability of Polish business to compete on foreign markets. The new solutions involve centralizing the support system. An agency for supporting exports, promotion and investment will be established. It will be a single institution managing from the central level most operational programmes dedicated to exporters. The agency will also take part in financing Polish exports. Today, responsibility for operational programmes is shared by several ministries and several agencies. We hope that a single central institution will enable us to save a significant amount of money on administrative costs and spend it on supporting exports. It will also enable us to pursue a coherent policy in the area of exports coordination. I personally take part in this work and am directly responsible for it. I believe that the whole model has to operate in a single organizational chain. This is why the agency will be closely cooperating

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with executive bodies. I mean Polish missions abroad, like for example Trade and Investment Promotion Sections. We are holding consultations with other ministries, especially the Ministry of Foreign Affairs, on adopting an optimal model for the functioning of our foreign missions. We want to orient them at providing quality rather than quantity in services to Polish businesses. We also plan to strengthen the Trade and Investment Promotion Sections in terms of their expertise and staff. It is unfortunate that in recent time the Polish state has limited its institutional presence on many important foreign markets. We want to at least stop this trend, or reverse it, which would be the best thing. This is why we will be increasing our institutional presence on new markets through Trade and Investment Promotion Sections. I am convinced that Polish entrepreneurs are faring excellently on European Union and Western European markets. And this is where an overwhelming majority of Polish exports go. But today we want to open opportunities for the development of Polish firms on other markets. It is obvious that the centre of gravity in both politics and economy is gradually shifting to the Far East. Taking this fact into consideration, we want to make Polish exporters interested in expansion onto developing markets in Asia and Africa. In this connection, we are going to create operational programmes which will be supporting Polish entrepreneurs in their expansion on the Chinese market. We will also develop special enterprise hubs in China and one of the ASEAN countries. Our sectoral promotional programmes contain strategies for supporting the 12 sectors that are indicated by them. We want the strategies to be coherent with our institutional presence on target markets. We will be strengthening the Go China and Go

Africa programmes. We plan to introduce a new model to these programmes and add a few new programmes, like Go Iran and Go India. We regard these markets as very promising. Cooperation with regional units in Poland will be a very important part of the new system of support for Polish businesses. This is actually the basis for the proper functioning of the whole model because public administration does not have such local units of its own. We do not aspire to set up our regional agencies. The organizations, foundations and associations which already operate locally will do that excellently. We want to base our cooperation on very close exchange of information and communication with regional units. Trade associations and organizations of entrepreneurs will also be playing an important role. Thanks to such close cooperation under a single, integrated and coherent model, entrepreneurs will have much easier access to public administration and support instruments, which they will be able to use more effectively. Today, one of the fundamental problems is insufficient knowledge about the support instruments. Some entrepreneurs are not aware of the existence of support programmes. We will be changing this state of affairs through cooperation with regional units. As part of the work conducted at the Ministry of Economic Development, we will be focusing on supporting Polish exports and enhancing the competitiveness of Polish firms. At present, their contribution to Polish exports is below 50%. This has to change. Companies which increase their exports enhance their competitiveness. I strongly believe that by combining this with support for innovation we will be able to achieve our goals. •

Finance

THE NEW PRESIDENT OF THE WARSAW STOCK EXCHANGE (WSE) Prof. Małgorzata Zaleska has been appointed as president of the Warsaw Stock Exchange.

“

We have to keep working so that the capital market is seen by Poles as a place for long-term investments, so that securities are a good passed by inheritance from generation to generation, like in the US,” declared Małgorzata Zaleska, the newly appointed president of the Warsaw Stock Exchange. “Confidence in the financial market is extremely important, but confidence in the capital market is important, too. If both institutional and individual investors perceive the capital market as safe and likely to bring them profits in the long term, it will be beneficial not only from the point of view of these investors, but also from the point of view of the economy as a whole,” she added. Prof. Małgorzata Zaleska is a graduate of the Warsaw School of Economics, she also completed the Study Course in Economic Policy and the Study Course in Economic Policy for Central and Eastern European Countries, Japan, as well as the Postgraduate Studies in Administration at the Faculty of Law

and Administration, Warsaw University. In 1998-2003, she was an advisor to the President of the Bank Guarantee Fund, and in 20002002 a member of the Board of the Warsaw Stock Exchange. In 2005-2006, she was an advisor to the Minister of Education and Sports. In 2007-2009, she was president of the Bank Guarantee Fund, and in 2008-2009 a board member of the International Association of Deposit Insurers (IADI) and the chairperson of the Study Group of the European Forum of Deposit Insurers (EFDI). On 3 August 2009, she was appointed by President of Poland Lech Kaczyński as board member of the National Bank of Poland (NBP). Since 2007, she has sat on the presidium and since 2011 has served as vice-president of the Committee on Financial Sciences of the Polish Academy of Sciences; since 2008 she has also been the editor-in-chief of “Finanse”, the Committee’s journal. Member of the Programme Council of “Gazeta Bankowa”. In 2000, she became head of the Postgraduate Study Course for Bank Analysts, and in 2002 head of the Chair of Institutional Regulation and Banking Analysis, Department of Banking, Warsaw School of Economics. Małgorzata Zaleska has authored over 320 scholarly and popular science publications, primarily on the financial markets safety net, on the organisation and regulation of banking market supervision, on the deposit guarantee system, as well as on the identification of the bankruptcy risk of banks.Since 2011, Prof. Zaleska has been a columnist of “Polish Market”.

THE HISTORY OF THE WARSAW STOCK EXCHANGE In 2016, the Warsaw Stock Exchange will be celebrating its 25th anniversary. The Memorandum of Association of the Warsaw Stock Exchange was signed by the Minister of Ownership Transformations and the Minister of Finance on behalf of the State Treasury on 12 April 1991. The first trading session was held as early as on 16 April 1991, with only five stocks listed. Seven brokerages took part in the trading, and there were 112 buy and sell orders, with a turnover of PLN 1,990 (USD 2,000). In 2007, the Warsaw Stock Exchange won “Polish Market’s” Honorary Pearl in the economy category. The Jury decided to reward WSE’s 15-year existence and the fact it was ranked among the most dynamically developing stock markets in Europe. The statuette was received by WSE co-founders Jacek Socha and Wiesław Rozłucki. The Warsaw Stock Exchange is the biggest securities exchange in Central and Eastern Europe. WSE operates a regulated market of shares and derivative instruments and the alternative stock market NewConnect for growing companies. WSE is developing Catalyst, a market for issuers of corporate and municipal bonds, as well as commodity markets. Since 9 November 2010, WSE has been a public company listed on the Warsaw Stock Ex• change. 2/2016 polish market

Finance

WE ARE

PROUD

OF OUR

HISTORY,

HOWEVER WE KEEP LOOKING INTO THE

FUTURE

Łukasz Kalinowski, President and Managing Director of MetLife in Poland, talks to Ewelina Janczylik-Foryś about the secret of customers’ trust in the company , and explains the issue of rebranding and the use of Snoopy in MetLife’s advertising campaigns. 14 polish market

Finance

we are returning to the roots and the forms of insurance we offered in the 1990s. I mean life and health insurance. Customers expect us to talk with them about family financial protection.

MetLife has been operating in Poland for 25 years. More than 5 million customers have trusted you. What sets you apart from the competition? An important thing that sets us apart is our long presence on the Polish market. We have the advantage of being the first company to start selling life insurance in Poland after the change of its economic system. Our operating permit issued by the Ministry of Finance in 1990 is marked with number 1. We have been operating in a free-market economy since the beginning. With our history and global experience, we managed to gain the trust of our customers at the early stages of our activity. We have never had the need to launch new products suddenly, in an incautious way and not quite beneficial for the customers. We are learning all the time as the market develops and we create it at the same time. Many of the solutions which are now present in life insurance were launched on the market by our company. At the beginning of our activity, we also defined anew the insurance terms and insurance language in Poland. They were then used by other companies entering the market. We started with products offered by insurance agents to individuals, but with time we expanded our activity to include employee insurance schemes, insurance sold at banks (Bancassurance) and insurance sold directly by phone, without the involvement of insurance agents. Thanks to diversifying our business, we are not dependent on market changes. PM

You said that predictability was an important factor in your operations. How can you explain this in the context of your recent rebranding – changing the company’s name from MetLife Amplico to MetLife? Don’t you think that such moves have a negative impact on the perception of the company by customers? We started operations under the name Amplico and it was a very strong brand, regarded as a synonym for an insurance company. The rebranding was due to changes in ownership. In 2010, we became part of the MetLife group. Today – under the MetLife brand – we are very proud of our history. Our strength does not stem only from where we were 25 years ago, but also from where we are now and where we will be in the future. The new brand offered us an opportunity to present quite new values, which are associated with it. PM

Insurance is associated with something very serious, our savings and health. But you have decided to use Snoopy, a cartoon character, for promotional purposes. How do the customers respond to this? Snoopy is an Ambassador for MetLife brand. We conduct surveys, which indicate that the customers like Peanuts characters. The connection between Snoopy and insurance is very simple. The foundation of our activity is protecting families against risk so as to financially secure the future of one’s nearest and dearest – a spouse, partner and children – in case of unforeseen events. Home is a natural environment for talking about insurance and selling it. PM

And it is where children usually appear during the meeting. A Snoopy plush toy, or another small gift for a kid, warms up the relationship between our agent and a customer. Economists believe that the financial sector will continue to develop and that there will be demand for more and more types of new financial services. Prof. Elżbieta Mączyńska, president of the Polish Economic Society (PTE), said: “This is well visible in the insurance sector. We now insure ourselves against new risks which until recently we did not insure ourselves against. An example is insurance against the risk of losing a job.” Are you also prepared for launching new services to meet the requirements of the customers? Yes, we are. But, from my point of view, little is changing compared to the 1990s when it comes to customers’ needs. Paradoxically, in those times agents talked with the customers much more often about risks and financial security in case of adverse events. The market is now returning to this, although it has been driven for years by products of purely savings and investment nature – usually shortterm ones and involving higher risk. Meanwhile, insurance products are created for the long term. For example, insurance schemes for children are planned for around 20 years – since the moment of birth until the beginning of university education. The same is the case with retirement savings. With such a long time horizon, the form of saving PM

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Finance

METLIFE IN THE WORLD – whether it be equities or bonds – does not really matter, apart from a small difference in yield. What really matters is that one should save regularly. The roles of various financial institutions are becoming separated again. Insurers will always have savings products in their line, but will never become banks or investment fund companies. We have contracts where investment funds are involved as supporting elements, but these are always products where we expect a long payback period. In my opinion, in insurance one should avoid investment risks, one should not expect quick gains. Products related to health care are also developing. Though, to be frank, Poland still does not have a well-developed form of health insurance. There are various approaches and attempts, but there is still much to do within private health insurance. Meanwhile, there will be more and more needs in this area. Although the pension system in Poland has been affected by many changes recently, it still does not protect enough our pension. This gives room for the activity of insurance companies and other financial institutions which would be offering these additional pensions. At present, when granting mortgage loans, for instance, banks offer insurance against the risk of losing a job, or life insurance. Do you work with banks in this area? The internal data from the Polish Insurance Association (PIU) – data designated for the needs of the insurance market and our own assessments – show that we are one of the leaders of this activity. One can even say that since the beginning of the 2000s we have popularized this kind of services on the Polish market. Due to regulatory changes, this market started to look a little different in 2015. As a result, long-term alliances between banks and insurers are changing their form. PM

What is the year 2016 expected to bring? What development directions are planned for the company? Many regulatory changes came into force at the beginning of the year. This is something new on the insurance market. Until recently binding recommendations applied to the banking sector while recommendations for the insurance sector were treated as merely hints. Although the year has only begun, we hope that sales will grow and that 2016 will be a good year for the Polish insurance market. As I said, we are returning to the roots and the forms of insurance we offered in the 1990s. I mean life and health insurance. Customers expect us to talk with them about family financial protection. We are also aware of the totally new needs of our customers aged over 55. These are people who have spent most of their working lives in a free market system, managed to acquire some wealth, know the financial segment quite well and are looking for ways to secure their future. This year, we want to focus to a large extent on this group of customers. • PM

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MetLife, Inc., through its subsidiaries and affiliates (MetLife), is one of the biggest insurance companies in the world. It has been in operation since 1868 and is a leading global provider of life insurance, annuities, employee benefit schemes and asset management services. MetLife serves almost 100 million customers and operates in nearly 50 countries, having a leading position on the markets of the United States, Japan, Latin America, Asia, Europe and the Middle East. In 2015, “Fortune” magazine awarded MetLife with the title of the “World’s Most Admired Company” among insurers.

For more information see: www.metlife.com.

METLIFE IN POLAND MetLife TUnŻiR SA, part of MetLife, Inc., was set up in 1990 as the first Polish life insurance company with a foreign stake (Operating Permit no. 1 issued by the Minister of Finance). The company offers a wide range of individual and group insurance: life insurance, accident and health insurance, and savings products with insurance capital funds. In its daily activity MetLife is guided by the values which put customers in the centre allowing them to influence the company’s service quality and product range, so as to respond to their needs even better. The company is guided in its daily work by the principle of honesty and reliability. Openness to novelty and applying the best practices is what helps the company pursue its goals. MetLife staff are constantly improving their skills, looking for new and better solutions, including those which meet expectations of the customers, make it easier for them to work with the company, and help in building lasting relations based on mutual trust. MetLife has won top places in the financial efficiency league tables which assess business criteria reflecting companies’ growth and efficiency. MetLife has received the following awards: Eagle of the Republic in 2001 and 2002 Golden Laurel in 2005 Pearls of Polish Economy 2003 - 2015 In 2014 and 2015, the company was awarded the Pearl of the Polish Economy as the best financial institution. In 2015, MetLife received the title of Customers Friendly Company for the second time in succession. The emblem is awarded on the basis of findings of an independent survey, which examines customer satisfaction, satisfaction with cooperation, service quality and the probability of recommendation. The awards prove MetLife confidence from its customers and motivate the company to always ensure the highest standards.

For more information see: www.metlife.pl.

Economy

NEW FINANCIAL OPPORTUNITIES FOR MICRO AND SMALL ENTERPRISES On 17 December the Banker’s Club hosted a seminar titled “An Additional Billion for Polish Micro and Small Enterprises?”, organised by the Polish Bank Association and the National Focal Point for Financial Instruments of EU Framework Programmes. The aim of the meeting was to present the new funds available to Polish entrepreneurs and intermediary institutions dealing with their distribution. Marcin Haber

pening the meeting, Jerzy Kwieciński, PhD, deputy Mi n ister of Econom ic Development, presented a vision of the Ministry of Economic Development for the coming years and its opinion on repayable instruments: “We are a new ministry and perhaps not so high-profile yet, but that is because we have to reorganise so that the structure be adequate to challenges for the coming years. Doubtless, the economy and development will be absolute priorities, as pointed out by the Prime Minister in her policy statement. This shows the importance of the ministry’s role in the next few years. Today’s meeting fits very well with this scenario. The use of financial instruments in Poland has so far been rather symbolic, with a little more than 1%. I think that the level of our external funding from bodies such as the European Investment Bank is not satisfactory. I am very happy with today’s meeting, because it shows that our financial institutions are starting to reach for these instruments and I hope that this is just the beginning of what is to come in the near future. I would like to explicitly state that the development of repayable instruments will be the government’s priority in the coming years. We want to strengthen these instruments by using not only EU funds but also financial institutions already at play. Until now, this was done mainly at a national level. We would also like to build up the potential of regions. This is primarily because we want to make

the living standard of Poles and the level of the country’s development as high as possible. The government’s priority for the coming years are small and medium-sized enterprises. The instruments we are talking about today are addressed precisely to them. One may ask whether it is really needed. The fact is that it is much more difficult for SMEs to get access to external funding than for large companies. We would like to increasingly replace the existing support for SMEs, namely grants, with repayable instruments. This change is very important, because the period 2014-2020 is most probably the last time we get such a huge amount of EU funding. I am glad that there is a broad range of these instruments: leasing, lending and banking.” After the introduction and outlining of the government’s plans for the coming years by Minister Kwieciński, the floor was taken by representatives of financial institutions who deal with the distribution of the EU funds among micro and small enterprises. Andrzej Krzemiński, president of Raiffeisen Leasing Poland SA, Poland’s largest leasing agent, pointed out that his company proved to be a reliable partner for EU institutions and customers. “From the beginning of our activity in the area of EU funds, that is since 2002, we have financed, through lending instruments, about 27,000 contracts totalling about PLN 3 billion. Given that we now have 47,000 active clients and the company’s total assets are nearly PLN 6 billion, it makes up a considerable part of our activities. Acquiring EU

funds and converting them into market use is within our core business.” Michał Knitter, director of Product Department at Idea Bank SA, the first Polish bank to serve as an agent in two framework programmes under the new EU financial plan, said: “We are a bank that perfectly blends into what micro and small entrepreneurs need today. Our bank is managed by entrepreneurs. We are looking for solutions appropriate to them and particularly innovative services. In the last few months, we managed to develop several new solutions. The first is an innovative platform for finance management, the second - very important is mobile CDMs that customers can order to come and collect their day’s earnings, and the third, which enjoys enormous popularity, is IdeaHubs - bank branches providing room facilities where customers can meet with their business partners, work, or use a conference room. This is a free-of-charge service for the customers of our bank. Idea Bank offers a full range of products for entrepreneurs, ranging from loans, to the instruments based on EU funding.” Arkadiusz Lewicki, director of the National Contact Point for Financial Instruments of EU Framework Programmes, encouraged the micro and small entrepreneurs to benefit from the new financial opportunities that are opening up. For further information, those interested are welcome to contact the National Focal Point, which will readily assist them, he assured. • 12/2015 polish market

Innovation

THE MONETARY POLICY COUNCIL IN

2010-2015 Photo: NBP

Prof. Marek Belka, President of the National Bank of Poland (NBP), President of the Monetary Policy Council (RPP)

y presentation below was discussed at the meeting of the outgoing Monetary Policy Council, which was held to sum up its 6-year term of office in the context of the overall economic situation in Poland and - more broadly - in Europe and in the world. I think it is going to be an extremely useful exercise. The Polish monetary policy was pursued in line with the inflation target of 2.5%, with a tolerance interval of ± 1 percentage point, and under a floating exchange rate regime, with possible currency interventions whenever deemed necessary to ensure the macroeconomic and financial stability of the country. Drawing conclusions from the experience of recent years, the RPP pursued its inflation targeting strategy in a flexible way, allowing deviations of actual inflation from target if caused by temporary factors. The RPP also pointed to the need to include macro-prudential measures among the catalogue of state financial stability instruments. As initial forecasts suggested that high inflation could become entrenched, the RPP tightened its monetary policy by raising interest rates by 125 percentage points in 2010-2011. A strong decline in commodity prices in 2014-2015 led to a sharp drop in inflation all over the world, and in Poland, despite the steady growth of GDP, even to deflation. At the same time, the economic growth continued at 3-3.5% in the last 7 quarters. Happily, deflation proved to have no negative impact on the financial situation of enterprises, with gross sales unharmed and robust real wage growth at 3.5-4% in nominal terms adjusted by deflation. The pace of wage growth is at historically high levels. The studies by the RPP show that, owing to lower fuel prices, households are able to save on expenditure nearly PLN1 billion per quarter. Despite deflation, enterprises increase investment and households do not limit the consumption of durable goods. It is a sort of a polemic with the traditional anti-deflation narrative. The findings are that deflation does fuel deflationary expectations. As deflationary expectations are not building up, the monetary policy easing cycle has come to an end and the interest rate stands at 150 basis points.

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When it comes to global GDP growth, the recent years have shown that in major developed economies the GDP did not return to pre-crisis levels. There is some discussion as to why it is so: is it a consequence of secular stagnation or deleveraging? One may speculate as to the cause, but the fact is that the phenomenon holds. The low rate of economic growth was one of the reasons for the decline of the natural interest rate. The highly expansionary monetary policy of central banks also encouraged the inflow of capital to emerging economies. And what was the value of the zloty against the euro over that time? In the last few years, the exchange rate was fluid and varied. Still, in the worldwide context, it gave the impression of an exceptional stability. The RPP enjoys high social trust, enabling it a flexible implementation of the monetary policy target. The inflation target was a kind of an anchor both for the public expectations as to inflation and for the RPP’s policy. In 2010-2015, the inflation rate averaged 1.8%, a result which, we found, almost corresponds with that achieved during the RPP’s previous term. As a matter of fact, the average inflation rate in the previous 6-year term was 2.8%, but given the strong fluctuations faced on the commodity markets over that period, it is the core inflation that does indicate where we really were in terms of inflation, and it appears that we were exactly in the same place with 1.5% then and 1.4% now. For me, what makes for the success of the monetary policy - that implemented not only by the outgoing RPP but over the last couple of years - it is that the rapid weakening of the zloty in 2008-2009, preceded by its sharp strengthening, did not cause any destabilisation in terms of social behaviour. People simply considered it a fantastic opportunity to realise capital gains and exchanged foreign currencies into zlotys, which helped bring zloty back to normal levels. I think that in a country with such a record of inflation and dollarisation as Poland, de-dollarisation is the ultimate, even though a little outdated, measure of the monetary poli• cy success.

Statement from the conference held at the NBP main office on 15 December 2015.

