Polish market No.1-2 / 221/2014 by Polish Market

Polish Market :: 1-2 (221) /2015

PU B LISHED SIncE 199 6 No. 1-2 (221) /2015 :: www.polishmarket.com.pl

ChemiCal Industry SCienCe “There is good reason to show Poland as a transformation model in other parts of the world.”

paweł

InnovatIon Infra structure TRANSPORT

jarczewski President of the Board, Grupa azoty S.a.

Food Industry

October 2014â&#x20AC;&#x201A; polish market

Our Guest

Chemical Industry

Finance

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From The President’s Press Office / From The Government Information Centre Włodzimierz Karpiński, Minister of the Treasury: The past year was marked by the consolidation of the Polish defence industry Tomasz Tomczykiewicz, Secretary of State in the Ministry of the Economy: Poland’s Energy Outlook 2015

Prof. Jerzy Buzek: Experience shows that after turning 50 people rarely make new friends

Prof. Małgorzata Zaleska, member of the Board of the National Bank of Poland: Lithuania in the euro zone conclusions for Poland? Tomasz Zieliński, Eng., president of the Polish Chamber of Chemical Industry (PIPC): Chemical sector in good condition Prof. Janusz Lipkowski, Chairman of the Committee of Chemistry, Polish Academy of Sciences: Science must gradually switch to a different way of interacting with industry Paweł Jarczewski, President of the Management Board of Grupa Azoty S.A.: grupa Azoty a strategic companyfor Poland’s economy

Aleksandra Sieczkowska-Pachelska, Vice President of PERN“Przyjaźń”: We must always be two steps ahead of the market

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Dariusz Krawczyk, President of the Management Board of Ciech SA: Target: maximizing shareholder value

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Prof. Witold Orłowski: a year of many unknowns

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Prof. Eng. Andrzej Wiszniewski: A role model for young scientific adepts

Science

SPIS TREŚC CONTENTS

Advanced chemo-, bio- and nanotechnologies of fine (bio)chemicals and hybrid materials for multiple applications Prof. Stanisław Słomkowski: Centre of Molecular and Macromolecular Studies a short presentation Prof. Janusz Rachoń, former rector of the Gdansk University of Technology, head of the Department of Organic Chemistry at the Faculty of Chemistry: New, original generictechnologies: a Polish R&D strategic implementation programme

Prof. Paweł Grieb, Head of the Department of Experimental Pharmacology, and Dr. Krzysztof Różycki, PhD, Head of the Environmental Laboratory of Toxicology: Polish pharmacy: where do we stand? Prof. Marek Figlerowicz, Director of the Institute of Bioorganic Chemistry, Polish Academy of Sciences, in Poznań: Synthetic biology an opportunity and a challenge for the modern chemistry and chemical industry Prof. Sławomir Jarosz: The Institute of Organic Chemistry Prof. Zbigniew Śmieszek, Director of the Institute of Non-Ferrous Metals (IMN), Gliwice: The Institute of Non-Ferrous Metals the current situation and prospects for 2015 Institute of Nuclear chemistry And technology Halina Pupacz, President of the Polish Chamber of Liquid Fuels (PIPP): Declines in fuel prices will continue Over 15 years of tradition Andrzej Sikora, PhD, Chairman of the Board of the Institute for Energy Studies in Warsaw: The end of shale gas hopes in Poland ?

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Andrzej Sikora, PhD, Chairman of the Board of the Institute for Energy Studies in Warsaw: The energy security of Poland

Prof. Leszek Rafalski, Chairman of the Central Council of Research Institutes: Research institutes invest in R&D and succeed

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22nd Marketplace for Inventions Prof. Michał Szota, President of the Association of Polish Inventors and Innovators: Innovation drives everything around

Prof. Marek Orkisz, Rector of the Rzeszów University of Technology: The Rzeszów University of Technology a leading innovator Prof. Marek Krawczyk, MD, Rector of the Medical University of Warsaw (WUM): Progress in medicine. Benefits for the economy Award in medicine - equivalent of the Nobel Prize

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

Kazimierz Frąk, President and Director General of Zakłady Automatyki Kombud SA: Step by step, we are catching up with our Western neighbors

Prof. Jerzy Mikulski, President of the Polish Association of Transport Telematics in Katowice, and Prof. Ryszard Pregiel, President of the Polish Chamber of Commerce for High Technology: Today’s computers can do much more and much faster

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Maciej Proliński: The year 2015 in culture Irena Koźmińska, founder and president of the “ABCXXI – CałaPolska czyta dzieciom” (All of Poland Reads to Kids): A book the best choice Cultural Monitor Maciej Proliński: Gombrowicz turned into a ballet Maciej Proliński: Royal Castle ’s collection goes online Economic Monitor

Maciej Proliński: BCC unveiled Polish Business Leaders Leszek Jurasz, President of the Board of Zetkama S.A.: Zetkama S.A. a leading manufacturer of industrial valves The Laurels ceremony is an opportunity to show all the good that our region abounds in

Okładka / Cover: Paweł Jarczewski Zdjęcia w numerze / Photos on issue: www.shutterstock.com

The riding feast in The Kliczków Castle

SPIS TREŚCI CONTENTS

Prof. Janusz Dyduch, Vice-President of the Polish Federation of Engineering Associations (NOT): Railways need a development programme

Culture

Infrastructure Events

Zbigniew Miklewicz, PhD, President of the Management Board of Szczecin and Świnoujście Seaport Authority SA: From a strategy to investments

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Editorial

The end of the crisis in Europe?

fter “seven lean years,” we are entering 2015 with the European Commission projecting that GDP will grow in all of the 28 member states. This is in keeping with the motto of the new European Union presidency held by Latvia: “promoting the EU’s competitiveness and supporting growth.” There are worries that the growth will be very slow, but the important thing is that the EU economy will certainly be expanding. With the economic growth rate of over 3% Poland still ranks among European leaders. According to the Ministry of Finance, the Polish economy grew in 2014 by 3.4% and this growth will be at least repeated in 2015. The general government deficit is likely to have already been reduced to below 3% of GDP, a target which was to be reached only at the end of 2015. The Polish economy is assessed much better by foreign observers. Deutsche Bank analysts point out, for example, that only China is ahead of Poland when it comes to the pace of growth in affluence. Six years ago only 500,000 Polish people paid personal income tax at the highest rate compared to as many as 1 million this year. Of course, one should remember that a “rich” Pole can only match a European middle-earner. But income disparities are smaller in Poland than in France, Italy, Spain and Britain. In turn, Eurostat projects that in terms of GDP size Poland will move in 2015 ahead of Norway, whose population is 7.5 times smaller, and will be the 22nd largest economy in the world after Sweden and Switzerland. Of course, the situation of the Polish economy is not the number-one topic for the analysts who consider prospects for 2015. The number-one topic is forecasts for a further drop in oil prices and its consequences not only for the markets for fuels and chemical products but also for the redistribution of financial means and growth conditions for individual countries. It is projected that the US economy and fuel-gobbling countries, including the EU, will benefit the most. In turn, the “autocratic economies driven by petrodollars” are expected to lose the most. Iran, Russia, Saudi Arabia and Venezuela are mentioned most often among the latter. Unfortunately, Poland is among the losers in such lists. Although the losses forecast for Poland are to be minimal, in the order of 0.2%, this will still be a challenge. Will we manage to reverse the situation? One can say that the Polish oil and chemical industry has every chance to win. The oil and chemical industry is one of the strongest economic sectors in Poland, with around 11,000 firms providing employment to around 250,000 people. The sector contributes 10% to Poland’s overall industrial output and 14% to its exports. It is also responsible for 17% of Polish imports. In the past decade, the sector was thoroughly restructured in terms of organization and capital, a process which resulted in its significant strengthening. The bold consolidation led to the establishment of such national corporations as PKN Orlen, Lotos and Azoty Group, which quickly expanded to win leading positions on the Central European market and started to take up challenges on the global market. The problem of raw material supplies for the sector was tackled quickly enough and measures were taken to diversify and secure the supplies. Another challenge is the extension of the product chain in the Polish chemical industry – considering that the role of small and medium enterprises (SME) will be growing in the Polish economy in the long run, cooperation with the SME sector may provide special reinforcement to the industry. Its development prospects are also secured by the high level of professional qualifications and education in Poland. Chemistry is one of the subjects in education and research which earn Poland the most recognition internationally, including recognition from the research and development community. Will Poland manage to meet the challenges? The experience of recent years gives us a good reason to be optimistic. A year ago, the challenge was to ensure that Polish exports remain a driver behind the Polish economy, which seemed especially difficult in the face of the expected slump in trade with Russia and Ukraine. Indeed, the value of exports to the countries of that region dropped by 16-17%. It is not only food exports that were affected – exports of transport means decreased by around 70%. But Polish exporters turned out to be exceptionally flexible. They not only entered new markets, but were even able to raise exports to EU markets by as much as 9%. As a result, according to estimates made by the Export Credit Insurance Corporation (KUKE), the value of Polish goods exports grew in 2014 by 5.8%. Although the result was only slightly better than the 5.7% recorded in 2013, KUKE projects that in 2015 Poland will sell abroad EUR174-175 billion worth of goods, which would represent an annual increase of almost 11%. This would be another record figure. Krystyna Woźniak-Trzosek Editor-in-Chief President of Rynek Polski Publishers Co. Ltd.

January 2015 polish market

President

Bronisław Komorowski discusses security with presidents of Baltic states olish President Bronisław Komorowski met with the presidents of the Baltic states, Toomas Hendrik Ilves, Dalia Grybauskaite and Andris Berzins, at Kau Manor near Tallinn on December 2, 2014 to discuss security in the region in connection with the conflict in Ukraine, the results of the latest NATO summit in Wales, regional cooperation in the transport and energy sectors and other issues. At a joint press conference after the meeting, President Komorowski stressed the importance of policy coordination among countries in the Baltic Sea region in the face of the unprecedented deterioration of the security situation due to the Russian-Ukrainian conflict. According to him, it is not only policy towards Ukraine, its security, independence and the right to take sovereign decisions, that requires coordination but also policy within the European Union and NATO. Bronisław Komorowski said he was truly satisfied that the presidents had largely the same opinions on the most important problems of the region, sharing views about Ukraine, sanctions imposed by the West on Russia and the need to implement the decisions of the NATO summit in Newport, Wales in September as quickly and as effectively as possible.

Photo: Wojciech Grzędziński KPRP

“This is an issue of fundamental importance for the security of our region, for all our countries,” President Komorowski said. “I am convinced that with a joint effort we can ensure that the political decisions taken in Newport are put into practice as soon as possible.”

Prime Minister

Prime Minister talks to Ukrainian president about security and cooperation rime Minister Ewa Kopacz talked with Ukrainian President Petro Poroshenko during his visit to Poland on December 17. They discussed security in the region, Ukraine’s cooperation with the European Union and prospects for the development of Polish-Ukrainian relations, including Poland’s assistance for reforms in Ukraine. Before the meeting with President Poroshenko, Ewa Kopacz said the EU leaders would be talking about Ukraine at the forthcoming European Council summit and Poland would be articulating its position loudly. “Poland’s position about Ukraine has not changed and is very clear-cut. We condemn Russia’s aggression against Ukraine,” she said. President Poroshenko came to Poland to take part in the ceremony of signing the law ratifying the association agreement between the European Union and Ukraine by Polish President Bronisław Komorowski. He also gave a speech in the parliament at a joint meeting of the deputies and senators. It was the first official visit at head-of-state level between the two countries after the political changes in Ukraine.

Photo: M. Śmiarowski KPRM

Prime Minister meets her British counterpart in Brussels rime minister Ewa Kopacz met British Prime Minister David Cameron on December 18 in Brussels where the two heads of government had come to attend a European Union summit. Ewa Kopacz thanked David Cameron for Britain’s permanent involvement in strengthening NATO and the presence of British soldiers at military exercises in Poland. She also said Poland hoped that the decisions of the NATO summit in Wales, in particular the one to strengthen the eastern flank of the Alliance, would be fully and quickly put into practice. During the meeting, the two prime ministers talked about migration policy and the question of Polish people living in Britain. Another topic discussed was Ukraine. Prime Minister Kopacz said Poland supported the immediate ratification of the association agreement between the EU and Ukraine by all EU member states.

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Photo: M. Śmiarowski KPRM

Our Guest

The past year was marked by the consolidation of the Polish defence industry Włodzimierz Karpiński, Minister of the Treasury

Was privatisation still on an uptrend in 2014? Or was it rather a dwindling trend after a surge in the 1990s?

Over the past 25 years, the Polish economy has undergone a tremendous transformation. An essential role in building a free market based on private property was played by privatisation. In the early 1990s, there were almost 8,500 state-owned companies in Poland. Today the Minister of the Treasury has about 500 companies under its supervision, of which 237 are active. Some of them are entities of strategic importance and will remain under the Treasury’s control. The priority is for the Ministry of the Treasury to build value of state-owned companies by focusing on innovation development and searching for business synergies. It is worth pointing out that the historical stock market value of the state-owned companies listed on the Warsaw Stock Exchange has increased by approx. 50% since 2008. When it comes to ownership transformation, 148 privatisation processes are in progress now. Even though mainly small companies are concerned, these are often very complex projects, requiring restructuring and viable development concepts. It should also be noted that the approach to privatisation has changed recently. Proceeds from it are not only transferred to the budget, but they are also allocated to encourage economic development as part of the Polish Investments programme. Passive cash has been sort of put to work to provide for infrastructure projects, while also attracting private capital and enhancing the company’s borrowing capacity. The Polish Investments programme accounts for 100 contracts for funding with a total value of

PLN 23.5 billion. For example, the B8 oil field development project by the Lotos Group, which is of key importance to Poland’s energy security, was carried out last year as part of Polish Investments. Following a contract worth PLN 1.8 billion, domestic oil production will increase by 250 thousand tonnes per year.

2014 Sum-up The past year was marked by the consolidation of the Polish defence industry. It is a great event: we managed to see through the process which had kept failing for over two decades. twenty six entities, including 8 corporate groups (operating in armaments, shipbuilding, offshore, real estate and new technologies), with an annual turnover of about PLN 5 billion and nearly 19 thousand employees, were brought together in one Group. As a result, the Polish defence industry stands a chance to successfully compete for the largest possible number of contracts under the 2013-2022 Armed Forces Technical Modernisation Plan. The Ministry of National Defence is to spend a total of PLN 130 billion and it is naturally desirable that as much of it as possible stays in Poland. The consolidation made it also possible to create and maintain employment in the defence industry and its cooperating companies, an estimated 40-50 thousand jobs. It can also be safely said that in 2014 Poland became one of Europe’s largest construction sites for energy projects. In November, the cornerstone was laid for the construction of two power units in Opole, each with a capacity of 900 MW, equivalent needed to meet the needs of 4 million households. This is the largest investment project in the energy sector since Poland regained freedom. 1-2/2015 polish market

Our Guest

The priority is to build value of state-owned companies by focusing on innovation development and searching for business synergies.

In October, a gas unit of approx. 29 MWe and 27 MWt was opened in a CHP plant in Rzeszów. The energy sector is expected to receive PLN 114 billion worth of investment until 2020. Thanks to it, power units will be put into service with a total capacity of 5,000 MW, which represents approx. 13% of Poland’s current electricity consumption. In 2014, the Industrial Development Agency changed its role. Following a strategy review, the company, which previously dealt with restructuring, started also innovation and investment activities, especially in special economic zones. By a joint effort of the Ministry of Treasury and the Management Board of LOT Polish Airlines, the European Commission approved aid for our national carrier last year. Thanks to effective restructuring, LOT started to make profits, and Poles continue to fly around the world in comfort.

Plans for 2015 We are on the eve of the consolidation of the electricity sector. It clearly follows from our findings and observations of

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market trends that the future of this sector is related to the competition on the European market. Therefore, what will matter is the scale of operation. We already have strong energy companies and we have ensured they are controlled by Polish capital, something that cannot be overestimated in the context of the country’s energy security. Nevertheless, even though Polish energy companies are among the country’s business giants, alone, they are too small to compete with the powerful pan-European corporations. The Polish Energy Group (PGE), which is our largest energy company, has a mere 2% share in the European electricity market, while RWE controls 7.2% of it, and EDF – as much as 18%. A large entity has greater market leverage in so far as it is offered cheaper loans, can implement more easily vast investment projects, which are highly demanded in the energy sector, and finally benefits from the consolidation-driven cost synergies. A strong heat and power industry is also one of the building blocks of the Polish energy security, which we have been consistently building for years. •

Our Guest

Poland’s Energy Outlook

2015 Tomasz Tomczykiewicz, Secretary of State in the Ministry of the Economy

015 will be very important for the energy sector. At the beginning of the year, we will put out for the second public consultation a draft of the “Polish Energy Policy until 2050,” which provides a long-term vision for the energy sector, the evaluation of the “Polish Energy Policy until 2030,” as well as the action plan for the next four years. Also, strenuous analytical and conceptual work will be done to put into effect the conclusions of the European Council of 23 October 2014, so that the solutions to be developed by the Polish government, including regarding two compensatory mechanisms, take account of the needs of the energy sector and energy consumers. We must remember that the proposals will be subject to agreement with the European Commission and the European Investment Bank. Furthermore, two important draft amendments to the Energy Law are under discussion. The first of these will ensure the application of the Regulation (1227/2011) of the European Parliament and of the Council of 25 October 2011 on wholesale energy market integrity and transparency, the so-called REMIT regulation.

The regulation is primarily aimed to effectively detect and prevent market abuse involving the misuse of inside information, manipulation or attempts to manipulate trade in energy products. The second draft amendment, which is to be made to the Energy Law and the Law on the rules of compensation of costs incurred by generators in connection with early termination of long-term contracts for the sale of electric capacity and energy, provides for the implementation of a smart metering system. The bill is aimed at providing at least 80% of customers connected to the low voltage grid with remote reading meters, appointing the Measurement Information Operator (OIP), settling electricity and electricity distribution bills based on the actual measurement data obtained from the OIP, as well as ensuring security standards for the protection of the measurement data from unauthorised access. I would like to point out that in 2015 the legislative process will also probably come to an end of making amendments to the Directive on renewable energy sources (2009/28/EC) in respect of biofuels, including such elements as: establishing limits for biofuels produced

from raw food, or promoting new generation biofuels. At the same time, the amendments to the Law on bio-components and liquid biofuels will be adopted to reflect the systemic changes requested by the industry organisations, as well as the changes to be introduced by ILUC Directive. The new law will determine the shape and nature of the market until at least 2020. Let me also mention the bill on renewable energy sources. The Ministry of the Economy has prepared solutions that will ensure the sustainable development of renewables in Poland by streamlining cash flows for different renewable energy technologies. I am convinced that the future regulations will contribute to the rapid development of the renewable energy sector in Poland. This will have a positive effect on the innovation-driven development of many regions, especially rural areas, which have been stripped of investment opportunities so far. 2015 will be a crucial year for the whole of the renewable energy sector, providing a platform to discuss energy development scenarios in the coming years. •

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Our Guest

A role model for young scientific adepts Prof. Andrzej Wiszniewski – former Minister of Science and former Rector of the Wrocław University of Technology, a member of the Jury of “Polish Market’s” annual award “Pearls of the Polish Economy” – will celebrate his 80th birthday on 15 February 2015. Let us take this opportunity to recall the profile of this outstanding scientist, who could serve as a role model for young scientific adepts, but also share with them his views on the factors determining scientific development. Our authority and friend shows that nothing is impossible in science. He further shows that intellect, passion and perseverance are critical in the pursuit of a goal, while a sense of humor and self-irony are not at all an obstacle in this cognitive quest. The editorial board of “Polish Market” wishes you all the best, Dear Mr. Professor!

rof. Andrzej Wiszniewski was born in Warsaw on 15 February 1935. In 1957, he graduated from the Faculty of Electrical Engineering at the Wrocław University of Technology. In 1961, he obtained a PhD degree, and in 1966 postdoctoral degree. He was associate professor since 1972 and in 1990 gained the title of full professor. A professor of the Wrocław University of Technology since 1972, he was its Vice-Rector (1981) and Rector (1990-1996). He has been a member of “Solidarity” continuously from 1980. Involved in opposition, he was interned under Martial Law. He wrote for Polish underground press. He also gave lectures and talks on social and freedom-related issues. “The Wrocław University of Technology was the strongest and most committed to anti-regime activity institution in Wrocław,” he said after years. In 19972001, he was Minister of Science and Chairman of the Committee for Scientific Research in the government of Prof. Jerzy Buzek. In recognition of his work and civic attitude he received numerous awards, including:

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the Knight’s Cross, Officer’s Cross and Commander’s Cross of the Polonia Restituta Order – the second highest Polish civilian honour (after the Order of the White Eagle), awarded for outstanding achievements in the field of education, science, sport, culture, art, economy, national defence, social activities, civil service and development of good relations with other countries. For lifetime achievements, he was presented last year with the Siemens Research Prize, one of the most prestigious in national research field. In his public speeches, professor Wiszniewski consistently emphasises the importance of values such as truth and honesty, which are the foundation of social ethics and genuine democracy. And more than a decade ago, as the Chairman of the Committee for Scientific Research, he argued: “For a large part of the population, behaviours of scholars are patterns to follow. Therefore, violations of scientific ethos can be used to justify one’s own dishonesty. I appeal to the whole community to try to eliminate by all reasonable measures phenomena such as

plagiarism, theft of research results, concealing sources of research inspiration.” Asked about what is most fascinating about science, he says: “The greatest moment in science is a moment when, after long research, your hypothesis is beginning to prove right; when the results of your experiment are beginning to turn out as expected; when you get the feeling that you created something new, that you contribute a tiny bit to the gigantic structure called knowledge. By profession, I am an electrician and I specialise in automation power. And every time I can prove that my method for fault detection in power systems is effective, that it is indeed able to distinguish between all normal operating modes and thousands of possible failures, I feel such a creative joy. I am aware, however, that the moments of joy are interspersed with the moments of sorrow. As someone wise said, there is no sadder sight in the world than to see a beautiful • theory killed by a brutal fact.”

Our Guest Doświadczenie uczy, że rzadko kiedy ma się okazję zaprzyjaźnić po pięćdziesiątce Prof. Jerzy Buzek o swoim przyjacielu Prof. Andrzeju Wiszniewskim

eszcze rzadziej zaprzyjaźniamy się z kimś nieznanym wcześniej, a poznanym dopiero w politycznej aktywności; zwłaszcza, gdy chodzi o aktywność rządową, na oczach mediów, a co więcej – w sytuacji, gdy te nieznane sobie wcześniej osoby siłą politycznej logiki aspirują o to samo stanowisko. Mnie się zdarzyła taka przygoda życia. W 1997 roku, niezależnie od siebie dwie grupy zwycięskiej koalicji wyborczej AWS wysunęły na stanowisko premiera Profesora Andrzeja Wiszniewskiego i mnie. Wyglądało od początku, że jeden z nas zostanie premierem, a parlamentarzyści Akcji Wyborczej Solidarność mieli o tym zadecydować. Trudno mi sobie wyobrazić bardziej uczciwą i otwartą kampanię. To wtedy właśnie – a później w ramach tego samego rządu – prowadziliśmy z Andrzejem niekończące się rozmowy: o przyszłości Polski, o „Solidarności”, o własnej osobistej przeszłości, o rządzie, do którego mieliśmy wejść. Rozmowy przyjaciela z przyjacielem. Decyzja posłów i senatorów AWS, podjęta w tajnym głosowaniu, nie poróżniła nas. Wprost przeciwnie – stała się paliwem naszej długoletniej przyjaźni. Równie dobrze wtedy premierem mógł zostać On. Błyskotliwy, mądry, wiarygodny, pewny siebie, ale otwarty na innych, pryncypialny, ale ze zrozumieniem dla zawiłości życia i indywidualnych historii, dowcipny, elokwentny, energiczny. Bardzo dobry minister, tak jak kiedyś Rektor Politechniki Wrocławskiej. W gruncie rzeczy nigdy nie słyszałem, aby ktoś o nim mówił inaczej. To znaczące.

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Prof. Jerzy Buzek, former Prime Minister (1997-2001) and former President of the European Parliament (2009-2012)

Experience shows that after turning 50 people rarely make new friends Prof. Jerzy Buzek about his friend Prof. Andrzej Wiszniewski

t is even rarer to make friends with someone you have never met before, someone you have only encountered after you have started political activity, especially when this is government activity in front of the media and, even more, if the two persons, by virtue of a political logic, aspire to the same post. Fate has put such a life experience in my way. In 1997, two independent groups in the victorious AWS election coalition proposed for the post of prime minister Prof. Andrzej Wiszniewski and me. It seemed from the beginning that one of us would become prime minister and the decision was to be taken by AWS parliamentarians. I can hardly imagine a fairer and more open campaign. This is when, and later as members of the same government, we held endless discussions with Andrzej about Poland’s future, Solidarity, our own personal past and the government we were to form. Talks between two friends. The decision taken in a secret vote by AWS deputies and senator did not drive a wedge between us. Just the contrary, it became a fuel for our long friendship. He might have become prime minister then instead of me. Brilliant, wise, reliable, self-confident but also open to others, highly principled but understanding the complexities of life and individual histories, witty, eloquent and vigorous, he was a very good minister and previously a very good rector of the Wrocław University of Technology. In fact, I have never heard anyone speaking about him in a different way. This is meaningful.

Dear Mr Professor, On the occasion of your 80th birthday, we wish you a lot of happiness, prosperity both in private and professional life, and many years in good health.

