Poland: analysis of selected economic sectors

Poland: analysis of selected
economic sectors
December 2006
PMR
Authors of the report:
Marcin Sadowski, Managing Editor
PMR Publications
[email protected]
Szymon Konop, Head of Consulting Services
PMR Consulting
[email protected]
Stathis Karaplios, Senior Consultant
PMR Consulting
[email protected]
Paweł Sionko, Economist
PMR Publications
[email protected]
Joanna Nowak, Analyst
PMR Publications
[email protected]
This report contains information obtained and collected from many publicly available sources and is based on research
conducted by PMR Ltd. It should be viewed exclusively as providing general guidelines and not investment or other advisory.
Therefore, it should not be used as a basis for making any investment decision, and it does not release third persons from
exercising due care in verifying its content.
PMR Ltd. shall not be held liable for any consequences of decision taken based on information presented in this report.
www.pmrcorporate.com
Poland: analysis of selected economic sectors
Table of contents
Introduction��11
1. Poland – general information��12
1.1. Geographical location��13
1.2. Population��13
1.3. Transport infrastructure��13
1.3.1. Road transport��13
1.3.2. Airports��15
1.4. Economic environment��15
1.4.1. Gross domestic product��16
1.4.2. Industrial output��17
1.4.3. Inflation��17
1.4.4. Unemployment��18
1.4.5. Foreign trade��18
1.5. Regulatory environment ��19
1.5.1. Business activity��19
1.5.2. Tax system��19
1.6. Special Economic Zones��20
www.pmrcorporate.com
Poland: analysis of selected economic sectors
2. Business Processes Offshoring (BPO) sector��23
2.1. Dolnoslaskie voivodship��25
2.1.1. Largest companies with service centres set up
in the region as part of BPO ��25
2.1.2. Workforce availability��26
2.1.3. Costs of doing business��28
2.1.4. Availability of investment sites ��30
2.2. Lodzkie voivodship��30
2.2.1. Largest companies with service centres set up
in the region as part of BPO ��30
2.2.2. Workforce availability��31
2.2.3. Costs of doing business��33
2.2.4. Availability of investment sites ��34
2.3. Lubelskie voivodship��35
2.3.1. Largest companies with service centres set up
in the region as part of BPO ��35
2.3.2. Workforce availability��35
2.3.3. Costs of doing business��37
2.3.4. Availability of investment sites ��38
2.4. Malopolskie voivodship��38
2.4.1. Largest companies with service centres set up
in the region as part of BPO ��38
2.4.2. Workforce availability��39
2.4.3. Costs of doing business��42
2.4.4. Availability of investment sites ��43
www.pmrcorporate.com
Poland: analysis of selected economic sectors
2.5. Mazowieckie voivodship��44
2.5.1. Largest companies with service centres set up
in the region as part of BPO��44
2.5.2. Workforce availability ��45
2.5.3. Costs of doing business��47
2.5.4. Availability of investment sites��48
2.6. Slaskie voivodship��49
2.6.1. Largest companies with service centres set up
in the region as part of BPO ��49
2.6.2. Workforce availability��49
2.6.3. Costs of doing business��50
2.6.4. Availability of investment sites��52
2.7. Wielkopolskie voivodship��53
2.7.1. Largest companies with service centres set up
in the region as part of BPO��53
2.7.2. Workforce availability��53
2.7.3. Cost of doing business��55
2.7.4. Availability of investment sites��56
3. Advanced technologies (high-tech) sector��57
3.1. Dolnoslaskie voivodship��58
3.1.1. Largest high-tech companies in the region ��58
3.1.2. R&D institutions in the high-tech sector��59
3.1.3. Workforce availability��59
3.1.4. Costs of doing business��61
3.1.5. Availability of investment sites��63
www.pmrcorporate.com
Poland: analysis of selected economic sectors
3.2. Kujawsko-Pomorskie voivodship��64
3.2.1. Largest high-tech companies in the region��64
3.2.2. R&D institutions in the high-tech sector��64
3.2.3. Workforce availability��65
3.2.4. Costs of doing business��66
3.2.5. Availability of investment sites��67
3.3. Malopolskie voivodship��68