Food Industry

NATIONAL BANK OF POLAND SITUATION IN Q4 2015 AND FORECASTS FOR Q1 2016 In the fourth quarter of 2015, the condition of the business sector remained good, with signs of its stabilization. Forecasts for the first quarter of 2016 are mixed. On the one hand, those surveyed expect a rise in demand and plan to continue to raise employment and wages. On the other hand, they do not expect their situation to improve. Heightened uncertainty about future business conditions, associated among others with changes to fiscal policy announced by the government, could have a negative influence on the mood of those surveyed. These worries had an impact on investment plans. Sales conditions in the business sector remain good with a prospect for further improvement in the first quarter of 2016. The demand barrier is still relatively low while capacity utilization is relatively high, though a bit lower than in the previous quarter. At the same time, inventories in the retail and manufacturing sectors increased, which may mean that in December sales were slightly below expectations. But there was a marked improvement in projections for demand and new orders in the first quarter, including in the exporters’ group. Consequently, production plans are more optimistic. There is a conviction that favourable demand conditions will be maintained in the future. This may be due to plans for fiscal expansion, which will drive consumer demand. Problems with finding buyers for products are now less serious than problems resulting from growing market competition. The fight to retain customers means the need to cut prices. 13% of those surveyed reduced their prices in the fourth quarter of 2015. The percentage was slightly higher than in the third quarter, but was not the highest on record. And although thanks to lower prices of raw materials and semi-products businesses continue to benefit from deflation, opinions about the impact of drops in producer prices are now much more negative than a year before. It is worth stressing that this change in opinions was noted not only among manufacturers but also among transport companies, despite the fact that they benefit the most from the significant drops in fuel prices. A year earlier, their assessment of

the consequences of deflation had been very favourable. But considering that the transport companies reported that their situation improved in the fourth quarter, it seems that their opinion on the consequences of deflation reflects “reluctance” to reduce prices for their services rather than real problems in the sector. Price projections for the first quarter of 2016 still do not indicate any marked increase in PPI inflation. The surveyed businesses expect that deflation will stay at a level similar to that noted in the fourth quarter of 2015. The CPI is expected to edge up. At the same time, one can see growing uncertainty about price levels in the future. The expected strengthening of demand will be conducive to a further rise in employment. The number of new jobs to be created in the first quarter remained at the level noted in the previous quarter and was much above average. Manufacturing companies, especially those offering investment goods, and exporters will be particularly interested in finding new employees. The service sector also plans to continue to rapidly increase employment, despite noticeably less optimistic projections in the sector. The deterioration may be due to fears over tax changes. The steady rise in employment noted since the end of 2013 means it is now increasingly difficult to fill newly created jobs. These difficulties are turning into a development barrier, which is coupled with growing, though still weak, upward pressure on wages. As a result, in the first quarter we should expect a further increase in wages. Only 41% of businesses do not plan to raise wages in the next two years. The decisions rarely result from the company management’s perception that the wages are already high or the fact that they have been raised recently. In many cases, the absence of plans to raise wages may be due to a low wage-rise pressure from the employees or a bad condition of the company. One should stress that the wage increases planned for the first quarter will still be relatively small. The uncertainty about the future shape of fiscal policy had an adverse impact on companies’ investment plans. An especially worrying signal is that there are now more instances of companies planning to give up

on projects already started. In the past, such behaviour was associated with the outbreak of a crisis or recession. At present, the situation of companies is good and there is nothing to indicate that it will deteriorate in the near future. However, some investment projects may be postponed. This is indicated by the planned level of spending on development. It remains undiminished for the full year 2016, but the percentage of newly planned projects is noticeably smaller for the first quarter of the year. The decrease in the percentage of businesses planning new investment is particularly visible in the group of the largest companies and in the retail sector where uncertainty over the future is now the highest. Demand for credit remains moderate among businesses. Most of the investment projects planned for the first quarter will be financed from sources other than bank loans. The companies’ own resources will be the most popular source of funding. It is worth noting that other external sources of funding, like loans for subsidiaries, including loans from foreign parent companies, or operating and financial lease, are no “competition” for bank loans. Rather, they complement each other because the recent data suggest that the companies which use operational and financial lease also tend to use bank loans more often than other firms. Funding acquired on the capital market is even less important from the perspective of an average firm, especially a small one. This source is used by a few per cent of businesses, mainly the largest companies. Until November 2015, there was doubledigit growth in corporate bank deposits. And at the end of the year, the surveyed firms reported an improvement in their liquidity and ability to pay their trade creditors. Having big financial resources, companies did not have a sufficient incentive to take new bank loans if their investment plans were not very ambitious. As previously, loans are mainly taken by the companies that plan large-scale investment projects, for example to expand their manufacturing potential. However, the number of such companies is still relatively small. Most of the investment projects planned involve replacements and repairs of fixed assets or the modernization of production processes. • 2/2016 polish market

Economy

ECONOMICS IS BEAUTIFUL? “ Prof. Elżbieta Mączyńska, President of the Polish Economic Society (PTE)

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Ekonomia jest piękna?” (Economics Is Beautiful?) is the title of a book recently published by the Scholar publishing house. It is a collection of 38 articles dedicated to Prof. Jerzy Wilkin to mark the 45th anniversary of his scientific work. The title of the book and the question it contains provoke reflection, being at the same time an excellent reference to theses which run through Jerzy Wilkin’s numerous publications. The question formulated in the book’s title puzzles not only economists, but also other specialists. First of all, it refers to Jerzy Wilkin’s paper entitled “Ekonomia wolności i ekonomia zniewolenia” (Economics of Freedom and Economics of Enslavement) presented at the 9th Congress of Polish Economists. When does economy further human freedom and when does it constrain it? (www.pte.pl/kongres/referaty/Wilkin%20Jerzy/Wilkin%20Jerzy%20-%20EKONOMIA%20WOLNOŚCI%20I%20EKONOMIA%20ZNIEWOLENIA.pdf 2013). Wilkin wonders: “Why Has Economics Lost Its Soul?” The lost soul of economics is reflected among others in its chrematistic deformations. Equating economics with chrematistics, the science of earning money, means that any activity is permissible and desirable if it leads to gains, profit and money. This is manifested by the tendency to explain and shape economic life, and also social life, exclusively through the prism of profitability and financial benefit, with no regard for social consequences. This is so despite the fact that economics is by definition a social science, a science dealing with relations between economy and social life. The chrematistic approach to economics and translating it into economic practice results in the paradoxical phenomenon of the enslaved consumer on a free market - a consumer enslaved by persistent advertisements and the asymmetric power of large corporations in shaping the structure and quality of what is supplied on the market. Consequently, Jerzy Wilkin says that “The free market can enslave people: take freedom away from private individuals. On the other hand, the absence of a free market can also lead to enslavement. Economists like to talk about the free market, but are less eager to talk about free people.” This enslavement and the dilemmas associated with it are reflected in the increasingly widespread phenomenon of product adulteration. One of those who have pointed to this problem is American sociologist Richard Sennett. This

is ironically called in literature as the gold plating of products, or antifeatures, meaning the practice of intentionally limiting the efficiency and durability of products of daily use to create demand for new products. The development of systemic solutions oriented at distributing responsibility is conducive to this practice. In his book with the meaningful title “Antifragile: How to Live in a World We Don’t Understand?”, Nassim Taleb presents an unconventional approach to assessing these negative phenomena. The author argues that economy and society lose their natural resistance because of the introduction of numerous tools and methods of insurance against risk, but mainly because the burden of risk is offloaded onto other entities. Taleb illustrates his arguments with numerous convincing examples and references to history. He reminds us, for example, that in antiquity building control offices did not exist, but the builders of aqueducts were required to sleep under them for some time after completing the project. And the aqueducts function excellently to this day. The enslavement of consumers, which is a distinctive feature of the present time, is considered by the authors of “Economics Is Beautiful?” from the point of view of their scientific disciplines. The authors analyse the consequences of such deformations for social and economic development, and make an attempt to identify the possible ways to counteract the abnormalities. One of the most dangerous abnormalities is the expansion of the methodology used in economics onto other social sciences. As Jerzy Wilkin observes: “Economists have quite insolently recognized that they hold research tools enabling them to explain the functioning of the social world in its various aspects much better than other social scientists.” Jerzy Wilkin calls this direction of change “a new economic imperialism,” which manifests itself in economists’ forcing on others “values and dreams” and patterns of not only economic life, but also social relations subordinated to commercialism and consumerism. But Wilkin argues that the situation does not have and should not have to be like that. And economics can be beautiful. This opinion also finds confirmation in a book published recently by the Polish Economic Society as part of its Nobel Prize in Economics series. It is Robert Shiller’s book “Finance and the Good Society.” I would like to encourage you to read all the publications presented above. •

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Finance

“WE REWARD SAFE DRIVERS” TELEMATICS IN INSURANCE

here has been much talk recently that the tools and methods used so far to assess risk and calculate motor insurance premiums are becoming insufficient. This is why Benefia Ubezpieczenia has decided to bet on telematics. On December 31, 2015, Benefia and Yanosik launched a joint project called “We Reward Safe Drivers.” Yanosik.pl is now the most popular navigation and instant messaging system for drivers. It not only allows them to reach their destination and avoid traffic jams, but also warns the drivers of speed limit enforcement devices on the road, dangers, traffic enforcement by the Road Transport Inspectorate and unmarked patrols. The system registers a vehicle’s passage by measuring its speed on road sections and is able to assess whether or not the driver has violated traffic regulations. The ambition of the designers and owner of the application is to change the behaviour of drivers so that they follow the rules of ecodriving, that is driving more economically

Registration in the Yanosik.pl navigation system

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Information about the ability to scan the vehicle registration card

and smoothly. Eco-driving significantly contributes to road safety. Benefia Ubezpieczenia, the member of TU Compensa SA VIG dedicated to developing modern channels for the distribution of insurance, has decided to exploit this niche and reach conscious customers who want to check their driving style. By launching in conjunction with Yanosik.pl the application “We Reward Safe Drivers,” Benefia wants to use the obtained data for risk assessment and valuation. The pay-as-you-drive rule is the first practical application of a telematic solution for the retail customer. At the same time, it is Poland’s first mobile sales system: a unique and innovative process of motor insurance distribution. A very important thing is that the system not only generates a dedicated price offer, but also enables the customer to pay for the insurance policy directly through the online application. Since the launch of the application on December 31, 2015 the system has registered tens of thousands of users who have made

Waiting for the offer to be presented

thousands of calculations. It is worth mentioning that the number of people who use the Yanosik.pl navigation system has already reached 1.5 million a month and the number is steadily growing. The pilot project consists in awarding points to drivers for safe driving. Additional discounts for the purchase of insurance may soon appear, for example for passing at least one of the 2,000 places marked on the navigation map as dangerous without violating traffic regulations. Further bonuses are available for driving without violating the speed limit along at least one speed measurement section. This shows that winning successive discounts is not only fun, but first of all an incentive for the drivers to drive safely. The drivers receive further discounts for the number of kilometres covered. The longer the distance, the higher the discount. •

The special offer is available until March 31, 2016.

Variants of insurance for a selected vehicle

Information about the opportunity to receive discounts

Energy

TWORZYMY POLSKĘ CYFROWĄ

31 marca 2016

Hotel Westin w Warszawie

kontakt@mmcpolska.pl, tel. +48 22 379 29 45

www.polskainfrastruktura.pl 2/2016 polish market

Innovation

GOVERNMENT SET UP THE INNOVATION COUNCIL

or several years innovation has been the word repeated dozens of times in various contexts. All entrepreneurs have become aware of the importance of new technologies, realising that competitiveness in both domestic and foreign markets is also conditional on investments in innovation. For this reason, Prime Minister Beata Szydło has decided to establish the Innovation Council.

Photos: Ministry of Economic Development

Mateusz Morawiecki, Deputy Prime Minister and Minister of Economic Development

The Innovation Council The Innovation Council comprises Mateusz Morawiecki, Deputy Prime Minister and Minister of Economic Development (President of the Council), Prof. Piotr Gliński, Deputy Prime Minister and Minister of Culture and National Heritage, Jarosław Gowin, Deputy Prime Minister and Minister of Science and Higher Education, Anna Streżyńska, Minister of Digital Affairs, and Dawid Jackiewicz, Minister of Treasury. It seeks to promote solutions supporting entrepreneurs in the search for new products and processes, and to engage Polish capital, thus contributing to the competitive edge of the national economy. An amount exceeding EUR 16billion will be allocated for this purpose.

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The Innovation Council is to be the major inter-ministry coordinator of innovation policies implemented by the Government, forming an intrinsic part of State administration. On launching the Council’s work, Mateusz Morawiecki said: “We are now at a turning point in the history of our economy. We need to free ourselves from the non-innovation trap and limited pace of development. To paraphrase the words of Marshal Józef Piłsudski, one may say that the Polish economy will either be innovative or mediocre. Innovation is by every measure essential.” Cooperation between the scientific and business circles is essential for developing innovative solutions. “Truly innovative economies are based on excellent cooperation between business, science and the State. We believe that the State has a major role to play,” added Mr. Morawiecki. This fully justifies the presence of Jarosław Gowin, Deputy Prime Minister and Minister of Science and Higher Education, on the Council. Mr. Gowin stressed that the Polish economy needed to shift from local to global markets. “To this end, it is necessary to substantially increase the innovative potential of the Polish economy and science. We intend to export modern technologies, and Poland is now facing huge opportunities in this field. This year the Ministry of Economic Development and the Ministry of Science and Higher Education, jointly with the National Centre for Research and Development, are planning to spend an impressive sum of around PLN 8billion on the development of new technologies,” he stressed. The Ministry of Digital Affairs can hardly be omitted when discussing the topic of innovation. “We may speak about innovation in the context of outstanding business and scientific ventures. However, it is also significant in the everyday lives of all citizens. For this reason, public data which are now scattered and not easily accessible must be catalogued and rendered available to a wide group of users, including business and scientific entities, and NGOs, so that they can be reused when needed,” said Anna Streżyńska, Minister of Digital Affairs, during the conference. The first challenge to be undertaken by the Council involves coordinating pro-innovation policy instruments, in order to establish new

“neural connections” between strategic programmes and financial instruments that are currently not inter-related. Then, a system of incentives addressed to entrepreneurs and representatives of the scientific world will be developed to foster an increase in expenditures on research and development. These efforts will be coupled with amendments to publicprocurement policy to envisage attractive solutions, products and processes, created on the basis of the newly established instruments. The initial outcomes of the Council’s work will be released in a hundred days’ time. All measures planned by the Council will be consulted on in detail with entrepreneurs, representatives of scientific circles and localgovernment entities, i.e. the Polish vehicles of the modern economy.

START IN POLAND Given that innovations originate not only in large enterprises, one of the Council’s objectives will be to support start-ups. Major revolutions very often begin in small companies. StartInPoland is a programme aimed at exploiting the financial potential and development-oriented needs of State-owned companies, as well as large and medium-sized enterprises with Polish capital. Its goal is to respond to the emerging technological or process-related challenges, and to support creative infant companies. Dawid Jackiewicz, Minister of Treasury, noted that State-owned companies are expressing a huge demand for creative ideas that could improve their functioning. “We will attempt at identifying actual problems and needs, and present them to young scientists and entrepreneurs,” said Mr. Jackiewicz. The need for better coordination of activities undertaken in the innovation domain was also stressed by Jerzy Kwieciński, Deputy Minister of Economic Development. “The imitation era is about to end, and the time for innovation is approaching. We need to coordinate the activities of institutions focused on developing the innovativeness of the Polish economy, at both the national and regional levels. Our intention is to support startups and to provide the conditions enabling them to cooperate with larger enterprises,” said Mr. Kwieciński. •

IN SEARCH OF A NEW INNOVATION STRATEGY

Innovation

Prof. Ryszard Pregiel, Polish Chamber of Commerce for High Technology

oday’s unprecedented pace of technological change means that innovation has become the main driving force behind contemporary industry. The innovation performance of a national economy determines its competitiveness and place on the global market. If we want to meet the biggest challenges faced by contemporary societies, such as fighting poverty and ensuring social cohesion, enhancing energy efficiency and using resources economically, protecting the environment and preventing climate change our actions should be truly innovative. All kinds of innovative activity, like organizational innovation, financial innovation and marketing innovation, play an essential role in today’s economy. Results achieved in each of these spheres determine the pace of economic development. However, broadly understood technological innovation – successes of engineering sciences, new products and services, and improved production processes – is the most important factor contributing to progress. It determines Poland’s competitiveness and place on the map of the global economy. In 2007-2013, Polish entrepreneurs and scientists used widely money available under the Operational Programme Innovative Economy financed from the European Union’s Cohesion Fund. Nearly 16,000 businesses and over 12,000 researchers took part in investment and research and development projects funded under this programme. Almost 1,400 new technologies were put into practice and 4,700 innovative products were developed and applied in various industries and services thanks to this financial support. Among these products is Europe’s first electric bus, a highly economical business and family jet, an innovative device for the early detection of breast cancer, and a breakthrough device for establishing contact with people in a coma, which attracted huge interest from the whole medical world. One may cite many more examples. Despite the unquestionable improvement, technological innovation in Polish industry can still hardly be called satisfactory. Generally

speaking, the model of development in Polish industry has so far been more imitative than innovative. The technological gap between Poland and the most developed economies, especially in the area of high technologies, is significant. In league tables illustrating the innovation performance of European Union countries, Poland is still ranked in distant places. There are many reasons behind this state of affairs. One of them is the low contribution of businesses, both state-owned and private ones, to financing research and development work. You need money to innovate. Meanwhile, according to the Innovation Union Scoreboard data published in 2015, Polish firms’ expenditure on R&D activity accounts for only 25% of the EU average. As a comparison, the figure is 150% for Denmark, 176% for Sweden and 77% for the Czech Republic, Poland’s neighbour. Despite some improvement in this respect, due to activities taken recently by the National Centre for Research and Development (NCBR), we have few important public-private research and implementation programmes. Access to venture capital is too difficult. Poland’s participation in international high-tech projects is still small. The main objective of Poland’s economic policy after the change of the political and economic system in the 1990s was to stimulate enterprise. More than 3 million new businesses were set up in Poland by 2015, excluding those which in the meantime discontinued their activity for various reasons. Considering that this number does not include farms, whose percentage is very high in our country relative to other EU members, Poland has undoubtedly become an enterprising nation in recent decades. Among the facts proving this is the condition of the Polish economy during the economic crisis of 2007-2008. In recent decades, Poland has also become a country of well-educated people. The percentage of Polish people with a degree aged 30-34 almost tripled, rising from 14.4% in 2002 to 41% in 2015. The European Commission projects that the EU average for this age group will not reach this level before 2020. We also rank

fourth in Europe, after Britain, Germany and France, in terms of the number of university and college students. It is beyond doubt that Poland has achieved a sufficiently high level of social and economic development to change its strategy: from quantitative and imitative one to qualitative and innovative. A major part of Polish businesses have already adopted or are inclined to adopt an offensive technological strategy, with the goal to put into production new original technological ideas based on the knowledge and ingenuity of their employees. This requires flexibility, courage and readiness to take a risk. However, it is the only road leading onto foreign markets. Changes in the approach of Polish businesses to technological development have to be coupled with changes in instruments supporting them. Started last year, the new Smart Growth programme for 2014-2020, financed from the European Regional Development Fund, is not a simple successor of its predecessors. Its intention is to concentrate support on such areas of technological specialization where Poland has a chance to become well established on the global market. To this end, relying among others on the findings of a technological foresight developed under the guidance of the Polish Chamber of Commerce for High Technology entitled “InSight 2030,” the Ministry of Economic Development has compiled a list of 19 fields of national smart specialization. The list comprises five areas of science and technology, in particular those dealing with innovative technologies and industrial processes. Businesses and researchers starting projects involving national smart specialization will be offered much wider access to funding than those starting other projects. Apart from support under the Smart Growth programme, intensive work is underway on other instruments designed to encourage businesses to adopt an offensive strategy of technological innovation. This creates a chance for Poland to occupy an important place in the international division of labour and for a lasting position for the Polish high-tech industry on the glob• al market. 2/2016 polish market

Innovation

INSTITUTE OF AVIATION AN EXAMPLE OF GOOD COOPERATION BETWEEN SCIENCE AND INDUSTRY

The Institute of Aviation has opened a Gas Turbine Centre. Modern by both European and global standards, it enables research on industrial gas turbines and engines for the aviation sector thanks to its unique set of laboratories and the world’s biggest vacuum chamber. The official opening of the Centre, with the participation of ministry officials, representatives of the most important Polish universities of technology and foreign guests, was held on January 20, 2016. Marcin Haber

he most modern Gas Turbine Centre was opened on the premises of the Institute of Aviation. With its labs and workstations for engineers, it will be a unique place by global standards for the production and service of gas turbines for the aviation and energy sector. “It is a special day for the Institute. The opening of the Gas Turbine Centre is an important step in developing our competencies and addressing the needs of the market on which we want to be present. Thanks to the Centre, we are beginning work in a new laboratory and design area. This place shows that Polish firms are able to meet the needs of even the biggest international customers. This Centre is an important development because it enables us to concentrate in a single place on the problem area we have worked on for several years now. It is also an example of good cooperation between universities and research institutes. Without a sympathetic response and confidence from the Military University of Technology and the Warsaw University

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of Technology this project would not have achieved such high standards,” Rafał Kajka, deputy director of the Institute of Aviation and head of the Gas Turbine Centre, said at the opening ceremony. The construction of the Gas Turbine Centre is a result of cooperation of the Institute of Aviation with the Military University of Technology and the Warsaw University of Technology. The project was partially funded from the European Regional Development Fund under the Operational Programme Innovative Economy. The Institute of Aviation was responsible for building the most modern facility to house innovative design and research space where 260 Polish engineers will ultimately be employed. General Electric, the strategic partner of the Institute of Aviation, is also interested in this investment project. GE representatives took part in the opening ceremony. “I am very happy because this really is a great value,” said Prof. Jan Szmidt, rector of the Warsaw University of Technology. “Today, there are not many fields in Poland where we

appreciate each other. We appreciate General Electric as a world-class company, which cooperates with the Institute. We appreciate the Institute of Aviation, which has combined business activity with competent staff, which is the most important. We, university teachers, create this competence. The Warsaw University of Technology occupies a special place in this respect. I am talking about it not because I am its rector, but because I draw such conclusions from the voices coming from the market. Everyone is waiting and asking me when I will deliver another thousand of graduates immediately ready to start work. This is not that easy. Educating means having teaching staff and the modern laboratories which enable educating the students in such a way that they do not have to learn again after they have started work in business. Such an opportunity is created by cooperation with the Institute of Aviation, which has bet on modernity. The university authorities try to ensure that the partners with which we

Innovation work to ensure practical training for students are of the world’s top class.” Magdalena Nizik, managing director at General Electric Company Polska, which is a partner of the Institute of Aviation and one of the first customers which will be using services of the Gas Turbine Centre, said: “It is one of the more important moments for me because I can see another investment project of our key partner in Poland – the Institute of Aviation. I have spent most of my career at GE working very close to the Institute and close to centres of Polish research –the Military University of Technology and the Warsaw University of Technology. This makes me even more pleased to see further steps in the development of our partners.” Magdalena Nizik also emphasized the long history of cooperation between GE and the Institute of Aviation in designing new solutions for the aviation, energy and extraction industries. The construction of the Gas Turbine Centre has been completed in record time – less than a year after the decision was taken to start the investment project at the Institute of Aviation. The total cost of the project exceeded PLN100 million. The three-storey building is composed of a repair workshop where assembly, soldering, welding and grinding work will be conducted, an innovation workshop, which is a modern prototyping lab equipped with 3D printers and other tools, an assembly shop with two double-gantry cranes, each with a lifting capacity of 50 tonnes, where a gas turbine will be placed, and design and service offices for engineers. The Gas Turbine Centre can already boast of having the world’s biggest vacuum chamber. It is 12 metres long, 5.5 metres wide and has a total weight of 177 tonnes. It will be used for blade off testing on the biggest gas turbine engines. By the end of the year the Gas Turbine Centre will also be provided with a gas turbine to serve as a simulator for testing a wide range of equipment and developing weldingbased repair. Those present at the opening ceremony could see a visualization of the turbine. The speakers emphasized the importance of the new investment project for developing and strengthening the competence of Polish scientific research units and for international cooperation. The Gas Turbine Centre has a chance to become a major player on the research services market as it will be able to offer more comprehensive services and deal with complex research problems, meeting the needs and expectations of both the aviation and energy sector. “The Institute of Aviation is a flagship institute of the Ministry of Economic Development. In this connection, we are very interested in maintaining the institute’s development

Cutting of the ribbon: (from left) Prof. Krzysztof Jan Kurzydłowski, former director of the National Centre for Research and Development, Jerzy Majchrzak, director of the Department of Innovation and Industry at the Ministry of Economic Development, Prof. Jan Schmidt, rector of the Warsaw University of Technology, Prof. Witold Wiśniowski, director of the Aviation Institute.