The Editorial Board of “Polish Market”

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Finance

a year of many

unknowns Prof. Witold Orłowski

t the very moment of uncorking bottles of champagne during the New Year night, everybody already knew that the year 2015 was not going to be easy for the Polish economy. Not because of any clear risk, any approaching catastrophe, or a general pessimistic mood. The main reason for the headache is uncertainty. The Polish economy survived in quite a good shape the year 2014 – a year of many turbulences and unpleasant surprises. As the eurozone slowly recovered from the 2013 recession, Polish exports accelerated, and the improving mood of consumers and firms translated into growing domestic demand. Consumer demand was increasing at a rate of 3%, as the real wage growth was fuelled by both the falling unemployment rate and the falling inflation rate. As the fiscal position of the government improved, the government consumption followed at a slightly lower rate. But, even more importantly, investment demand started to grow at a twodigit speed because of, both, the renewed vigor of Polish firms increasing fixed capital formation and the buildup of stocks. Altogether, all these factors were leading to the GDP growth of 3.5% recorded during the first three quarters of 2014. The trends looked very promising during the first half of the year, with a likely and widely expected further acceleration of the growth to above 4% during the second half. Unfortunately, the problems soon appeared. The Ukrainian crisis followed by the Russian sanctions against Polish products led to the slowdown of exports growth, visible since the second quarter of 2014. The mood in Germany and the other eurozone countries rapidly deteriorated, following the political tensions in the East (Russia) and Middle East (the Islamic State

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2015

Finance

expansion), as well as a possible slowdown of the Chinese economy. The social resistance to austerity continued in South European countries, and the austerity policy was more and more openly criticized by France, striving with economic stagnation. And, finally, the falling prices of raw materials combined with the excess supply on the food market led, surprisingly, to technical deflation, raising questions about its impact on the Polish economy. Altogether, the external conditions for the Polish growth seriously deteriorated, leading to the reduction of the forecast GDP growth rate. According to a majority of forecasts, Poland should expect growth rate of ca. 3% in 2015 rather than 4% as previously expected. The year started as dramatically as possible. Firstly, the rapidly falling global prices of energy led to the sharp crisis in Poland’s biggest state-owned coal mining company, brought to the brink of bankruptcy by a combination of neglected reforms and falling revenues. The scale of the company, employing almost 50,000 workers, would be enough to raise serious concerns. But, even more importantly, the crisis in the coal mining industry reminded everybody that Poland was facing a very challenging political calendar for the year 2015, with the presidential and parliamentary elections scheduled for May and October. The coal mining crisis immediately translated into a major political struggle, with the trade unions threatening the widespread all-nation strike, and the political opposition supporting the miners’ demands. The agreement reached between the government and the trade unions calmed down the tension for the time being, but obviously this sign of political unrest interfering with the economy is, most likely, not the last one in 2015. Once the tensions with the coal mining sectorcalmed down, the second bomb exploded. An unexpected decision of the Swiss central bank to free the exchange rate of the Swiss franc immediately led to the serious strengthening of this currency. Although the złoty remained quite stable to the euro (a crucial currency for the Polish trade and investment links), the strengthened franc means a serious problem for many Polish debtors, as this currency was widely used in the past for granting mortgage loans by Polish banks. As far as the złoty remains relatively stable to the euro, the risk for the Polish economy-wide finance is limited. However, the Swiss franc story reminded us that the financial crisis was not over yet and, therefore, that Poland should be very careful in managing its public finances and its banking sector. Especially that, with the approaching Greek elections and the beginning of the new wave of the European Central Bank’s quantitative easing

the agreement reached between the government and the trade unions calmed down the tension for the time being, but obviously this sign of political unrest interfering with the economy is, most likely, not the last one in 2015. policies, the financial situation in all Europe remains fragile. And finally, the real shell explosions at the Donetsk airport reminded everybody that the war at the Ukraine was not over yet. The economic tension between Russia and the West continues, with a possible heavy impact on the economic situation of Russia. Therefore, Moscow’s trade sanctions may be soon overshadowed by a more serious threat – the risk of a dramatic fall of Russian imports, caused by the recession in the Russian economy and the extremely strong devaluation of the ruble. Poland’s exports to the

Eastern markets (Russia, Ukraine, Belarus) were worth USD 19 billion in 2013 (over 9% of total exports and an equivalent of 3,7% of the Polish GDP). These exports have already experienced a fall of ca. 15%, in dollar terms, over the first 10 months of 2014. A combination of the deep recession in Ukraine and a milder recession in Russia, with possible Russian trade sanctions covering all the food sales, could lead to the reduction of Polish exports to the Eastern markets by as much as 20%. That, in turn, would mean a reduction of the total exports by ca. 2% and a negative impact on the GDP of a range of 0.50.7%, partly visible already in 2014. All these risks cannot be neglected. Obviously, 2015 is a year of many unknowns, mainly outside Poland, although the possible political tensions may also complicate the economic life. Despite this, economic prospects for Poland in 2015 do not look bad. Domestic demand is growing on a quite solid base of low unemployment and low inflation (or, actually, deflation). Even if the process of job creation slows down, the unemployment rate should remain relatively low (8-9% if measured by the widely used Labour Force Survey method; 10-11% if measured by the Labour Offices). Even if the inflation rate returns to above zero, it should remain small (1%). All these factors should lead to private consumption growth of 3%. The outlook for investment does not look bad, either. All the available date suggest that Polish firms do not cancel their investment projects, as the growing output brought them over a few last years quite close to full capacity utilization. Moreover, the new wave of the EU structural funds, available under the new 7-year EU multiannual budget framework, is likely to lead to the accelerated public investment growth. Therefore, total investment growth should reach 7-9%. The fiscal situation, albeit far from being ideal, does not look dangerously. The public sector deficit in 2014 was, probably, not much higher than 3% of GDP required by the EU. Therefore, the government is not forced to implement any harsh austerity programme – quite risky in an election year. Altogether, and even with a possibly weak growth of exports, the increasing domestic demand should be enough to secure GDP growth close to 3%. Unless something really dramatic happens outside Poland, the złoty should survive the Swiss franc crisis without big losses and start appreciating slowly during the year. And both the inflation and unemployment rate should remain relatively low. • Not bad, given the circumstances.

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Lithuania in the euro zone -

conclusions for Poland? Prof. Małgorzata Zaleska, member of the Board of the National Bank of Poland The author is a member of the Board of the National Bank of Poland (NBP), a full professor at the Institute of Banking Warsaw School of Economics (SGH) and vice-president of the Committee on Financial Sciences Polish Academy of Sciences.

n January 1, 2015, Lithuania became the 19th European Union member to have joined the euro zone. Before that, the country had to meet the Maastricht criteria, including the need to participate in the ERM II mechanism. It is worth noting that Lithuania stayed in the mechanism for longer than any other country which has joined the euro zone so far - more than 10 years. Although Lithuania has met the required nominal criteria, one may consider whether the country has achieved real convergence, that is whether it has managed to adjust its economy to make it competitive within the euro zone. It should be stressed that the Lithuanian economy lags behind other countries in terms of innovation and that Lithuania is among the European Union nations which invest the least in research and development. Unfortunately, Poland is not a leader in these two respects either and improvement is definitely necessary before the country’s integration with the euro zone. A country’s entry to the euro zone also involves the need to ensure a sufficient supply of euro banknotes and coins. In Lithuania’s case, it was not a big challenge because of the small amount of cash in circulation in the country and the small size of its population – less than 3 million. In the case of Poland, which has a population of 37 million, the challenge would for sure have been much bigger. It is worth realizing, however, what “the little challenge” to Lithuania actually meant. The country borrowed the euro banknotes from the Bundesbank. It needed a total of 132 million notes, which weighed 114 tonnes. Lithuania produced the coins itself - 200 million in 2014 while another 170 million are to be minted this year, bringing the total weight to 1,740 tonnes. There are three types of images depicting Vytis, Lithuania’s national emblem, on the reverses of the Lithuanian euro coins. According

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to public opinion surveys, a majority of the Lithuanian people wanted the coins to feature this emblem. Speaking about public opinion, it should be added that Lithuanians are among the nations most enthusiastic about the European Union, which is certainly not the case with the Polish people. A Eurobarometer report published in December 2014 shows that as much as 73% of Lithuanians are optimistic about the European Union’s future. Their support for the euro zone was not as impressive, but also high – 63%. Geopolitical factors had obviously influenced these figures because, compared to the spring of 2014, support for the euro zone rose in Lithuania by 13 pct. points, which represented the sharpest increase in the European Union. Additionally, the process of Lithuania’s economic integration with the euro zone, which had begun several years before, was completed at a time of a high political and economic uncertainty in the region. Lithuania’s integration with the euro zone also means it renounced its own monetary policy and started working closer with the

European Central Bank (ECB). There are now 25 people on the ECB Governing Council: the governors of the national central banks of the 19 euro-zone countries and the six members of the ECB Executive Board. The rise in the number of Governing Council members due to Lithuania’s euro-zone entry on January 1, 2015 resulted in a change to the voting system - the governors of the national central banks now take turns in holding voting rights. The governor of Lithuania’s central bank is included in the group of 14 central bank governors who share 11 voting rights rotated on a monthly basis. By joining the euro zone Lithuania also automatically became a member of the banking union, which is now composed of two pillars: the Single Supervisory Mechanism and the Single Resolution Mechanism. Consequently, Lithuania’s three largest banks are directly supervised by the European Central Bank. Being a member of the banking union means the requirement for the banks, or in practice for their clients, to pay fees. Additionally, Lithuania had to contribute its share – almost EUR45 million - to the ECB capital stock. The experience resulting from Lithuania’s preparations and entry to the euro zone is important and interesting, but should not be taken as a direct indication of the challenges Poland will be facing in its integration with the euro zone. One of the reasons is the difference in size between the two countries, which I have already mentioned. There are also historical differences, despite the fact that Poland and Lithuania were a single state for a few centuries, and differences in the population structure, with national minorities accounting for around 16% of the Lithuanian population. And the countries’ banking sectors are also incomparable. The Polish banking sector is nearly 15 times bigger than the Lithuanian one in terms of banking sector assets. •

International Relations

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Chemical Industry

Chemical

sector in good condition “Poland is one of Europe’s biggest markets for fertilizers and ranks second in fertilizer production after the Norwegian company Yara. The condition of the Polish chemical industry is good and improving every year, although its individual sub -sectors fare differently, depending on the product type, access to raw materials, and the macro and geopolitical situation,” Tomasz Zieliński, PhD. (Eng.), president of the Polish Chamber of Chemical Industry (PIPC), tells Jerzy Bojanowicz. Several companies joined the Polish Chamber of Chemical Industry in November and it now has 100 members. What is the reason behind such a sudden interest in becoming a member of the organization? Indeed, since the changes were made during the General Meeting of the Chamber in June 2013 we have seen a steady rise in membership. We thoroughly reorganized the rules for the operation of the Chamber, starting with its team, image and tasks to relations with members and the public administration. Virtually every sphere of our activity was analysed and streamlined. The Chamber has become more member-friendly. The increase in membership – by more than 50% over a year and a half – is a result of our greater openness to chemical firms and their problems. Of course, the number of our members is still small, considering that there are around 11,000 businesses operating in the Polish chemical sector. Around 70% of them are small firms from plastic sector. But the rise in membership has helped us to improve our effectiveness. We have also raised the number of our committees and are now able to deal with a much broader range of problems being of interest not only to our members but also chemical firms which have not joined the Chamber yet. Our members report their problems to relevant committees and we try to solve them jointly. Additionally, we have launched three internal projects for our members, but other firms are also welcome to take part. Businesses see the results and benefits of being a member of the Chamber as we have intensified our activity, take an active part in conferences of various kind and have more pm

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direct relations with our members, and because many of the members are committed to issues of key importance, like for example the European Union’s climate policy and a proposed free trade agreement between the EU and the United States (Transatlantic Trade and Investment Partnership - TTIP). The Chamber represents the chemical sector in relations with public authorities and international organizations. What successes does the Chamber have to its credit in this respect? We give our opinion on the draft directives, laws and other legislation which may have any influence, even the slightest one, on the chemical sector. This mainly concerns legislative processes conducted at the Ministry of the Economy and the Ministry of the Environment, but also at the Ministry of Labour and Social Policy and the Ministry of Finance. I consider the removal of excise tax on natural gas in 2013 as one of the most spectacular successes. Many draft laws are now in preparation. Among the most important drafts we are now working on are the draft laws on renewable energy sources and on the emissions trading system (EU ETS). The European Commission has rejected the Polish system of reliefs for energyefficient industries designed to reduce high energy costs. Unfortunately, work on amending the law is stalled and the industry has to incur the cost of supporting renewables. The draft law on emissions trading on which the government is completing its work is also of great importance for the competitiveness of the Polish chemical industry. We work on both issues with organizations representing other pm

Chemical Industry

In 2014, we intensified our activities and are doing whatever we can to protect the interests of our members and the Polish chemical sector in Europe and even in the international arena. Tomasz Zieliński, PhD. (Eng.), president of the Polish Chamber of Chemical Industry sectors – members of the Electricity and Gas Consumers’ Forum and the CO2 Forum. These huge battles are still going on so we are not laying down our arms. As regards the EU administration, we have direct contact with Polish MEPs, especially members of the commissions and working teams which deal, even indirectly, with the chemical sector. Measures taken by the European Commission, like for example the TTIP agreement, are spread over time. Although Poland has been an EU member for 10 years now, it is still a novice when it comes to the way things are done in Brussels. Many countries, especially Western European ones, have excellent lobbying systems operating under different rules than in Poland. In 2014, we intensified our activities and are doing whatever we can to protect the interests of our members and the Polish chemical sector in Europe and even in the international arena. We are helped by the European Chemical Industry Council (Conseil Européen des Fédérations de l’Industrie Chimique - CEFIC), of which we are a member, and the Fertilizers Europe association. Another success in 2014, in my view, was that the European Commission decided to keep anti-dumping duties on ammonium nitrate fertilizers imported from Russia.

considering that Russia is one of the biggests customers for the Polish chemical sector. In 2013, almost all indicators in the sector improved. For example, its output was worth around PLN134 billion and was higher by around PLN3 billion compared to 2012 while the trade deficit narrowed by almost EUR1 billion to EUR6 billion. Every year our member companies spend more and more money on investments. For example, Synthos, a well-known rubber producer, is implementing investment projects in the Czech Republic and has started to invest in Brazil. And Azoty Group has begun the construction of a PLN320-million polyamide 6 plant in Tarnów. It should be remembered, however, that the Polish chemical sector is strongly dependent on imports of raw materials, especially the basic ones, which raises investment risk. One must not overinvest. In Europe, the situation in the chemical sector has calmed down, with average product prices being close to the level of before the 2008/2009 crisis. On the other hand, the drop in oil prices will certainly have an impact on the full-year results of the industry. But its condition is quite good and this is one of the reasons why chemical firms have started to carry out their long-term plans and strategies.

How do you assess the situation of the Polish chemical sector? Although we are holding this conversation at the end of 2014, it is too early to sum it up because we do not know how the year, and its fourth quarter in particular, will end

Is the chemical industry facing further changes now after Azoty Group has been established? The consolidation of the Polish chemical industry was a long-awaited process. And finally, after many failed attempts, it was successfully completed and Azoty Group was

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Chemical Industry

established. Is it the last piece of the puzzle on the Polish market? This question should be asked of the shareholders and business owners while possibilities are diverse. The present situation is conducive to joint investment. In December 2013, Lotos Group, Azoty Group and Polskie Inwestycje Rozwojowe SA signed an agreement to set up a special-purpose company and conduct a full feasibility study for a petrochemical complex to be located at the existing Lotos and Azoty plants. The value of the project was estimated at around PLN12 billion. In the case of such big projects, one has to wait for final analyses. What are the results of the EU-funded ChemLog T&T and SPICE3 programmes, which the Chamber has carried out with EU partners? Let me also add the interdisciplinary Nanoforce project entitled “Nanotechnology for Chemical Enterprises – How to Link Scientific Knowledge to the Business in the Central Europe Space.” It was completed, like ChemLog T&T, in 2014. We are waiting for guidelines of the EU 2014-2020 financial plan to see whether the projects will be continued and in what form. The Nanoforce project showed that the Polish chemical sector still needs time to develop in the area of nanotechnologies, including development at the research stage, to be able to fully benefit from the project. The European Commission should adjust this kind of projects to the abilities of individual countries. ChemLog T&T was a continuation of the ChemLog project carried out by regional authorities, chemical industry associations and scientific institutes in Germany, Poland, the Czech Republic, Slovakia, Hungary, Austria and Italy to enhance the competitiveness of the chemical industry by streamlining the supply chain in Central and Eastern Europe. The project enjoyed great interest from chemical firms as well as transport and distribution businesses. We conducted many tests, including in monitoring the transport of hazardous materials by road and rail. SPICE3 is a project oriented at energy efficiency. In 2014, we organized three workshops. We also take part in CEFIC’s workshops and strategy implementation groups. We show the best practices, mechanisms and products improving energy efficiency. pm

And what are the results of your own projects: “Chemical Safety,” ChemHR and “Energy for the Chemical Sector”? These are our special internal projects intended mainly for our members but also for the sector as a whole. The “Chemical Safety” project promotes activities aimed at improving occupational safety and process safety. Among the companies which are taking part are Azoty Group, PKN Orlen, PCC Rokita and Anwil. The Office of Technical Inspection (UDT), National Labour Inspectorate (PIP), National Headquarters of the State Fire Service, Central Institute for Labour Protection (CIOP-PIB) and Occupational Medicine Institute are the patrons of the project. We are building a platform for sharing the best practices and supporting companies in establishing mechanisms improving safety. The project will be developing and evolving depending on the needs of the companies and the situation in the sector. A special session with safety exercises – a simulation of pm

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a smoke-filled environment, evacuation of a building and a firefighting operation - was held during the “Polish Chemical Sector” congress organized by the Chamber. The aim of ChemHR is developing human resources for the chemical industry and building the bridge linking the industry and universities. In the first stage of the project, we organized internships for students in chemical firms. I would like to stress here the commitment of BASF Polska and the Warsaw University of Technology. We are now conducting the second stage of the project, with more universities and firms taking part. We want to strengthen the curricula so that graduates know more about the chemical business. And the programme entitled “Energy for the Chemical Industry,” which we carry out together with the Polish Power Exchange, deals with all aspects associated with the energy sector and the energy market, like for example regulations on electricity trading and the joint development of the natural gas exchange for chemical companies. What will be the most important topics of the second “Polish Chemical Sector” congress to be held in Puławy on June 10-11? One of the main topics will be presenting the most dynamically developing segments of the chemical industry in the world. We are inviting people representing institutions and global corporations from the United States, the Middle East and Asia. We want them to tell us about their development plans, how they analyse markets and where they draw inspiration from. We are still learning because Polish companies have started to invest abroad only recently. We have already learnt a lot from the media and conferences, but insiders are the best source of knowledge. And we want to look for similar solutions in Poland, of course taking into account the difference in scale. The protection of the Polish and European markets will be another important topic. We will also be talking about logistics from the perspective of transport and distribution companies providing services to the chemical sector and companies building facilities, like for example warehouses, for chemical firms. We will not avoid discussing issues associated with climate change, the environment and innovation. We are completing our work, carried out in conjunction with the National Centre for Research and Development (NCBiR), on the sectoral programme for the chemical industry Innochem. It is to be launched officially in 2015 so there will be a lot for us to talk about during the congress. We are also going to show the successes of companies involved in exploratory activity, like for example PKN Orlen, Lotos Group and Azoty Group. The condition of the European chemical industry will be presented by representatives of chemical organizations operating within the EU and in the international arena. And we plan a section devoted to legislation affecting the chemical sector. Of course, we are also working on other topics of the greatest significance for the Polish chemical industry. It will surely be a very interesting event - we wish to cordially invite you to the “Polish Chemical Sector 2015” congress. • pm

Chemical Industry

Science must gradually switch to a different way of interacting with

industry Prof. Janusz Lipkowski, Chairman of the Committee of Chemistry, Polish Academy of Sciences, talks to Marcin Haber.

What is the condition chemistry research and the chemical industry in Poland? These are actually two different issues. Polish chemistry as a science stands very well. It is one of two major Polish disciplines that enjoy worldwide recognition. The second one is physics. Unfortunately, in recent years, the whole Polish science has slipped down in international rankings. Chemistry has been affected too, but it still occupies a very decent position. As for the chemical industry, the issue is extremely broad, because it was once statecontrolled. We used to have large industrial plants, but it is a thing of the past. There are still some remnants such as PKN Orlen, in which the state hods a majority stake, and which can be regarded somewhat as a continuation. However, a lot of plants changed their profile after the economic transition. In general, they are faring quite well. In my opinion, the chemical industry in Poland is in good standing. pm

How would you describe the science-industry cooperation then? It is a constant ill. There are excellent examples. Prof. Bogdan Marciniec, one of the winners of the Honorary Pearl awarded by “Polish Market,” is such a great example of a man who combines high-level research - he is a worldclass scientist in the field of chemistry of silicon compounds - and a phenomenal ability to put the scientific achievements into industrial practice. He co-authored nearly 200 patents. He works with major companies in Poland and abroad, and has founded what is now called the Poznań Technology Park. There are several other examples, so things keep going pm

in this area. The problem is that science has to gradually switch to a different way of interacting with industry. Today, one of the most important global industrial agents is BASF. But I remember when, many years ago, a foreign business delegation came to Poland to sound out cooperation opportunities with science. On the Polish side, its interlocutors were institutes of the Polish Academy of Sciences and R&D units. I am not a specialist in implementation even though I am an enthusiast of it. During this meeting, I learned some very important basic information. It turned out, for example, that for a foreign industrial partner to start negotiations with a research unit in Poland, the invention has to be patented first. Property rights to the invention have to be clearly defined. If this is not regulated, no one from the industry wants to get involved because there is no chance of obtaining exclusivity, and only exclusivity makes sense in business. Regarding cooperation with industry, some hopes are placed on a new research funding system now being prepared, in which the industry is to outsource research to universities and institutes. How do you find this idea? I am afraid of it. I chair the Committee of Chemistry under the Polish Academy of Sciences, which is quite unique among other committees as far as we have always a representation of industry, and it is high-ranking industry. About a year and a half ago, we were visiting the PKN Orlen company in Płock. We were warmly welcomed, but as we went on asking questions about what the Polish chemical industry would expect from science, answers were generally evasive. Trying pm

We want to hold one more meeting with industry representatives to find out what they think about it. to get straight to the point, we were told that the industry would not reveal their dreams for the future for fear of the competition, so it would not outsource such research. And even if they are willing to have one particular current problem examined, should one emerge, it is, I think, without any significance in the cognitive sense. So I am afraid that this could mean a giant waste of money, because these resources will be very vast. I optimistically assume that the government will not go in for some primitive, inefficient measures such as spending cash and losing any further interest in it. At the moment, we do not know how it is going to turn out. We want to hold one more meeting with industry representatives to find out what they think about it. Perhaps things • will get better. 1-2/2015 polish market

Chemical Industry

grupa Azoty

a strategic company for Poland’s economy Paweł Jarczewski, President of the Management Board of Grupa Azoty S.A., talks to “Polish Polish”.

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Chemical Industry

You have just returned from Davos, where you had an opportunity to talk with global business leaders and represent Grupa Azoty and the entire Polish industry. Is there any message you could share after these talks? The general message could be summed up by the Czech saying: “to se ne vrati”. The times are gone when the world was so peaceful and so prosperous. There was a lot of talk of security at large, including energy security, but also, which seems most challenging, food security. The world’s populations is now 6.6 billion. Conservative projections suggest that in 2050 we will be more than 9 billion. It is necessary, therefore, to increase agricultural production by 60% to, plainly speaking, feed the world. The only way to achieve this is to use fertilisers on a greater scale. pm

It is probably good news for Grupa Azoty, as a large producer of fertilizers isn’t it? Generally yes. However, there are very significant disparities in the world in this respect. In Europe, we use up to 220 kg of nitrogen per hectare. In other places in the world this amount is more than 300 kg, which can be dangerous for the environment. But there are also examples from Asia or Africa, where it is only a few kilograms. And it is precisely in Africa that the largest population growth is anticipated. Europe, and Poland too, can be a leader in the promotion of good agricultural practices and fertiliser cultures. As a Group, we have ventured into Africa, taking over a phosphate rock mine in Senegal. We will soon start processing phosphates into the phosphoric acid and manufacturing fertilisers, which will help us to establish ourselves on this absorptive market. With the global expansion, even if we do not become immediately the company of first choice, we hope to be the preferred one, or at least well known. After all, Polish agriculture has gone a long way from fragmented holdings and backward agrarian techniques to a very modern sector of the economy with a strong processing output. Now we have a surplus of 5.7 billion in food exports, so there is good reason to show Poland as a transformation model in other parts of the world. pm

Grupa Azoty has been listed by the Ministry of the Treasury among the strategic players of Poland’s economy. Is this going to impact the company’s business? Can we expect that appropriate mechanisms will be put in place to support the companies driving the country’s growth?

We have learnt with satisfaction that the Minister of the Treasury has classified Grupa Azoty among the companies of strategic importance for the Polish economy. We find it to be one more, after the company’s Articles of Association, guarantee against hostile takeover attempts we had to deal with in the past. Another, even stronger, protective mechanism for strategic companies is the draft law prepared by the ministry that will allow to block such unwanted investments and, therefore, will ensure state control over the country’s strategic companies, including Grupa Azoty. The European Union, too, came to the conclusion that such measures are needed. On stepping down, the EU Commissioner for Competition Joaquin Almunia, stated that there was a need to revise the rules on takeovers. We did face such a hostile takeover attempt, with another company striving to get a strong shareholding in our business. Countries like Germany or Austria have passed the legislation allowing them to control foreign investment. The strategic resource for you is natural gas. Grupa Azoty annually consumes 2.2 billion m3 of the blue fuel. How do you operate on this market? Has anything changed, as there was talk of supply problems in the past? Poland has leant a lesson and has made progress as regards the liberalisation of the natural gas market and the expansion of the transmission infrastructure westward and southward. Interconnectors were built, storage space was given a boost and we all look forward to the launch of the LNG terminal in Świnoujście. The situation is much better than a few years ago. Grupa Azoty satisfies more than 30% of its gas demand outside the contract with PGNiG, namely with supplies from global corporations. The imports are funneled from the west using a physical reverse flow on the Yamal pipeline. In addition, some of it is bought on a commodity market where it is currently cheaper than on contract. Our company in Tarnów is in a special situation as far as it draws mainly on local gas resources. Our future target is to have half of our demand secured by a long-term contract with a full guarantee of supply and on the basis of futures quotes. The second half will be bought on OTC and commodity markets under shortterm framework contracts with several suppliers and using several lines of supply (including through direct import). This does not exclude purchases from PGNiG according to

the same formula. PGNiG is and will remain our main supplier. The European Union has decided to extend the anti-dumping duties on ammonium nitrate from Russia for another five years. What does this mean for Grupa Azoty? This is very important for us. We are the region’s largest producer of ammonium nitrate, which is the most popular nitrogen fertiliser in Poland. Russia has entered the WTO and pledged to maintain uniform prices for natural gas for all customers, while in fact it applies dual pricing, that is low prices for Russian producers and much higher for western customers. This means that we pay for gas more than Russian companies, and EU duties are precisely intended to protect us against such deregulated competition. Furthermore, Russia pursues a selective commercial policy: on one hand, it has placed an embargo on Polish agricultural products; on the other hand, it wants to sell its fertilizers to Polish farmers. Everyone would agree that it is not fair. pm

You have outlets in more than 70 countries around the world. Last year, the mining of phosphate rock started in Senegal, giving Grupa Azoty Police access to its own resources. Will this success, pioneering on the Polish market, be reproduced in other countries, not only African? Our core market is and will remain Poland and the whole central part of European Union. In particular, we are present in Germany, France and the United Kingdom. However, the consolidation of the Polish fertiliser industry, through the ensuing economies of scale and a more comprehensive portfolio, afforded us an opportunity to gain foothold on new markets. We have boosted our exports to South America and now, in addition to strictly commercial activities, we are looking to invest in Brazil. Likewise, we pursue a development strategy in Africa. In addition to mining phosphates in our Senegalese plant, we are considering launching fertiliser production locally. pm

A fertiliser producer must seek the closest possible cooperation with the customer-farmer. High yields are, in Polish soil conditions, the result of intelligent and accurate fertilisation. What does Grupa Azoty do to develop agriculture in our common interest? Agriculture is the fourth largest sector of Poland’s economy. Agri-food products account for over 12% of the total value of Polish pm

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exports. In the years 2003-2013, the value of Polish agri-food exports increased from EUR 4.01 million to EUR 19.96 million, and Poland is ranked eighth among EU largest food exporters. We follow all these changes in Polish agriculture very carefully, giving a special consideration to this aspect of our business. We feel it is important not only to sell a wide range of modern fertilisers, but also to advise our customers on fertilisation. That is why, in 2011 we decided to establish Puławy Competence Centre, an agricultural thinktank, which combines three contributions: sensibility and experience of agricultural entrepreneurs, know-how of fertiliser producers, and expertise and general vision of research bodies operating in the sector. The Centre’s mission is to promote a model of the agricultural entrepreneur and provide tangible benefits to all participants of the agricultural market. It is a platform for cooperation, and above all, for the exchange of information and experiences between farmers, advisers, research bodies and businesses. The vast majority of the Group’s plastics segment products come from foreign markets. Is the current macroeconomic situation likely to result in increasing domestic sales? Due to the dynamic increase in caprolactam production in China, the global situation has changed. The production of caprolactam and its exports to the east is no longer an end in itself for us. However, we do take notice of the development potential of plastics, which was reflected in our particular investment decisions. As in the fertiliser segment, we are moving towards high-margin products. Therefore, the products that we have exported so far will be further processed in a local centre of plastics processing in Tarnów. In June 2014, we proceeded to the formation of special purpose vehicles and, together with our foreign partners, we will produce highmargin products based on innovative technological solutions, such as films and flexible packaging. • pm

We have learnt with satisfaction that the Minister of the Treasury has classified grupa Azoty among the companies of strategic importance for the Polish

economy.