3.3.1. Largest high-tech companies in the region ��68
3.3.2. R&D institutions in the high-tech sector ��68
3.3.3. Workforce availability��70
3.3.4. Costs of doing business��72
3.3.5. Availability of investment sites��73
3.4. Mazowieckie voivodship��74
3.4.1. Largest high-tech companies in the region ��74
3.4.2. R&D institutions in the high-tech sector��75
3.4.3. Workforce availability��76
3.4.4. Costs of doing business��78
3.4.5. Availability of investment sites��79
3.5. Pomorskie voivodship��80
3.5.1. Largest high-tech companies in the region��80
3.5.2. R&D institutions in the high-tech sector��81
3.5.3. Workforce resources��82
3.5.4. Costs of doing business ��84
3.5.5. Availability of investment sites��86
3.6. Slaskie voivodship��88
3.6.1. Largest high-tech companies in the region��88
3.6.2. R&D institutions in the high-tech sector��89
3.6.3. Workforce availability��89
3.6.4. Costs of doing business��91
3.6.5. Availability of investment sites��93
www.pmrcorporate.com
Poland: analysis of selected economic sectors
4. Automotive sector��96
4.1. Traditions of the automotive sector��97
4.2. Current situation in the sector��98
4.2.1. Major manufacturers��98
4.2.2. Output and employment��100
4.3. Growth prospects for the sector��101
4.4. Selected sites for automotive investments��101
4.4.1. Dolnoslaskie voivodship��101
4.4.1.1. Industrial traditions of the region��101
4.4.1.2. Large companies operating in the automotive
industry��102
4.4.1.3. Business support institutions��103
4.4.1.5. Workforce availability ��103
4.4.1.5. Costs of doing business ��105
4.4.1.6. Availability of investment sites��107
4.4.2. Slaskie voivodship��108
4.4.2.1. Industrial traditions of the region��108
4.4.2.2. Large companies operating in the automotive
industry ��108
4.4.2.3. Sector-specific scientific and research centres��110
4.4.2.4. Business support institutions��110
4.4.2.5. Workforce availability ��111
4.4.2.6. Costs of doing business��113
4.4.2.7. Availability of investment sites��115
www.pmrcorporate.com
Poland: analysis of selected economic sectors
5. Aviation sector��117
5.1. Traditions of the aviation sector��118
5.2. Aviation sector today��119
5.2.1. Aviation firms established as a result
of the transformation of former WSK entities��120
5.2.2. Foreign investors in the Polish aviation industry��120
5.2.3. Aviation companies in the SME sector��121
5.3. Key sub-suppliers for the aviation sector��122
5.4. Sector-specific scientific and research centres��123
5.5. Business support institutions��124
5.6. Workforce availability��125
5.7. Availability of investment sites��126
6. Pulp and paper sector��129
6.1. Conditions promoting investments
in the pulp and paper industry��130
6.2. Traditions of the pulp and paper industry��130
6.3. Feedstock availability ��131
6.3.1. Wood pulp��132
6.3.2. Primary fibre pulp��133
6.3.3. Secondary fibre pulp��133
6.4. The largest producers��135
6.4.1. Producers of hygienic paper��135
6.4.2. Paper producers��136
6.4.3. Largest board producers��137
www.pmrcorporate.com
Poland: analysis of selected economic sectors
6.5. Sector-specific scientific and research centres��140
6.6. Availability and cost of qualified staff��143
6.7. Availability of investment sites��145
6.7.1. Lubuskie voivodship��145
6.7.2. Mazowieckie voivodship��146
6.7.3. Warminsko-Mazurskie voivodship��146
6.7.4. Wielkopolskie voivodship��147
7. Household appliance sector��148
7.1. Traditions of the household appliance sector��149
7.2. Current situation in the household
appliance sector��149
7.2.1. The largest market players��149
7.2.2. Output��150
7.3. Growth prospects for the sector��150
7.4. Select locations for investments
in the household appliance sector��151
7.4.1. Dolnoslaskie voivodship��151
7.4.1.1. Industrial traditions of the region��151
7.4.1.2. Large companies operating in the household
appliance sector��151
7.4.1.3. Business support and scientific and
research institutions��152
7.4.1.4. Workforce availability��152
7.4.1.5. Costs of doing business ��154
7.4.1.6. Availability of investment sites��156