The world’s biggest vacuum chamber at the Gas Turbine Centre. It is the only chamber able to accommodate the world’s biggest aircraft engine, which has been entered into the Guinness Book of Records.

model, which is based on a very close relationship with industry and universities because this is the biggest value added of the project,” said Jerzy Majchrzak, director of the Department of Innovation and Industry at the Ministry of Economic Development. “The Gas Turbine Centre is a beautiful example of cooperation between such organizations as GE, the Military University of Technology and Warsaw University of Technology. It is an example for other institutes and businesses, showing that this is feasible in Poland and that we can create very high competencies and develop. We would very much like this project to become an industrial success. There are great needs on the energy market and this unit may provide very competent services of high standards. This is something we greatly require in Poland today: high-tech of the highest world class. Present at the opening ceremony were: Jerzy Majchrzak, director of the Department of Innovation and Industry at the Ministry of

Economic Development, Prof. Krzysztof Jan Kurzydłowski, former director of the National Centre for Research and Development, Alicja Adamczak, PhD, president of the Polish Patent Office, Prof. Jan Szmidt, rector of the Warsaw University of Technology, Magdalena Nizik, managing director at General Electric Company Polska, John Lammas, Gas Power Systems Vice President, GE Officer, Mike Leary, General Manager, Gas Turbine Engineering General Electric, Steve Hartman, Power Services Vice President, GE Officer, Prof. Witold Wiśniowski, director of the Institute of Aviation, Prof. Roman Domański, head of the Scientific Council at the Institute of Aviation, Prof. Aleksander Olejnik of the Military University of Technology, Prof. Jerzy Banaszek, dean of the Faculty of Power and Aeronautical Engineering Warsaw University of Technology, Alicja Adamczak, PhD, president of the Polish Patent Office and Rafał Kajka, DSc. Eng, deputy director of the Institute of Aviation. • 2/2016 polish market

Innovation

“POLISH NOBEL PRIZES”

Jerzy Bojanowicz

he FNP prizes are awarded for special achievements and discoveries, which push the boundaries of research and open new research prospects, making an outstanding contribution to our country’s progress and ensure an important place for Poland in taking up the most ambitious challenges of today’s world. Candidates for the prizes are proposed by outstanding scientists and scholars at a personal invitation of the Foundation’s Executive Board and Council. The prizes are granted to researchers who work in Poland or outside Poland on condition that their scientific discovery has been confirmed by publications affiliated with a Polish research unit, and to researchers dealing with problems related to Poland. The prizes are awarded in four categories: chemical and materials sciences; mathematical, physical and engineering sciences; the humanities and social sciences; and life sciences and earth sciences. “After thoroughly examining the proposed candidatures and opinions about them submitted by experts and reviewers, the Award Committee reached a unanimous conclusion that none of the candidatures proposed in 2015 [in the life and earth sciences category – ed.] fully met the key criteria specified by the Rules of the FNP Prize. Therefore, the Committee decided not to grant a prize in the field of life and earth sciences,” said Prof. Andrzej Jerzmanowski, chairman of the FNP Council, at the award ceremony. He was presenting the FNP Prizes together with Prof. Maciej Żylicz, president of the FNP Executive Board. The prizes went to: Prof. Stanisław Penczek of the Centre for Molecular and Macromolecular Studies of the Polish Academy of Sciences in Łódź in the field of chemical and materials sciences for developing a ring-opening

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The Foundation for Polish Science (FNP) presented its annual prizes in a ceremony held at Warsaw’s Royal Castle on December 2, 2015. Active since 1991, the Foundation is the biggest source of research funding outside of the national budget. The prizes were awarded for the 24th time. They are dubbed “Polish Nobel Prizes” because of their prestige and value - they enjoy a reputation as Poland’s most important scientific awards and are worth as much as PLN200,000. polymerization theory and its use for the synthesis of biodegradable polymers; Prof. Kazimierz Rzążewski of the Centre for Theoretical Physics of the Polish Academy of Sciences in Warsaw in the field of mathematical, physical and engineering sciences for the discovery of the phenomenon of magnetostriction in ultra-cold gases with dipole forces; and Prof. Jerzy Jedlicki of the Tadeusz Manteuffel Institute of History of the Polish Academy of Sciences in Warsaw in the field of the humanities and social sciences for his fundamental studies on the intelligentsia as a social stratum and its role in modernization processes in Central and Eastern Europe. The group of the FNP prize winners is already composed of 87 persons, including this year’s laureates. Prof. Kazimierz Rzążewski is one of the most influential European scientists in the field of quantum optics and ultra-cold atomic gases. Prof. Jerzy Jedlicki received the FNP prize in recognition of the work which crowns his long studies on the history of the intelligentsia: a three-volume publication entitled “Dzieje inteligencji polskiej do roku 1918,” Institute of History PAN – Neriton, 2008 (published in English as “A History of Polish Intelligentsia,” Frankfurt 2014). Prof. Jedlicki is the editor of the work, which is composed of the following volumes: “Narodziny inteligencji 17501831” by Maciej Janowski (“The Birth of the Intelligentsia”), “Błędne koło 1832-1864” by Jerzy Jedlicki (“The Vicious Circle”) and “Inteligencja na rozdrożach” by Magdalena Micińska (“At the Crossroads”). The award ceremony was attended by numerous representatives of national authorities, research institutions, local governments, non-governmental organizations and the research community as well as family members, friends and associates of the laureates.

Congratulations were extended to the laureates by Stanisław Karczewski, speaker of the Senate, Prof. Aleksander Bobko, deputy minister of science and higher education, Minister Wojciech Kolarski of the Polish President’s Office on behalf of the President, Prof. Wojciech Fałkowski, deputy minister of defence, Magdalena Gawin, PhD, deputy minister of culture and national heritage, and Prof. Michał Karoński, chairman of the Council of the National Science Centre, and Prof. Jerzy Woźnicki, chairman of the General Council for Science and Higher Education. A letter of congratulations was sent to the laureates by Marek Kuchciński, speaker of the lower chamber of the Polish parliament. Prof. Jedlicki remarked at the ceremony that “the intelligentsia was and continues to be a critical class, a class which maintains the conviction that it may be better and more just. And this critical feature should be retained as a legacy passed from generation to generation.” Prof. Maciej Żylicz, president of the FNP Executive Board, emphasized the contribution that this year’s laureates had made to society. “It is worthwhile to appreciate the activity of the laureates not only in their narrow research fields, but also as people who have made a contribution to our daily life.” He mentioned in this context Prof. Rzążewski, who is not only a quantum physics expert, but also an author of a book on elections entitled “Każdy głos się liczy” (“Every Vote Counts”). The master of ceremonies was Grażyna Torbicka. A cello concert by a duo of young highly gifted musicians developing their talent under the care of the Polish Children’s Fund – 13-year-old Gustaw Bafeltowski and 16-yearold Wojciech Bafeltowski – added splendour to the award ceremony. •

Innovation

THE WORLD HEARING CENTER

INNOVATIVELY, INTERDISCIPLINARILY, GLOBALLY

Prof. Henryk Skarżyński, Director of the World Hearing Centre and the Institute of Physiology and Pathology of Hearing

he World Hearing Center is working and prospering perfectly in Kajetany near Warsaw. It is a unique institution on an international scale. It is a place of scientific research, innovative diagnostic and treatment methods. The Center provides comprehensive care for patients with congenital and acquired hearing, speech, voice and balance disorders. There are over 18 500 medical procedures and 200 000 outpatients consultations performed here yearly and about 70 hearing improving surgeries daily. The center is equipped with a unique medical devices, educational, scientific and specialist materials, enabling the training of specialists from around

the world in several medical fields, clinical engineering, physics, acoustics, biocybernetics, speech therapy, education and psychology of hearing impaired people. This allows for setting new directions of research in those areas. Only in the first year, the Center hosted 6 international scientific courses and symposia. As a result, over 180 young doctors from all over the world were trained. Moreover, 20 000 doctors participated in online sessions of live surgery broadcasts. In less than two years, the World Hearing Center proved that it fully deserves to be described as a modern institution. Here, the innovation means primarily a contemporary application of telemedicine and the development of numerous research programs of diagnostics, treatment and rehabilitation of hearing, voice, speech and balance organs on an unprecedented international scale. This innovation allows for project performance in the field of the brain mechanisms, auditory functions and higher cognitive processes such as the language, attention and emotions. It is the only center in the world where research in cortex functions in patients with partial deafness is conducted. – The team of the World Hearing Center has implemented a number of innovative solutions in science, education, and clinical activities. For scientific purposes, we created unique research units, equipped with an advanced and hi-tech devices. The Center attracts expert teams. This is a new and well-equipped workplace for both experienced professionals and young ambitious

people. – said Professor Skarżyński. – The main area of our research is partial deafness. The implementation of research and scientific works is supported with an IT system of processing sensory screening tests. The system is based on an open standard data e-exchange and other database systems. – added Professor Skarżyński. The innovation of this institution also lies in the organization of work and investing in the development of science. We implement numerous projects, pioneering scientific and clinical programs, the results of which set new standards in therapeutic medicine. As one of the firsts in the world, Polish patients have access to the latest and most advanced medical technology. – Since the opening of the World Hearing Center in Kajetany, I have initiated three pioneering surgical programs of implantation of new types of hearing implants, i.e. CODACS, BONEBRIDGE and BAHA 4 ATTRACT SYSTEM. Patients understand and appreciate it. This is why they choose us. They come from all over Poland, and also from abroad. – said Professor Skarżyński. The World Hearing Center is a world institution not only in name. It is the place where the highest number of surgeries to improve hearing is performed daily. – Asked whether we want to be the only one such institution in the world, I say NO. The progress in medicine and effective cooperation in science is possible only with a network of such centers. – said Professor Henryk Skarżyński. • 2/2016 polish market

Innovation

Prof. Florian Ryszka, MD, tells Maciej Proliński about priorities of the Pharmaceutical Research and Production Plant Biochefa.

INNOVATION IN TRANSPLANTATION

REVOLUTION IN MEDICINE IS COMING In today’s public debate, there is more and more talk that the medical sector may be a showpiece of innovation for the Polish economy in the world and that the potential of the most gifted scientists and best managed research institutions should be exploited and developed because their success may benefit the whole economy. Are we exaggerating, perhaps? Scientific research is a source and driver of innovation in any country’s economy. Innovation, including in medicine, is key to the development of the nation as a whole. Poland has several leading excellent medical centres which definitely are of world-class standard. In recent years, our sector has been helped in its constant development by considerable funding from the European Union. And I think it is worth reminding Europe about the contribution that our scientists have made to the development of science in the world. But first of all, we should firmly declare our intention to actively take part in the development of science PM

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in the 21st century. It is worth showing that, thanks to the investment made in the past several years in research, apparatus and staff, Polish science is becoming increasingly competitive, also as an attractive place for conducting scientific activity. So we are not exaggerating. However, I want to make it clear that Polish businesses have to undertake more intensive activity to develop innovation, for example in medicine, so that new drugs and new technologies created on the basis of Polish inventions broaden patients’ access to modern therapies, help save human lives and generate income for the Polish economy. If we want to live better and in good health we need to have access to innovative medicine able to meet the constantly emerging new challenges of our civilization. This is a requirement of the present day. PM

Science has certainly made great progress over the recent decades and changed many issues associated with our life. Medicine, for instance, has developed enormously. But

do you agree that in this respect “the closer we come to the horizon, the more distant it becomes”? Man cannot master everything. If, for example, I have managed to achieve something in transplant medicine it is probably because I am not a transplant surgeon and can look at this branch of medicine from the sidelines. I think we have made a really huge progress in the past decade or so in the transplantation of such organs as the heart, liver, pancreas, kidneys and lungs. Owing to the standardization of techniques for organ harvesting and transplantation, the use of new immunosuppressant agents and the development of increasingly effective solutions for organ perfusion and preservation, transplantation has become in many countries a routine method of treatment for patients with organ failure. Another factor, without which all these hard data would have been absent, is the increasingly high number of donors, which means positive changes in public awareness, including Polish people’s awareness.

Innovation In your view, what are the characteristics of Polish biotechnology today? Polish biotechnology is characterised by advanced education in the area of life and engineering sciences at both the master’s and doctoral level. But I think that, owing to the shortage of experienced practitioners with ties to business, the practical aspect is still not strong enough in our education and research, and the transfer of innovative technologies from universities to industry is still insufficient. PM

Where did the idea come from for you to set up your own business, an idea you put into practice almost 25 years ago? The firm has the words “science” and “production” in its very name. Indeed. I always tried to work with business. For 20 years until 2004 I was head of Katedra Farmacji Stosowanej i Technologii Leków (Applied Pharmacy and Drug Technology Department) at the Medical University of Silesia in Katowice. If we look at the activity of our universities, we can see that their professors, doctoral and master’s students represent a huge potential, which however has remained largely untapped for years by small and medium enterprises. It is now mainly public officials and increasingly often lawyers who deal with evaluating research. I do not understand that. Let me give you a revealing example. When I worked at the university I submitted 17 patent applications and received only 1 patent. Since I set up my own business I have submitted 10 patent applications and have already received eight patents, including two international ones. To sum up, the Medical University of Silesia was for sure a valuable “deposit of knowledge” thanks to the creative work of its professors and other staff. But if I implemented a project neither me nor the university got anything more out of it. I registered Biochefa in 1991. Its core was made up of research workers of the Applied Pharmacy Department at the Medical University of Silesia, including my former master’s student Barbara Małgorzata Dolińska who over these 24 years has gone successively through all scientific career stages and now holds a postdoctoral degree and the title of professor of pharmacy. Biochefa has for years been a place where scientific research is to meet, and does meet, with practice. This is the direction I have preferred since I started managing this institution. I mean applied scientific research designed to benefit patients as soon as possible. Our mission is to provide our clients with safe products of high quality and with a guaranteed effect. Biochefa has taken part in the implementation of 13 projects funded by grants from the Ministry of Science and Higher Education, PM

including research into xenotransplantation, solutions for the perfusion and preservation of organs for transplantation, new applications of hormones in medicine and veterinary medicine, and preparations for the prevention and treatment of cancer, circulatory disorders, obesity and osteoporosis. Our firm, which has been the only biotechnology firm in the region of Silesia throughout this time, is developing dynamically. It has a licence for the production of sterile veterinary preparations. Biochefa is also involved in advanced research on the isolation of protein hormones and the mechanism of their action, and develops prescriptions for solutions. One of its biggest successes is developing and putting into production 16 new technologies. Let me add that Biochefa offers a wide range of mineral calcium supplements in the form of tablets and healthful tinctures made of natural ingredients. The production of all these dietary supplements is based on the latest technologies and scientific achievements, and complies with strict quality standards, which guarantees the products’ safety and efficacy. “The more complex the world becomes, the more difficult it is to complete something without the cooperation with others,” Alexander Fleming once said to stress the importance of the environment in which a scientist works for the research process. And what is the “innovation environment” of Biochefa? An important element in the activity of our firm is regular cooperation with numerous scientific centres such as the National Research Institute of Animal Production in Balice, Wrocław University of Environmental and Life Sciences, Medical University of Silesia in Katowice, Silesian University of Technology and outstanding specialists in medicine, veterinary medicine, chemistry and biology. Our firm is also a member of the Silesian Centre of Biotechnology, Polish Chamber of the Pharmaceutical Industry and Medical Products Polfarmed, Polish Chamber of Commerce for High Technology and Nutribiomed Cluster in Wrocław. It also takes part in investment projects, like for example the Sosnowiec Science and Technology Park. PM

Biochefa, in conjunction with a team of transplant surgeons from the Medical University of Silesia, has developed Biolasol, a solution for preserving organs for transplantation. The product has been nominated this year for the Polish Innovation Award granted by the Polish Agency for Enterprise Development (PARP). Can it indeed revolutionize transplant medicine in the near future? What is so innovative about the solution?

Biolasol is a unique solution for organ transplantation, a world-class innovation successfully competing with an American equivalent present on the market. It is the first Polish solution for organ transplantation developed by teams of university professors. Research to find the right ingredients for the solution and prove its efficacy took more than 20 years. Initially, we conducted model research on isolated porcine kidneys, livers and pancreases. As the result of the model research was positive, we were able to begin pre-clinical trials. The goal was to assess the efficacy and safety of the solution in a living organism and to compare its effectiveness with the ViaSpan solution, which is now used in clinical practice. At the stage of preclinical trials, it already turned out that when Biolasol was used the clinical outcome was “not worse” compared to ViaSpan. At the same time, our firm’s production potential, focused on making an aseptic product of the highest quality, was being modernized and expanded. It is worth stressing that we developed a solution which contains exclusively ingredients needed by the human organism. We chose for our solution an ingredient used in intravenous solutions - dextran. The Americans use hydroxyethyl starch. And our product is more natural. Another stage in the development of our solution was its modification by the addition of selected hormones and trace elements, including prolactin. Prolactin is effective in men during and after a heart attack, but it may cause impotence. This is why we have already reduced the dose of the hormone 1,000 times. And this has turned out to be effective. And what is still ahead of you in this respect? An important problem, for example, is that transplant surgeons performing transplant procedures of various kind for 20 or 30 years are accustomed to a different solution. And now they have to take to a new one. There are also a few problems and challenges we are still working on, like for example acute rejection, problems resulting when the organ donor and recipient are of different ages, and haematological problems of various kind. We hope, however, that the solution will soon enter the market and will indeed revolutionize medicine. I think it is a question of time. There is demand for around 8,000 litres of such a solution a year in Poland, 200,000 litres in Europe and around 1 million litres in the world. Among the persons I have “hounded” over this important issue of research and experimental nature is Prof. Marek Krawczyk, head of the General, Transplant and Liver Surgery Clinic of the Medical University of Warsaw. The Clinic, Poland’s largest centre meeting world-class standards in terms of patient care after organ transplantation, would be a natural place for such an important scientific meeting on this subject. • PM

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Innovation

THE FIVE PILLARS OF THE POLISH INVESTMENT PROCESS On 25 January 2016 the foyer of the Sheraton Warsaw Hotel hosted the “Poland 2015–2025. How to Effectively Invest Public Funds” conference, organised by the Polish Confederation of Private Employers Lewiatan. The event aimed to discuss how to spend public funds to benefit the economy. The business community presented a number of recommendations on how to avoid wasting money in the health sector, the digital economy, and transport infrastructure. The event’s special guest was Mateusz Morawiecki, Deputy Prime Minister and Minister of Economic Development.

ateusz Morawiecki outlined a vision of the five pillars of the Polish investment process: “Over the last twenty-odd years, Poland has experienced significant economic development in terms of its GDP. In fact, Poland proved to be a leader in this respect in Eastern Europe, which was recovering after the collapse of the Soviet Union. It is important, however, to look at the key drivers of this development and reflect on whether or not they will continue to drive our economy. What we all need to do is to probe a little bit deeper into the underpinnings of Poland’s economic development in recent years. Once we do so, it becomes apparent that indeed the economy developed fairly rapidly. This was, however, dependent development. Of course, one can argue it couldn’t have been otherwise. I, for one, believe it could. As a result of dependent development, we are now boasting substantial exports without mentioning that two thirds of Polish exports are attributable to foreign-owned companies. While I am happy to see such good export figures, I also dream about a situation in which, like Germany, domestic companies contribute 80% of exports, while foreign-owned companies account for the remaining 20%. I think we can all agree that this is the right proportion to accumulate wealth. This is also true

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Mateusz Morawiecki, deputy Prime Minister and Minister of Economic Development and Henryka Bochniarz, President of the Lewiatan Confederation.

for industrial production. While the situation here is better, 50% of the output continues to come from foreign-owned companies. This is definitely not a reason to complain. But, since I am the Minister of Economic Development of the Republic of Poland, I am primarily

interested in the development of Polish enterprises. Hence, the master plan is to make the Polish economy more Polish. Paradoxically, one way to achieve this is to invite foreign capital, including especially companies that bring in new technologies. I would like

Innovation

involve foreign start-ups in this process. Our objective is also to increase R&D’s contribution to GDP from the present 0.7% to 1.7%, or even as much as 2%.

CAPITAL AVAILABILITY

Dariusz Blocher, President of Budimex SA

Poland’s economic development and investment to be founded on five pillars.

REINDUSTRIALISATION This involves promoting industries that generate the highest value added. Currently, a kilogram of Polish exports is worth EUR 1.7, which is a fairly good progress considering that 15 years ago the corresponding figure was EUR 0.5. Then again, a kilogram of German exports is currently worth EUR 4.1. We should strive towards bringing as much know-how as possible to industries responsible for individual exported goods to be able to achieve the highest margins possible on these goods. In essence, it involves reindustrialisation in the sense of creating the best-possible conditions for the medical, pharmaceutical, aircraft, automotive, IT and other high-tech industries. It is not about building new factories, as some unfairly suggest. Rather, it is about bolstering industry, including existing industry, through the public procurement of arms, development projects and local-government projects.

LESS RED TAPE My overarching aim is to help Polish entrepreneurs. It is my ultimate task. I want to be there for Polish entrepreneurs and listen closely to what they say to make sure that the most reasonable ideas that they come up with are built into institutional and business-related procedures. It is important to note that the present Government has a slightly different

perception of the underlying paradigms of economic development. The last 20 years have proved to be a time of polarised and diffused development. We, however, wish this development were more balanced. I definitely appreciate the efforts of our predecessors to cut red tape, although many of them failed, and I am committed to building on these efforts, as red tape is like the mythical Hydra. For every head chopped off, it would re-grow two heads. I wish we could, with the help of entrepreneurs, reverse these proportions.

