Polish Market No.7-8 (260)/2017

PU B LISHED SIncE 199 6 No. 7/8 (260) /2017 :: www.polishmarket.com.pl

i n s i d e : * a ir F o r cE o nE wa s r E F u El l E D b y l o tos Marc i n J as t r z ę b s k i , President of the ManageMent board of the Lotos grouP sa “lotos rEportED thE highEst rEvEnuE in its history”

.................................................................................................... * 27 t h E co n o mic F or u m in K ry n ic a

.................................................................................................... * 25 t h int E r nat ion a l DEFEncE in Dus try E x hib it ion

Culture

MUSIC BRINGS

joy

AGNIESZKA ZIELIŃSKA, conductor, pianist, guitarist and composer, talks to Ewelina Janczylik-Foryś.

Her concerts include composed music and improvisations inspired by jazz, blues and film music. She has worked with the ATM Studio Film & Television Production Centre, the film music division, composed film music for Polish Television, participated in many music festivals, and collaborated with the Witold Lutosławski Concert Studio of Polish Radio. Improvised music concerts are taking up more and more space in her professional calendar.

"Children's education based on music therapy is a beautiful, worthy mission as part of which I am open to accept help from donors and all other people willing to support young talents from poor families", she says.

You help children from low-income families – that is a very noble thing to do.

At the Youth Community Centre in Warsaw I am working on a “Family” project. During my music therapy classes, I often work with children from dysfunctional families. I try to inspire them with music, I discover their new passions, and I want to help these children, to take them to a different world. And I can see that music brings them joy, that it takes them on a journey. The workshops are free of charge and addressed to young and older children aged 6 to 18. But their music adventure does not end once they come of age. Recently, I have written an album for a wonderful, 17-year-old girl, who also happens to come from a broken home.

She is very mature for her age, and so are the lyrics, for which I composed the music.

PM

Where did this desire to help others come from?

From the heart, I think. Believe me, every day I see children who are experiencing pain and suffering at home. But here, during our moments together, they forget about it. And this is an amazing feeling to see these sad children’s faces light up with true joy and smiles. Music gives them freedom, it liberates them. But it also provides them with a sense of security. I run the workshops to inspire the children so that they can spot their innate talents. We often invite parents to come and see how talented their children are. We have even PM

held a joint parents’ & childrens’ concert. This is beautiful too, to succeed in bringing those families together. The parents are there specifically for their children, and it also brings a smile to their faces.

You are working with children from dysfunctional families. Have you ever encountered a victim of abuse and had to react somehow?

Yes, I have. I saw children with bruises and other traces of abuse. But you know, such traces are not always physical, and often behaviour alone is enough to recognise a victim. In such cases, I talk to my colleagues to jointly decide what to do next, and then we do it. Happily, I must admit that this is happening increasingly less and less often.

Is this about stereotypes?

Yes. This domain is reserved for men. This is not due to women's lacking in any way as conductors or composers but rather stems from our inability to break through the glass ceiling.

PM

PM

Any plans for new classes?

Yes, my latest project is an art camp. We take children on summer camps, and, in addition to music, try to make them interested in ceramics, fine arts, etc. We want them to develop sensitivity to music, arts, aesthetics in general.

Why is that so? Women work in heavy industry, typically associated with “male occupations”. It would seem reasonable to assume that “culture is a woman”.

Classical music is reserved for men, and, according to the popular belief, the male composer is strong and determined. But that's not entirely so. Women have more beautiful emotionality. I can say from my own experience that the whole community perpetuates this stereotype, and is not even trying to change it. Once, an established composer gave up on writing a music score for a documentary. I took over and completed the job over the course of three days. Now can you imagine that in the closing credits I was named a co-author of the music whereas that man appeared there as the lead composer?

In your work as a conductor and composer, have you encountered discrimination in any form? And I’m asking this not without reason – nearly every classical music concert is conducted by a man.

Yes, sadly you are right about discrimination.

So, this is quite brave of you to talk about this. You accept projects even though you know a man will claim credit for them.

Female composers are not respected. After graduation, they don't have the chance or the “can-do” to work in their profession.

•

PM

PM

PM

PM

7-8/2017 89 polish polish market market 89

ONTENT

6. From The President’s Press Office 7. From The Government Information Centre INTERNATIONAL RELATIONS

8. DONALD TRUMP PAYS A VISIT TO POLAND 11. THE NATO SUMMIT IN BRUSSELS HAS AFFIRMED LAST

YEAR’S RESOLUTIONS

OUR GUEST

12. STANISŁAW KARCZEWSKI, Speaker of the Polish Senate:

POLISH MEDICINE HAS GREAT POTENTIAL

13. KONSTANTY RADZIWIŁŁ, Minister of Health: THE GOAL IS TO ENABLE PURSUING PRO-HEALTH PUBLIC POLICY

14. ANTONI MACIEREWICZ, Minister of National Defence:

28.

MATEUSZ A. BONCA, PH. D., The Vice President of the Management Board of LOTOS Group, Responsible for strategy and development: LOTOS GROWTH THROUGH INNOVATION AND BALANCED INVESTMENTS

30. JANUSZ FUDAŁA, President of the Management

Board of ORLEN OIL: WE MUST BLAZE NEW TRAILS AND ACT AS A TRENDSETTER

DEFENCE SECTOR 32.

THE AEROSPACE AND DEFENCE SECTOR HITS ALMOST $675 BILLION IN 2016 GLOBAL REVENUES

34. THE 2ND PRO-DEFENSE TRADE FAIR 35. PROF. LESZEK RAFALSKI, Chairman of the Main Council of Research Institutes: CIVIL RESEARCH INSTITUTES SUPPORT THE SECURITY OF POLAND

36. STANISŁAW TRENCZEK, PhD, Director and Associate

POLAND COMMITTED AND LOYAL MEMBER OF NATO

Professor at the EMAG Institute of Innovative Technologies: EMAG INSTITUTE'S EXPERIENCE TO BE USED IN NATIONAL DEFENCE

15. STANISŁAW SZWED, Secretary of State of the Ministy

37. ACTIVITIES OF THE INSTITUTE OF INDUSTRIAL ORGANIC

17. ANDRZEJ J. PIOTROWSKI, Undersecretary of State, Ministry

38. LEOPARD TANKS ARE GOING STRONG

of Family, Labour and Social Policy

of Energy: WE NEED A COMPREHENSIVE APPROACH

CHEMISTRY FOR SECURITY AND DEFENSE OF THE STATE

40. JAKUB SYSTA, Director of Managed Security Services ENERGY

at EXATEL S.A.: CYBERSECURITY CHALLENGES IN POLAND

18. RADOSŁAW DOMAGALSKI-ŁABĘDZKI, President

42. MARCIN HABER: PRIORITY IN AVIATION IS SAFETY

20. NEUF 2017 THE POLISH ENERGY MIX VERSUS GLOBAL

PAWEŁ SZYMAŃSKI, Director of the Unmanned Aerial Vehicles Department at the Civil Aviation Authority: THE LAW MUST BE FLEXIBLE. YOU CAN’T PREDICT HOW TECHNOLOGY WILL DEVELOP

of the Management Board of KGHM Polska Miedź S.A.: TO BE ONE OF THE GLOBAL

TRENDS AND DOMESTIC NEEDS

44.

ECONOMY

22.

MACIEJ BANDO, President, Energy Regulatory Office: 20 YEARS OF THE POLISH POWER INDUSTRY AND ITS MARKET REGULATOR

24. THE 4TH “POLSKA CHEMIA” CONGRESS 25. HALINA PUPACZ, President of the Polish Chamber

of Liquid Fuels: FUEL PACKAGE PRODUCES POSITIVE EFFECTS

26.

MARCIN JASTRZĘBSKI, President of the Management Board of LOTOS Group: LOTOS REPORTED THE HIGHEST REVENUE IN ITS HISTORY

48.

ZYGMUNT BERDYCHOWSKI, Chairman of the Programme Council of the Economic Forum in Krynica Zdrój: WE CAN REACH AGREEMENT BY TALKING TO EACH OTHER. TOGETHER.

52.

ADAM PÓŁGRABIA, President of the Board and CEO, MARCIN PŁOSKI, Vice-President of Business Development, and TOMASZ BAL, Vice-President of Product Design : A SMART BUILDING IS LIKE A LIVING ORGANISM

CULTURE

55.

JANUSZ MICHAŁEK, President of the KATOWICE SPECIAL ECONOMIC ZONE and PROF. BARBARA PIONTEK, Vice-President of KSEZ: KATOWICE SPECIAL ECONOMIC: BRIGHT PROSPECTS AND A PERFECT PLACE TO INVEST

70. CULTURAL MONITOR

58. ALICJA ADAMCZAK, President of Patent Office of the Republic of Poland:

72. MACIEJ PROLIŃSKI: AN UNKNOWN AND ENCHANTING PIECE OF ART...

THERE’S NO ENTREPRENEURSHIP WITHOUT CREATIVITY!

59. POLISH MARKET AWARDED WITH THE EUROPEAN MEDAL MARKET IN POLAND 2016 EDITION

73. MACIEJ PROLIŃSKI: ESTONIA IN MUSIC GARDENS EVENTS

MEDICINE

60. INNOVATION IN MEDICINE: POLAND'S FIRST EARLY-PHASE TRIALS WARD 62.

WIKTOR JANICKI, Managing Director of Roche Polska: KEYWORD: CO-OPERATION

74. MACIEJ PROLIŃSKI: GUARANTEES OF QUALITY! 75. THE ONLY CONCERT OF ITS KIND IN THE WORLD 76. MACIEJ PROLIŃSKI: READ and ye shall find

63. IWONA ŁUGOWSKA, a clinical oncologist, head of the Early-Phase Clinical Trials Ward and coordinator of the Science and Industry Centre: UNIQUE OPPORTUNITIES FOR PATIENTS AND RESEARCHERS

78. MACIEJ PROLIŃSKI: LOOKING FOR NEW MARKETS FOOD INDUSTRY

64. DOROTA HRYNIEWIECKA-FIRLEJ, MD, Ph.D.,

President of Pfizer Polska Sp. z o.o.: INNOVATIVE PHARMACY. DISEASES WHICH ARE YET TO BE TREATED

79. HEALTH FOODS ARE OUR TRADEMARK

66. LEK-AM - A POLISH FIRM WORTHY OF YOUR TRUST 81. ECONOMIC MONITOR

68. KATARZYNA NIEDUŻAK, Management Board member of AA Stomatologia: PEOPLE: THE COMPANY’S MAIN ASSETS

69. MONIKA ZDZIARSKA-ALICKA, Owner, Essence Beauty Clinic:

APART FROM AESTHETIC MEDICINE ONE NEEDS THE RIGHT LIFESTYLE

Cover: LOTOS PETROL STATION Photos on issue: www.shutterstock.com

7-8/2017 Publisher: Oficyna Wydawnicza RYNEK POLSKI Sp. z o.o.

(RYNEK POLSKI Publishers Co. Ltd.) President: Krystyna Woźniak-Trzosek Vice - Presidents: Błażej Grabowski, Grażyna Jaskuła Address: ul. Elektoralna 13, 00-137 Warszawa, Poland Phone (+48 22) 620 31 42, 652 95 77 Fax (+48 22) 620 31 37 E-mail: info@polishmarket.com.pl

Writers/Editors: Maciej Proliński, Jan Sosna, Janusz Korzeń, Jerzy Bojanowicz, Andrzej Kazimierski, Janusz Turakiewicz Translation: Sylwia Wesołowska-Betkier, Agit, Rafał Kiepuszewski Contributors: Agnieszka Turakiewicz Graphic design: Godai Studio Agnieszka Charuba, Joanna Wiktoria Grabowska

Editor-in-Chief: Krystyna Woźniak-Trzosek

Sales: Phone (+48 22) 620 38 34, 654 95 77

Deputy Editor-in-Chief: Ewelina Janczylik-Foryś redakcja@polishmarket.com.pl Marcin Haber m.haber@polishmarket.com.pl

Marketing Manager: Magdalena Koprowicz m.koprowicz@polishmarket.com.pl

DTP: Godai Studio www.godai.pl Printing: Zakłady Graficzne TAURUS – Roszkowscy Sp. z o. o., www.drukarniataurus.pl Circulation: 8,000 Oficyna Wydawnicza RYNEK POLSKI Sp. z o.o.

Nr KRS 0000080385, Sąd Rejonowy dla m.st.

Warszawy XII Wydział Gospodarczy Kapitał zakładowy 80.000,- zł.

REGON 011915685, NIP 526-11-62-572 Published articles represent the authors’ personal views only. The Editor and Publisher disclaim any responsibility or liability for their contents. Unso-licited material will not be returned. The editors reserve the right to edit the material for length and content. The editors accept no responsibility what-soever for the content of advertising material.

Reproduction of any material from this magazine requires prior written permission from the Publisher.

Editorial

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

MILESTONES IN THE HISTORY OF EUROPEAN CIVILISATION ALTERNATING PERIODS OF PROSPERITY AND CRISIS, AND THE BARELY MANAGEABLE PACE OF SCIENTIFIC AND TECHNOLOGICAL DEVELOPMENT, CONTRASTED WITH AN OFTEN EMBARRASSING HELPLESSNESS IN THE EFFORTS TO RESOLVE SOCIAL ISSUES AND CONFLICTS, SEEM TO BE THE KEY FACTORS BEHIND THE FRUSTRATION WHICH PERMEATES OUR EUROPEAN CHRISTIAN CIVILISATION. This probably stems from its set of specific characteristics, such as openness to the world, expansiveness, and the tendency to be judgemental, all of which boil down to the modest imperative: “Leave the world a little better than you found it”. But - and here's the rub - it is difficult to identify the relationship between individual actions and their global consequences. → 500 years ago, a socio-economic revolution began, putting European civilisation in a dominant position globally. This revolution was based on breakthroughs in technology and logistics, and the great geographical discoveries that followed. And while traditional trade and military technologies were enough to exploit India, the Indonesian Islands and China, in order to settle in America, European civilisation had to resort to an innovative use of the institution of...slavery – something which Europe seemed to have abandoned altogether as it embraced Christianity. Historians continue to argue over the authenticity of the 1517 papal bull, which allegedly allowed Christians to engage in slavery, provided that black workers from Africa were bought from local rulers or Islamic gangs. Disputes continue to this day over how many more victims were transported in horrific conditions across the Atlantic in addition to the known figure of 15 million slaves. It is a fact that between the 16th and 18th centuries all the “trading” nations of Europe grew rich from slavery. Even such eminent figures as Saint Thomas More, a moralist, and Adam Smith, the ideological father of capitalism, believed this was something Europeans should have been proud of and respected for. → 200 years ago, 16 European states met at the Congress of Vienna: two Emperors, four kings, and a host of princes and representatives of cities – a total of more than 200 delegations and about 100,000 guests who virtually ruled the world at the time. It took them two years to negotiate the boundaries and rules meant to make the world, shaken by the French Revolution and 20 years of the Napoleonic Wars, a stable and peaceful place “forever and ever”. The Congress was believed to have brought back the good old prewar order, the slave trade ban being the only novelty. In fact, however, this was no longer the old order.

Defeated on the battlefield, Bonaparte infected his enemies with the virus of civil and commercial codes. These codes became the legal framework for economic liberalism, which launched Europe into a new age of technology, helping it to spur the industrial revolution, introduce mass production, and generate mass unemployment, as well as to dominate the rest of the world and start two World Wars which cost the lives of tens of millions. Of course, nobody wanted things to go so terribly wrong. But they did. → Sixty years ago, six Western European countries founded in Rome the European Economic Community, establishing within their areas the free flow of goods, people, services and capital. In the following years, they set up common economic, financial, judicial and quasi-governmental institutions, and developed common economic and foreign policies. This qualitative transformation was defined in more detail 25 years ago by the Maastricht Treaty, under which 12 signatory states adopted the name the European Union, and abolished internal borders. The EU would expand to include 28 states and become the largest (500 million people), richest and economically most powerful region in the world. We are the first generation of Europeans which has not experienced the tragedy of war for more than 70 years, and which can shape its future under conditions of perpetual peace.

These three milestones in the history of European civilisation show our long road of trials and errors, of successes and failures.

But will there be a happy ending? It is true that the last strech of this road was marked by a preference for peaceful negotiation and win-win technologies over hawkishness and fanciful weaponry. This has worked for the last 70 years, but will it work in the next decades? How can we prevent Europe from being trampled on by newcomers and imploding under the pressure of internal conflicts and rivalries between countries, as well as between social groups?

Indeed, our world has within its reach proven tools which can be used to at least try to ensure global stability. And it continues to hone these tools. Let us forget about the failed League of Nations and abandon the unrealistic hopes associated with the UN, in favour of the more specialised agendas, such as the UNFCC, which deals with climate change. We are more interested, and rightly so, in the G-8 and G-20 meetings, and negotiations between regions. Also, there has been a growing interest in forums which provide politicians with content, including both international (such as Davos) and regional events. Poland's most popular events of this kind include the European Economic Congress in Katowice, and the Economic Forum in Krynica, which bring together experts from as many as 50 countries. These are truly the intellectual powerhouses of the 21st century.

7-8/2017 polish market

5

President

THREE SEAS SUMMIT IN WARSAW Twelve countries, three seas and one goal: the region's development.

A two-day summit of the Three Seas Initiative, the latest concept for boosting European unity within the EU, took place in early July in Warsaw, Donald Trump being its special guest. The Three Seas is a joint initiative of Poland and Croatia, intended to serve as a cooperation platform for the presidents of the twelve countries located between the Adriatic, Baltic and Black Seas, i.e. Austria, Bulgaria, Croatia, the Czech Republic, Estonia, Lithuania, Latvia, Poland, Romania, Slovakia, Slovenia and Hungary.

In the presence of the Polish and Croatian presidents, Andrzej Duda and Kolinda Grabar-Kitarović, businesses from Poland and Croatia,

operating in the logistics, rail and sea transport sector, signed the first contracts to put the Three Seas concept into practice.

“The growth of infrastructure in our part of Europe is to foster the harmonisation of the development of the Three Seas countries and bring us closer to the economic level of Western Europe,” stressed President Andrzej Duda.

“This is the actual objective we, the presidents of the 12 Three Seas and Central European countries, have set to achieve – to ensure that these contracts are concluded and implemented,” added the President.

“It is through the growth of infrastructure in our part of Europe that development should be more or less equal in all the Three Seas countries, as well as between us and Western Europe,” he concluded.

PRESIDENT OF SINGAPORE PAYS A VISIT TO POLAND “We want our economic cooperation to expand to more parts of the world, Singapore being one of them,” Andrzej Duda said on May 22 after a meeting with the President of Singapore, Tony Tan Keng Yam. The first ever visit to Poland by the Singaporean head of state marks an important contribution to the economic presence of Poland around the world.

As stressed by Andrzej Duda in his press release, this visit aligned with “the expansion of the Polish horizons of economic cooperation to successive parts of the world.”

As stated by Andrzej Duda: "To date, 80% of our economic exchange has been with the European Union. We want this business cooperation to grow broader. Today, Poland and Poland's local businesses are definitely in the position to grasp this opportunity.”

In his view, this demand is being satisfied by the activities of the Polish Investment & Trade Agency - which has opened an office in Singapore.

The president further said that “when it comes to economic exchange in Asia, Singapore is one of the most important partners of Poland. Next to China, India and Vietnam, Singapore is the country with which we want to intensify our economic cooperation.”

PRESIDENT ANDRZEJ DUDA RECEIVES THE CHAIRMAN OF THE KNESSET Andrzej Duda received on July 3 the Chairman of the Knesset, Mr Yuli Yoel Edelstein, who came to Warsaw at the invitation of the Speaker of the Lower House of the Polish Parliament, Marek Kuchciński.

The head of the Israeli Parliament also met with Stanisław Karczewski, the Speaker of the Senate. He laid a wreath under the plaque commemorating MPs who died in the 2010 Smoleńsk air crash and members of the pre-war Polish Parliament, who perished during World War II.

6 polish market

ANDRZEJ DUDA MEETS PRESIDENT OF AZERBAIJAN “Our economic relations with Azerbaijan have substantial potential that is yet to be tapped,” said President Andrzej Duda, opening the Polish-Azerbaijani Business Forum together with President Ilham Aliyev on his visit to Poland.

“First of all, cooperation between Poland and Azerbaijan offers great opportunities, given the role to be played by our countries in the process of restoration of the ‘Silk Road,’” stressed the Polish President. “In this regard, cooperation in the field of transport and Azerbaijan's being located on important transport routes, play a crucial role, so we should welcome the recent agreement on the project for the South-West Corridor, signed by the state railways from Poland, Azerbaijan and other Silk Road countries.”

Andrzej Duda noted that Poland must search for new target markets for its exports, as at the moment, a large portion of it has been concentrated in the EU countries. From this point of view, Azerbaijan “offers a promising outlook for Polish commodities, services and investments.” President Duda further stressed that these economic relations should follow the win-win principle and yield mutual benefits.

“Another promising area is cooperation in the high-tech, innovative solution, and IT sectors,” said Andrzej Duda. "We are also facing opportunities for cooperation in the agrifood, construction, pharmaceutical and cosmetic industries.”

Prime Minister

“Egypt is one of the most important economic partners in North Africa,” Prime Minister Beata Szydło said in Budapest on July 4 at a meeting of the prime ministers of Poland, Hungary, the Czech Republic and Slovakia with President of Egypt Abdel Fattah al-Sisi. It was the first meeting organized by the Hungarian presidency of the Visegrad Group (V4).

The main topic of the meeting was new security challenges – fight against terrorism and illegal migration. Relations between the European Union and Egypt, economic cooperation, and regional and energy security were also discussed during the meeting.

“We expressed our appreciation and support for Egypt’s stabilizing role in the Middle East and North Africa,” Prime Minister Beata Szydło said. “We are still concerned about the activity of the Islamic State and other terrorist groups in the Sinai Peninsula and Libya. We believe determined steps are needed against terrorist threats and brutal extremism, including counteracting illegal migration.”

“Egypt is an important partner when it comes to monitoring and controlling illegal migration. Our common challenge and responsibility is to put an end to human trafficking and smuggling,” she added. She also said that the V4 prime ministers appreciated Egypt’s efforts to curb the activity of crime groups and guarantee assistance to the refugees who need it.

POLAND AND SPAIN SPEAK WITH ONE VOICE ON SECURITY “In the face of contemporary threats, it is a priority to ensure security and the stabilization of the situation in the southern and eastern neighbourhood of the European Union,” Prime Minister Beata Szydło said on June 30 at the end of the 12th Polish-Spanish intergovernmental consultations in Warsaw. The consultations were led

by Prime Minister Szydło and her Spanish counterpart Mariano Rajoy.

A plenary session attended by Polish and Spanish ministers was also held, apart from the meeting between the two heads of government.

Participants in the consultations talked about issues concerning defence policy, infrastructure, agriculture and the environment, sport and education. Bilateral cooperation in these spheres is to be strengthened.

“We have seen with satisfaction a rise in economic relations between our countries,” Prime Minister Szydło said at a press conference. She added that investments between the two countries were running into billions.

MEETING BETWEEN POLISH AND SWEDISH PRIME MINISTERS “ S we d e n is a strategic partner for Poland and we want our relations to become increasingly close,” Prime Minister Beata Szydło said in Warsaw on June 20 after a meeting with her Swedish counterpart Stefan Löfven who was on a visit to Poland.

Beata Szydło stressed the meeting was an opportunity to touch upon many important matters of interest to both countries. “We talked about our bilateral relations, economic relations, our defence cooperation. We discussed a topic related to cooperation within the European Union,” she said. She stressed Sweden was a strategic partner for Poland in the region and in the European Union.

“Today’s talks confirmed that our closeness was not only due to our geographic location, but also a similar approach to many issues, similar challenges, common interests and a similar perception of the threats with which our region has been contending recently,” she said.

PRIME MINISTERS OF POLAND AND DENMARK SIGN A MEMORANDUM ON THE BALTIC PIPE “Poland and Denmark have intense economic relations, but we would like them to become even stronger,” Prime Minister Beata Szydło said in Copenhagen on June 9 at a joint briefing with Danish Prime Minister Lars Løkke Rasmussen.

The two heads of government signed a memorandum on the implementation of the Baltic Pipe project, which is of key importance for Poland’s energy security. The Baltic Pipe is a planned natural gas pipeline, which is to link the Polish gas transmission system with the Norwegian gas deposits on the North Sea shelf. The prime ministers stressed in the memorandum their support for the Baltic Pipe project, as the common goal was to ensure secure, sustainable, competitive and cheap energy supplies to European Union residents.

7-8/2017 polish market

Photos: premier.gov.pl

PRIME MINISTERS OF V4 COUNTRIES MEET PRESIDENT OF EGYPT

7

International Relations

DONALD TRUMP PAYS A VISIT TO POLAND

I

n early July, US President Donald Trump paid a twoday visit to Warsaw. On the first day, the US president and his wife were greeted at the airport by Minister of Foreign Affairs Witold Waszczykowski, head of the Polish President’s Office Krzysztof Szczerski and US Ambassador to Poland Paul Jones.

On the second day of the visit Polish President Andrzej Duda and Donald Trump met at Warsaw’s Royal Castle. The talks were held without translators and advisers. Among the topics was security and economic cooperation. After their face-to-face meeting, the presidents were joined by delegations of the two countries. The politicians also met with the media and then took part in the inauguration of the Three Seas Summit.

“During the plenary meeting we talked about the presence of American soldiers in Poland. We talked about strengthening the security of our part of Europe

8 polish market

and the eastern flank of NATO,” President Andrzej Duda said. “We discussed the security situation in this part of Europe in general. We also talked about the situation in Ukraine and the forthcoming Zapad-17 exercises, which will be held in Belarus.” He added contracts associated with the modernization of the Polish armed forces were one of the topics of the talks. President Duda stressed that the visit of the American president to Warsaw emphasized the high quality of the alliance between Poland and the United States and ties between the two nations.

“I have the feeling that the United States and President Donald Trump think very seriously about Poland’s security,” he said.

Donald Trump on his part said that America’s strong alliance with Poland and NATO remained a key element in preventing conflicts and making sure that a war between superpowers will never wreak havoc in Europe again.

International Relations TRANSATLANTIC SESSION OF THE THREE SEAS SUMMIT WITH THE PARTICIPATION OF DONALD TRUMP “Our cooperation is to give Europe three impulses: to modernize, integrate and unite,” President Andrzej Duda said at the inauguration of the Second Summit of the Three Seas Initiative.

President Donald Trump, a special guest of the Summit, assured those gathered that the United States stood shoulder to shoulder with the Three Seas countries.

Participants in the Three Seas Summit were greeted by President Andrzej Duda and his Croatian counterpart Kolinda Grabar-Kitarović, the joint hosts of the meeting.

SPEECH BY US PRESIDENT DONALD TRUMP ON KRASIŃSKICH SQUARE We’ve come to your nation to deliver a very important message: America loves Poland, and America loves the Polish people.

The Poles have not only greatly enriched this region, but Polish-Americans have also greatly enriched the United States, and I was truly proud to have their support in the 2016 election.

It is a profound honor to stand in this city, by this monument to the Warsaw Uprising, and to address the Polish nation that so many generations have dreamed of: a Poland that is safe, strong, and free.

President Duda and your wonderful First Lady, Agata, have welcomed us with the tremendous warmth and kindness for which Poland is known around the world. Thank you.

I sincere - I mean sincerely - thank both of them. And to Prime Minister Szydlo, a very special thanks also.

We are also pleased that former President Lech Walesa, so famous for leading the Solidarity Movement, has joined us today, also.

On behalf of all Americans, let me also thank the entire Polish people for the generosity you have shown in welcoming our soldiers to your country. These soldiers are not only brave defenders of freedom, but also symbols of America’s commitment to your security and your place in a strong and democratic Europe. […]

This is my first visit to Central Europe as President, and I am thrilled that it could be right here at this magnificent, beautiful piece of land. It is beautiful. Poland is the geographic heart of Europe, but more importantly, in the Polish people, we see the soul of Europe. Your nation is great because your spirit is great and your spirit is strong.

For two centuries, Poland suffered constant and brutal attacks. But while Poland

THE STORY OF POLAND IS THE STORY OF A PEOPLE WHO HAVE NEVER LOST HOPE, WHO HAVE NEVER BEEN BROKEN,

AND WHO HAVE NEVER, EVER FORGOTTEN WHO THEY ARE. could be invaded and occupied, and its borders even erased from the map, it could never be erased from history or from your hearts.

In those dark days, you have lost your land but you never lost your pride.

So it is with true admiration that I can say today, that from the farms and villages of your countryside to the cathedrals and squares of your great cities, Poland lives, Poland prospers, and Poland prevails.

Despite every effort to transform you, oppress you, or destroy you, you endured and overcame. You are the proud nation of Copernicus - think of that - Chopin, Saint John Paul II. Poland is a land of great heroes. And you are a people who know the true value of what you defend.

The triumph of the Polish spirit over centuries of hardship gives us all hope for a future in which good conquers evil, and peace achieves victory over war.

For Americans, Poland has been a symbol of hope since the beginning of our nation. Polish heroes and American patriots fought side by side in our War of Independence and in many wars that followed. Our soldiers still serve together today in Afghanistan and Iraq, combatting the enemies of all civilization.

For America’s part, we have never given up on freedom and independence as the right and destiny of the Polish people, and we never, ever will.

Our two countries share a special bond forged by unique histories and national characters. It’s a fellowship that exists only among people who have fought and bled and died for freedom.

The signs of this friendship stand in our nation’s capital. Just steps from the White House, we’ve raised statues of men with names like Pułaski and Kościuszko. The same is true in Warsaw, where street signs carry the name of George Washington, and a monument stands to one of the world’s greatest heroes, Ronald Reagan. And so I am here today not just to visit an old ally, but to hold it up as an example for others who seek freedom and who wish to summon the courage and the will to defend our civilization.

The story of Poland is the story of a people who have never lost hope, who have never been broken, and who have never, ever forgotten who they are.

This is a nation more than one thousand years old. Your borders were erased for more than a century and only restored just one century ago. In 1920, in the Miracle of Vistula, Poland stopped the Soviet army bent on European conquest. Then, 19 years later in 1939, you were invaded yet again, this time by Nazi Germany from the west and the Soviet Union from the east. That’s trouble. That’s tough.

Under a double occupation the Polish people endured evils beyond description: the Katyń forest massacre, the occupations, the Holocaust, the Warsaw Ghetto and the Warsaw Ghetto Uprising, the destruction of this beautiful capital city, and the deaths of nearly one in five Polish people. A vibrant Jewish population - the largest in Europe - was reduced to almost nothing after the Nazis systematically murdered millions of Poland’s Jewish citizens, along with countless others, during that brutal occupation.