www.pmrcorporate.com
Poland: analysis of selected economic sectors
7.4.2. Lodzkie voivodship��157
7.4.2.1. Industrial traditions in the region��157
7.4.2.2. Large companies operating in the household
appliance sector ��157
7.4.2.3. Business support institutions��158
7.4.2.4. Workforce availability��158
7.4.2.5. Costs of doing business��160
7.4.2.6. Availability of investment sites��162
List of graphs��164
List of tables��166
About PMR��169
Contact PMR��170
10
www.pmrcorporate.com
Poland: analysis of selected economic sectors
Introduction
In the last few years, foreign investors have become increasingly more interested in Poland.
Following a period of a slight slowdown in FDI inflow, since 2004 the value of foreign
investments has clearly gone up compared with the beginning of the present decade. Poland,
with its educated and qualified employees, dynamically developing economy, advantageous
localisation in the centre of Europe and upbeat prospects for the near future, has become
attractive for foreign investors from many industries.
This report analyses six economic sectors: BPO, high-tech, automotive, aeroplane,
pulp and paper, and household appliance manufacturing. The abovementioned sectors are
examined for the presence of international firms operating in the mentioned industries,
workforce availability, the costs of doing business, and R&D institutions and centres active in
a given sector.
The report provides a more in-depth analysis of selected voivodships, in which investors
can count on particularly attractive conditions for investing in a given sector. The authors
have also provided a listing of selected interesting investment sites in each region. In most
cases, the selected investment sites are located in special economic zones, or industrial or
technological parks. This is because the zones have been successful in attracting increasingly
more investors for quite some time by offering opportune forms of business support and
attractive sites. Additionally, under existing regulations an investment site can be incorporated
into a special economic zone as long as an investor meets defined conditions.
Other comments
Values in PLN were translated into the euro using the following exchange rate: 1 EUR = 3.9 PLN.
www.pmrcorporate.com
11
Poland: analysis of selected economic sectors
1. Poland – general information
Sweden
Lithuania
a
Baltic Se
Ustka
Swinoujscie
Kolobrzeg
Szczecin
Russia
Gdynia
Gdansk
Elblag
Bialystok
Bydgoszcz
Belarus
W
Warta
Germany
isla
Poznan
WARSAW
Zielona
Gora
Lodz
Odra
Radom
Wroclaw
Lublin
Czestochowa
Opole
Gliwice
Katowice
la
Wis
Rzeszow
Ukraine
Krakow
Czech Republic
Slovakia
Poland – general information
Economy
Politics
Total
PMR088
Area:
312,685 km
Population:
38.1 million
Capital:
Warsaw
Language:
Polish
Political system:
Parliamentary democracy
President:
Lech Kaczynski
Prime Minister:
Jaroslaw Kaczynski
Date of accession to the EU:
1 May 2004
GDP (2005):
€243.3bn
GDP per capita (2005):
€6,370
Inflation (Oct 2006):
1.2%
Unemployment rate (Oct 2006):
14.9%
Source: PMR, 2006
12
2
www.pmrpublications.com
www.pmrcorporate.com
Poland: analysis of selected economic sectors
1.1. Geographical location
Poland is situated in the centre of continental Europe and neighbours: Germany (456 km
– shared boarder length), Czech Republic (658 km), Slovakia (444 km), Ukraine (526 km),
Belarus (407 km), Lithuania (453 km) and Russia (Kaliningrad oblast). Poland also boarders
the Baltic sea ((491 km). The country has an area of 312,685 km2. The capital city, Warsaw, is
located in central-western Poland. Other large cities include: Krakow, Poznan, Lodz, Wroclaw,
Gdansk and Rzeszow. Poland is divided into 16 main administrative units, called voivodships.
1.2. Population
Poland has a total of 38.1 million inhabitants. For several years, the country’s population has
been gradually decreasing. Currently, the young (aged below 18) still account for a greater
percentage share than the elderly (men aged over 65 and women over 60) – 20.1% and