INNOVATION Within the coming months, we will have an ambitious pro-investment law in place. In this context, a special Innovation Council has also been appointed to support horizontal and coordination mechanisms. The Innovation Council consists of three Deputy Prime Ministers and several Ministers, so that we can get together and find out how to clear the way for the faster development of the innovative economy. For instance, there is much talk on how to persuade start-ups to stay in Poland. We want to avoid a typical brain-drain situation where Polish start-ups, often supported by public funds and set up by people educated in Poland, are acquired by foreign companies. We would also like to see cooperation between state-owned companies and start-ups. This cooperation should take place on a voluntary basis and help innovative Polish enterprises secure contracts from state-owned companies. Perhaps we should also aim to

This involves creating certain conditions, as well as specific projects, conductive to raising capital. If, for instance, we are planning to procure a certain type of weapon for the army, let us primarily buy this gear from Polish manufacturers. Poland boasts top-notch arms-industry companies. For instance, take drones, which nowadays are used for military as well as civilian purposes. We should embrace the opportunities offered by public procurement and arms contracts. I came up with this example to demonstrate that the industrial and investment processes have a combination of certain positive-feedback factors. On the one hand, we have private funds – PLN 230 billion worth of commercial bank accounts. On the other hand, we can unlock the funds available from, among other sources, the Juncker Plan, and other, well-known, EU programmes. Within the next seven to eight years, Poland will receive about PLN 500 billion from programmes that are already in place. It is my dream that we move away from spending these funds towards investing them.

THE PROMOTION OF EXPORTS Exports represent the strongest indicator of the competitive power of Poland’s economy. Presently, we are enjoying their growth. Then again, as I said, behind these exports are mainly foreign companies. We should have an Exports Support Agency in place, which would become an integrator between the Polish Information and Foreign Investment Agency (PAIiIZ) and the Department of Trade and Investment Promotion, both subordinate to the Ministry of Foreign Affairs and Development.” After his speech, Mateusz Morawiecki had a Q&A session with businesspeople representing various industries in the Polish economy. They included Dariusz Blocher, President of the Board at Budimex, a major constructionindustry player, and Małgorzata Adamkiewicz – Vice-President of the Board at Adamed, a pharmaceutical company, as well as leading figures from the automotive industry. Also, Henryka Bochniarz, President of the Lewiatan Confederation, gave Mateusz Morawiecki a white paper with some proposals from the Confederation and its members on how to improve the Polish investment process. • 2/2016 polish market

Infrastructure

EUROPEAN INNOVATION MARKET STRATEGY OF THE BUILDING RESEARCH INSTITUTE

Marcin M. Kruk, PhD, Director of the Building Research Institute (ITB)

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Robert Geryło, PhD, deputy Director of the ITB for Strategy and Development

he construction industry contributes around 10% to the combined GDP of European Union countries. This share is generated by 3 million businesses, which provide employment to nearly 30% of all people working in the industrial sector as a whole. An important feature of the construction industry is that it has an around 40% share in the consumption of natural resources, which indicates one of the more important development and innovation directions. Due to innovation, one of the most important spheres of national specialization in Poland, with the biggest percentage of patents in all patent areas, is construction engineering and building technology. The construction industry should contribute decisively in the future to strengthening the innovation performance and competitiveness of the Polish economy. The Building Research Institute actively represents this section of the national and European research area. Within the ECTP, and under an agreement with the European Commission, the ITB works on developing and agreeing on the topics of competitions for European research projects partially funded from the Horizon 2020 programme. In cooperation with other members of the European Network of Building Research Institutes (ENBRI), the ITB is developing “A Joint Strategy for Research and Innovation 2015+,” which is focused on the biggest challenges, such as: energy efficiency of buildings, building complexes, towns and cities; • circular economy – designing products with the intention of reusing them and minimizing environmental impact; • ICT – information technologies supporting building design and management, including building information modelling (BIM); • meeting the changing needs and expectations of building users in the 21st century (demographic situation – after 2020 around one third of the EU population will be aged over 60 and will be spending 80-90% of their time inside buildings); • renovating existing buildings and improving conditions of their use (three fourths of the buildings were constructed before 1990); • ensuring the security of buildings and their resistance to natural threats resulting from catastrophic climate impacts, or threats caused by terrorist activity. Construction-related topics have also been incorporated into the national research programme, which indicates such directions as developing new structures and materials safe for health and the environment, but at the same time very durable; developing a new generation of building materials of high strength and thermal parameters with the use of nanotechnology, microtechnology and biotechnology, materials making it possible to design and modify their structure to obtain the expected properties; and increasing the output of construction materials based on waste management technologies •

Infrastructure to reduce demand for primary raw materials. Intelligent and energy-efficient building is one of the fields of Poland’s national specialization. The ITB is involved in developing a system of European technical assessment for innovative construction products. The ITB takes part on a regular basis in the work of the Board and teams of experts and working groups of the European Organization for Technical Assessment (EOTA). So far the ITB has issued over 300 European approvals and more than 100 European technical assessments. This gives us a high position among the European units which are the most active in this respect. The ITB is one of the founders of the European EPD ECO Platform, an organization set up to ensure the harmonization of the European system for issuing and mutually recognizing environmental declarations for construction products, especially innovative ones. The objective of the environmental declarations is providing quantitative information on the environmental impact of construction products at individual stages of their life cycle. The ITB has implemented the system in Poland and at present has around 50 registered environmental declarations and is implementing many more. This activity contributes to strengthening the competitiveness on the international market for construction products from Poland. To pursue the above goals the ITB has adopted its development strategy “Science and Expert Knowledge for Construction of the Future.” The ITB’s goal is to achieve the position of a leading research institute, the leader in creating the development of the construction sector as an organization supporting practice. The ITB’s mission is to shape high quality and innovation in construction by ensuring the development of workers, scientific, research and expert work, and proactivity. Respect and fairness, cooperation and confidence, innovation and development, and quality and impartiality are the shared values which strengthen unity in the ITB’s activity. The priorities of the ITB strategy: • • • •

•

basing the strategy on two pillars: scientific development and cooperation with the customer; strengthening communication between science and business; implementing an innovative system of cooperation between the ITB and innovative businesses; creating development, anticipating needs, flexibility, and quick response through the development of a scientific research and innovation centre; strengthening the ITB’s position in the international arena thanks to the ability to conduct specialist research in order to take part in developing innovative building technology, issuing European technical assessments for innovative products, and certification in Europe and Asia. •

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Infrastructure

HOMES SELLING LIKE HOT CAKES

Marek Michałowski, Chairman of the Supervisory Board, Budimex SA, talks to Ewelina Janczylik-Foryś. 2015 was a relatively successful year for the construction sector. Can we count on 2016 being equally good? We do not have detailed data on 2015 yet, but according to our predictions, it will not be much better than 2014. We can expect growth of 1-3%, despite the mild winter and the ability to continue works until the end of December. So this will not be a breakthrough yet. While there is no breakthrough in sight yet, it can be seen in forecasts. A new EU financial period has begun, and, what follows, also new tenders have been started. It should be stated that the work that is being conducted by the General Directorate for National Roads and Motorways (GDDKiA) is really good. They have learnt from the problems that occurred PM

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in relation to tenders in the previous financial period. In the current period the GDDKiA is not delaying publishing tender notices, but is announcing them successively. However, one should bear in mind that these are mainly “design-build” tenders, which means that they will not start immediately after the winning bid’s being announced, and will not translate right away into financial results. We should remember that the project designand-approval process takes on average a year. Construction works start only after this time. When it comes to infrastructure, I do not expect a spectacular breakthrough as early as in 2016. We should not expect production to soar by 20 or 30% this year. This is because this will be a period in which subsequent

contracts will be signed, as well as a period for the aforementioned design work. In my opinion, we can expect a significant quantitative leap in the infrastructural sector in 2017-19. In that period the contracts that are being signed and designed today will finally go into the implementation stage. I think that 2016 will be a good year. A rebounding year, one might say. The importance of EU funds is becoming evident. More and more contracts are being granted, which offers prospects for the future. This has already influenced the labour market. Companies, taking into account the signed contracts, strive to attract the specialists they need. It is becoming evident that the labour market is starting to lack people, especially highly

Infrastructure Recently the National Programme for the Development of a Low-Carbon Economy has been presented. One of its concepts is to develop zero-energy buildings, that is such buildings that should produce, throughout the entire period of their use, the amount of energy consumed for their construction and heating. What is your opinion on this concept? This is a thing of the future. Such technologies evolve so quickly and offer more and more green solutions that indeed we will reach that stage. But I do not see it in the context of 2016, which is today’s topic. It will emerge slowly. The energy and maintenance costs of homes are important, so if somebody knows how to construct a building that will meet these requirements, and the purchase cost of an apartment in such a building is not drastically higher, then, of course, people will buy such homes. I still think that this is a perspective of a dozen or so years, and not of several years. PM

qualified specialists, such as engineers, contract managers and site supervisors. But there is a gap in the market. Because of a break in vocational education there is a shortage of qualified staff... Exactly so. When it comes to the education system, we need years before qualified specialists – graduates of vocational schools – enter the market. Today, this market is very shallow. Demand is on the rise, and there are too few specialists, which is a problem currently being faced by construction companies. More and more I can hear that companies have started to look for employees in neighbouring countries. Employers from the infrastructural sector are searching for specialists in Ukraine, Russia and Belarus. PM

The end of 2015 was very profitable for the real property development industry. Today we can hear that the Government will not extend the Home for the Young (MdM) programme, which was the driving force behind the sales of homes on the primary market. Aren’t you afraid that this will result in a slowdown in the housing industry? I see things in fairly bright colours. I do not think that the real-property development industry is in a slump. Currently companies operating in this field are faring really well, and are starting more and more new projects. All presidents of real property development companies speak with one voice, telling us that homes are selling like hot cakes, despite the inflated loan requirements. However, this might be a warning for the future. We should remember that the real property PM

development industry is strongly connected to the economic situation in the country. If the country is developing, there is a good investment atmosphere, the unemployment rate is falling, then people are more willing to buy homes. This is what we can observe today. Poland is developing faster than the EU average - GDP for 2015 will probably grow by approximately 3%. Advance sales on the housing market are currently at a record-breaking level. Year on year, 2015 to 2014, this a 20% growth, which is a lot. Will it be possible to maintain this trend this year? I think that we will not record another such spectacular leap any more. First, MdM is coming to an end. While the Government has announced that it will come up with something else to replace it, before it passes and implements it, a big gap will arise. Second, there is the banking tax, which can negatively impact on the availability of mortgage loans. There are, therefore, some signals indicating that the good spell on the market might not last forever. So far supply has been meeting demand, and what is being built is being sold. However, currently many new housing estates are being created, and soon it can turn out that supply has exceeded demand. This will have two consequences. First, prices will not increase. Developers prefer to sell more at reasonable prices, than sell less but at much steeper prices. Second, it might finally turn out that supply and demand are different, resulting in many homes present on the market, which will be impossible to sell. It appears that this will not come to pass in 2016, but it will be a year of slight tranquilisation. PM

More and more often it can be heard that the infrastructural industry needs a common, long-term strategy that will help the industry to promote and sell its products abroad. What, in your opinion, should form part of such a strategy? There were always talks about a strategy for the broadly understood construction industry. Some say that devising a common strategy for the housing industry would be enough, as it is the critical element at the nationwide level. I know one thing – and such a strategy has worked, for example in Spain – to make sure that construction companies can thrive in the long run, one has to facilitate appropriate conditions at the moment, when they can make profit, which means, from our perspective – now. When Spanish companies entered the EU market and started to absorb first EU funds, they were small companies, often smaller than those currently operating in Poland. Today they are huge corporations, acquiring other entities abroad. Therefore, the basic strategy is to facilitate such conditions that will secure public interest and make it possible for companies to make a profit. These are private companies, and they will know what to invest in to develop and start operating outside Poland. The worst-case scenario is the escape of our companies abroad only because they cannot make money in Poland. This is a win-win strategy, which will translate into the development of the entire economy. If companies can make money in Poland, they will pay taxes here, buy local equipment, and employ subcontractors and employees who will pay their taxes and spend money in Poland. This is how you make the whole cir• cle to power the economy. PM

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Infrastructure

THE BUIL DI NG S THAT MAKE YOU HAP PY TO BE AL I V E

The modular multi-family buildings produced in Bielsk Podlaski by Unihouse, which is part of the construction company Unibep SA, are economical, nice and unique. The houses are all the rage in Norway. They are also being constructed in Sweden and Denmark, and have aroused great interest in Germany. “Our products meet world standards in terms of environmental protection, noise and airtightness,” says Roman Jakubowski, director of Unihouse.

ielsk Podlaski is a town of 28,000 people located close to Białowieża Forest, Europe’s largest primeval forest complex and a UNESCO world heritage site. The town is home to the Unihouse plant manufacturing modular buildings. “We have a production capacity to manufacture around 700 modules, or 40,000 sq m of usable space, a year, which makes us one of the largest European companies in this sector,” says Roman Jakubowski. “At present, most of our output goes to the Norwegian market. We hold Norwegian technical approval certificates for the construction of buildings in the modular and panel systems. We also construct buildings in Sweden and Denmark.”

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In Norway Unihouse has already constructed multi-storey residential buildings with more than 1,300 apartments. Additionally, almost 400 apartments are now under construction. Unihouse has carried out its projects in Oslo, Stavanger, Ålesund, Trondheim and Tromsø, a city beyond the Arctic Circle. The modules are manufactured in an ultramodern factory with specialist state-ofthe-art equipment, most of it made in Germany. Floors and roofs are made in the first production hall. The production of walls and the assembly of modules takes place in another hall. Then, all the necessary systems – like wiring and ventilation – are added and the modules are finished on a turnkey basis.

In fact, the modules are something more than a turnkey product because they come off the assembly lines complete with bathroom and kitchen furniture and appliances. Prefabricated in this way, the modules are transported to the place where the multifamily building is to be erected. First, they are transported by road, then by ships, and then again by road to the construction site where the foundations have already been built. “The modular buildings made by Unihouse may be termed as friendly to the environment, the customer and the people who will be living in them,” says architect Marcin Rudnik, deputy head of the Unihouse Design Department. “The reason is that the material we use to produce the modules is wood - a natural

Infrastructure product, which creates a very good microclimate inside the buildings, making them healthy and comfortable to live in. A very short time needed to erect the building on the construction site and the ability to assemble the modules in winter on a previously built foundation are great advantages. The modules are prepared, assembled and finished all year round without a break because the production process takes place in heated buildings, which also means that the employees have comfortable working conditions. Apart from good insulation, our buildings are also characterized by excellent airtightness.” When you browse a catalogue of projects implemented by Unihouse it is impossible to come across pictures of identical buildings. “This is because we approach every project on an individual basis. The buildings are custom-built by our designers and engineers, complete with interior furnishings and fittings, in keeping with the clients’ wishes,” says Roman Jakubowski. “The production process is carried out by well-qualified personnel, using modern tools and a production line from the German company Weinmann. The quality of the materials used to produce the modules – for example, wood, windows, doors and insulation materials – is of worldclass quality.” At present, most of the Unihouse’s output is sold in Norway and the company is well known and highly valued on the local market. Modular buildings can be erected on slopes, rocky soil, sandy soil, sites with a high water table, and even on the roof of an existing building. They are placed on a base supported by a pile foundation. Such buildings can be moved from place to place and, if necessary, even dismantled and then reassembled. They can also be easily enlarged by buying further modules and adding them to the existing building. They can have any architectural form. They are like “large Lego bricks,” which are stacked one upon another. The five-storey and six-storey wooden blocks of flats constructed by Unihouse do not resemble wooden buildings at all. One can construct not only residential buildings in the modular system, but also office buildings, hotels, dormitories, kindergartens, schools, outpatient clinics and so on. Many applications are possible. Modular building has numerous advantages. Among the most important ones is the short time needed to construct a modular building - it takes about six months from the design stage to completion compared to at least 18 months needed in the case of traditional building. Although a modular building is made of wood, there is no risk of fire because the timber frame is shielded

by non-flammable construction materials. Buildings constructed of wooden modules are much more soundproof than brick buildings and at the same time very durable. Unihouse cooperates on a daily basis with scientists of the Białystok University of Technology. The scientists examine the modules to check whether they are sufficiently soundproof and airtight. Only the modules which have been confirmed to meet high standards in terms of acoustics and airtightness can leave the factory. “We have successfully sold our modules in Norway for years. They have excellently proved their worth, even though the weather is harsher there than in Poland,” adds Roman Jakubowski. “A wooden building is not synonymous with poverty, but with environmental protection and contact with nature. It is a symbol of Norway. As a matter of fact, you do not need to win them over to timber-framing technology because they have known it and used it for years.” In July 2015, Unihouse signed a contract for the construction of passive buildings in Trondheim. The project is called Miljobyen Granasen B5-3. The innovative, energy-efficient buildings, which meet high Norwegian standards, will be constructed in one of Europe’s biggest passive housing estates. New markets are opening up for modular houses. The first buildings produced by Unihouse have appeared in Sweden and Denmark. And this is merely the beginning. “Modular building is expanding quickly in Europe. German institutional and private investors have taken a keen interest in the Unihouse product. What persuades them is especially the short construction time and the quality of workmanship,” says Marek Iwańczuk, director for exports at Unibep SA. “Today, when there is the need in Germany to build quickly, our product seems very attractive. Unihouse has also started cooperation with the Swedish company Cramo, which operates almost throughout Europe.” Groups of foreign guests who want to see how wooden buildings are produced visit the Unihouse factory every several months. Most of the visitors are surprised that almost all of the work is done at the factory and only the assembly of the modules takes place on the construction site. “It is an excellent idea,” they say. It is hardly surprising that the company receives more and more inquiries from across the world regarding the production of modular buildings. Unihouse is part of Unibep SA, a construction company which celebrated its 65th anniversary last year. Unibep, in which Polish owners have a majority stake, has been listed on the Warsaw Stock Exchange since 2008.

Roman Jakubowski, director of Unihouse

The buildings are custom-built by our designers and engineers, complete with interior furnishings and fittings, in keeping with the clients’ wishes. Unibep is a general contractor on construction projects in Poland and abroad and has its own company operating as a developer and selling apartments in Warsaw and Poznań. It is also active in the road and bridge building sector. When the company celebrated its 65th anniversary the main motto was “knowledge, passion and confidence.” The same is the case with the production of modular buildings – the Polish engineers have the knowledge to construct buildings of world-class standards, do it with passion and one can trust them. Nearly 1,500 home owners in Norway and major developers in the country have already placed their confidence in Unihouse. Time has come for the whole of Europe. •

www.unibep.pl www.unihouse.pl 2/2016 polish market

STRABAG AND VOLKSWAGEN

TOGETHER FOR WIELKOPOLSKA One of the largest construction companies in Poland is building part of a new manufacturing plant for one of Poland’s biggest employers. The site is located 50 kilometres to the east of the mid-western city of Poznań, the capital of Wielkopolska province. In the village of Białężyce near Września Strabag has already built three of the five production halls planned for construction under the Volkswagen factory project located on a 220-hectare plot of land. It is now one of the biggest industrial projects in Poland – a product of cooperation, confidence, long-term relationship between the two companies and their good mutual experiences. These days, no undertaking of this scale has any chance of success if it does not meet what one may call non-price criteria.

trabag and Volkswagen have joined forces on a project which seals their cooperation not only on the Polish market, but also elsewhere in Europe. The first stage of this cooperation in Poland – the construction by Strabag of a production hall on the premises of Volkswagen’s factory in Polkowice – was completed in the spring of 2014. A natural consequence of this successful project is further cooperation between the two companies - this time on

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a much larger scale, involving the construction of Volkswagen’s new factory to manufacture commercial vehicles in Białężyce. Three of the planned five production halls - vehicle assembly building with the finishing department, office and services building, and utility building - have been built in an extremely short time, just eight months since the start of construction works. The buildings had to meet strictly defined requirements, but the contractor was allowed to use his knowledge

and experience, and propose technologically advanced solutions. In their frame stage, the buildings occupied over 150,000 sq m of space. The largest one was 850 metres long and the distance from the beginning of the first building to the end of the second one was 1.2 kilometres. The project obliged the contractor to ensure the perfect organization of work and excellent logistics. “Standing at the start of the construction project and seeing the finishing line on the

Source: Volkswagen Poznań

Infrastructure

Infrastructure that the highest quality of services and materials would be maintained, and that deadlines would be met. “I have no doubt that many more factors, apart from price, are at play when you win such a prestigious contract as the construction of a factory for Volkswagen,” says Alfred Watzl, member of the Board at Strabag Group in Poland. “In the eyes of investors, who commit significant financial means to their undertakings, it is not only price, but also the ability to meet the difficult requirements for deadlines, quality and new technologies that influence decisions to establish cooperation. However, confidence, reputation, gradually acquired mutual experience, openness to dialogue with investors and the ability to respond flexibly to their needs are necessary for long-term and satisfactory cooperation.” The construction of the production halls beganat the turn of 2014/2015. The construction of the Volkswagen factory near Września is comparable in terms of its scale with the construction of the largest shopping centres in Poland.

In 2015, Strabag completed on the same day the construction of two shopping centres – in Bydgoszcz and outside Wrocław. Their retail space was almost exactly the same as the floor area of the Volkswagen factory. The contractor built the halls to the lock-up stage complete with floors and some finishing works done. The halls are steel-framed buildings with a spacing of 25 metres by 25 metres. More than 11,000 tonnes of structural steel, 54,000 sq m of façade panels, 68,000 cubic metres of floor concrete, over 500 reinforced steel pillars and more than 1,300 prefabricated elements of reinforced concrete were used to construct the halls. After these works were completed the only thing that remained to be done was to install the production lines and launch the factory. Volkswagen’s new factory for the manufacture of commercial vehicles was built in one of the largest and most rapidly developing industrial zones in Poland. The plant is situated close to the transit railway line linking Berlin and Moscow and the A2 motorway, which has also been built by Strabag. •

2/2016 polish market

Source: Volkswagen Poznań

horizon, one can feel the real scale of the undertaking,” says Andrzej Tomczyk, director of Oddział Zachodni Strabag Sp. z o.o. “On a site which could accommodate 30 football pitches, 750 specialists in many areas of construction, equipment operators, suppliers and logisticians constructed the halls with precision and truly strict time, technological and financial regimes. But in order to achieve success they used – because they had this opportunity – Strabag’s corporate resources, its experience, materials and equipment. This is an advantage of an interdisciplinary contractor.” Apart from specialists of Strabag Sp. z o.o., other members of the Strabag group were also involved in the basic works provided for by the contract: Züblin Stahlbau GmbH, a producer of steel structures, and BMTI Sp. z o.o., which provided its equipment and fleet. A number of specialized subcontractors, who had already proven their worth, including those from Wielkopolskie province, also took part in the project. Their reputation and Strabag’s good experience from working with them guaranteed

Infrastructure

WE ARE NOT AFRAID OF ANY

CHALLENGES Piotr Kledzik, President of PORR Polska Infrastructure SA, discloses to Marcin Haber details of the reconstruction of the Łazienkowski Bridge and talks about the change of ownership and plans for the future.