In the summer of 1944, the Nazi and Soviet armies were preparing for a terrible and bloody battle right here in Warsaw. Amid that hell on earth, the citizens of Poland rose up to defend their homeland. I am deeply honored to be joined on stage today by veterans and heroes of the Warsaw Uprising.

What great spirit. We salute your noble sacrifice and we pledge to always remember your fight for Poland and for freedom.

This monument reminds us that more than 150,000 Poles died during that desperate struggle to overthrow oppression.

From the other side of the river, the Soviet armed forces stopped and waited. They watched as the Nazis ruthlessly destroyed the city, viciously murdering men, women, and children. They tried to destroy this nation forever by shattering its will to survive. But there is a courage and a strength deep in the Polish character that no one could destroy. The Polish martyr, Bishop Michał Kozal, said it well: “More horrifying than a defeat of arms is a collapse of the human spirit.”

7-8/2017 polish market

9

International Relations

Speech by US President Donald Trump on Krasińskich Square, monument to the Warsaw Uprising, Warsaw Through four decades of communist rule, Poland and the other captive nations of Europe endured a brutal campaign to demolish freedom, your faith, your laws, your history, your identity - indeed the very essence of your culture and your humanity. Yet, through it all, you never lost that spirit. Your oppressors tried to break you, but Poland could not be broken.

And when the day came on June 2, 1979, and one million Poles gathered around Victory Square for their very first mass with their Polish Pope, that day, every communist in Warsaw must have known that their oppressive system would soon come crashing down.

They must have known it at the exact moment during Pope John Paul II’s sermon when a million Polish men, women, and children suddenly raised their voices in a single prayer. A million Polish people did not ask for wealth. They did not ask for privilege. Instead, one million Poles sang three simple words: “We Want God.” In those words, the Polish people recalled the promise of a better future. They found new courage to face down their oppressors, and they found the words to declare that Poland would be Poland once again.

As I stand here today before this incredible crowd, this faithful nation, we can still hear those voices that echo through history. Their message is as true today as ever. The people of Poland, the people of America, and the people of Europe still cry out: “We want God.” Together, with Pope John Paul II, the Poles reasserted their identity as a nation devoted to God. And with that powerful declaration of who you are, you came to understand what to do and how to live. You stood in solidarity against oppression, against a lawless secret police, against a cruel and wicked system that impoverished

10 polish market

your cities and your souls. And you won. Poland prevailed. Poland will always prevail. […]

Today, the West is also confronted by the powers that seek to test our will, undermine our confidence, and challenge our interests. To meet new forms of aggression, including propaganda, financial crimes, and cyberwarfare, we must adapt our alliance to compete effectively in new ways and on all new battlefields.

We urge Russia to cease its destabilizing activities in Ukraine and elsewhere, and its support for hostile regimes - including Syria and Iran - and to instead join the community of responsible nations in our fight against common enemies and in defense of civilization itself.

Finally, on both sides of the Atlantic, our citizens are confronted by yet another danger - one firmly within our control. This danger is invisible to some but familiar to the Poles: the steady creep of government bureaucracy that drains the vitality and wealth of the people. The West became great not because of paperwork and regulations but because people were allowed to chase their dreams and pursue their destinies. […]

This great community of nations has something else in common: In every one of them, it is the people, not the powerful, who have always formed the foundation of freedom and the cornerstone of our defense. The people have been that foundation here in Poland - as they were right here in Warsaw - and they were the foundation from the very, very beginning in America.

Our citizens did not win freedom together, did not survive horrors together, did not face down evil together, only to lose our freedom

to a lack of pride and confidence in our values. We did not and we will not. We will never back down.

As long as we know our history, we will know how to build our future. Americans know that a strong alliance of free, sovereign and independent nations is the best defense for our freedoms and for our interests. That is why my administration has demanded that all members of NATO finally meet their full and fair financial obligation.

As a result of this insistence, billions of dollars more have begun to pour into NATO. In fact, people are shocked. But billions and billions of dollars more are coming in from countries that, in my opinion, would not have been paying so quickly.

To those who would criticize our tough stance, I would point out that the United States has demonstrated not merely with words but with its actions that we stand firmly behind Article 5, the mutual defense commitment.

Words are easy, but actions are what matters.

And for its own protection - and you know this, everybody knows this, everybody has to know this - Europe must do more. Europe must demonstrate that it believes in its future by investing its money to secure that future.

That is why we applaud Poland for its decision to move forward this week on acquiring from the United States the battle-tested Patriot air and missile defense system - the best anywhere in the world. That is also why we salute the Polish people for being one of the NATO countries that has actually achieved the benchmark for investment in our common defense.

Thank you. Thank you, Poland. I must tell you, the example you set is truly magnificent, and we applaud Poland. Thank you. […]

Our own fight for the West does not begin on the battlefield - it begins with our minds, our wills, and our souls. Today, the ties that unite our civilization are no less vital, and demand no less defense, than that bare shred of land on which the hope of Poland once totally rested. Our freedom, our civilization, and our survival depend on these bonds of history, culture, and memory.

And today as ever, Poland is in our heart, and its people are in that fight. Just as Poland could not be broken, I declare today for the world to hear that the West will never, ever be broken. Our values will prevail. Our people will thrive. And our civilization will triumph.

So, together, let us all fight like the Poles - for family, for freedom, for country, and for God. Thank you. God Bless You. God bless the Polish people. God bless our allies. And God bless the United States of America.

Thank you. God bless you. Thank you very much.

•

THE NATO SUMMIT IN BRUSSELS HAS AFFIRMED LAST

International Relations

YEAR’S RESOLUTIONS

L

ast year’s NATO Summit in Warsaw was regarded as a sign of a revival of the North Atlantic Treaty. The summit organised at the National Stadium in Warsaw gathered representatives of all NATO member countries.

There, behind closed doors, decisions were made to determine the directions of NATO’s operations in the immediate future. The Heads of State discussed the strengthening of the eastern wing of NATO by deploying four battalions in the Baltic States and Poland, the issue of ISIS threats, the Middle East, North Africa and the conflict in Ukraine. The discussions also featured the issues of the aggressive behaviour of the Russian Federation, Brexit and its potential consequences for stability in Europe. The commentators concluded that the Summit generated essential but predictable decisions. Poland was represented at the NATO Summit in Warsaw by President of Poland Andrzej Duda. One of the most important NATO members, the USA, was represented by the then President Barack Obama, who said at the Summit: “Here in Warsaw, we haven’t simply reaffirmed our enduring Article 5 obligations to our common security; we’re moving forward with the most significant reinforcement of our collective defense any time since the Cold War. First, we’re strengthening NATO’s defense and deterrence posture. Building on our European Reassurance Initiative - which has already increased readiness, from the Baltics to the Black Sea - our Alliance will enhance our forward presence on our eastern flank. As I announced yesterday, the United States will be the lead nation here in Poland, deploying a battalion of American soldiers.”

This year’s NATO Summit in Brussels was attended by the new US President, Donald Trump, who during his presidential campaign had voiced very sceptical opinions on the Treaty, some of which undermined the validity of its existence. After becoming President, Trump has adopted a more conservative approach, confirmed by his presence at the summit in Brussels.

Was the Summit a breakthrough?

During the meeting of the leaders of the NATO member countries, the implementation of the resolutions made during the 2016 Summit on building the security of Central and Eastern Europe was reaffirmed. Other issues included combatting terrorism and increasing expenditures on defence.

President of the Republic of Poland Andrzej Duda spoke of the plans to raise expenditures on defence to 2.2% of GDP by 2020 and 2.5% of GDP by 2030. President Duda said that Poland was ready to cooperate with other NATO member countries on implementing anti-terrorist measures. He emphasised that Poland was willing to increase its presence in Iraq and to “support armed forces equipment overhauls, for instance in Iraq.”

“We are also willing to consider the presence, or increasing the presence, of our armed forces in the Middle East. It is good to hear that the Treaty speaks with one voice, also in terms of relations with Russia and on the issue of Ukraine,” said the President, but no specific figures were provided at this point.

NATO summit in Brussels

President Duda talked to NATO Secretary General Jens Stoltenberg

He emphasised that dialogue was essential, but it had to be responsible and bring results. “It is expected that Russia will cease its aggressive policy – these expectations are absolutely clear and unanimous,” he added.

During the NATO meeting President Andrzej Duda conducted bilateral talks with the Prime Minister of the United Kingdom, Theresa May, the President of France, Emmanuel Macron, and the President of Romania, Klaus Iohannis.

• Source: PAP, own sources.

7-8/2017 polish market

11

Our Guest

POLISH MEDICINE HAS GREAT POTENTIAL STANISŁAW KARCZEWSKI, Speaker of the Polish Senate, discusses ways of supporting innovation and the potential of Polish medicine.

I

nnovation is a triumph of western civilisation, based on the empirical verification of facts, optimism in research and a conviction that Man is capable of overcoming limitations imposed by nature.

In 1905 British zoologist Ray Lankester called Man nature’s rebel. "When nature orders him to perish, his response is that he shall live", he wrote. In medicine, this will to fight against constraints has contributed to a phenomenally longer life expectancy. Innovation in medicine has brought about incredible progress. It has helped us live longer lives and to fall ill less often. I am a medical doctor and I know perfectly well how important innovation in medicine is. That is why, in conjunction with the medical community, I have organised a series of conferences in the Senate devoted to innovation in medicine. The conclusion of those conferences is that in Poland we use innovative methods developed in foreign countries, but we are trying to introduce and support those innovations that originate in Poland. After some time, modern technologies become standard in the treatment of patients.

Now we are able to cure diseases which we were unable to before. Patients who medicine once could do nothing for, can now live longer. Modern therapeutic methods may be costly but in the long run, the results do justify the outlays. It is worth investing in them, if only because they offer a high success rate. But they also cause fewer side-effects.

The past 150 years have seen an amazing development of medicine. This century is opening up entirely new possibilities. Innovation and progress in all spheres of knowledge contribute to progress in medicine. Achievements in physics, chemistry, IT, technology and nanotechnology have opened up fresh horizons for medicine.

The main directions of development in medicine are linked to the introduction of information and communications technologies, the use of robots and computers in diagnostics and during operations, the development of nanotechnology, the use of stem cells and tissue cloning.

12 polish market

Gene therapies can be expected to be developed, along with a wider use of genetic engineering.

Thanks to telemedicine, it is possible to transmit medical data and to remotely monitor patients with therapeutic implants. Telemedicine enables prophylactics, diagnostics, therapy, rehabilitation and prevention. It also makes it possible for doctors to offer medical services from a distance with the use of electronic communication means and mobile devices, not just in terms of consultation, but also remote surgical procedures (telesurgery).

Transplant surgery is becoming one of the crucial areas of surgery. It is possible to develop tissue engineering, which can provide body organs grown out of cell samples thanks to the joint work of biotechnologists and geneticists.

It is possible to develop nanomedicine and nanosurgery.

These directions of the development of medicine in the 21st century define the goals of the Polish state in terms of innovation support in medicine. Poland must make use of the attainments of international medicine. We, ourselves, must be creative, too, to make a contribution to its development. That is exactly what is happening right now, the best proof of which is cardiac surgery, where Poland is one of the world leaders.

That is why our aim is to make science one of Poland’s brands, and to introduce its achievements in all spheres of life. Modern medical technologies are extremely costly. It is thus vital to forge close links between the academic world and industry. Based on the Law and Justice (ruling party - ed.) programme, the Polish government has adopted and launched the implementation of the Strategy for Responsible Development. One of the keys to Poland’s more dynamic development will be innovation. Building an innovative economy is to be achieved through establishing links between science and business. Universities of technology should work toward commercializing the results of research.

One of the five pillars of deputy Prime Minister Morawiecki’s plan is the development of

innovative companies and concentration of resources in industries where Poland can achieve a competitive advantage. Among development programmes listed in the Strategy is the R&D programme of the Kazimierz Funk Biotechnology Development Centre. Its aim is to back the development of Polish companies in the biopharmaceutical sector and facilitate their entry onto global markets. Another programme covered by the strategy is the development of Polish medical products. It provides for the commercialisation – with the backing of public institutions – of a dozen or so medical products with export potential in order to reverse the negative balance of trade in the pharmaceutical sector and to ensure that Polish citizens continue to be well supplied with pharmaceuticals.

Polish scientists have a tremendous potential, also in the field of medicine. Proof of this are achievements which were widely reported all over the world last year. May I mention but the development by University of Warsaw scientists of a method of extending the life and boosting the productivity of mRNA, which consists of tiny particles that could bring about a breakthrough in the development of cancer vaccines. Licences for this technology have been purchased by two international pharmaceutical companies for a sum of USD 610 million. This has been the highest valued deal in the commercialisation of Polish scientific developments to date.

At a world fair of inventions in Brussels in 2016, out of 50 Polish innovative solutions and designs, 24 were awarded gold medals and 3 silver medals. Among the award-winning Polish inventions were innovative fluorescent markers which enable accurate spotting of malignant lung tumours. The method consists in introducing tiny markers into the organism which penetrate solely the affected areas. Another awardwinning Polish invention is a mask which makes it easier to treat snoring.

Polish medicine has great potential. We already have world-class achievements and we can have many more of them. It is up to state policies to release this potential.

•

Our Guest

THE GOAL IS TO ENABLE PURSUING PRO-HEALTH PUBLIC POLICY KONSTANTY RADZIWIŁŁ, Minister of Health

I

n autumn 2016, we took the first steps in the process of implementing the National Health Programme for the years 2016-2020. The start of the National Health Programme was a watershed moment in the approach to public health in our country. One should remember, however, what a difficult and long process it was to have this programme adopted, a programme which is really important for extending and improving the healthy lives of all Polish people.

Making a catalogue of public health tasks, entities taking part in their implementation and rules to finance them, and identifying the areas which require special attention will contribute to improving the health situation in Poland.

We will gradually bring our individual health indicators closer to those already achieved by other EU member states.

The difficult legislative process and stormy discussions connected with arrangements and consultations about the law on public health indicated that defining public health priorities was of utmost importance for all the stakeholders.

This gives me even more satisfaction to speak about the National Health Programme as a document in which the division of public authorities’ responsibility for individual public health tasks has been defined in a crystal clear manner. As many as 14 ministers, many units subordinated to and supervised by the health department, local government units and health-care institutions are responsible for carrying out the National Health Programme. A complementary approach to health care, identifying risk and protection factors, and educating and providing information in this respect are only possible if we combine the forces of the government and institutions specialized in areas useful from the point of view of public health.

The National Health Programme’s measures are focused on six points, which are the operational goals of the programme.

The main areas of interest in this edition of the programme are eating habits, physical activity, the problem of addictions, including behavioural ones, mental health, environmental influence, healthy and active aging, and reproductive health. The Ministry of Health coordinates all these areas.

Since the beginning of the work on the National Health Programme it has been important for its authors to rely on a thorough evaluation and examination of the implemented tasks. It is equally important that public health interventions should be based on the current state of scientific knowledge. As funding for regular epidemiological research into disease incidence and risk factors has been insufficient, financial means have been secured under the National Health Programme to be spent on scientific research activity and other measures.

The goal is to enable pursuing pro-health public policy based on objective and reliable data.

The intensity of the work aimed to implement the National Health Programme is growing steadily. Many of the agreements signed in 2016 are being continued. And agreements are being signed with the entities selected to carry out the programme in this year’s contests. The funding indicated by the National Health Programme will not exceed PLN140 million annually.

But these are not the only financial resources contributing to improving public health in Poland. An overwhelming majority of the activities resulting from the programme is carried out by the executing entities as part of their own tasks. This is what gives us hope that in the documents of strategic importance for public health we have managed to identify and indicate institutions which may contribute to improving the health situation of Polish people.

• 7-8/2017 polish market

13

Our Guest

POLAND COMMITTEDANDLOYAL MEMBEROFNATO ANTONI MACIEREWICZ, Minister of National Defence

A

strong manifestation of transatlantic unity is, as already mentioned, the reinforced and exposed presence of NATO on its Eastern Flank. It is important that its mandate be extended as far as possible into the future, so that any potential aggressors would know that this is by no means a short-term project. We also highly appreciate the US’s bilateral involvement in the form of the ABCT armoured combat brigade currently garrisoned in Poland, and present on a rotational basis in other Eastern Flank countries. This type of long-term and permanent presence may well free the CEE region and the whole European continent from the vicious circle of warfare and genocide into which it has fallen in the past.

Notably, both these forms of involvement have followed from the decisions taken at last year's NATO Summit in Warsaw. Their successful implementation over a span of just one year shows best that standing united we can really achieve a lot. I also think that it would be useful to simplify the terminology and conclude that both the reinforced and exposed presence on the Eastern Flank, and the adjusted exposed presence in its southern region, as exemplified, for instance, by the multinational division in Romania, are essentially one and the same thing. We should start referring to them with a single term.

Also important in a broader regional context is a change to the axis along which politics takes place. Thinking in terms of “East and West” is not only what our antagonists gladly welcome, but fails to capture the specific nature of East-Central Europe. The Three Seas initiative, built around the earlier “Intermarium” doctrine, puts forward a completely different perspective – a North-South axis. In this regard, our cultural, historic, economic and strategic bonds can play a highly positive role when it comes to the stabilisation of the whole of Eurasia. A bloc of countries, from Scandinavia to the Balkans, and even to Turkey (despite

14 polish market

the rather complex situation there), has substantial potential and vast experience in bilateral and multilateral partnerships. In my opinion, cooperation between the South and the North should serve as a kind of geopolitical safety net for cooperation between the West and the East.

The Three Seas initiative is an integrative action through which integration within the EU can be fully achieved. What is disintegrative and likely to put Europe at risk is the talk of Europe of two speeds in the field of security, and the attempts at breaking transatlantic ties. Without the United States, the only country able to effectively oppose Russia’s nuclear potential, no defence for Europe will be possible.

Let me stress at this point that Poland does not merely expect support in tackling these challenges. We are a committed and loyal member of NATO. Our troops are garrisoned in Latvia and Romania, the Polish Air Force regularly participates in Air Policing missions in the skies of the Baltic States and Romania, and the Navy is engaged in missions in the Mediterranean Sea. We are proactively fighting terrorism in Syria, Iraq and Afghanistan. Not only do we meet, and even exceed, the NATO budgeting criteria, but are also about to increase military expenditure to 2.5% of GDP. We have created the Territorial Defence Force, a new type of military, and will be doubling our Armed Forces in number. In addition to Article 5 of the North Atlantic Treaty, we bear in mind the criteria set out in Article 3, obliging us to develop capacity to resist armed attack.

Last year's NATO Summit, however, went much further than simply addressing ordinary military threats. Some of these I have already mentioned. We are well aware of the fierce combat currently taking place in the sphere of information and in cyberspace. It was only a few weeks ago that we witnessed a virus called Petya wreaking havoc on the Ukrainian economy. What is worse, that was probably only a test, and we are yet to see the opponents’ true

potential in this respect. Every day brings fake or fabricated news which impact on our perception of the world and the decisions we take.

Even though the term “disinformation” has been around for quite some time, today, in this era of mass news hubs, it has gained more importance than ever. We must remain vigilant and keep on improving our skills, communicate our intentions and policies in a coherent and thoughtful manner, and never allow lies to plague our minds and souls.

To conclude, I would like once again to refer to yesterday's address by President Trump.

The most important things will be our will to fight and the belief that our freedom, and the values which we cherish, are worth fighting for to the end. Experience shows that this is common knowledge in Poland, and in many other Central and Eastern European countries, which suffered so much from brutal totalitarian regimes which had emerged in Russia and Germany. We would very much like, however, this belief to be shared by our western allies. If we do not stand up to the Axis of Evil which has challenged the West, we will perish. It is only by preserving our culture and moral values rooted in the Old and New Testament that we can survive, because confrontation, just as in the past, has a moral, cultural and ideological dimension.

During World War II, Winston Churchill objected to the Minister of War’s trying to cut funding for culture to support the War effort, asking rhetorically “Then what are we fighting for?” Today we must ask ourselves the same question. And, as soon as we realise how priceless our identity is, we will find strength and motivation to defend our civilisation, as Churchill said, at all costs, never giving up. • A message from Antoni Macierewicz, Minister of National Defence, to participants in the Global Forum in Warsaw, 7 July 2017.

Source: www.mon.gov.pl

Our Guest

WE BUILD AWARENESS AMONG EMPLOYERS AND EMPLOYEES STANISŁAW SZWED, Secretary of State of the Ministy of Family, Labour and Social Policy, talks to “Polish Market”.

The economic activity of a country’s population is a key factor behind its economic development. According to the report “Women’s Labour and Entrepreneurship,” around 61% of Polish women are economically active.

This means that four in 10 women in Poland neither work nor actively look for a job. Should we seek to make all women economically active?

One of the priorities of this government is to give people the right to choose. This applies both to using the opportunity to retire after reaching the statutory age and to women’s decisions to withdraw temporarily or permanently from the labour market because of their parental role, for instance. It is important, however, that this choice should be based on rational premises. And this means the need to be aware of the short-term and long-term consequences of the decision.

In the case of young women who have fully devoted themselves to their role as mothers, a long period outside the labour market means that they will be less useful for employers when they decide to return. When it comes to PM

women of pensionable age, it is of key importance to make them aware that every month when they remain on the labour market and pay social insurance contributions raises their future old-age pension.

If labour conditions are satisfactory and conducive to combining work and family duties there will be no need to keep women on the labour market by force because conscious and reasonable women will themselves decide to do so.

We should spare no effort to ensure that women are economically active. But we should also remember about women’s role as mothers and make the labour market more flexible by, for example, promoting flexible work time and institutional support for child care. It is very important in reconciling work and family life.

How does women’s relatively low economic activity impact on the labour market?

In a situation of growing demand for labour, the total number of people in work according to Labour Force Survey (BAEL) data and the number of people employed in the PM

7-8/2017 polish market

15

Our Guest

business sector is now at a record high level. Measures aimed to exploit all unutilized labour resources are a necessary condition for the continuation of a rapid economic growth.

A rise in Polish families’ disposable income due to social transfers and the child benefit - in particular, a rise in women’s economic security - forces employers to change their human resources policy. It is a chance of raising the quality of jobs. And in the long run it should result in increased labour efficiency and competitiveness of businesses. Consequently, one should expect that the ongoing changes will lead to an improvement in the quality of life of Polish families and poverty reduction, which is already taking place. But we can also expect a favourable impact on economic growth.

The objective of legislative measures related to the labour market and many other measures taken in keeping with the Strategy for Responsible Development is to stimulate the creation of high-quality jobs. And there should be no compromise between the number of jobs and their quality - we need both.

It is estimated that the number of Polish people of working age has decreased by 1 million. To reverse these unfavourable trends, the government encourages families to have children. But there are also voices that the Family 500+ programme encourages women to be economically inactive.

Claims that women become economically inactive because of the Family 500+ programme are not confirmed by hard facts. Research conducted by the Ministry of Family, Labour and Social Policy shows that the programme has not contributed in general to Polish women’s decisions to leave the labour market. Although such instances could have happened, one should remember that giving up work is a matter of individual people’s behaviour and decisions resulting from various factors. When taking such decisions, families consider the expected gains and losses.

The recent data from the Labour Force Survey (data for the first quarter of 2017) show that since the launch of the Family 500+ programme to the end of the period chosen for the research, that is between the second quarter of 2016 and the first quarter of 2017, the economic activity rate for people aged over 15 stayed at a similar level of 56.2%. In this period, the number of economically active people went down by around 40,000. However, the number of economically active people has been on the decrease since the beginning of 2015.

When analysing reasons behind economic inactivity, one can see a rise in the inactivity rate due to family and household duties. This trend has been witnessed since the first quarter of 2014. In 2015, the increase accelerated significantly and then continued in 2016. However, these changes should not be linked with the child benefit because the rise in inactivity has also been recorded for childless and elderly women.

Since the launch of the programme, that is since the second quarter of 2016, the number of people saying they are inactive because they have to take care of children or other persons has grown by 37,000. The rise has been noted mainly for families with two or more children aged under 17.

PM

PM

16 polish market

One of the key factors behind women’s economic activity is the wage index. Do we indeed still have to do with

wage discrimination? Or perhaps the problem is that women underestimate their skills and competencies?

Statistically, a woman in the same or comparable job as man earns less. The problem, called the pay gap, is present to a different extent in every country. But according to Eurostat’s data for 2014, Poland has one of the lowest pay gaps in the European Union, with the difference between men’s and women’s wages being at 7.7% while the EU average is 16.7%.

The Ministry has prepared the computer programme “Wage Equality,” which makes it possible to easily estimate differences in employees’ wages depending on their gender, age, education and other selected traits. The application is available free of charge on the Ministry’s website. It is designed to help all those who provide employment in shaping a conscious wage policy, which does not discriminate against workers on gender grounds.

Apart from being a legal obligation for every employer, the principle of equal pay for the same work or work of the same value also brings about many benefits – it means creating attractive jobs, which attract the most talented people and give motivation to existing employees. This, in turn, makes the employer more competitive, which is particularly important now when we have an employee’s market.

Women often say that working time flexibility is what helps most in reconciling work and parental duties. Parttime work is not as popular in Poland as in the West for the simple reason: Polish women fear losing their jobs.

And those who have decided to switch from full-time to part-time work stress that in practice the number of hours they work has not gone down. Does the Ministry’s project “Family and Work – It Pays” take account of this kind of situations?

The main goal of the project is to popularize ways of reconciling work and private life among Polish employers and employees. Polish legal solutions in this respect are diverse and provide many opportunities. However, the data that we have leave no doubt – Polish employers and employees use the available solutions only to a small extent.

We see the need to translate work-life balance mechanisms into a practical language, accessible to both employers and employees, to show what solutions are appropriate for employers of different sizes, and fields and forms of activity, how to introduce them, what costs are involved and, finally, what benefits we can count on.

This is how the idea has emerged to gather in one place everything that relates to work-life balance in the form of the internet platform www.rodzinaipraca.gov.pl. It is a practical and comprehensive solution, which provides, in an easy and accessible way, indispensable information about optimal mechanisms for reconciling work and private roles.

The use of these mechanisms produces such benefits for the employer as greater satisfaction of the employees from their work, higher loyalty and commitment to their duties, higher productivity, better work quality and lower rates of absence. A company using work-life balance solutions builds in this way a competitive edge on the market, has a good reputation and lower rates of staff turnover, which also contributes to cost reductions.

• PM

Our Guest

Photo: Procesy Inwestycyjne

WE NEED A COMPREHENSIVE N

owadays, the energy sector is a broad mixture of policies and financial outlays. However, we have come a long way – the energy industry accounts for less than 10% of Poland's total pollution. Having familiarised ourselves with the scientific analyses referring to the urgent need to stop all climate changes, we may draw a conclusion that new coal-fired power plants should never be established. Scientists investigate the phenomenon of emissions, but they are hardly concerned about whom and to what extent we should blame. It seems that the discussions conducted on various forums should, therefore, outline a real picture and be moderated by experienced people. Nowadays, in both the energy and mining industry, the problem of methane discharge appears important. Unfortunately, the level of methane released to the atmosphere makes this gas extremely challenging to be effectively used for economic reasons. We are, hence, searching for other ways to obtain this gas, with the grinding of coal mine tailings being one of the alternatives. However, financial challenges connected with methane treatment seem to pose the major difficulty.

I have recently come across a statement implying that we could achieve better results if we changed the cattle breeding structure than if we modernised power plants. The fact is that cattle generate large amounts of methane, as a result of which modernisation in this sector is likely to bear more fruit than any further energy sector changes.

The issue of nuclear energy also appears recurrent. Having examined the previously estimated costs and the prevailing approach, we have found that the expenses were rather exorbitant. The approach to the subject matter should also be subject to review. We intend to reduce the implementation period of this undertaking to make it more foreseeable and to avoid any factors that may potentially cause delays.

Among the potential cost-generating factors, three aspects are especially worth noting, i.e. technologies whose prices tend to change in line with the international market trends, the costs of building a power plant in view of the potential delays, and capital-related costs. If we are to use the financial resources for which Poland is considered a high-risk country,

APPROACH

ANDRZEJ J. PIOTROWSKI, Undersecretary of State, Ministry of Energy

this cost will certainly be very considerable. It should be borne in mind that energy sector investments may not be viewed as risky, as the demand for electricity can be taken for granted, both in the current and future perspective.

These three elements give rise to another important question ‒ do we really have a choice? If we look at the emissionrelated requirements and consider alternative solutions, we can easily note that the assumed carbon smokestack emissions could hardly be achieved with the currently available technologies. However, when looking at the average emission, a conclusion can be drawn that the low-emission nuclear energy may let the energy sector catch their breath and comply with the required limits. It should, nonetheless, be remembered that the world of politics also comes into play, which is not always driven by the cause-and-effect reasoning. […]

The renewable energy area may be extremely interesting in the context of distributed energy, as it could let us improve an array of living aspects in its application area. For instance, it would foster the local balance of the energy supply and demand, as well as relieve the energy system from the problems which may sometimes be perceived mistakenly in the local perspective. Every now and then, long-term breaks in energy supply may occur locally for various reasons. This problem could be eliminated by utilising distributed energy schemes, also with the use of renewable energy sources.

This would, nonetheless, call for a comprehensive approach, including the combination of various types of energy sources, such as biogas plants, photovoltaics or wind farms. Other important issues would also have to be considered, such as the use of agricultural or municipal waste. When adequately sorted, in line with the EU standards, around 30% of such waste could be used for energy-related purposes. The same refers to the furniture sector, which is one of the most recognised and rapidly developing sectors in the Polish economy. It also generates large quantities of wood waste, which could be used as biomass. By establishing inter-sector cooperation, the assumed emission standards could be achieved by 2030.

•

Statement at the 13th NEUF Conference

7-8/2017 polish market

17

Energy

TO BE ONE OF THE GLOBAL LEADERS RADOSŁAW DOMAGALSKI-ŁABĘDZKI, President of the Management Board of KGHM Polska Miedź S.A., talks to "Polish Market".

18 polish market

Energy Twenty years ago, in July 1997, KGHM made its debut on the Warsaw Stock Exchange. How do you assess the past two decades? In what way have you been able to develop and diversify thanks to your presence on the stock exchange?

We have enjoyed two decades of development, and we keep developing further. Let me quote a few figures to illustrate the way in which KGHM Group has changed over the years. We have scored a five-fold growth of sales revenue. The value of our assets has grown over seven times, and net profit over eight times. Above all, we have not disappointed our shareholders.