Paweł Jarczewski has been president of Grupa Azoty since May 2013, member of the Board of Directors of KGHM International (formerly Quadra FNX Mining Ltd), member of the Board of IFA (International Fertilizer Industry Association) for Western and Central Europe. He graduated from the Warsaw School of Economics, Faculty of Foreign Trade, majoring in economics and foreign trade organisation. In 2008-2013, he served as president of the Zakłady Azotowe Puławy chemical company and in 2011-2013, as Vice-President and then President of the Economic Committee of Fertilisers Europe, the largest fertiliser association in Europe. He also represents Poland in the European Petrochemical Association (EPCA).

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Chemical Industry

The best chemical industry players about the future of the sector –

The Chemical Industry Forum & Awards Gala The third edition of the Chemical Industry Forum & Awards Gala was organised in Warsaw, on 20 November 2014, by the Executive Club in cooperation with the Polish Chamber of Chemical Industry. It was attended by the key leaders of the chemical industry (represented by the presidents and board members of the largest Polish and international companies), as well as by government officials. The debate on the condition of the sector and the international rating of the Polish chemical sector was opened by Minister of the Treasury Włodzimierz Karpiński.

uring the third edition of the Chemical Industry Forum, held under the honorary patronage of the Ministry of the Treasury, the Polish chemical sector has been assessed in the context of its potential to compete on foreign markets, to implement innovations effectively, to collaborate with science and undertake challenges related to the changes in environmental regulations. In the opening address, Włodzimierz Karpiński pointed to the strengths of the sector and stressed the opportunities associated with its expansion on foreign markets. “It is extremely encouraging that the chemical industry is developing both in the private sector and in companies with State Treasury shareholding, something that drives the vehicle of Polish exports. The chemical industry has become in recent years one of the leading areas of Polish foreign expansion in a sense of foreign direct investment. Thanks to it, jobs are multiplied in related fields. This shows very clearly that a strong and dynamic economy cannot exist without the chemical sector,” said the Minister of the Treasury. Włodzimierz Karpiński also pointed to innovation efforts taken by the chemical industry: “We must endeavour to make the most of the next EU budget perspective. The chemical industry can boast, as compared to other

industries, a very good, effective cooperation with scientific research units, and R&D departments of chemical companies can be the object of envy. We have a great opportunity to effectively use these resources for innovation, new technologies, extending the supply chain, increasing margins on finished products. We must look here for competitive advantages,” he stressed. The issue of innovation and development was also raised during panel discussions, which focused on the position of the Polish chemical industry on the European market and worldwide. Adam Leszkiewicz, president of Grupa Azoty ZAK SA, argued that Poland is facing an opportunity to strengthen its chemical industry on a global scale. “As far as innovation is concerned, the industry is not quite as we would like it be, but there are ideas on how to improve it. Just look at the Innochem programme, carried out jointly by the Polish Chamber of Chemical Industry and the National Centre for Research and Development,” said Adam Leszkiewicz. Another issue discussed was how to improve efficiency of the chemical industry, which is growing rapidly being one of the most important sectors of the economy, but still needs modernisation and making full use of its key assets. “We have trace amounts of oil and no arguments to influence its price. Therefore, we

need to turn elsewhere to look for our strong points. I see them in scientific human resources: educated, talented people who feel satisfied that they can directly influence the company’s development and financial results,” claimed Marek Sokołowski, Vice President of the Board of Grupa Lotos. The climax of the Chemical Industry Forum was the Diamonds of the Polish Chemical Industry Awards Gala, during which winners of the contest for Poland’s best chemical company were named. In the category “Investment of the Year” the award went to Kulczyk Investments for the acquisition of a majority stake in Ciech by KI Chemistry, a subsidiary of Kulczyk Investments. Boryszew SA Branch Boryszew ERG in Sochaczew received an honourable mention in the category “Innovation Leader” (the main award was not granted). Grupa Azoty ZAK SA received the award for the “Product of the Year” - Oxoplast Medica. The Azoty Group also won as the “Ecology Leader”, and Kemipol received an honourable mention in this category. The title of the “CSR Leader” went to: Lotos Group and BASF Polska. The award for the “Supporting Entity of the Year” was received by the Polish Chamber of Chemical Industry, and the title of the “Top Executive of the Year” was granted to Tomasz Kalwat, Chairman of the Board of Synthos. The Jury also presented a special award for “Efficiency in Management” to PKN Orlen. • 1-2/2015 polish market

Chemical Industry

We must always be two steps ahead of the market Aleksandra Sieczkowska-Pachelska, Vice-President of PERN “Przyjaźń,” talks to Patryk Mirecki.

Poland’s economy is heavily dependent on Russian oil supplies. How can this dependence be reduced in current conditions, for the sake of the country’s energy security? What could be the role of PERN in this respect? Poland’s economy is not dependent on Russian oil. Natural gas supplies from Russia are the only option for Poland indeed, but the situation is completely different with oil. Oil can be purchased from various suppliers. The PERN system is totally prepared to fully supply Polish refineries (PKN Orlen and Lotos Group) with oil from outside Russia via the seaport of Gdańsk. Both the PERN-owned Naftoport - a transshipment port for oil tankers, and the PERNowned Pomeranian pipeline, linking Gdańsk with both Polish refineries, allow to fully supply the Lotos Group and PKN Orlen with any type of oil. This is, by the way, reflected in PERN’s statistics. Ten years ago oil supplies by sea were equivalent to two tankers a year, whereas today it is more than 80 tankers (8 million tonnes per year) and the trend is up. In recent years, we allowed into the PERN system several different types of oil, including from Kuwait, Libya and the North Sea. Refineries strive to diversify suppliers and PERN makes it possible for them with its pipeline and storage infrastructure. Our next step will be the construction of an Oil Terminal in Gdańsk as a transshipment hub of various types of raw materials. pm

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How is the launch of the Oil Terminal in Gdańsk going to impact on PERN “Przyjaźń”? Naftoport has been in operation, under its present name, for over 20 years (although the first loading dock was opened as early as July 1975), and is still our gateway in terms of oil supplies. In 2016, we are planning to commission the oil part of the Oil Terminal in Gdańsk, connected with the transshipment infrastructure of Naftoport. With the Terminal put into service, it will be possible to develop new services for refineries and private operators trading crude oil on world markets. These services will include: storage, blending and refining, as well as import and export. pm

How important will this investment project be for the Polish economy? The terminal will first of all allow Poland into the global energy commodity market, which is concentrated in Europe in the ARA area (Amsterdam, Rotterdam, Antwerp). The terminal will also contribute to further diversification of supply sources and foster energy independence. It will afford storage capacities both for energy security and purely commercial purposes. We are planning to cooperate with the Azoty Group and Lotos Group in the field of chemical products. pm

Chemical Industry In addition to increasing the country’s energy security, the Oil Terminal will have a commercial clout, is that right? The Oil Terminal will handle transshipment, import, export and storage of crude oil, its derivatives and chemicals. This will be the only such storage and transshipment complex in Poland. There is no other similar facility. The construction will be divided into stages. In the first stage, we will focus on the crude oil part, which is expected to be a bull’s eye, namely due to ongoing market changes. pm

How has the fall in crude oil prices on the world markets affected PERN’s financial results? Due to the plummeting oil prices, there is a growing demand for oil storage services. Oil trading companies assume that after the slump the prices will eventually rebound, which will offset storage costs. For that reason, all of our storage facilities are bursting at the seams, which brings the company additional revenues. pm

Oil markets have flipped into a contango, a term used to describe a situation when the futures contract price of a commodity (in this case oil) is higher than the current spot price. Oil prices are falling, but, as we know, buyers expect them to go up in the future and are willing to pay traders a premium to secure the commodity and avoid storage costs and future delivery risks. Traders with experience in hedging transactions gain, making lots of money. It is a great time for companies that know how to manage risk. All indications are that this will be a successful year. Falling oil prices generate demand for commercial storage, but also for oil transport. The greater the supply of oil on the Polish market, the lower the prices and, consequently, the greater the demand for diesel and gasoline from retail customers. This in turn stimulates production and drives

Traders with experience in hedging transactions gain, making lots of money. It is a great time for companies that know how to manage risk.

One of the pillars of PERN’s business is the storage of crude oil. To what extent is this activity dictated by the national energy security considerations? Oil stockholding obligation is imposed by law. Our tanks meet all technical and legal standards necessary for safe storage of crude oil. These are ground tanks with double floating roofs, located in three bases: in Płock, Gdańsk (and therefore close to the refineries) and in Adamowo. Owing to the convenient arrangement of tanks and flexible access to compulsory oil stocks, our storage services enjoy a good reputation and steady interest. Please also note that PERN is a shareholder of OLPP, a company specialising in the storage of fuels, including compulsory stocks. pm

Is the Polish legislation on the compulsory stock obligation not too restrictive compared with other European countries? The Polish legislation in the area of mandatory reserves is essentially based on EU directives, so I would not call it restrictive. However, we feel a more flexible approach is needed allowing to store compulsory stocks of other countries. The Polish law provides that an entity operating in another EU country can only keep compulsory stocks in Poland pursuant to intergovernmental agreements, which are concluded in a long and very formal process. From our point of view, I mean from the point of view of the service provider, it would be optimal if foreign stocks were held in Poland on the basis of agreements entered into at a company level and by government agencies responsible for reserves. This would make the market more flexible and immediately responsive to demand for this type of service. pm

Is PERN planning to expand its storage infrastructure? As I mentioned, we are planning to commission six new oil tanks as part of the Oil Terminal in Gdańsk at the beginning of 2016. Now is a good time for such investment projects. The market is evolving and we must always be two steps ahead of it. pm

How will the situation on world oil markets affect your company in 2015?

compulsory stock levels. The strong dollar and euro against the zloty are favourable factors too, since the majority of our services are cleared in these currencies. Will it be possible to build in the future other pipelines – apart from the Druzhba (Friendship) – from the Russian direction? Today, we target the expansion of the network of product pipelines, for transporting gasoline and diesel. We are in talks about the expansion of the Boronów-Trzebinia pipeline and a product pipeline from Gdańsk to Płock. These are huge and costly projects, which is why the decision on their implementation must be preceded by a thorough analysis and commercial contracts. When it comes to both crude oil and fuels, the solution can be acquiring the existing pipelines, operating in conjunction with our system. Such a possibility is considered and we are open to discussion. • pm

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Chemical Industry

“Our majority shareholder is Jan Kulczyk, PhD, the richest Pole and a business visionary, whose goal is to make Ciech a national champion with a global outreach,” Dariusz Krawczyk, President of the Management Board of Ciech SA, tells Jerzy Bojanowicz.

How would you justify the statement posted on your website: “The Ciech Chemical Group is one of the leaders on the European chemical market”? The Ciech Chemical Group is Europe’s second biggest manufacturer of soda ash, light and dense, and also a cost leader in its business. Our plants are very well situated geographically - we have factories: in Poland - Soda Polska Ciech in Kujawy, in Germany - Sodawerk Strassfurt and in Romania - Uzinele Sodice Govora. The group consists of a dozen companies, including nine major ones, employing over 3.5 thousand people. Equally important, the group is owned by Jan Kulczyk, the founder of the international group Kulczyk Investments, the most global of the Polish companies, which works in partnership with the world’s largest investors. Our common goal is to make Ciech a world leader in the chemical industry and it is a declaration that we take very seriously. This is also confirmed by international experts. In the latest classification by Moody’s one of the largest credit rating agencies - we are counted among 70 largest chemical companies in the world, something that gives us a positive outlook for 2015. Altogether, Ciech is seen as one of the leaders of the European chemical market. pm

Target:

maximising shareholder value 26 polish market

The company was established in 1945 under the name Centrala ImportowoEksportowa Chemikalii i Aparatury Chemicznej - CIECH (Import and Export

Chemical Industry Centre of Chemicals and Chemical Equipment). What would you cite as milestones of the past 25 years? It must be remembered that at the turn of the 1980s and 1990s, that is at the beginning of the political and economic transition in Poland, Ciech was the largest foreign trade company, having for example the monopoly for crude oil supply to Polish refineries. But it lost it very soon, which meant it had to find itself a new place on the market. Therefore, the first milestone of the last 25 years was the transformation of the company in the 1990s into a chemical group, namely through the acquisition of other companies, including the soda plants in Mątwy (Inowrocław) and Janikowo, now forming the core of the group. An important moment was also its transformation in 1995 into a joint stock company and registration of the name Ciech SA. The company’s privatisation and flotation on the Warsaw Stock Exchange (WSE) in 2005 marked yet another success. A successful IPO provided it with capital and resources to implement ambitious acquisition plans. Its prestige got enhanced, and so did the brand credibility and recognition. An important date for Ciech was also 2006, when the company confirmed its position as one of the leaders of the European chemical industry, finalising the acquisition of the group’s first foreign manufacturing company – the Romanian soda factory US Govora. In the same year, the group acquired the Organika-Sarzyna Chemical Plant, and a year later it took over the German soda producer Sodawerk Strassfurt, thereby consolidating its position as Europe’s second biggest producer of soda. Another important period in the history of the company was the global recession and the restructuring process, which is still going on. At the outbreak of the economic crisis, Ciech was among the companies that had entered into currency option contracts. The losses incurred amounted to approx. PLN 235 million. The company lost its capacity for timely repayment of loans and found itself on the verge of bankruptcy. And? The owner made drastic changes in the organisation of the company, ousting in April 2012 a majority of the Board members and appointing myself as President. The new Board began by cutting costs, but also ran in parallel development projects. This was a tough task, because we did it... without money. The only thing we had was a detailed restructuring programme that we implemented point by point. An effective, sometimes brutal, fulfillment of it resulted in a rapid recovery of liquidity, but we knew what we wanted to do next even before that. The last milestones would be in my opinion the change of ownership - in June 2014, pm

a majority stake in Ciech SA was acquired by one of the companies owned by Jan Kulczyk and the adoption in November of a new business strategy for 2014-2019. pm

Speaking of money, how is it possible that, compared with the same period of 2013, net sales in the first half of 2014 were about 12% lower, and gross profit - 10% higher? The key is efficiency. In recent years, we have slashed costs, increased margins and worked towards a better price management. We have also invested in new production capacities. The combination of these factors has resulted in the fact that, despite lower sales, we enjoy a growing profitability.

The scope of your business covers the production, trade and distribution of chemicals. What industries are your biggest customers? We have a global outreach, dealing with international customers from a number of sectors: chemical, pharmaceutical, food, construction, agriculture, glass and furniture, as well as with individual consumers.

And how do you assess the past year? It was a good year. Both the company and its shareholders have reason to be satisfied. The company recorded good financial results, the share price increased by approx. USD 40, and debt went down. After three quarters of 2014, our EBITDA margin proved to be the highest among all chemical companies listed on the Warsaw Stock Exchange. After the successful execution of the rescue plan when we were struggling for survival, we boldly moved on to the phase of operational improvement and development. Change in the corporate operational management allowed us to fully use our production capacities. What I am personally happy about is that we managed to negotiate a compromise agreement with the trade unions in all plants. The inner peace and mutual understanding of the company’s current situation is a prerequisite for further development that would benefit its employees and investors. Of course, the most important event from the point of view of the company was a change of ownership, which opened up completely new prospects. The leadership and business experience of Jan Kulczyk is for us an opportunity to explore new markets, pursue global development and effectively implement the Group’s business strategy in the years 20142019, which was positively received by the market and analysts.

Which company of the Ciech Chemical Group would you call “the jewel in the crown”? Each of our companies occupies an important place in our business strategy and they are all the objects by my special attention and interest. I see a lot of potential in each of them, which is why all of the group’s entities implement ambitious development programmes, the aim being a steady improvement of profitability. I guess “the jewel in the crown” would be Ciech SA - our headquarters. That is where decisions of strategic importance for the entire group are made. On the other hand, if I really had to choose one of our manufacturing companies, it would probably be Soda Polska Ciech, which accounts for over half of our total output of soda, a product which is at the core of our business. pm

And which products would do call your flagships? Naturally, our core business is the production of soda, whereas our main products are: soda ash (Europe’s second largest manufacturer), polyester and epoxy resins, pesticides and silicates. pm

Ciech SA operates through its foreign branches. How are they doing and what is their share in the Group’s income structure? In the era of globalisation and the EU single market, sales are managed from our headquarters. The notion of exports and their share in our turnover has a different meaning today than ever, because it is pointless talking about exports from Poland if we have production facilities in Romania and Germany, which also market their products outside the country of manufacture. I would add that the major cause of the financial meltdown of the Ciech Group in the previous decade was – apart from the mess with the currency options – the acquisition of the factories in Romania and Germany, and Polish plants Organika-Sarzyna and Zachem, since the acquired assets were not integrated rapidly enough. Today, the company would survive a loss of PLN 250 million, but it generates profits instead. pm

What, if any, was the impact of the conflict between Russia and Ukraine on the Group’s performance? Every crisis is a potential opportunity, especially in a business context. It is a truth known for centuries, for example the Chinese word “crisis” (weiji) is composed of two characters meaning a danger, or a threat, and the beginning of a new lifeline or a chance. I like emergencies, because I always try to see a good side to them. And as president of Ciech I have to make the most of the emerging market opportunities. As a result of the geopolitical crisis in Ukraine our competitor – a soda factory in Crimea’s city of Krasnoperekopsk – has become part of the territory controlled by Moscow. Ukraine’s need to gain economic independence from Russia has led the Ciech Group pm

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Chemical Industry

The only thing we had was a detailed restructuring programme that we implemented point by point. to sign several major contracts with Ukrainian soda customers. In contrast, our sales in Russia were negligible.

Hence the decision to locate the R&D centre in Nowa Sarzyna in south-eastern Poland. Did the Ciech Group benefit from the funds offered under the EU financial plan 20072013? Yes, to a large extent. We obtained funding for several infrastructure, R&D and environmental projects from the European Union under the Operational Programme Infrastructure and Environment, the Operational Programme Innovative Economy, as well as from the domestic resources and from the Norwegian Financial Mechanism 2009-2014. In total, the Ciech Group received grants worth over PLN 110 million under the previous EU financial perspective. Subsidies were granted, among others, to two projects aimed at the modernisation of electrostatic precipitators in Janikowo and Inowrocław CHPs for a total amount of PLN 30.8 million, to the construction of the flue gas desulphurisation installation in the Janikowo CHP (PLN 50.3 million), to the construction of a fly ash channelling and isolation system (PLN 41 million), to two projects aimed at the development of CKTI boilers in the Janikowo CHP pm

What would you call your “philosopher’s stone”? It is a skillful combination of a continuous operational improvement, including cost cutting, ambitious development plans and the construction of new production lines. Investments are one of the pillars of the Group’s development strategy. New production capacities are put into use systematically: both in the soda segment and in the organic one. An R&D centre is expected to open in 2017 in Nowa Sarzyna. The project is carried out by dedicated managers. Funds have also been secured for the first stage of the project in the amount of a dozen PLN million. At the same time, we are recruiting Polish scientists and starting cooperation with foreign scientific research centres. We strive to develop a technology to produce highest purity soda, which is used for example for haemodialysis, and in Organika Sarzyna we want to produce new pesticides and resins. pm

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meeting environmental requirements (PLN 83 million), and to the project of development of distillation sludge decantation and filtration facilities in Inowrocław (PLN 36.4 million). Other noteworthy projects include the construction of an innovative facility for the production of MCPA and MCPP-P compounds (PLN 146.1 million) and the one called “Glass Packaging - Vitrosilicon turns vision into reality” (PLN 19.2 million). The first one aimed to build an innovative process line for the production of a substance which forms the basic raw material for pesticides, and the second one - to carry out industrial research and development in order to develop an innovative technology for the production of glass containers (1st stage). The 2nd stage involved the implementation of the results of research and development in the company’s operations. As a result, an innovative product is offered as part of Vitrosilicon. Currently, we are looking into the expenditure rules, set out in Poland, Germany and Romania, concerning the new financial perspective 2014-2020, and as soon as individual documents are approved by the European Commission and national authorities, we will apply for funding for particular projects. What are the Group’s development directions and its value growth sources, as specified in the corporate strategy for 2014-2019 adopted by the Supervisory Board in November 2014, which, as you said, was enthusiastically received by the market and analysts? We intend to continue further organic growth and infrastructure investment. Our main goal is to maximise shareholder value with a focus on the soda segment, having today many competitive advantages we want to make the most of. One of them is for example the geographical distribution of our production facilities, which allows us to effectively reach out to the existing European customers and to expand into new, attractive markets, including in North Africa and Asia, that we find very promising. We see there a growth potential and the expansion base is our Romanian company. The organic segment will be developed on the basis of Organika-Sarzyna, which is part of the Ciech Chemical Group. The company will be systematically developing distribution channels to better reach customers, increase cost efficiency and production capacity utilisation. Also, responding to the needs of customers, we plan to diversify our product portfolio and boost the R&D segment. In addition, the Group harbours a high profitability improvement potential, namely thanks to the ongoing process of restructuring and cost reduction. Altogether, this translates into stable development foundations, which we obvious• ly intend to maximise. pm

Chemical Industry

Advanced chemo-, bio- and nanotechnologies of fine (bio)chemicals and hybrid materials for multiple applications

ielkopolska is among the leading academic centres in Poland, harbouring a great R&D potential. The essence of the comprehensive knowledge transfer model, generated and pursued in the city of Poznań, the capital of Wielkopolska region, is building an effective relationship between invention, pursued at universities and research institutes, and innovation, developed at the Poznań Science and Technology Park (PSTP) of the Adam Mickiewicz University Foundation, by creating all elements necessary for the effective transfer of knowledge, especially Polish scientific and technological achievements, to business practice. At the core of the model is the Wielkopolska Centre for Advanced Technologies (WCAT) in Poznań, a multi-disciplinary institution focused on design and characterisation of new materials and biomaterials of multiple applications.

The WCAT project is co-financed (85%) by the European Regional Development Fund under the Operational Programme Innovative Economy 2007-2013 with a total budget of EUR63 million. The construction of WCAT infrastructure (buildings) started in the fall of 2010 and the operational phase of the research centre is scheduled for the beginning of 2015. WCAT brings together the best specialists of natural and engineering sciences and is an infrastructural venture of the Poznań scientific community. The Centre is a consortium of five universities: the Adam Mickiewicz University (AMU), which is the project coordinator, Poznań University of Technology, Poznań University of Life Sciences, Poznań University of Medical Sciences and Poznań University of Economics; four institutes of the Polish Academy of Sciences: the Institute of Bioorganic Chemistry, Plant Genetics, Human Genetics, and Molecular Physics; Institute of Natural Fibres and Medicinal Plants; Poznań Science and Technology Park of the Adam Mickiewicz University Foundation and

the City of Poznań. The project is based on the research know-how and credibility of leading scientists, working in the key institutes of the regions. The vision of WCAT is to include existing organizations (universities, research institutes, and science - technology park) to act like one independent entity, which will generate synergies by combining the work of the best scientists. From mid-2015, WCAT (after the transfer of the assets from AMU) will be operating as an independent legal entity of the Foundation (accordingly advised European Investment Bank engaged by European Commission in Jaspers initiative), as an independent R&D institute modelled on the Fraunhofer Society or VTT Research Centre of Finland - both most experienced of the R&D centres in Europe with 60-70 years tradition. The mission of the centre is to initiate and carry out large scientific and research projects, in cooperation with leading international research institutions, as well as to develop strategic programmes coordinated 1-2/2015 polish market

Chemical Industry

and managed by the National Centre for Research and Development. Last but not least, important parts of this mission are internationally based research projects conducted in cooperation with European and worldwide industry, which is aimed at creating conditions for successful technological transfers. The objective of the multidisciplinary activity of the centre is to develop original methods for the synthesis of chemicals, biochemicals and agrochemicals, called fine chemicals, and a new generation of biomaterials and nanomaterials and their precursors, designed of by teams chemists, physicalchemists and biochemists. This research activity will be followed by the development of advanced technologies and biotechnologies for the production of these fine (bio)chemicals and precursors of materials to be used in optoelectronics, ceramics, medicine, pharmacy, agriculture and other fields of high-tech industry.

2. Advanced biotechnologies Industrial and medical biotechnologies for the production of chemicals and biochemicals as well as therapy and diagnostics (including testing of biopreparations and biopharmaceuticals). •

•

• •

The research programme of WCAT is focused on the two areas.

Technologies of bio/nano/materials for targeted therapies of human diseases and regenerative medicine; Biorefining technologies for the sustainable processing of biomass and living organisms into bio-based and bio-active products and bioenergy; Technologies using living organisms as bioreactors for production of unnatural bio-based materials, models of human diseases and phytoremediators; Biotechnologies for agriculture; Artificial bio-analogues and parabiological constructs based on known and modified components of living organisms - artificial/modified biopolymers (DNA, RNA, proteins) and their analogues;

1. Advanced chemical technologies and nanotechnologies

20 425 sq.m.

Molecular and macromolecular highly processed chemicals and hybrid materials with special applications. •

•

• • •

Design and development of original syntheses of fine chemicals and biochemicals (pharmaceuticals, agrochemicals) organic, organometallic and inorganic chemicals (chiral molecules, functionalised (organosilicon), organic compounds, organometallics for organic synthesis, ionic liquids, initiators for polymerization, catalysts, zeolite materials, etc.); Polymer nanocomposites as hybrid organic-inorganic materials (functionalised silsesquioxanes, modified silicas, eco-polymer composites reinforced with natural fibres); Carbon nanocomposites as materials for optoelectronic applications and electrochemical sources of electricity and electricity storage and other applications; New generation of nanosized materials and their precursors; Functional materials (biocompatible and biodegradable with tailored properties); Intelligent materials with tailored (optoelectronic, mechanical and magnetic) properties for multiple applications (e.g. organic electronics).

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new processes and industrial biotechnology. It is worth emphasizing that since 2007, most of the joint research projects based on the above programme have been carried out by scientists from the WCAT consortium members working in interdisciplinary teams which are ready to continue the research work in the operation phase of the project. Such an integration of the scientific community of Wielkopolska region offers a chance for creating a research and technology centre of high international standing (the European Centre) combining the best experts in natural and technical sciences who would work on design and development of unique (nano)materials and biomaterials of wide use. WCAT will offer jobs to over 200 research and technical workers as well as 300 PhD and MD students recruited mainly from universities and institutes based in Poznań. There will also be jobs for experts from other European countries. The Centre has highly specialized equipment, which will be available for use by the scientific community and small and medium

C D B

EUR 63 million Main zones of the WCAT: • Center of Biomedical Technology with Animal House (Building A) • Center of Industrial Biotechnology with Green House (Building A) • Center of Chemical Technologies (Building B) • Center of Materials Science (Building C) • Regional Laboratory of Unique Equipment (Building C) Structure of Wielkopolska Centre for Advanced Technologies • •

Epigenetics in translational medicine; Technologies of stem cells for therapies and regenerative medicine.