To begin with, I am going to ask you, teasingly perhaps, about something you must have already been asked about many times – the Łazienkowski Bridge. I am asking you about it because this project was not a standard one. A Twitter profile was even created to inform the public about progress on the reconstruction of the bridge. Residents of Warsaw observed your work carefully. How did this pressure influence you? Since the beginning we were aware of the burden – including in social terms – we would have to deal with. We were aware that the project was not technically easy and that in fact many things could go wrong. Our biggest concern was that, with the quick pace of the preparatory work, many dangerous and unpredictable situations could take place on the old burnt and damaged structure. However, the burnt bridge had to be quickly replaced with a new one. The effort to give the residents of Warsaw a new bridge as quickly as possible was the driving force behind our activity. Without the experience and know-how of our engineers, who are among the best bridge-building PM

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Infrastructure

specialists in Poland, it would be difficult to carry out this construction project so efficiently. As regards our proactive communication and PR measures, they were planned and pursued in order to satisfy the interest, natural in such circumstances, not only of the media but also the residents of Warsaw. We did it for two reasons. On the one hand, we were aware that a construction project of this kind, in the centre of the capital city, would be of interest to journalists and we tried to satisfy this demand for information. On the other hand, we were also closely watched by the city residents and it was also for them that we created such communication platforms as Twitter Nowy Łazienkowski and the website www.nowylazienkowski.pl. The website dedicated to this project also served as a database for journalists, enabling them to download photographs with a resolution sufficiently high for printing and to get familiar with designs and the timetable. The communication activities included weekly newsletters for the media with a summary of the work conducted on the bridge and plans for the next days. I have to admit that the briefings and press conferences organized on the bridge by us and by the investor attracted such a huge interest that we sometimes had to temporarily stop work on the construction site because of crowds of journalists. They were very inquisitive and until the end wanted to observe the project. We understood this very well and were prepared and open since the beginning to contacts with the media. With time - when I increasingly heard words of praise from the residents, who saw the progress and supported us saying: “It is feasible, after all” - I also noticed growing friendliness from the journalists. I remember this very positively. Our good relations with the media resulted in very nice situations for us. The city’s leading daily granted us the Stool award for an “infrastructural miracle.” Our construction project also came first in the Warszawiaki 2015 poll in the Event of the Year category. The rebuilding of the Łazienkowski Bridge is an example showing what every investment process should be like. We all had a common goal, there was no secret timetable, no documents hidden under the table, or problems offloaded from the contractor onto the investor and vice versa. We managed to put the bridge into use ahead of the schedule thanks to excellent collaboration of all the interested parties. It should be stressed that the project has not been completed yet. Not all of the works planned could be finished before the winter break, but they will be continued in spring. However, these are just details, like anticorrosive protection and a few accessories that the bridge should have. It is worth noting here that this is actually a new bridge, not a repaired one. At some point, however, the bridge attracted an exceptionally strong interest from politicians, which does not seem to be a desirable thing. Did this have an impact on the construction works? I did not feel any pressure disturbing the process of construction because of this interest. Of course, many people wanted to see with their own eyes how the work PM

A construction company is first of all its staff - the experienced and committed people who constitute its invaluable foundation.

progressed. I received many phone calls with such requests. Understandably, Warsaw’s city hall - the investor of the project - devoted the most attention to the construction work. The investor, like all those interested, wanted the work to go on smoothly and efficiently. We were all aware that this bridge was of key importance in the city’s transport system. As a result, all the parties taking part in the investment process were very friendly to one another, which of course enabled making the bridge driveable within a short time. So I assess this project very well in this respect as well. I hope for more such projects. But PORR Polska Infrastructure builds not only bridges. We deal with infrastructure building in a broad sense. The year 2015 was very important for us, mainly because of the change of ownership. The Bilfinger group finally withdrew from the construction sector. We had talked for a long time with many interested companies and finally our talks were finalized with the Austrian group PORR, of which I am very happy because PORR is a strictly construction business. Its procedures are very similar to those that we have applied for years. PORR is expert at infrastructure building because it develops infrastructure in many countries. However, it was not known on the Polish market as infrastructure builder. We have a sister company in Poland – PORR Polska Construction. It deals mainly with office building and rail construction, that is with everything that we do not offer. Consequently, the companies PM

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Infrastructure

The Ministry of Economic Development has adopted the National Programme for the Development of a Low-Carbon Economy, which puts great emphasis on zero-energy building. Do you think it is possible on the Polish market? In my view, these are projects which, at this stage at least, look very futuristic. However, I excellently remember the time when airbags, four-wheel drive and automatic transmission were added to the equipment of passenger cars. Then, these were also regarded by many as bizarre features. The same may be the case with zero-energy buildings. Undoubtedly, energy is today increasingly expensive and it pays to invest in low-carbon systems. Will these systems be specialized enough to produce energy, or perhaps construction will use only some solutions? It is difficult to say, but it is worthwhile to support this idea. I also think that the environmental lobby is really faring very well in Poland and that being green has become trendy. This is why I think it is not senseless. Of course, it will be difficult and we will have to take a great care so as not to overinvest. In my view, we should be exploiting the natural resources that are available in Poland and, importantly, we should not give up on coal. We should invest in facilities which will ensure that energy derived from coal is not as harmful as today. The rational distribution of risks between the investor and contractor is also enormously important on these projects. PM

are complementary. We complement each other and together offer a complete range of services on the market. What kind of orders were the most numerous in 2015? At the end of the year, we were showered with orders for road building and road and bridge building projects. We compete strongly for orders in this area. The market saw a sharp upturn, which certainly bodes well for our sector. PM

Do you think this was due to the funding available under the new EU financial plan? There are voices that the money will be used better than the funding under the previous financial plan. Do you agree with that? Our market is attractive so competition on it is very strong. Additionally, new players have emerged, which means that the prices are now at a very low level. However, new provisions have appeared in contracts between the investor and contractor and they made them more friendly to the contracting company. The distribution of the risks is now more rational. This is, among others, the result of demands made by the Polish Association of Construction Industry Employers (PZPB). The contracts now include clauses on advance payments for construction works and the indexation of prices, even if not to an extent we could wish. Thanks to the several new clauses introduced to the contracts, operation on the market will now be more rational. We expect, however, that the public side will be avoiding a price boom, especially in the sectors on which the state has a strong influence. We remember such a situation in the years 2011 and 2012. Initial declarations made by the new government give us hope that this situation will not happen again. And this is a necessary condition if we want at least part of the planned investment projects to be carried out. This will be beneficial for the rail sector where companies are waiting for these contracts. PM

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Then, considering that this vision is quite distant, tell us about the company’s plans for the near future. The ownership changes in our company ended just several months ago so we are still at the initial stage of our joint operations. But this goes on at a pace which is good for both sides so we expect the results to be produced soon. We will be trying to create a strong group on the Polish market. Our goal is for the name PORR to mean a lot on our market in all sectors. We will be working on synergies for both companies. In the near future, we want the group to take the place which is due to it on the Polish construction market. It is worth adding that our company survived the difficult period of ownership changes unscathed thanks to our staff, the best in Poland. The 800 people who now work for the company are able to meet such challenges as the Łazienkowski Bridge relying almost exclusively on our own resources. If I had started looking for subcontractors when we received the contract for the bridge we could have had difficulty completing it on time. A construction company is first of all its staff - the experienced and committed people who constitute its invaluable foundation. PM

Can we expect PORR to carry out large contracts combining various types of infrastructure, for example road and rail building contracts? Of course. We already cooperate on many planes and definitely more and more will be uniting us. As I said, the PORR group will be offering on our market fully complementary services. And you will soon be able to see joint projects of this kind. • PM

Infrastructure

QUALITY

AS THE FOUNDATION OF DEVELOPMENT 25-years’ experience of building business and for business has led to the conclusion that quality is a fundamental value. Quality, as a multifaceted notion that permeates every aspect of the organisation’s operations and is consistently parametrised, is a guarantee of success.

llcon Budownictwo was established at a critical time in Poland’s history. A radical change in the economic system, technology and mentality made it necessary to seek advantages that would guarantee the company’s growth and competitive edge. “We have made quality the compass of our organisation, and undertaken to maintain consistency between our company’s promises and the actions of our managers,” explains Mariusz Białek, President of Allcon Budownictwo. “The values pursued, cherished and communicated in business must reflect the way we perceive the world from an individual perspective,” adds Mr Białek.

THE MEASURE OF SUCCESS

In the times of the company’s foundation, quality, which today is a prerequisite to any company’s operations on the market, was not an obvious or even expected value. For Allcon Budownictwo this made things easier. From the very beginning it proved to be considerably different from other market players. With the passage of time and the growing number of completed projects, the management became assured that a specific genetic code was key to the organisation’s success. With each year the number, size and complexity of the implemented projects was increasing. “Quite soon we stopped being perceived as a group of amateur enthusiasts. We have proven our deep understanding of changes seen not only through the technological breakthrough that revolutionised the construction sector in the 1990s,” Mariusz Białek says. “The contemporary market puts strong emphasis on success understood as building structures occupying more and more space in an increasingly short time and maximising revenues for investors in time. Entrepreneurs need competition and rankings, which are drivers of competitiveness possible to apply in areas which are countable and measurable. Therefore, perhaps it is easier to determine whether a construction company has achieved success by comparing its yearon-year revenues or the number of completed square metres on a quarterly basis. “We don’t support this approach. From the perspective of 25 years I am convinced of the validity of our choice, which was to create the best rather than the largest construction company,” Mariusz Białek says.

GENIUS LOCI AND HIGH STANDARDS

Our share of the market has resulted from a thoroughly considered development strategy and is not an end in itself. Within 25 years, the company, despite its presence mainly on the local market, has developed cooperation capabilities with the largest and most demanding customers. The implemented projects, for example for Intel R&D in Gdańsk, are testimony to our ability to meet global standards. Our customers bear out the uniqueness of Allcon Budownictwo’s business model, on which it has based its leading position in the region of Pomerania. As the management emphasises, the specific culture of the organisation was also possible thanks to the company’s location.

Mariusz Białek, President of Allcon Budownictwo

The Tricity, which, as a result of historic turmoils, has become a cultural melting pot, and has created favourable conditions for a philosophy based on the quality of services and relations between the company, its contractors, customers and employees. Allcon Budownictwo has used the potential of the region’s past and present to the fullest. A substantial majority of its employees are graduates of Tricity higher education institutions. The company also reinforces its local market presence through involvement in social projects and patronage activities. “Activity in this area is also an inseparable element of the notion of quality. What is of key importance is to make quality more than just an empty slogan,” adds • the President. 2/2016 polish market

Food Industry

INNOVATIONS

ARE PART OF MOSTOSTAL WARSZAWA’S DNA Andrzej Goławski, President of Mostostal Warszawa, talks to Marcin Haber about the innovations which are of key importance for the company. You are celebrating the 70th anniversary of the company. What is its history? What kind of past experience helps you to carry out today’s projects? Mostostal Warszawa can boast of its rich history. Officially, everything began in 1945 with the rebuilding of the Poniatowski Bridge in Warsaw. But the company draws on the work, technical knowledge and experience of an enterprise which had existed long before 1945 because the core staff of Mostostal Warszawa were highly qualified engineers of Towarzystwo Przemysłu Metalowego – Konstanty Rudzki i Spółka (Konstanty Rudzki & Co.), a company which had many innovative civil engineering projects to its credit, including the construction of bridges. After the Second World War Warsaw urgently needed to have its transport infrastructure restored and the rebuilding of bridges was one of the priorities. The engineers of Konstanty Rudzki i Spółka were able to meet this challenge. Thanks to them, the Poniatowski Bridge was rebuilt in less than a year. Interestingly, almost all bridges in Warsaw except one – Northern Bridge - have been constructed by Mostostal Warszawa. We also have to our credit other buildings and structures which have become fixtures in Warsaw’s skyline. Among them is the Palace of Culture and Science and the Rotunda building. We have also rebuilt Grand Theatre and the Monument to the Heroes of Warsaw, called Warsaw’s Nike. We have carried out important projects in other Polish cities. One should remember that innovation, which is inherent to Mostostal Warszawa, being a sort of the company’s DNA, dates back to the times of Konstanty Rudzki i Spółka, which in 1929 constructed near the town of Łowicz the world’s first welded bridge. The bridge is no longer in use, but has a historical value and serves as inspiration for civil engineers. One can say that the bridge we are about to complete near Rzeszów is a symbolic project for the company’s 70th anniversary, PM

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a project linking its past with the present day. The superstructure was made of FRP composites based on glass and carbon fibres. These composites have been used for many years in the space and aviation industry. Similar materials have also been used in Formula 1 cars. The bridge has the longest unsupported span of all bridges of this kind in the world. It was designed by our R&D department in conjunction with the Rzeszów University of Technology and the Warsaw University of Technology, and marks another milestone in the development of bridge engineering in Poland. You are talking about innovations. Meanwhile, the construction industry is not a sector immediately associated with innovation. How do you understand this term? Innovation is a moment when you move ahead of existing state of technological progress and create new solutions. Sometimes the solutions are ahead of the users’ expectations, in which case – following the example of Steve Jobs and the Apple company - you have to create these expectations. The construction industry is not like the electronics industry, automotive industry or another area which is instantly associated with innovation. It seems to me, however, that it does offer much room for innovation, for example in the area of new materials, environmental protection and energy efficiency. Our sector is seen as reproductive. The customer orders a bridge or building and we, thanks to our knowledge, build them. Of course, there are projects where our knowhow and innovative solutions are indispensable. Innovation in the construction sector can also be associated with innovative ways of carrying out a project or with optimizing business operations, leading to cost cuts. Much emphasis is put in our whole corporate group on research and development. Acciona, our main shareholder, has a department of around 100 people dealing with searching for new solutions PM

and optimizing existing ones. We, as a member of Acciona Group, are part of this trend. As the only construction company in Poland, we have our own R&D department. It employs 15 people and has already operated for 10 years. It should be noted that the Research and Development Department of Mostostal Warszawa has received many awards for its work. One of them is the Crystal Brussels Sprout for outstanding achievement in promoting and conducting research programmes of the European Union. It is thanks to this research that we can boast today of having built Poland’s first innovative bridge of FRP composites. The thriving research and development activity is in keeping with our mission and allows us to strive for the further tightening of cooperation between the scientific community and industry. •

POLAND’S FIRST BRIDGE OF FRP COMPOSITES The bridge in Błażowa is one of Europe’s few innovative road bridges built of composite materials and the world’s biggest bridge of this kind in terms of the length of unsupported span. The task was carried out as part of the research project entitled Com-bridge. A consortium headed by Mostostal Warszawa, with the participation of the Rzeszów-based Promost Consulting company, the Rzeszów University of Technology and the Warsaw University of Technology, was responsible for its implementation. The construction of the bridge was partially funded from the budget of the Demonstrator+ programme carried out by the National Centre for Research and Development.

Since its establishment in 1872, the Mönchengladbach-based company Scheidt & Bachmann has developed into a global corporation which enjoys an excellent reputation. This worldwide success has stemmed from the company’s innovative and far-sighted operations and the inn awareness of its customers’ needs. Scheidt & Bachmann is one of world’s most important producers of systems for communications and mobility. We are proud that our products form the basis of transport systems across the globe and that they help millions of people every day to reach their destinations. Our package in railway-traﬃc management manageme includes comprehensive solutions for railway sections – a coherent equipment base, central management and diagnostics allowing problem-free work and management of the system. Automatic control systems in railway transport include devices providing safety at level crossings. The BUES 2000 computer-controlled system sets a new standard in safety devices for level crossings. Over 3,000 crossings served by BUES 2000 all over the world, including 200 in Poland, connrm the enormous experience and exibility of Scheidt & Bachmann. Scheidt & Bachmann’s fully-electronic interlocking system - ZSB 2000 - is designed to manage railway traﬃc in accordance with the binding regulations and has received acceptance certiicates in many countries to be used on both primary and secondary railway lines. Thanks to the modular se concept of the system and the fact that all its functions are computer-controlled, the ZSB 2000 interlocking system boasts excellent exibility and can easily be tailored to the customer’s speciic demands.

Energy

ZERO-ENERGY

CONSTRUCTION

A LOW-CARBON ECONOMY PRIORITY Marcin Haber

“

Innovative Poland - towards a low-carbon transformation” was the title of the conference organised jointly by the Ministry of Economic Development and the Warsaw Institute of Economic Studies (WISE)at the Zielna Conference Centre in Warsaw on January 11. It aimed to present the objectives of the National Programme for the Development of Low-Carbon Economy (NPRGN). The National Programme for the Development of Low Carbon Economy has been developed by the Ministry of Economic Development in cooperation with the World Bank. Its underlying premise is to introduce new procedures, or to upgrade the existing ones so as to make the Polish economy as low-carbon as economically feasible. The programme is focused on three aspects of the economy: construction, prosumer energy and sustainable consumption. Marina Wes, the World Bank’s country manager in Poland, who co-created the NPRGN, stressed that the mission of the World Bank is not only to finance economic ventures, but also to make use of the know-how of the countries that have gone through similar experience: “Although we are a bank, one of the most important things to us is to bring knowledge and experiences around the world that the countries can learn from each other. And emissions and - more generally - air pollution is currently a hot topic across the world and it is also being discussed in Poland.” Marina Wes appreciated the fact that the Polish government has put out a detailed and complex programme, which is a great platform for discussion. She stressed that cooperation with such a sophisticated partner as Poland was an enriching opportunity for the World Bank. “Today Poland is at a turning point, at a point where the new government has a very strong mandate to rule and intends to see through

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a string of reforms. These should also take account of the assumptions made under NPRGN,” she stated commenting on the current political situation in Poalnd. Zbigniew Kamieński, deputy director of the Innovation and Industry Department at the Ministry of Economic Development, discussed the framework of the programme. He outlined the global economic trends, including especially the shift towards a low-carbon economy, concluding that the transition to a low carbon economy in Poland is a must. It is not only about reducing emissions, but rather about a much broader economic optimisation. One means of this optimisation is zeroenergy construction – a concept positing that any new building or any existing building if properly modernised should produce within its lifetime as much energy as has been used for its construction and heating. The NPRGN determines the problems that we are now experiencing, and suggestions as to how to solve them. The major problem is disparity between Poland and the European Union as regards annual energy consumption in buildings per square metre. Poland’s average is 173 kWh as opposed to 128 kWh in the EU. Kamieński also observed that buildings in Poland account for 12% of greenhouse gas emissions. The suggested way of reducing this disparity is tightening thermal improvement standards with the support of public funds, and improving the energy auditing system. “This programme is economic rather than ecological. It is assumed that all the activities proposed within its scope must be beneficial for the economy. The core idea is that the low-carbon economy is an opportunity for us and not a threat,” he stressed. In the course of the discussion a question surfaced whether the National Programme for the Development of Low Carbon Economy includes all the activities necessary to

achieve its objectives in the field of low-carbon construction. Szymon Liszka, president of the Polish Foundation for Energy Efficiency (FEWE), said that a very positive aspect of the programme is that it takes account of the complexity of the problem and points to the need to encourage prosumer energy, develop smart grids, reduce consumption and control product quality. According to Ludomir Duda, an independent energy expert, “it is the first paper to evaluate the potential of low-carbon construction so aptly.” Andrzej Wiszniewski, president of the National Energy Conservation Agency (NAPE), expressed satisfaction that a single document that covers the full spectrum of relevant problems was finally produced. To date, a number of smaller documents were compiled. That said, he voiced doubts as to some details which are worth taking a closer look at in the future. Moreover, he questioned the way of presenting certain data. As stated in the NPRGN, buildings account for 12% of greenhouse gas emissions, and energy production is responsible for 42% of it. According to Wiszniewski, about half of the energy production is consumed for heating and lighting of buildings. Not surprisingly, Tomasz Gałązka, head of the Civil Engineering Department at the Ministry of Infrastructure and Construction, almost fully supported the relevance of the programme. However, he agreed with experts who suggested cosmetic changes in some aspects and promised to see to it. The National Programme for the Development of Low Carbon Economy offers a comprehensive approach to the subject of energy saving and reducing greenhouse gas emissions. At the same time, it will pose a big challenge for the public administration and the infrastructure industry. •

Innovation

POWER RING

SYSTEMIC SOLUTIONS FOR LOW-CARBON ENERGY

Power Ring was the first big energy conference organised after the COP21 in Paris and a good opportunity to sum up the outcomes of the UN Climate Summit and transpose them into the Polish energy policy framework. The COP21 was crucial becouse it was for the first time that all countries unanimously recognised the need to work together to halt climate change. Marcin Haber

rof. Jerzy Buzek stressed that while it is important that the energy portfolio is separated from the Ministry of Economy, this might carry some dangers: “We now have the Ministry of Energy, which is very important because energy is worth being in its own right and being given special treatment, but it is also important not to let it break away from the rest of the economy. It is because splitting the economy into single elements is hardly likely to serve it well as a whole. Therefore, I believe that the relationship between the Minister of Economic Development – who is by the way Deputy Prime Minister – and the Minister of Energy will be very tight.” Buzek also pointed to the importance of the industry protection within the European Union. “We cannot afford to take industry out of the European Union just because we have set ourselves the ambitious climate targets. We must also defend coal. It is important to note that the Paris Agreement makes no mention of decarbonisation. However, it is definitely necessary to head towards innovations because we have enormous challenges ahead,” emphasised Prof. Buzek. The opening panel discussed systemic solutions for low-carbon energy. Jean-André Barbosa, director of AREVA Poland, was the first to take the floor and, as it turned out, the only speaker to rely on nuclear energy as an important factor of change in the energy mix and effective way of a significant reduction of emissions. Barbosa pointed out that

today nuclear energy accounted for over 80% of low-carbon energy in the European Union. He stressed that nuclear generation was not only for power. “It is also the whole new sector of innovations, R&D cooperation between business and science, the engine of economic development. It is estimated that the construction of a nuclear power plant in Poland could boost the country’s GDP by as much as 1%. What I mean here is that today’s energy challenges are complex. It is not just about energy, security or climate, but about all of these together,” he argued. According to Jerzy Kwieciński, PhD, Deputy Minister of Economic Development, “it is very important for Poland that COP21 resulted in concrete arrangements. Even if not legally binding, they are going to set a course of action globally and it seems that they will be largely beneficial for Poland relative to what was previously achieved within the EU.” Kwieciński agreed with Barbosa that energy is a very important component of economy, which is crucial for innovation progress. Benefits of it will be seen domestically – economic growth, and over time also in foreign perspective. Maciej Bando, President of the Energy Regulatory Office (URE), stated: “I am not optimistic. I do realise that the last few years have shown that the world sets directions, builds foundations, summits take place, and yet there are still countries that want to be the leaders. So I worry that the European Commission may find at some point that the

standard worked out at COP21 should be improved and we will return to previous conditions.” Bando also expressed concern over the silence of the new government on nuclear energy: “Is it supposed to mean that the issue is no longer topical? I hope that it is only a matter of time and in a few weeks it will be up again.” Henryk Majchrzak, former President of the Polish Power Grid (PSE) company, reported some figures: “At this moment, we are building in Poland power units with a capacity of 6,000 MW and another 1,000 MW are waiting for approval. 6,000 MW corresponds to roughly EUR 8 billion worth of investment in the power sector. So the scale of investment is immense. By 2030, an additional 6,000 MW are slated to come online, a feasible long-term forecast. It is a huge opportunity for Poland, as we have to decide which direction to go.” This edition of Power Ring was conspicuous by the absence of Prof. Krzysztof Żmijewski, the conference originator and a tireless promoter of renewable energy sources, who died in October 2015. When opening the Power Ring, Prof. Jerzy Buzek said: “We were lucky to have among us a person who never ceased his efforts to do something good for Poland. A person for whom doing something good for Poland meant improving the Polish energy sector. That person was Prof. Krzysztof Żmijewski. A man who devoted himself to fixing the Polish energy sector.” • 2/2016 polish market