We have paid out PLN 24 billion in dividend. We have developed excellent standards of communication with the capital market. We keep adjusting to changing legal regulations and the needs of capital market players.

We are currently a global player in the mining industry.

However, above all, we are a company which is important for the Polish economy and a source of economic development of the Lower Silesia region. The goal of KGHM is first of all to offer value to its shareholders through stable and balanced growth.

And that’s exactly what we are doing.

PM

In May you visited Beijing. Does it mean that the Chinese market is still attractive for KGHM? China remains one of the world’s main business engines.

It’s a country undergoing dynamic urban development. Its annual GDP growth amounts to nearly 7%. KGHM attaches great importance to trade with China. Our products account for nearly half of the value of Poland’s exports to China. For twenty years we have worked together with China Minmetals Corporation, which purchases our copper cathodes. We wish to expand this co-operation into other areas. In these terms we can see great potential among KGHM Group companies.

During the Silk Route Forum in Beijing, PeBeKa, one of the companies within KGHM Group, signed a letter of intent with a Chinese company which is part of China Minmetals Corporation. This opens up fresh avenues for Polish-Chinese co-operation in the implementation of construction projects in Poland, China and other countries. PeBeKa, as well as other KGHM Group companies, offer a rich package of products and services to Chinese industry. They are open to new platforms of business co-operation. This is where the future of our companies lies.

PM

Apart from Poland, KGHM is also present in Canada, the US and Chile. Are you thinking of new destinations on the world map?

We have assets on three continents, also in the planning stage, for instance the very promising Victoria nickel and copper deposits in Canada, which are still in the development stage. We are considering various scenarios. Once our analysies are completed we will select the optimum variant.

Of course, as a global company, we are open to other attractive projects. But right now, our priority is the development of Polish assets, which ensure the financial stability of the entire KGHM Group and generate the highest profits for the company and shareholders.

PM

You have experience of working in the business environment and you also have experience as an academic. Would you agree that the transfer of the results of research developed at universities and research institutes into business is now a necessity?

Of course, without new technologies, there can be no progress. Searching for and implementing innovative solutions PM

THE GOAL OF KGHM IS FIRST OF ALL TO OFFER VALUE TO ITS SHAREHOLDERS THROUGH STABLE AND BALANCED GROWTH. AND THAT’S EXACTLY WHAT WE ARE DOING. is our top priority. We are focusing in particular on improving productivity, cost efficiency, and safety conditions for our workers. Especially vital for us are innovative technological solutions in copper ore extraction and enrichment.

We work closely with representatives of the world of science. We are currently implementing a long-term CuBR programme together with the National Centre for Research and Development. It consists in providing support to scientific research projects and development work for the non-ferrous metals industry. We expect the solutions developed as part of the programme to be successfully implemented. We can also observe great potential in young Polish entrepreneurs. By 2018 we intend to implement five innovative solutions offered by Polish technology start-ups as part of a government programme meant to boost their activities.

Last December you launched another production line in Głogów. Why was this event so important in the company’s history and what are its main features in terms of modern eco-friendly technologies?

The transition from shaft furnace to flash furnace technology marks a giant leap forward in terms of our metallurgical capabilities. It is one of the most innovative Polish projects to date, both in terms of technological solutions that were applied and the number of installations specially designed for this project. The installation’s start-up is now underway. The new flash furnance is to ensure greater efficiency and will enable us to meet strict environmental standards. Its servicing is also more automated which translates into better health and safety conditions.

PM

What fresh challenges lie ahead of KGHM? According to estimates, Polish deposits allow extraction to continue for at least forty years.

KGHM must keep up with the market and constantly perfect its operations to maintain its position as one of the global leaders.

To this end, we are taking steps to streamline the management of our Corporate Group. We are introducing an integrated management system in areas such as energy efficiency, purchasing policy, environmental protection and health and safety. In terms of our business activities, we must first build the value of assets we already have. Within the next few years we intend to invest PLN 9 billion in Polish assets. We are also taking steps to develop our foreign assets, in particular by streamlining management and technological processes in the Sierra Gorda project in Chile. We want KGHM to be the leader in innovation and development.

• PM

7-8/2017 polish market

19

Culture

NEUF 2017

THE POLISH ENERGY MIX VERSUS GLOBAL TRENDS AND DOMESTIC NEEDS

New Energy User Friendly – this was the slogan of the 13th NEUF Conference, held on 4 July in Dom Technika, the headquarters of the NOT Engineering Federation. The main subject of the discussions was the Polish energy mix in the context of international trends in the power industry, and the needs and capabilities of the Polish energy sector.

Opening the conference, Deputy Minister of Energy Andrzej Piotrowski implied that coal will remain the main element in the mix, but it seems that the Ministry is taking a bolder approach to nuclear power engineering.

T

he debate on the energy mix began with an attempt to forecast the components and proportions of the mix by 2050.

Stanisław Tokarski, from the Centre of Energy of the AGH University of Science and Technology, in his reply to the above question, stated that “forecasting the energy mix by 2050 is currently an abstract task.” He recalled last year’s analysis by the European Commission which had prepared for the EU a simulation of primary energy use in 2050. He emphasised that the results of the simulation diverged from the EU's ambitions in the context of renewable energy use. “It is assumed that approx. half of the energy used by EU residents will be from renewable sources, and the other half from sources based on fossil fuels. This means that the process of transforming the energy mix will be of an evolutionary nature,” he added.

Zbigniew Szpak, President of the Management Board of the Polish National Energy Conservation Agency, referred to the energy mix model in the context of energy efficiency and the current regulations. “The currently binding regulations were modified in 2016, and I must admit that the change was beneficial.

A number of elements which prevented the development of energy efficiency in the previous version of the Act were eliminated. The main advantage of introducing these regulations is to change the awareness of administrative

20 polish market

authorities and entrepreneurs. This is especially important due to the fact that the Polish energy efficiency system is based on the reverse Robin Hood principle – large companies earn more money because of the permanent subsidy to each megawatt-hour, which is approx. PLN2 for each customer.”

Wojciech Myślecki, PhD, representing the Secretariat of the Mine and Energy Workers' Union of NSZZ “Solidarność”, commented on the place of coal in the energy mix for the upcoming years. “The issue of coal is undoubtedly a fundamental one. The Polish energy sector begins with coal, and without solving the related problems it is difficult to continue discussions on the Polish power industry and the energy mix. Unfortunately, currently there is no serious public debate on this energy source. In my opinion, the Polish coal sector is undergoing a structural crisis, which cannot be solved with small steps, but requires a global solution. This is not the local problem of Silesia, but a national problem.” Wojciech Myślecki also commented on the forecasts for the energy mix in the 2030 perspective, “This is a perspective which can be precisely specified today. It is known that approx. 40% of the produced energy will come from hard coal, and 23-26% from lignite. […] Polish coal will remain in the mix mainly because we will not have another safe alternative in the Polish power industry.”

Tomasz Podgajniak, Deputy President of the Management Board of PIGEOR, expressed his criticism of the current situation on the energy market. “Currently the share of private companies is close to zero. The State is pushing us away from the market and no chances for development can be observed. New projects involving non-public funds should not be expected until we receive rational guarantees.

I am not referring to support systems, as they lead to irrational prices of technology. […] Poland’s disadvantage lies in its reactive instead of proactive approach. We are thinking about how to manage the market, to increase the share of private customers in the heat market, and also whether coal-power plants will survive. A few days ago, British, Danish and Swedish companies signed a strategic agreement concerning a project on the North Sea (the Dogger Bank artificial island – editor’s note) encompassing a wind farm, with a power of 6 gigawatts, which is to be coupled with the Swiss-Norwegian hydropower system, with a storage capacity of 120 terawatt-hours.

Their prices will kill us. Our coal-based production will be too expensive.”

As can be observed, the energy mix in the 2030 perspective is forecastable. The cost-efficiency of the applied solutions and energy sources is a problem. What is needed is a structured discussion and clear guidelines formulated by the administrative authorities. •

Energy

PRESIDENT OF THE ENERGY REGULATORY OFFICE: 20 YEARS OF THE POLISH POWER INDUSTRY AND ITS MARKET REGULATOR MACIEJ BANDO President, Energy Regulatory Office

T

wenty years have elapsed since the start of transformations in the Polish energy, liquid and gas fuels markets with the involvement of the Polish regulator. As the market evolved, so has the Energy Regulatory Office, which was established in 1997, including its structure, rules and regulatory instruments.

The changes that have occurred are profound, not just on the aforementioned markets, but also in terms of thinking about energy. Over the past two decades, the Energy Law has frequently been amended - more than sixty times to be precise - along with other legal acts concerning the energy markets. Under these pieces of legislation, more and more responsibilities were given to the President of the Energy Regulatory Office as a central state administration body. These have entailed changes in the functioning of the broadly conceived energy sector. These changes, in turn, mean that the Office constantly needs to adjust to the changing realities and requirements, also at the level of day-to-day contacts with companies operating within the sector.

The past few months have also seen plenty of change in the Polish power industry. For the President of the Energy Regulatory Office it has thus been a busy time of work on the further implementation of new regulations on the liquid fuels market, which are part of the Fuels

22  polish market 

Package. Preparatory work has been conducted on another series of auctions for the sales of electricity coming from renewable energy sources. The last tender for projects geared toward improving energy efficiency was settled. Discussions were also held and work was conducted on the capacity market and other pieces of legislation and executive acts, and in particular, on their implementation. Activities were pursued and meetings were also held in the international forum regarding broadly conceived Polish and international energy sectors. A co-ordinator for negotiations was appointed under the President of the Energy Regulatory Office as a consequence of the implementation of EU and national regulations which highlight the role of energy consumers and are meant to protect their interests. This is also the subject of the Winter Package the Office is currently working on.

The Alternative Dispute Resolution law has introduced into the legal system the institution of out-of-court settlement of disputes involving consumers. To this end, a coordinator for negotiations was appointed regarding energy markets to act directly under the President of the Energy Regulatory Office.

Thanks to this, individual household consumers have gained another option of settling disputes with energy suppliers before they decide to start time-consuming legal proceedings, which have frequently discouraged consumers

from pursuing their rights before. What matters is that Polish consumers perceive energy, whether it is natural gas or electricity, as another commodity they purchase, over which they have direct control.

This is all the more important since the liberalisation of the gas market has entered a decisive phase. Beginning this year, prices for companies which sell it on the wholesale market have been liberalised. As of October prices for the remaining business customers will be covered by the Gas Release programme with the exception of households.

Gas prices for the latter will be liberalised as of January 1 2024. On its part, the Energy Regulatory Office is involved in a series of other activities on the gas market, which has been radically overhauled by an amendment of the law on natural gas reserves adopted in July, and which has serious consequences for the entire market.

FRESH CHALLENGES AHEAD What remains unchanged in the day-today work of the President of the Energy Regulatory Office in various areas, is striving for the balanced development of the Polish power industry at home and within the European Union, as well as balance the interests of power companies and individual final consumers. •

Enea CSR Report online

Corporate social responsibility report of Enea Capital Group 2016 is available online for the fifth time. Simultaneously, the Enea Annual Report for 2016 has been published for the third time.

Check out the enea.pl web page to see what corporate social responsibility and environmental projects, as well as public-oriented activities and measures with company employees in mind, were undertaken

by Enea last year. Visit online annual report to see what innovations the Group introduced and what investment projects it carried out as one of the largest electricity and fuel groups in Poland.

For more information, visit our website at http://raportcsr.enea.pl/2016/en

Energy

THE 4TH “POLSKA CHEMIA” CONGRESS

Tomasz Zieliński, Ph.D. Eng., President of the Management Board of PIPC

O

n 7-8 June 2017 in Toruń, the 4th (2017) “Polska Chemia” Congress was held, organised by the Polish Chamber of Chemical Industry (PIPC). The “Polska Chemia” Congress is a leading platform for discussions on the conditions impacting on the sector’s operations and business, and its challenges, threats and opportunities. Today the Congress of the Polish Chamber of Chemical Industry is a forum where strategies and action plans for the Polish chemical industry are created.

The event started with several speeches, including by the host of the meeting Tomasz Zieliński, Ph.D. Eng., President of the Management Board of PIPC, on the standing of the Polish chemical industry. In his speech

24 polish market

Mr Zieliński quoted macroeconomic data, providing insight into the current standing of the Polish chemical industry.

He was followed by Wojciech Jasiński, President of the Management Board of PKN ORLEN S.A. – a Strategic Partner in the “Polska Chemia” Congress. In his speech Mr Jasiński spoke of the role which the chemical industry and PKN ORLEN play in Poland's economy. Mr Jasiński also stated that in the endeavours for the best competitive position the organisation would actively use its R&D resources and the high innovative potential of its employees. At the same time, pointing to the challenges faced by the Company, he mentioned the increasing use of electric vehicles and the development of the petrochemical segment, which is evident in the construction of new metathesis plants for the production of propylene and polyethylene installations in the Czech Republic. Mr Jasiński also emphasised the role PIPC plays in ably representing the interests of the chemical industry in Poland.

There was also a speech by Piotr Cieśliński, MP, and Head of the Parliamentary Group for the Chemical Industry (the “Polska Chemia” Congress is under the Group's honorary patronage).

In turn, Alicja Adamczak, President of the Polish Patent Office, said in her speech “The role of chemistry is becoming increasingly prominent, which results, i.a., from the growing number of patents obtained by chemical enterprises. In 2016 chemical companies were responsible for as many as 22% of all patent applications, which is more than any other sector of the economy.”

During the two-day Congress, over a dozen discussions, panels and presentation sessions were held. The discussed subjects included the Polish chemical industry in these times of globalisation ‒ its standing, perspectives and challenges; the development perspectives for the chemical industry in Poland and abroad; the future of polyvinyl chloride and the challenges faced by its producers; distribution in chemistry – trends, technologies, and opportunities; the standing, development

and challenges of the sector, using the example of the largest refinery and petrochemical company in Central Europe, PKN ORLEN S.A., the Ambassador of the Polish Chemical Industry; the EFRA Project – the objective, performance and perspectives; the competitiveness of the chemical industry – its standing, challenges and barriers; The Organisation for the Prohibition of Chemical Weapons – the implications for the Polish chemical industry; innovativeness as the basis for the competitiveness of the chemical industry; Innovations - the chemical industry in the Industry 4.0 era; innovations – an investment or a responsibility? An obligation or an opportunity? Other topics: start-ups in the chemical industry – opportunities, perspectives and needs of the sector; energy efficiency – economy, technology or law? As usual, a special session was organised, this year under the title “Business and sport – the many faces of success”, and with the participation of Adam Małysz, Apoloniusz Tajner, Maciej Kot and Adam Pawlukiewicz.

The invitation to attend the “Polska Chemia” Congress was accepted by managers and experts from major companies from Poland and abroad. The Polish Chamber of Chemical Industry hosted representatives of the leading Polish enterprises operating in the chemical industry, representatives of the world of science, industry organisations, i.a., the European Chemical Industry Council (CEFIC) and the European Association of Chemical Distributors (FECC), as well as entities cooperating with the sector, i.a. PKO BP. “As the brand of the Polish Chamber of Chemical Industry is associated with an efficient industry organisation at the highest global level, the “Polska Chemia” Congress has become a major event for representatives of the chemical sector,” said Mr Zieliński after the event's inauguration.

The “Polska Chemia” Congress has been organised every year since 2014. The four editions of the Congress have shown that it is essential for the chemical sector's business community in Poland to create a platform for discussion on the chemical industry.

•

FUEL PACKAGE PRODUCES POSITIVE EFFECTS

Energy

HALINA PUPACZ, President of the Polish Chamber of Liquid Fuels

T

he liquid fuel market has strategic importance for the Polish economy. It is made up of many businesses, including small and medium-sized companies, which are the building blocks of every free-market economy. Companies operating in this sector not only supply high-quality fuels to various customers, but also generate substantial tax revenues for the State, and create new jobs. Therefore, it is crucial that the codified law contribute to the improvement and growth of the fuel industry as a whole, ensuring free competition conditions for all its players.

Over the last few years, this sector has been plagued by criminal groups, who illegally trade in fuels while not paying any due taxes. Such fraudulent operations have damaged the market and driven many honest businesses into bankruptcy. Their first victims were small, family-run businesses, which did not stand a chance in confrontations with criminals. Previous legal solutions, such as joint and several liability, and licences for trading in liquid fuels abroad, did not produce satisfactory effects, hence the pressing need to develop a different approach to the problem.

In 2016, the industry took a new, more effective, approach to fighting the black economy. Controls on the fuel market were tightened on the basis of three packages - the fuel package, the energy package, and the transport package.

The first package, introduced in the previous year, made several significant amendments to the previous regulations.

The new regulations quickly increased the sales of fuel from reliable suppliers. During the initial months, the reported increase was as high as 30%. Recent reports show about a 15% increase in the consumption of fuel products from legitimate sources. In view of the above, it is safe to say that the fuel package has produced positive effects.

The energy package was also introduced last year. In principle, it was to support the fuel package by bringing order to fuel licences, and especially licences for trading in liquid fuels, including international liquid fuel trading. Important parts of this law amendment were the revised definition of liquid fuel, the separate licence for the transshipment

of liquid fuel, and the statutory improvement in communication between offices and enforcement authorities. The energy package rested on two regulations of the Minister of Energy – secondary legislation which imposed new requirements on businesses, raising some legal concerns.

On the other hand, this year’s Act on the monitoring system for the road carriage of goods (SENT), known as the transport package, radically changed the previous rules for trading in liquid fuels. The Polish Chamber of Liquid Fuels recognises the undoubtedly valid intention behind these new regulations, whose purpose was to prevent VAT, excise duty and fuel surcharge fraud. Nevertheless, the new regulations, and especially the energy package and SENT, have imposed many new responsibilities on businesses, which translate into greater costs. Instead of focusing on the primary objective of business operations, i.e. generating revenue, licensees have to spend more and more time on submitting documents, reporting, and complying with other administrative requirements.

While the complexity of the new laws have made them far from perfect, it is important to acknowledge the efforts by the Ministry of Finance to adjust the new regulations to the specific nature of the fuel sector.

The number of new requirements exacted on fuel companies by State lawmakers also affects competitiveness and profit levels. As a result, businesses are looking for alternative sources of revenue, hence the development of petrol station car washes, food services, and convenience stores, resulting in greater product availability.

The industry is also concerned about new draft laws and regulations. The restriction on trading at petrol stations on Sundays, the requirement to provide separate rooms for mothers with infants, the restriction on the sale of medicines and alcohol, and the new rules for the control of fuel fume recovery, all impose new obligations, but, above all, limit opportunities for growth and revenue generation. If these amendments are introduced, they are likely to result in increased retail fuel prices. • 7-8/2017 polish market

25

Energy

MARCIN JASTRZĘBSKI, PRESIDENT OF THE MANAGEMENT BOARD OF LOTOS GROUP, TALKS TO "POLISH MARKET".

LOTOS REPORTED THE HIGHEST REVENUE IN ITS HISTORY LOTOS Group has demonstrated excellent performance on the stock market: the price of your shares more than doubled in the past year, and so did their trading volume. What are the sources of your success?

Without a doubt, the rate of our shares was influenced by the fact that in 2016, our company posted its highest consolidated financial results in its history, with a net profit of more than PLN 1 billion. Moreover, our group’s strategy for the years 2017-2022, which was published in last December, has obtained positive feedback from the market.

I think that the strategic goals that we included in this document, in particular our plan to double the average annual EBITDA LIFO in PM

26 polish market

the years 2019-2022, were particularly welcomed by investors. One of the main assumptions of the new strategy is to maintain high growth and invest about PLN 9.4 billion in the coming six years in profitable, innovative projects, all the while returning, after 10 years, to the capacity to pay out a dividend.

Obviously, we are benefitting from the macroeconomic environment, in particular from the robust refining margins that have been in place for a longer period of time.

However, the government’s efficient activities to eliminate the black fuels market were fundamental to this process. The introduction of the so-called fuels, energy and transport legislative package considerably improved the financial results of companies from the

oil & gas sector, contributing to our higher sales in the domestic market.

Your decision to pay out a dividend for 2016 was a major, positive surprise. The last time you paid out a dividend was in 2006, what reasons were behind this decision?

This was a much-awaited decision. In its decision to pay out a dividend, the company’s General Shareholders’ Meeting agreed with the recommendation of the management board that, already in 2016, when the new strategy was unveiled, there will be a change in this respect. LOTOS Group has a great financial standing and thus, in line with our plan, we will pay out a dividend of close to PLN 185 million to our shareholders.

PM

Energy Currently, analysts value LOTOS Group’s shares at more than PLN 70 per share. Do you share their optimism?

The current average “target price” of our analysts’ recommendations is about PLN 52 which is approximately the price of LOTOS Group’s shares on the Warsaw Stock Exchange.

I think that, in the coming months, the positive trend of our shares’ valuation has fundamental reasons to be maintained and PLN 70 price is a realistic projection, in particular if we take under consideration, that, in the second half of 2018, LOTOS Group will complete its largest investment in recent years, the Effective Refining (EFRA) programme. We estimate that this programme will allow us to gradually increase our effective refining margin by about USD 2 per barrel. This in turn will exert a positive impact on the results of our production and trade segments. Apart from that, we have also planned other projects which we do not announce at this stage, that should exert a good influence on the results.

PM

Are these positive recommendations mirrored by an increased interest in the company by investors?

Yes, definitely. Over the past year, we have observed an increased interest in LOTOS Group’s shares by investors. Both Polish and foreign investment funds are willing to meet with our company’s representatives, we are also invited to numerous conferences, including events in Warsaw, London, Prague and Oslo. I often take part in such meetings which is recognized as a major improvement in these relations.

PM

Over the past years, LOTOS has presented itself as a company that invests significant funds in the quality of its refining processes and deposits. Today, you mentioned there are plans to invest about PLN 9.4 billion. What do you aim to invest in?

We plan to invest more than PLN 6 billion in the projects that were already announced, of which 50% is to be allocated to the E&P segment, 40% to our refining activities (among others, the EFRA programme), and 10% to retail, allowing us to develop our chain of petrol stations. The decision on further development projects and allocating about PLN 3.3 billion to finance them will be taken by the end of 2018.

We are also planning to further develop the E&P segment to produce crude oil and gas based on our existing offshore and onshore licenses on the Baltic Sea, Northern Sea, in Poland, Norway and Lithuania. The quality shift in LOTOS Group’s asset portfolio in Norway is a challenge. This step is necessary to maintain sufficient production in the coming years, and it is required by the gradual depletion of PM

The quality of LOTOS fuels was recently recognized by the staff of U.S. President Donald Trump, as it was used to fuel the presidential Air Force One aircraft.

the deposits that are currently operated. If we want to continue to increase the share of the E&P segment in LOTOS Group’s revenues and the EBITDA, we must carry out further acquisitions in the near future. This is why we are analyzing various scenarios related to our entry to new E&P areas, all the while financially reorganizing the segment in which our newly-established subsidiary, LOTOS Upstream, will play a key role. This means that there will be a shift in the activities of our subsidiary LOTOS Petrobaltic, and the company will focus on performing maintenance services for the oil sector, also abroad.

We are also planning to further develop the E&P segment to produce crude oil and gas based on our existing offshore and onshore licenses on the Baltic Sea, Northern Sea, in Poland, Norway and Lithuania. The quality shift in LOTOS Group’s asset portfolio in Norway is a challenge. This step is necessary to maintain sufficient production in the coming years, and it is required by the gradual depletion of the deposits that are currently operated. If we want to continue to increase the share of the E&P segment in LOTOS Group’s revenues and the EBITDA, we must carry out further acquisitions in the near future. This is why we are analyzing various scenarios related to our entry to new E&P areas, all the while financially reorganizing the segment in which our newly-established subsidiary, LOTOS Upstream, will play a key role. This means that there will be a shift in the activities of our subsidiary LOTOS Petrobaltic, and the company will focus on performing maintenance services for the oil sector, also abroad.

The government’s priority is to ensure Poland’s energy security. What is LOTOS Group’s stance on this issue?

Our corporate strategy of diversifying crude oil supplies is in line with Poland’s energy security policy. We are interested in PM

securing new sources of supply in the energy sector, and developing the infrastructure to transport energy within the Tri-Sea region.

Our refinery’s location on the Polish Baltic Sea shore is our major advantage, and it allows us to acquire maritime supplies. We have purchased crude oil from the Middle East, and we are in talks with our partners from the Persian Gulf on further spot purchases. We are also analyzing the properties of crude oil from the North and South Americas’ market.

It is noteworthy that LOTOS manages one of the most technologically advanced refineries in Europe. To date, the facility has processed about 40 types of crude oil from various parts of the world, including the most demanding ones that are heavy and highlysulphated. Owing to the EFRA programme, that will be completed next year, and its new units, we will be able to deliver an additional 900,000 tonnes of various products, including diesel and aviation fuels.

What are your plans regarding LOTOS Group’s petrol stations?

We will continue to systematically develop our chain, but our priority is to ensure a high quality and availability of services. There is a lot to do in this area. We invest in new technologies to enable our petrol stations with the possibility to fuel and charge all types of vehicles that our customers could use in the near future. Our company has identified the first petrol stations that could offer modern charging technologies. Two of our petrol stations in the Tri-City were already fitted with electric vehicle chargers, under a pilot programme. At the same time, LOTOS is working on a project to develop a chain of LNG/CNG fueling stations, initially based on the existing petrol stations that are part of the TEN-T network. We are facing a number of ambitious tasks, but we are determined to successfully • complete them.

PM

7-8/2017 polish market

27

Energy

LOTOS Group is the owner of one of Europe’s most modern oil refineries situated on the Baltic coast. Thanks to a new investment project currently being implemented as part of the EFRA (Effective Refining) programme, heavy oil residues will be processed by LOTOS into high-profit products (diesel oil and jet fuel) whose share in the process will grow to up to 90%. When new investment projects are launched next year, the LOTOS refinery profit margin should increase by an estimated USD 2 per barrel.

LOTOS GROWTH THROUGH INNOVATION AND BALANCED INVESTMENTS LOTOS Group is a joint stock company listed on the Warsaw Stock Exchange (WSE). Together with 13 subsidiaries, it forms a corporate group that is strategically important for Poland’s and the region’s energy security. LOTOS Group is a part of the WSE’s WIG20 blue-chip index, and is considered a pillar of the Polish economy. The group produces natural gas and crude oil in Poland, Norway and Lithuania. It owns one of the most technologically advanced refineries in Europe that makes high-quality fuels.

LOTOS also comprises a network of close to 490 petrol stations located in all of the country’s major urban centres and in close proximity to highways and expressways countrywide.

A

s a retail and wholesale seller, LOTOS supplies fuels to close to a third of the domestic market, and it is also the country’s second largest rail freight operator. The group is a leading producer of bitumens, motor oils and lubricants.

One of the key elements of LOTOS Group’s strategy is its determination to base its activities on crude oil supplies from various sources worldwide, including the group’s production from its own deposits

28 polish market

in the Baltic Sea region and the Norwegian Continental Shelf where LOTOS owns exploration and production licences. Owing to such investments, LOTOS is actively increasing its independence from crude supplies from the East. By operating the Norwegian deposits, LOTOS Group is vitally interested in the development of a gas pipeline linking Norway and Poland that would constitute a significant element of the national energy source diversification strategy.

WE CONTINUOUSLY INTENSIFY OUR COOPERATION WITH VARIOUS RESEARCH BODIES AND STARTUPS, CREATING JOINT RESEARCH AGENDAS AND INVESTING IN TECHNOLOGICAL AND LABORATORY INFRASTRUCTURE.

Over the past few years, LOTOS has consequently developed its production infrastructure, securing a spot within the European refining elite. Currently, the group is completing the construction of modern, low-emission units developed under its Effective Refining (EFRA) programme. Heavy residues from the refining process will be processed into highmargin products whose share in the process will increase to 90%. These will include diesel and aviation fuels. At the same time, the refinery will reduce its output of products with negative refining margins, such as heavy fuel oil, and this will considerably improve the company’s financial results. The investment will be completed next year, strengthening the refinery’s position within the industry’s elite.

This year, LOTOS is reporting a dynamic growth in fuels sales. The group is also eyeing increased sales of non-fuel products by several tens of percent. According to a market report by Nielsen, LOTOS is the most dynamically developing petrol station chain in this field, among others, owing to the rapid development of its food services in cooperation with the SUBWAY fast-food chain. By 2022, the group will invest more than PLN 500 million in this segment. The priorities include: standardising the company’s petrol stations, introducing innovative technologies, among others in the alternative fuels sector, optimising customer service and sales processes, and revitalising the Navigator premium programme. LOTOS, as an active sports sponsor, promotes the Polish national football team, among others, and offers its supporters who double as customers of its petrol stations a wide range of products which feature Poland’s best players.

Following the latest tenders held by the General Directorate for National Roads and Motorways, LOTOS further strengthened its position of the country’s vice leader in the field of motorway service areas. The group operates twenty such facilities located at the A1, A2, A4 and A6 motorways, and the S3 and S7 expressways. As a result of the recently completed tender, LOTOS obtained a permit to develop further service areas at the S7 expressway which is of key importance.

•

Energy

MATEUSZ A. BONCA, PhD, VICE-PRESIDENT OF THE BOARD, STRATEGY AND DEVELOPMENT Since we announced the strategy of LOTOS Group for the years 2017 to 2022 in December 2016, our management board has been working intensively to increase sales, reduce debt, raise the company’s profitability and expand its crude oil reserves. Besides the key E&P projects and acquiring suppliers from new locations worldwide, we are currently performing a number of optimisation activities within the group, for instance in relation to the organisational and capital structure. We are implementing centralised purchasing. We are further developing our management of the integrated margin giving us a competitive edge based on our location on the Polish Baltic Sea shore. We are also deeply analyzing options to build an olefin complex, a new generation oil block that would use our unique feedstock, and to further develop our production of motor fuels.

We are implementing new methods of agile management, based on creativity and flexibility, as well as developing an employee innovativeness programme. We continously intensify our cooperation with various research bodies and start-ups, creating joint research agendas and investing in technological and laboratory infrastructure. We aspire to lead the research on bio-fuels of the 2nd and 3rd generation, and the technology to store energy as hydrogen as well as use it in road transport. We are also working recycling of unreacted oil from the hydrocracking process with the use of filtration systems. These projects are co-financed by the National Centre for Research and Development. Our other priority areas include innovative fueling models, the development of the infrastructure for alternative fuels (LNG, CNG), and electric mobility solutions. Together with various scientific bodies, we are developing technologies to produce, among others, fuels, oils, polymer-modified bitumens, and plasticisers for tyre industry. We are also open to acquire new ideas from the market, including the start-up scene, within the abovementioned fields. We remain a ‘silent scout’ in this respect, but we encourage all entities that are interested in these fields to cooperate with us.