The fine (bio)chemicals and hybrid (nano) materials produced will be thoroughly characterised and their properties (e.g. photochemical, mechanical, magnetic etc.) will be studied. The planned scope of research is closely related to the strategic programme Horizon 2020 for new materials technologies, designing

enterprises from the region as well as R&D centres of Polish and international (European) companies. The Service and Technical Facilities with the Technology Transfer Centre (D) will ensure efficient collaboration among all parts of WCAT. In terms of international cooperation with foreign R&D partners, the members of WCAT have cooperated within well recognized initiatives, such as RAMIRI (Realizing and Managing International Research Infrastructures) and RAMIRI2 projects, coordinated by Imperial College London and Elettra Synchrotrone

Chemical Industry

Trieste. This cooperation will lead to a strong position of the Regional Laboratory of Unique Equipment as a part of the European Road Map of R&D infrastructures. WCAT will cooperate with the research and development centres of Polish and European corporations and the Poznań Science and Technology Park of the Adam Mickiewicz University Foundation (PSTP), the oldest park in Poland with its departments presented below plays the key role in the transfer of technologies and their commercialization. The Park, with R&D and Innovation and Promotion Centres as well as a group of business and technology incubators for innovative spin offs and start ups, constitutes the necessary link needed for the efficient transfer of new materials technologies to practice, especially to industrial parks and high-tech industry (see the diagram below). The research organisation „Wielkopolska Centre for Advanced Technologies which was registered as not-for-profit foundation

of the Centre and represents the Centre’s interest to outside institutions. The Administrative Board is obliged to control the financed activity of the Centre. The Scientific Board comprises at the moment 15 experts - representatives of WCAT consortium members who are responsible for defining the main directions of research work at the starting point of the centre activity and above all for recommending of candidates for the International Scientific Board. The International Scientific Board of WCAT consists of renowned international experts in the field of materials science and fine chemicals, in particular in nanomaterials, biomaterials and their precursors as well as technologies for obtaining them. The International Scientific Board has up to 20 members, of which at least 75% are scientists from foreign research centres. The chairman is planned to be Professor Krzysztof Matyjaszewski from the Carnegie Mellon University (USA), who is a world-renowned expert in the field of

Professor Bogdan Marciniec Chairman of the Coordination Committee of WCAT Consortium

Wielkopolska Centre for Advanced Technologies Umultowska 89c, 61-614 Poznań, Poland

www.wcat.pl

Model for Cooperation between WCAT and PSTP

in June 2014 in Poznań, is a research institution with a legal status. The Centre has been established by the Adam Mickiewicz University in Poznań. The managerial bodies of the Centre are at the moment: the Executive Board, Administrative Board and Scientific Board. The Executive Board has 3 to 5 members appointed by the founder, the Rector of AMU. The Board directly correlates the work

polymer and materials chemistry. The tasks of the International Scientific Board include: the revision of the main directions for research activities of the Centre, evaluation of its long-term development plans and evaluation of its international cooperation programmes. •

Project is co-financed by the European Regional Development Fund under the Operational Programme Innovative Economy 2007 - 2013. 1-2/2015 polish market

Chemical Industry

Centre of Molecular and Macromolecular Studies

a short presentation

Prof. Stanisław Słomkowski

he Centre of Molecular and Macromolecular Studies (CMMS) in Łódź belongs to the network of the institutes of the Polish Academy of Sciences (PAS). The Centre was created in 1972 on the initiative of professors Jan Michalski and Marian Kryszewski, members of PAS, by decision of PAS Presidium and with support of the authorities of Łódź. It was developed by prominent scientists, among whom, apart from the mentioned above, were professors: Julian Chojnowski, Marian Mikołajczyk (PAS member), Stanisław Penczek (PAS member), Aleksandra Skowrońska and Wojciech J. Stec (pas member). During more than 40 years the Centre has developed from a relatively small laboratory to a full grown research institute which employs nearly 130 researchers. The Centre was first led by Prof. Jan Michalski, then by Prof. Marian Mikołajczyk, and since 2008, it has been headed by Prof. Stanisław Słomkowski. The Centre’s scientific activities were coordinated by its subsequent deputy directors: Prof. Marian Kryszewski, Prof. Marian Mikołajczyk and Prof. Przemysław Kubisa. The position is currently held by Prof. Marek Potrzebowski. Since its inception, the Centre is the place where the research is carried out crossing the traditional boundaries of chemistry and physics. The common feature of studies in the Centre, in fields of organic, bioorganic and polymer chemistry is concentration of scientific interests on spatial structure of

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small and large molecules containing heteroatoms. Particular interest is concentrated on synthesis and properties of chemical compounds playing important roles in living organisms and on their not natural derivatives which are also bioactive. There are also developed methods allowing for selective or elective synthesis of compounds with mirror structure (so-called enantiomers). The scientists from the Department of Heteroorganic Chemistry (chaired by Prof. Piotr Kiełbasiński) developed synthetic routes to the natural, biologically active antibiotics like methylenomycin, sarkomycin, rosaprostol, and prostaglandins. Their colleagues from the Department of Bioorganic Chemistry (chaired by Prof. Barbara Nawrot) synthesize and investigate molecules which could be used as tools to study functions of organism on molecular level. In particular, the modified nucleic acids are synthesized with purpose to be used to change or inhibit certain functions within living cells. These studies are directed towards development of new and better drugs for treatment cancer and neurodegenerative diseades (e.g. Alzheimer disease). In the Department of Polymer Chemistry (chaired by Prof. Andrzej Duda) there are carried out studies of synthesis of (bio)degradable polymers obtained from monomers of natural origin. The Centre is one of the world’s leading institutes in studies of polymers from the natural and renewable resources with

knowledge and expertise of its researchers being a firm basis for applied studies. A common feature of the studies of (bio) degradable polymers as well as of the studies carried out in the Centre in the field of organic and bioorganic chemistry is that many investigated compounds are useful for medical applications (as drug carriers and temporary scaffolds used in tissue engineering). Studies of of molecular processes are complemented with those on nano- and micrometer level. In studies of objects of the nanoand micrometer size discrimination between chemistry and physics if often blurry. Sometimes molecules of a similar structure can be obtained either by a physical methods or by a chemical synthesis. In the Department of Polymers Physics (chaired by Prof. Andrzej Gałęski) and the Laboratory of Polymer Structure (chaired by Prof. Ewa PiórkowskaGałęska) the researchers carry out successful studies allowing, by control of polymer nanostructure, to obtain materials with unique properties. As a result, scientists were able to obtain polymers with tensile strengths greater than that of steel (per mass unit) and with unusual barrier properties – polymeric films with reduced gas permeation especially useful for the long term food storage. Research in Department of Engineering of Polymer Materials (chaired by Prof. Stanisław Słomkowski) is directed towards development of synthesis and formation by physical methods of polymeric nano- and microparticles, and for

Chemical Industry

converting some of them into ceramic particles. These nano- and microparticles found applications as carriers of drugs and bioactive compounds used in medical diagnostic tests. In the team led by Prof. Słomkowski are also carrid out studies of the synthesis of metal nanoparticles – contrast reagents used in computer tomography. Development of chemistry would be impossible without the simultaneous development of methods suitable for studies of materials’ structure. The Centre is specialized in this field in studies based on nuclear magnetic resonance and mass spectrometry techniques. These studies are carried out in the Laboratory of Structural Studies (chaired by Prof. Marek Potrzebowski). In particular, investigated are elements of subtle structure of compounds and materials using the solidstate NMR techniques. The Laboratory of Computer Modelling (chaired by Prof. Marek Cypryk) plays a very special role the the Centre’s. The research carried out in this group is directed towards modelling of l three dimensional structure of chemical compounds and their interactions, as well as towards modelling of polymerisation processes. Studies in this laboratory not only complement experimental work, but often are used for effective planning of new experiments. With purpose to solve many computational problems the researchers of the Laboratory of Computer Modelling create their own mathematical tools, being especially successful writing software dedicated for the modelling of polymerisation processes.

Basic versus applied studies There is an ongoing debate in the press, on the TV or on the radio whether more important are applied or fundamental studies. Using an example from our own work, which will be described below, I hope to convince the readers that such an opposition is wrong. Basic research is necessary because with an exception of a few cases, where a discovery of practical importance appears suddenly, unpredictably by serendipity, the majority of industrial developments are built on a solid foundation of the already established basic knowledge. An example can be the project BIOPOL (POIG.01.01.02-10-025/09 – a technology for synthesis of biodegradable polyesters from renewable raw materials) implemented in the framework of the Operational Programme Innovative Economy. The project was coordinated by the Centre of Molecular

and Macromolecular Studies, Polish Academy Sciences (Łódź) and carried out jointly with the Institute of Biopolymers and Chemical Fibres (Łódź) and the Chemistry Department of the Warsaw University of Technology. For nearly 40 years, Prof. Stanisław Penczek and his collaborators (among them professors: A. Duda, P. Kubisa and S. Słomkowski) were carried out fundamental studies of the mechanisms of polymerisation of cyclic esters. As a result, the group gathered an extensive knowledge on initiation reactions, mechanisms of growth of macromolecules, side reactions, stereochemistry of polymerisation, control of molecular weight of synthesised polyesters and on molecular weight distribution. At the same time, although to a lesser extent, the basic research on polyesters was carried out by the scientists from the Chemistry Department of the Warsaw University of Technology (Prof. Z. Florjańczyk and Prof. G. Rokicki). However, only by combining of the mentioned above basic knowledge with the practical one – contributed by the Institute of Biopolymers and Chemical Fibres (led by Prof. D. Ciechańska) and by the Laboratory of technology of the Chemistry Department of the Warsaw University of Technology (chaired by Prof. L. Synoradzki) allowed the effective realization of the project BIOPOL. The aim of the project was to build a largelab experimental installations for the synthesis of polylactide and aromatic-aliphatic polyesters. The installations were completed and set operational in 2014.They are used for the synthesis of various types of polymers mentioned above. Research teams currently cooperate with industrial companies with purpose to construct semi-technical installations for the synthesis of (bio)degradable polyesters. It is an urgent time for this stage to start. The use of (bio)degradable polymers is no longer a matter of the misty future, but is becoming a reality. One could expect that market share of (bio)degradable will increase. The use of (bio)degradable polymers, even for some applications only, would reduce plastic pollution. The countries, which fail to develop their own production in this field will not only miss the chance for lucrative exports, but will certainly be forced to import these polymers. In conclusion, I wish to emphasise that if the funds had not been secured in Poland many years ago for the basic studies of the synthesis of (bio)degradable polyesters, then it would be much more difficult, if possible at all, to conduct applied research now. •

DEVELOPMENT OF CHEMISTRY WOULD BE IMPOSSIBLE WITHOUT THE SIMULTANEOUS DEVELOPMENT OF METHODS SUITABLE FOR STUDIES OF MATERIALS’ structure.

1-2/2015 polish market

Chemical Industry

New, original generic technologies:

a Polish R&D strategic implementation programme Prof. Janusz Rachoń, former rector of the Gdańsk University of Technology, currently head of the Department of Organic Chemistry at the Faculty of Chemistry

he pharmaceutical sector is an undisputed leader among Polish innovative companies. According to data from the Institute for Market Economics (IBnGR), a high level of innovation is an extremely important feature of the Polish pharmaceutical industry from the point of view of the entire Polish economy. In 2009, the expenditure on research and development in the pharmaceutical sector amounted to PLN 207.8 million, according to the Central Statistical Office (GUS). In other words, the pharmaceutical industry recorded the second largest R&D spending among Polish manufacturing industries. It is all the more important that the overall innovation level of the Polish economy is very low, especially against the background of other EU countries. Poland’s pharmaceutical industry is of great significance to the whole economy. Above all, however, it plays a crucial social role in providing Poles with wide access to modern, effective but also cheap drugs. Given the demographic projections, there can be no doubt that the social role of the sector in the coming years will be gaining importance. GUS forecast that people aged over 60, that is those who most frequently use medical and pharmaceutical care, will represent approx. 28% of Poland’s population in 2030. In conjunction with the fact that elderly are typically multi-disease patients, this will result in a significant increase in demand for drugs for the treatment of diabetes, hypertension, overweight and obesity, cancer, degenerative diseases, like Alzheimer’s disease,

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Parkinson’s disease, osteoporosis and other diseases. Considering the above, it is clear that resorting to generics is a reasonable solution as it allows to meet the challenges of the aging population, but also to raise competitiveness of the Polish pharmaceutical industry. A generic drug is a pharmaceutical agent equivalent to the original drug, but manufactured and marketed only after the original drug’s patent protection expires. It contains the same active ingredient, and meets the same safety and quality requirements as the original one. In order to enter the market, a generic drug must pass a series of equivalence tests, evidenced thereafter in bioequivalence studies. Generics allow to significantly reduce treatment costs and increase the availability of modern drugs. Depending on drug valuation and reimbursement policies in individual European countries, generics are usually between 20% and 90% cheaper than the original products. The Polish pharmaceutical sector has extensive knowhow in the production and improvement of generic drugs. The characteristic feature of the Polish drug market is that domestic manufacturers produce and sell mainly generics, while most innovative medicines are sold here by foreign manufacturers(approx. 60% of imports). According to Forbes (2 October 2012), the cost of launching a new drug varies from USD 1 to 11 billion. There is little chance of a Polish pharmaceutical company developing an original drug due to financial reasons. Many

Chemical Industry research teams in Poland take up research projects aimed at new biologically active compounds. But such an objective has no broader perspective, because the Polish pharmaceutical industry lacks sufficient resources for tests and the registration and promotion of the original drug. Therefore, such projects will remain purely academic. If commercialised, the result may be, at best, selling the patent rights to a large foreign company for a relatively small amount of money. That is why Polish manufacturers reach for cheaper equivalents of original drugs - generics. A solution proposed must be patentable. Especially academia should bear in mind that even the best innovative solution freely available on the market becomes useless for industrial applications. Strong competition among generic producers is pushing down costs. Lower costs and competitive advantage should be achieved through the development of innovative solutions with high production efficiency, low energy consumption and environmentally friendly. Large pharmaceutical companies that introduce original drugs focus on the development of new active ingredients. Benefiting from patent protection, they do not face solid competition, so technical excellence and efficiency pose no challenge for them. Among important elements justifying the launch of a strategic programme aimed at generics one can cite a wellprepared intellectual base offered by universities, institutes operating under the Polish Academy of Sciences and research bodies, as well as a growing number of chemistry, pharmacy or biotechnology graduates. Moreover, for many years biotechnology has been one of the so-called “ordered specialties” (by the Polish Ministry of Science and Higher Education). In order to implement the strategic plan as outlined above, it will be necessary to form consortia bringing together academic institutions and the innovation-oriented pharmaceutical industry. Obviously, this requires specifying the terms of cooperation and the manner of distribution of future profits among collaborating institutions, including the National Centre for Research and Development. Launching the strategic programme titled “The new original methods of synthesis and manufacturing technologies of generics” will bring many fruits: a significant reduction in the operating costs of the National Health Fund (NFZ), modernisation of the Polish pharmaceutical industry and an increase in its competitiveness on the global market, a wider range of products offered by the Polish pharmaceutical industry, additional funds for research from the pharmaceutical companies interested in the programme, job boom in academic centres, institutes of the Polish Academy of Sciences and research bodies, as well as in the pharmaceutical industry, creation of spin-offs tasked by large pharmaceutical companies with the preparation of intermediates in the process of the synthesis of a drug’s active ingredient. In order to illustrate what I set out above, I will give an example from my own experience. Osteoporosis is a skeletal disorder characterised by a low bone mass and an impaired bone micro-architecture. Untreated, osteoporosis leads to increased susceptibility to bone fractures. Osteoporosis most often hits postmenopausal women, degrading their life quality. The person affected suffers pain, has reduced physical fitness and is exposed to osteoporotic fractures in particular the vertebral compression fractures of the spine, and the

Poland’s pharmaceutical industry is of great significance to the whole economy. fractures of the femoral neck and wrist bones), which may lead even to death. It is estimated that one in three women over 50 years of age may be at risk in Poland. In the 1960s, research was initiated into effective inhibitors of osteoporosis, which led to the discovery of bisphosphonates and then hydroxy-bisphosphonates, organophosphorus compounds effectively inhibiting osteoporosis. The scientific team of the Department of Organic Chemistry, Gdansk University of Technology has for many years worked under my direction in the area of basic research in the field of the organic chemistry of phosphorus. The knowledge, experience and skills acquired in the conduct of these studies led us to establish cooperation with the Polharma pharmacential group with a view to developing new, original hydroxy-bisphosphonate technologies. In 2000, a relevant agreement was signed between the Gdansk University of Technology and Polpharma. Their joint research effort was successful. We developed a new and original method for the synthesis and manufacture of alendronic acid and its sodium salt. The method is waste-free, based on very cheap and readily available starting materials, and the whole process is carried out in an aqueous medium and is not disruptive to the environment. The Gdansk University of Technology and Polpharma are co-owners of a new original patent-protected technology for the production of alendronate (alendronic acid). In December 2004, Polpharma marketed the finished drug form Ostemax 70 comfort. This is Polpharma’s new drug for osteoporosis allowing an effective therapy comfortable for the patient - it is taken just once a week. The high price of the original drug is one of the barriers limiting its availability to patients. The Polish equivalent meets all the market registration requirements and is available at an affordable price. In subsequent years our cooperation led to the development of new original technologies for synthesising hydroxybisphosphonates of the new generation, used in the treatment of osteoporosis, i.e.: risedronic acid, zoledronic acid, ibandronic acid. These methods have been patented in Asia and North America, are protected by the European patent and the production of these compounds was launched by Polpharma’s manufacturing plant in Starogard Gdanski. The research results, and above all, the development and implementation of new technologies were honoured twice (2005 and 2014) with the Polish President’s Economic Prize. •

1-2/2015 polish market

Science

Polish pharmacy: w h e r e d o w e s ta n d ?

“Protein from human hair to help in melanoma treatment,” “Biphaline 1000 times stronger than morphine” – such highlights advertise subsequent inventions put into practice by the scientists from the Mossakowski Medical Research Centre Polish Academy of Sciences (MMRC). What are Poland’s chances on the pharmaceutical market? Prof. Paweł Grieb, Head of the Department of Experimental Pharmacology, and Krzysztof Różycki, Head of the Laboratory of Chemical Synthesis and also AliceMed Cluster Coordinator, address the issue. Prof. Paweł Grieb: “Listening about pharmacology, people think of new drugs, especially anti-cancer drugs,” says Prof. Paweł Grieb. “Meanwhile, the cost of a new drug from discovery of a new chemical entity through to its marketing is estimated at USD 1,3-1,7 billion, so we cannot even dream of introducing such a new Polish drug. It is no coincidence that new drugs are introduced almost exclusively by large American corporations. Even Europe does not generate new drugs any more. Obviously, it is not true that nothing can be done, but we need to change the approach and look for market niches where we can actually mean something. One such idea is smart forms of drugs. A new chemical entity is not always needed to obtain new therapeutic effects. It is often enough to give the old one a new form, and you can get pretty much. This is called ‘repurposing.’ Wrap it, for example, as a liposome enabling a more efficient, and stable penetration to the relevant cells of your body, and you can have it patented. Part of my team is working on such drugs, so I can assure you that such a way of making new drugs is much cheaper and realistic. Of course, those willing to follow this path are quite many, but it is certainly some solution to the basic problem today. Medicine is increasingly focused on the personalisation of treatment, on adjusting a therapy to a patient, which is in conflict with huge costs of developing new drugs. If you want to make a profit on it, you need to sell your drug to the maximum number of patients, which means the same treatment for all. So something has to change, and Polish science, Polish pharmacology is not at a disadvantage. How to do it? I will give an example. Disulfiram is a substance commonly used as an anti-drinking drug for a couple of decades. And then, it has been found to have anti-cancer properties recently. An English chemist even patented it in a liposomal

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form. But we believe that it is not the right way to go and we have our own ideas on how to sort it out. So we can compete in these niches, too.”

Krzysztof Różycki: “When creating a new drug on the basis of the known compounds, you do not need to analyse its full toxicology, and this speeds things up and brings down costs,” explains Krzysztof Różycki. “So we chose the optimum strategy in Mossakowski Medical Research Centre. There is also a view in Poland that you should make use of highly qualified researchers and technological breakthrough in Polish laboratories to offer the widest possible range of services for ‘Big Pharma,’ thereby participating in the drug development process. Of course, such a market exists, but it is fiercely competitive, which makes Poland’s chances shrink, especially in confrontation with India and China. Europe is a little spot against Asia’s background. We like to think that Europe still has its quality trademark, but it is an illusion. We need to rely on our own creativity and thinking rather than on an ill-founded conviction that we will make a revolution in medicine. 99% of progress is a series of small improvements. The key issues for today are to streamline the process of obtaining public grants and winning the confidence of private businesses. The Mossakowski Medical Research Centre has long been involved in clusters - one domestic and two Mazovian clusters was considered in 2012 to be the most innovative in the region. In October 2014, we received a PAP’s Polish Innovation Statuette 2014, and in November, also for innovation and science development, two gold statuettes ‘Orły Mazowieckie’. We are climbing up. We won 4 out of 16 grants in the first edition of STRATEGMED, for the second one, we are involved in a project that took the first place, so we should not complain. We are a sought-after partner in the development of new products, as

we well invested money from the European Union, namely to create the Centre for Preclinical Research and Technology (CEPT). It is a consortium of three universities and seven institutes of the Polish Academy of Sciences brought together in one campus. We had it as a rule that laboratories should serve for applied research so as to create a sort of a practical chain. And they really enjoy great interest and can be compared with the European or even world leaders. For example, a magnetic resonance lab, which is led by Prof. Grieb, can easily compete with • any other.”

Established in 1967, the Mossakowski Medical Research Centre is the largest institute of the Polish Academy of Sciences (PAN), which conducts research both in medical biology and clinical medicine covering in particular: physiology, neurobiology, neuroimmunology, neuropathology, neurology, neurosurgery, nephrology, genetics, epigenetics, pharmacology, medicinal chemistry and cell biology. The Institute employs over 300 people, including 140 researchers: 61 professors, 43 assistant professors and 36 associates. It is structured around 7 clinical research teams, 13 departments and 8 labs. The Institute coordinates the activities of the three clusters: Mazovian Peptide Cluster, Pain Treatment Cluster, Cluster of Medical and Biomedical Sciences Alice-Med, hosting companies dealing also with commercialisation of the Institute’s and other cluster partners R&D output. Examples of Institute’s spectacular achievements of the recent years: •

The main prize and the gold medal ‘Brussels INNOVA 2012’ for a drug allowing safe and effective use of opioids to relieve pain.

•

The Award of the Prime Minister 2013 for a drug made of processed proteins from human hair, protecting against the formation of melanoma tumor cells.

Chemical Industry

Synthetic biology an opportunity and challenge for modern chemistry and chemical industry

Prof. Marek Figlerowicz, Director of the Institute of Bioorganic Chemistry, Polish Academy of Sciences, in Poznań

ynthetic biology is a relatively new field of knowledge that has not been given a short unambiguous definition so far. Generally, it can be described as interdisciplinary research aimed to use available knowledge in physics, chemistry and biology in order to reproduce both existing living organisms or their components, as well as to create new non-naturally occurring systems having the characteristics of living organisms or their components (artificial genes, proteins, cells, tissues or organs). Many examples are known of the successful application of synthetic biology in the chemical, pharmaceutical or biomedical industries. Synthetic genes are used to modify microorganisms so they produce hydrogen more efficiently, or plants so they are more fit for the production of biofuels. Synthetic genes are also a source of artificial enzymes allowing the processing of biomass or waste products generated in agriculture and forestry. According to a recent report by OECD, in the near future, the majority of basic substrates used in large-scale, industrial organic synthesis will be derived not only from petroleum, but also from (and using) living organisms, mainly plants and bacteria. A further dynamic development of synthetic biology should therefore be regarded as one of the basic factors towards making a number of chemical industries independent from fossil fuels, and replacing the outdated energy-intensive technologies with more efficient and more environmentally friendly ones. Given the above, we should consider to what extent the Polish chemical industry is prepared to adopt the modern solutions offered by synthetic biology and whether Polish scientific institutes and R&D centres are able to develop such solutions. In considering these, we should be aware of the fact that Polish research units were already many years ago among the precursors of synthetic biology.

A perfect example is the Institute of Bioorganic Chemistry, Polish Academy of Sciences (IBCH PAS). This unit was established in Poznań in 1980, initially as a Department and since 1988 as an Institute. Since the beginning of its existence, the core activity of IBCH was research into nucleic acids, i.e. the molecules carrying the information about how organisms are built and how they function. But more importantly, IBCH’s scientists have played an important role in a number of groundbreaking research studies in synthetic biology, like for example a chemical synthesis of the first functional fragment of the bacterial genome. The fragment responsible for the regulation of expression of one of the bacterial genes was obtained by an international team, part of which was Prof. Jacek Stawiński. Also, the first synthetic gene, successfully applied to the production of insulin, was obtained with the participation of a researcher from IBCH, namely Prof. Adam Kraszewski. Furthermore, genetically modified plants producing viral proteins were grown in IBCH. It was subsequently demonstrated that these plants can give rise to a safe and effective vaccine inducing in humans an immune response protecting against infection from hepatitis B virus (HBV). The research was carried out by a team led by Prof. Andrzej Legocki. Today, there are also many examples of research directly referring to synthetic biology in IBCH. Artificial genes are designed and manufactured, allowing to obtain proteins with unprecedented properties. Attempts are being made to use viral capsids as nanoparticle carriers. New diagnostic and therapeutic strategies are being developed based on DNA and RNA synthetic molecules. Stem cell - based technologies are also increasingly successfully developed in IBCH. Unfortunately, the issue of commercialisation of • all these achievements remains open.

1-2/2015 polish market

Chemical Industry

The Institute of Organic Chemistry Polish Academy of Sciences (IChO PAN) Prof. Sławomir Jarosz

38 polish market

he Institute of Organic Chemistry of the Polish Academy of Sciences (IChO PAN) was founded in 1964, when the Department of Organic Synthesis, established a decade earlier, was promoted to the status of an institute. Shortly thereafter, the Warsaw premises of the Institute were located in Wola district. In the late 1960s, regional departments started splitting from the Institute to form self-contained units. That is how the Centre of Molecular and Macromolecular Studies was set up in Łódź and the Institute of Bioorganic Chemistry - in Poznań. IChO PAN has been given the A rating in all parametric evaluations so far. Two professors of the Institute: Mieczysław Mąkosza and Karol Grela, won the Award of the Foundation for Polish Science, the most prestigious Polish scientific award. IChO PAN took the second place among Polish research units in the international SCImago Institutions Rankings for the years 2007-2011, in its most prestigious category Q1 (covering the world’s highest ranked scientific journals only). The Institute is authorised to confer doctoral degree and habilitation in the field of organic chemistry, and to conduct proceedings towards the title of professor. Operating continuously since 1966, a 4-year PhD Programme, the oldest such unit in the country, has a well-established and consistently implemented programme. Since its inception, more than 360 persons obtained the PhD degree in chemical sciences. The Institute employs approx. 180 people, including 12 professors and approx. 60 PhD students. It is involved in teaching students (summer internships, internships in IChO labs, tutoring undergraduate and graduate students) and adolescents (workshops for secondary school students under the auspices of the National Children’s Fund). The key areas of research activity of the Institute are: methodology of organic synthesis, supramolecular chemistry, chemistry of materials with specific properties, structure and spectroscopy of organic compounds and study of mechanisms of organic reaction. A special focus is put on asymmetric synthesis, which is one of the most important global trends in organic chemistry. The Institute has also significant achievements in the synthesis of receptors

capable of enantioselective complexation of cations and anions, and in the chemistry of porphyrinoids and functional dyes. One of the new trends is the use of enzymes in organic synthesis. Research on the structure and spectral properties of organic compounds is focused on the development of modern applications of spectral techniques for determining molecular structure of organic compounds. The Institute has set up and fitted out modern, specialised laboratories: NMR, MS, CD and the world’s unique high-pressure lab for conducting organic synthesis at pressures up to 20 kbar. The Institute has synthesised the drug preventing kidney stones formation called Debelizyna (manufactured by Herbapol Pruszków) and (in collaboration with TZF Polfa SA) two ß-lactam antibiotics: Tarcefoksym and Tarcevis. We are working with a number of companies around the world. The Institute has successfully applied for research grants both from Polish and foreign sources, and can boast the country’s highest success rate in applying for projects to be co-funded by the National Center for Science: 15, out of 18 applications made by the Institute in 2013, were approved. The Institute is carrying out a number of projects cofinanced from EU funds. Undoubtedly, the most significant one is the project “Sugars as renewable raw materials in the synthesis of products with high added value”, implemented (2010-2015) by the consortium led by IChO PAN under the Operational Programme Innovative Economy. The backbone of the project was the use of readily available and inexpensive substrates - monosaccharides - in organic synthesis. It was aimed at developing a methodology of synthesising enantiomerically pure products with high added value from renewable raw materials that meet requirements, allowing industrial implementation. The funds acquired under the Operational Programme made it possible to purchase modern research equipment. The quality of research programmes pursued by the Institute is widely recognized, as evidenced by the titles that have been conferred on it: “Quality of the Year 2010”, the “Polish Innovation Symbol 2011”, and the “Polish Innovation • Award 2013”.