Energy

INFOVIDE-MATRIX HAS SIGNED A CONTRACT WITH PGNIG

Paweł Piwowar, chairman of the board of Infovide-Matrix

nfovide-Matrix, a leading provider of consulting services and IT solutions in Poland, has signed an agreement with the Polish Oil and Gas Company (PGNiG) for the provision of the third line of support and technical support for the PGNiG-held Oracle licenses as part of the systems: Oracle Customer Care and Billing and Oracle Business Intelligence Enterprise Edition. It is yet another CC&B project directed at power, gas, heating and water supply utilities, implemented by the Asseco Group. The aim of the project is to support the IT solutions used in PGNiG Obrót Detaliczny Sp. z o.o. and in the unit dealing with the power distribution of the Polska Spółka Gazownictwa Sp. z o.o. PGNiG’s Oracle Utilities Customer Care and Billing system supports the company’s customer service: from record-keeping, through billing infrastructure management, to comprehensive settlement. “We are very pleased to have a chance to continue cooperation with such strategic customer from the energy sector, which is PGNiG. These projects are unique in every way. They require both professional competence and organisational skills as needed to manage work of IT support specialists. As a capital group, we now have more than 750

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experts with expertise in designing, implementing, developing and maintaining BSS-class systems (Business Support Systems – customer support & settlement systems), handling today about 35 million personal accounts for gas, power, telephone, Internet, heat and water supply in Poland. Our goal is complete implementation of the arrangements set out under the contract, within the specified schedule, in accordance with the expectations of end users,” said Paweł Piwowar, chairman of the board of Infovide-Matrix. Infovide-Matrix S.A. is a leading provider of consulting services and IT solutions in Poland. The company has been in business for over 24 years and is one of Poland’s top 10 IT service providers . Infovide-Matrix supports the country’s largest companies and public institutions. While providing its services, the company combines knowledge and experience of industry and technology experts, based on the highest world class standards and methodologies. Infovide-Matrix has references in all key market sectors: telecommunications, banking, insurance, public administration, production and energy. The company belongs to • the Asseco Group.

Energy

THE HISTORIC COP21 AGREEMENT After two weeks of painstaking diplomacy, 195 countries have concluded a historic climate agreement of an unprecedented scope. Marcin Haber

he overarching goal of the 2015 Paris Climate Summit - United Nations Framework Convention on Climate Change, or COP 21, was to reach a new international agreement reducing greenhouse gas emissions in order to keep global warming below 2°C, or even 1.5°C, relative to pre-industrial levels. The COP21 Agreement institutes a system of global review of the emissions targets (the so-called ‘Intended Nationally Determined Contributions’, also known as INDCs) every five years, with a view to ratcheting them upwards. The first stock-taking is scheduled to take place in 2018. Another key element of the Paris Agreement is financial aid for developing countries, which are most vulnerable to the consequences of climate change. By 2020, a hefty USD 100 billion per year is to be available to them under the Green Climate Fund. Developing countries can already apply for grants to finance projects aimed at reducing greenhouse gas emissions and accommodating climate change. The board of the Green Climate Fund has approved funding for eight projects worth USD 168 million. All over the world, determination is huge to stop climate change. For the first time, all countries are ready to make a joint effort to reduce the carbon footprint and advance the shift towards low-emission and more sustainable development pathways. One is tempted to say that the time of the head-in-the-sand approach is now gone forever. “The Paris Agreement marks a turning point! It shows that the world is now technologically mature enough to shift away from coal towards a low-carbon economy. This is an important signal not only from developed countries, but also from developing countries, both having recognised that development based on coal technologies is no longer possible. Even the poorest countries committed themselves to reduce greenhouse gas emissions. Poland needs

to understand this and move on in the same direction. If we fail to follow global trends, we will be left on the margins of business processes, with outdated technologies that no one wants to buy,” says Prof. Zbigniew Karaczun, from the Warsaw University of Life Sciences (SGGW), an expert with Climate Coalition. “We have renewable energy sources, we can energy efficiency progress, so it’s time to make use of it. It is time to discard the 19th-century’s energy model based on large generating plants, complex transmission grids and fossil fuels combustion,” he adds. He also points out that while coal will remain one of Poland’s most important energy resources over the next several years, it has long ceased to drive the economy. The need to change the system is also highlighted by Andrzej Kassenberg, co-founder of the Institute for Sustainable Development: “The Paris Agreement is a very important signal and actually the last chance for Poland to effect a change for the better, a change towards a low-carbon economy, so our children and grandchildren can live in a clean and economically strong country.” The Paris Agreement clearly shows that changes leading to the low-emission development have accelerated. Unless Poland keeps up with the world economies, it will run a risk of becoming a kind of Europe’s open-air museum, which means adverse consequences for its competitiveness and innovation and therefore for its business performance on foreign markets. Harnessing the opportunity offered by the low-carbon transition involves changes in many industries: energy, transport, construction, agriculture and forestry. These changes have been outlined in the National Programme for the Development of Low-Carbon Economy drafted by the Ministry of Economic Development. “It is a step in the right direction but still insufficient,” states Andrzej Kassenberg. • 2/2016 polish market

Chemical Industry

POLISH CHEMICAL INDUSTRY

DESERVES A POSITIVE IMAGE

“Initiated on December 7, 2015 by the Polish Chamber of Chemical Industry, the campaign designed to promote a positive image of the Polish chemical sector creates new opportunities for strengthening the position of the sector in the national and international arena. It is our chance for developing the industry and securing its future in an often difficult legal and market environment,” Tomasz Zieliński, DSc (Eng), President of the Polish Chamber of Chemical Industry (PIPC), tells Jerzy Bojanowicz. What is the objective of the campaign? Our primary objective is strengthening the image of the Polish chemical industry – both in Poland and abroad. The campaign, held under the slogan “Polish Chemical Industry,” is a long-term project and is to achieve several individual goals. First of all, it is targeted at our 126 members, among which are the largest chemical producers, transport and distribution companies, subsidiaries of foreign companies, design offices, consultancies and scientific institutes. But it is also targeted at other organizations operating in the sector, enterprises and public institutions eager to support us in building and strengthening the image of the chemical industry. It is important to create a coherent message showing the real position of the Polish chemical industry in the economy and in comparison with other economic sectors, and the industry’s behaviour towards local communities and the natural environment. PM

The image campaign is strengthened by the “Polish Chemical Industry” Emblem. The campaign and the “Polish Chemical Industry” Emblem are instruments supporting PM

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the statutory activity of the Chamber and its members. Companies may use the Emblem in promoting their products and technologies, stressing in this way the quality that the Polish chemical sector stands for. Participating in the campaign and using the Emblem will not be in conflict with the marketing activities pursued by those who take part in the project. PIPC has the rights to the Emblem and the campaign. The Emblem will be granted by an Award Committee composed of outstanding personalities associated with the chemical sector. They will come from the academic and scientific research community, the public administration sector and industry. The Award Committee will also be checking whether the Emblem is used in the right way and take part in shaping the most important ideas of the campaign. The campaign is designed to build a positive image of the sector. Is this image that bad? It is not bad, but we can see areas where it could, and even should, be improved. For example, a coherent message is sometimes absent when it comes to environmental PM

protection and measures to enhance the competitiveness of the whole sector because it incorporates diverse areas of activity and a huge number of enterprises. The campaign will help us build such a message. Additionally, not everyone is fully aware of the importance of the chemical sector in daily life and its contribution to other sectors of the economy. In the campaign, we want to show the real influence of chemical products on our life – the fact that we cannot function normally without them. We want to show the positive impact of our activity on the life of local communities – the chemical industry is not only a big employer, but also supports various school, cultural and sporting initiatives. The campaign is also designed to indicate that the development of technology, production processes and other industries depends on the development of basic chemical products. And hence there is the need to use the campaign to show the real position of the chemical industry, which is a responsible sector of the economy as it makes some of the biggest outlays in Polish industry to improve production processes and the quality of the products manufactured. As regards reducing

We create chemistry that helps thirst love the sea.

By 2025 it is estimated that half of the world’s population will lack access to safe drinking water. A sorry state of affairs considering that two thirds of our planet is covered by water. Which is where chemistry steps in. We have developed Sokalan® antiscalant which acts as a scale control dispersant. This means that the equipment that desalts the water can desalt longer, to ensure there is the maximum output of fresh water. When salt water can satisfy our thirst, it’s because at BASF, we create chemistry. To share our vision visit wecreatechemistry.com/water

Chemical Industry

emissions and energy intensity, which means lowering our environmental footprint, the Polish chemical industry has made huge progress compared to other countries and virtually no one can equal us. The campaign is also aimed at indicating the problems we are dealing with. For the time being, the sector has developed favourably and coped successfully with many adversities. It has survived turbulence on the market and macroeconomic and geopolitical problems. However, there often emerge problems which require support to be solved. These include, for example, problems associated with climate policy and other regulations which have an impact on the functioning of the sector. The campaign, depending on the needs of those taking part in it and the needs of the sector, will be strengthening its activity and communication in the most important areas, like for example innovation, environmental protection, investment and job creation, to point to the need to develop support mechanisms involving, for example, fiscal policy and mechanisms to finance innovation because in this respect the chemical industry is a driving force behind other sectors. To improve communication, we have already started to issue a magazine entitled “Polska Chemia” (Polish Chemical Industry), we will be using Twitter and will launch a portal dedicated to these problems. How do you assess the contribution of the chemical sector to the Polish economy? Our industry provides employment to over 250,000 people, with every new job created in the sector contributing to the creation of up to eight jobs in other sectors. 30% of our sales goes directly to end consumers and as much as 70% to other sectors of the economy. Although we have an around 12% share in Polish industry, generating up to 7% of Poland’s GDP, what is important for us is our share in the industry which uses chemical products. The Polish chemical industry produces fuels, plastics, fertilizers, paints, basic chemicals and equipment, processes semi-products and finished products, and makes speciality chemicals and components of modern materials, like for example polymer composites. The chemical sector also involves a wide range of associated areas of activity: logistics, research and development, cooperation with the scientific community, industrial building and investment projects. Many sectors of the Polish economy would not be able to function without chemical products. The products are used by food producers, the automotive industry, electronics industry and PM

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the construction sector, which uses plastics, adhesives, paints, insulation materials and so on. It is important that domestic producers of these products have favourable conditions for development. Let us imagine a sudden increase in imports of these products and a rise in their prices. This would immediately affect other economic sectors. But Australian coal, for instance, is cheaper than coal extracted in Silesia. Coal is easy to transport. But in the case of chemical products, a range of regulations is in force. One of them is REACH, the EU’s integrated system for the registration, evaluation, authorization and restriction of chemicals. It does not allow chemical products to be launched on the market easily. This involves costs and, first of all, quality and safety requirements, which are of utmost importance in the case of chemical products. To meet these requirements one needs to ensure that the quality of raw materials, semiproducts and products for further processing, which often come from a single supplier, is stable. There are also environmental and certification restrictions, and logistical problems associated with the transport and storage of chemical products. This is not that easy. PM

Returning to the position of the chemical industry in Poland: how does it compare with other EU countries? The chemical sector plays a key role in development in every country where industry is an important part of the economy, for example in Germany, Britain and France. Of course, industry is at a different development level in individual EU countries. Other sectors of the economy are also developing so the percentage share of the chemical industry varies. But what is important is not the percentage share but real influence and ties with other sectors. For example, if Poland were a strong tourist destination the tourist sector would have a higher percentage share in GDP, but this would not lower the impact of the chemical industry on the economy. PM

The image campaign is to emphasize that the environmental footprint of the Polish chemical industry is diminishing. We have thousands of examples of measures contributing to a reduction in energy intensity, improvement in energy efficiency and significant cuts in carbon dioxide emissions: from simple projects involving the replacement of pumps or other equipment with more efficient and less energy-intensive pieces to the modernization of installations, PM

for example insulating pipes transporting heat and replacing large process and production lines. The in-house heat and power generating plants at chemical works, once built mainly to produce process steam, are among the most important factors in improving energy efficiency. At present, the plants are either modernized or provided with new generating units, which not only meet strict environmental standards, but also have much better efficiency parameters. The Polish Chamber of Chemical Industry is… … an employers’ organization, which has taken care of its members for 28 years. This is why the campaign will include our advocacy activity and opinions on legislative work in areas where the proposed regulations have an impact on the functioning of the sector. Consequently, our campaign will immediately embrace issues concerning climate policy and environmental regulations, which - in our view - should be adjusted to the state of the economy and industry, and the particular situation of individual members of the European Union in terms of raw materials, energy and development. We will be showing in the campaign how much the Polish chemical industry has done to improve its environmental footprint and that we are still responsible for the environment and are not shunning this responsibility. At the same time, we would like any reforms, for example reforms to emissions trade, to be wisely adjusted to the abilities of the chemical industry and its environment in individual member states. The most important thing for us is that in Poland the chemical industry is able to operate normally and that in the European Union it is able to function, develop and plan its future under sound competition rules. In Poland, we invest billions of zlotys in processes, projects and the launch of products on the market. We not only want to keep in the country the huge investment projects already carried out, but also further invest and develop. We want the Polish chemical sector to have a future guaranteed, especially on the domestic market, so regulations should enable our companies to plan their development, including investment projects, and carry out their strategies for future operations. This requires creating good conditions. Also needed is some care, protection and support from the public administration sector. We want to be present here, we want to exist here, but at the same time develop in a sustainable way, taking into consideration all aspects of our environmental impact. • PM

Economy

OUR WORK MAKES SENSE Jacek Janiszewski, Chair of the Curriculum Committee of the Welconomy Forum Recently you have received many prestigious awards, like the “2015 Ambassador for Integration and Cooperation” in addition to the Pearl of the Polish Economy. How did it influence your work? Does it motivate you? Of course. The fact that we have been recognised and our work is translating into results that are visible outside, is very ennobling and motivating. Aside from that, every award signifies that our work makes sense. Such distinctions make us try harder and harder every year. PM

In March we will witness the 23rd edition of the Welconomy forum. What topics will drive this forum?

Can you feel the impact of the forum and debates hosted during it on the shaping of political and economic processes taking place down the line? We can feel that very much, especially in Toruń, a city in which, in our opinion, our PM

activity forms part of the huge touristic and economic success. Eight years ago, when we were starting Welconomy, in Toruń there was one fairly decent hotel – Filmar – to which we could invite your guests. Today, there are several, and visitors coming to Toruń do not merely stop for a few hours, but stay here for whole weekends. Of course there are many more indicators of economic development in our region and Poland to which we have contributed by our activities. •

rca 2016, TO a m RU 8 -

As usual, international affairs, power engineering, commerce, the arms industry, agriculture, medicine and topics connected with man’s existence. Each year we touch on those topics that are in demand. We want the debates taking place during the conference to translate into solutions that will develop and strengthen our society and country.

12/2015 polish market

Events

BCC GIVES AWARDS TO THE LEADERS

Photo: BCC

The Teatr Wielki Polish National Opera in Warsaw has hosted the Grand Gala of Business Centre Club (BCC) which marked the ending of the 25th Polish Business Leader competition. On 23 January 2016 the Golden Statuettes of the Polish Business Leader were awarded to the heads of the top Polish companies, whereas the previous years’ leaders who had attained their market position received Diamonds in addition to their statuettes. The Special Award this year was given to Father Adam Boniecki, in recognition of his “bringing the principles and values of tolerance, courage, decency, integrity, restraint, and socio-civic dialogue closer to Polish people.”

Marek Goliszewski, President of BCC

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arek Goliszewski, President of BCC, greeting the Gala attendees, noted: “For many years we have stood here to appeal to each government to establish a new development vision for Poland. With the new government formed by the Law and Justice (PiS), which has presented its State-functioning philosophy, we are now to expect Poland to have more to say in the European arena, the economy to be stronger, and the citizens to be wealthier. BCC certainly wishes this vision will come true! A challenging goal has been set to achieve a growth rate 2-3% higher than in developed countries. This is more than welcome, as these are wealthy countries that rule the global roost. A wealthy country is a strong country, and a strong country has a strong economy. It’s good to hear that the government has announced its intention to foster entrepreneurship and to invest more in increasing the competitive edge of Polish companies as they generate jobs and salaries. Let us not forget, however, that foreign capital also brings new technologies. Entrepreneurs take a positive view on governmental plans to release PLN1.5 trillion for investments, with the loan guarantee level being set at PLN220 billion. The 200% amortisation of outlays on

Maciej Proliński research and development, reduced taxes on young entrepreneurs and on property used for economic purposes, the issuing of court decisions on economic matters within two months and building permits within 30 days, and not completing entrepreneurs’ settlements with the Fiscal Office until the actual payment is received, also merit recognition. We are also in favour of increasing the role of the Polish Defence Industry.” However, Mr Goliszewski was quick to add: “As US President Thomas Jefferson would say: ‘The best government is that which governs least.’ Let us jointly consider whether our government has not accepted far too much responsibility for financing hospitals, mines, the energy sector, construction, health resorts, seafaring, etc. BCC recommends establishing a viable Public-Private Partnership which has functioned with much success in global economies. We, therefore, propose that the Minister of Finance not abandon his predecessor’s ideas of appointing fiscal assistants for small enterprises, and setting up taxpayer service offices and the National Fiscal Information system. It would seem advisable not to modify the idea of a single annual inspection of enterprises, and to withdraw the ban on notifying managers of such inspections not in order to allow them to hide evidence

Events

Father Adam Boniecki, former editor-in-chief and current editor-senior of the “Tygodnik Powszechny” weekly

of any offences, but in view of the fact that such inspections are likely to frustrate daily activities and weaken mutual trust. It might also prove useful to introduce into our law, as suggested by President Bronisław Komorowski, the principle of the presumption of an entrepreneur’s innocence, originating in Roman law, and to enact the so-called entrepreneurs’ constitution,that is the Economic Activity Law, as the bill has been waiting to be considered by the Sejm for months.” Since 1992 BCC has granted Special Awards to prominent personages outside the business circle, for their substantial contribution to the development of entrepreneurship and the market economy in Poland. To date these distinctions have been given to Margaret Thatcher, José Manuel Barroso, Władysław Bartoszewski, Bronisław Komorowski and Tony Blair, to name but a few. This year the award has gone to Marian Father Adam Boniecki, former editor-in-chief and current editorsenior of the “Tygodnik Powszechny” weekly, and a good friend of Pope John Paul II. A laudatory speech for the award-winner was given by Prof. Karol Modzelewski, followed by a standing ovation. While expressing his gratitude for the distinction, Father Boniecki said: “I wish to thank you for including me in the group of truly outstanding winners of the BCC Special Award, but also for highlighting that this distinction is given to ‘prominent personages outside the business circle.’ I am not focusing on ‘prominence,’ which

I am quite sceptical about, but on being ‘outside the business circle.’ To my principal, Pope Francis, the phenomenon of ‘a priest-businessman’ appears especially outrageous. If it were not for the word ‘outside,’ I might again come in for some kind of a lightning strike… Standing next to those who are not from ‘outside,’ and who shape the business world, I would like to congratulate the award-winners and, especially, to express my appreciation for distinguishing those business people who use their best endeavours to create the common good. (…) In times past cultural development and care for human beings used to lie within the ambit of aristocrats and wealthy families. Nowadays the role of selfless patrons of the arts, and founders of schools, libraries, museums, social institutions and charities, is often assumed by business people. The area occupied by selfless actions aimed at creating the common good can be seen as a measure of business and businessperson’s success.” Social Solidarity Medals were also awarded in recognition of social involvement and assistance to those in need, dissemination of social responsibility in business, and shaping social solidarity. The idea behind the award of the Medals was outlined by Maciej Grelowski, President of the Main Board of BCC, jointly with Cardinal Kazimierz Nycz, and this year’s distinctions were given to Andrzej Balcerek, Member of the Supervisory Board of Górażdże Cement, Kristóf Hankó, President of the Management Board of McDonald’s Poland, and Father Kazimierz Lorek, Polish Provincial Superior of the Clerics Regular of St. Paul Barnabites. Mateusz Morawiecki, Deputy Prime Minister and Minister of Economic Development, complimented all the winners, also pointing to their social and charity activities, and admitting: “I simply love Polish business and entrepreneurship! We are about to face a major redevelopment of the economic models based on social solidarity.” A concert specially prepared for the guests was given by Waldemar Malicki and his Filharmonia Dowcipu. During the cocktail party in the foyer Father Boniecki signed his book. An auction of pieces of art was also organised by BCC, along with a fashion show and a presentation of finalists of the Miss Egzotica contest. • Business Centre Club was founded in 1991 as a multilevel organisation supporting enterprise in Poland. BCC is an elite business club and the biggest private employers’ organisation in Poland, affiliating over 2,500 members – entrepreneurs and companies. The group of BBC members comprises major international corporations, financial and insurance institutions, communications companies, leading Polish producers, higher education institutions, and publishing houses

Winners of the Golden Statuettes of the Polish Business Leader 2015 AMERICAN HEART OF POLAND SA Paweł Buszman, President ANKOL sp. z o.o. Czesław Kolisz, President and CEO ASTOR sp. z o.o. Stefan Życzkowski, President CAPRICORN SA Maciej Dobrowolski, President GABI-PLAST P.P.H. Gabriela Kośmider Gabriela Kośmider, Company Owner GDAŃSKIE PRZEDSIĘBIORSTWO ENERGETYKI CIEPLNEJ sp. z o.o. Igor Wasilewski, Member of the Management Board IDS-BUD SA Marek Stefański, President of the Supervisory Board KLINGSPOR sp. z o.o. Jan Gaj, Board Member and Managing Director KRYWAŁD-PLAST sp. z o.o. Marek Rasiński, President MULTIFARB sp. z o.o. Józef Bigos, President PIT-RADWAR SA Ryszard Kardasz, President ROCKFIN sp. z o.o. Marek Gorzelewski, Chief Financial Officer WDX SA Dariusz Bąkowski, President of the Supervisory Board ZAKŁAD HANDLOWO-USŁUGOWY HASAN Antoni Hasenbeck Antoni Hasenbeck, Company Owner ZAKŁAD PRODUKCJI AUTOMATYKI SIECIOWEJ SA Piotr Baranowski, President ZIEL-BRUK.MAKAREWICZ Edward Makarewicz Edward Makarewicz, Company Owner ZUE SA Wiesław Nowak, President and CEO

In this edition of the Polish Business Leader awards, 27 companies were nominated for the Golden Statuette. One of those nominated in the Small Enterprise category was BetaMed SA, a leader on the Polish medical services market offering long-term nursing care in the patient’s home, and the company’s President Beata Drzazga. Beata Drzazga is also one of the Ambassadors of the Polish Network of Women Entrepreneurship. We present the company and the Polish Network of Women Entrepreneurship Ambassadors more extensively in this issue of “Polish Market.”