7-8/2017 polish market

29

WE MUST BLAZE NEW TRAILS AND ACT AS A TRENDSETTER 30 polish market

Source: Tadeusz Poźniak, Biznes i Styl.

Energy

JANUSZ FUDAŁA, President of the Management Board of ORLEN OIL, talks to "Polish Market".

As of May you have been in charge of ORLEN OIL. You have longstanding experience in managing companies in many sectors. In what way does your experience help you in managing a company like ORLEN OIL? Experience is indeed priceless. When in 2005 I first became a board member of a major company, Zakłady Chemiczne Organika-Sarzyna Ltd. chemical works, my goal was to become competent enough not to encounter any issue that could surprise me because I had not dealt with it before. I reckon that in my professional life I have reached this stage. Since 2005 I was responsible for the development of companies operating in the chemical and transport sectors, but I also managed EU projects. For the past three years I was in charge of the Rzeszów Regional Development Agency. Some of the most valuable experiences for me included the construction of an Exhibition and Congress Centre in Jasionka near Rzeszów, managing economic zones and the PM

Energy

implementation of a number of EU projects. I also draw on my extensive experience as a legal expert. I have dealt with hundreds of cases involving natural persons and companies.

Now I’m focusing my whole professional experience on one thing: efficient management of ORLEN OIL. ORLEN OIL has a strong position in the Polish market.

Are ORLEN OIL products available in foreign countries?

ORLEN OIL products are sold in neighbouring countries where other companies from the ORLEN corporate group operate, but also in India, Guatemala, Egypt, Taiwan and China. ORLEN OIL exports are growing dynamically. African, Asian and Middle Eastern markets often prove more lucrative than European markets. For us, distance is not an obstacle.

PM

What brand are they available under? ORLEN OIL? ORLEN OIL and PLATINUM? Our products are marketed under the ORLEN OIL brand and our premium PLATINUM brand. Due to the size of our market, PLATINUM oil labels are translated into a dozen languages or so.

PM

What are ORLEN OIL competitive advantages compared to your foreign competitors?

ORLEN OIL is part of the ORLEN Corporate Group which over the years has become a recogniseable brand and a strong international fuel and energy company. This greatly facilitates our development. We produce base stocks ourselves. We work only with well-known suppliers, thanks to which our products, PLATINUM motor oils, have the highest quality parameters. While in terms of viscosity, other companies’ oils oscillate around ORLEN OIL mean standards, in terms of the Total Base Number (TBN) which is a very important value, PLATINUM oil is superior to other brands. Car users often pay no attention to individual quality parameters of oils they buy, while the high TBN value of PLATINUM oils is a key to keeping the motor clean and thus to extending its life.

Our products are greatly appreciated by customers. They are synonymous with top quality, which probably stems from the fact that we are responsible in what we do and we invest in new technologies. Besides, we have a well developed R&D department which constantly works on projects geared toward improving the quality of our oils.

PM

The ORLEN OIL product line encompasses machine oils and oils used in equipment operating underground. The fact that the Polish government regards coal as a key energy source must spell good news for the producer of oils and lubricants for mining equipment and machinery performing heavy-duty jobs. What’s your vision of co-operation with the heavy industry?

We have extensive experience in working together with mines. In partnership with industrial clients we are winning the approval of a growing number of manufacturers, which means that our industrial oils are recognised as quality products. Last year alone we won the approval of EICHOFF and BECKER WARKOP, two world leaders in mine equipment manufacturing, as well as of Kopex Machinery PM

S.A. for hydraulic oils and gear lubricants. In the near future we are planning to develop this segment.

You can now hear the word ‘innovation’ time and time again. In the oil sector, are there any new technologies and how does it translate into product quality?

In its product line ORLEN OIL has some technologically advanced lubricants but it is constantly working on further development to maintain the momentum. We are currently working on products which are energy- and fuel-efficient.

Before the end of the year, ORLEN OIL intends to introduce hydraulic oils and gear lubricants into its industrial product range. Owing to their unique formula, they will significantly reduce internal friction, thus cutting energy losses during the use of the hydraulic system and gears. In the group of motor oils, two OW30 and OW20 viscosity class oils will be introduced whose tests demonstrated fuel consumption reduced by 2.5% compared to similar products.

PM

Talking about modern technologies, aren’t you afraid of progress? There is more and more talk about electric cars and machines…

As a producer operating on such a scale, we cannot afford to just follow trends that already exist within the sector. We must blaze new trails and act as a trend-setter. What I have in mind are motor oils, which in recent years have been developed to a considerable extent. Our line will include the new, approved products we have mentioned before. Moreover, we produce and market premium class oils which meet high requirements set by the makers of the latest and technologically most advanced motor cars. Thanks to technological progress, ever more advanced cars are developed, but all of them still need lubricants. But we must not forget about the future when electric cars are bound to play a much greater role. These cars will need quality lubricants and coolants which will be used during the production and operation of individual car parts. In my view, the future belongs to hybrid cars, where the combustion engine will continue to play a vital role, which will only highlight the importance of low-viscosity oils.

PM

Are you planning to be further involved in motor sports?

For many users of motor oils and lubricants your work with sportsmen like top Polish bike rider Kuba Przygoński is an excellent recommendation.

ORLEN OIL has always been involved in motor sports.

In racing cars, top class oils are used, which are the oils we produce and sell. Each time PLATINUM oil is used in extreme conditions it’s a great way to underscore its top quality. We test our oils during 24-hour rallies at professional race courses, and during WRC rallies, even the Dakar Rally.

PLATINUM oils enjoy an excellent reputation among racing drivers, which we are very happy about. We also support talented drivers and bike riders. We’ve been working with Kuba Przygoński for the second season. We are proud that this ORLEN Team member is developing so fast and that he is scoring such spectacular successes as his victory in the Baja Rally in Italy or his high ranking in this year’s Dakar Rally • general classification.

PM

7-8/2017 polish market

31

Culture

THE AEROSPACE AND DEFENCE SECTOR HITS ALMOST $675 BILLION IN 2016 GLOBAL REVENUES THE DEFENCE INDUSTRY ON THE RISE, CIVIL AVIATION SLOWING DOWN In 2016 the global revenues of the aerospace and military sector amounted to $674.4 billion, and were 2.4% higher than the year before. The main reason for this rise was the growth of the civil aviation sector in Europe and the increased defence expenditure in the US. According to Deloitte’s annual report “Global Aerospace & Defense sector financial performance study”, significant revenue increases were recorded by original equipment manufacturers (OEM) such as Airbus and Lockheed Martin, and some electronics producers.

Deloitte’s report was based on a performance study of the aerospace and defence industry's one hundred largest companies whose revenues exceeded $500 million.

In 2016 the global aerospace and defence industry grew by 2.4%, which was slightly higher than the overall growth rate of the global Gross Domestic Product, which was 2.3%.

The year before the A&D industry’s growth rate was 3.8%.

The revenues of the studied companies increased by $15.7 billion, to reach $674.4 billion. “Both the aerospace and defence industries contributed to this growth, as their revenues rose by 2.7% and 2.1% respectively. In the case of civil aviation, a record number of 1,436 new aircraft hit the market in the discussed period,” said Piotr Świętochowski, a Partner in the Audit & Assurance Department and Defence Industry Expert at Deloitte.

In 2016, European A&D companies recorded an increase in revenues of 3.7%, and their US counterparts of 2.4%. The industry’s operating profit rose by 7.9% globally.

THE AEROSPACE INDUSTRY KEEPS GROWING, BUT HAS LOST ITS MOMENTUM In 2016 aircraft and aviation equipment manufacturers increased their revenues by 2.7% to $321.1 billion, while the year before this growth was 6.3%. The European aerospace industry saw an increase of 6.7%, while its US counterpart grew only slightly, by 1.3%. The number of orders for new aircraft was 13,687, which was an increase of 1.6% over the previous year. According to the estimates, by 2035 about 35 thousand new aircraft will have hit the market.

32 polish market

THE DYNAMIC DEFENCE SECTOR

Revenues in the global defence industry grew in 2016 by 2.1%, i.e. by $7.2 billion to $351.3 billion. In the discussed period global defence expenditure rose by 0.6%, with 1.7% in the US and 2.8% on average in Europe. “Unlike civil aviation, the defence industry is being boosted by its US sector, with a revenue growth of 3.1% as compared to Europe’s modest 0.6%,” explained Piotr Świętochowski.

GIANTS HELP A&D GROW

The revenue changes in the A&D industry were caused primarily by the increases in revenues among original equipment manufacturers (OEM) and in the electronics segment, which amounted to $3.4 and $3.7 billion respectively. The growth in OEM is connected with the significant rise in revenues in 2016 in the Airbus Group, which was $2.4 billion, and Lockheed Martin ($1.9 billion). Among electronics manufacturers, the highest revenue increase (by $2.4 billion) was achieved by Harris Corporation.

BOEING AND AIRBUS STILL ON TOP

Last year, the balance of power among aircraft and military equipment manufacturers remained unchanged. The Boeing Company still leads the pack, although it must be noted that in 2016 it recorded a $1.6 billion drop in revenues.

In the discussed period these amounted to $94.6 billion. In 2016 Boeing delivered 748 aircraft, whereas the year before it was 762. The top three also included the Airbus Group (3.3% increase) and Lockheed Martin (4.1% increase). The highest revenue growth last year was recorded by Harris Corporation, reaching 46.9%. From among the 100 studied companies, 29 recorded a drop in revenues (five fewer than the year before).

"Thinking about 2017 and the following years, we should expect a further growth in the defence sector, as states are investing in new technologies to counteract the constantly emerging terrorist threats. The almost 13.7 thousand ordered aircraft will ensure the stable financial performance of the aviation industry,” concluded Piotr Świętochowski. •

Source: Deloitte

Defence Sector

THE 2

ND

PRO-DEFENSE

TRADE FAIR

T

he 2nd Pro-Defense trade fair was held in Ostróda, north-eastern Poland, on June 1-4. Over the four days, the Expo Mazury halls were visited by a record 40,000 visitors, over 12,000 of whom were organised groups, schools and uniformed classes.

The trade fair was officially opened by its Honorary Patron, Minister of National Defence Antoni Macierewicz. “This trade fair combines three vital elements - the army, young people and Poland’s economic effort,” said the Minister. His visit began with an appeal to students from uniformed classes, participants in the Polish Picnic of Uniformed Classes. The Minister also spoke during the official opening of the conference, discussing the activities of pro-defence organisations, and visited the trade fair stands of the Polish Armed Forces and the defence industry, as well as the historical and educational Polish Military Trail.

Halls 5 and 6 of Expo Mazury, and also some of the outdoor areas, were covered by trade fair stands and exhibitions of military

34 polish market

equipment. The visitors had an opportunity to see the range of products offered by more than 50 commercial exhibitors, which included companies providing supplies for the services and institutions maintaining security and public order. The trade fair’s strategic partner – Polska Grupa Zbrojeniowa (the Polish armaments group PGZ) – also had a stand. Its companies presented state-of-theart armaments and military equipment. PGZ also staged regular shows of its equipment for the Territorial Defence Forces. As part of the exhibition of equipment, representatives of military units, inspectorates and higher schools presented the gear used by the Polish army. Visitors admired the military and specialised vehicles, weapons, uniforms and navigation systems. They could also try out professional simulators and test their skills at a shooting range.

The Expo Mazury – Sail of Development award was granted again. This year’s winner was Wojskowe Zakłady Elektroniczne S.A., for the backpack drone jammer Lanca Elektromagnetyczna, which is part of the ADS 01

counter-drone system designed to neutralise unmanned aerial vehicles.

The Polish Military Trail, a historical and educational trail funded by the Pro-Defense Strategic Partner Polska Grupa Zbrojeniowa, was very popular among visitors. The trail consisted of 9 stages (the Slavs, the Middle Ages, the Partitions and Uprisings, the First World War, the Interwar period, the Second World War and the post-war independence underground, Territorial Defence Forces, the present times, and the Polish Space Agency) and involved representatives of museums and army-related institutions and reenactment groups conducting interactive history lessons. As part of the final stage of the Trail, on the Polish Space Agency stand, there was a show of Polish Mars rovers, “Mars Defence”. The competition featured 7 teams of students representing Polish universities.

The tasks included a timed race along a predetermined route, moving loads, and even defusing an explosive. The competition was fierce. In the end, the Legendary Rover Team from the Rzeszów University of Technology emerged victorious.

The trade fair’s accompanying event was the conference “The activities of pro-defence organisations in Poland and abroad” organised by the Ministry’s Pro-Defence Department. During the 3 days of the conference, over 120 participants (including guests from Belarus, Estonia, Lithuania, Latvia and the US) listened to a public lecture, and took part in discussions on creating an effective model for the operations of pro-defence organisations in contemporary State systems. Other issues discussed included the Ministry of National Defence’s programme to support Divisions of Certified Military Uniformed Classes at upper-secondary schools.

Another accompanying event was the ProDefence Picnic of Uniformed Classes, which featured about 1,000 students from uniformed classes across Poland. They actively participated in the Pro-Defense trade fair and the Polish Military Trail. In addition, students of uniformed classes also took part in specially prepared proving-ground training, which took place in the Grunwald fields.

•

Defence Sector

CIVILIAN RESEARCH INSTITUTES SUPPORT THE SECURITY OF POLAND

H

PROF. LESZEK RAFALSKI, Chairman of the Main Council of the Research Institutes

enry Kissinger, a renowned 20th-century politician and Nobel Prize laureate, said that security is the foundation of everything we do. In the 21st century, we need to be aware that there are more and more threats to our security every day. Technological advancements on the one hand contribute to the growth of society, but on the other generate new risks. National security is a serious challenge faced by relevant institutions and national bodies, but also scientists.

Among the 115 Polish research institutes I have the pleasure to represent, there are also some military organisations.

These conduct research in areas that are vital for the armed forces. However, I would like to make it clear that many of our civilian institutes conduct research and implement solutions that are designed in response to national security and public safety threats.

In March 2017, in Warsaw’s Sofitel Victoria Hotel, the Main Council of the Research Institutes organised a conference entitled “Civilian Research Institutes Support the security of Poland”. The purpose of that conference, held under the patronage of the National Security Bureau, was to address key research and development projects having considerable significance for national security, also in relation to power supply, transport, and cyber-space. Representatives of twenty research institutes presented some extraordinary achievements during the following four thematic sessions: 1. Materials and technologies, 2. Vehicles and equipment, 3. Electronic technologies and IT solutions, 4. Protection of people and the environment. The conference presented innovative projects and ingenious solutions that already serve, or can be used for, the purposes of identifying threats and ensuring national security. Special operations vehicles, semiconductor technologies, rocket engines, photonics in radiolocation systems, radiological protection, steel with special properties, seismic systems that support security in air training grounds, and smart clothing for uniformed services – these were but

a few of the presented issues. Many of these solutions have already been deployed, e.g., by leading Polish arms companies. They have also gained recognition on the domestic and international markets.

The event was accompanied by an exhibition of equipment, inventions and innovative achievements of selected institutes, associated in some way with security. The presentation featured such interesting exhibits as mobile robots, an anti-drone system, and a dosimetry gate that facilitates the measurement of hand and feet contamination.

It turns out that the innovative projects and solutions developed by civilian research institutes and presented during the conference provide a broad range of products for such departments as national defence, internal affairs and administration, digitisation, and uniformed services.

These innovations can be used to update the state of the art in emergency management systems across all levels of national administration and various public and private institutions, and to improve the operational performance of our armed forces and uniformed services. In addition, they are important for the appropriate coordination of services, their operating methodologies and equipment, as well as for enhancing their operational efficiency.

I am happy to see the conference unlock a tremendous potential and bring to light a broad range of research and development projects aimed at security and carried out by our non-military institutes. These should receive as much publicity as possible to increase public awareness. The added value of this event, I believe, is that it encourages interdepartmental cooperation and integrates uniformed services with civilian research laboratories. What is also important is that we realise the need for setting up major interdisciplinary projects focusing on national security.

Finally, I am happy to conclude that the conference enjoyed great popularity. This clearly shows that the conference addressed current and relevant issues. But, after all, for contemporary people, security, both in individual and • national terms, is one of key values.

7-8/2017 polish market

35

Defence Sector

EMAG INSTITUTE'S EXPERIENCE TO BE USED IN NATIONAL DEFENCE STANISŁAW TRENCZEK, PhD, Director and Associate Professor at the EMAG Institute of Innovative Technologies

S

ince its establishment in 1975, the Institute of Innovative Technologies EMAG has focused on industrial solutions. Over time, the Institute has changed its fields of operation from heavy industry to broadly defined applied IT, reaching out to customers in various economic and administrative domains. As a result, since 2016 EMAG has been supervised by the Minister of Digital Affairs. It is important to note here that in 2016, as an official acknowledgement of our excellent team of scientists and engineers, EMAG was also accredited by the Minister of Economic Development as a Centre of Innovation.

Thanks to our successful track record, particularly in relation to monitoring systems and various professional software, some of these have found application in the fields of defence and security.

Here are a number of defence projects implemented in partnership with such consortium members as the Air Force Institute of Technology and the Military University of Technology.

The first is an air-training ground bombing and shooting-accuracy assessment system (SejsLot) – for the unbiased evaluation of pilot performance in relation to munition deployment, based on drills and non-explosive rounds. Without going into detail, SejsLot can be characterised as a set of integrated subsystems: seismic – for measuring and recording air bomb and rocket missile impact coordinates; inertial – for recording

36 polish market

direct hits by rocket missiles and barrelled weapons; and observational – for monitoring the training ground’s operating area and air space. Information provided by these subsystems is sent to the Data Processing Centre, where it is visualised and archived. The first operation took place in the Nadarzyce training ground, and the second in the Jagodne training ground.

Another system is Target movement-monitoring networks, based on the Seismic Detector Module, developed at EMAG. The system makes it possible to detect, observe, record, signal, and immediately notify the user about the detection of an intruder-target, as well as to identify it (human, animal, car, bike, other means of transport, etc.) and track its movement. The first such network is deployed in the Nadarzyce training ground.

The next example is a more complex, developed and deployed Ground Security System in the Central Air Force Training Ground in Ustka, which covers selected crucial facilities/locations within the training ground.

Information from the rocket, through visualisation and seismic systems (for monitoring the land part of the training ground), is transmitted (via telecommunications and ICT networks) to the Command Post, where the Data Processing Centre is located. The continuous operation of the system is ensured by uninterruptible and backup power-supply systems. The system can also be used to monitor airports, sea ports, and border crossings.

Experience gained in IT has helped us develop our original security solutions, such as Infomat-eWIB, a system for determining the location of objects in enclosed spaces. The system quickly and easily locates people in buildings, vehicles in warehouses, and objects in enclosed spaces. It relies on the WiFi network available in the facility (plus, sometimes, other systems) and analyses its signals to determine locations with the accuracy of 6 metres. Another example is OSCAD, a business continuity and information security

management system, designed specifically for companies and institutions operating in state defence and security, for which business continuity or readiness is vital. It supports business continuity management in accordance with BS 25999/ISO 22301.

Recently, the range of our operations has been expanded to include cyber-security and the identification of critical infrastructures.

Together with its foreign partners, EMAG was involved in the Critical Infrastructure Risk Assessment Support (CIRAS) project.

As a result, we developed a computer tool for risk management in critical infrastructures to support security assessment and decision-making in relation to specific security measures, while taking costs and benefits into account.

Finally, it is important to note that each of the solutions described above can be de• ployed both in Poland and abroad.

Defence Sector

ACTIVITIES OF THE INSTITUTE OF INDUSTRIAL ORGANIC CHEMISTRY FOR SECURITY AND DEFENSE OF THE STATE

T

he Institute of Industrial Organic Chemistry (IPO) has been conducting research and development in the field of explosives chemistry and technology for the past 70 years, important for the country's security and defense.

In this area, the Institute cooperates with government agencies, universities, research institutes and, above all, defense industry companies.

Examples of such cooperation are solid rocket propellant compositions for four propulsion charges for portable anti-aircraft missile set and the development of technological process for obtaining solid rocket propellants for the HTPB medium-range missile.

The Institute's specific area of work is also the basic research works and research studies on static electricity protection. They concern the design and implementation of static electricity protection systems. Based on the results of the studies, the Institute issues decisions on the possibility of using materials/products in potentially explosive areas.

The Institute also classifies dangerous goods in transport based on recommendations of the international RID/ADR contract.

The work carried out at the Institute of Organic Chemistry and technology of explosives and their research and safety has been presented a number of International IPOEX Conferences (Explosives - Research - Application - Security) as well as at the International Pardubice Seminars (New Trends in Research of Energetic Materials), Scientific Armaments Conferences, Scientific and Technical Conferences titled "Prospects for the development of national production of rocket propulsion and shot gun and artillery ammunition". In addition, some of the work has been published

in “Central European Journal of Energetic Materials”, “Chemical Industry” and “High-Energetic Materials”.

The Institute offers: • Development of compositions and technologies of highenergy materials (including plastic explosives, aerial imitators, solid rocket propellants for: gas generator, 70 mm unmanned aerial missile, anti-aircraft missile launchers, and 122 mm medium range missiles, etc.).

• Tests: • explosives and substances with explosive properties, • physicochemical hazardous materials, design and implementation of static electricity pro• tection systems.

• Experimental production of products for special needs: small-volume charges from solid homogeneous propellants to gas-generator, imitators of air targets and smoke masking charges, miniature detonator initiators, lowweight detonating cords and linear cumulative charges in a wide cutting range of 1-50 mm.

• Evaluation and classification of dangerous goods in transport according to ADR and RID regulations.

• • REACH consulting.

7-8/2017 polish market

37

LEOPARD TANKS

Economy

ARE GOING STRONG

Comprehensive offer of Polish industry in the modernization and improvement of tactical and technical performance of Leopard tanks.

T

he biggest contract for the modernization of armoured vehicles in recent years was signed between the Ministry of Defence Armaments Inspectorate andconsortium including PGZ S.A. (Polish Armaments Group) and Zakłady Mechaniczne (ZM) Bumar-Łabędy S.A. on 28th of December, 2015. Its gross value was PLN 2,415 billion.

The modernization is forseen until 30th of November ,2020 and assumes 128 of Leopard 2A4 tanks, which will be upgraded to the 2PL version. The programme underscores the fact that Polish industry has reached potential level which guarantees that technological and tactical advantages , one of the world’s most advanced tanks, can be upgraded even further. As well as the tank’s operating environment will be developed , enabling the upgrade and further developmentof know-how, and providing special tools and test equipment (STTE). Apart from Zakłady Mechaniczne Bumar-Łabędy S.A., other companies operating within PGZ S.A. take part in the implementation of modernization programme. On 18th of February ,2016 the Agreement between Rheinmetall Landsysteme and ZM Bumar-Łabędy S.A. was signed. Under this Agreement, the German company and the Polish company are jointly responsible for preparing drafts of tank’s upgrade,necessary technological documentation, as well as making a prototype and trial batch of the 2PL version. ZM Bumar-Łabędy will also receive

38 polish market

technical support from the German partner in launching serial production of the tank, as well as necessary tools and know-how.

The first stage of modernizationprogramme provides for the Leopard 2A4 tank upgrade to the 2PL standard. It has started just after the contract was signed. It was the initial stage,in terms of project organisation and preparation of infrastructure and resources. The WITPiS Institute made an assessment of technical condition of the first tank which was modernized.

It was followed by another series of tests in order to determined to what extent technical and combat features of the upgraded tank have been improved. When it comes to project organisation, a Steering Committee was appointed to ensure effective communication within the project – at the level of Polish as well as foreign subcontractors . It is also responsible for the control of working progress, supply and cost management. At the same time, design work related to the preparation of tank project was conducted. The first version of conceptual design was presented to the Ministry of Defence Armaments Institute at the meeting on 28th of April 2016. In the meantime, Rheinmetall Landsysteme perform a demonstration model of the upgraded Leopard 2PL tank. It was presented at the 24th International Defence Industry Exhibition in Kielce In the first three quarters of 2016, ZM Bumar-Łabędy tooks to upgrade over 48 of 128 Leopard 2A4 tanks . As a part of initial stage to

prepare ZM Bumar-Łabędy for the verification of technical condition of tanks , the following activities has been conducted: • receiving of TDv technological documentation • training package at Rheinmetall Landsysteme • establishment of capabilities in order to perform tank maintenance up to F6 level • preparation of plant infrastructure for the tank modernization process • preparation of process engineering documentation for the disassembly, verification and storage.

During the whole year F6 maintenance of 14 Leopard 2A4 tanks was conducted and some improvements were made. These works were conducted based on individual assessment of technical condition under the Agreement with the Inspectorate for Armed Forces Support. To sum up, the first year of the Leopard tank modernization process at ZM Bumar-Łabędy was conducted according to the schedule. Besides, the plant is actively involved in preparing an offer for the Ministry of Defence for the modernization of armoured recovery vehicles dedicated to servicing of the Polish army’s Leopard tanks, both in the A4 and A5 versions, and in the future also the 2PL version. The proposed based on German-manufactured Bergepancer was unveiled at last year’s International De• fence Industry Exhibition.

Infrastructure

5-6/2017 polish market

39

Defence Sector

CYBERSECURITY

CHALLENGES IN POLAND

Cybersecurity is a hot topic not only in Poland. New technologies influence changes in the business environment as well as social behaviours. New risks emerge uninvited and it is up to governments to make sure Internet users, even those unaware of technology concerns, can feel protected.

F

JAKUB SYSTA, Director of Managed Security Services at Exatel S.A.

or years cybersecurity issues have been discussed among various bodies. Various official reports as well as some painful incidents highlighted the true state of IT security among the masses. Still, despite all the identified problems, one must conclude that a lot of effort has been made in recent years and results seem to lead in the proper direction.

Poland is well known for educating top IT engineers and programmers. The elite of white-hat Polish hackers work for the world’s biggest corporations protecting their infrastructure and data, Polish teams keep standing at podiums during various capturethe-flag (CTF) or even CERT exercises. This is considered as a great opportunity for Poland.

One of the world’s biggest challenges – lack of skilled IT staff – seems to be our natural benefit. Poland only needs to make sure that the education system keeps supporting youngsters in streamlining their skills. The partnerships of IT companies with technical universities and even high schools seems to be the best option. And what is worth to highlight is that this is already a common practice among market leaders.

A skilled staff however, does not constitute cyber-sovereignty that seems to be one of the goals Poland has stated. It is being understood that in the times when cyberspace intercepts our everyday life, each country needs at

40 polish market

least to be able to govern this area. This is the reason why so much energy and effort is spent nowadays to find a model for how this needs to be done. One of the key steps is naming all parties responsible for making cyberspace secure, followed by defining and dividing key tasks. These shall include the already mentioned education, setting up country-wide IT requirements, internal and international cooperation in case of incidents and fighting cybercrime, ensuring the development of secure tools and reliable networks… All this should be streamlined by risk appetite and done in line with local and European legislation like the Directive on security of network and information systems (NIS Directive) or General Data Protection Regulation (GDPR Regulation). Governance over these tasks ought to be one of the key concerns for the government.

There are plenty of examples of such proactive activities in the cybersecurity area.

Let us name at least one - purchasing Exatel one of the biggest Polish backbone operators, by the government in the first quarter of 2017.

Poland regained control over the entity that offers networking services to some of the country’s most crucial institutions, ensuring at the same time that Exatel will offer its professional networking and cybersecurity services also to other – non-governmental organizations that understand the value of information transmitted over their networks.

Cybersecurity started to be visible also in the most promising area of the country's growth, namely R&D. Brilliant Polish engineers have now much more funding prospects and keep being encouraged to develop new tools and entities that at the end of the day will be used to protect public services, valuable data and the integrity of crucial systems. We might expect that even more high-tech companies will be established that will be willing to expand in Poland, and benefit from Polish partners and capital, and that current leading players will continue their efforts to create environments that unite Polish IT professionals.

The combination of programming, networking, cryptography and pure engineering skills, as well as more and more visible patriotism will result in very interesting start-ups and tools, which will be later used to protect our country from advanced cyberattacks that spread throughout the whole Internet or are targeted to hit only a precisely set target, tools that require skilled staff able to identify the incident and deal with it in a professional manner. This is then the reason why a SOC (Security Operation Centre) is being created among market leaders and the most important organizations. It is already understood that “boxes” and “code” are not sufficient to protect organizations active in cyberspace. And it is also expected that the results of country-wide cybersecurity-related initiatives will be visible to all citizens who will trust they are being adequately protected. •

WSK "PZL- KALISZ" WSK "PZL- KALISZ" S.A.

has been a plant of the Polish Aviation Industry since 1952 and has been producing radial piston engines ASz-62IR of 1000 HP for aircrafts AN-2 and M-18 “Dromader”, Y5B and “Otter”.

An ASz-62IR piston engine holds a number of international certificates (including certificates issued by aviation authorities of USA, Canada, Brazil, Russia and PRC). The company also performs overhauls and repairs of these engines. At this time we have completed upgrading process of this engine by implementation of the electronic controlled fuel injection system and by enabling car fuel E95 application along with automotive fuel drive.

Simultaneously we are conducting development works on a new type piston engine PZL-200 of 280 HP. As a result of our company’s restructuring process we have expanded our commercial offer with gears and gear transmissions that we now manufacture for world aviation industry leaders.

Within our production scope of interest are also parts for high pressure engines, oil pumps and crankcases. These components require top precision machining accuracy classes, which we accomplish when meeting the requirements of our Customers’ special orders.

Our continuous goal and ambition is to meet our Customer’s engineering challenges and expectations as part of our technical qualifications and production capacities.

We can offer a world class sophisticated machining capabilities, highly skilled, qualified and experienced engineering personnel and operators.

We keep on looking for new markets and business partners, especially in manufacturing of high precision and processing complexity aviation parts.

We are prepared to initiate a business relationship with any partner representing a similar production portfolio

WSK "PZL- KALISZ" S.A.

holds the following certificates: AS 9100, AQAP-2110, PART 21G-M and PART 145.

International Relations

PRIORITY IN AVIATION IS SAFETY The celebrations of the 5th anniversary of the opening of Warsaw Modlin Airport were a good opportunity for holding a conference at the Polish Press Agency (PAP) on prospects for the development of civil aviation in Poland. Safety and the introduction of new technologies, which are problems of key importance for aviation, were also discussed at the conference. The topic of increasingly popular unmanned aerial vehicles, known as drones, attracted much interest as well.