Chemical Industry

The Institute of Non-Ferrous Metals

the current situation and prospects for 2015 Prof. Zbigniew Śmieszek, Director of the Institute of Non-Ferrous Metals (IMN), Gliwice

he Institute of Non-Ferrous Metals is the largest such institution in Europe, recognised in the field of enrichment of minerals, metallurgy, environmental protection, processing and new materials. It employs a total of nearly 500 people, including 250 directly involved in research. All its activities are focused on cooperation with the non-ferrous metal industry in order to increase efficiency and innovation, as well as to introduce new technologies and products in this industry and in other industries that use non-ferrous metals. In the non-ferrous metal industry there are crisis phenomena related to: - metal prices with a tendency to slump, - energy costs and the EU policy in this regard, - securing raw materials, including in the field of recycling of scrap lead, copper and aluminum. This has a direct impact on the number of research orders from industry. I hope that the situation will improve since companies have come to appreciate the importance of innovative business solutions for increasing competitiveness and funding can be obtained for innovative technologies, especially under the Operational Programme Smart Growth and the European Programme Horizon 2020. 2014 was the final year of the implementation of the key project “New technologies and designs of machinery and equipment,” which culminated in 33 offers being made to industrial partners. We are coming to a close of the strategic project “Advanced materials and their production technologies,” which

has also resulted in more than 30 new technologies proposed for industrial use. Based on joint research by specialists from ZGH Bolesław and the Mineral Processing and Waste Treatment Plant, ZGH Bolesław will implement a flotation waste processing technology in a newly built special flotation facility. It is worth stressing an extensive collaboration between the Institute and the design offices of Bipromet S.A. and AMK. The cooperation with Bipromet S.A. and technologists from HM Głogów was aimed at the development of high-tech II HM flash smelting furnace, while the cooperation with AMK Kraków concerned export solutions in the field of flue-gas desulfurisation. A lot of research projects carried out by the Institute in different areas have entered the phase of industrial exploitation. The main objective of the Institute is to develop innovative technologies and products, for which it received in 2014 a number of prestigious awards, including the Gold and Silver Medals of Brussels Innova for “Cadmium-free contact materials” and “Recovery of lead and associated metals, especially tin, from crude oil”. The prospects for securing funding for 2015 are as follows: 1. The Institute is a beneficiary of 6 projects, acquired as part of Cu-BR, which will have a significant impact on the level of its research funding, also in subsequent years.

2. In 2015, the Institute should start implementing projects under the Operational Programme Smart Growth, which means further strengthening the science-industry relationship. It is necessary to intensify cooperation with the industry of non-ferrous metals, but also to carry out research in other industrial technology areas, like for example recycling, environmental protection, metal processing, new materials, and specialties of the Institute’s branches - CLAiO or OML. 3. The Institute will intensify its participation in EU projects, particularly Horizon 2020, and take steps to get more direct orders from foreign companies. The Institute currently implements: - a research programme concerning the enrichment of zinc-lead deposits from Pakistan, - laboratory and pilot tests of processing of zinc-lead materials in the Waelz process. 4. The establishment and implementation of the sectoral recycling project, initiated by the Institute and involving such industries as glass and ceramics, rock mining and wood. Recycling is a priority issue in Poland and in Europe. The assumptions of this project are being prepared by the Economic Chamber of Non-Ferrous Metals and Recycling (IGMNiR). • Institute of Non-Ferrous Metals ul. Sowińskiego 5 44-100 Gliwice www.imn.gliwice.pl

1-2/2015 polish market

Science

INSTITUTE OF NUCLEAR CHEMISTRY AND TECHNOLOGY

he Mazovian Green Chemistry Valley (MGCV) is a strong research infrastructure aggregating the best chemistry-related institutions from Warsaw with the highest level of academic staff. The collaboration is the first of its kind in Poland. The cluster’s members include the institutes of Polish Academy of Sciences (PAS) (Institute of Physical Chemistry PAN, Institute of Organic Chemistry PAN), research institutes (Institute of Nuclear Chemistry Technology, Industrial Chemistry Research Institute, Institute of Industrial Organic Chemistry, Pharmaceutical Research Institute) and chemical departments of universities (Warsaw University of Technology, University of Warsaw, Military Academy of Technology). All members of the MGCV are cooperating on development of green chemistry through distribution of knowledge and supporting technology transfer. The mission of the cluster is to build a bridge between science and industry.

40 polish market

The aims of the MGCV are: (1) to form strong scientific structure based on university departments, research institutes and PAS institutes, (2) to provide a forum for information exchange and dissemination knowledge about green chemistry (3) to foster and support development of different branches of chemistry by ensuring access to wellequipped laboratories as well as small scale production lines, (3) to support education programs in chemistry. The Mazovian Green Chemistry Valley entities have already carried out a large number of advanced projects, collaborate with industry and possess numerous laboratories and equipment. The Mazovian region with well-developed chemical industry plays important role among chemical regions in Europe as a member of European Chemical Regions Network (ECRN). Partnership of Mazovian Green Chemistry Valley which promotes innovative technology and develops cooperation with industry is an essential to support and enhance the international position of mazovian chemical sector. At the Institute of Nuclear Chemistry and Technology located in Warsaw, Poland for many years innovative high technology research was carried in a wide range of chemistry using modern nuclear technique. It is possible because the institute has a high intellectual potential of scientific staff who successfully involve scientific developments to various industrial bodies, environmental protection and in medicine. Proof of this creative activity of the Institute in the development of new technologies and innovative solutions, are patents granted in the country and abroad which were awarded by silver and gold medals obtained through competitions at international exhibitions of inventions in Brussels, Geneva and

Nuremberg. Expression of this innovative scientific idea strictly related to various industrial bodies are foreign patents selected from the last few years cited below: Patent No. 2810 -Saudi Arabia “Method and equipment for simultaneous removal of acidic inorganic pollutants and volatile organic compounds from stream of flue gases” A.G. Chmielewski, A. Pawelec, B. Tymiński, J. Licki, A. A. Basfar ; Application in Aramco Overseas B.V., Netherlands-2011 Patent No. 97240/2012 Ukraine, Patent No. 2480245/2013 Russia, Patent No. 18056/2013 The Republic of Belarus “Method for the preparation of hydrogel wound dressings” W. Migdał, A. G. Chmielewski, D. Chmielewska, U. Gryczka, P. Kik Patent No. 104857/2014 Ukraine, Patent No. 17231/2013 The Republic of Belarus “Synthesis of irregular and spherical particles of uranium oxide” A.Deptuła, M.Brykała, A.G.Chmielewski, W. Łada, D. Wawszczak, T. Olczak. Patent No. 104858/2014 Ukraine, Patent No. 16824/2012 The Republic of Belarus “The method of disposal of radioactive waste with approved in silica glass” A. G. Chmielewski, A. Deptuła, M. Miłkowska, W. Łada, T.Olczak. Patent No. 2618335 (B1)/2014 The European Union “Sorbent for receiving radionuclide arsenic-72, production of this sorbent” E.Hajduk, H.Polkowska, A.Bilewicz, K.Doner •

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December 2014â&#x20AC;&#x201A; polish market

Chemical Industry

Declines in fuel prices will continue In 2014, the price of Brent Crude, which is the leading global pricing benchmark for Atlantic basin crude oils, fell from approx. USD 115 per barrel in June to below USD 60 per barrel at the end of December. It is a 50% slump. Analysts worldwide expect it is not the end of declines, and warn a scenario as dismal as USD 20 per barrel must be reckoned with. Halina Pupacz, President of the Polish Chamber of Liquid Fuels (PIPP)

he past year was interesting and eventful for the Polish fuel industry and for the Polish economy as a whole. First of all, 1 January 2014 marked the end of the transition period towards the modernisation of fuel tanks at gas stations in accordance with the ordinance of the economy minister. Stations that failed to meet the above requirements had to close down. Although it was not a revolutionary change and had no effect on fuel prices, it did nevertheless speed up the consolidation of the industry. It was particularly evident in the independent chains, which account for approx. 50% of Polish gas stations. Such a market diversification fosters the competitiveness and energy security of Poland, which is now Europe’s centre of attention. The Polish Chamber of Liquid Fuels has for many years been working with UPEI (European Association of Independent Fuel Operators), an umbrella institution, bringing together independent national organisations from the oil sector. Let me quote Günther Oettinger, the then European Commissioner for Energy, on the role of UPEI: “Independent entities involved in energy trading play an important role in the day-to-day supply of energy, helping to mitigate fluctuations and close gaps. They ensure market stability and security of supply. UPEI members had a part in opening Central and Eastern Europe to competition and market economy.” The crucial point was obviously an extremely sharp drop in oil prices on world markets. On 24 November, President Bronisław Komorowski signed the Law on Facilitating Access to Business Activity (also referred to

42 polish market

as the “Fourth Deregulation Law”). For example, for a number of solutions facilitating excise duty clearance. The amendments include, among others, the introduction of the binding excise information (WIA), a waiver of the requirement to notify the customs office manager about the form of keeping records and facilitations in trading fuel oil. The statutory reduction of the interchange fee – one of the fees incurred by businesses on accepting credit card payments – was important news for the entire retail trade sector. Until 2014 Poland had one of the world’s highest interchange fees, which consistently blocked the development of non-cash payments. For the oil industry, the construction of the PERN oil and fuel terminal is important. It is supposed to ensure the energy security of the country, and at the same time, to contribute to increasing the competitiveness of Polish refineries, which are facing a weak demand, leading to a reduction in refining margins. Speaking of Poland’s energy security, it is worth recalling that the situation of Polish refineries could be improved by a thorough modification of fuel logistics, namely by the construction of pipelines handling eastward exports. Talking about sea connections, the crucial investment project is the LNG terminal in Świnoujście, in line with the recommendations of the Directive of the European Parliament and of the Council 2014/94 / EU of 22 October 2014 concerning the development of infrastructure for alternative fuels, which also obliges member states to expand distribution networks for such fuels as CNG, LNG or hydrogen as well as electricity. LNG/CNG is the perfect fuel for urban public transport.

Declines in retail fuel prices at gas stations are usually the result of wholesale prices in Polish refineries, which in turn do not operate in a market vacuum, but have to adapt to the macroeconomic situation both in Europe and around the world. Recently, the market has been affected mainly by a strong oversupply on the oil market, which resulted in its price decline on commodity markets. It is worth noting that these declines have been largely offset in the balance sheets of the Orlen and Lotos fuel companies by an increased dollar exchange rate against the zloty. It is primarily the trends in the global commodity and currency markets that will determine further declines or increases on the domestic market for fuels. Let us also have a look at the recent increases in diesel price on the commodity markets. It is worth considering whether it is caused only by seasonal factors – an increased demand during the winter. Weather conditions have rather led to declines on the domestic LPG market recently. Declines in fuel prices now seen at gas stations will probably continue, given the situation on the oil market. Crude oil hits all-time lows. Today there is talk of some USD 40 per barrel, or even less. A USD 20-per-barrel scenario is no longer considered unlikely. On the domestic market, a reversal is already seen in a gasoline-to-diesel price ratio. Diesel fuel is again more expensive than gasoline at gas stations. It is a simple reflection of the demandsupply relationship: our refineries report a threefold prevalence of diesel consumption • over gasoline. It is also a global trend.

Chemical Industry

Over 15 years of tradition

etrax Sp. z o.o. was founded in 1999 with the equity capital of PLN 1,000,000. “The origins of our company date back to 1997. President Sylwia Mikołajczyk worked thenfor the crude-oil purchase section of Petrochemia Płock (currently PKN) whereas I was employed in a private enterprise and I cooperated with Ms. Mikołajczyk, delivering various semi-finished products for further treatment. At some point, we decided to pursue this cooperation by establishing our own company, which we named Petrax. We have built it from scratch and currently we are among the 500 largest enterprises countrywide. We have always been driven by trustworthiness, loyalty and honesty. Our company is based on those three principles, which has earned us trust from our domestic and foreign partners. Some time ago, a Tax Office worker told me that we are an exception in the fuel market with 15 years’ experience. I have no idea if this was intended as a compliment or not!” - says Piotr Liszek, VicePresident of Petrax. The core business is focused on trade in petrochemicals and fuels within EU countries. Our commercial partners are fuel oils producers, biofuels producers as well as private companies. Petrax has established long standing trade relationships not only in the East but also in the West of Europe. The present political situation, reflected in a clear-cut separation from the Russian market, which is one of the major fuel suppliers, has made it challenging to operate in this market. Has this also affected you? We focused on the eastern market at the outset of our activity. Since Poland’s accession to the European Union, we have redirected our growth paths mainly towards the EU countries. In 2002-2004 we supplied around 20 thousand tonnes of crude oil from Ukraine to the southern Polish refineries. By the end of 2004, in pm

view of the stringent EU requirements regarding fuel quality, the processing of crude oil was abandoned in most facilities of this kind. This was when we focused our attention on western markets. The products we trade in comprise mainly traditional fuels (liquid gas and fuel oil), along with biofuels, which we have supplied since their obligatory entrance to the Polish market, ordered by the European Union. At the moment, given the unforeseeable nature of the eastern market, and especially the geopolitical situation in the east, we are only focused on the West. Furthermore, I don’t really believe in the complete isolation of Russia in Europe. Just think about the German-Russian, French-Russian or Hungarian-Russian relationship. Has anything changed as regards the supply of natural gas or crude oil? It is very likely that Russia will find it more difficult to operate without Europe than Europe without Russian supplies, which has already found confirmation in the Russian macro-economic results. Do you think your business will remain stable if you limit yourselves to the western markets without supporting the eastern ones? This is exactly what I think. Throughout our 15-years’ presence in the challenging fuel market we have learnt that the business mentality and attitude of the eastern and western European contractors are extremely dissimilar. Let us take, for instance, the payment mode for deliveries. The companies situated in the countries aligned with Russia demand advance payments a month before delivery although there is a wide variety of instruments securing the interests of both the buyer and the seller, which are commonly used in international trade. The western development direction mainly entails the financial security of transactions and the diversified opportunities flowing from the central European location of Poland. Obviously, unreliable companies that seek to strike lucrative deals within their short-lived prosperity pm

can be found everywhere, and Germany, Austria and the Czech Republic are no exception. Since its inception Petrax has executed a lot of long-term contracts. For example, it supplied Czechowice Refinery and Trzebinia Refinery with 300,000 metric tonnes of crude oil a year, delivered from Ukraine, Kazakhstan and Kaliningrad. At present our main focus is on the trading of diesel, LPG, biofuels and bio components. Our turnover was estimated at EUR 152,000,000 in 2012, EUR 225,000,000 in 2013 and EUR 200,000,000 in 2014. • 1-2/2015 polish market

Chemical Industry

The end of shale gas hopes in Poland? Andrzej Sikora, PhD, Chairman of the Board of the Institute for Energy Studies in Warsaw, Research Director at the Faculty of Drilling, Oil and Gas, Department of Natural Gas Engineering, University of Mining and Metallurgy in Krakow.

y the end of 2014 the oil price slipped to a new five-year low. The civil war in Ukraine, sanctions imposed on Russia and Saudi Arabia’s policy in the context of falling prices in the US hydrocarbon market forced exploration companies to revise their plans and budgets. Falling oil prices, failed attempts at prospecting for unconventional hydrocarbons in Poland and bureaucratic barriers are the reason why Poland’s hopes for successful exploration of shale gas are dying. Now, at the beginning of 2015, concessions issued for exploration of unconventional gas deposits (shale, coal bed methane or tight gas) are twice less than a year earlier (56 versus 115 in 2013). In 2014 only 14 drillings were carried out (as many as in 2013, but in 2012 the figure was 24). The US example shows that the rapid growth in mining levels leads to the opening of old oil refineries, but above all prompts investment. The surge in unconventional hydrocarbon production in the US drove up extraction to record levels. According to the 2013 Natural Gas Annual report (www.eia.gov/naturalgas/annual/),

44 polish market

the mining volumes in terms of so-called dry gas amounted to nearly 690 billion m³ in almost 488 000 drillings! The shale gas output exceeded 10% of the total production of natural gas and continues to grow. And it is not the only gas mined from the so-called unconventional sources: there is also tight gas and CBM. Against this background, we should define Poland’s energy strategy and consider whether we will manage to find economically viable unconventional hydrocarbon deposits, a question that remained unanswered for more than has five years. Today, experts estimate that shale gas is unfortunately a fading project in Poland. Paweł Poprawa from the Institute of Energy Studies acknowledges that “shale gas drillings brought disappointing results, and consequently, most of the major foreign investors withdrew, except for Chevron and ConocoPhilips.” But they will soon pull out too, Poprawa predicts, to deal with more prospective deposits. On the other hand, smaller companies will find it difficult to get funding for further drillings because of cheap oil. As a result, only Orlen and PGNiG will stay in the Polish shale gas business, but it seems that even their

involvement will weaken. State-owned companies have to review their policies so they reflect the market reality, and to a lesser extent only, the government’s plans. Paweł Poprawa claims that for a commercial shale gas production to have chances of succeeding, we need another five years to step up development efforts and curb bureaucracy. In his opinion, tedious and lengthy procedures for obtaining various permits are still a major problem, which could possibly be solved by a new bill proposed by the State Treasury. Preliminary assessments of technically recoverable shale gas resources in Poland ignited imagination. Let us have a quick look back: August 2009, Wood MacKenzie - 1.37 trillion m³; December 2009 - ARI - 2.83 trillion m³; April 2011, EIA - of 5.3 trillion m³; May 2011, EUCERS (M. Kuhn, F. Umbach) - 1.87 trillion m³. Polish forecasts (Polish Geological Institute - PGI) are 0.14 trillion m³, with an annual output of approx. 4.3 billion m³. These forecasts, no matter how they diverge, give Poland one of the highest reserve-replacement ratios in Europe. I am convinced that large-scale commercial production of shale gas (provided

Chemical Industry

it is economically viable) in Poland is likely to get underway around 2017/2018, and the first research-oriented pilot micromine could be launched as early as in 2015/2016. Realistically speaking, a mine means several dozen pads, dozens of wells, which makes a total of several hundred drillings. A sustainable, balanced and profitable operation of an unconventional deposit is only possible if performed on a large scale. The major problems encountered by most of investors conducting shale gas exploration are associated with instability and ambiguity of the legal framework, as well as incompleteness and inappropriateness of applicable geological and mining regulations. Polish citizens have generally good feelings about shale gas. It appears from a survey commissioned by PKN Orlen that Poles look ahead when it comes to shale gas and consider it to be an important resource both for the country as a whole and the region where they live. They have also quite a good understanding of the exploration and production of shale gas. According to the SMG/ KRC research conducted for PKN Orlen at the end of 2012, 70% of respondents believe that shale gas mining is safe for the environment, and almost all (97%) feel strongly about its potential to boost employment. The survey by lupkipolskie.pl, a web portal devoted to shale gas, shows that 75% of the population of Pomerania is in favour of shale gas, compared to Poland’s average of 53%. At the same time, 40% (Pomerania) and 43% (Poland) of respondents fear environmental damage and tourism collapse due to exploration and production of shale gas. Interestingly, there is no record of resistance to shale gas, except for the case of Żurawlów, a village near Chevron’s exploration site. Let me refer to an example of a dialogue between the general public, local communities, regional authorities and government officials. The Energy Studies Institute in Warsaw, has developed a project, which is funded and implemented as part of an agreement with the National Fund for Environmental Protection and Water Management (NFOŚiGW), titled: “Shale gas and its impact on the environment: what risks and benefits for people?” It is designed as a series of open conferences, providing comprehensive knowledge to members of local governments and regional administration in 10 regions: Kujawsko-Pomorskie, Podlaskie, Lubelskie, Świętokrzyskie, Warmińsko-Mazurskie, Łódzkie, Pomorskie, Mazowieckie, Śląskie and Opolskie. The project was given the Honorary Patronage of Deputy Prime Minister and Minister of the Economy Janusz Piechociński, Undersecretary of State in the Ministry of the Environment and Chief

National Geologist Piotr Woźniak, Director of the National Center for Research and Development Krzysztof Jan Kurzydłowski, and Marshals of 10 regions that host the conferences. Detailed information and the meeting agenda can be found at www.gazdlagminy.pl. The principal aim of the project is to nurture ecological attitudes in respect of the obligations set out in the regulations, national programmes and EU directives on energy and climate policy, and to increase the share of natural gas as a cleaner energy source in the Polish energy mix. In addition, we want to raise environmental awareness among representatives of local government at all levels and make them familiar with exploration and production technologies and their impact on the environment and people’s lives. The challenge ahead for investors is to manage relationships with various stakeholders so as to minimise potential risks and derive additional benefits. In order to ensure a well-ordered execution of the project, the operator should be aware of the impact it might have on individual groups of stakeholders and should also be able to identify the underlying causes of such an impact. The key success factor is an early launch of consultations (to allow time for modifications and anticipate potential conflicts at an early stage), an informed selection of partners invited for talks (those who are able to contribute valuable recommendations) and openness in looking for dialogue opportunities. It is a common practice for NGOs and ecology think tanks to join the game whenever environmental and health safety issues are at stake. The failure to make sure stakeholders have a sense of engagement and control over the course of events might lead to protests as it was the case in Żarnowiec or in the Rospuda Valley. Smooth implementation of the project and a good relationship with stakeholders is something that requires doing a study into the whole investment environment, i.e. verifying the investor’s assumptions made when mapping stakeholders. It is the only way for the investor to sort it out the locals, mitigate risks and leverage social benefits. The investor has in fact a lot of arguments to win support of the local community. Investment projects benefiting the municipality, like in road infrastructure, or job creation, are some good examples. The Institute for Energy Studies organised a series of open seminars on shale gas for the representatives of local self-governments and public administration. More information at www.ise.com.pl. •

The challenge ahead for investors is to manage relationships with various stakeholders so as to minimise potential risks and derive additional benefits.

1-2/2015 polish market

Chemical Industry

The energy security of Poland Andrzej Sikora, PhD, Eng., President of the Energy Studies Institute

he global crisis has strongly affected the EU economy. It should be noted that the post-crisis reindustrialisation of the United States, based on cheap energy from shale gas, is accompanied by a sense of stately calm (so wellknown by observing retired citizens of wealthy EU member states), a ubiquitous “consensus” (a key word for the EU new democracy) and political ambitions of Brussels officials (democratically elected), occupying prominent positions and taking up, on our behalf, challenges and commitments, which can only be fulfilled by a joint, mutually-agreed, enormous effort, based on hard calculation and properly-programmed models. Poland can afford it, Poland can and should be the flywheel of the European Union. Just look at Polish emigrants - young Poles cope very well abroad. Aspiring to G-20 membership, Poland should be the leader of the EU’s post-crisis economic transformation. I understand that the path has been decided, economic development directions have been marked out, and therefore, new assumptions of the Polish Energy Policy until 2050 have been defined. Thanks to Poland’s “negotiation success” in Brussels, it will be possible to keep the promise and cut CO2 emissions by at least 40% below the 1990 level by 2030. Prime Minister Ewa Kopacz stressed several times that “the cost of electricity has to be low enough to be satisfactory for the customers.” In August 2014, the Ministry of Economy unveiled on its website the Draft Energy Policy until 2050. Consultations, announced last summer to last for a “significant” two-week period, concerned the preliminary (a key word here) drafts of the principal document, its forecasting part and the assessment of the country’s current energy policy.