2/2016 polish market

Events

GÓRAŻDŻE CEMENT

A SOCIALLY RESPONSIBLE ENTERPRISE

The Social Solidarity Medal is a prestigious award granted each year by the Business Centre Club (BCC), an organisation whose overarching activities include fostering the social involvement of enterprises and disseminating the idea of the social responsibility of business. During this year’s Grand Gala of Leaders, Andrzej Balcerek, Member of the Supervisory Board of Górażdże Cement S.A., joined the prominent group of awardees.

From left: Andrzej Balcerek, Member of the Supervisory Board of Górażdże Cement S.A., Kristóf Hankó, President of McDonald’s Polska and father Kazimierz M. Lorek

ll of Andrzej Balcerek’s 40-year professional career has been connected with Górażdże Cement S.A. He climbed up the corporate ladder until in 1991 he was appointed President of the Board which he remained until September 2015. Andrzej Balcerek guided Górażdże Cement through the privatising process in 1991-1993, and from the moment of taking the position of President, used his best endeavours to strengthen the company’s leadership in the market. While leading the Górażdże corporate group, he combined a natural business-specific focus on profit and corporate development with outstanding care for employees, local communities and the natural environment, going far beyond the prevailing standards. Transforming the Górażdże Cement Plant into one

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of the most efficiently operating clinker production plants in Europe, and also setting up the Górażdże – Aktywni w Regionie (Active in the Region) Foundation can be recognised as his unquestionable business successes. Andrzej Balcerek has also received several other distinctions, including the BCC-funded Golden Statuette of Polish Business Leader, Medal for Services to the National Economy of the Republic of Poland, the Pro Ecclesia et Pontifice Medal, and the Karol Miarka Prize. It was at his initiative that the Górażdże – Aktywni w Regionie Foundation came into existence in 2012. Its founders included Górażdże Cement, Górażdże Beton and Górażdże Kruszywa, i.e. the three companies forming the Górażdże Group. The principal objectives of the Foundation comprise supporting various initiatives, based on grant

programmes, at both the local and regional levels, oriented towards science and education, culture and monuments protection, environmental protection, sports and diversified charities, to name but a few. In as little as four years the Górażdże Foundation has co-funded as many as 217 projects for a total amount exceeding PLN 2,600,000. Moreover, the Foundation is keen on launching its own social campaigns, such as health-oriented activities promoting a healthy lifestyle, namely Opolskie Fit (2013) and Rowerowa (Opolszczyzna Cycling through the Opole Region 2015). The Pokolenie Plus (Generation Plus) programme is also worth noting, its objective being to activate the elderly residing in the rural areas of the Opolskie province. The programme in question has been considered one of the most interesting topical ventures, and its principles continue to be implemented by Pokolenie Plus Clubs, established in several localities involved in the programme. The “Aktywni i Pomocni” Active and Helpful Employee Voluntary Programme, which develops a sense of social responsibility, also among the Górażdże Cement staff, is another initiative that merits recognition. “Such measures not only strengthen our position as a socially responsible company, but they also bring tangible benefits to the local community in our region and support the activities of several NGO’s,” said Andrzej Balcerek. In view of Andrzej Balcerek’s overall accomplishments, together with the positive footprint of the Foundation which he set up, the BCC-funded Social Solidarity Medal appears a well-deserved distinction for the truly impressive achievements made by the company in the area of business and social activ• ities.

Our Guest

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Infrastructure

SURE, WE CAN! A hundred years after the apogee of the women’s suffrage movement, the spectre of the “glass ceiling” is again hovering over Europe. Despite the generally applicable legislation, gender continues to be a factor of differentiation and discrimination.

Jan Sosna

deas on “how to fix it” do not always meet with approval. For the lack of consensus from the majority of member states, the European Commission was forced, a few days ago, to abandon its efforts towards the introduction of the 40% gender parity in management and supervisory boards. Those in favour of gender balance in corporate decision-making pointed to the positive effect of the quotas on electoral lists, which virtually eliminated the problem of the absence of women in elected office at all levels. They also relied on a number of reports and studies suggesting that a strong (over 30%) presence of women on corporate boards feeds into better financial results. The highest levels of female representation in leadership positions occurs in Finland (30%) and Latvia (29%), whereas the 40% threshold is exceeded in Norway (44%) and Iceland (49%), both of which are outside the European Union, though. Poland was among the countries contesting the European Commission’s gender-balance initiative. The introduction of the quota system on electoral lists has already demonstrated that the parity rule requires – besides determining its consistency with the constitutional principle of equality before the law – additional specific provisions, such as the so-called slider, to be effective. Generally, Poland endorsed the view that the imperious regulations alone will not solve the problem of men’s domination in various spheres of public life. This is probably the most apparent on the labour market. The 2014 report of the Ministry of Labour and Social Policy highlights a trend showing that women account for about 52% of the population aged 15 and above, for 45% of economically active population, and for over

61% of economically inactive people. The unemployment rate among women is higher than the unemployment rate among men. It is also more difficult for women to return to work after a long break, especially after a maternity leave. The situation of women seeking employment for the first time is also more challenging than in the case of men. Despite the fact that unemployed women are younger and better educated than men, they tend to remain longer in the records of employment offices. The result of it is reduced and delayed fertility. In the work-family reconciliation rankings published recently, Poland fares 6-7 times worse than Denmark or Sweden, with only Romania and Greece behind it among EU countries. Greater child allowances is what has become a key point of election campaigns and a top priority on Poland’s new government’s agenda. Meanwhile, according to research conducted for the last few years by, among others, the Warsaw School of Economics, “Polish women find employment to be a prerequisite for rather than a barrier to having children.” The Polish system supporting the parenthood and large families has been given a boost over the last years, its weak point being, however, that allowances depend on the nature of the employment contract and social security. As a result, almost of 30% women – or even up to 50% in the regions marked by high unemployment and prevalence of the so-called junk contracts – are not eligible for such benefits at all. Still, it is true that attempts made in Poland in order to eliminate the “glass ceiling” do bring some results. The parity policy has been successful in raising the number of women involved in public life. The female head of government was

succeeded by another woman. The percentage of women in public administration and local government in steadily growing. Women are becoming more and more visible in public debate, often heading NGOs. However, while in the media, especially those mainstream outlets, we may soon call for parity in defence of men, few women manage to break through as experts and authority figures in areas such as economic policy. This is probably due to women’s weakening participation in economic governance. Were all those women appointed as CEOs of banks and large companies over the last years a wave rather the vanguard of a new generation in business? A glance at the latest list of the 100 richest Polish businesswomen suggests that an increasing number of them owe their position to family wealth. Do women prefer staying in the shadow? Or perhaps the media fell asleep somewhere around Maria Skłodowska-Curie and are too lazy to trace ladies whose achievements are worth showing? In a country where women account for 40% of scientists, which is 10% above the European average? In a country where the 2015 VIPI (Very Important Polish Innovator) title was awarded to Olga Malinkiewicz, a precursor of a low-cost method of producing solar cells based on perovskites, Vice-President of Saule Technologies, a company hailed as the “Startup of the Year 2014” and working on the commercial use of perovskites for the production of photovoltaic cells? Perhaps it is the same in other fields. Although today’s idol of the masses is Robert Lewandowski, the Polish name most frequently appearing in the global information services in the last five years is that of Agnieszka Radwańska. • 2/2016 polish market

Food Industry

WOMEN IN LEADERSHIP Urszula Ciołeszyńska, founder of the Polish Network of Women Entrepreneurship Ambassadors, talks to Ewelina Janczylik-Foryś.

What is the story behind the Women Entrepreneurship Embassy? It all happened in 2009, when the European Commission came up with the project of the European Network of Women Entrepreneurship Ambassadors. I was invited to the inaugural conference and while there I realised how important it was to promote entrepreneurship, especially among women. It is important to emphasise that we are talking about enterprising women – women who have taken the risk of setting up and running their own businesses, who provide jobs and even implement some very interesting innovative ideas. Moreover, many of these women have to reconcile their family and business lives. We should support such women, even if only through words of recognition and encouragement. Women who successfully combine business and family lives can set an example and become an inspiration for others. It is by talking to women that I realised the importance of attitude. Being an entrepreneur does not necessarily mean being an enterprising person. In many cases, you run a business, which makes you an entrepreneur, but it does not have to mean that you are an enterprising individual. There is a difference. Being enterprising is a state of mind – resourcefulness, creativity and decisionmaking abilities. When I went to Stockholm for the conference, I met there women telling their stories of how they were inspired to set up their own businesses. When in 2009 I was appointed the Ambassador of the European Network of Entrepreneurship Ambassadors and met all these remarkable women, I felt compelled to establish the foundation and create the Polish Network of Women Entrepreneurship Ambassadors, PM

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which now brings together over 300 women from across Poland. The Polish Network of Women Entrepreneurship Ambassadors follows the pattern of the European Network of Women Entrepreneurship Ambassadors, bringing together women who successfully run their business and engage in non-business community work. The mission of the Ambassador of Women Entrepreneurship in Poland is to be a paragon and promoter of entrepreneurship, innovation and new awareness required for the further development of the modern economy. We promote role models, as expressed in our motto - “Success can be yours – be an example for others”. That is a wonderful motto. Do the Ambassadors conduct any workshops or meetings at schools, or universities, to encourage young women to set up their own businesses? We would very much like to. But, remember that our Foundation was founded on passion. We have no actual staff, and no financing. Women who are active in the Network get together and organise various events, during which they share their experiences. Then, there is also the initiative of the American mentoring programme. PM

Do you mean the Million Women Mentors? Correct. I have been invited by the coordinator of the American Million Women Mentors programme (MWM) to cooperate with the programme on promoting the idea of mentoring in Poland and Europe. The MWM is currently being carried out in the U.S. It has been launched and coordinated by a Washington-based organisation called STEMconnector. This organisation has encouraged millions of PM

scientists, IT specialists, engineers, technologists, chemists, physicists and mathematicians to become mentors for their female pupils and students, and young women of various ages, to make them more interested in professional careers and strengthen their practical skills in the area of STEM (Science, Technology, Engineering, Maths). The project aims to support women of all ages in their efforts to gain practical skills in the areas of new technologies and digital competence, primarily via an online platform. As a partner in this project, I will be involved in making the STEM-mentoring vision come true on the basis of best practices. Our plan by 2020 is to elicit cooperation and motivate for action a range of leaders and representatives of institutions and organisations from the sectors of Science, Local Government and Business. I have set the objective of engaging 20,000 Polish scientists and practitioners, working in both Poland and abroad, by 2020. Via the online platform, all mentors will be able to cooperate with us wherever they are. Who can become a mentor? Mentors can be men and women who have practical skills, and, in line with the rules of the MWM project, declare their willingness to share their knowledge and practical skills for at least 20 hours a year. It is important to add that via the advanced online platform, on which the MWM project is based, all mentors can work from anywhere in the world, so we can have mentors living both in Poland and abroad. In addition, at our Foundation’s initiative, the programme has been extended to include the promotion and encouragement of entrepreneurship. • PM

Powerful Businesswoman

HEALTH ABOVE ALL Beata Drzazga - founder, owner and president of BetaMed SA, a private firm with a headcount of nearly 3,000 employees, operating 84 branches in 11 regions of Poland. It has been in existence for 15 years now and is Poland’s largest healthcare unit, providing longterm nursing home care for the elderly, chronically sick or disabled people. From its very beginnings, the firm has been developing dynamically both in Silesia and in other regions of the country. It specialises in providing nursing care as part of the contract with the Polish National Health Fund (NFZ) and long-term care for mechanically ventilated patients.

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Powerful Businesswoman

n a quest to expand, Beata Drzazga launched, in July 2014, the part A of a new BetaMed Medical Active Care Clinic in Chorzów, which includes: • Care and Treatment Centre for Mechanically Ventilated Children and Youth (under a contract with NFZ) • 24-hour care for minor patients requiring medical equipment such as ventilators, oxygen concentrators, etc.; • Mechanical Ventilation Department for Adults (private services) - specialised health programmes tailor-made to the health status and needs of patients; • Care and Treatment Centre (under a contract with NFZ) - treatment, rehabilitation, nursing care and psychotherapy, roundthe-clock care; • General Rehabilitation Department for Adults (private services) - specialised health programmes tailor-made to the health status and needs of patients; • private daytime care - for the elderly and disabled people who might need emergency care and who want to spend time with people of similar age; • Outpatient Rehabilitation Centre (under a contract with NFZ) – a wide range of rehabilitation treatments: physical therapy, physiotherapy, cryotherapy and hydrotherapy; • Outpatient Rehabilitation Centre (private services) - an innovative point-of-care diagnostic devices and a wide range of rehabilitation treatments.

In the near future, Beata Drzazga plans to open parts B and C of the BetaMed Medical Active Care Clinic. There will be new wards and clinics, as well as lecture halls and conference rooms, and aesthetic medicine services will be provided. Beata Drzazga wants to boost the cultural and recreational range for the elderly, and especially encourage them to live an active lifestyle. She is furthermore planning to open a club & café for local residents, with a wide range of events and activities in the field of health, beauty, fashion, etc. The project is aimed at making the seniors more active so that they can enjoy every moment of their lives and preserve health and fitness as long as possible. Beata Drzazga has always been committed to ensuring the highest quality standards of medical services and the patient care, as confirmed by numerous certificates and awards. BetaMed S.A. has been certified to ISO 9001:2000 and to ISO 27001: 2013 Information Security Management System, and is successfully re-certified every year. In recent years, the company and its owner have received many other awards. Among the most important of them is the Teraz Polska Emblem, the title of Company with a Future, Golden Laurel of Abilities and Competence in the Social and Economic Leader category, Golden Laurel of Abilities

...WANTS TO BOOST THE CULTURAL AND RECREATIONAL OFFER FOR THE ELDERLY, AND ESPECIALLY encourage THEM TO LIVE AN ACTIVE LIFESTYLE. and Competence in the Enterprising Woman category, nomination for Polish Business Leader Golden Statuette, Golden Certificate of Reliability, the award We Bet on Quality in Healthcare, Silesian Business Caesar, BCC Diamond, the certificate of Medical Centre of 2015, the title Humanitas Woman – award for Successful Women in the Business category, the title Manager of the Health Market, Certificate of the Eurorenoma European Register of the Reputable, Certificate of Polish Quality Club, title of Manager of the Year 2014 in Silesia, Business Credibility Certificate, BCC’s European Medal, award in the Proud of You business poll, the title of Businesswoman of the Year 2014, Medal for Services to Śląskie province, the title of Laureate and Golden Emblem of Quality International, the title of Company of the Year in the Medical Sector, and nomination for the Emblem of the Medical Centre Quality Leader in Poland. Beata Drzazga is also a fashion passionate and owns Dono da Scheggia, a high-street dress shop for fastidious and elegant women. It offers collections of brands coming from Milan, London and Paris, exclusive Casadei shoes, and Gemma evening gowns. Dono da Scheggia also organises fashion shows and participates in events such as Silesia Fashion Day. Beata Drzazga often sits on juries for young designers’ competitions. She has funded a trip to Milan for the winner of this year’s edition of “Young Wave” (Polish: Młoda Fala).

Beata Drzazga continues to improve her qualifications through participating in conferences and in trainings in Poland and abroad. After graduating in human resource management, she enrolled for postgraduate studies in healthcare management and European integration. She also completed a two-year course in geriatrics and three-year PhD studies (viva is pending), and she is now doing MBA studies in Warsaw. •

2/2016 polish market

Cultural Monitor

GREAT MUSICAL DIVERSITY MARKS THIS YEAR’S

FIRST CULTURAL MONITOR. THE ALBUMS ARE RECOMMENDED BY MACIEJ PROLIŃSKI. “Maksymiuk. Sinfonia Varsovia” - Warner - 2CD

erzy Maksymiuk, a legendary Polish conductor, is famous for his charismatic music interpretations and for promoting Polish music across the world. He has over 100 albums and more than 200 first ever performances of contemporary compositions to his credit. His original personality is known from numerous anecdotes. He came to fame in the 1970s as head of the Polish Chamber Orchestra, with which he was conquering the world. Under his baton, the orchestra gave concerts at such important places as New York’s Carnegie Hall and the Proms in London. The Polish Chamber Orchestra gave rise in 1984 to the world-renowned Sinfonia Varsovia orchestra. At the height of his success, Jerzy Maksymiuk became in 1984 chief conductor of BBC Scottish Symphony Orchestra and held the post for 13 years. He made many tours of Europe with the orchestra. He also appeared with such well-known ensembles as the London Symphony Orchestra, Orchestre National de France and Tokyo Metropolitan Symphony Orchestra. The artist’s forthcoming 80th birthday – Jerzy Maksymiuk was born on April 9, 1936 – is marked by the release of a very special two-disc album. It features both carefully remastered archival recordings of the Polish Chamber Orchestra and new interpretations recorded in 2015 with Sinfonia Varsovia. The compositions have been personally selected by Maestro Maksymiuk. The discs contain pieces by Mozart, Bach, Rossini, Debussy, Bartók and Stravinsky. Music written by Polish composers has always been an important part of Jerzy Maksymiuk’s repertoire so it had to make part of this splendid jubilee collection as well. Among pieces by Grażyna Bacewicz, Tadeusz Baird and Adam Jarzębski is a new composition by the maestro himself - “Vers per archi.” The album is a sentimental journey back to the times when Jerzy Maksymiuk’s chamber orchestra showered the audiences at its first concerts with the fireworks of artistic skill and artistry unprecedented in Polish music performance. It is also a document of the present-time collaboration between the famous conductor and his beloved orchestra. The album is a valuable compendium, marking the most important points in the history of one of the most unusual artistic friendships in Poland. “The conductor must first of all watch over the correctness of the performed score. However, he always adds to the musical essence something which goes beyond the score. This results from his personality. One adds fire, another adds contemplation. The conductor sets his seal. This requires not just knowledge, but also the ability to control the orchestra. The conductor deals with a large group of people. They have to be guided. The conductor should also be a good organiser, because there is not much time before a concert. Intuition is also useful. But the starting point is the craft and reliability. Inspiration is an added attribute. Perfection is created first of all by precision. This is the first item in my conducting ‘catechism.’ This is the way I have been doing it. And you know what? I think it has worked,” the maestro told me in 2014 in an interview for “Polish Market.” The jubilee album is a strong musical confirmation that “it did work and still works.” Every sound is put here unerringly - like a rock created by nature – it could not have been different. And this brilliant technique is coupled with a visionary interpretation. The point is for such journeys in time to draw energy from each other. And this is really what we experience when we listen to the album.

David Bowie - “Blackstar”- Sony - CD

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Blackstar,” David Bowie’s 28th album, released on January 8, two days before his death, also debuted at number one on album charts across the world, including Billboard 200. During his career of over 50 years Bowie always surprised his audiences and his final album, with which he says goodbye to us, is no exception. This time, it is just seven compositions, but over 40 minutes of new music, from the “chameleon of rock’n’roll,” a testament of a free man’s desire to defend his own convictions and individuality. In terms of music, the album is full of raw power – playing without a make-up or masks. It is a brilliant mixture of styles – rock, pop, electronic music and jazz – with excellent solos because members of Bowie’s new band are popular New York jazz musicians. Saxophonist Donny McCaslin, guitarist Ben Monder, keyboarder Jason Linder and drummer Mark Guilian are musicians with open minds able to skilfully balance between styles and enable the frontman to place all these inspirations in a new order. Bowie’s voice and his words – sometimes too arty perhaps, but sometimes as simple and mysterious as in the beautiful final song “I Can’t Give Everything Away – will not let you forget the album and the artist.

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CM – January 2016

Cultural Monitor

Adele - “25” - Sonic - CD

he third studio album by British singer Adele has been a great hit of music charts since its release in November, breaking sales records on many markets. Its title, like the titles of her two previous albums, “19” and “21,” refers to the singer’s age at the time of its production. “Pop doesn’t come more perfect than this,” wrote enthusiastically a “Telegraph” reviewer and gave the album the maximum score of five stars. Indeed, this is definitely world-class pop music, melodious and fascinating. Years go by, but Adele remains the same: instantly recognizable with her very strong voice. Her art has its own mark. But I think that in terms of composition “25” is merely a preview of the original style to which uncompromising artists aspire. In this respect, “25” is not exciting. However, the greatly popular album and singer are a good antidote to the Polish bands who sing completely banal songs in English, imitating popular conventions.

Magda Umer- “Duety. Tak młodo, jak teraz”- MTJ Agencja Artystyczna - CD

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I have asked artists whom I either love, or like, or respect to work with me,” says Magda Umer, a Polish singer and director, to explain her choice of the personalities she has selected for her duets. Among the artists are actress Krystyna Janda, actors Piotr Fronczewski and Janusz Gajos and singers and musicians, including Anna Maria Jopek, Wojciech Waglewski and Grzegorz Turnau. Apart from the artists, it is also the well-chosen repertoire that deserves attention. The disc features songs of Magda Umer’s friends: Agnieszka Osiecka, Jeremi Przybora, Seweryn Krajewski and Jan Wołek. To enjoy this music you have to listen to it with concentration. And then you can see again that Umer is an outstanding master of mood and stories about transience, and our journey through life and time. In a few places this work seems to be something more than merely songs.