Marcin Haber

C

ivil aviation has been a very popular media topic in recent years. Polish airports have been registering record passenger traffic figures. The Polish national carrier PLL Lot has been going from strength to strength and opening new direct air connections. There is much talk about budget airlines. And a hot topic in recent months has been the government’s proposal to build a Central Transport Hub in Poland for passenger and freight traffic.

Poland also has many local airports, like Warsaw Modlin and Poznań Ławica. Present at the conference held at PAP on July 12 were representatives of these two airports – acting President of Warsaw Modlin Airport Leszek Chorzewski and Operational Director at Poznań Ławica Airport Jerzy Baumann – as well as President of the Polish Air Navigation Services Agency Janusz Niedziela and Director of the Department for Unmanned Aerial Vehicles at the Agency Paweł Szymański. The topic of the discussion was “Safety, Innovation and Prospects,” but it was the prospects that the participants mainly talked about. The presidents of the two airports spoke about development plans

42 polish market

for their airports, including the use of innovative technologies to increase passenger handling capacity, safety and passenger comfort.

“We have witnessed a rapid increase in air traffic in Poland. The recent years confirm this huge growth and it is projected that the coming years will also see growth,” said President of the Polish Air Navigation Services Agency Janusz Niedziela. “We assume that by 20302032 air traffic will have doubled. The main reason is that the population of our part of Europe have only started to grow wealthy. In June, 2,600 aircraft operations were registered in Polish skies. We have never recorded such a result before.”

The challenge discussed the most broadly was the rapid development of unmanned aerial vehicles, a rise in their number and their impact on conventional aviation and its safety. The Warsaw Declaration on the development of the market for unmanned aerial vehicles was signed in November last year. It is the first step towards EU-wide legislation regulating this quickly expanding sector.

“The Warsaw Declaration was our major success. We, as a country, were appreciated by

the international aviation community and the international institutions responsible for aviation safety,” said Director Paweł Szymański.

“The declaration is a basis for further activity aimed to regulate the drone market in the European Union countries. There is no denying that drones and safety are correlated. And one should remember that safety is a matter of overriding importance in aviation. However, the EU bodies are aware that this sector is a future and a chance for economic development.”

President Leszek Chorzewski, who said that decisions would be taken in the coming days to invest in the development of Warsaw Modlin Airport, spoke in terms of safety and economic performance. Among the decisions which were almost certain, he pointed to the construction of a direct railway link to Warsaw Modlin Airport and plans to build a new runway and expand the terminal. Interestingly, President Chorzewski spoke favourably about the Central Transport Hub, which in his view would not hinder the development of regional airports because it would have a com• pletely different role.

Defence Sector

LAW MUST BE FLEXIBLE. YOU CAN’T PREDICT HOW TECHNOLOGY WILL DEVELOP

PAWEŁ SZYMAŃSKI, Director of the Unmanned Aerial Vehicles Department at the Civil Aviation Authority, talks to Marcin Haber about the development of the unmanned aerial vehicle (UAV) market, the process of drafting EU legislation regarding UAVs, and safeguards against their unauthorised use.

Let’s first define the scale of the phenomenon.

The dynamic development of UAVs, known as drones, has taken place in the past few years. The number of licences issued to operators is snowballing. Is it possible to control such a dynamically growing market?

The first mention of unmanned aerial vehicles in the Polish legal system was made in 2011.

This amendment to the Aviation Law was crucial for the development of this branch. It authorised unmanned flights. Earlier the law had forbidden such flights. For a while the law was not enforceable because it lacked executive acts and detailed regulations. Relevant regulations were introduced in 2013. But 2014 marked a real breakthrough. That was when we started issuing certificates of competence. The market took off. Since then we have issued some 5,000 certificates, 1,000 of them in the past six months.

Just how fast the market is growing is evident in the fact that, while in 2014 we issued several PM

44 polish market

dozen licences, in 2015 there were already 1,500 of them. A lot of people have come up with very ingenious ways of using drones in various fields.

The certificate of competence we issue is a document which allows them to pursue their ideas in practice.

Your examinations are difficult enough to select those who are genuinely suited for the job of operating drones, but at the same time, they are simple enough not to become a big enough hurdle to prompt the emergence of a drone black market...

This branch requires very flexible regulations which ensure a proper safety level without hampering the market’s development. One should bear it in mind that we are dealing with stateof-the-art equipment, which is often small in size, whose flight at one given area takes a quarter of an hour or so. If we introduced too restrictive regulations, it might be difficult to enforce PM

Defence Sector them. We have managed to come up with regulations that are flexible enough for the market to accept, as is evident in the number of certificates we have issued. Under the regulations, drone flights are carried out safely.

certificate of competence wishes to fly a drone in Poland, we believe that since the French aviation authority has allowed that person to operate drones, all we require is that they observe our rules and regulations.

After all, safety is the number one consideration in aviation. Doesn’t the rapidly growing number of drones up in the sky mean more accidents involving them?

What matters in the drone market a lot is education and easy access to information. Hence, the many new mobile apps, web pages and information campaigns. It’s the key to maintaining safety given the growing demand for drones.

We have noticed that as more and more licences are issued, the number of incidents involving UAVs has not increased in a significant way.

We have the impression that this is because both users and the public are more and more aware of the risks. Legislation concerning this branch must ensure safety but it must also allow for the development of the market – in line with the recommendations of the European Commission. It must thus be a balancing act on our part.

We do not wish to, and we should not stand in the way of the market’s development. Drones are, after all, the future of many Polish industries. Besides, we are aware of the great potential of Polish technologies. Any attempt to curb the market would cause negative side-effects in several areas. We want drone flights to continue, but our responsibility is to make sure that they are conducted in a safe manner.

Does it work the other way round?

Regrettably, not always. Certificates issued by the Civil Aviation Authority are not respected in all countries. This is mainly due to blank spots in international legislation, rather than because Polish drone operators are not properly qualified. In fact, our level of operator training is very high.

PM

Talking about EU legislation, there are those who say that the Polish law is somewhat ahead of legislation adopted in other countries. If you travel to another EU country, it is not always clear if you will be allowed to operate a drone or not. And if you are, what rules and regulations should you follow? Is work underway on the harmonisation and alignment of regulations?

At the moment there are no EU regulations in this respect. Work is in progress on amending a directive which regulates the entire aviation market in Europe. It’s the EU equivalent of the Polish Aviation Law. Unmanned Aerial Vehicles are to be included in this directive.

We expect that work on the directive will take another two to three years. When the directive is introduced, it will allow Polish companies to operate throughout the European Union based on a single set of rules. Right now it happens that a Polish drone operator faces obstacles hoping to offer services in the Czech Republic, Slovakia, France and Germany. Interestingly, Poland is very much in favour of drones. In line with the provisions of the Aviation Law, we recognise documents authorising drone service providers from any EU country.

If a French citizen who has obtained a French PM

PM

Paris it is already possible to ride on a driverless underground train. It may still be a 2D, rather than 3D operation, which is required by aviation, but it’s a good start. Surely the first pilotless passenger flight will be the cherry on top of the UAV market sector development cake. When it comes to large self-flying planes – take away military flights which already involve some massive craft – the first large pilotless planes are bound to be cargo planes. Only when the world is convinced that such cargo flights are safe will it be possible to think about pilotless passenger aircraft.

How is the Polish aviation community responding to the development of the UAV sector? What I have in mind are mainly those in charge of Polish airports. They must surely perceive drones as another safety threat.

Airport managers are aware of the need to ensure the safety of passengers whose aircraft take off and land at their airports. They take a rational approach. They realise that unmanned aerial vehicles are here to stay, and there is no point fighting them. One of the Polish airports, Poznań-Ławica, conducts educational campaigns in local schools. Guided by our ‘Fly wisely’ campaign, they educate potential drone users. Our educational campaign is directed at the general public, and we encourage all those interested to take advantage of the information we provide. Of course, education is the simplest way of preventing aviation accidents. Physical means of prevention are also being explored, including various anti-drone systems. Technologies like this are already available but they are not in use in Poland just yet. Most incidents are caused by people who have bought a drone but are not aware of the rules and regulations governing its use. Most frequently, recorded incidents are not high-risk events but those caused by insufficient knowledge or lack of imagination.

PM

You reckon that it will take two to three years for the EU legislation to be adopted. We earlier spoke about how much has changed over the past three years in Poland. Aren’t you afraid that, by the time EU law is adopted, the market may have gone off in a completely different direction, and the law may be inadequate?

We are talking about a technology which we – legislators – can never catch up with. When we compile a draft regulation, we can never be sure what new purpose drones will be used for just one week from now. It may turn out that we were unable to predict it. Hence the assumption that the legislation must be very flexible. What may be achieved in terms of drone technology within the next three years may revolutionise the aviation market. Civil aviation authorities from all over Europe take part in drafting the regulations. The industry and manufacturers, including market giants coming from China, are also involved. I thus believe that ultimately the regulations are bound to work. As soon as they are ready, they will need to be updated in line with technological progress. One should be aware of the fact that the provisions of EU legislation are fairly broad. They do not just concern aviation safety but also public safety, as well as a topic of crucial interest to the EU, namely the protection of privacy. It is thus interdisciplinary legislation which takes more time to draft.

PM

For the time being, UAVs are small, but there is more and more talk about self-flying planes. How soon can we expect to see them in flight?

It’s difficult to say precisely. According to a Road Map prepared for the European Commission a few years ago, the first pilotless passenger flights could be expected to start by 2029.

That’s not too far off. Judging by aviation technologies currently in use, it is basically possible even now.

PM

Planes already take off and are guided for landing in an automated fashion…

That’s true. But the problem is how to convince passengers to accept these solutions. In PM

One of the prevention technologies, which is already applied by DJI – the number one drone producer – is a GPS blockade. In Warsaw drone flights were already banned over the PGE Narodowy stadium. Are you working on more regulations that would introduce such restrictions?

To introduce such technological safeguards, you need to obligate manufacturers to comply with them. They must be compatible with potential drone flight control systems which will be in operation in the EU. The idea of ‘virtual walls’ preventing drones from flying into restricted areas is included in the package of draft legislation we spoke about. The European Union wants to obligate producers to only sell those drones in the EU that are compatible with these safeguards.

• PM

7-8/2017 polish market

45

5-6/2017 polish market

46

Economy

WE CAN REACH AGREEMENT BY TALKING TO EACH OTHER. TOGETHER.

ZYGMUNT BERDYCHOWSKI, Chairman of the Programme Council of the Economic Forum in Krynica Zdrój, talks to Ewelina Janczylik-Foryś.

Last year’s theme of the Economic Forum was “Europe facing challenges – united or divided?” Was there any clear answer to this question?

Both then and now it is difficult to think of an answer which would be satisfactory to those who decide about the future. Those who would like to accelerate the integration process and those who believe that we should be careful will have various opinions about the course of such debates. What is the most important to us, the organisers, is the fact that such conversations are taking place. Both political camps must talk to each other, and confront their attitudes, as only then will there be any chance of continuing the European project. It’s difficult to think of the European Union without conversations, meetings and consultations.

PM

My question about last year’s Economic Forum is not accidental. The theme of this year’s forum is “Project Europe − A recipe for the coming decades?” What would be your recipe?

Nobody has a specific recipe today. A conversation about how the European Union should function will go in different directions, depending on the time and place of the debate. This is because the European partners find themselves at various stages of development and are facing different problems, which makes them perceive the process differently. The most important thing is talking to each other. It’s essential that the decision-makers be aware that there are many parties involved, each having its own expectations, and we can’t just ignore them.

PM

It seems now that decision-makers are having a hard time reaching a consensus. Is the European Community just going through temporary problems and challenges, or approaching its downfall?

If we boil everything down to what has happened in Europe to the events of the last 12 months, it might seem that the European Union has failed. However, considering the last 70 years, a relatively peaceful time of integration and economic development, it has been a huge success.

PM

Poland is an example of such a success. Our country has benefitted from EU integration.

Each Member State defines the problems which need to be solved, and prioritises them, according to its own hierarchy. We Poles have fared PM

48 polish market

8.PKO RUNNING FESTIVAL

8-10 SEPTEMBER KRYNICA-ZDRÓJ, MUSZYNA 源 动 行 切 一 的 们 我 。 求 需 的 自于您

PRIZE MONEY 500 OOO PLN OVER 30 RACES - OVER 300k OF COURSES CONCERTS • SEMINARS • KIDS ZONE • EXPO WITH 150 EXHIBITORS

------ www.runningfestival.pl -----TITULAR PARTNER

PARTNERS

-�MOSiR

WIŚNIOWSKI

Bank Polski

Meet us at SIAL 2016 Hall W4 stand B076 欢迎来访上海中食展W4展厅B076展台

Economy better when it comes to economic and free market issues than others. This doesn’t mean that the EU is plagued only by the problems we find the most important. Other EU Member States might not attach such importance to them.

Each country has its own issues.

us since. What is 30 years in the history of Europe, in the history of a continent? We will find common ground. It’s only natural that rising expectations and dreams could lead to progress in European integration. This needs time.

What are the problems currently facing the EU? Are migration and refugees the only issues?

Refugees of course, but also extremism and terrorism. These are huge problems which require almost instant solutions, mentioned in the same breath. Looking deeper, we need to talk about creating more joint institutions which embrace mechanisms ensuring greater freedom of service provision, capital transfer and human-resources movement. We can clearly see that it is not just Poland which is willing to make strategic decisions to further its economic development. The directive concerning the posting of workers (its September 2016 version states that all businesses operating in the European Union sending their employees to work abroad must, among other things, pay them the minimum wages applicable in a given country) is the best example of our clearly contradictory interests. As we are opening up our economy and providing guarantees of freedom in investments, capital transfer and movement of workers, we are naturally expecting that our partners will provide the same. I believe that, sooner or later, someone will suggest solutions which will satisfy all parties.

Previously, everybody saw the European Union as very strong, untouchable. However, Brexit introduced a lot of doubt. People are asking what is more important, the good of a nation or the good of the European Community. The EU is now in the midst of debate about accepting refugees.

During his speech in Poland, US President Donald Trump rightly said that the foundation of responsible thinking about the future must be the memory of the past. Without tradition, without referring to such values as the nation and religion, every process can run aground.

It’s hard to imagine immigrants becoming the driving force of European integration. That’s just impossible. European integration might be fuelled by Germany, France or Italy and their positive and negative experiences.

PM

And Europe is indeed divided when it comes to the attitude to refugees.

This is natural. It’s because we’re so different that we create something unique.

PM

But can we agree on a single path to follow?

30 years ago there was no European Union.

None of the liberties and facilities it has brought PM

50 polish market

Let’s hope everyone thinks this way and we’re not going to deal with tough players who refuse to talk.

This period has been one of the longest times of European prosperity. The process of European integration is beneficial to everyone, not just Poles. It’s in our common interest, including that of our partners. It is also thanks to this integration that both Germany and the UK benefitted from Poland’s accession to the European Union. It’s important to speak about this. It’s good for both the old and the new EU countries.

PM

How does Poland fit into Project Europe?

Just like other countries. Our solutions are sometimes good, sometimes less so. There are times when we defend our interests and other times when we support others. We bring grand ideas to the table or discuss minor matters. What constitutes the European Union is in us too. We’re no different from others.

PM

PM

Only then can we reach a consensus in Europe based on the interests presented by each partner. If we try to accomplish something “under the table”, then such a project is bound to fail.

Are we an equal partner in international relations?

I wouldn’t stress that too much. If we consider our economic potential, we’re still not an equal partner. But the European Union is not the kind of project in which your voice and position are determined only by the strength of your economy. It’s also often the combination of your ability to find other partners and events you have no control over. Poland has a lot to do to catch up when it comes to economic development. However, economic growth is not a goal in itself. That’s why there are many areas in which we should introduce other goals to guide the European Union.

PM

What goals could these be?

Concepts related to migration policy, relations with neighbours, freedom to provide services, and many others. There is no shortage of problems. We need to identify, discuss and find appropriate solutions to them.

PM

To find appropriate solutions we should look at issues in the longer term. Yet here we are, stuck in a constant pre-election period with just 4-years between elections. When a new government replaces the old one, our goals might change too.

No matter who is in the government, it’s difficult to imagine that everyone will just accept solutions such as those regulating the posting of workers. Secondly, as far as immigrants are concerned, surveys have shown that 70% of Polish people do not want our Government to let African immigrants into Poland. This is also important, as we have a different attitude to the immigrants who come from, for example, Ukraine. It’s hard to believe that any authorities elected by the people could make a completely unpopular decision.

PM

We’ve seen this happen. The previous Government agreed to take 7,000 refugees.

This is why it lost the election. I think it was one of the decisive factors. I believe that we need to protect our interests in every single matter.

PM

This year’s is already the 27th Forum. What can be done to protect the concept behind it from being invalidated? A lot of people are saying that this has already happened.

My response is very simple: 15 years ago we were told the same thing. At that time no more than 2 thousand people came to Krynica on this occasion. Now there are twice as many. Last year we had over 3,500 guests from 65 countries and more than 600 media people. Those who watch us closely, including the ones who are not entirely satisfied, see that the concept has been evolving. The most important thing today is to enter into direct conversation and establish contact with people. I can’t overstate how important it is. It’s good that the meetings industry is developing. The Forum features over 180 debates divided into thematic areas.

They encompass energy, macroeconomics, innovation, local governments and even healthcare. These are huge investments involving a great deal of financial and social capital. None of these subjects could be omitted.

PM

The Economic Forum in Krynica is not everything. For several years it has been accompanied by the “Runs Festival”. Is it because you’re a marathon enthusiast?

Perhaps. However, when we look at 21stCentury Polish pop culture, we can’t help but notice that running has won a special place in it. It’s not just taking care of your health, it’s also the proper thing to do. Running is a social phenomenon that sets us apart from other people. We tried to create an event taking advantage of the trend for running. We wanted to add even more positive emotions to our economic meetings. I think we’ve succeeded. With a lot of effort, step by step, we are pushing forward. In 2009 we organised the Runs Festival for the first time, and 600 people came. Currently, over 8,000 participants have registered for this year’s festival.

• PM

Economy

A SMART BUILDING

IS LIKE A LIVING

ORGANISM

Global Control 5 is present in almost 40 countries in Europe, Australia and Oceania, Africa, the Middle East and Asia, with its R&D and manufacturing fully based in Poland. Its BMS (Building Management System) system has been implemented in the Mall of Africa, Johannesburg’s largest shopping centre with a floor space of over 220,000 square metres. All this has been achieved within two and half years of the company’s operation. Adam Półgrabia, President of the Board and CEO, Marcin Płoski, Vice-President of Business Development, and Tomasz Bal, Vice-President of Product Design, talk to Marcin Haber about Global Control 5, building automation and trends in market development.

Could you first explain what your area of operation, building automation, is about?

Adam Półgrabia: It’s an automated system which controls all features that ensure comfort and are expressed in specific physical parameters: temperature, air humidity, lighting, carbon dioxide levels, opening and shutting of windows, using blinds and the like. To ensure these conditions, values of particular parameters are first measured with the use of sensors placed around the building: temperature, humidity and other sensors. Then, the data gathered from the sensors is compared with pre-set values of target comfort. If these values do not match the pre-set values, individual systems are switched on such as air blowers, coolers, heaters and lighting until the required conditions are achieved. Besides achieving the target comfort level, building automation reduces the cost of property maintenance and management which is crucial for investors and facility managers. Sometimes we compare these systems to the systems that control the way the human organism works. They include the brain (controllers), which has everything under control. Then there is the nervous PM

52 polish market

system (Input/Output modules), which connects the brain with receptors (sensors), muscles (actuators), etc.

Marcin Płoski: We operate in the BMS (Building Management Systems) area. Building automation is meant to automate certain processes taking place within the building in terms of HVAC (Heating, Ventilation, Air Conditioning) and lighting control, in order to ensure maximum user comfort and energy efficiency. BMS can be compared to our senses. It lets us notice deviations from the pre-set parameters without our physical presence in the building. Controllers fitted as part of the system never grow tired and need no rest. They are active 24 hours a day.

So the goal is to optimise building management?

Marcin Płoski: It is meant to be effective to the maximum from the point of view of energy efficiency, while at the same time ensuring ultimate user comfort. It is also worth mentioning that the solutions we offer are scalable. In office buildings, which is the case that is the easiest to explain, solutions like these are PM

used mainly because – without automation – it would be necessary to hire several specialists responsible for particular areas. One would control lighting, another one air conditioning, yet another water supply systems. Thanks to our systems, all this can be controlled by a single person from a central control room within the building, or it can be done remotely. The operator can have access to the entire system through a web app. In case of failure at any point, the operator will be alerted at a very early stage. It may well be that no-one present in the building will notice that anything has gone wrong but the problem will already be diagnosed by the operator. I have mentioned BMS use in office buildings and in other large facilities, but the systems can be applied in what are known as Smart Homes. On the other hand, if you manage, say, a chain of restaurants situated around the world, you can manage them from a single point through dispersed installations.

This kind of monitoring makes it possible to prevent major failures, doesn’t it?

Marcin Płoski: Of course it does, thanks to the fact that the administrator is PM

Economy

Adam Półgrabia

DECISIONMAKERS ACCORDING TO HUMAN NATURE DO NOT WANT TO BE DEPENDENT AND DOOMED TO ONE SOLUTION THROUGHOUT THE LIFETIME OF THE FACILITY.

instantly alerted that, say, the heat pump has not switched on. Unless it does, temperature within the building will drop, and it will be costly to heat it up again. But, when the system lets us know about the failure, we can react promptly to ensure maximum comfort and cost efficiency.

To quote the metaphor of the human organism you used, how many elements of the system do you have in your product line?

Adam Półgrabia: To stick to the analogy, we offer everything from brains through the nervous system to receptors…

Marcin Płoski: … and down to the network capable of filtering all the data and offering the client end-information. Of course, the operating systems such as ventilators, heaters, lighting and the like, are not our area of interest. We offer sensors, which form the basis. We also provide controllers whose aim is to monitor the system's operation 24/7 in order to maintain the pre-set parameters. We also offer Input/Output modules and DDC, FCU and room controllers. All those elements are linked by Supervisor, which is software we also have in our offer.

right now. Thanks to it, we have a full scope of operations: Edge, or lowest-end modules, up to Enterprise, that is cloud solutions, and BigData, which is currently very popular.

So apart from hardware, it also includes software?

Marcin Płoski: It’s software within the Edge-to-Enterprise model, which is popular

How is your system different from similar ones offered by other suppliers?

Marcin Płoski: We build user-friendly and engineer-friendly systems and installations.

PM

PM

PM

Marcin Płoski We are constantly searching for ways to enhance the equipment we manufacture for easier customer use. Our products are sold under the iSMA (Intelligent Solution Managing Automation) brand. They are among the world’s few that operate in both most popular communications protocols: Modbus and BACnet.

Tomasz Bal: When it comes to features that set us apart from other suppliers, it has to be mentioned that we are a Polish manufacturer.

In this way, we are joining a world trend. For several years now manufacturing firms have been paying more attention to the business environment which facilitates supply chain management, boosts brand awareness and makes it possible to select the best location for the manufacturing plant. It all makes us more attractive because our plant is based in Poland. In addition, the fact that the manufacturing goes on in Poland, enables us to react faster to our needs, to create fresh offers for customers, and to shorten the time needed to launch new products on the global market.

What exactly are the protocols you have mentioned?

Marcin Płoski: During the evolution of automation, a number of system suppliers have emerged. Each of them has been using their own solutions. For a management system meant to control all the systems within a building to be able to link them together, PM

7-8/2017 polish market

53

Photo: Bartek Banaszak

Tomasz Bal

Economy

our solutions from the lowest level upwards naturally enables the entire system to be optimised and cuts start-up time. Of course, this makes everything even more cost-effective.

Are you following the intuitive appliance and open system trends?

Adam Półgrabia: It’s crucial. We are determined to follow the trend which is becoming dominant in business. The closed solutions model is losing popularity. Decision-makers according to human nature do not want to be dependent and doomed to one solution throughout the lifetime of the facility PM

a communication protocol is necessary. To put it simply, if two people want to talk to each other, to make conversation smooth, they need to be using the same language. Otherwise, the conversation will fail. It’s the same in automation. Protocols are universal languages in which various machines communicate. Over the years hundreds of such protocols have been developed. When the system offers a large number of such protocols, the building’s administrator has a better choice of equipment they can use.

The system should be able to ‘chat’ with pieces of equipment coming from possibly the biggest number of suppliers – to work with as many protocols as possible. The Niagara Framework software, which is in our portfolio,

Source: biznisafrica.com, proxit.pl

iSMA solution implemented in Mall of Africa

54 polish market

has more than 200 protocols. Our solutions can operate in the cloud and work with Big Data and the Internet of Things. The final requirement is the ability to work in the web technology. Bearing all this in mind, we have developed products in Poland which fulfil one of our major goals, which is maximum openness.

Tomasz Bal: One should bear it in mind that a building has a great many installations and sensors which need to be integrated. If we developed closed solutions, we would place constraints on the work of building administrators, effectively forcing them to buy all, even the tiniest of parts, from us. Not everyone would be happy with this. We thus offer an open solution which can be freely combined with other producers’ solutions. Using

PM In particular in such a dynamically developing and unpredictable area as building automation and the broadly conceived Internet of Things…

Adam Półgrabia: In the world of today where technology develops very dynamically, the possibility to choose is vital. Everybody is looking for open solutions. The sales of closed solutions are almost a thing of the past. Our whole portfolio is open, generalpurpose, engineer- and installer-friendly and very functional. Usually our solutions offer the customer more than our competitors do. Our product always has to have added value. We build functionality on the basis of optimum fulfilment of objectives.

Marcin Płoski: We follow trends on the foreign markets we are present in. We notice that more attention is often paid to human labour costs and not the final price. An hour’s work is becoming more and more expensive in foreign markets. People expect user-friendly solutions: ideally, to be able to use one mobile app to launch all the building’s systems.

Aware of these trends, we realise that we need to offer products that are as user-friendly as possible, where the need for assembly and a human operator’s involvement will be limited to a minimum.

Tomasz Bal: We produce our systems with the latest technological solutions in mind. To this end, we use the latest 3D instruments and components provided by such world giants as NXP, Microchip, Texas Instruments and Analog Devices. When we work on a new product, we always look ahead because we are aware that the IT branch develops very rapidly. We cannot afford to let the product to become obsolete too soon. We employ Polish engineers and programmers who are regarded as some of the best in the world. Apart from our solutions being stateof-the-art, our products meet world standards, certificates and are ready to be sold even in the most demanding markets like US and • Canada.

Economy

KATOWICE SPECIAL ECONOMIC ZONE: BRIGHT PROSPECTS AND A PERFECT PLACE TO INVEST JANUSZ MICHAŁEK, President of the Katowice Special Economic Zone, (KSEZ) and PROF. BARBARA PIONTEK, Vice-President of KSEZ, talk to "Polish Market".

Board changes always offer an opportunity to re-define the company’s operating strategy. What about KSEZ? What are the zone’s goals for the next few years?

Janusz Michałek: Shortly after I undertook the mission of heading the Katowice Special Economic Zone Plc. based on the decision of the Shareholders, I said that I did not envisage any radical, revolutionary changes compared to the zone’s activities to date. I stand by what I said. Of course, the natural consequence of a new company board being appointed is a correction of policies as regards the functioning of the company itself, as a corporate law entity and as an instrument of securing fresh investment, as well as regards the development of the areas in which we operate.

In the new setup, the board has been functioning since the beginning of July. We are now at a stage of preliminary drafting of objectives for the new KSEZ strategy. My goal is to come up with such a strategy covering at least the present board’s term, which expires in 2022. One should bear it in mind that, among other things, the current principles of state aid in European Union countries will remain in force until 2020. In our plans we must take into account possible new rules governing state aid within the EU. The present strategy is based on existing rules in this respect PM

and naturally a correction will be necessary once regulations change at the level of EU law.

On the other hand, advanced work is underway at the Ministry of Economic Development on changes in terms under which entrepreneurs will be able to benefit from state aid in the form of concessions and corporate tax incentives. In this new system, a significant role is envisaged for companies managing special economic zones. However, these companies will need to update their procedures regarding incentives offered to investors once the planned regulations are introduced. All the more so since – as earlier announced by the Ministry of Economic Development – Special Economic Zones will be expected to expand their activities beyond their own territories.

What has been described as a zone without borders will surely make our job easier when it comes to attracting fresh investors. To define the final shape of the KSEZ strategy, it is necessary to take into account all external factors and the new regulations.

Site preparation and securing new investors will still form the core of our activities. However, attracting investors and encouraging them to stay will also hinge on our additional activities, namely the development of cluster structures and vocational training and higher learning-oriented activities conducted in conjunction with relevant

government ministries. These activities are already being pursued, and we intend to develop them further. It seems obvious to me that a labour market structured according to certain guiding principles will constitute one of our competitive advantages in securing fresh investments in years to come. On the other hand, I’m convinced that cluster structures will make it possible to strengthen local Polish firms through forging their co-operation schemes with companies operating within the zone. One possible area is technology transfer.

In line with Polish legislation Special Economic Zones will be in operation until 2026. Bearing this in mind, is this a decisive factor in negotiations with investors?

Janusz Michałek: Polish Special Economic Zones are allowed to operate for a specific period of time within a strictly defined territory. Both of these constraints have undergone modifications over the years. Zones change their borders from time to time, while the date until which they will be allowed to operate has been changed twice, first to 2020 and then to 2026. Of course, the length of the period until which the permit is valid matters a lot to the entrepreneur. During this time an investor enjoys the benefits of corporate tax incentives. It is one of the crucial PM

7-8/2017 polish market

55

Economy considerations before the investor decides to commit to this particular zone. Consequently, from now on, the attractiveness of the zones will be decreasing with each passing year because the period of tax breaks will be shortened. Other competitive advantages will thus grow in importance, such as the aforementioned clusters and a labour market supported by a business-oriented education system.

However, there is one simple solution to the problem of the time limit on the functioning of the zones, namely the individual setting of tax relief period lengths for each project implemented by an investor. In this way entrepreneurs will not be dependent on the length of the period when the zones will be allowed to operate and each of them will enjoy the same period of access to state aid.

How is KSEZ finding its feet in the changing environment under the current government Strategy for Responsible Development, which places a much greater emphasis on the expansion of Polish companies rather than on attracting FDIs? Barbara Piontek: The Strategy for Responsible Development is aiming to even out opportunities for individual regions also in terms of investment and building economic sovereignty. The zone is equally open toward foreign and Polish investors. Many of them already function within the zone, which has become their development path. Very often in the debate on Polish versus foreign investment, one encounters extreme views. Meanwhile, in my view, what we need is a good investor, no matter whether they come from Poland or abroad.