46 polish market

In my opinion, these documents are today out of step with the “negotiation success” announced then. January 2015 marks another “success” of the government, namely signing of an agreement with the miners in Katowice. After the protest of generalist physicians at the very beginning of the year, other professional groups only wait to say “check”. Today Poland is safe in terms of energy, but assuming that the Polish economy will strive to catch up with most developed EU economies, we absolutely have to: - prepare and implement a restructuring plan for Polish coal mining - Polish coal and lignite must be at least 20-30% cheaper than imported coal, unless we decide to rely on coal imports and extinguish lignite mining; - plan the replacement of old generation units with new coal-fired highly efficient units with a significantly improved gas emission performance, and develop the gas-based energy sector in view of the stabilisation of renewable energy sources. Issues which, if unsolved, will make it difficult to make progress as far energy policy is concerned: a) the lack of an economic policy until 2030 and perhaps even 2050 (it applies not only Poland but the EU as a whole); b) the lack of a model or a tool, based on which different scenarios and options can be taken into calculation, and changes can be anticipated quickly; c) scarce – to say the least – forecasts forming

the basis for the new Polish Energy Policy until 2050; d) only three scenario analyses prepared: it is good that they have been done at all, but why such a not other and why not correlated with the Brussels success. The lack of structural changes in energy consumption, confronted with the “successes” of the cabinet of Prime Minister Kopacz, becomes a barrier to Poland’s meeting of the EU requirements, both in terms of environmental protection (the climate and energy package) and the liberalisation of the energy sector at large (especially the third liberalisation package), as well as to adapting Polish legislation to the said EU requirements. It will not “work out somehow” this time. A last-ditch attempt, a romantic spurt or a hussars’ attack will not sort out the mess this time. That is why I dare to ask for a bit of positivist, presupposed, model-based forecasts and calculations. Following 25 years of independence and striking economic development, with a new generation that grew up in prosperity and freedom, and enters a democratic social life, I have a right and duty to expect from my government more than before. It has to be the end of “mediocrity.” I do not want to hear any more things like “it will work out somehow.” Any further “negotiation success” in Brussels has to be translated into welfare, and a marketing slogan “yes, yes, yes” - into a stream of investments. We need major strategic changes in planning the economic and social development of Poland. •

Finance

40 LAT DOŚWIADCZENIA W BRANŻY MATERIAŁÓW OGNIOTRWAŁYCH

1-2/2015 polish market

Science

Marketplace for Inventions

he 22nd Marketplace for Inventions exhibition, organized by the Association of Polish Inventors and Innovators (SPWiR), will be held on 17-18 February. It will feature inventions which won awards at international innovation fairs and exhibitions in 2014. The exhibition will take place in the Conference Centre of the Copernicus Science Centre in Warsaw. This place is special because it is associated with inventions, innovations, discovery and the development of science. As in previous years the honorary patrons of the event are the Polish Ministry of Science and Higher Education, Main Council of the Research Institutes, Polish Federation of Engineering Associations - NOT, Patent Office of the Republic of Poland and Polish Agency for Enterprise Development. The main media patrons are: Polish Radio 4, “The Warsaw Voice,” “Polish Market,” “Fakty – Magazyn Gospodarczy” and “Mechanic Preview.” Participation in the Marketplace for Inventions is open to Polish universities, research institutes, private entrepreneurs, students, PhD students and all representatives of industry whose innovative solutions won awards at international inventions exhibitions in 2014 in Geneva, Nuremberg, Brussels, Seoul, Taipei, Sevastopol and Kuala Lumpur. These representatives personally gained international attention and recognition. More than 170 projects, mainly in ecology, chemistry, biology, electronics, medical technology, engineering, construction and information technology were shown during

48 polish market

last year’s edition of the Marketplace for Inventions. This year over 130 solutions will be presented. The ceremony of awarding certificates of distinction of the Ministry of Science and Higher Education will be held on the first day of the exhibition. As last year, representatives of the Ministry of Science and Higher Education, Patent Office, Polish Federation of Engineering Associations NOT, Polish Agency for Enterprise Development and also of the press, radio and television will take part in the opening ceremony. After the ceremony the honourable guests and media people will be able to explore the exhibition. On the second day, February 18, the exhibition will open to the general public - anyone interested will have an opportunity to visit it and take a look at the exhibited technical solutions. Admission is free. The main aim of the exhibition is to promote the achievements and international successes of Polish science, economic innovators, and individual inventors outside of the scientific community, increasing the entrepreneurs’ interest in Polish scientific and technical solutions and innovative products, and also honouring medallists of international exhibitions of inventions for their successes. The exhibition will show products and technologies at an advanced research stage or ready for implementation and commercialization. •

Science

Innovation

drives everything around

Prof. Michał Szota, President of the Association of Polish Inventors and Innovators

n 17-18 February, the Copernicus Science Centre will host a retrospective event called “The marketplace for inventions which won awards at international innovation fairs and exhibitions in 2014.” This venue has not been chosen at random. Like no other place in Poland it is associated with development, inventions, discoveries, generally speaking, dissemination of scientific achievements. For 22 years now, this event has been held under the auspices of the Ministry of Science and Higher Education. Each year, exceptionally active inventors, who build a positive image of Polish science in the world, are awarded statuettes and certyficates of distinction of the Minister of Science and Higher Education, and have a unique opportunity to showcase the best solutions and establish business contacts with entrepreneurs, who frequently visit the exhibition. Innovation drives not only the economy itself, but also the progress of mankind, competitiveness and job creation. Today’s schools do not attach significant importance to technical creativity. Returning to vocational training is an absolute necessity, because it is an excellent breeding ground for future engineers. Not only vocational schools have been closed, but technicians are becoming increasingly fewer, and to make things worse, technology universities often get rid of technical facilities, shut down laboratories, which is something that underlies their functioning. Science should be open to cooperation with industry, and must be aware of the fact that the future of technology universities lies in cooperation, and sharing experience and

information. This cooperation is equally vital for the industry, whose perception of the reality is very different. It is therefore important to take time to develop mutual understanding and trust, because only trust can ensure a smooth exchange of information on industrial problems and the latest scientific achievements. It is in the interest of the university to keep track of the careers of their graduates and treat them as their ambassadors to the industry, having up-to-date information on the research and innovation potential of their Alma Mater. In my opinion, the school should show young people the optimal personal and professional development paths, help them enter the adult life in keeping with the requirements of modern civilisation. Therefore, it also should, from the very beginning, inculcate the students with the knowledge about innovation. Young people, through innate curiosity, seek the simplest ways of solving technical problems and making improvements to the existing solutions. We must be aware, however, that the imagination needs stimulating and taking care of. Innovation competitions, as well as permanent exhibitions, like those in the Museum of Technology and Industry NOT and in the Copernicus Science Centre, serve the purpose. Bearing in mind the importance of innovation, in particular inventiveness and an effective technology transfer from science to industry in view of the development of a knowledge-based economy, the Association of Polish Inventors and Innovators has been organising the Warsaw International Exhibition of Inventions (IWIS) for the past 9 years. To date, it is Poland’s only event devoted to

innovation and inventiveness with an international reach. The meeting has gained international prestige and is now the second largest exhibition of its kind in Central and Eastern Europe. So far, our visitors have included inventors from around 30 countries, including: Saudi Arabia, Egypt, Taiwan, China, Iran, Iraq, Canada, Korea, Malaysia, Thailand, Turkey, Bosnia and Herzegovina, Croatia, Romania, Russia, Slovenia, France, Belgium, Germany, Czech Republic, Slovakia, Moldova, Ukraine, Kazakhstan, Armenia, Bulgaria and Hungary. For 3 years, it has been co-organised by the Patent Office and the Warsaw University of Technology. Additionally, the Patent Office holds a side event, which is a series of seminars on intellectual property protection. Accompanying seminars are also organised by the Polish Confederation of Private Employers Lewiatan and LBA Lewiatan Business Angels. I am convinced that the 22nd Marketplace of Inventions will serve as an important forum for the exchange of experiences between inventors and entrepreneurs looking for new solutions to implement. Furthermore, I expect it to be an inspiration for engineering circles, especially technology universities, to take on new challenges, to search for new solutions, including inventions, which will encourage and improve economic competitiveness and social progress. The exhibition’s impact on the creativity of children and young people should not be neglected either. It will help them recognise the possibility to put into practice scientific knowledge: mathematics, physics, and other •

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Science

Research institutes

invest in R&D and succeed Prof. Leszek Rafalski, Chairman of the Main Council of the Research Institutes, talks to Dorota Jarocka.

You represent the community of 116 research institutes, which conduct research, primarily applied, fostering innovation in Poland’s economy, health, agriculture, defence, or environmental protection. Every year, the majority of awards for innovative solutions and significant efforts for the benefit of the economy and society, are received by research institutes. What is that success due to? The success of our institutes is undoubtedly the result of combining the modern research infrastructure and the creativity of many scientists and researchers who are trying to respond to the current economic and social needs. More than two hundred accredited laboratories operating within the research institutes represent a huge potential for expertise, research methods and equipment. As a result of research and implementation activities carried out by the research institutes in many sectors of the economy and in many areas of social life, they have reached an average revenue per 100N employees almost four times higher than university units, several times more patents, protection rights and patent applications, and almost three times more patents granted and other rights (per 100N employees). Our success is also a result of investment in development – research institutes invest in R&D an average of three times more of their own funds than the basic university units.

Why is there today such an emphasis on the practical application of science? Science should be useful. Scientists and researchers from our institutes are trying to respond to the current economic and social needs. It is worth noting that it is precisely the research institutes that can boast the greatest number of implementations among all other scientific bodies.

Innovative solutions presented by research institutes on international are gaining recognition in Europe and worldwide...

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In your opinion, what actions should be taken in order to make the most of the innovative achievements of research institutes for the benefit of the Polish economy? How to enhance cooperation between business and the R&D sector? There is still much to be done here. There are still many barriers that hinder cooperation. In times of innovative services and products, it is difficult to imagine the commercialisation of research results without close cooperation between business and scientific units, or even co-creation of R&D units by scientists and entrepreneurs. However, the involvement of private capital in the R&D sector is far too weak in Poland. Cooperation between science and business should rely on instruments which, on one hand, prompt entrepreneurs to implement new research, instead of using foreign licenses and, on the other hand, encourage researchers to undertake research and development activities that meet the needs of entrepreneurs. Such a cooperation will make Poland more competitive internation• ally. pm

That is true. Encouragingly, the number and quality of Polish inventions presented at international exhibitions are increasing from year to year. The path from an idea to investment often goes through showrooms, where in addition to the commercialisation of research results and promotion of achievements, you can exchange experiences with other researchers, get to know their research methods and apparatus, make contacts leading to joint projects, or sound out the research equipment market.

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Festo Sp. z o.o. Janki k/Warszawy ul. Mszczonowska 7 05-090 Raszyn Tel. +48 22 711 41 00 Fax +48 22 711 41 02 festo_poland@festo.com

Science

The Rzeszów University of Technology

a leading innovator Prof. Marek Orkisz, Rector of the Rzeszów University of Technology

tudents of the Rzeszów University of Technology have many opportunities to develop their passions and interests compatible with the programmes of study they pursue at the university. One example is projects carried out by students’ scientific research societies. Among the recent successes achieved by students of the Rzeszów University of Technology is the design of the Mars rover which won the third place in the Rover Challenge 2014 competition in the United States, a system called Face Controller, which enables disabled people to control a computer by movements of the head and facial expressions, and a racing car designed for the Formula Student competition. The Rzeszów University of Technology is a leading innovator in the Podkarpackie province. It boast about 70 protected inventions and utility models, as well as nearly 70 solutions in the patent application process. A high technological level of the inventions is confirmed by numerous awards brought from international exhibitions in Geneva, Seoul, Brussels, Sevastopol, Cluj-Napoca, Warsaw and other cities. A total of 60 awards were won

Photo: Marian Misiakiewicz

by the Rzeszów University of Technology in 2010-2014, the recent ones being: IWIS 2014 (Warsaw): “A retentive gully” – a gold medal with honours; “A multiutility community network” – a gold medal; “A tubular retention basin” and “A retention basin with the gravity flushing system” – silver medals; “A sewage overflow” – a bronze medal; Technicon Innovation 2014 (Gdańsk): “A method of activated sludge facilitation in sequencing batch reactor;” Brussels Innova 2014 (Brussels): “A wheelchair for people with disabilities” – a silver medal; Kompozyt EXPO 2014 (Kraków): “The AOS71 motorglider” – a common design of the Rzeszów University of Technology and the Warsaw University of Technology. Part of the award-winning solutions have already found application in industry. The Rzeszów University of Technology is one of the 12 institutions awarded the title of “Innovation Incubator” in a competition organised by the Ministry of Science and Higher Education. This will enable it to further develop its activities in the area of technology transfer.

In 2014 alone, the Rzeszów University of Technology rendered nearly 300 services, mainly for the industry. We work with large companies, such as WSK PZL Rzeszów SA, BorgWarner Poland Sp. z o.o., Hamilton Sundstrand Poland, as well as with SMEs. The Rzeszów University of Technology is a member of the consortium of the Centre for Advanced Technologies “Aeronet – Aviation Valley”, which deals with designing and testing aviation constructions and drives, IT aviation systems and avionic systems, materials engineering, modern manufacturing techniques in the aerospace industry or aerodynamics. The Materials Research Laboratory for the Aviation Industry at the Rzeszów University of Technology is a specialised laboratory, equipped with the best apparatus and equipment. In the context of its research into the properties of materials, the laboratory is accredited to the National Aerospace Defense Contractors Accreditation Program (Nadcap), a worldwide organisation drawing up common standards for the conduct of special processes, as well guidelines for testing procedures in aerospace engineering, defence and related industries. The lab’s management system is compliant with PN-EN ISO/IEC 17025 and SAE AS 7003 and confirmed by the Performance • Review Institute (PRI).

For detailed information, please refer to the university’s Centre for Innovation and Technology Transfer. The current offer for industry partners is available at: citt.prz.edu.pl/btt/ www.prz.edu.pl

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Politechnika Śląska The Silesian University of Technology

Centrum Nowych Technologii New Technologies Centre

Politechnika Śląska jest uczelnią o bogatej, 70-letniej już tradycji, jedną z najstarszych uczelni technicznych w kraju i najstarszą na Górnym Śląsku. Po blisko siedmiu dekadach działalności stanowi ważną instytucję życia publicznego, głęboko zakorzenioną na Śląsku – jednym z najbardziej uprzemysłowionych regionów w Polsce i Europie. Politechnika Śląska należy jednocześnie do największych uczelni technicznych w Polsce. Kształci obecnie około 26,5 tys. studentów na 15 wydziałach, zlokalizowanych w Gliwicach – głównej siedzibie uczelni, a także w Katowicach i Zabrzu. wana kadra naukowa, szerokie kontakty z wieloma ośrodkami naukowymi w kraju i za granicą oraz badania naukowe zorientowane na aktywną współpracę z przemysłem. Wyzwania gospodarki opartej na wiedzy sprawiły, że oprócz prowadzenia działalności dydaktycznej i naukowej Politechnika Śląska stała się także znaczącym partnerem biznesowym. Dysponując bogatą bazą patentów i specjalistyczną aparaturą, uczelnia jest w stanie odpowiadać na różnorodne potrzeby środowiska gospodarczego.

logy universities in Poland and the oldest one in Upper Silesia, draws upon a rich, 70-year tradition. With almost seven decades in activity, it is an important institution of public life, deeply rooted in Upper Silesia – one of the most industrialized regions in Poland and Europe. At the same time, the Silesian University of Technology is one of the largest technology universities in Poland. It provides higher education to approx. 26,500 students across 15 faculties, located in Gliwice – the seat of the university, as well as in Katowice and Zabrze. many domestic and foreign centres and research oriented to cooperation with industry. In addition to teaching and research activities, the Silesian University of Technology has become an important business partner to respond to the challenges of a knowledge-based economy. With a multitude of patents and specialised research apparatus the university is able to accommodate various needs of the business community.

POLITECHNIKA ŚLĄSKA ul. Akademicka 2A 44-100 Gliwice www.polsl.pl

Science

Progress in medicine. Benefits for the economy Prof. Marek Krawczyk, MD, Rector of the Medical University of Warsaw (WUM), talks to Maciej Proliński.

It is often said in the public debate these days that the whole medical sector can be a showcase of Poland’s innovation abroad, that we should use and develop the potential of the brightest scientists and best managed institutions, because their success can benefit the entire economy. In the case of the Medical University of Warsaw, transfer of knowledge from science to business is a very important part of its development strategy, isn’t it? Yes, indeed. In science, there are no single spectacular discoveries today; it has all moved to teamwork. So I have a great satisfaction when I look at my successors, colleagues, often of other specialities. At a university like ours, scientific development is supposed to bring progress in medicine, in its practical, clinical dimension. The research we do in our basic units – whether into anatomy, cytology, or biochemistry – should be put into practice. And a lot of research carried out by our employees actually is. The team of Magdalena Winiarska, MD, PhD, from the Department of Immunology, blazed a trail for new methods of cancer and leukemia therapy, and was the first to publish the results in the journal “Leukemia,” outpacing many foreign research institutes conducting research in this area. The team led by Dr. Winiarska discovered a new mechanism regulating the presence of an important antigen on the tumor cell surface, and recognised by therapeutic monoclonal antibodies. The antigen in question is the CD20 molecule, which is found on the surface of tumor cells of some types of leukemias and lymphomas. Scientists from our university demonstrated that certain modern anticancer drugs, which inhibit signalling pathways, can reduce the amount of CD20 molecules (antigens). The result is an almost complete obliteration of the antitumor efficacy of anti-CD20 antibodies, which have no possibility to bind to tumor cells. The discovery is of important clinical significance, especially in the light of the ongoing research into the efficacy of anti-CD20 antibodies if coupled with drugs inhibiting signal transduction. The research pm

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is carried out in the framework of BASTION, a large EU project, aimed to increase WUM’s research capacity in the field of experimental oncology and to shorten the time it takes for the results of basic research to be used in the clinical practice. Last year, a team of eight surgeons led by Prof. Andrzej Kamiński, head of the Department of Paediatric Surgery, successfully performed Poland’s first-of-its-kind procedure to separate conjoined twins. The surgery took place in the university’s Self-governing Public Children’s University Hospital in Warsaw. It was a typically medical success with no direct economic effects, but certainly very important for us. Not only a treat for the media. Our employees are also the winners or nominees of important science competitions. Among the finalists of the 14th edition of the Scientific Awards by the “Polityka” weekly, in the category “Life Sciences”, was Michał Grąt, MD, PhD, from the Department and Clinic of General, Transplant and Liver Surgery. Dr. Grąt deals with the liver and biliary tract surgery, but his primary interest is liver transplantation. As part of his research, he is working towards optimising the selection criteria for transplantation in patients with liver cancer and studying factors affecting the quality of the graft and transplant outcomes, including in elderly patients. The winner of the 8th edition of the POMOST competition by the Foundation for Polish Science Assoc. Prof. Katarzyna Koziak from the Department of Immunology, Biochemistry and Nutrition, Faculty of Health Sciences. Assoc. Prof. Koziak specialises in the field of pathology and molecular biology. The project she submitted was titled “ß-escin - a new agent in the skeletal muscle regeneration improvement?” Even our pharmacy graduates have important achievements. Joanna Sajkowska, MA, won the first award in the National Competition for the Master’s Thesis: “The search for links between the polymorphic variants of certain genes and

Science the parameters of bone turnover and cardiovascular system. A molecular analysis of certain complexes of vitamin D3.” Three students of the WUM’s Faculty of Medicine are winners of the third edition of the Diamond Grant of the Ministry of Science and Higher Education: Antoni Jan Domagała, Anna Kaszuba and Adrianna Weronika Kryczka. The competition is open to talented students of humanities and social sciences, natural sciences, medical sciences and technology, who plan to pursue an academic career and are ready to start doing research and working towards a PhD degree already during their graduate studies. An appreciation of the importance of intellectual capital for economic development results in WUM occupying high positions in the rankings of Polish universities. Is this a recipe for success? If a university is committed to quality, to providing a rich and attractive programme of study and research, it will have even more opportunities in terms of growth, outstanding students, research and tutorial grants, and consequently, it will earn a higher status, also against the European competition. It is worth noting that in last September’s session of the Medicine Final Exam (LEK) WUM’s graduates did best among those taking the exam for the first time. Their impressive results are largely attributable to the teaching staff’s commitment to ensure the highest level of education and the best possible preparation for the profession. WUM is in the top ten of the best academic institutions in Poland, according to the 15th edition of the ranking of universities “Perspektywy 2014”. In the area of medical and health sciences - it was named the best medical university in Poland. In the second edition of the ranking of Polish universities by the “Polityka” weekly, based on publications and citations, the Medical University of Warsaw was ranked fourth. And in the 4th edition of the National Certification Programme of Higher Schools “School of Leaders,” WUM obtained the: “School of Leaders” and “Primus”, certificates which are awarded to universities acting with account taken of the future of their graduates, adhere to high educational standards and take active measures aimed to put into practice the idea of academic entrepreneurship. The programme has been implemented from January 2011, jointly by the Foundation for the Development of the Education System and the Agency PRC, under the honorary patronage of Prof. Jerzy Buzek. The “School of Leaders” certificates are awarded to universities that strive to put out attractive, creative graduates, with extensive knowledge and practical skills. pm

Your biggest investment project, financed from the EU structural funds, the Preclinical Research Centre (CBP), is a major tool that will definitely encourage WUM’s scientific development. The Centre was opened on 27 May 2014. How is it going to develop and with whom? Yes. WUM’s Preclinical Research Centre (CBP) is a modern laboratory already in operation and permanently expanding the scope of WUM’s activities. The investment was part of Poland’s largest biomedical and biotechnological project - the Center for Preclinical Research and Technology (CePT), which is to become a leading centre for the development of basic research and technology. It will look into the causes and mechanisms behind the development of diseases that are most challenging for modern medicine - neurodegenerative diseases, cardiovascular diseases and cancers. It will also examine pm

drug properties, as well as develop new preventive and therapeutic methods. CePT’s plans for the next 10 years include 100 patent applications and 70 innovative achievements put into business practice. A good example of our activities is a new painkiller, much more powerful than the existing ones, developed in the Department of Pharmacodynamics, Medical University of Warsaw, which has been patented and put to clinical trials. The modernly equipped laboratory is open to cooperation with CePT’s units and preclinical and clinical centres across the country. The project is being implemented under the Operational Programme Innovative Economy for a total amount of PLN 100 million. WUM is the project’s beneficiary and is running it in cooperation with the University of Warsaw, Warsaw University of Technology and seven scientific institutes of the Polish Academy of Sciences. And when will WUM’s new Paediatric Hospital be put into use? We expect to receive the occupancy permit in the middle of this year. Then, our paediatric hospital should move from Litewska and Działdowska Streets to the new building on Trojdena Street in the Ochota district. The construction of the Paediatric Hospital took only three years, although it was an enormous undertaking. The huge hospital has 541 beds: 453 paediatric beds, 43 neonatal beds and 45 maternity beds. It will house a paediatric emergency department. At present, Mazowieckie province has only one department of this kind – on Niekłańska Street in Warsaw. The hospital will also have a neonatal and obstetrics wards. There is a helipad for the Air Ambulance Service on the roof of the building and operating theatres are located one floor below. The hospital cost over PLN0.5 billion. The process of providing it with equipment has been going on for several months now. It is worth noting that we are arranging here something which does not exist in Polish paediatric hospitals now - an obstetrics ward. It is an invaluable thing for pregnant women if, for example, the results of their examinations during pregnancy show that the child • will require a surgical intervention after birth. pm

1-2/2015 polish market

Science

Award in medicine e q u i va l e n t o f t h e N o b e l P r i z e

ecember 4, 2014 was a special day for the laureates of Prix Galien. This international competition has a 44-year tradition. The aim is to honour the most innovative and breakthrough achievements in the pharmaceutical field, medicine, and healthcare. In 2014, the Gold Medal – Galien International Award went to the National Network of Teleaudiology, whose initiator is Prof. Henryk Skarzyński. The ceremony was held in Monte Carlo.

The medals, granted by an international jury, are a unique distinction, very important in the world of medicine and are deemed to be the most prestigious award in this domain. The National Network of Teleaudiology is a system encompassing telerehabilitation, telefitting, teleeducation, screening tests and telediagnostics in Europe, Asia and Africa. In order to achieve the best possible results in hearing improvement after cochlear implantation, it is necessary to provide a patient with long-term and properly organized follow-up care. One of the most important tasks is optimal fitting of the implant”, – explains Prof. Henryk Skarzyński. “A usual procedure requires numerous patient’s visits to a specialist and multidisciplinary facility, where implantation has been performed. Very often the visits mean that the patient has to spend long hours and a lot of money on travelling. Travelling also makes the patient tired – especially when small children are concerned. All this lowers the credibility level of hearing tests and the accuracy of the fitting process. In order to reduce costs and shorten the distance and time of travels that would allow receiving the medical care of the highest quality, it was necessary to

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create a modern system of telemedicine. It allowed cheaper and effective rehabilitation of hearing and speech and a distant service designed for patients with various cochlear implants. This is a brief summary of the project. The team of engineers and other specialists, under the supervision of Prof. Henryk Skarzyński, conducted first research and later clinical activities related to telemedicine 14 years ago. Firstly, they focused on teleconsultations. In 2005 they took the first steps towards implant fittings in the growing group of patients with partial deafness. In 2007 first effects were presented in the international arena. The new method of telefitting started to be gradually introduced to the clinical practice. Very good results of this method used during pilot tests and systematical development of telerehabilitation resulted in the completion of another idea of Prof. Henryk Skarzyński – “National Network of Auditory Telerehabilitation”. This is brief genesis of the first-in-the-world National Network of Teleaudiology, which today comprises 20 centers in Poland. It is the only system of this type in this medical and healthcare field. The Network received numerous prestigious awards in the world, which proves its uniqueness. In 2010 in Washington, the network received the prestigious 21st Achievement Award in the category of Healthcare in the Computerword Honors Program. In 2012 it got the Prix Galien award in the Polish edition of the competition. The Prix Galien is an international competition divided into three categories: drugs, research activities and medical devices. It is held every year in different countries. “I’m extremely happy that my and my team’s work was honoured by this prominent scientific community and representatives of the world medicine. I know that the competition was strong. The jury selected only 16 participants for the finals from among 90 candidates in each category”, said Prof. Henryk Skarzyński after he had received the award. “The sentence pronounced during the gala, that is: Hollywood has Oscars and medical products have Prix Galien, best describes the importance and value of this award.” The Prix Galien award was created in 1970 in France by a pharmacist named Roland Mehl. His aim was to promote significant and breakthrough advances in the pharmaceutical industry and medicine. Since its creation, the award has grown into a prestigious event. It was named after Claudius Galen, the Greek father of pharmacy and medicine, talented experimenter, anatomist and physician, whose works had a big influence on the development of science. The Prix Galien is awarded to the companies and units that understand the need to invest in research, new technology and innovative medical products. In compliance with its tradition, the jury is composed of prominent scientists and re• searchers.

Infrastructure

From a strategy to investments

Zbigniew Miklewicz, PhD, President of the Management Board of Szczecin and Świnoujście Seaport Authority SA, sums up 2014 in an interview with “Polish Market”. How was 2014 for the ports of Szczecin and Świnoujście? It was a very good year. I mean both the cargo handling business and the financial results. Last year, we started two important projects: the redemption of employee shares and an attempt to lease the Ewa grain elevator. The Local SelfGovernment Appeals Court issued a favourable ruling, so the fees for perpetual usufruct in Szczecin and Świnoujście are the same as in the Tri-City ports, that is 0.3% of the value of the property, which undoubtedly makes our ports competitive. We have also adopted a new development strategy with a time horizon until 2027. pm

What cargos are handled in the ports of Szczecin and Świnoujście? The volume of cargo handled in both ports exceeded 23 million tonnes, an increase by a few percent compared to the previous year. Both ports are universal as far as they handle pm

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container, ferry and conventional cargo, as well as bulk cargo such as liquid fuels, coal, ore, grain, and loads of other mass, like for example aggregate, chips, fertilisers, sulphuric acid and tar. Does the list also include chemical cargos? Our terminals are prepared to handle almost any type of goods, including of course chemicals, such as sulphuric acid. We have also operators specialising in the transshipment of methanol. In 2014, almost 1,206.1 thousand tonnes of chemical cargos were handled at our wharves. The largest proportion of these, amounting to almost 65%, are fertilisers, followed by sulphuric acid, phosphorites, urea, sulphates, Saletrosan, sulphite lye, potassium salt, magnesite, and phosphates. The volume we handled was by 2.5% higher compared to 2013. For many years, chemical businesses have successfully operated in our region.. pm

You are also running numerous investment projects. Projects under the EU financial perspective 2007-2013 are nearing completion. We spent nearly PLN 600 million on them. On the one hand, there are typically marine projects, such as the construction of a new ferry berth and a ship berth in the LNG terminal in Świnoujście, and the renovation of wharves around the Ewa elevator in Szczecin. On the other hand, both ports implement other indispensable infrastructure projects, such as the modernisation of roads and railway lines or the construction of parking lots. pm

You mentioned a new development strategy. Under the new strategy, we intend to achieve ambitious goals. We are planning a number of investment projects increasing our market competitiveness. Our ports have the advantage of what is called a full access network: road and pm

Infrastructure rail transportation routes, and - through the Odra river - a connection with inland waters across Europe. Port infrastructure in Szczecin and Świnoujście serves western and southern Poland, eastern Germany, the Czech Republic, Slovakia, Austria and Hungary, which are rapidly developing countries. In the following years, we plan to step up efforts with respect to container transport in both ports. Altogether, this will enable dynamic development by strengthening our position as a key port of the southern Baltic and the leading port in the region. Do you intend to benefit from funding under the new EU perspective 2014-2020? Yes, as part of it, we want to upgrade berths No. 5 and No. 6 of the ferry terminal in Świnoujście and fit them with intermodal infrastructure. Furthermore, we intend to build, together with PLNG, a new LNG re-export terminal to meet the growing demand for LNG in the Baltic region. This will allow the re-distribution of liquefied natural gas to smaller ports and terminals of the Baltic Sea. In Szczecin, we will undertake a large investment package to adapt docks and wharves to a 12.5-meter-deep waterway. In addition, investment projects are being prepared to improve and develop water and wastewater facilities, energy, heating and telecommunications infrastructure. It should be noted that Szczecin and Świnoujście Seaport Authority has received an award as the country’s leading company in terms of the implementation of information technology for enterprise management systems. The value of the projects to be carried out in the new EU financial period will be approx. PLN 1 billion. The result - after deepening the waterway in Szczenin to 12.5 meters - should be an increase in the transshipment level to 2630 million tonnes per year. pm

What are your plans post-2020? As part of the financial perspective post2020, we plan two very important strategic goals. The first one is to redevelop Ostrów Grabowski (in Szczecin) for logistics purposes and port industries, while boosting the 12,5-metre port infrastructure. The second one is to build a container terminal in Świnoujście to effectively respond to the growing containerisation of cargo and the concomitant quantitative change in a throughput capacity profile. We are aware that we cannot count any more on such a strong support from the European Union as we received in the past. The projects will have to be carried out from our own resources or in public-private partnership. pm

The leading port in the southern Baltic what does it mean?