15.7% respectively. However, owing to the declining population size and the rising average
live span, the gap between the two age groups has been shrinking steadily for several years.
Select demographic indicators in Poland, 2006
PMR089
Demographic indicators
Population
Change in population size
Age structure
< 18 years
18-64 years – men
18-59 years – women
> 65 years
Projected life span
Source: Polish Statistical Office (GUS), 2006
38.1 million
-0.06%
20.1%
64.2%
15.7%
74.7 years
www.pmrpublications.com
Despite its multicultural past, at present Poland has a stable ethnical composition, most of
its inhabitants being native Poles – 96.7% of the population. The largest national minorities
include: German (0.4% of total population), Belarusian (0.1%) and Ukrainian (0.1%). Polish is
the official language of Poland.
1.3. Transport infrastructure
1.3.1. Road transport
Today, the national road network has an aggregate length of ca. 379,500 km, including hardpaved roads of ca 250,000 km, which gives 79.6 km of roads per 100 km2. The road network
includes:
n
national roads – 18,368 km (including streets in urban areas, 5% of the total)
n
voivodship roads – 28,444 km (8%)
n
county roads – 128,870 km (34%)
n
municipal/communal roads – 203,773 km (53%).
www.pmrcorporate.com
13
Poland: analysis of selected economic sectors
At present, Poland has a total of 673 km of motorways and 230 km of expressways.
Based on plans, Polish motorway and expressway network is to have over 9,000 km by the
end of 2013. Plans provide for a system of motorways composed of the following routes
(in brackets information on the main foreign destinations of the planned routes):
n
A1 motorway: Gdansk-Torun-Lodz-Czestochowa-Gliwice-Gorzyczki-boarder crossing(Ostrawa), length: 564 km
n
A2 motorway: (Berlin)-boarder crossing-Swiecko-Poznan-Warsaw-Siedlce-Kukurykiboarder crossing-(Minsk), length: 651 km
n
A4 motorway: (Dresden)-boarder crossing-Jedrzychowice-Krzyzowa-Legnica-WroclawOpole-Gliwice-Katowice-Krakow-Tarnow-Korczowa-boarder crossing-(Lvov), length: 779 km
n
A6 motorway: (Berlin)-boarder crossing-Kolbaskowo-Szczecin (S3, Rzesnica interchange)
n
A8 motorway: Wroclaw ringroad, section A4-Psie Pole
n
A18 motorway: (Berlin)-boarder crossing-Olszyna-Krzyzowa (A4).
Planned motorway network in Poland
PMR098
Gdansk
Suwalki
Elblag
Koszalin
Szczecin
Olsztyn
Kolbaskowo
Ciechanow
Torun
Gorzow Wlkp.
Poznan
Olszyna
Lomza
Bydgoszcz
Pila
Leszno
Ostroleka
WARSAW
Konin
Kalisz
Lodz
Sieradz
Radom
Zgorzelec
Legnica
Walbrzych
Wroclaw
Opole
Czestochowa
Katowice
Krakow
Bielsko-Biala
Gorzyce
Source: GDDKiA, 2006
14
Bialystok
Wloclawek
Siedlce
Lublin
Kielce
Tarnobrzeg
Zamosc
Tarnow Rzeszow
Krosno
www.pmrpublications.com
www.pmrcorporate.com
Poland: analysis of selected economic sectors
1.3.2. Airports
The existing airport infrastructure encompasses one central airport, 11 regional airports
and 43 local ports. Warszawa-Okecie, located in Warsaw (Mazowieckie voivodship) is the
largest airport in Poland. The other regional airports are located in 10 voivodships. The largest
ports are located within the boundaries of the largest cities – Warsaw, Krakow, Katowice,
Gdansk, Poznan and Wroclaw. Airports in Zielona Gora and Szczytno, characterised by low
passenger traffic and low frequency of regular connections with other airports, have been
categorised as regional airports primarily because of the considerable distance (of over
100 km) to the nearest airport capable of handling air cargo transport of over 10 tonnes.
Passenger traffic at main airports in Poland (thousands),
2005 and Q1-Q3 2006
PMR090
Warsaw-Okecie
Krakow-Balice
Katowice-Pyrzowice
Gdansk-Rebiechowo
Wroclaw-Strachowice
Poznan-Lawica
Rzeszow-Jasionka
Lodz-Lublinek
Szczecin-Goleniow
Bydgoszcz-Szwederowo
Total
Source: airports, Civil Aviation Office (ULC), 2006
2005
7,071.9
1,586.1
1,092.4
667.9
465.5
399.3
94.0
18.1
100.8
39.7
11,501.2
Q1-Q3 2006
6,245.6
1,748.6
1,100.6
935.4
607.4
495.9
157.7
152.0
139.0
100.4
11,685.4
www.pmrpublications.com
1.4. Economic environment