Unfortunately during the period of market transition in Poland, it often happened that investment projects involved small-scale investment, and were really assembly plants which benefitted from a low-wage Polish labour force. We now intend to attract Polish and foreign investors who will perfectly fit in with the environment: they will bring in their know-how, benefit from the best potential our region offers – they will work together with top-class specialists in their field of work, very well educated staff, thus creating quality jobs. This appropriately defined integration of the investor with the environment can be achieved through a correct setting of objectives (development priorities), explaining them to those involved and their acceptance. In the case of integration perceived as the building of a new, uniform economic structure, this may be difficult to achieve, but it is possible. That is why we will be able to treat all investors, both foreign and Polish, in the same way. They will enjoy the same rights within Special Economic Zones.

Many Polish entrepreneurs who have invested PM

56 polish market

in KSEZ are doing very well, in fact they are expanding their operations. Others are following in their footsteps, which makes me very happy. In this way we can successfully develop regions because this form of integration guarantees sovereignty and the implementation of the government-adopted development strategy. Our priority is to deliver a clear message that KSEZ offers excellent opportunities for investors to develop. In a nutshell, it is the best place to invest.

Another important question is the fact that our zone will offer a real chance to move away from the polarization-diffusion model.

I presented my reservations about the concept in my expert opinion regarding the National Regional Development Strategy 2010-2020, as well as in the National Enterprise and Local Government Programme (2010). In the latter I outlined an alternative to the polarizationdiffusion model. Evening out differences in the level of development is one of the priorities of the government development strategy.

Yet another important function of Special Economic Zones is, I believe, their role as a key partner for local government in boosting their economic activity. That is why in line with the Strategy we are undertaking moves, which on the one hand are expected to maintain positive trends in areas of intensive investment activity. On the other, we will do our best to trigger investment processes in areas where support is needed to make it happen. Boosting local business activities is a way of implementing the provisions of the Strategy.

This particular area is of special interest to me personally because for almost twenty years now I have conducted research into the theory of growth and growth management.

That’s why I believe that changing the focus in strategic thinking from growth toward development is the right way to go when it comes to economic development.

PLN 1.66 billion is the sum of money pledged by investors in permits issued

by KSEZ in the first half of 2017. What can we expect from these investment projects?

Could you reveal some details?

Barbara Piontek: In the first half of 2017 the Zone issued 520 permits for investments with a combined declared value of PLN 1.66 billion. Investments secured for the Katowice zone this year will, above all, make it possible to create quality jobs and to further develop the region by strengthening its position. Yet another time we are proving that the zone genuinely deserves the position of being Europe’s best and the world’s second best Special Economic Zone. We are expanding our support for entrepreneurs who invest their capital in KSEZ. We wish to assure existing PM

WE WISH TO ASSURE EXISTING AND FUTURE INVESTORS THAT WHEN THEY BRING IN THEIR KNOW-HOW THEY ARE ENSURED STABLE AND RAPID DEVELOPMENT, AS WELL AS OUR SUPPORT TAILORED TO THEIR INDIVIDUAL NEEDS. and future investors that when they bring in their know-how they are ensured stable and rapid development, as well as our support tailored to their individual needs.

Based on negotiations currently underway, can we expect that the second half of the year will also fetch similar results?

Janusz Michałek: The influx of so much investment this year comes as no surprise to us.

Our sites are very attractive, also in terms of their preparation. Considering Poland’s current economic growth rate, one can expect this positive trend to be maintained also in the second half of the year. The number of letters of intent we have received, which are now being considered, is the best proof of that.

We are happy not just about the inflow of investments themselves, but also about their high quality when it comes to technologies and the quality of jobs created in the zone.

What makes us particularly optimistic is the fact that small and medium-sized firms representing Polish capital are coming in. Investments like these are a litmus test for the state of the Polish economy. They also disprove what I regard as an unjustified opinion that Special Economic Zones are a vehicle for large companies representing foreign capital. This may have been the case in the early days of the zones in Poland. But in the past few years we have witnessed an inflow of firms from the Polish SME sector into the Katowice Special Economic Zone. These are often firms which already co-operate with companies operating within the zone.

• PM

Culture

7-8/2017  polish market

57

Economy

THERE IS NO ENTREPRENEURSHIP WITHOUT CREATIVITY!

This message should accompany young entrepreneurs or encourage those who think and dream of starting up their own business based mainly on new innovative technical solutions.

Thus, many activities of the Patent Office of the Republic of Poland are addressed to young professionals, entrepreneurs, startups or scientists who wish to implement their solutions to economic and social practice. At the forthcoming International Symposium in Kraków we will convince you that nowadays it is not possible to achieve a truly competitive and innovative success if intellectual property is not created, protected and managed.

ALICJA ADAMCZAK, PhD, President of the Polish Patent Office

umerous studies and analyses indicate that we have extremely talented young people and very active communities of students and doctoral students.

Young Poles are very ambitious and have entrepreneurial spirit, and at present this is reflected in the high frequency of establishing and developing their own economic activity or commercialization of their solutions in the market. A manifestation of this, are, for example, powerful startups’ communities, which are doing superbly well not only in their domestic environment, but also in the global one.

It should be emphasized that the Polish startups are as creative as those from the Silicon Valley, Israel or Cambridge, however, unlike them, the Polish startups have a different starting point for business activity: difficulties in accessing capital, especially the domestic one, as well as a low, though steadily growing, awareness of the issues related to the protection of intellectual property. That is why, among others, the Patent Office of the Republic of Poland organizes an international scientific symposium on ”Intellectual Property in Innovative Economy” every year, addressing the issues of financing high-risk investments and intellectual property management practices in companies and research and development units. The nearest symposium will be held on 7-8 September 2017 at the International Cultural Centre in Kraków.

The topics of this year’s Symposium on ”Startups and What’s Next?” will include issues related to technology transfer from universities to industry, valuation of intellectual property rights and risk assessment related to their implementation, as well as industrial property risk management, role of industrial property in the business strategies of enterprises, the course of technical innovation

IP-related alternative dispute resolution by means of mediation and arbitration will be another important topic raised during a session and workshop organised jointly with the World Intellectual Property Organisation.

This thematic orientation is linked to the activity of the Polish Patent Office undertaken with a view to establishing a system of mediation and arbitration in IP disputes in Poland, which is expected to support our entrepreneurship and provide a powerful tool in IP disputes, mainly with foreign entities.

The Symposium will be attended by entrepreneurs, rectors of universities, scientists from universities in Poland and abroad, presidents of patent offices from the member states of the European Patent Organisation, central and local government officials, specialists on technology transfer and innovation management. It is worth mentioning that the list of speakers of the Symposium traditionally includes acclaimed national and international experts from such countries as Israel, the United States, England, New Zealand, Germany, and, this year, also the Singapore. Representatives of SMEs, intermediaries, universities and R&D units, patent attorneys, companies and organisations which build their competitive advantage on IP protection and innovative solutions will also be the Symposium’s guests.

Long-standing partners of the Symposium include the World Intellectual Property Organization, Jagiellonian University in Kraków, universities of technology from Warsaw, Kielce, Kraków and Wrocław, AGH University of Science and Technology and the Marshal's Office of the Małopolska Region.

This year’s symposium will also be co-organised by the Embassy of the United States of America, the Embassy of Israel, the Ministry of Science and Higher Education and the • Industrial Development Agency.

N

58 polish market

commercialization processes, as well as financing of innovative undertakings. The Symposium will also comprise panel discussions on practical aspects related to industrial property, workshops and parallel sessions.

The subject-matters of the Symposium are closely connected with the activities of the Polish Council of Ministers aimed at supporting Polish entrepreneurs and scientists and will be devoted to the management of intellectual capital, with a particular focus on startups' operation. Numerous examples and statistics indicate that a startup is an increasingly popular form of doing business, especially among young entrepreneurs. Many of these companies base their competitive advantage on intellectual capital and innovation. In this context, it is extremely important to be aware of the need for legal protection of innovations belonging to a given organisation, as well as to continuously broaden the knowledge of intellectual property management and the possibilities for its protection. Higher education institutions play a very important role in shaping innovative attitudes and generating novel solutions, which can then be transferred to industry and commercialized, among others, through startups.

In Poland, the significant role of higher education institutions is proven by the activity of the Academic Entrepreneurship Incubators carried out over more than ten years.

This year, following on from the subject matter of startups, we will try to answer the question: startups and what’s next? It seems particularly vital that startups should transform into stable and developing Polish enterprises, able to compete globally and do not just end up being sold abroad. In this vein we will analyse the scale-up process from three perspectives: academia, business, as well as VC and supporting institutions. We will furthermore present both public and private instruments for supporting business activity of a startup.

POLISH MARKET

Events

AWARDED WITH THE EUROPEAN MEDAL

O

Photo: BCC

n 7 June 2017 the Redutowe Rooms of Teatr Wielki – Polish National Opera in Warsaw hosted the finals of the 28th edition of the European Medal.

The event was organised by the Business Centre Club and the European Economic and Social Committee in Brussels.

Ewelina Janczylik-Foryś, Deputy Editor-inChief, receives the European Medal for Oficyna Wydawnicza Rynek Polski, the publisher of the Polish Market magazine.

132 companies received European Medal awards in this edition. Oficyna Wydawnicza Rynek Polski Sp. z o.o., the publisher of the Polish Market magazine, was again honoured with this distinction.

The hosts of the ceremony were Grażyna Majcher-Magdziak, President of the Verification Committee; Maciej Grelowski, President of the Main Council at BCC; Marek Goliszewski, President of BCC; and Gen. Leon Komornicki, member of the Council of Organisers of BCC. Grażyna Majcher-Magdziak, President of the Verification Committee, shared her reflections on the European Medal: “The European Medal event is important, not only to the award-winners, but also for BCC. As a rule, the products and services of the companies which are members of the Club represent high quality. The best competition entries are selected on an individual basis. The European Medal is not only a source of satisfaction for the award-winners but also

of information obtained from competition entries. They show which industries are currently on the rise, which products are being developed, and which segments are essential.”

Maciej Grelowski, President of the Main Council at BCC, congratulated the winners on having taken the risk of subjecting themselves to verification and that it turned out to be positive. “The goal of the organisers of the European Medal was to inspire EU-enthusiastic attitudes. Now it is an attempt to stop EUscepticism. The winners of the Medal are obligated to support the idea of EU-enthusiasm.”

Marek Goliszewski, President of BCC, congratulated the winners. He admitted that they were receiving their distinctions at a special time. “Now Europe is at a crossroads, and is seeking new paths in this complicated world.

Euro area countries are also seeking the best ways to be partners to the rest of the world.

Poland is also participating in discussions on the EU and NATO. In Europe there are more and more such discussions. I hope that in Poland this debate will continue to develop,” emphasised Mr Goliszewski. “The European Medal and today’s event is not only a sign of recognition of the inventiveness, hard work, courage and determination of the laureates and of the quality of their products but also a living proof that they form the EU, and that it is needed. The EU is going through a difficult phase, but we will overcome the hardships together with other Europeans. In Poland support for the EU is decreasing, there are voices questioning the purpose of being in the EU and of entering the euro area. The results of your activities are a proof that this is not the case,” the President of BCC said to the winners.

“We must oppose populism with your achievements. Let us hope that a partner-like debate will be launched on how to improve the EU and not how to exit it. We must be in the eurozone - this is our patriotic duty. We must be in the fast-track EU. Let us hope that we will not be forced to fight for the EU and the eurozone like for independence.”

The Honorary European Medal was awarded to His Excellency the Ambassador of the Federal Republic of Germany in Warsaw, Rolf Nikel, for promoting EU ideas in our country and for activities aimed at bringing Poland and Germany closer.

Mr Nikel gave thanks for the honour of receiving the Honorary European Medal, and addressed his special thanks to President of BCC Marek Goliszewski. He admitted that the award was an incentive for the future for him. He added that the European Union faced not only internal but also external challenges which we had to face together. “Poland and Germany have a special role in this process. Both countries meet all the conditions to be among the top European countries. Poland belongs to the heart of Europe. The world will not wait for us,” he emphasised. “Let us work together.”

Another laureate of the Honorary European Medal was Marek Prawda, Head of the European Commission’s Representation in Poland, for his services to Polish entrepreneurs and to our country’s economy while performing the duties of Permanent Representative of the Republic of Poland to the European Union, and for his current achievements.

Mr Prawda was glad to receive the award in the presence of Rolf Nikel. In his opinion, Polish-German relations are resistant to changing conditions. “Certainly there are more and more people for whom the future of the EU is important. On the one hand, Eurosceptic attitudes are on the rise, but on the other there is a large dose of optimism. People also feel that it’s worth protecting the EU, that its achievements are crucial. The EU is aware of the necessity of reacting properly to new sources of discontent. The debate about the future of the EU also takes place in Poland,” Mr Prawda also told the audience that we had to be aware of our common points.

The city of Częstochowa also won the Honorary European Medal. It is a sign of recognition and gratitude to the city which is an example for the rest of the country in terms of cooperation between authorities and entrepreneurs, promoting EU ideas and strengthening the region’s economy.

The Medal was received by Mirosław Soborak, Deputy Mayor of Częstochowa. He said that being among the renowned winners of the Medal was a great honour. He also thanked Katarzyna Woszczyna, the Chancellor of the Częstochowa Lodge of BCC, for giving a reminder that the city and the business sector spoke the same language.

• 7-8/2017 polish market

59

Infrastructure

T

POLAND'S FIRST EARLY-PHASE TRIALS WARD

he Maria Skłodowska-Curie Memorial Cancer Centre and Institute of Oncology in Warsaw has been charged with setting up Poland’s first EarlyPhase Clinical Trials Ward dedicated to oncology. On 29 June 2017 the ward was finally launched.

The Early-Phase Ward has been set up as part of the Science and Industry Centre (CNP) under an agreement between the Maria SkłodowskaCurie Institute of Oncology in Warsaw, the leading comprehensive cancer care facility in Poland, and Roche Polska, a company for which research and development has always been the key business area in Poland.

Minister of Health Konstanty Radziwiłł, who was present at the opening ceremony, said that early-phase trials might be the only chance for some patients. “I hope that this initiative will also help Poland to develop its potential and innovation capabilities internationally, and also lay out a framework to facilitate the search for new therapeutic avenues for patients,” said the Minister.

The Early-Phase Ward is the product of joint efforts by a team of highly qualified researchers with long-standing experience in clinical trials, cooperating with researchers from diagnostic units, specialist clinics of the Institute and pharmacists from the hospital pharmacy. The Early-Phase Ward in Warsaw is the first facility of its kind in Poland to carry out oncological preclinical and clinical trials and tapping the potential of the Institute and its partner institutions. The Ward will provide cancer patients with an opportunity to benefit from new, innovative, therapies.

“The Maria Skłodowska-Curie Memorial Cancer Centre and Institute of Oncology in Warsaw, in cooperation with Roche Polska, an innovation leader in the medical industry, have launched a joint project – the Science and Industry Centre. One of the underlying aims of

60 polish market

INNOVATION IN MEDICINE:

our agreement is to set up Poland’s first centre for early-phase clinical trials in oncology. This facility will provide patients with access to the most advanced therapies and afford physicians and scientists unique research opportunities.

Also, it will open up new avenues for medical innovations in Poland. The Science and Industry Centre exemplifies a project which is building Poland’s innovation capabilities, embracing the new philosophy of economic development as put forward by the Ministry of Economic Development in the ‘Strategy for Responsible Development’,” said Iwona Ługowska, a clinical oncologist, head of the Early-Phase Clinical Trials Ward and coordinator of the Science and Industry Centre.

Roche Polska has invested more than PLN 1 billion in R&D over the last two years alone.

“I am very happy that for a number of years Poland has been such a significant spot on Roche’s map of global investment projects. Our country is the one that hosts Roche’s Global IT Solution Centre and International Centre for Clinical Research for Central Europe. However, the opening of the Early-Phase Trial Ward, which will provide Polish researchers with the opportunity to take an active part in all stages of research on the development of new cancer drugs, is an absolutely unprecedented event. It is the best conceivable example of symbiotic cooperation between science and business, which will result in the creation of medical innovations contributing to the development of a knowledge-based economy. Roche Polska’s involvement in the project does not preclude the possibility of cooperation between the Science and Industry Centre and other partners interested in developing innovative research projects in this newly established facility. We perceive our investment in earlyphase clinical trials as our long-term commitment towards patients to deliver to them new and effective medicines developed in Poland as

quickly as possible,” said Wiktor Janicki, CEO, Roche Polska.

“Accounting for almost 80% of all outlays and lasting about eight years, clinical trials play a key role in the process of developing a new drug, which takes an average of 10 to 15 years. Such large-scale research involving all phases of clinical trials has not been conducted in Poland so far because of the massive expenditures it requires and the lack of facilities", added Wiktor Janicki.

Financial support for the Early-Phase Clinical Trials Ward was also provided by the National Centre for Research and Development as part of the STRATEGMED II programme (ONCOTRAIL project). The first Early-Phase Clinical Trials Ward in Poland was conceived based on the experience of international centres, which makes it a potential driver of Poland's growing R&D status internationally.

“We are launching the Early-Phase Clinical Trials Ward with full logistics facilities and expert staffing. The endeavours aimed at the foundation of our centre went along with the exchange of experience between the parties involved, which resulted in the establishment of valuable relationships with research institutes in Europe and the United States. This would not have been possible without the partnership and commitment of the Maria Skłodowska-Curie Memorial Cancer Centre and Institute of Oncology in Warsaw and Roche Polska teams. The first beneficiaries of this cooperation, that is our patients, will appear in the Unit as early as the beginning of July,” said Iwona Ługowska.

The newly established centre will carry out scientific research to evaluate the safety and efficacy of modern therapies. The centre will conduct early-phase clinical trials, including phase I and phase II first-in-human and proof-of-concept trials, requiring strict monitoring of pharmacokinetics and/or pharmacodynamics, and studies evaluating biosimilars.

•

We Make Better Days No. 1

global generic company*

One of the largest medicine manufactures In Poland

2nd biggest

pharmaceutical company in Poland** * source: www.tevapharm.com; ** IMS Pharmascope sellout 2016/12 PO/GTV/17/0113

Over 700

medicines available in Poland

Over

100-year tradition worldwide

KEYWORD:

Medicine

CO-OPERATION

WIKTOR JANICKI, Managing Director of Roche Polska, talks to "Polish Market".

In late June we witnessed the opening of Poland’s first modern Early-Phase Clinical Trials Ward dedicated to oncology. Why did Roche decide to take part in this undertaking? Why did you decide to work in partnership with the Maria Skłodowska-Curie Memorial Cancer Centre and Institute of Oncology? Wasn’t it better to spend the money on your own R&D? For several years now Poland has been a very important place on the map of Roche investments. In the past two years alone, we have earmarked over PLN 1 billion for research and development in this country. The opening of Poland’s first Early-Phase Clinical Trials Ward is an unprecedented event. Its activities do not just present an opportunity for Polish researchers but it is also perfect proof that partnership between science and business is possible and that it can lead to medical innovation which will open new therapeutic opportunities for Polish patients.

Thanks to the participation of Polish experts in the studies, the Science and Industrial Centre will make it possible to develop unique know-how and to create in Poland an innovation ecosystem encompassing an innovative way of thinking and planning to enable patent protection of particles.

The partnership with the Maria Sklodowska-Curie Memorial Cancer Centre and Institute of Oncology in Warsaw demonstrates our commitment to the idea of corporate social responsibility. For us, it is a long-term commitment which is implemented with the development of Polish medicine and Polish researchers in mind.

We become involved in initiatives like this so that their results bring tangible benefits to future patients not just in Poland but also throughout the world. Work on developing new drugs takes years. It requires a lot of effort by researchers and considerable funding. The results come after some time. The inclusion in the process of a renowned academic centre like the Maria Skłodowska-Curie Memorial Cancer Centre and Institute of Oncology strengthens its position, while at the same time establishing a platform for partnership between science and business, which is so rarely encountered in Polish realities.

PM

PM

Is the research the property of Roche? Is Roche the exclusive owner of its results? Can

62 polish market

the Science and Industrial Centre co-operate with other partners?

The Science and Industrial Centre was set up in September 2016 in line with the provisions of the the law on research institutes. The decision as to what kind of research is to be conducted at the Centre rests with the Institute of Oncology.

The Centre is open to partnership with various commercial entities and drug producers, which will enable innovative Polish industry sectors to develop, such as biotechnology, IT, ICT, etc. It’s a place all those who wish to invest in the development of Polish medicine can have access to. Moreover, in line with the aforementioned agreement, the details of research conducted by other units are not known to Roche and it acquires no rights to the results of the research.

This is not the first time for Roche Group to invest in the results of research by Polish scientists. Last year you invested in research conducted by a team under Professor Jemielity into extending the life of mRNA. In 2016 our company was part of the biggestever commercialisation of research results in Poland: a discovery by a University of Warsaw team which is crucial in work on new immunotherapies. The mRNA commercialisation process is also an excellent example of how Polish science can play its part in the development of innovations in a global dimension, while at the same time supporting the development of the innovative economy. Innovation in medicine and other fields of science is crucial. But its effectiveness depends to a major extent on co-operation with partners who have know-how and experience. For a discovery needs to be transformed into a concrete solution, a new drug.

In a nutshell, the key is partnership between research and the innovative pharma industry.

We are constantly on the lookout for valuable projects that promise tangible benefits. Currently we are in the middle of talks with the University of Warsaw about our further co-operation and start-ups which are set up there to offer mentoring support right from the start of the new firms’ activities.

PM

PM

Roche Group operates in various fields and in many places of the world. Based on your

experiences, does the world welcome new inventions and new developments?

Entrepreneurs in the West are aware that partnership between science and business is indispensable to fuel invention. In the case of the best R&D centres in the UK, Switzerland and Britain, the level of research funding out of private resources amounts to at least 40%.

In Poland the perception of this kind of partnership must change. I hope that moves like the launch of the Early-Phase Clinical Trials Ward, or investment into the discovery by Polish researchers from the University of Warsaw, will inspire both academic centres and pharma companies to form such partnerships.

In spite of the rapid progress in medicine in recent years, there are still a number of areas where patients lack effective forms of therapy. There is a huge demand in the world for such inventions. We also trust that in Poland, demand for innovation will continue to grow, which should fuel the long-term development of research in this country.

Scientists work in laboratories with patients’ health prospects in mind, but will patients have access to innovative therapies stemming from research?

Polish patients already have access to innovative therapies, to mention but personalized medicine applied in cancer treatment, which in many cases not only extends the life of patients suffering from specific forms of cancer but has also improved the quality of their lives as they fight the disease.

Undoubtedly, the complexity of procedures whereby the cost of new therapies is refunded by the Polish national health service and the time they take, do form a hurdle when it comes to access to such therapies. We hope that initiatives will be undertaken to speed up the process to shorten the time Polish patients wait for access to new treatments.

The newly founded Early-Phase Clinical Trials Ward offers a unique opportunity for patients, especially those in whose cases all available forms of therapy have failed. Taking part in trials and access to the latest therapies which are not yet financed out of public funds is for many patients the only chance of receiv• ing treatment.

PM

Medicine

UNIQUE OPPORTUNITIES FOR PATIENTS AND RESEARCHERS IWONA ŁUGOWSKA, a clinical oncologist, head of the Early-Phase Clinical Trials Ward and coordinator of the Science and Industry Centre, talks to “Polish Market”.

At the end of June, we had an opportunity to take part in the opening of Poland’s first Early-Phase Clinical Trials Ward dedicated to oncology. It has been established thanks to cooperation between the Maria Skłodowska-Curie Memorial Cancer Centre and Institute of Oncology (COI) and the Roche Polska company. What is the legal status of the Early-Phase Ward?

The managing body for the Early-Phase Ward is COI. The work on setting up the Ward was possible thanks to establishing the Science and Industry Centre (CNP) under an agreement between COI and Roche Polska. Financial support for the Early-Phase Ward was also provided by the National Centre for Research and Development as part of the STRATEGMED II programme – the ONCOTRAIL project.

PM

The involvement of Roche Polska does not preclude cooperation of the CNP with other partners. What will the process of commercializing a drug or therapy look like?

Have you developed a model of cooperation?

The CNP works with various scientific research units, commercial partners and other drug producers from Poland and abroad.

Roche does not have any exclusive rights. If a confidentiality agreement is signed with a partner other than Roche sensitive information concerning the project is not provided to Roche. The CNP also initiates the participation of COI in national and international research programmes and acquires financial means for scientific research relying on the research infrastructure of the unit. Projects where research findings can be transferred to the marketplace are a priority for CNP. As regards the Early-Phase Ward, its activity will be mainly focused on Phase I and Phase II clinical trials with the participation of cancer patients who are still in a good clinical condition but have limited treatment options.

PM

The research conducted at the Early-Phase Ward will evaluate the safety and efficacy of cancer drugs, providing at the same time an ecosystem for the development of new therapies, first-in-human and proof-of-concept trials, trials requiring the strict monitoring of pharmacokinetics and/or pharmacodynamics, and studies evaluating biosimilars. The patients are proposed therapies which are expected – on the basis of pre-clinical research - to be more effective than standard therapies.

This, however, needs to be confirmed in clinical practice. An important aspect of earlyphase clinical trials is patient safety because the toxicity of new therapies is unknown.

The operation of the Early-Phase Ward is based on a qualified research team with many years’ experience in clinical trials, cooperating with researchers from diagnostic units, COI’s specialist clinics and pharmacists from the hospital pharmacy. Conducting clinical trials contributes to strengthening Poland’s international position in research and development in terms of acquiring new commercial and academic partners.

The Early-Phase Ward and the Science and Industry Centre are new initiatives so for the time being it is impossible to speak about a well-tried model of cooperation. Every project is different and the final position is worked out on an individual basis with those interested in cooperation.

which would like to have research conducted at the Early-Phase Ward has to contact the CNP. A decision whether or not the research project will be carried out is taken by the CNP Council. As I said, we are open to cooperation with various partners. What is important is the goal and the potential findings of research.

You said the Early-Phase Ward will give access to state-of-the-art therapies to patients and unique research opportunities to doctors and researchers. When can we expect the first results?

So far Phase III clinical trials have dominated in Poland. In 2014, they accounted for 63% of all trials while Phase I and Phase II trials accounted for only 6% and 27% respectively. This may change after the Early-Phase Ward has been established. The Ward opened on June 29 this year and we have already begun two Phase I clinical trials. Another two will start at the end of the summer. At the same time, we are in talks about contracts for further trials and waiting for official permits.

The Early-Phase Ward opens up unique opportunities for patients and researchers, who are now able to take part in the whole drug development process in Poland. Remember that work on a new therapy may take well over a decade. It is a time-consuming process but it may produce notable effects.

PM

How do you qualify patients for admission to the Ward? How do they benefit from taking part in the trials?

Conditions for patient admission differ.

They depend on specific assumptions of the clinical trial protocol: cancer type and stage, the general condition of the patient, concomitant diseases and previous cancer treatment.

Early-phase clinical trials very often involve patients who have already undergone all the available treatments and the new therapies are the last chance for them.

• PM

Do you plan to do research for a specific company? Or perhaps you are going to conduct independent research and then attract the interest of prospective partners?

The CNP is responsible for coordinating, organizing and conducting scientific research projects aimed at incorporating the findings into clinical practice. The projects concern preclinical research, early-phase clinical trials and other research and implementation projects in the area of oncology. Every company PM

7-8/2017 polish market

63

Medicine

INNOVATIVE PHARMACY.

DISEASES WHICH ARE YET TO BE TREATED. DOROTA HRYNIEWIECKAFIRLEJ, MD, Ph.D., President of Pfizer Polska Sp. z o.o., talks to "Polish Market".

64  polish market 

The Forum is organised in partnership with more than 100 businesses, which include major players in their respective lines of business. You represent one of such businesses as President of the Management Board of Pfizer Polska, and also as President of the Employers' Association of Innovative Pharmaceutical Companies, INFARMA. So, what should I ask you as the leading representative of this important, if not the most important, industry for all of us?

Preferably about some inside knowledge which is not publicly known.

PM

So, how would you describe Pfizer, as the largest global pharmaceutical company?

We focus on innovation and continuous development to provide patients with the best possible quality of life and health. Not a minute goes by at Pfizer without some progress or success. An endless number of molecular chemical combinations are constantly being explored in search of the molecules whose combinations help to restore full physical, mental and social well-being, or, in other words, health. However, this process of innovation is becoming more and more costly, involving an PM

Medicine

increased business risk. The molecules need to be carefully examined in terms of their therapeutic safety and treatment effectiveness. There are four Centres of Therapeutic Innovation in the USA which do this. It would be great if such an institution was also established in Poland. Then, we could use our know-how and laboratories to tap into the experience of the people working in American centres. We are looking for start-ups, also here in Poland, to work on some projects together. For young scientists, cooperation with a company is sometimes the only way to have new drugs launched. Pfizer spends USD 7 billion a year on finding new molecules. As a result of these massive expenditures, the Company stands for innovation in the pharmaceutical industry.

What else makes the Company so innovative, in addition to the expenditures you have mentioned?

Effective cooperation between our Company and doctors, pharmacists, healthcare managers and patients. It generally involves knowledge sharing and educational and preventative activities. Innovation is all about putting ideas into practice, and ideas, in turn, are the by products of associations. The latter are supported precisely by broadly defined interdisciplinary education. This also includes recent investments in the process of monitoring adverse drug reactions, or, in other words, taking responsibility not only for developing and launching new drugs, but also for supervising their safety and effectiveness when they are available to large populations of patients. Patients’ well-being and safety are our top priorities at each stage.

PM

In what research areas is Pfizer conducting the most advanced clinical trials?

There are six major fields: oncology, vaccines, rare diseases, inflammation and immunology, cardiovascular and metabolic, neuroscience and pain. We have been trying to find new, effective, therapies for such diseases as Alzheimer’s and Parkinson’s. Our next generation Meningococcal B vaccine helps to treat meningitis. We hope that in the near future we will be able to provide patients with access to innovative therapies for such diseases as metastatic breast cancer, leukaemia and haemophilia. Recently, three specialty drugs have been registered in the European Union. The first helps overcome hormone-resistance of metastatic breast cancer, the second offers hope in the treatment of adult patients with recurrent or treatment-resistant acute lymphoblastic leukaemia, and the third helps patients suffering from active rheumatoid arthritis. Other drugs are pending registration in the European Union, and include a drug used to treat acute myeloid leukaemia, and a drug for patients with Merkel-cell carcinoma (MCC), launched in partnership with Merck. We have been investing in therapeutic areas which we believe require special attention for medical reasons, while also being commercially viable. Sometimes these decisions have therapeutic motivations, and in other cases it comes down to technology.