As I mentioned, we have ambitious growth plans, the expression of which is our determination to serve as a leading port in the southern Baltic. These plans are based on objective premises. We are a key transportation hub for western Poland, eastern Germany, Scandinavia and Central and Southern Europe - an economically booming part of Europe. The investment projects we have already carried out and plan to carry out in the future bring us closer to this goal. A special attention is given to the ferry terminal in Świnoujście, which will allow to increase the turnover with a special emphasis on transit. We look forward to seeing the LNG gas terminal put into use. It was built together with an external port revealing an additional investment potential of the port. Deepening the waterway to 12.5 metres will result in larger ships being able to carry bulk cargo such as fertilisers, coal, grain, iron ore, metals or scrap. If you add to this the full navigability of the Odra river and its enhanced connection with the Spree and the Havel, and thus with the entire network of inland waters in Europe, it will contribute to a further increase in cargo flow from Silesia and industrialised German regions in the direction of the Baltic Sea. It is in fact the cheapest means of transport. It also allows the shipment of large-sized structures, which are difficult to carry by rail or road. Another of our strategic goals is, as I have already mentioned, to build a container terminal in Świnoujście. Analysis of changes in cargo handling shows an increase in container and ferry transshipments both in Poland and worldwide. We plan to expand the container handling capacity. When it comes to the strategy of our ports in Szczecin and Świnoujście, we are keen to fit in with the global trend. We want to be at the forefront, we have an action scenario to make Szczecin and Świnoujście the leading ports in the southern Baltic. We hope that entrepreneurs will appreciate what we offer and will locate their operations here. I should stress at this point that our two ports have large undeveloped areas that can be used as investment locations. I strongly believe that the Świnoujście and Szczecin port complex can effectively compete with other ports in the CEE region. Its advantages, location, continuous development and modernisation are appreciated by many investors. These include both global giants and local small businesses. The ports’ diverse business profile, based on the facilities available, makes for their universal character. The current volume of goods handled shows that there is still a lot of untapped potential, including for new • investors.

We want to be at the forefront, we have an action scenario to make Szczecin and świnoujście the leading ports in the southern Baltic.

1-2/2015 polish market

Infrastructure

Railways need a development programme

Prof. Janusz Dyduch, Vice-President of the Polish Federation of Engineering Associations (NOT), talks to Marcin Haber.

For many years, motorways and highspeed railways have been flashpoints in discussions about infrastructure in Poland. The past year was marked by the launch of the Pendolino trains and opening of subsequent motorway sections. What will now be the main topic discussed? For me, the problem is more complex. I think it is hard to call these things flashpoints. These were the huge historical and economic challenges that had to be overcome. It was very difficult, but we managed to address the problems with road infrastructure quite effectively, and now that the main goal has been achieved, we should carry on. I think that as we go through Poland now, you can hardly say that the country has not changed from the perspective of road users. It is more problematic with railways. The Pendolino on Polish tracks is like a flower in sludge. If you want to drive quickly, you need to have good roads in the first place. The same goes for railways, and the only economic area, which was neglected in terms of development at the time of Poland’s entry into the European Union is the railway infrastructure. Drawbacks and omissions are enormous. Still, we have made significant progress with many lines having been upgraded. An example of inconsistency in rail transport is the way the high-speed rail project is being carried out. The project was suspended without any major reason, even though as much as PLN 80 million had been spent on it. The then minister of transport made a mistake. It should not happen in a democratic country that a development programme adopted by the government is put on hold by an arbitrary decision of one minister. We have a better understanding of the matter now, and we are going to resume the project previously interrupted. We bought a train based on a technology of 25 years ago - an old train. We bought a train, pm

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which at a voltage of 3 kV, will never reach high speeds, and in addition, we do not have suitable infrastructure. The purchase should have been postponed. We have good domestic manufacturers: Newag, Pesa, which produce trains reaching some 200-220 km/h and sell them to the West. It would be cheaper, while also giving an economic stimulus. By the way, Polish companies would presumably make a much better train ... Not presumably. That is a fact. These companies sell 80% of their highest-class output in Western Europe. It is a testament to their quality. pm

What about the EU’s new spending plan? Can it be hoped that the resources for infrastructure will be allocated for railways? There is always hope. Firstly, it is about huge money and the line was actually modernised, but the problem in the Polish railways is what has already been solved in road transport. Motorways and expressways ushered Poland into Europe. That is something we have failed to achieve in rail transport so far. The suspension of the high-speed rail programme is extremely unfortunate. The result will be that we will first have trains running at 120140 km/h, then we will be mending rails and wondering why we need such high speeds. If this development programme is not pursued, it will be a civilisational collapse of Poland as compared to Europe. But the problem with the railways is not just about fast access and high speed, something not everyone seems to understand. It is mainly a matter of technology, transition to 25 kV AC, modern rolling stock, the railway industry at large. The railways have always stimulated the economy. From the point of view of the country, the economy, the development of Poland and its place pm

in Europe, high-speed rail definitely needs to be developed. Do you think it should be now a top priority as regards infrastructure? No. Priorities as such do not exist in the economy. There is only a careful consideration of what should actually be done. You cannot make a priority choice between food, going to work and raising children. All these must be done, it must be a well-thought-out programme. It is therefore necessary to modernise infrastructure, because it has to be restored to a good technical condition, and to develop new technologies that will let us into the world of modern transport, communication, technology and production. pm

But despite what you say, you can see that railway companies have been doing increasingly better recently, coming out of the hole they were stuck in for many years. How can you explain this? The issue is much more complex. The Polish railways lack a reasonably targeted modernisation programme. Yet, things are getting better. There are changes in human resources etc., but it is not efficient enough. The railways need a development programme. I repeat, a programme. Twenty five years ago, the Swedes embarked on an image change in railways, and they succeeded. So we have a good example to follow. We also have Europe’s best R&D rail facilities. You need to create a programme stating: what, who, where, when, for how much, and see it through item by item, calling regular press conferences to comment on items already fulfiled. Let us first get it done, and only after discuss how to improve logistics. These facts are common knowledge, but you have to put it into the hands of people who have relevant expertise. • pm

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.

Infrastructure

Step by step,

we are catching up with our Western neighbours Kazimierz Frąk, President and Director General of Zakłady Automatyki Kombud SA

The Intelligent Transport System is one of the biggest challenges ahead when it comes to infrastructure. Do you agree? The Polish transport infrastructure has been through a renaissance. I am pleased to see Poland catching up step by step with its Western neighbours, as evidenced by economic figures. Many of us – users of the Polish roads, railways and air connections – can feel the change. One of the natural consequences of economic development is urbanisation, which leads to a paradox - we have better roads but also more road users, we have better railways but expectations as to reliability and efficiency of transportation are rising, and the same is true of the capacity of airports. Intelligent Transport Systems (ITS) will undoubtedly play an important role in the continuous improvement of our infrastructure so it meets people’s growing expectations. They will further increase safety, help reduce the environmental footprint of vehicles and improve road throughput. Due to the size and complexity of projects, the continuous improvement of the infrastructure will always be a kind of a challenge, but above all, it is a great opportunity for society, and a mission and duty for the government and businesses. The Polish railway sector alone have seen great technological advances in the past 15 years, with computer systems increasingly pm

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replacing electromechanical solutions. As a result, the Polish railways will soon be using ETCS. Modern systems will support traffic services in ensuring the optimal use of available infrastructure, for example our main corridor lines, whose throughput is limited by their parameters and safety standards. At Kombud SA, we share this responsibility and therefore every year approx. 20% of our income is spent on R&D in order to develop new innovative control systems. We can already boast achievements that make the future of the Polish railways, such as Local Control Centre in Drzewica, enabling safe traffic operation across 90 kilometers of railway line No. 22. Last year marked the launch of the ITS Cluster. Do you think this will help develop cooperation between science and industry in the field of infrastructure? Any initiative bringing the worlds of industry and science closer together is most worthwhile. The concept of a cluster, as far as it allows close cooperation between science and the business environment at large, undoubtedly contributes to wider recognition of ITS in Poland. Let us wait to learn the outcomes – and it will take a while – before assessing the ITS Polska initiative. Kombud has for many years been cooperating with the Radom University of Technology pm

and Humanities, the Institute for Sustainable Technologies-National Research Institute, and other institutions, such as the Warsaw University of Technology and the Railway Institute. We work together on new technologies and help train future railway industry experts. We know by experience that such activities bring fruit. Is there any project you are particularly proud of? Since the inception of the R&D team several years ago, Kombud has managed to implement a dozen of projects. One of the greatest achievements was undoubtedly ESTER –an effective system for the remote control and management of rail traffic. The project, worth more than PLN 21 million, was carried out in 20092013 and co-funded under the Operational Programme Innovative Economy. Thanks to its implementation, Kombud not only enlarged its product portfolio and developed new technologies, for both products and manufacturing processes, but also established new contacts with academic institutions. The ESTER project received a very positive feedback. It was honoured, for example, with the Transport Innovation Award by the Transport Innovation Centre. • pm

Infrastructure

Today’s computers can do much more and much faster Prof. Jerzy Mikulski, President of the Polish Association of Transport Telematics in Katowice, and Prof. Ryszard Pregiel, President of the Polish Chamber of Commerce for High Technology, talk to Marcin Haber about the Intelligent Transportation Systems and related solutions.

For a start, what is in general the biggest problem of Polish infrastructure? Prof. Mikulski: I think the problem is changing the philosophy and then changing the infrastructure, so we have to realise that the rigid, “concrete” infrastructure is not enough, that more intelligence is needed in management, supervision, monitoring and navigating systems. In everything that concerns road or rail traffic, there is talk of Intelligent Transportation Systems. A well-organised supervision can do much more than new roads. We can build a new road, but it will soon get jammed if not managed properly. Today’s computers can do much more and much faster and therefore traffic can be better organised and facilitated, because the major concern is to balance transport capacities of both passengers and goods so that they make their way faster and safer. Intelligent Transportation Systems is a concept that dates back to the 1970s. First developed in America, it crossed the Atlantic to reach Europe. In the 1990s, it was adopted throughout the European Union. pm

Last year, the Cluster of Intelligent Transport Systems, the project initiated by the then Minister of Regional Development and Infrastructure Elżbieta Bieńkowska, was inaugurated. Prof. Mikulski: The project was born at the state administration level. A Subcommittee for Intelligent Transport Systems was set up within the Parliament’s Committee on Infrastructure. The Polish Association of Transport Telematics and the ITS Polska Association work together to enhance pm

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cooperation between science and industry for the benefit of local governments, cities, and the entire national system of traffic management. It is good that the Chairman of the Subcommittee - Bartłomiej Bodio, who attends seminars organised by the two associations, managed to bring us together and formalise our actions. A cluster is a body that connects people who have something to offer and those who are in need of new solutions, and for whom these companies and universities work. And how does the cooperation between science and industry really look like? Prof. Mikulski: It is always a bit of a bed of thorns because the industry has its proven solutions. Often, however, these are developed abroad and adapted to Polish conditions. For a long time, tenders were organised in such a way that the decisive factor was the lowest price, and you can see like under the microscope that it is not good. The winning providers would implement their technologies, but when something got wrong and needed to be serviced, it turned out that it was not the cheapest solution. It is high time to address the issue. Already now, the price is no more than 50% of success in many tenders. What counts is also experience gained in previous projects. Perhaps this will work out as a plus in our field of activity, too. But do not forget that greater involvement of the domestic industry is needed. pm

The fact that the Cluster was created is a signal that even the state administration has come to take the matter seriously, isn’t it?

Prof. Mikulski: I think that setting up of the Cluster is the first step to make it work. Now, cooperation is possible between universities and industry for the benefit of Intelligent Transportation Systems. This may not be the end of the tunnel, but you can certainly see some light. Before we finish, could you explain what Intelligent Transport Systems (ITS) really are? Prof. Mikulski: This is an automated system for traffic management. „Automated” in terms of communication and in terms of equipment. The word „telematics” captures the meaning of ITS, which combines two words - „telecommunications” and „informatics.” You can see here the importance of the transmission of information in a dedicated feedback loop, from where it is stored and processed to the point where control is exercised. Prof. Pregiel: A technical system is called intelligent, when it is able to adapt to changes in the environment without man’s help. The Intelligent Transportation Systems are not systems with „dead” automation. An intelligent system is one that can recognise, without man’s help, traffic volume peaks, control it, accommodate what is a dynamic situation from the point of view of road users. It is also one that comes into contact with road users, automatically displays jammed parts, suggesting alternative routes, and this is the best definition: an intelligent system is when a machine is able to work out the situation and, automatically, through built-in software, react to these changes. • pm

Chemical Industry

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Innovation

BCC BCC unveilS Polish Business Leaders

The Grand Theatre-National Opera in Warsaw hosted the Grand Gala of the Business Centre Club (BCC), crowning the 24th edition of the Polish Business Leader contest. On 24 January 2015, the Golden Statuettes of the Polish Business Leader were awarded to Presidents of the best Polish companies. And the past winners who managed to maintain their market position were added Diamonds to their Golden Statuettes. The Special Award of the Business Centre Club was handed in to President of Poland Bronisław Komorowski for “his commitment to the development and stability of Poland and for his consensual policy that makes for the growth of the Polish economy and Polish companies”.

Maciej Proliński

arek Goliszewski, President of the Business Centre Club, welcomed the guests and delivered the opening address: “We need today to redefine what we want to be our place in the future. Challenges impose themselves on us? Firstly, it is about strengthening the citizens’ trust in state institutions; boosting their participation in the governance of their country. We are working together with President Bronisław Komorowski, trade unions and the Government towards a new formula for public consultation and social dialogue. It is social pacts that have ensured that Ireland is now developing eleven times faster than other EU countries. (...) 25 years ago, Lech Wałęsa, Tadeusz Mazowiecki and Leszek Balcerowicz told the Poles that the victory would cost them sweat and tears, to paraphrase Churchill. At this evening’s gala, we are going to reward the victorious people. Success stories should be spoken of more frequently because demand for the media coverage of misfortune is insatiable. Then perhaps more our compatriots would sing after Agnieszka Osiecka: “No, I regret not. On the contrary, I thank you very much for that you are my country, that you are my hell and paradise”. Poland’s best companies were awarded Diamonds, Nominations and the Golden Statuettes. The 24th edition of the Polish Business

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Leader contest was joined by 104 companies, 40 of which were nominated for the Golden Statuettes, and 12 were eventually announced as winners. This year’s Polish Business Leaders are: Asseco Poland SA, Bioscience SA, EP Centrum Finansowe Sp. z o.o., MCKB Sp. z o.o., Casino Polonia-Wrocław Sp. z o.o, Wieliczka Salt Mine, Polmotors Sp. z o.o., Schrack Technik Polska Sp. z o.o., Sitech Sp. z o.o., Mlekovita Dairy Cooperative, Polish Television and Trefl SA. Since 1992 the BCC has also been presenting Special Awards – Golden Statuettes to famous personalities from outside the business community, for contributing to the development of entrepreneurship and market economy in Poland. This year’s laureate was Bronisław Komorowski. Accepting the statuette, the President of Poland stressed that Poland had made good use of the opportunities that emerged after regaining freedom 25 years ago. He also thanked the other nominees and winners and congratulated them on “showing courage at the right moment”. “Sometimes they had to take risks, sometimes they had to work hard no matter what it took, and sometimes they would somehow get a stroke of luck, which is so badly needed to dare to think about success in business,” said the President. “I regard this award as a form of appreciation of the path I have followed so far, but also as a kind of commitment

for the future. These nice evaluations are part of the assessment of the 25th anniversary of a free Poland, an expression of gratitude for what has been achieved by joint effort,” he added. Also, as every year, the Social Solidarity Medals were awarded for community involvement and outreach, assistance to those in need, promoting corporate social responsibility and building social solidarity. Their winners are entrepreneurs known for their charity work and involvement, and public figures devoting their time and energy to helping the needy. The organisers of the contest are the Business Centre Club and the Foundation of the Warsaw Archdiocese for Helping the Poor and Unemployed “Nadzieja”. The Medals went to: Ewa Błaszczyk, President of the Foundation “Akogo?,” Bruno Duthoit, CEO of Orange Polska, Jacek Migrała, Director General of Hochland Polska, Dariusz Sapiński, President of Mlekovita Dairy Cooperative, as well as to Władysław KosiniakKamysz, Minister of Labour and Social Policy, for his contribution to the “Large Family Card” and the “Good Climate for Family” programmes, and to Irena Wóycicka, Secretary of State in the Office of the President of Poland, for her contribution to the “Good Climate for Family” programme. The Gala was graced by a concert of an excellent Czech orchestra, playing American jazz standards from the 1920s and 1930s, The Melody Makers. •

Industry

Zetkama S.A.

a leading manufacturer of industrial valves

Henryk Majchrzak, president of PSE SA

Leszek Jurasz, President of the Board of Zetkama S.A.

etkama S.A., the leader in industrial valves in Poland, has again received an award. The Fifth Diamond to the Golden Statuette of the Polish Business Leader was handed in to Leszek Jurasz, president of Zetkama, during the Gala of Polish Business Leaders, held by the Business Centre Club at the Grand Theatre-National Opera on 24 January 2015. Zetkama, a well-known manufacturer and exporter of industrial valves and cast iron, operates on 56 markets around the world. Throughout the 69 years of continuous activity, the company has established itself as a leader in its industry, with more than 70% of its production being exported. The company focuses on quality and innovation, constantly expanding its scope of activity and investing in innovation. Zetkama applies modern management systems (based on Lean Manufacturing and Lean Management) and the quality of its products is confirmed by certificates, i.a. ISO 9001: 2008. As a result of a permanent, sustainable development, Zetkama was floated on the Warsaw Stock Exchange in 2005. The capital raised was earmarked for further development – a new factory was built, equipment was retrofitted and new machines added – which resulted in an increased production capacity. The 2008 crisis undermined somewhat the company’s ambitious growth plans, but a prompt response to it and organisational changes aimed to accommodate a downturn made it possible to achieve satisfactory results in 2009, too. At that time, the company started building a corporate group, bringing together actors from the metal industry: in 2008, it acquired

a manufacturer of fasteners (Śrubena Unia S.A.), in 2009, it established a manufacturer of exhaust system components as well as metal and aluminum components (MCS Sp. z o.o.), in 2011, it acquired a majority stake in a manufacturer of safety valves and liquids level indicators (Armak Sp. z o.o.). In 2013, the Group launched research and development activity (Zetkama R&D Sp. z o.o.). The youngest, since December 2014, member of the Group is a provider of industrial automation, maintenance services and infrared services (Techmadex S.A.). But it is not the end of its development. Asked about plans for the future, Leszek Jurasz answers: “Our goal for the coming years is to incorporate other entities, and to ensure an even more dynamic development of the Zetkama Group.” The average annual turnover of the whole Group amounts to PLN 300 million, and with a new company in the portfolio, it is set to increase. The stock market recognises the potential of Zetkama and its way of doing business – the company’s market capitalisation continues to grow. Acting in a transparent manner, publishing forecasts and their implementation are the main principles guiding Zetkama’s presence on the public market. This was appreciated by investors and independent experts who awarded it the title of the Listed Company of the Year in 2013 as part of a ranking by the “Puls Biznesu” daily. Last year, Zetkama was also the leader of the TSR Ranking – Golden Share for the period 2011-2013, making its shareholders gain 537% (accoding to a ranking by Biznes.pl). Zetkama’s advantage is undoubtedly its professional management staff. Leszek Jurasz, is a manager highly recognised by business

and scientific communities alike. He oversaw the company’s IPO 10 years ago, and now continues to develop the entire Group. His managerial skills are confirmed by the results of the Zetkama Group, with its annual turnover of PLN 300 million, as already mentioned. Leszek Jurasz had his professionalism acknowledged by the business community with the title of the President of the Year (according to the “Bulls and Bears” ranking by the “Parkiet” daily), putting him among five managers of particular merit to the companies they manage and to their shareholders. He also brought out his performance as a leader able to reconcile the pressure on shortterm results with maintaining the long-term growth by taking the 6th place among the most effective CEOs of sWIG80 companies in the last five years (according to a ranking by “Harvard Business Review Polska”). In 2006, Zetkama was presented with the Golden Statuette of the Polish Business Leader by Business Centre Club. The company is constantly developing, maintaining a high level of business performance, which is reflected in successive Diamonds to the Golden Statuette received in 2010, 2011, 2012, 2013 and, on 24 January 2015 – the Fifth Diamond to the Golden Statuette of the Polish Business Leader. Finding itself among Poland’s best businesses is a great success for Zetkama, and this year’s Fifth Diamond is proof that the actions taken in the company’s and the entire Group’s activities are noticed and positively evaluated by the business community, which is a stimulus for further development. •

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Events

The Laurels ceremony

is an opportunity to show all the good that our region abounds in On January 17, the 23rd Gala of Skills and Competence Laurels, was held in the House of Music and Dance in Zabrze, with the awards granted to distinguished representatives of local governments, chambers of commerce business, science, culture and medicine.

T From left: Jerzy Stępień, Prof. dr hab. n. med. Janusz Skalski, Tomasz Konior

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he guests were greeted by Mayor of Zabrze Małgorzata Mańka-Szulik: “Here again people meet who not only love Silesia, not only love Poland, but who know how to achieve success. (...) That is why, it is always with such a joy that we look forward to this January evening to meet those who not only create this daily reality we live in, not only achieve success, but also share their experience and positive energy. (...) Our hearts are warm and they are beating for Silesia”. Tadeusz Donocik, President of the Chamber of Commerce and Industry in Katowice, highlighted in his speech the role of the awards. “The Laurels ceremony is an opportunity to show all the good that our region – Silesia and Opole – abounds in and to show the extent of that good”. Tadeusz Tokarz, President of the Regional Council of the Chamber of Commerce in Częstochowa, spoke on behalf of all those honoured with Golden Laurels. He pointed to the 25th anniversary of the revival of organizations of businesses in Poland: “I would like to stress that we would not be where we are today without the existence of science, business, local government, business environment and chambers of commerce”. Jacek Janiszewski, former

Events

Minister of Agriculture and Rural Development (19971999) and currently Chairman of the Board of the National Guarantee Fund “Samorządowa Polska”, thanked for the award on behalf of all those honoured with Platinum Laurels. Crystal Skills and Competence Laurels were awarded to: Małgorzata Mańka-Szulik, Mirosław Sekuła, Marshal of Silesia in 2013-2014, Franciszek Buszka, President of the Silesian Regional Chamber of Civil Engineers, Vice-President of the Silesian Chamber of Construction Industry, First VicePresident of the Chamber of Commerce and Industry in Katowice, Father Bishop Gerard Cush, PhD, Bishop Emeritus of the Gliwice Diocese, and Judge Jerzy Stępień, President of the Constitutional Court in 2006-2008. When receiving the award, Bishop Kusz said modestly: “How did I get here? I do not do anything extraordinary, only what it takes to perform my primary function. And the function of a bishop is to build bridges. With the help of many collaborators, many good people I started doing this in the new diocese. I think we need to continue to build bridges because the current of the river is getting faster and more dangerous. So I say thank you to everyone who helped me in building bridges between people, between different groups”. Prof. Jerzy Stępień, for his part, stressed the role of Silesia in the process of building Polish local government: “Thank you for this touching distinction. It is of particular importance here in Silesia because it is from Silesia that the idea of local government actually expanded to the rest of Poland in the 13th century. When drafting local government laws at the end of the 1980s and beginning of 1990s, we did draw upon the experience of the Silesian Autonomy, but we would not have moved as fast as we did if it had not been

From left: Marek Staszek, Zenon Nowak

for three outstanding Silesians or people associated with the University of Silesia. The link between the Republic and the former generation, which took the effort to rebuild local government, was Prof. Karol Podgórski. The second person

From left: Prof. Jerzy Buzek, abp Wiktor Skworc, Marek Kłoczko

was Prof. Karol Sobczak. (...) Finally, one could hardly not mention Prof. Walerian Pańko. (...) They instilled the idea of the local government throughout the country. (...) It can be said that Polish local government owes most to Silesia”. Marek Kłoczko, Vice-President and Director General of the Polish Chamber of Commerce, received the Crystal Diamond Laurel. “Twenty five years ago organization of businesses revived in Poland. Twenty five years ago, too, the Polish Chamber of Commerce was established. Over these years, we were trying to fulfil our mission and our main task, that is to promote entrepreneurship, but primarily to support efforts of business communities to get integrated, to undertake joint initiatives, to take actions that go beyond what a single entrepreneur can do. (...) I believe the whole community deserves that Laurel.” The Special “Silesian Piast Eagle” Prize was presented to Archbishop Wiktor Skworc, Metropolitan of Katowice. He demonstrated socially sensitive approach to economic, social and political issues in Upper Silesia, and commitment to addressing mounting social conflicts. “We are working for the common good, for the good of our Silesian homeland - I grew up here, I received education here and I want to work as best as possible for our little homeland patrimony as part of our big homeland, which we also want to serve all. (...) I would like to thank all entrepreneurs. I am grateful that you create and maintain jobs.” The highest award, the Diamond Skills and Competence Laurel, was awarded to President of Poland Bronisław Komorowski. The ceremony ended with a concert titled “The Wonderful World of the Musical” by the Symphony Orchestra of the Zabrze Philharmonic under the baton of Sławomir Chrzanowski, and soloists from Roma Theatre in Warsaw: Edyta Krzemień, Ewa Prus, Łukasz Talika and Damian Aleksander. •

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Events

The riding feast in

Kliczków Castle

It is already for the thirteenth time - happy! - that the Equestrian Gala was held in Kliczków Castle in Lower Silesia. This prestigious event brings together every year not only horse and horse-riding lovers, but also enthusiasts of carnival fun in good taste.

he event was opened by the “Lady of the Castle,” Magdalena PiaseckaLudwin. During the gala, statuettes were awarded to the promoters of horse riding in Poland. This year they went to the outstanding Polish rider Ireneusz Kozłowski for his relentless cultivation of the combined driving tradition, breeding his own carriage horses and for taking part in the world championship in Normandy with his own four-in-hand. The title of the Organiser of the Year was granted to the director of the Cavaliada project, Dominik Nowacki for the professionalisation of equestrian shows and the creation

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of arenas to promote various horse disciplines, while the title of the Rider of the Year went to Szczepan Mazur, the winner of the 100th jubilee Wielka Warszawska Race. The distinction “Piórem z kopyta” was awarded to Jacek Świgoń for creating the “Konie i Rumaki” magazine, his openness to new equestrian initiatives, and curiosity of the world and people. Interestingly, the statuettes for the winners were made by Mariusz Łapiński, lecturer of the Academy of Fine Arts in Wrocław. His glass exhibition titled “Kandinski’s Carafes” can still be seen in the Castle’s lobby for the next few weeks. But these are not all

of the artistic accents of the Equestrian Gala at Kliczków Castle. Horse paintings by Natalia Przesmycka, PhD, lecturer at the Lublin University of Technology, are displayed in the Castle’s Orangery until the end of January. And brush watercolours by Edward Jan Koziołek from the Wrocław University of Technology can be admired in the reception area of Kliczków Castle. The official part of the Equestrian Gala was hosted by a well-known satirical cartoonist, Henryk Sawka. After the official part, a dinner was served. Guests had fun listening to the Rifformacja band, and to “Elvis Presley himself” who entertained them from the stage! As every year, at midnight sharp, guests sang “Amaranty – Wizja Szyldwacha” and made a toast to the horse. There seemed to be no end to songs and amusements; guests were singing “Ułani, ułani” and “Szwoleżerowie”. There were also prize contests designed by the co-organisers of the Gala: Horsemanship Development Foundation, Equestrian Federation of Lower Silesia, Lower Silesia Jockey Society - Partynice, Pro Culturae Bono Foundation, Kliczków Castle and Prince Farm. The main partner of this year’s Gala was Tauron Ekoenergia in Jelenia Góra, and the sponsor was Water and Sewerage Company Aquarius in Jelenia Góra. The media partners of the event were “Koń Polski” and “Polish Market”. Be invited to the 14th Equestrian Gala in • Kliczków Castle next year!