Following the collapse of communism in 1989, the Polish economy had to go through
a difficult period of restructuring in order to create an economy founded on free market
principles. After more than two years of declines, Poland returned onto a path of economic
growth in 1992. The gradual privatisation and restructuring of state-owned enterprises has
led to a steady reduction of the public sector’s share in the national economy. At the end of
the last century, the Polish government implemented pension and educational system reforms
as well as administrative and healthcare reforms.
Between 2001 and 2002 Poland’s economy slowed down, the economic growth rate
falling to 1-1.4% from over 6% noted at the end of the 1990s. Then, in 2003, the Polish
economy picked up pace, expanding at 5.3% in the year of Poland’s accession to the European
Union.
www.pmrcorporate.com
15
Poland: analysis of selected economic sectors
Poland – selected economic indicators
PMR091
GDP (%)
Industrial output (%)
Annualised inflation (%)
Unemployment rate (%, eop)
Average monthly wage (€)
Net FDI (€ bn)
Exports (€ bn)
Imports (€ bn)
Current account (€ bn)
Current account (% of GDP)
Average exchange rate: PLN/EUR
Average exchange rate: PLN/USD
2001
1.1
0.6
5.5
19.4
557
6,372
46.5
55.1
-6.0
-2.9
3.7
4.1
2002
1.4
1.1
1.9
20.0
561
4,371
49.3
57.0
-5.4
-2.7
3.8
4.1
2003
3.8
8.4
0.8
20.0
500
4,067
53.8
58.9
-4.1
-2.1
4.4
3.9
e – estimate
FDI – foreign direct investments
Source: GUS, NBP, PMR, 2006
2004
5.3
12.3
3.5
19.0
510
10,292
65.8
70.4
-8.5
-4.2
4.5
3.6
2005
3.5
3.4
2.2
17.6
595
7,703
77.6
79.8
-4.1
-1.7
4.0
3.3
2006e
5.2
11.6
1.2
15.2
640
9,000
89.8
93.3
-4.3
-1.6
3.9
3.1
www.pmrpublications.com
1.4.1. Gross domestic product
Following the period of stagnation between 2001 and 2002, the Polish GDP growth rate rose
in 2003 to 3.8%. The country’s accession to the European Union in May 2004 was beneficial
for the Polish economy, which at the time expanded at 5.3%. In the following year, the
economy slowed down slightly, in an attempt to catch its breath. Then in 2006, the economic
growth rate returned back onto the path of rapid growth, once again surpassing 5%. The
strong economic growth was powered primarily by two factors: strong internal demand,
a fruit of improvements on the labour market and rising investment activeness on part of
enterprises, and the inflow of EU funds. In the upcoming future, the economic growth rate
will remain high, at around 4.5-5%.
Real GDP growth rate in Poland (%), 2001-2007
PMR092
5.3
3.8
1.1
2001
e – estimate
f – forecast
Source: GUS, PMR, 2006
16
5.2
4.7
3.5
1.4
2002
2003
2004
2005
2006e
2007f
www.pmrpublications.com
www.pmrcorporate.com
Poland: analysis of selected economic sectors
1.4.2. Industrial output
Poland’s accession to the European Union in 2004 had a significant impact on the performance
of the industrial sector. High demand for products at the eve of the EU accession was fuelled by
changes in fiscal regulations and by fears of price hikes. The resulting higher demand generated
a more than 12% increase in industrial output. In the following year, the growth rate markedly
faltered, however, this was caused more by a high comparative base than by a true deterioration
of the industrial sector climate. The fact that the sector continued to fare well was confirmed by
its performance in 2006, when industrial output expanded once again by over 10%.
Industrial output growth in Poland (%), 2001-2007
PMR093
12.3
11.6
8.4
9.8
3.4
0.6
1.1
2001
2002
2003
2004
2005
e – estimate
f – forecast
Source: GUS, PMR, 2006
2006e
2007f
www.pmrpublications.com
1.4.3. Inflation
At the beginning of the current decade, inflation in Poland was lowered to below 2%.
The country’s accession to the EU sparked a temporary demand shock, which fuelled proinflationary pressure. Yet, this was only a temporary factor, and the following year inflation
returned to around 2%. In 2006 consumer prices rose very moderately; in the first half of the