Cree - “Heartbreaker”- Universal - CD

t is the 7th studio album recorded by Cree, one of the best Polish blues-rock bands. Its frontman is Sebastian Riedel, a son of Ryszard Riedel, a legend of Polish blues and the unforgettable vocalist of the Dżem band. The songs making up the album represent a combination of the guitar rock sparkle and lazy blues climate. They are packed with melodies and strong emotions. “Heartbreaker” proves that rock and blues can still be discovered anew. Of course, the album does not discover a completely new world of sound. It simply effectively infuses this distinguished mechanism with new life. Youthfulness, naturally sounding riffs and fleeting ballad melodies have always seemed to be the band’s strength. The same is the case this time. The difference is that this youthfulness is now more mature. The guitars still provide a good background for Riedel’s distinctive voice. And the lyrics, which are mostly about love, incorporate both tender and rebellious aspects of rock.

Janusz Radek - “Popołudniowe przejażdżki” - Universal - CD

anusz Radek is not only a popular, distinctive and award-winning singer, but also a theatre actor. For years he has accustomed us to a great repertoire and theatre interpretations. This time, however, he invites us to a completely different and simpler world of song. The producer of the album is Leszek Biolik. The recordings were made by reputable Polish musicians chosen by Biolik, who also plays here the bass guitar parts. But these are not “ordinary” songs. These are stories appealing to imagination, full of improvisation, ethereal climates and intensive rhythms. A great asset of the album is the unique atmosphere of the songs and excellent performance. It is certainly a mature collection as some music thoughts have been ordered here. And it gives you pleasure to capture among them something which appeals to you.

Adam Pierończyk & Miroslav Vitouš - “Wings” - For Tune - CD

he latest album recorded by Adam Pierończyk, one of the most interesting Polish saxophonists, with double bassist Miroslav Vitouš, a legend of world jazz, also deserves to be highlighted. Pierończyk has been present on the Polish music scene for over two decades. The career of Vitouš, once associated with the Weather Report band, an icon of jazz-fusion, is even longer. Therefore, there are no ill-judged decisions on “Wings.” And experience involves respect for one’s partner in music. “Wings” is a fascinating dialogue: organically tied and perfectly thought-out. Additionally, it is a recording of true emotions resulting from a real meeting of musical personalities. The final product is a sublime, atmospheric and very valuable album, which brings us onto the highest level of the performing art, showing clearly the whole beauty of the compositions, which are mainly by Pierończyk. The album is also an example of how to carefully listen to what the other side has to offer. And listening gives rise to important jazz art. 2/2016 polish market

Culture

THE GENIUS OF MOZART

AT THE BEGINNING OF THE NEW YEAR! The New Year at the Teatr Wielki-Polish National Opera in Warsaw starts on 16 January with the premiere of Wolfgang Amadeus Mozart’s “La clemenza di Tito”, a co-production with the Belgian Théâtre Royal de la Monnaie in Brussels. The performance will be staged by eminent Belgian theatre and opera director Ivo van Hove, with a stage and lighting design by Jan Versweyveld and costumes by An D’Huys. Maciej Proliński

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power-hungry woman, Sesto vows to assassinate Tito. The coup fails, but the would-be killer is pardoned ... The newest staging of “La Clemenza di Tito” is made by Ivo van Hove, one of the greatest European theatre-makers. He began his career as a stage director in 1981, working with plays he had written himself. He was artistic manager at AKT, Akt-Vertical and De Tijd, successively. His performances can be viewed today at all major European festivals. He is invited as a guest director to theatres in Hamburg, Stuttgart, Berlin, Munich, London and Paris, and also the US. Another passion of his is opera. He has accomplished a number of significant operas in the Flemish Opera in Antwerp,for example the whole series of Wagner’s “The Ring of the Nibelung.” Among the many important awards that van Hove has received throughout his career is the prestigious title of Knight of the Order of Arts and Letters awarded to him in 2004 by the French government. Stylistically pure, with an elegant stage design and a clear concept of characters (according to the reviewers), the original staging (Théâtre Royal de la Monnaie in Brussels, 2013) was also lucky to have a great cast, with much of the success being owed to the local choir and orchestra. Time will tell how far it is going to be reproduced in Warsaw. Worth mentioning is certainly the presence of Polish voices. The cast will star, among others: Charles Workman, Ewa Vesin, Urszula Cichocka, Anna Bernacka, Natalia Kawałek and Katarzyna Trylnik. The Orchestra and Choir of the Teatr Wielki-Polish National Opera will be led by Benjamin Bayl, an Australian conductor, who is equally at home with contemporary and classic repertoire. “It is yet another confirmation of the very good

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La Clemenza di Tito” belongs to opera seria (Italian: serious opera), a style drawing upon the Neapolitan school. The primary musical emphasis of opera seria is on the solo voice, chorus and orchestra playing a circumscribed role. “La clemenza di Tito” is one of the last scores of Mozart who finished it two months before his death. It was written in parallel with the brilliant “Magic Flute”, in haste and under pressure, because it was to be ready for the ceremony of coronation of Emperor Leopold II, Holy Roman Emperor, as King of Bohemia. The opera premiered on 6 September 1791 at the Estates Theatre in Prague. The Polish preview took place on 20 March 1806 in Poznań. At the time of launch, the Mozart’s final opera was not a great success, but then it gradually rose to acclaim over time. Still, even today, it remains probably one of the least known of his operas, while in fact its arias, duets and trios, or arabesque themes accompanied by the symphonic power of orchestra and choir make for the unparalleled genius of Mozart! Mozart was the chosen one, and his immortal music is a proof of him making time and again a miracle to reconcile fire with water into a coherent and delightful entirety. And this is what makes you simply regret, once the last chords ring out, that this is the end (the opera consists of 2 acts only), when you actually would like to listen to it more and more ... The libretto tells the story of Emperor Tito, in the times of ancient Rome (79-81 AD), but in fact it is the praise the clemency of a ruler who is so clement as to forgive an act of treason. Vitellia, rejected by Emperor Tito, wants revenge and stirs up his friend Sesto, a patrician who is in love with her, to act against him. Blinded by passion for the

contacts we have with the La Monnaie Theatre in Brussels. Ivo van Hove is a star of the European theatre, and his staging of ‘La clemenza di Tito’ is Mozart contemporarised, and I hope that the audience in Warsaw will be as impressed as it was in Brussels. And it is the announcement of the plans we have in connection with Mozart in the future seasons,” says Waldemar Dąbrowski, managing director of the Warsaw opera house. •

Culture

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In December 2015, after almost a quarter-century in office, Prof. Andrzej Rottermund completed his stint as director of the Royal Castle in Warsaw. An outstanding personality of Polish culture, he leaves big shoes to fill for his successor, whose name is not known yet. Maciej Proliński

ndrzej Rottermund was born in Warsaw in 1941. He graduated in Art History at the University of Warsaw. For 20 years, he worked at the National Museum in Warsaw, first as an assistant to its famous director Prof. Stanisław Lorentz, then as a deputy director in the years 1975-1982. Since the beginning of his career, he was strongly committed to the reconstruction of the Royal Castle, decided by the state authorities in 1971. The reconstruction was greatly supported by conservators, art historians and architects, and cheered by millions of people throughout the country. In 1973, Andrzej Rottermund became a member of the Castle’s Architectural Commission, following his earlier involvement in the rehabilitation of the Royal Castle. Appointed as the Castle’s director in 1991, he almost immediately proceeded to the final stage of its reconstruction, including the furnishing of the Castle’s interiors and the acquisition of castle boroughs, especially the Kubicki Arcades, which required extensive renovations. “What is most important for us, besides daily knowledge sharing about Poland’s history, are exhibitions. The most notable is the cycle that shows Polish relationships with our neighbours. Hence, for example, the exhibition ‘Under One Crown’ showing one of Europe’s first state unions, I mean the reign of the Wettin. Another important exhibition was one devoted to Polish relationships with Sweden – ‘The Eagle and Three Crowns’. We

also treated the theme of Polish relationships with the State of Moscow in the 17th century, as well as with the European culture - hence the exhibition ‘Thorvaldsen in Poland’. There are many exhibitions showing Polish relationships with the Grand Duchy of Lithuania, like for example ‘The Treasure of Vilnius’. It is worth mentioning that the Castle has recently opened the renovated spaces. The CopperRoof Palace became a kind of our university, as it houses lecture halls - a place to hold workshops. The beautifully renovated Kubicki Arcades attracts visitors not only with its form, but also with its new functionalities as a venue for important artistic events: exhibitions, performances and concerts. The Kubicki Arcades is supposed to serve in the future as the main entrance to the Royal Castle, the great hall leading to the exhibition area. But the Arcades itself - as I said - will see many things going on, too,” he told “Polish Market” in 2009, when asked about which of the Castle’s projects were particularly important to him. In 1990-1996, Prof. Rottermund chaired the Polish National Committee of the International Council of Museums (ICOM), and in 2011-2015, the Polish National Commission for UNESCO. Since 2007, he has represented Poland in the International Committee of the History of Art (CIHA), and since 2005, he has sat in the Jury of the Honorary Pearls of “Polish Market”. He is the author or co-author of some 100 books, articles and essays on the history of art, architecture, urban planning,

museology, as well as the Royal Castle. “The Atlas of Warsaw’s Architecture”, co-written with Juliusz A. Chrościcki in 1977, was the primary source of knowledge on Warsaw’s landscape for several decades. The last press conference with Prof. Rottermund in his capacity as the Royal Castle’s director was organised on 14 December 2015. It was a ceremony of handing over of the latest precious gifts: the Przeworsk Belt, ancient maps of Poland and the rare view of Warsaw (published after 1821, based on a drawing by watercolourist Zygmunt Vogel). “I want to take this occasion to remind that when the Museum of the Royal Castle in Warsaw was first open, in 1979, our collection was very modest, including mainly the surviving items of the Castle’s pre-war equipment. However, it was not long before a string of gifts started to flow in from foreign institutions and governments of, among others, Britain, Germany, or France, but above all from individuals: Prof. Karolina Lanckorońska, Andrzej Ciechanowiecki, Teresa Sahakian, or Dr. Tadeusz Niewodniczański - to whom we owe wonderful collections. Today, more gifts are added to them,” he said. Prof. Rottermund also announced that in the spring of 2016 Vienna’s Belvedere will open an exhibition dedicated to King John III Sobieski, now prepared by the Royal Castle in Warsaw, the Wawel Castle in Kraków, the Palace Museum of King John III Sobieski in Wilanów and the Royal Łazienki • Muzeum in Warsaw. 2/2016 polish market

THE 14TH EQUESTRIAN GALA Infrastructure

THE LAUREATES OF

DECORATED AT KLICZKÓW CASTLE

he Equestrian Gala has been organised at Kliczków Castle for 14 years now. Over the years this grand fest for equestrian circles has won many friends and seen many laureates. As every year, in addition to singing equestrian songs and engaging in long talks at the table, there was also time this year for dancing and honouring those who have especially contributed to equestrianism in Poland. The gala was hosted by Henryk Sawka, a draughtsman and satirist, and, in private, a horse lover. This year, among the winners was Joanna Kluzik-Rostkowska, whose swift actions had made it possible to include the profession of rider in the Polish education system. Interestingly, it was the first such action in Poland to facilitate the education of new qualified personnel. Marek Trela, Director of the Janów Podlaski Stud, was another laureate. His horses fetch record-breaking prices at Arabian horse auctions. He currently holds last year’s auction record. Pepita, a horse that received the highest bids for a single horse, was raised in his stud. The prize for Mr Trela was collected by Anna Stefaniuk, chief horse breeder. A distinction was also awarded to the Polish Horseback Archery Association for introducing archery to Polish equestrianism. The award was collected by Michał Sanczenko, former President of the Association. The last prize went to the Mountain

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Equestrian Tourism Commission of the General Board of the Polish Tourist and Sightseeing Society, whose activities resulted in the creation of many equestrian trails and the popularisation of equestrian education. The prize was collected by Jan Wilanowski, Deputy Chair of the Mountain Equestrian Tourism Commission. The jury of the Gala was composed of Magdalena Piasecka-Ludwin (Kliczków Castle), Jerzy Ludwin (the Pro Culturae Bono Foundation), Jerzy Pokój (the Equestrianism Development Foundation), Czesław Goleń (the Dolnośląskie Equestrian Association), Adam Suchorzewski (the Dolnośląskie Horse Racing Association – Partynice), and Jerzy Sawka (the Partynice Racecourse). The festivities saw the crack of dawn, and the unique fireworks show, cotillion and western dance made the whole event an unforgettable experience for the many. We would like to wholeheartedly thank all the guests for coming and we hope that many of them will pay us a visit at Kliczków on many future occasions. Due to the jubilee next year, we would like to invite you to complete the booking today, as there is a 15% discount for all who do • this by the end of January. KLICZKÓW CASTLE Conference & Leisure Centre, tel.: +48 75 73 40 700, e-mail: zamek@kliczkow.com.pl, www.kliczkow.com.pl

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Culture

THE LAURELS AWARDED FOR THE 24TH TIME! The Music and Dance Centre in Zabrze hosted the 24th Laurels of Abilities and Competence Gala, organised by the Chamber of Commerce and Industry (RIG) in Katowice. Acknowledgment was given to over 60 people and organisations across more than ten categories.

adeusz Donocik, President of the Chamber, noted that the Laurels were addressed both to people enjoying esteem, achieving success in a variety of spheres and those who seek dialogue. “Silesia is changing, and so is Poland as a whole. And we owe this to these people,” said Małgorzata Mańka-Szulik, Mayor of Zabrze, the Honorary Host of the event. “We can only move forward if we leave stereotypes, but not tradition, behind,” added Hanna Suchocka, giving thanks for her Diamond Laurel of Abilities and Competence. “Politics is now a thing of the past to me. It was my own decision not to go back to being a politician once I returned from the Vatican. So, that there was someone who still remembered me from that time and who deemed it time well spent is a huge honour to me,” Ms Suchocka commented on the Chapter’s decision to award her with the highest Laurel.

Tadeusz Donocik, President of the Katowice RCC

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The Statuette of the Silesian Piasts’ Eagle went to Janusz Steinhoff, Deputy Prime Minister and Minister of Economy in the years 1997-2001. In his laudatory speech, Jerzy Buzek mentioned Mr. Steinhoff’s involvement with the democratic opposition, for which he, among other things, distributed underground newspapers: “There was this legendary fellow in Upper Silesia, called ‘Mikołaj’, to whom every road led,” said Mr. Buzek. “When the Solidarity Citizens’ Committee announced the list of its candidates as MPs for the 1989 Parliament, the man came to everyone’s attention in a photo with Lech Wałęsa. Hardly anyone knew him, and I for one had no idea about this person. And this is how we all learned that the true name behind ‘Mikołaj’ was Janusz Steinhoff. The Crystal Laurel with Diamond was awarded to Rev. Prof. Michał Heller, the founder and creator of the Copernicus Centre for Interdisciplinary Studies. “My abilities and

competencies depend on myself,” he reflected in his gratitude speech. “But we must not forget about our limitations. They need to be borne in mind if only for being overcome. After all, every constraint is there to be surmounted,” added Prof. Heller. The Gala is held annually to award the Laurels, as tokens of gratitude, for achievements in economics, science and culture. The event dates back to 1992, when members of the business self-government affiliated with the Chamber of Commerce and Industry in Katowice put forward the idea of honouring people, companies, organisations and institutions that had actively and successfully joined in the process of building and modernising the Polish market economy to adapt it to European standards. •

The names of all laureates are available on www.laury.rig.katowice.pl

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Food Industry

AS USUAL ON MIODOWA STREET Bożena Skarżyńska

Photo: Bozena Skarżyńska

he New Year’s Meeting of the Polish Association of Butchers and Sausage Makers is more than a tradition. Attendance at this meeting, which has for years united Christmas and carnival customs, is de rigueur. Its significance is proven by the participation of many illustrious guests representing state institutions, universities and industry organisations, as well as of representatives of companies associated with and supporting the Association. Representatives of the Polish Market magazine, with its editor-in-chief, Krystyna Woźniak-Trzosek, also attended the event. During the New Year’s Meeting, which took place on 14

Kazimierz Stańczyk received from Jerzy Bartnik, President of the Polish Association of Butchers and Sausage Makers, the highest craft decoration – Kiliński’s Sabre.

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January 2016, the Association’s Management Board recorded an exceptional attendance, which should encourage and herald beneficial cooperation in the next 12 months. The New Year’s Meeting of the Polish Association of Butchers and Sausage Makers was an occasion for a magnificent ceremony. The Meeting saw the honouring of Kazimierz Stańczyk, Deputy President of the Association, and its tribune of many years, but, more importantly, an eminent advocate and populariser of the craft sector in Poland. Mr Stańczyk received from Jerzy Bartnik, President of the Polish Association of Butchers and Sausage Makers, the highest craft decoration – Kiliński’s Sabre. On the occasion of 75 and 50 years of work in the meat industry the Management Board of the Polish Association of Butchers and Sausage Makers awarded Kazimierz Stańczyk with a gold medal of the Association and a silver bolo tie intended for the most deserving members of the organisation. Mr Stańczyk also received distinctions from guild organisations, i.a. from Warsaw, Łódź and Poznań. After this formal ceremony, Rev. Tadeusz Magas, chaplain of the butchers’ and sausage makers’ fellowship, chanted “Wsród nocnej ciszy” (In the midst of night’s quiet), which served as a signal to share the wafer. Among the wishes of health and prosperity, one could have seen a glimmer of hope for good and fruitful cooperation in the meat and agricultural industries. As usual during the events organised by the Polish Association of Butchers and Sausage Makers, there were attractions for body and soul aplenty. Spiritual experiences were facilitated by Rev. Magas and Andrzej Kosowski, a musician from Poznań, who encouraged the participants to join in the singing of popular Christmas carols followed by a carnival party. Jasiołka, and chefs directed by Marcin Suchenek, as well as Primulator, made sure that there was something for the palate, too. As mouth-watering meat dishes disappeared from the plates, the revellers praised the taste of Polish beef and pork prepared in accordance with the applicable dietary rules – with generous portions of vegetables and fruit. •

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2/2016 polish market

Food Industry

THE “POLISH ECOLOGY”

BIOFOOD CLUSTER – ANOTHER KEY NATIONAL CLUSTER?

Ireneusz Drzewiecki

“

In 2016 the Polish Association of Processors and Producers of Organic Products “Polish Ecology” is celebrating the 10th anniversary of its activities, which aim to promote the organic-food market among Polish producers. We wish our members and cooperating partners will enter this jubilee year, and also subsequent years, with a new tool to optimise all measures taken with a view to accomplishing the objectives, the Polish Ecology Biofood Cluster,” said Paweł Krajmas, President of the Association. In accordance with the resolution passed by the last General Meeting, the Cluster established in 2015 will be coordinated by the Association, with Ireneusz Drzewiecki acting as the authorised agent. The objectives to be pursued by the Cluster, associating several dozen entities, are consistent with “The Framework Action Plan for Organic Food and Farming in Poland for 2014 – 2020,” drawn up by the Ministry of Agriculture, in which the development of organic-agriculture and organic-food markets in Poland is considered top priority.” The activities undertaken by the Cluster members focus on searching for funds to be spent on • Increasing the competitive power of organic agriculture and the supply of organic food; • Making consumers aware of the advantages of organic agriculture and food; • Establishing cooperation based on joint R&D projects implemented by entities operating in the organic agriculture sector, including producer groups, companies, and scientific and research institutions financed by the National Centre for Research and Development, the Polish Agency for Enterprise Development, the Agency for the Restructuring and Modernisation of Agriculture, the Agricultural Market Agency, or the Province Marshals’ Offices;

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Implementing organic-product inspection and certification systems to benefit consumers’ health. “On behalf of the Management Board of the Polish Ecology Association, we would like to invite corporate, academic, scientific and farming communities, undertaking diversified ventures under the united BIO brand of healthy Polish, national and traditional products, to join the Polish Ecology Biofood Cluster,” said Jolanta Lyska, Managing Director of the Association. “Our Cluster is likely to promptly satisfy the requirements imposed on the National Key Clusters, thus offering more efficient support to our members in the implementation of their shared objectives, and making use of the financial leverage created by the EU funds intended for fostering development,” added Mr Krajmas. “Our ambition is to develop an innovative Biofood Cluster, initially within four sectors, that is meat processing, fruit and vegetables, dairy products and flour products, together with auxiliary services (such as ICT, R&D, medicine and biotechnology), with further prospects for including new organic sectors by way of extending the Cluster’s activities. We concentrate on shared publicity and R&D initiatives, as well as process and product innovations supported from public funds,” declared Ireneusz Drzewiecki, the Cluster’s Authorised Agent within the Polish Ecology Association. The initiative to establish the Polish Ecology Biofood Cluster serves the purpose of creating a value chain among its members by combining own and public funds with the aim of achieving common objectives, such as • Undertaking joint R&D projects and implementing process and product innovations; • Improving the marketing image of companies; • Creating a new product and service portfolio in shaping the Polish Ecology brand; •

Sti mu lati ng domestic-ma rket activeness and internationalising the activities undertaken; • Building the base of knowledge and information on the Cluster and companies within the Cluster; • Undertaking educational and training measures, including specialised training courses and educational programmes; • Transferring technologies and using the R&D potential of individual institutions; • Lobbying – getting involved in the establishing of regulations oriented towards sector development and customers. Accession declarations and further details available on www.polskaekologia.org •

The Polish Association of Processors and Producers of Organic Products “Polish Ecology” unites individuals and companies dealing with food manufacture using certified (!) organic raw materials. The principal mission of the Association is to represent the entire organic-food sector while undertaking active measures oriented towards the development of the organic market. During the nearly 10 years of its existence, the Association has organised a number of campaigns promoting the most valuable Polish foodstuffs, both in Poland and abroad. In recent years, it has run a campaign to advertise Polish organic food in the USA, Japan and Singapore. Polish people are attaching more and more importance to healthy food products, i.e. products that are natural, fresh, originating from reliable sources, certified, and having a recognised brand. Such findings were made in the survey carried out by the Evaluation Centre, entitled “Who is tempted by healthy food?” . The fact that as many as 34% of all Poles pay attention to certified foodstuffs is partly due to the Polish Ecology Association’s efforts. Organic-food production methods contribute to the better health protection of the public and allow us to preserve biodiversity, in line with the brand statement:

ORGANIC MEANS HEALTHY