26 marca 2015 Hotel Westin, Warszawa

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Culture

The year 2015 in

culture

Over PLN 3 billion are to be allocated for culture and the protection of national heritage from the state budget in 2015 - promises Prime Minister Ewa Kopacz. That is about 10% more than in the previous year. According to the Prime Minister, it is the highest amount ever spent on Polish culture. “We are close to reaching the goal of 1% of the national budget going to culture, which is the major provision of the social contract concluded with artists and people active in culture,” she said. We will also celebrate important anniversaries this year. Here are some of them sketched by Maciej Proliński.

his year, we will celebrate the 250th anniversary of the National Theatre, the first public theatre in our country. A special parliamentary resolution, says that the establishment of the National Theatre in 1765 marked one of the fundamental steps towards creating a state support system for widely available culture. “This act was also undisputed evidence of Poland’s participation in the development of a modern democratic Europe. Today, the direct heirs of the theatre founded by King Stanisław August Poniatowski are the National Theatre and the Grand Theatre-National Opera, which will celebrate 250 years of existence in 2015”, reads the resolution. The special anniversary programme will be prepared by the National Theatre. The plans include, holding a special edition of the international festival National Theatres’ Meeting and staging outstanding Polish poetic dramas, including “Forefathers’ Eve” by Adam Mickiewicz and “Kordian” by Juliusz Słowacki. According to Polish MPs, one of the symbols of the strength and creativity of Polish theatre, reaching for various means of expression, is Tadeusz Kantor (1915-1990), a painter, graphic artist, producer and director. “His creations are an example of the work deeply rooted in Polish culture, which is able to delight audiences around the world. While celebrating this year’s 250th anniversary of Polish theatre, we cannot forget the 100th anniversary of the birth of Tadeusz Kantor and his work”, goes the resolution. The 10th anniversary of the death of and the 1st anniversary of the canonisation of Pope

John Paul II fall in April 2015. The resolution highlights the strong commitment of the Polish Pope to the process of rebirth of Poland’s independence and promoting the universal message of human rights and dignity. The Polish Parliament wants to see these values accompany the actions taken on the occasion of the John Paul II Year. It is worth paying attention, in June 2015, to a number of events organised in Warsaw in connection with the 100th anniversary of the birth of the priest-poet Jan Twardowski. Father Twardowski (1915-2006) is one of the most popular Polish authors. He wrote in a simple way about extraordinary things. Someone once wittingly noted that “this phenomenon is as unusual in Polish poetry as Chopin in Polish music”. And for me, it also amazingly resembles the master of American poetry Edward Cummings Estline... We are also looking forward to the Polish premiere of Symphony No. 4 “Tansman. Episodes” by Henryk Mikołaj Górecki. The symphony (completed by the son of the composer Mikołaj) had its world premiere in April 2014 at the Royal Festival Hall in London. In Poland it will be first performed on 15 February 2015 by the Łódź Philharmonic, conducted by Mirosław Jacek Błaszczyk, and then registered on a CD. Górecki (1933-2010) is one of the few composers of our times to have combined the grandeur and the radical nature of his work with commercial success. In 1992, his Symphony No. 3 topped the American and British charts. But Górecki gained international fame thanks to the album by the American singer Dawn

Upshaw and the London Sinfonietta conducted by David Zinman. The opening of the National Forum of Music, which is scheduled for the autumn, will be one of key events of 2015 in Wrocław. In June, the programme will be announced for the city’s celebrations of the European Capital of Culture title that Wrocław will assume in 2016. The National Forum of Music (NFM) is the flagship cultural investment project of the capital of Lower Silesia. It is supposed to be one of the most modern concert halls in Poland. The building will house, among others, the Orchestra and Choir of the Wrocław Philharmonic, the Wrocław Chamber Orchestra Leopoldinum and the Wrocław Baroque Orchestra. It will also host the biggest festivals in Wrocław, including Wratislavia Cantans, Musica Polonica Nova, Forum Musicum and Jazztopad. The Polish film “Ida” by Paweł Pawlikowski has received a shower of the most important awards in recent months. Produced by Opus Film in Łódź, “Ida” tells the story of a novice nun who learns that she is Jewish, and that her aunt is a Stalinist prosecutor. The picture stars Agata Trzebuchowska and Agata Kulesza. It has recently triumphed at the European Film Awards, and in March it will compete for an Oscar. If it does win the award, it will be an indisputable proof of a material strengthening of the position of Polish cinema in the world and its new artistic quality, as well as a good omen for Polish culture in 2015! •

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Culture

A book

the best choice Irena Koźmińska, founder and president of the “ABCXXI – Cała Polska czyta dzieciom” (All of Poland Reads to Kids), Foundation laureate of ”Polish Market” Honorary Pearl award in the category “Promotion of Social Values,” talks to Maciej Proliński.

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Do you think that a book is still the best gift for Poles? It would be nice... The slogan “A book under every Christmas tree” won in a competition organised once by our Foundation. A return to the custom of offering each other gifts of books would certainly improve reading statistics and general enlightenment in society because reading translates into wisdom. You have to start from the youngest years, since it is difficult to convince a 15-year-old or a 50-year-old that they should read if they have no such habit. It is up to the parents and teachers to instill love for books in children, which is by the way not difficult at all, because children like listening to reading. Condition: adults should read them interesting books, in a friendly atmosphere and regularly, preferably daily, just as they feed them every day. Reading is a nourishment for your mind and psyche, so it should not be served on special occasions only. It is a mistake to force children to reading, as it is too difficult for them at the beginning. They should be read to until at least the age of 12 years, even if they already know the letters and begin to read by themselves. It is not just about books, but also about the relationship and meaningful conversations inspired by reading. pm

Research conducted by the National Library shows that over the past year more than half of Poles did not read a single book. I must admit that, living in the country of Norwid, Gombrowicz or Białoszewski, I somehow cannot understand this painful statistics... Yes, 60% of Poles do not read anything. These are pupils, students, people with higher education and in leadership positions. Busy parents do not care enough about children’s language and reading, the school discourages them from reading by forcing them to go through boring required reading, and new technologies offer easy and attractive entertainment. Unfortunately, this trend holds good. To become a reader, you need two things - reading skills and motivation. The ability to read appears as a result of the knowledge of language, not letters only. Many children find it difficult because they cannot learn language from the screen, but need emotional interactions with their loved ones who are talking with them and encourage them to practise conversation. According to specialists, if you want to become proficient pm

Culture

in any field whatsoever, you need some 10,000 hours of exercise. Today’s children do not take such exercises, though. Some people think that reading is an elite activity. This is a dangerous idea, because in a democracy every voice counts as much, the voice of an ignorant too. So it is necessary to ensure that all children are familiar with the language, appreciate books and associate reading with pleasure. If you look at the list of societies that read most, you will see that they have high civilisational standards and are economically developed. The number of books read - fiction, factual, scientific - is reflected in the quality of life, both individual and social.

“A nation that does not read much does not know much. And a nation that does not know much is more likely to make poor choice in the home, the marketplace , the jury box, and the voting booth.Uneducated majority can outvote the educated minority – it is a very dangerous aspect of democracy.” An IPSOS survey of 2011 confirmed the effectiveness of our campaign: 54% of parents reported that they read to their children. Other children, if they are not read to at home or in kindergarten, unfortunately start school without being quite prepared in terms of good language knowledge and thinking skills. That is why we keep reminding about reading!

After all, one of the best brand-building drivers is culture. The sense of culture is also expressed in its causative nature, that is in what is called the creation of civilisation. But in Poland, the opinion is rather widespread that spending on culture means “generating costs” and not an excellent investment. Why? What you say is very important. Our priority has for years been the economy. But man cannot be an “addition” to the economy and technology, devoid of moral vectors and culture. What we produce intellectually, and not on an assembly line or in the field, should be our strongest asset in dealing with the world. If something is innovative, creative, it is primarily the work of people of a stirred imagination, endowed with knowledge and culture, and these are not shaped by watching TV and taking tests, but by nurturing of their humanistic potential, including through reading. According to a US survey, every dollar spent on early education in language and reading returns tenfold. It was once suggested to Winston Churchill that he cut funding to the arts to pay for Britain’s war effort, to which he responded “Then what would we be fighting for?”

With young Polish mothers in mind, the Foundation has recently embarked on a unique project “Pierwsza książka mojego dziecka - PKMD” My Baby’s First Book. Women who stay in maternity wards after childbirth receive a free-of-charge package: a book and a DVD with an educative film and lullabies. The book contains information for parents about the benefits of reading and poems to be read to a baby. Research into neuroscience confirms that you have to stimulate the child’s brain from birth, and early language education through reading is the best way to raise an empathic, thoughtful and wise person. When we started the campaign, the idea was to have children grow up to be readers. In our current campaign “Reading from Birth,” we underline the need to teach children the language, because this is getting worse, and parents do not have time to talk, have fun, read to children, but have them seated in front of the screen, which will not teach them the language. In fact, language is the basis of thinking, communicating with people, gaining knowledge and participating in culture. Our book encourages parents to read every day, build relationships with the child, teach them the language and explain the world outside. We have plenty of signs that parents are very positive about it, and PKMD becomes the child’s favorite book. Since 2013, more than 160 thousand PKMD packages went into the hands of new mums. The cost of the package – a book with a DVD – inclusive of delivery to the maternity ward, is less than PLN 10, tax included. Our dream is that every newborn’s mum receives it. With approx. 370 thousand children being born every year in Poland, we need some PLN 3.5 million to meet the demand across the country. The book raises the awareness of parents

For several years, you have been promoting reading among children and adolescents. In 2001, you launched the public campaign “All of Poland Reads to Kids,” aimed in particular to encourage parents and teachers to devote at least 20 minutes a day to reading to children. So perhaps next generations will be ready to sacrifice more for culture? The campaign “All of Poland Reads to Kids” was inspired by the words of Jim Trelease, the US-born author of “Read-Aloud Handbook”: pm

Our book encourages parents to read every day, build relationships with the child, teach them the language and explain the world outside. and can change the life chances of the child and their family. Our activities are financially supported by the Ministry of Culture and National Heritage, but this is not enough... The e-book edition of “My Baby’s First Book” is available for download free of charge at www.calapolskaczytadzieciom.pl •

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Cultural Monitor

Maciej Proliński recommends.

Cinema – a thrill of emotion

“

Fotograf” (The Photographer), a new, powerful and atmospheric film by Waldemar Krzystek, telling a story of a serial killer, a topic rarely chosen by Polish film directors – in Polish cinemas since January 9, 2015. In the new film of the director of “Mała Moskwa” (The Little Moscow) and “80 milionów” (80 Million), a dangerous killer prowls Russia and Poland. To understand his motives, one has to return to the developments in the Soviet garrison in the south-western Polish city of Legnica in the 1970s. The investigation is conducted by an intriguing pair: an experienced high-ranking police officer (Aleksandr Baluyev) and a young policewoman who has not lost her ideals yet (Tatyana Arngolts). The cast includes some of the most popular Polish actors - Tomasz Kot, Sonia Bohosiewicz, Adam Woronowicz and Agata Buzek – in brilliant roles. The film keeps you in suspense until the end.

Theatre – a smile

Photo: Luka Łukasiak

“

Fallen Angels,” Noël Coward’s classic comedy greatly popular ever since it was written in 1925 – not only in London and New York theatres, but also throughout Europe – in Warsaw’s Och-Teatr theatre since December 2014. Directed by Krystyna Janda, it is a story of two friends, Julia and Jane, who once fell in love with the same man and try to cope with the emotions which come flooding back when their former love reappears in town after many years. Why does this old comedy still amuse us. I think that in the time of the omnipresent “interpretations” of classic theatre pieces it is ingenuity and talent that always prevails. In this case, it is first of all the talent of two outstanding Polish actresses: Magdalena Cielecka and Maja Ostaszewska. Their acting, full of grace, intelligence and humour, is truly top class. The actresses mercilessly expose, with a single word or gesture, the shallowness of many contemporary works.

Discs – great art Warsaw Rising” – Agora – DVD – English subtitles “Warsaw Rising” is a truly unique feature film as it is made using exclusively documentary materials – authentic newsreel footage shot in August 1944. It tells about the uprising - which was an attempt to liberate the Polish capital from the German troops during the Second World War - as seen by two young reporters, witnesses to the fighting. Using modern technologies for the colorization and reconstruction of audio-visual materials, and working with a group of outstanding artists, the filmmakers have carried out an unprecedented project. The idea for the storyline came from the film’s director, Jan Komasa, while the screenwriting was done by Joanna Pawluśkiewicz, Jan Ołdakowski and Piotr C. Śliwowski. Reports about the film have appeared in the media on all continets, including the “Daily Mail,” daily in Britain, “Le Figaro” in France, “Washington Post” in the United States, the Xianghunet television station in China and even the On-line Nigeria portal as well as media outlets in Mexico, Kuwait, Kazakhstan, New Zealand and elsewhere – in a few dozen countries reviewers have tried to attract the interest of the audiences to this unusual work. This is hardly surprising. “Warsaw Rising” is a moving film – instead of being an artificial attempt to reconstruct past events, it relies on hard realism. At the same time – thanks to the effort contributed to it – the film is not merely an abstract black-and-white newsreel from the period of war. “Did the Polish people really need the uprising?” we may now ask. The film was a Polish candidate for the Academy Award in the Documentary Feature category.

Kroke – “TEN” – Universal Music – CD

he Kroke band delighted Steven Spielberg when he was in Kraków shooting his “Schindler’s List.” And Peter Gabriel invited the musicians to WOMAD, one of the world’s biggest festivals, organized by his private record company. Kroke have also appeared on many occasions with famous violinist Nigel Kennedy. What the Krakow-based musicians play is neither klezmer music, nor world music or jazz. I do not know which part of the planet their music is from, but I know from which recesses of the soul it comes. “TEN” seems to be the most diverse among the albums ever released by Kroke, as if the musicians wanted to include here everything that had earned them recognition over more than two decades. However, the diversity is not the result of conscious efforts. It is the result of emotions, or - to say it more grandiloquently - the musicians’ specific state of mind. You can hear from the album how excellently the musicians communicate with each other. And there is simply the joy of playing there – a beautiful and inspirational album.

Grażyna Auguścik Orchestar – “Inspired by Lutosławski” – For Tune – CD

rażyna Auguścik, one of the most original Polish jazz singers, endearingly combines several elements in her new album: folk, jazz and classical music. Auguścik and her musicians drew inspiration from Witold Lutosławski, an outstanding Polish composer of contemporary classical music, for whom an inexhaustible source of inspiration had been Polish folklore. But the musicians reached back even to the original music that inspired Lutosławski. An example is the lyrical composition entitled “A w tej studni” (In This Well). The Janusz Prusinowski Trio contributed the folk element to the project while the Jan Smoczyński Trio is responsible for the jazz flavour. Smoczyński, an excellent pianist, also arranged the compositions.

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Cultural Monitor – January 2015

Cultural Monitor

Czesław Niemen – “Niemen Enigmatic,” “Czerwony album” – Polskie Nagrania – CD/2 CDs

he Polskie Nagrania record company has released another two albums in the remastered album series by legendary Polish singer Czesław Niemen (1939-2004). The magic and artistic power of this music is still able to appeal to everyone. “Niemen Enigmatic,” the fourth album recorded by the artist, has been regarded as a watershed in Polish music almost since the beginning. Even its cover was remarkable - with a photograph of Niemen looking at the audience. The title was to suggest there was something mysterious in the recorded compositions. There are only four of them on the disc – written by Niemen to lyrics by Polish poets. The most important piece is Cyprian Kamil Norwid’s monumental “Bema pamięci żałobny rapsod” (A Mournful Rhapsody in Memory of Józef Bem). It was the object of stormy discussions after the album’s release in 1970, with some critics even accusing the artists of “having desecrated what the nation holds sacred.” But time has shown how wrong they were. Niemen’s fifth album, called “Czerwony Album” (The Red Album), was the first double-record set with popular music released in Poland. The remastered album is also divided into two parts – two compact discs – and has the original cover design, with Niemen’s characteristic portrait, a “pop culture icon of the time.” The great Polish singer again used here Norwid’s poetry. But the album also features “Człowiek Jam Niewdzięczny” (Ungrateful Man I Am), an unforgettable 20-minute composition with lyrics written by Niemen himself.

Trzy dni później – “Pokój jej cieniom” – For Tune – CD

he Trzy Dni Później band are the winners of the Grand Prix of the 17th Polish Radio Folk Music Competition “New Tradition.” The musicians also received a Special Award for the most creative use of the folk music written down by Oskar Kolberg, a 19th-century Polish ethnographer and folklorist. The album is a collection of their own compositions and musical impressions reflecting the multicultural character of Lower Silesia. The band’s musical style escapes easy definitions. You can find here a creative search for a new form of electroacoustic music – subtle and vague. The music does not try to win over the listeners with melodiousness. Instead, it enchants them with its somewhat “cold” beauty and great mystery.

trzy dni później pokój jej cieniom

Grzegorz Turnau – “7 widoków w drodze do Krakowa” – Mystic – CD

rzegorz Turnau is one of the best known Polish singer songwriters. Continuing the tradition of sung poetry, including the tradition of Kraków’s legendary Piwnica Pod Baranami literary cabaret, the place of his debut, he belongs to the elite group of Polish stage artists who combine artistic success and high audience numbers. He increasingly proves that he is a real master in telling about transience. The same is the case with his latest series of songs - “7 widoków w drodze do Krakowa” (Seven Views on the Road to Kraków) - inspired by 19th-century mural paintings discovered in an old residential building in Kraków. The paintings depict the surroundings of the city, with their old castles and monasteries - such places as Tenczyn, Tyniec and Ojców. Outstanding instrumentalists are accompanied here by a violin chamber orchestra. Dorota Miśkiewicz appears in several compositions singing in a duet with Grzegorz Turnau. I recommend the album to all those who like subtlety, originality, smile and melancholy in songs.

L.U.C. – “REFlekcje o miłości apdejtowanej selfie” – Warner Music Poland – CD

.U.C., or Łukasz Rostkowski, a Polish rapper, beatboxer, music producer, composer and video clip director, tells us with his latest disc about his extreme experiences over the past year. Most importantly, he is not afraid to tell us frankly about his weakness. The artist decided to interweave his compositions with fragments of Polish songs of the 1970 and 1980s, songs which are of special significance to him. “I have returned to these melodies because of my sentimental attachment to them, looking for the neutrality of memories and the strength to face a dark series of events,” he says. And he has succeeded. The album has interesting lyrics, is mature and full of contemplation and personal allusions. And speaking about love, L.U.C. managed to avoid clichés. To sum up – the album is a good antidote to the music of most Polish bands, who sing in English extremely banal things and imitate clichés which have been around in the music world for years.

Fisz Emade – “Mamut” – ART2 – CD

t seems the duo of the Waglewski brothers, sons of Polish legendary rock musician Wojciech, never sounded as powerfully as their latest album “Mamut” (Mammoth), although it is again a largely sentimental journey back to the time when hip hop triumphed on the international music stage. Three years have passed since the release of the album entitled “Zwierzę bez nogi” (Animal Without a Leg) where Fisz and Emade told us about their great fascination with this music of the 1980s and 1990s. Over the years, the musicians have made their fans accustomed to experimentation in music and the mixing of various styles. But they want their productions to have one thing in common – high quality. The new album, an energetic hip hop for discerning audiences – contemporary but aware of their roots - enchants the listener with its melody, lyrics, sound and music production. It is gratifying that it is such a hit today on the CD and radio market.

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Culture

Gombrowicz turned into a ballet

The season’s second ballet premiere will be held in the Grand Theatre – National Opera on February 14, 2015. Entitled “Pupa” , the one-act ballet choreographed by Anna Hop to the music of Stanisław Syrewicz is based on Witold Gombrowicz’s famous novel “Ferdydurke”, a metaphorical, timeless and funny treatise on an everlasting immaturity. The composer’s daughter, Klara Syrewicz, is the author of the libretto. The ballet adaptation of “Ferdydurke” will be performed by the Polish National Ballet company.

Maciej Proliński

ombrowicz published “Ferdydurke” in 1937. Instantly recognized as an outstanding piece of literature, the novel has since been translated into many foreign languages. It has been part of the canon of great Polish literary works for decades and required reading in Polish schools. Its protagonist is a 30-year-old Joey, who has just been drawn to the writing career. He is suddenly visited by his former schoolteacher named Pimko and taken back in time to his old school class. The present time is suddenly transferred to the past, becoming the real time for the protagonist. While at school, Joey is subject to a regular process of infantilization and stupefaction. In successive stages of this “time travel,” he is constantly pressed into forms of educational and social conformism. How to turn a novel, where narration plays a dominant role, into a ballet? How to translate a multi-layered piece of prose into the language of a different art and not lose in the process anything of the intellectual content of the original or the plot’s clarity? Such adaptations have already been attempted by film and theatre directors Jerzy Skolimowski and Maciej Wojtyszko. The novel continues to tempt successive producers and audiences driven by curiosity. Stanisław Syrewicz and Anna Hop are inspired by Gombrowicz’s grotesque. Both want to translate elements of the writer’s symbolism into the musical and

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visual language. “Just like there is no room for lyrical tones in Gombrowicz”, Stanisław Syrewicz remarks, “and just like drama is mixed with the grotesque in his work, there is no room for mawkishness, solemnity or soppiness in my compositions where irony runs deep. ‘Ferdydurke’ is as tough to adapt as a ballet as it is fascinating - the body, or rather its parts abstracted from the context of the whole are an important element in the construction of the novel’s grotesque world. Notions such as “pupa” [backside], “gęba” [mug], “łydka” [calf of the leg] and “rozczłonkowanie” [dismemberment] describe social and psychological phenomena which, despite the passage of several decades, are still terrifyingly relevant.” The Polish composer has for years lived in London and Paris. He has written music for over 100 films and worked with such artists as Jose Carreras, Yves Montand, Andrzej Żuławski and Jerzy Skolimowski. He has won an ACE Award in the United States for his music to Ivan Passer’s film “Stalin.” And his music to “The Choir” film series topped classical music charts in Britain for many weeks. Stanisław Syrewicz is always eager to work with Polish artists, which ensures his permanent artistic presence in Poland. Warsaw’s National Museum has recently commissioned him to make a multimedia installation entitled “Grunwald 2010” and music to the film “Grunwald 3D”.

Anna Hop is a Polish National Ballet dancer and a choreographer. As a dancer she has such roles to her credit as Kurt Weill’s “Alabama Song” duet, Gavotte from “In Light and Shadow” choreographed by Krzysztof Pastor and Doll from “Nutcracker” choreographed by Andrzej Glegolski. In 2010, she made a debut as a choreographer on the stage of the Grand Theatre with a ballet to Marek Grechuta’s and Takehisa Kosuga’s music during the Second Choreography Workshops Creations 2. Creations is a performance produced exclusively by Polish National Ballet dancers. The idea of the workshops is to create an opportunity for the dancers to make a debut as choreographers and to release their creative and organizational initiative. The artists taking part in the project have a free hand when it comes to the concept of the ballet evening, its preparation and organization, but may use the theatre’s costumes and organizational and technical assistance. Since her debut in 2010 Anna Hop has shown every year her new choreographic pieces at the workshops: “The Problem of Fear” to Kenji Eno’s music (Cinematic Orchestra Remixes, Creations 3) in 2011, “Lab V” to the popular music of the 1950s (Creations 4) in 2012, “Collars” to Meredith Monk’s music (Creations 5) in 2013 and “Arctic” to Meredith Monk’s music (Creations 6) in 2014. •

Royal Castle’s

collection goes online

Photo: A. Ring, L. Sandzewicz

Culture

Warsaw’s Royal Castle museum has launched a website, http://kolekcja.zamek-krolewski.pl, to show its collection online. At present, it features more than 1,000 exhibits, both those which make part of the permanent exhibition and those which are usually hidden from view in storage rooms. The works of art available for viewing on the Internet account for less than one third of the museum’s total collection. The Royal Castle wants to digitize 80% of the collection by 2020.

Jan Matejko, “Stefan Báthory at Pskov”

Maciej Proliński

he exhibits with descriptions have been divided into the following categories: paintings, sculptures, drawings, prints, furniture, ceramics, glassware, textiles, metalwork, timepieces, weapons and armaments, numismatic items and archaeological objects. Work on digitizing the collection began in 2011. The website is financed by the Ministry of Culture and National Heritage, the Teresa Sahakian Foundation and from the Royal Castle’s own budget. It has two language versions: Polish and English. “The website showing the collection of the Royal Castle in Warsaw is the product of a threeyear project to digitize the collection of the Royal Castle in Warsaw and make it available to the public,” says Aldona Modrzewska, who is responsible for the project. “We have chosen more than 1,000 objects most typical of our collection, representing various arts and the highest artistic value. They make up a representative group of early modern art works of Polish and European cultural heritage. The online catalogue is to serve research and educational purposes. Through it, we would like to disseminate knowledge about our museum collection in a way convenient to the public. The pictures of the objects are supplemented with descriptions prepared by museum curators. The catalogue

will be regularly supplemented with new photographs and texts. The plan is to digitize 80% of the collection by 2020. You can hardly find in our website anything than does not concern the Castle’s collection. Pictures occupy 80% of the website. The rest is a description of the collection: its history, origin and what was happening to it over the years. Detailed descriptions are also provided.” The website opens with Jan Matejko’s monumental canvas “King Stefan Báthory at Pskov” of 1872. It depicts envoys of Russian Tsar Ivan the Terrible suing for peace with the Polish king. The painting has recently undergone conservation treatment and is again adding splendour to the Castle’s interiors. When you click the tab “Highlights” you will see several dozen objects selected from all the categories into which the Castle’s collection has been divided. The selection includes paintings, sculptures, prints, drawings, furniture, metal objects, ceramics, textiles, orders and coins. Works commissioned by King Stanisław August Poniatowski to decorate the interiors of the Royal Castle are the biggest part of the highlighted objects. Of special significance here are the 22 portraits of Polish rulers painted in 1768-1771 by Marcello Bacciarelli for the Marble Room. The same artist painted large canvases with scenes from the

history of Poland for the Knight’s Hall. Another important section is made up of paintings from the Painting Gallery at the ground floor of the Castle. Among the most valuable objects are two works by Rembrandt: “Scholar at His Writing Table” and “Girl in a Picture Frame” – both painted in 1641. In the 18th century, they became part of King Stanisław August’s collection and were owned later by the Rzewuski and Lanckoroński aristocratic families. They returned to the Royal Castle in 1994 by the will of the last owner, Karolina Lanckorońska. Among the ceramic objects are both pieces made by reputable Western European porcelain factories in Meissen, Sèvres and Vienna, and products manufactured by the Warsaw Faience and Majolica Factory. The presentation of prints begins with Tomasz Treter’s valuable copperplate of 1588. It depicts Poland’s national emblem, the White Eagle, with portraits of Polish monarchs in medallions. The numismatic objects include coins, like for example the denar of King Bolesław Chrobry dated to around 1000, medals, including the gold medal of King Jan Kazimierz commemorating the Peace Treaty of Oliwa, and decorations, including the Cross of the Janina Order of the Sobieski family. •

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18 – 19 lutego 2015 Warszawa

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