PM

PM

Some diseases affect large populations, while others strike only a small number of people. To what extent has the position of Pfizer been shaped by its response to popular demand?

Hypertension, depression, erectile dysfunctions – these are examples of disorders which generate popular demand for drugs. This demand has been completely satisfied by the Company for a long time. Today, however, patients are no longer considered as a group, but as individuals. Each with different and unique information, an “operating manual” if you wish, recorded in genes. This approach has given rise to personalised oncology medicine. The same therapy against a specific type of cancer can produce radically different outcomes in different patients. In some patients it will be effective, in others neutral, and yet in others harmful. The purpose of personalised care is to provide patients with the safest and most effective treatment possible. It does not stop at determining the correct dosage but also involves follow-up supervision of treatment efficacy.

Could you give some specific examples of such treatment?

There is a group of patients with non-small-cell lung carcinoma, 5%, who have ALK-gene rearrangement, and another group of patients, about 1-2%, with ROS1-gene rearrangement. The application of molecular-targeted therapy in such isolated cases contributes to significant improvements in treatment efficacy and tolerance compared to standard chemotherapy.

PM

Let’s now say a few words about pharmacy in more general, abstract terms, shall we? What is the role of the pharmaceutical industry in the face of major economic, social and political problems in Europe? What is its role in the Economic Forum?

The possible loss of such things as life and health is always a concern. We all want to continuously allay this fear.

The feeling of safety is one of the fundamental existential human needs. Economic considerations are irrelevant if your health is failing. Society does not amount to much when it lacks new drugs for new disorders, old complaints or lingering illnesses. Healthy economists must be constantly reminded that treatment is not a cost but an investment. It is important to bear in mind that healthcare requires continuous rationalisation of expenditure. After all, patients’ well-being is our common good.

PM

Last but not least, let me take this educational opportunity to ask you why drug sciences, a tremendously important field of human activity, are referred to as pharmacy?

The etymology of this term continues to be a matter of some controversy. It is common knowledge that it is a loanword from ancient Greek. Pharmakon means both remedy and poison, so it refers to a certain continuum, where the golden mean must be found.

But there is also a theory which suggests an earlier origin of the word. Indeed, not only earlier but also the oldest, origin ever recorded in the history of civilisation. Ancient hieroglyphs had the word ph-ar-maki inscribed on them. Written down five thousand years ago in the Pyramid Texts, it was used in Old Egyptian to describe the one who provides security.

Let us make this ‘pyramidal’ etymology serve to legitimise the presence of pharmacy representatives at the Eco• nomic Forum.

PM

7-8/2017 polish market

65

Medicine

LEK-AM - A POLISH FIRM WORTHY OF YOUR TRUST

LEK-AM Pharmaceutical Company Ltd. is a Polish enterprise which owes its success to a strategy of intensive development, which was adopted 17 years ago and is still being consistently implemented.

The firm successfully builds a new quality on the pharmaceutical market through innovation. It has built one of Poland’s most modern pharmaceutical plants in Zakroczym, where it employs over 500 workers.

Values that guide LEK-AM include high quality, ethical conduct, credibility and integrity.

LEK-AM Pharmaceutical Company Ltd. is a firm established

by Polish capital whose aim is to offer patients and physicians quality pharmaceuticals at reasonable prices. The company is successful on the generic drug market. It also conducts pro bono activities. The key to LEK-AM’s success has been its ability to very accurately spot niches not filled by other producers, an impressive grasp of the market and the ability to satisfy patients needs.

66 polish market

The main aim of the firm is to supply affordable top-quality pharmaceutical products that match world standards.

Since its founding, LEK-AM principles have been innovation, effectiveness and meeting customer expectations as well as offering support to patients. There are those who, at the end of the day, the products are addressed to, so the company helps them to stay healthy and keep in good shape.

After all, being healthy is what we all value the most.

Medicine

LEADER IN GENERIC DRUG PRODUCTION

The company specializes in generic drug production, and that is what it focuses its model of operations on. LEK-AM manufactures equivalents to brand-name drugs and does not develop original drugs of its own. The company’s aim is to improve generic drugs present in the Polish market through the addition of specific molecules and active substances.

Innovation in the way these preparations are made and their form are quoted as areas which make the company stand out on the local market.

From 2001 until 2015, each year the company introduced a new drug, or a new version of a drug. The portfolio of the LEK-AM Pharmaceutical Company is a very extensive one.

As a result, LEK-AM regularly introduces medical preparations to the Polish market which are greatly appreciated by patients.

LEK-AM currently offers about 80 drugs available without prescription, as well as dietary supplements. There are also prescription drugs (with Common Technical Documentation), which are successfully used in the following therapeutic areas: allergology, pulmonology, urology, cardiology, psychiatry, neurology. These are in demand on the Polish market.

In Poland’s pharmaceutical market, which has recorded a 4.8% yearon-year growth this year, LEK-AM has grown by as much as 16%. (IMS data 2016).

Prescription drugs amount to over 60% of the company’s total sales.

The company has won an excellent reputation on the Polish market thanks to efficient management, combined with a highly skilled work force and a well-structured offer of products.

THE PLANT IS THE COMPANY’S PRIDE

The total floor space of the firm’s laboratories amounts to over 9,500 square metres, thanks to which LEK-AM is capable of producing nearly 2 million packs of pharmaceuticals a month. Production lines and the laboratory operate in line with European standards. A team of qualified and professional workers makes quality control their priority. Drug production methods meet all the requirements of Good Manufacturing Practice (GMP), and products used in clinical trials are made in line with Good Laboratory Practice (GLP) and GMP. As the company gets ready to launch the production of more preparations, successive stages of the plant’s expansion are implemented. The plant’s increasing production capacity is coupled with the consistent injection of the latest drug production technologies in order to ensure the highest quality of pharmaceuticals thus meeting Quality Management Systems ISO 9001:2008 standards.

Since its launch, the company has conducted research into the technology of drug forms and pharmaceutical analytics.

The company’s R&D department, which was expanded in the years 20112015, plays a very important role within the organisation. The firm is among Poland’s most modern pharmaceutical companies. Its laboratories are equipped with state-of-the-art analytical equipment. The R&D department is focused on developing modern generic drugs. In order to introduce innovative solutions, research is conducted into modern drug forms with modified substance release and innovative ways of administering drugs. Work is underway on streamlined packaging, as well as solutions geared toward cutting costs in day-to-day production.

As part of projects that receive partial outside funding, work is conducted in the areas of oncology, cardiology, pulmonology, neurology and many others. In addition, the R&D department develops OTC drugs and dietary supplements.

The department co-operates with Polish universities, institutes and research units, as well as with world experts in the field of pharmacy.

The Zakroczym plant is one of the most advanced pharmaceutical plants in Poland. It is equipped with modern technologies and the latest

installations for drug production. It also uses eco-friendly solutions, quality control systems and pays utmost attention to health and safety.

The company successfully operates in the area of contract manufacturing and accepts individual orders for preparation and production of our clients own brand drugs.

PROSPECTS AND FUTURE DEVELOPMENT PLANS

In the nearest future, the launch of a number of promising new pharmaceuticals is planned, which are developed in line with own technological recipes. These pharmaceuticals will enable the company to move into new therapeutic areas such as cardiovascular disorders, hypertension, asthma, ulcers, neoplasms, depression, metabolic disorders, bacterial infections, central nervous system disorders and hormonal imbalance.

The dynamic development of the Polish market and the considerable increase in the sales of pharmaceuticals have prompted the company to venture into foreign markets. This has been a resounding success, thanks to the top quality of its products made in line with EU standards and offered at competitive prices. An initiative is currently being undertaken to register individual products to introduce them to various markets. These measures are carried out by the company’s dynamic branches in Nigeria, Germany, Russia and Romania as well as by a network of exclusive distributors in Central and Eastern Europe, Africa, Asia and Central and South America.

•

LEK-AM is your trusted and reliable partner in the Polish pharmaceutical market.

If you are interested in working with us, for more details please contact Justyna Olszak, Managing Director of International Development.

LEK-AM Office 00-175 Warszawa, 80 Jana Pawła II Av. Poland Phone: +48 664 720 017, + 48 22 635 80 41 ext. 542, www.lekam.pl

7-8/2017 polish market

67

Medicine

PEOPLE: THE COMPANY’S MAIN ASSETS KATARZYNA NIEDUŻAK, Management Board member of AA Stomatologia, talks to “Polish Market.”

The AA Stomatologia company set up only last year offers a wide range of dental care services, especially in aesthetic dentistry.

How do you assess the company’s growth?

Is it progressing as planned?

It has been a very busy year for us. Literally every day marked progress in our planning for growth. The first year has proved a success in the company’s performance.

AA Stomatologia entered the ”Go to Brand” competition and as one of the beneficiaries received funding amounting to PLN577,649.00 from the Smart Growth Operational Programme POIR 3.3.3. That enables our company to promote its services at dental industry events abroad. We attended one such an event in Moscow, and shall be going shortly to Ukraine, Norway, Denmark, Sweden and Germany. The funding represents a significant financial injection that should be taken full advantage of.

We are moving forward as planned to reach our goals. With staff such as we have we can meet all challenges. I used to say that we would not be able to reach our goals and win success without our highly expert medical staff consisting of dental surgeons Dariusz Kardynał, Katarzyna Widz-Owczarek, Artur Trześniak and Małgorzata Janik-Podgórska (one of the best orthodontists in Poland) as well as dental assistants Małgorzata Kwiatkowska and Maryna Priakha, office employee Katarzyna Tymanowska and management board assistant Kasia Szajda.

It is people who are the company’s most valuable assets. It is up to its owner, shareholders and management board to offer them the best working conditions while the combined intense and devoted work of doctors, assistants, hygienists as well as receptionists (without whom all the logistics in the surgery PM

68 polish market

would not be running smoothly), contributes to the company’s overall success.

men taking advantage of aesthetic medicine is more or less the same.

Dentistry and aesthetic medicine combined in one is rather rare. The application of aesthetic medicine in dentistry gives your company surely a competitive edge...

What gives us the edge, I think, is offering services at the highest quality level at a price which every patient, be it a student, a CEO or retired person can afford to pay.

Luckily, patients are becoming aware of aesthetic medicine in dentistry. It is no longer associated just with getting a beautiful Hollywood smile. Patients are increasingly aware that what matters is health. Many ailments, it turns out, have their roots in the mouth. Aesthetic medicine is used in dentistry to rebuilt and regenerate the gums, in the treatment of so-called gummy smile, in orthodontics as well as in dealing with facial skeleton development disorders.

It can therefore be said that we owe our competitive edge to the price, quality, staff, and state-of-the art- equipment provided by the ANDAN company in Mielec. And also to top-quality dental materials supplied by Marrodent.

Do you intend to expand the range of your services?

Yes, we do. Our offer already includes dental implants. The new member of our team is Artur Trześniak, an oral surgeon and implant specialist. Aesthetic medicine has also a lot of common with orthodontics as it complements orthodontic treatment. In that regard we have entered into co-operation with Orto-Live in Radom. Małgorzata Janik-Podgórska from OrtoLive is an excellent dentist–orthodontist, highly praised not only by patients but also by dental professionals. We are very happy to work with Orto-Live as this will help us to offer patients even more complex treatments. Orto-Live has at its disposal highly specialist X-ray equipment which allows thorough examination of defects on the spot rather than referring patients to different places to take X-rays of the whole facial skeleton.

PM

Who are your patients as regards aesthetic medicine? Are they mostly women or men? And do you have patients from abroad?

Referring to aesthetic medicine in dentistry we use entirely different indicators than in typical aesthetic medicine where, as we know, women patients prevail. In dentistry aesthetic medicine is used, for example, in the treatment of receding gums and that does not depend on the patient’s sex. One can surely say that the number of women and of PM

PM

What are your plans for the future? More dental clinics? Attendance of sector-focussed events?

Our plans for the future... First of all we intend to tap the potential gained by taking part in the “Go to Brand” programme. We have been participating in many dental industry conferences in the country. We shall be attending international fair events in Lviv in October, in Oslo at the end of the year as well as in Copenhagen, Stockholm and Berlin in 2018. As you can see, we have a lot to do – and that not only to present our offer but also – and that is of foremost importance and a challenge – to attract patients.

Of course, we also think of opening a new clinic, but the company’s management board has to approve the development plans first.

• PM

Medicine

APART FROM AESTHETIC MEDICINE ONE NEEDS THE RIGHT LIFESTYLE MONIKA ZDZIARSKA-ALICKA, Owner, Essence Beauty Clinic, talks to "Polish Market".

Aesthetic medicine clinics are usually set up by physicians who want to work on their own account. You have a degree in economics, so the model in your case is slightly different. Please tell us about it.

I have decided to open a clinic offering a wide range of services. They are not limited to aesthetic medicine, although it constitutes the foundation. We also provide cosmetology and additional services such as hair styling, manicure and pedicure. We advertise the fact that at our clinic customers can attend to their beauty and relax from head to toe.

PM

Customers come to you with the knowledge that they can get everything they need in one place…

Yes, we are here to solve their problems.

One must remember that the people who visit aesthetic medicine clinics come with some specified problem. We are not focused on selling a service or product, but on meeting the customer's expectations. Our services are very individualized. We can prepare a bespoke programme of repair and care for virtually every customer. For example, we have introduced a solution which we call a prescription. Every customer who uses a procedure, receives a precisely written out plan of treatments, with a home care plan.

This means that our customers feel our care, not only when they come to us, but also at home. They know what to look for, how to eat. We emphasize the importance of physical PM

activity, sleep and relaxation. We have a very skilled team that constantly improves their competences. We take a holistic approach to the customer. I have always stressed that when someone is dissatisfied with her appearance, simply coming to the clinic will not help if the treatments are not backed by an appropriate lifestyle adjusted to our biological clock.

You speak of a rather novel approach to the customer, which distinguishes you from other clinics. With so much competition, it definitely works in your favour.

What else do you need to do today to win customers in such a demanding market?

Our clinic is in a great location, right in the centre of Warsaw. Our customers are people who live here, work or travel in the area.

We also focus on a very selective approach to brands, with which we work. These are the best and very professional cosmetics, which offer not only the material used at the clinic, but also products for home care. We do not select brands that have products exclusively for clinical us. We act according to the aforementioned philosophy - the customers must also be able to take care of themselves at home after the treatment. We try to convince patients that they should use the cream recommended by our cosmetologist. The approach to the customer and the atmosphere in the company is also very important. I must admit that I really enjoy all the positive comments that PM

we receive in customer satisfaction surveys.

We pay great attention to making customers feel as they should feel at such a place.

You also have an interesting approach to booking appointments. You use a mobile application designed for this purpose…

We use the Versum system that allows us to efficiently manage the clinic. This is a very good software, which allows us to analyze various very important indicators, such as returning customers. In addition, we use the aforesaid Booksy application. I assume that at this time, the customer is very demanding and has various habits.

Some customers use the application, some the Lavito Internet portal. Appointments may also be booked through our website and by phone. Lately Versum has also opened moment.pl where customers can make appointments. So everyone can find a method • that is suitable for them.

PM

www.klinikaessence.pl

7-8/2017 polish market

69

Cultural Monitor

CM – July 2017

CM

FIRST, IT’S ABOUT RECOGNISING CERTAIN VALUES, AND THEN SELECTING WORTHWHILE GOALS, AND FINALLY THE MEANING… THIS IS THE “KEY SENTENCE” IN THIS SUMMER VACATION ISSUE OF THE CULTURAL MONITOR. RECOMMENDATIONS OF WHAT’S NEW BY MACIEJ PROLIŃSKI.

MONIKA BORZYM – “JESTEM PRZESTRZEŃ” – THE MUSEUM OF WARSAW UPRISING – CD

The Museum of Warsaw Uprising utilises valuable artistic activities to address the events of August 1944. This series of music projects held every year under the motto “We Remember’44” creates a space for artistic expression on the history of the Warsaw Uprising. The topic has been taken on by the best, including Tomasz Stańko, Aga Zaryan, and Voo Voo. This year, as part of the series, sees the release of “jestem przestrzeń” (“I am space”) featuring 12 compositions made for the poems by Anna Świrszczyńska, and performed by Monika Borzym, an acclaimed jazz singer of the younger generation. The poems on this album are put together to create a beautiful and inspiring tale on the space of freedom in man, and on self-determination First comes the recognition of certain values, then the selection of worthwhile goals, and finally the meaning… And the value of fight does not lie in chances for victory, but in the value of the matter itself”, as noted by Henryk Elzenberg, one of the greatest philosophers of the 20th century. The music was composed by Mariusz Obijalski, a pianist. The album features some surprises, as the following special guests took part in the recording sessions: John Scofield, one of the most brilliant guitarists in the history of jazz; Wojciech Waglewski, one of the most important artists on the Polish scene, to be heard in the exciting duo with Monika Borzym (“Bardzo smutna rozmowa nocą” – “A very sad conversation at night”); and Mitchell Long, an American musician, expert in jazz, blues and world music.

This is no ordinary album, nor the songs are any conventional. Each of them conceals an elaborate story that excites imagination, and is filled with content and improvisation, ethereal ambiance and intense rhythms. The unique atmosphere of the songs, combined with top-quality performance, is what makes this release so compelling. The album has been with me for quite some time and, listening to it time and time again, I believe it has already earned an important and permanent place in Borzym’s discography.

ARTUR DUTKIEWICZ TRIO – “TRAVELLER” – POLISH RADIO – CD

Artur Dutkiewicz, an excellent Polish jazz pianist, has come to be known as the “ambassador of jazz” for being among the Polish jazz artists most frequently performing abroad.

In recent years, he has visited over 50 countries and regions, including the USA, Europe, China and Australia. The latest album by Dutkiewicz, “Traveller”, featuring his own compositions, is an internal journey around various mutually complementing moods. A myriad of emotions, as well as elements of Polish folk and world music combine here with a bit of romance and a powerful message. All this is strongly inspired by the roots of both European and American jazz improvisation. Taking part in the recording sessions were Michał Barański, a bassist, and Łukasz Żyta, a drummer, both excellent musicians with whom Dutkiewicz has been working for years. The album, wavering between subtle lyrics and the relentless expression of the whole band, is to me the greatest proof that Dutkiewicz (as one of the few pianists in Poland) can be easily regarded as an “ideological heir” to Krzysztof ‘Komeda’ Trzciński, the prematurely deceased pianist and composer, an icon of Polish jazz. According to the outstanding Polish historian and cinema theorist, Prof. Marek Hendrykowski, “for Komeda, jazz was a metaphor for human life. It then became music which expresses the desire for personal freedom, and it stems from the inside as a unique kind of experience involving the discovery of oneself and of the world through art.” Such an affinity (not manifested directly in music) I have found on the next, extraordinary album. A creative journey to the sources of jazz, and a promise of a journey into oneself…

ROGER WATERS – “IS THIS THE LIFE WE REALLY WANT?” – SONY – CD

Twenty five years on, the former member of the legendary Pink Floyd band makes his come back with a new, rock album. The previous addition to Waters’ discography was “Amused To Death” back in 1992, an album largely inspired by the Gulf War and questions about the impact exerted on us by the media, television, and aggressive globalisation. Now, as follow-up to that material, “Is This The Life We Really Want?” is an apt commentary on the unrest unfolding across the globe today, and it is a natural successor to the iconic Pink Floyd albums, “Animals” and “The Wall”. Interestingly, the lyrics for “Wait For Her” (a triple ending to the album) were inspired by the English translation of “Lesson from the Kama Sutra (Wait for Her)”, a poem by Mahmoud Darwish. This conclusion to the album did make an impression on me. Perhaps thanks to this personal, although it would not be right to add “a single”, perspective in the story – personal, so not an “Onna” – unfolds (restores, recalls) new horizons. Or perhaps it makes us open to the world? To the evitability of life. To the inevitability of death. And to the possibility of our rebirth. To me, then, the finale of this album is even greater than its beginning. That is maybe because everything is just an illusion, except for love… But I believe the most beautiful account of this topic was offered by Bulgakov (who knew both Dante and Goethe)…

70 polish market

M

Cultural Monitor

“THE MASTER AND MARGARITA” – DIR. MACIEJ WOJTYSZKO – TVP – 2DVD A four-episode Polish TV series directed by Maciej Wojtyszko as a screen adaptation of Mikhail Bulgakov’s novel under the same title, made in 1988 and premiering on television in 1990. Today, it comes back as a DVD released in “The Canon School Reading List” – a “canon” which you come to appreciate as you grow older – because it will not suffice to approach it from a schooler’s perspective. To the images from Bulgakov… And how does this novel present today, seen also through our eyes and Wojtyszko’s imagination? Fantastic! Just as its literary original, it touches upon all themes, those political and religious included, but also human, devilish and divine… The brilliant narrative by Bulgakov, whose spirit has been well captured in this adaptation, stands the test of time. This is in addition to the director’s concept and the imagination of the actors such as Gustaw Holoubek, Władysław Kowalski, Anna Dymna, Janusz Michałowski, and Mariusz Benoit.

The story, as we follow it, may only make us more amused and moved, and fascinated by the mystery of who actually all those mythical characters are, cropping up on the streets of Moscow? One could say: “But isn’t this reality similar to what we have had here in Poland for decades?” Yes, it is, though not as extreme as the one in Russia.

However, whenever we go to that country, the local circumstances help us discover our own Polish experiences through the very fact that what’s “familiar” to us has already reached a state of utter absurdity there. Bulgakov’s novel, for me, stands as a revealing and meaningful way to learn about all the dangers still stuck somewhere inside of us, which we’d rather not see and which we’d prefer to remain hidden under so-called “political views” and continue to do so also in the 21st century. A vision, if not a clairvoyant prediction – but, indeed, also a beautiful guiding light showing us which direction to take so as to not get lost along this route – alone or with another human being.

“POWIDOKI” (“AFTERIMAGE”) – DIR. ANDRZEJ WAJDA – GALAPAGOS FILMS – DVD “Powidoki” was the last film by Andrzej Wajda, the renowned filmmaker who died on 9 October 2016, soon after the world premiere. For over half a century, the Master’s films accompanied the most important Polish debates, teaching us how to be proud of our nation, but also how to be critical of our Polish sins, ridiculousness and complexes. „Powidoki” is a very special farewell… In this depiction of the last years of Władysław Strzemiński (played

by Bogusław Linda), a charismatic painter, teacher and art theoretician, as well as a pre-war pioneer of avantgarde, we take a close and intimate look at his life. The director assumed a very subtle, yet universal, approach in order to sketch, through skilfully painted images, a world where art and beauty are persecuted. He goes on to tell us that for centuries, art has been a lonesome ascent of an artist to a summit, a venture out to the oceans…

And that art is not politics… The tragic irony of history and a sort of Polish paradox pervading through “Powidoki” is that Strzemiński, a socialist by heart, is oppressed by the communist regime, which had usurped both the heritage and language of the political left… Wajda tells this story in a simple manner, stressing Strzemiński’s unwavering stance and defiance against communists who “push their way into culture”. The director succeeds in offering a clear presentation of a story which, after all, covers only a piece of Strzemiński’s life. In addition to Bogusław Linda, the cast of “Powidoki” includes Zofia Wichłacz, Bronisława Zamachowska, and Krzysztof Pieczyński. The cinematographer in “Powidoki” is Paweł Edelman, and the set designer was Marek Warszewski. The musical score merits appreciation too. The events on screen are accompanied, discreetly yet powerfully, by the charming and melancholic music of Andrzej Panufnik, one of the greatest composers of the 20th century (fragments of the Piano Concerto, Autumn Music, Landscape, and Dreamscape).

"WOŁYŃ" – DIR. WOJCIECH SMARZOWSKI – GALAPAGOS FILMS – 2DVD One of the most famous and best known Polish filmmakers, Wojciech Smarzowski has made a name for himself as a guarantee of the highest-class cinema. Interpreted “on the outside” only, Smarzowski’s films offer a peculiar conglomerate of evil and brutality which always seeks to defeat, without mercy, whatever is most human in us.

Still, what if we take a deeper look? In terms of content, the movie turns out to be an unobtrusive road towards light, a journey to a better life. In his latest feature, Smarzowski successfully addresses the difficult and controversial topic of the Volhynia massacre. This epic story about WWII events in the Eastern Borderlands, with one of the main themes being love between a Polish girl (in this role, the excellent Michalina Łabacz – making her debut on screen) and a young Ukrainian. Out of all films by Smarzowski, this story is, in my view, the most powerful, complete, and universal. Without a word, the amount of evil here goes beyond any level imaginable. But at the very top ther is a level where good dwells as well. After watching a movie like this, you just need to spend a moment in silence and think it through. And then you feel like hugging someone close.

The movie has already been seen by over 1.4 million cinema-goers. Awarded nine Polish Film Awards, including for the Best Film, “Wołyń” is now being released on Blu-ray and DVD. These limited, two-disc releases feature the festival version of the movie, which as yet has not been shown on the big screen. So it is good to see it back, this time for good. Because this is a must-see!

7-8/2017 polish market

71

Culture

AN UNKNOWN AND ENCHANTING PIECE OF ART...

On 10 June 2017 Teatr Wielki ‒ Polish National Opera in Warsaw hosted the première of "The Dead City", written by Erich Wolfgang Korngold. This was the first Warsaw staging of this opera, directed by Mariusz Treliński. The Musical Directorship lied with Lothar Koenigs, a German conductor and a multi-annual Musical Director of the Welsh National Opera. The stage design was prepared by Boris Kudlička, and the whole performance was produced jointly with Théâtre de la Monnaie / de Munt in Brussels.

Those who missed the Warsaw performance will be offered a chance to see it this autumn. On 22 and 24 September the opera will be staged in Lublin, in the Centre for the Meeting of Cultures (Centrum Spotkania Kultur).

"

The Dead City" (Die tote Stadt) is an opera in three acts, which had its world première in 1920 in Hamburg and Cologne. The Polish première, under the title “Zamarły gród,” took place in Lwów in 1928. The opera was written by Erich Korngold (1897-1957), referred to then as the child prodigy, when he was 23 years old. Korngold went down in the history of music as one of the greatest Hollywood composers. Along with classical music works, he composed film music, which earned him two Oscars (for Anthony Adverse, and then for The Adventures of Robin Hood). Known as the father of film music, Korngold used Bruges-laMorte, a novel (dated 1892) by the symbolist Georges Rodenbach, as the leading motif of his opera. The novel provided the inspiration for creating the libretto, telling the dramatic story of a man mourning his dead wife, surrounded by the scenery of foggy Bruges. The story shows us what a man is capable of when possessed by love obsession.

The main protagonist of "The Dead City" is Paul, who cannot come to terms with the death of his beloved woman (Marie). He decides not to leave home and soon becomes devoid of any hope and meaning in life. At some point he is visited by a woman (Marietta) who looks just like his beloved Marie. This soon leads to a number of events, some of which are dramatic. The world of the dead mingles with the world of the living, with the protagonists shuffling between dreams and reality.

Cinema, which exists all over the world, whose language is comprehensible to most audiences, was the key which Treliński used while staging the opera. Treliński said: “Our

72 polish market

Maciej Proliński story is told as if it were a thriller: What happened to the previous woman? What is the purpose of the meeting? Who is our main protagonist?”

As the director stressed just before the opening night, the performance was meant to tell a story “which was going on entirely in the protagonist's head”, with the size, space arrangement, colours and residents in his dwelling changing, as in a dream...

The encounter with Korngold's music, which had previously been unknown to me, turned into a really fascinating experience.

This music sounds not only dense and detailed, but also very melodious. It clearly captures ‒ not only in the “strictly cinematic” sense ‒ the moods experienced by the main protagonist (and the two women). Thanks to the excellent Orchestra from the Teatr Wielki – Polish National Opera, directed by Lothar Koenigs, we could fully grasp the undertones during the opening night.

The performance was produced with an unprecedented flourish, and the director's concept was coherent and clear. Although Treliński and Kudlička were far from abandoning their untamed imagination, they succeeded in preserving the cohesion of Korngold's work, along with its illustrative attractiveness. While retaining the film-like nature of the world of sounds, they created a show which was clear in meaning, and yet truly spectacular.

The revolving stage played a vital role in the whole performance. Its continuous movement seemed to reflect the persistent thoughts haunting the main protagonist, who could not accept the loss of his beloved woman,

keeping her belongings in a special room, treating them like relics, and not letting anyone touch them.

Despite the subject matter of the opera, which plumbed the depths of the deviated relationship between a man and a woman, permeating various areas of life, the aesthetic aspects of the performance, contrasting with the cruelty of the sequence of the presented events, seemed to create an extremely enchanting effect.

Along with the producers and their unique creativity, the presence of the German singer Marlis Petersen was the unquestionable asset of the performance. Petersen earned international fame with her excellent operatic role of Lulu at the New York Metropolitan Opera in the work by Berg under the same title. She previously appeared in Warsaw's Teatr Wielki in April 2017, having accepted an invitation to the Ludwig van Beethoven Easter Festival, during which she performed in the German Requiem by Johannes Brahms. Her extraordinary acting in "The Dead City" kept the audience spellbound throughout her appearance on stage. Acting as both Marie and Marietta, Petersen was mysterious, alluring and very self-confident.

As I have invariably maintained, if Mariusz Treliński, the director and artistic manager of Teatr Wielki ‒ Polish National Opera, decides one day to return to cinema work (and it is worth stressing that Treliński's road to opera was through cinema), "Good night, Dżerzi" by Janusz Głowacki is waiting for him as a ready-made screenplay for an equally powerful, dark and challenging piece of cinema.

•

ESTONIA

Culture

FeSTIWAL IN MUSIC 17. ogrody muzyczne GARDENS

This year's Music Gardens Festival, with its 17-year tradition, began on 1 July.

For the last 10 years the Festival organisers have invited countries assuming the Presidency of the Council of the European Union on July 1 as honorary guests of the event. This year the invitation was sent to Estonia - a country which has been celebrating the 100th Anniversary of regaining independence since April 2017 (with the celebration planning to continue for the next 3 years!). The Festival events were taking place in a special tent erected in the courtyard of the Royal Castle in Warsaw, under the honorary auspices of the Embassy of the Republic of Estonia, and in line with the official programme of #Estonia100. They continued until 26 July.

gość honoroWy: ESTONIA

KRAJ LUDZI KREATYWNYCH

1–26 lipca 2017 Zamek Królewski w Warszawie – Muzeum

www.ogrodymuzyczne.pl

Maciej Proliński

T

he Music Gardens Festival has earned its place among the major summer music events in Poland. Its concept was brought forward by culture manager and director Ryszard Kubiak, General Director of the Festival, the television producer Barbara Pietkiewicz, Programme Director, and the composer Zygmunt Krauze, Musical Director, who all wanted to do more than ever before. The first Music Gardens Festival was held in 2001 in the courtyard of the Royal Castle. This was when the overall format of the event was developed, with the aim of promoting classical forms of art through new arrangements, with special emphasis being put on audiovisual opera and ballet productions, as well as films devoted to art. In 2002, in the light of the huge popularity of the first Festival, Kubiak, Pietkiewicz and Krauze decided to set up the Music Gardens Foundation, to act as the event organiser. Since then, the Festival has been annually held in July, each year attracting several thousand viewers. Each Festival is organised under various slogans. In recent years the source of inspiration has been provided by the culture and art of the countries assuming the EU Presidency.

This year, the first Estonian night on 3 July featured a performance by the Estonian Piano Orchestra, consisting of eight pianists playing four pianofortes, who performed works by contemporary Estonian composers, including Jaan Rääts and Urmas Sisask, written

ORGANIZATORZY:

specifically for the Orchestra, along with the new arrangement of the famous "Pictures at an Exhibition" by Mussorgsky, as reworked by Rein Rannap. On 24 July, i.e. in the final week of the Festival, Warsaw hosted Vox Clamantis, whose "Arvo Pärt. Adam’s Lament" (ECM Records, 2012) won the 2013 Grammy Award for the Best Choral Performance. Vox Clamantis, a Gregorian-Chant choir existing for over 20 years under the lead of Jaan-Eik Tulve, enchanted the audience with Gregorian anthems and antiphons, coupled with works specially written for the choir by the most renowned Estonian composers, including Arvo Pärt and Tõnis Kaumann.

The Festival also featured Polish artists.

The Paganini Tour was the last concert in this year's Music Gardens Festival (on 26 July) given by Marcin Patyra, a violinist, with Sinfonia Viva directed by Tomasz Radziwonowicz.

Among various pieces of music, the artists performed Grażyna Bacewicz's brilliant and ageless orchestra concerto.

Famous figures from the music world also appeared on the big screen, including Anna Netrebko, in a biographical documentary entitled "Anna The Great" (2015, directed by Dmitry Sapun), and Placido Domingo, singing the baritone title part in "Nabucco" (2017, directed

by Elijah Moshinsky, MET live in HD).

The editor Stanisław Janicki appeared as one of the special evening guests (on 13 July), as did the musicians Jolanta and Włodek Pawlik (on 7 July).

WSPÓŁORGANIZACJA:

GOŚĆ HONOROWY:

FINANSOWANIE: Projekt finansuje m.st. Warszawa

SPONSORZY:

PATRONI MEDIALNI:

The screening of a four-episode series entitled "The History of Music" (ZDF/Arte 2016) was also an interesting item in the Festival programme, telling the history of music from Baroque, Classicism and Romanticism, to modern times.

In order to learn more about and understand the musical culture of Estonia, the "Singing Revolution" documentary (2006, directed

by Maureen & James Tusty) was presented to bring the audience closer to the tradition of Laulupidu – the Estonian Song Festival in Tallinn, whose origins date back to 1869.

Estonians sang their way out of Tsarist Russia in 1918, and then out of the Soviet Union in 1991. As stressed by Harri Tiido, Estonian Ambassador to Poland, “Estonians have long held a tradition of singing. This is in our blood and veins. The tradition of the Estonian Song Festivals dates back to the late 19th century and they have become our way of manifestation.

Back in the past, songs and music made it easier for us to understand that we were Estonians.

They united people and consolidated us as a nation. The Estonian Song Festivals also helped us rise from the Tsarist reality to independence.

In the Soviet times Estonians viewed Laulupidu as something typically Estonian, not Soviet. We still believe that singing is one of the ways of bringing the nation closer and keeping it together. Estonia regained its independence through a singing revolution. We did it the bloodless way ‒ through a collective singing for independence”.

• 7-8/2017 polish market

73

Culture

GUARANTEES OF QUALITY!

The 27th Teraz Polska award ceremony, organized by the Polish Promotional Emblem Foundation, was held in Teatr Wielki – Polish National Opera on May 29, with Teraz Polska emblems granted to honour the best Polish companies, services, innovations and local governments. The slogan, emblem and award continue to be widely recognised in Poland and abroad. The competition is considered one of the most prestigious among quality awards. This year the awards were given to 13 products, 9 services, 3 innovative projects and 3 municipalities. Also, for the 8th time the “Outstanding Pole” title was awarded.

Maciej Proliński

“

The aim of the competition is to select the best products, services, innovative projects and local government bodies representing the highest quality and efficiency of operations, which contribute to Poland’s high reputation. The competition shows that Poles can be proud of their entrepreneurs and local government bodies.

We observe with great satisfaction that Poles consciously choose Polish products and value consumer patriotism. The Competition’s level is increasing each year, which reflects the condition of the Polish economy, its strengths and capabilities,” emphasised Krzysztof Przybył, President of the Teraz Polska Polish Promotional Emblem Foundation.

For the 10th time the Jury of the Competition granted awards for the best innovative projects.

This year these were 3 projects implemented by the Digital Core Design company from Bytom, the Military Institute of Armament Technology and the Division of Power Engineering and Gas Heating Systems at the Faculty of Building Services, Hydro and Environmental Engineering of the Warsaw University of Technology. The emblem was awarded to the first Polish commercial CPU D32PRO, the heat accumulator for Polish heating systems and a cartridge with a projectile for the Leopard-2 tank gun. “The main idea behind the category is to select and reward the most innovative solutions. In the times when emphasis is

74 polish market

being placed on the development of an innovative economy and cooperation between science and business the category gains special importance. It has become a way to honour and promote scientists and engineers who develop innovative technological solutions and enterprises which implement such solutions in practice,” emphasised Krzysztof Przybył.

Brwinów, Bieruń and Żukowo are the winners in the Municipality category. The goal of the Competition in this category is to select the best municipalities in Poland in terms of cost-effectiveness and attractiveness for residents and entrepreneurs. This is not a massscale award. “This year's winners in this category demonstrate that sound management and adopting a suitable development strategy provides good conditions for the development of entrepreneurship and for residents,” concluded Michał Lipiński, director of the Teraz Polska Competition.

There is still an essential need to promote the activities of renowned personalities, whose achievements and commitment contribute to advocating and strengthening a positive image of Poland and Poles in the world, and become ambassadors of brand Poland.

Therefore, the “Outstanding Pole” titles were awarded for the 8th time among those whose activities and numerous successes promote the image of Poland and Poles abroad.

The individuals who received the title were: Krzysztof Pastor, an excellent choreographer,

director of the Polish National Ballet, and Jan A.P. Kaczmarek, a composer, an Oscar winner, the creator and director of the Transatlantyk Festival. “Being aware that today I’m joining such an eminent group, I would like to emphasise with full responsibility that I regard this distinction as a sign of recognition for the Polish National Ballet, which is an exquisite phenomenon,” said Krzysztof Pastor.

“Prizes awarded in my nearest environment are the most valuable for me. When I receive recognition from my country people or those who are close to me, this is an especially crucial moment, as we always seek affirmations among the people closest to us,” said Jan A.P. Kaczmarek in his thank - you speech.

Furthermore, the Jury of the Competition for the 6th time awarded Honorary Mentions to exceptional events and initiatives promoting Poland in the country and abroad. The Honorary Emblems were received by: the Polish Automotive Association (PZM) for organising Rally Poland, the second oldest rally in the world following Monte Carlo, which each year attracts 100 thousand spectators from the whole world to follow its routes, and the Union of Producers and Employers of the Meat Industry for creating QAFP, the Quality Assurance System for Food Products. The idea of the QAFP system focuses primarily on the quality of food products, and on informing consumers about the Polish origin of products.

•

THE ONLY CONCERT OF ITS KIND IN THE WORLD Economy

On 10-14 July 2017, the World Hearing Centre and the Centre of Hearing and Speech in Kajetany hosted Clinical Workshops and a Scientific Conference as part of the Scientific and Medical Programme "Music in human auditory development", to celebrate the 25th anniversary of Poland’s first cochlear implant in a deaf patient, performed by Professor Henryk Skarżyński. The workshops were Professor Henryk Skarżyński’s original projects, designed to show the world that with contemporary scientific and medical advances hearing problems do not have to prevent people from pursuing a professional musical career or making the most of their vocal talents. A fitting finale to these events was provided by a Gala Concert by workshop participants who had made the greatest progress in hearing improvement. They played pieces they had worked on during the workshops, under the supervision of expert musicians.

T

his year’s Festival and Clinical Workshops attracted more than 150 participants from Poland, Australia, Russia, Ukraine, Greece, Hungary, Singapore, Germany, Kazakhstan, Portugal, the UK, Taiwan, Philippines, Spain, Serbia, and China. After a preliminary selection, the jury invited 25 participants to Kajetany. The Gala Concert featured the 10 finalists and the invited guest performers. Professor Ryszard Zimak, Chairman of the Festival Jury, said: “Many participants are artistically talented and give really professional performances on stage.”

In addition to the laureates, the finale featured invited guest performers from Poland and abroad who were no strangers to hearing problems. The stage was taken by Dariusz Tokarzewski, a musician from the “Vox” group, the Tekla Klebetnica band, and singers Barbara Kaczyńska and Maciej Miecznikowski.

The Concert started with “Ballada o Słuchu” (A Ballad about Hearing) performed by Dariusz Tokarzewski (lyrics by Professor Henryk Skarżyński, music by Professor Krzesimir Dębski). Other performers were by Małgorzata Strycharz-Dudziak, Estera Łabiga, and Olaf Kaca, Professor Henryk Skarżyński’s patients – laureates of previous editions of the “Ślimakowe Rytmy” Festival – accompanied by the Divertimento chamber orchestra. For the final piece, the audience was treated to “Świat, który słyszę” (The World I Hear), the Festival anthem, performed by Workshop participants and other performers. The anthem was first performed by Barbara Kaczyńska and Maciej

Miecznikowski in 2016 during the 2nd edition of the “Ślimakowe Rytmy” (Beats of Cochlea) Festival. Its lyrics were written by Professor Henryk Skarżyński, and music was composed by Professor Krzesimir Dębski. Anna Adamowska and Maciej Miecznikowski were the Concert’s compères.

The Concert in Kajetany was attended by many renowned guests. We had the pleasure to welcome such guests as Professor Bogusław Liberadzki, Vice-President of the European Parliament, Minister Marek Michalak, the Ombudsman for Children, Minister Marek Posobkiewicz, Chief Sanitary Inspector, Janusz Piechociński, former Deputy Prime Minister and Minister of the Economy, Professor Michał Kleiber, Vice-President of the European Academy of Sciences and Arts (EASA), and Professor Leszek Rafalski, former Minister of Science, and President of the Polish Academy of Sciences (PAN), now Chairman of the Main Council of Research Institutes, as well as other representatives of Parliament, and the worlds of science, culture, economics, the Church and the media.

Professor Henryk Skarżyński, the initiator and coordinator of the programme and the concert, repeatedly emphasised the role of music in the therapy of people with ear implants.

“Music therapy requires the presence of music therapists, meaning clinicians who manage the use of music during treatment. Music therapy is all about the regular and methodical use of music to diagnose, treat and support patients in their development, based on interdisciplinary knowledge, particularly from such fields as psychology, medicine and musicology.

With reference to hearing disorders, it is understood as a form of therapy which facilitates speech and hearing rehabilitation in people with ear implants who are partially or completely deaf. Carefully selected music, based on the appropriate frequencies, can significantly shorten the process of hearing rehabilitation,” Professor Skarżyński added.

The concert was organised specifically at the World Hearing Centre in Kajetany to show that a hospital does not necessarily have to evoke negative associations, especially in younger patients, but it can be a place which supports growth and education across many domains.

After the concert, representatives of the Polish Success Academy and the Polish Business Club gave Professor Henryk Skarżyński a museum replica of “Polonia”, a painting by Wojciech Siudmak, and the World Hearing Centre team gave him a commemorative fossil in the shape of a snail.

In order to commemorate the 25th anniversary of the first cochlear implant in a deaf patient by Professor Henryk Skarżyński, the 15th anniversary of the first surgery by Professor Henryk Skarżyński to bring back hearing to a partially deaf person, and the 20th anniversary of launching the programme of preservation of existing pre-operative residual hearing, there was also a special meeting for patients and their families. During the meeting, implanted patients, a group 60 strong, have broken their own previous Guinness World Record for the largest gathering of people with • medical ear implants.

7-8/2017 polish market

75

READ and ye shall find Culture

For over 15 years The ABCXXI Foundation – All of Poland Reads to Kids has advocated that daily reading to kids teaches them to speak and think, and develops their sensitivity, empathy and imagination. Reading satisfies children's emotional needs, helps them train their memory and the ability to focus, teaches them to tell good from evil, and protects them from the threats from popular culture. Irena Koźmińska, the Founder and President of the Foundation, the winner of "Polish Market’s" Honorary Pearl 2014 in the category “promoting social values”, talks to Maciej Proliński about the events associated with the jubilee of the reading campaign.

Maciej Proliński

I

n today's image-dominated world, children are having increasing problems with speaking and writing. Their busy parents are often unable to find time to talk to or play with them, let alone read to them. Therefore, it is important to make parents aware of the need to spend time with their children and to build the reading habit from early childhood. The ABCXXI Foundation – All of Poland Reads to Kids has for over 15 years consistently reminded adults of the need to find time for reading, and to simultaneously build a long-lasting emotional bond with their children, which is very important for their future development, and brings manifold results.

The Foundation's mission comprises supporting the psychological, mental and moral development of children and adolescents, and spreading knowledge about wise upbringing.

Thanks to our activities, the concepts of reading and teaching values have been enthusiastically accepted by Polish society. Similar programmes inspired by our reading campaign have also been launched in the Czech Republic – “Celé Česko čte dětem”, in Slovakia – “Celé Slovensko čita detiom”, in Lithuania – “Visa Lietuva skaito vaikams”, in Ukraine and even in Kyrgyzstan.

On the 15th anniversary of the reading campaign we launched several interesting publishing projects. The first, published in cooperation with the Prószyński i S-ka publishing house, is a collection of 15 short stories on moral values, entitled “Gorzka czekolada i inne opowiadania o ważnych sprawach” (Dark chocolate and other stories about important things), which is about the-most important values in life – respect, decency, friendship, fairness, courage, and freedom, and also optimism, kindness and beauty. The authors of most of the short stories are winners of the Astrid Lindgren Memorial Literary Competition, organised by the Foundation since 2006, including Barbara Kosmowska

76 polish market

and Paweł Beręsewicz. The story about wisdom was written by Andrzej Maleszka, a popular author of best-selling children's books, and an outstanding director. “There are few books which treat young readers equally seriously,” literary scholar Dorota Koman wrote about the book, “Excellently written and illustrated, funny, moving and thought-inspiring.”

Our second publishing tool for building a bond with children and encouraging them to read is the new collection “All of Poland Reads to Kids” consisting of some non-obvious pearls of literature, i.e. the lesser-known books which have been unfairly forgotten or are completely new on the Polish market. This is the second collection of its kind to be published in cooperation with the "Polityka" weekly. The first, created 10 years ago, and consisting of 23 titles, turned out to be a great success.

This time the collection features 15 books by such authors as Astrid Lindgren, Václav Čtvrtek, Maurice Druon and Gianni Rodari. All the books in the collection are written or translated according to the highest standards of the Polish language. Their aim is to develop good taste in literature and a sense of humour, and to convey positive values. The collection features titles which the editors were not able to include in the first collection and some which the Foundation came across later. The selection has an outstanding literary value, enriches the readers’ knowledge, and develops their empathy, kindness and responsibility, and also presents stories about the world which will not leave anyone unmoved – including adults!

The third, smaller, project is called “Autografnik (Autograph book)”, which is an elegantlooking album for collecting signatures and dedications from 15 authors! Especially during book fairs it happens that children come to writers for autographs with scraps of paper torn out of anything they could find... This is not a pleasant situation for the artists, and the

children can easily lose such an autograph, so we are providing them with something which facilitates collecting autographs in an aesthetic and permanent form.

In October we invite everyone to the Olympic Centre in Warsaw for the Foundation's Jubilee Charity Ball, concluding the 15th anniversary of the reading campaign which is under the Honorary Patronage of the Polish Olympic Committee and which will be an opportunity to showcase our successes and express our gratitude towards the Ambassadors of the Foundation and its Partners. “During the Ball we will appoint another Ambassador of the Foundation, Mr Kajetan Kajetanowicz, European Rally Champion. It is crucial that famous and admired sportspeople support reading, because such role models are particularly appealing for boys, who are not always enthusiastic about reading,” says Irena Koźmińska.

•

KRS: 00000 97051; www.calapolskaczytadzieciom.pl

The Open Window: A Sense of Freedom "Thanks to theory, I know. Thanks to practice, I feel" Janusz Korczak, The Special School 1925

Learn from leading thinkers and innovators inspired by the philosophy, life and work of Janusz Korczak.

The theme of the conference is: The Child; The Subject; The Agent; The Citizen; The Person.

The 4 Pillars of the Conference: Day 1: The Rights of the Child Day 2: Philosophy, Pedagogy and Practice Day 3: History and Remembrance Day 4: Children’s Rights – Uncovering the Future The Conference offers an ideal opportunity to participants and presenters to expand their knowledge via innovative and inspiring modes, including workshops, discussions, performance and exhibition events with keynote and research presentations. The goal is to raise awareness and deepen understanding of Korczak philosophy, inspiring and encouraging reflection and action on personal, local and global levels.

Organized by

Taking place on Sept. 13–16, 2017 POLIN Museum of History of Polish Jews, Warsaw, Poland

Register on www.korczak2017.com

Media

Finance

LOOKING FOR NEW MARKETS

On 26 June 2017 in Warsaw the Ministry of Economic Development hosted the 15th Anniversary Programme Conference of the Polish Exporters Association (the SEP). It focused on the foreign expansion of businesses as part of the Strategy for Responsible Development.

25 companies received Congratulatory Letters and “Polish Export Leader” Cups.

Maciej Proliński

Mieczysław Twaróg

T

he 15th Anniversary Conference was attended by, among others, Undersecretary of State in the Ministry of Finance and Deputy Head of the National Revenue Administration Piotr Walczak, who spoke of the prospects for the foreign expansion of Polish companies. “Increasing exports is a priority of the Government listed in the Strategy for Responsible Development, as all strong economies are built on exports. In the long run, our primary objective is to make Polish exports more geographically diversified.

This involves looking for new markets outside Europe. Currently 80% of Polish exports go to EU countries and 88% to European countries in general, including those not in the EU. Exports to other continents represent a meagre 12%. To change this, amendments to legal regulations aimed at strengthening our exports are being prepared, including one giving more power to the Polish Investment and Trade Agency (PAIH), which will be entrusted with more tasks, such as providing advisory services to exporters.

Also, 69 PAIH-affiliated trade offices are to be opened in various countries. As for non-European countries, promotional activities will be focused on those considered the most prospects – Algeria, India, Iran, Mexico and Vietnam. Developing exports to African countries will be another priority,” he said.

Undersecretary of State in the Ministry of Agriculture and Rural Development Ryszard

78 polish market

President of the Board of the Association of Polish Exporters

Zarudzki spoke of the export potential of the agriculture and food industry. He emphasised that the current exports of agricultural products account for about EUR25 billion in revenues, and their share in Poland's total exports is 13%.

“Our greatest ‘export hits’ when it comes to agricultural products include cow’s milk, pork, poultry and cereals. 82% of the current exports of agricultural and food products go to the EU market, and the top countries are Germany and the United Kingdom. Because of the latter’s high position, one of the tasks now is to protect ourselves against the effects of Brexit in terms of exports.”

Minister-Counsellor at the Ministry of Foreign Affairs Cezariusz Kwaterski presented the Ministry’s actions in the field of economic diplomacy. “Creating favourable conditions for the development of trade and economic contacts and supporting the foreign activities of businesses currently make up increasingly important components of our foreign policy.

Economic issues are almost always present during foreign visits by Ministry of Foreign Affairs leaders, and meetings at home with delegations from other countries. The direct participation of representatives of exporters and investors, the presentation of their packages, and meetings with potential foreign partners, are becoming fixtures in official international meetings. Such actions are mainly addressed at the so-called difficult markets (for example

due to their distances) and markets in which the role of state administration in the field of establishing economic contacts remains a key factor. Among a number of such initiatives there was April’s first-ever visit of a Polish President to Mexico. During the visit, Andrzej Duda had discussions with the President of Mexico Enrique Peña Nieto, and took part in the Polish-Mexican Economic Forum and an official session of the Senate. Several bilateral agreements were signed on such matters as mutual investment support and mutual funding. Representatives of the Ministry of Foreign Affairs also attend similarly important meetings in Poland, such as this year’s 9th European Economic Congress in Katowice.

It included the presentation of the Economic Investment Report on Poland prepared by The European Times (TET) in cooperation with the Ministry of Foreign Affairs. This is the second Report on Poland after the one released in 2012.

It presents Poland’s economic situation and the prospects for economic growth, its stable public finance system, the favourable business and investment climate, and trade development,” said Minister Kwaterski.

The statement adopted by the 15th Programme Conference of the SEP predicts that Polish exports will rise in 2015-2020, reaching by 2020 a projected value of EUR240 billion, including EUR35 billion in agriculture and food exports. To achieve these figures, new export-conducive investments must be launched, including as part of Government contracts. In the statement, the Association also pointed to the need to further simplify the operating conditions of companies exporting their products and suggested that businesses should focus on priority and promising export destinations. It also stated that economic diplomacy activities should be strengthened, particularly in the countries crucial for export development (especially non-European) and that new systemic solutions should be introduced to optimise the use of EU funds for export promotion (such as simplifying the procedures for obtaining funding).

•

Food Industry

HEALTH FOODS

ARE OUR TRADEMARK O

ne of the main goals of the Polska Ekologia (Polish Ecology) Association is to educate the public through disseminating knowledge about eco-foods. The Association reaches out to consumers directly at various trade events and fairs, as well as through media publications and campaigns. As an example, we would like to present products by the Siejeje company and organic cattle breeding at the Highland Beef from Pilica River Banks farm. The underlying concept that guides these firms and other members of the Polish Ecology Association is making sure that all the products are health foods with the highest nutritional values. At the same time, both farms have decided to maintain traditional methods, while responding to the needs and requirements of the consumer market.

SIEJEJE BIO WAFFLES FOR SCHOOLKIDS AND MOUNTAINEERS What to pick for breakfast? What lunch to pack to school? Whose advice to follow? These are the questions parents keep asking themselves. But answers can usually be found at the least appropriate place: in ads.

Unfortunately, recommendations by dieticians and organic nutrition experts are drowned in a sea of aggressive marketing and relentless advertising.

Jolanta Lyska, Director of the Polish Ecology Association: "It’s good to take a moment to consider the message of scientists working for the WHO Regional Office for Europe, according to which ‘marketing of food products is an obesity risk factor, especially in children.’ Choosing what to have for breakfast is a good case in point. At one end of the scale are the much-advertised cereals, usually cornflakes, with a high sugar content, usually disguised as sucrose or fructose-glucose syrup. At the other end of the scale is highly nutritious porridge and health waffles."

The selection of waffles is large. The waffle market is worth some PLN 160 million. But the healthiest choice are those containing nutritious grains such as amaranth, buckwheat husks and spelt. The school or office lunchbox can also include slices of raw vegetables. The Siejeje firm from Kalisz, a member of the Polish Ecology Association, offers a dozen tips for various mouth-watering food combinations.

"Our company Siejeje gives pride of place to products suitable for kids," Rafal Wojciechowski explains. "A new product which has just hit the market are eco-waffles sold under the Biojeje brand. These are not just a health food, but they also bear a BIO mark, a guarantee that all the ingredients are natural and free from genetically modified products. We use natural processes without any preservatives, colouring and artificial flavour

enhancers. Significantly, Siejeje was set up in the Kalisz region where many waffle producers operate but it has opted for BIO standard health foods. The company name Siejeje is actually a pun combining the Polish words for ‘sowing’, like the sowing of seeds of healthy eating, and ‘eating’. Our list of products includes amaranth, buckwheat, spelt and classic wheat and rice waffles, all of them organic.

All products can be used in various ways. You can make snacks with fruit, nuts and vegetables to suit your taste buds. They can be added to salads, soups and desserts.

Eco-friendly company management, the introduction of pro-ecology solutions and using renewable energy sources helps conserve nature’s resources."

Such nutritious waffles should find their way not only to a school backpack, but should also be served for breakfast each morning because they give you enough energy to last the whole day. They are also a must inside a yachtsman’s duffel-bag before he sails out to sea. They can just as well serve as the emergency food ration for a mountain climber.

A good example of a healthy substitute for snacks, or bread while making sandwiches, are amaranth waffles, which also contain wheat flour, brown rice, coconut oil and a pinch of sea salt. The addition of amaranth flour is particularly valuable. After all, it is one of the world’s oldest grains. Native Americans called it ‘immortal’ because 7-8/2017 polish market

79

Food Industry it contains squalene, a very powerful antioxidant. It contains five times more iron than wheat, more protein than soybeans and milk while its magnesium content puts chocolate to shame. Buckwheat waffles, which contain plenty of fibre and amino-acids, also have added ground buckwheat husks, which are known as vitamin bombs. They contain B3 and B9 vitamins, as well as plenty of minerals: zinc, silica and iron. The latter is also added to spelt waffles. This ancient form of wheat is considered one of God’s gifts as it boosts immunity, detoxifies the body, helps fight fatigue and sharpens your senses. And these are not all of its health benefits.

According to the Mitel report, 3 in 10 Poles say they eat rice waffles. But they really should be picking ones that are best for them, waffles bearing the BIO logo. The rice waffle segment in Poland is still a niche market but it is picking up slowly. Poles are known to reach for snacks quite often. Aware of health food considerations, they are increasingly going for healthier snacks in place of sugar-loaded bars and yeast buns. The recent controversy over what food should be sold at schools has opened the gates for organic products like the ones described above. Siejeje is launching a new line of eco-waffles this autumn, specially designed for the youngest. Hopefully, they will reach for them as often as possible, for their own good.

ROYAL BEEF FROM PILICA RIVER BANKS Scottish Highland Cattle Beef is greatly appreciated by top chefs. They point out how juicy and marbled it is, with a fat content which is 38% lower than in other types of beef. They also say it has a slightly gamey flavour. These qualities are valued by the British royal family which owns a large herd of Highland cattle bred specially for it near Balmoral castle. Łukasz Krupiński of the Polish Ecology Association knows the secret of how to breed cattle whose meat is of such superior quality: "This breed’s meat is known as royal beef.

It has the aroma of hay and herbs which grow on the pasture where cows graze. It is organic. It contains no additives or hormones coming from cattle feed. The secret of its flavour is the slow increase in mass of the cattle which is bred for 24 to 36 months. Because of the breed’s thick coat of hair, which acts as natural thermal insulation, there are no fat deposits under the skin.

The meat is tender, lean, juicy and refined in taste. It contains little cholesterol and fat. Compared to other types of beef, it also has a bigger amount of A, D and E vitamins and several times more good Omega 3 fats, which lower bad cholesterol levels. It

80 polish market

is perfect for steaks. In the British Isles, this kind of beef is regarded as the best. It fetches the highest prices.

On my Highland Beef from the Pilica River Banks farm I pick meadows full of fragrant herbs. This natural cattle feed translates into great-tasting beef."

The story of the Scottish Highland breed, regarded as the oldest beef cattle breed coming from Scottish highlands, is a long one. It is thought that it was imported into the region by ancient Celts. Archaeologists have found traces of it dating back to the 6th century. It is mentioned in 12th century chronicles. It found its way to Poland in the 19th century and settled here pretty well enjoying the fresh air and unspoilt pastures all year round…

"Our herd is bred on an organic farm. Cattle graze on natural meadows on the banks of the Pilica river," Łukasz Krupiński adds. (His family’s name has been well-known in cattle breeding and animal studies circles for several generations.) "It is also an area covered by the Nature 2000 programme. The cattle graze on our pastures throughout the grazing period. In the winter it is fed hay. This breed of cattle is very sturdy. It is resistant to disease and can cope with adverse weather. The slow, natural increase in body weight, the way the cattle are kept and fed, and the breed itself, are the reason why the beef is top-notch."

Demand is slowly growing for rare culinary beef, which is so different from your usual supermarket beef. Polish beefeaters following in the footsteps of the guards of the Tower of London, have developed a taste for better quality beef once they have tasted imported Argentinian and Brazilian beef.

The number of Polish organic meat suppliers is growing steadily. Highland Beef from

the Pilica River Banks definitely deserved its place on the list.

"Using this beef, chefs and gourmets, as well as those who enjoy healthy meals made from organic food, can conjure up carpaccio, steak tartare and Scotch roast. This roast is spiked with bacon and, very importantly, basted with whisky. Scotch whisky of course," Łukasz Krupiński recommends.

•

The Polish Ecology National Association of Processors and Producers of Organic Products brings together persons and firms dealing with the production of food from certified organic ingredients. The Association’s main goal is to represent the whole eco food branch in active work for the development of the eco market. Over more than a decade of its existence, the Association has launched a number of campaigns to promote the most valuable Polish food at home and abroad.

Since 2015 it has been conducting a three-year Polish organic food campaign in the US, Japan and Singapore.

Poles increasingly appreciate health foods which are natural, fresh, certified, coming from reliable producers and with recognisable brands – that is the result of the study entitled "Who’s Tempted by Health Food?", conducted by the Evaluation Centre.

It turns out that as many as 34% of Polish people pay attention to certified foods, credit for which must partly go to the Polish Ecology Association.

The organisation’s President is Paweł Krajmas, an experienced, certified master pork-butcher, an authority in organic food production circles. With a number of awards to his credit, he is also known as a public activist in the Podkarpacie region in southern Poland.

For more than a decade the Association’s day-today operation has rested in the hands of Managing Director Jolanta Lyska, the driving force of the organisation.

104 polish market

Doing now what patients need next Headquartered in Basel, Switzerland, Roche is a leader in researchfocused healthcare with combined strengths in pharmaceuticals and diagnostics. Roche is the world’s largest biotech company, with truly differentiated medicines in oncology, infectious diseases, inflammation, metabolism and neuroscience. Roche is also the world leader in in vitro diagnostics and tissue-based cancer diagnostics, and a frontrunner in diabetes management.

Roche’s personalised healthcare strategy aims at providing medicines and diagnostic tools that enable tangible improvements in the health, quality of life and survival of patients.

For more information, please visit www.roche.com.