year, Poland posted the lowest CPI in the EU, of below 1%. In the second half of the year,
inflation picked up pace slightly, to exceed 1%. Based on our forecasts, inflation should grow
further in 2007 though it will remain low, at around 2.7%. Thus, it will continue to fall within
the permissible range around the inflation target set in the monetary policy formulated by the
Monetary Policy Council (RPP), which stands at 2.5% +-1%.
Annualised inflation in Poland (%), 2001-2007
PMR094
5.5
3.5
1.2
0.8
2001
2002
e – estimate
f – forecast
Source: GUS, PMR, 2006
www.pmrcorporate.com
2.7
2.2
1.9
2003
2004
2005
2006e
2007f
www.pmrpublications.com
17
Poland: analysis of selected economic sectors
1.4.4. Unemployment
Poland has the highest unemployment rate among the EU member states. At accession to
the EU, it stood at 19.5%. Then, the following years ushered in dynamic declines in the
unemployment rate as the economy picked up pace and Poles emigrated abroad in search
for gainful employment in other EU member states. As a result, we estimate that the
unemployment rate in Poland stood at around 15% as at the end of 2006. The rate should
continue to go down further in the upcoming years.
Unemployment rate in Poland (%, eop), 2001-2007
PMR095
20.0
19.4
2001
20.0
2002
2003
19.0
2004
17.6
2005
e – estimate
f – forecast
Source: GUS, PMR, 2006
15.2
14.5
2006e
2007f
www.pmrpublications.com
1.4.5. Foreign trade
Since it accession to the European Union, Poland has posted double-digit growth in foreign
trade turnover. The abolition of tariffs and accession to the free trade zone did much to help
Polish products compete on foreign markets and, as a result, exports growth significantly
outperformed that of imports, prompting the foreign trade deficit to fall to a mere €2.2bn.
In 2006 exports continued in the steep uptrend, yet rising internal demand prompted imports
to perform better as well. This situation will continue in 2007, and imports growth will
outpace that of exports, leading to a higher foreign trade deficit.
Foreign trade in Poland (€ bn), 2001-2007
2001
2002
18
2004
Imports
2005
2006e
-6.0
107.5
101.5
93.3
-3.5
89.8
-2.2
79.8
77.6
70.4
-4.6
-5.1
2003
Exports
e – estimate
f – forecast
Source: NBP, PMR, 2006
65.8
58.9
53.8
57.0
-7.7
49.3
55.1
-8.6
46.5
PMR096
2007f
Balance
www.pmrpublications.com
www.pmrcorporate.com
Poland: analysis of selected economic sectors
1.5. Regulatory environment
1.5.1. Business activity
The Business Activity Freedom Act of 2 July 2004 is the single piece of legislation with the
greatest bearing on business activity in Poland. It regulates the commencement, performance
and discontinuation of business activity on the territory of Poland as well as the related tasks
of public administration bodies.
Foreign persons1 from member states of the European Union and of the European Free
Trade Agreement (EFTA) – signatories of the agreement on the European Economic Area (EEA)
– can commence and engage in business activity in Poland on the same conditions as Polish
entrepreneurs.
Citizens of other countries that are not EU (EEA) members can also commence
and conduct business activity in Poland on the same conditions as applicable to Polish
entrepreneurs as long as they:
n
have been permitted to reside on the territory of Poland
n
were conferred a tolerated stay permit or refugee status in Poland
n
are subject to temporary protection on the territory of Poland.
As long as international treaties do not provide otherwise, other foreign persons have the
right to commence and engage in business activity in Poland only in incorporated form, as:
n
limited partnership
n
limited joint-stock partnership
n
limited-liability company
n
joint stock company.
The above persons can also accede to the abovementioned companies and acquire or
purchase shares therein. In addition, foreign entrepreneurs2 can engage in business activity
by establishing a branch or a representative office in Poland.
1.5.2. Tax system
The Polish tax system identifies 12 types of taxes, including:
n
direct taxes:

corporate income tax (CIT)

personal income tax (PIT)

tax on actions under civil law

property tax

vehicle tax

donation and inheritance tax

agricultural tax

forest tax

dog tax
Under the act, a foreign person is:
natural person domiciled outside
of Poland, not a holder of Polish
citizenship
n legal person with registered offices
abroad
n non-incorporated organisational
unit with the right to engage in
legal actions, with registered offices
abroad.
1
n
Under the act, a foreign
entrepreneur is a foreign person
conducting business activity abroad.
2
www.pmrcorporate.com
19
Poland: analysis of selected economic sectors
n
indirect taxes:

value addend tax (VAT)

excise tax

game tax.
Main tax rates in Poland, 2006 and 2007
PMR097
VAT
PIT
CIT
2006
22% – basic rate
7% – some goods and services, e.g. goods related to
heath care, food, hotel services, folk art., crafts and
artwork
3% – temporary rate, in effect until 30 April 2008,
encompassing the supply of some agricultural products
0% – some services, (e.g. financial, healthcare,
educational, cultural)
19% (annual income up to PLN 37,024)
30% (annual income from PLN 37,024 to PLN 78,048)
40% (annual income over PLN 78,048)
19%
Dividend tax 19%
2007
22% – basic rate
7% – some goods and services, e.g. goods related to
heath care, food, hotel services, folk art., crafts and
artwork
3% – temporary rate, in effect until 30 April 2008,
encompassing the supply of some agricultural products
0% – some services, (e.g. financial, healthcare,
educational, cultural)
19% (annual income up to PLN 43,405)
30% (annual income from PLN 43,405 to PLN 85,528)
40% (annual income of over PLN 85,528)
19%
19%
www.pmrpublications.com
Source: Ministry of Finance, 2006
1.6. Special Economic Zones
Special Economic Zones (SEZ) are an important instrument for attracting and supporting new
investments in Poland. The SEZ comprise administratively separate areas of the Polish territory,
within which business activity can be conducted on special, preferential, terms defined in
the SEZ Act and other legislation. The rules for the SEZ’s operation and the procedure for
defining a zone were defined under the act of 1994. The original statute was amended in
later years in order to align Polish legislation on special economic zones with the relevant EU
requirements.
Currently, there are 14 SEZ in Poland. They differ in terms of size, location, business profile,
land development conditions, and road, technical and telecommunications infrastructure. The
zones are to operate till 2017, except for the Katowice Special Economic Zone, which will be
active a year less, and the Euro-Park Special Economic Zone in Mielec which is to discontinue
operations in 2015. With time, the SEZ will be transformed into business activity zones whose
task will be to provide entrepreneurs with an environment conducive to creating new jobs.
After 2011, new investors will not be allowed to enter the SEZ.
20
www.pmrcorporate.com
Poland: analysis of selected economic sectors
Investors operating in the SEZ are covered by special forms of business support, in
particular – tax relief. A company operating in a zone can receive:
n
exemption from income tax
n
relief from property tax
n
relief from vehicle tax
n
relief from custom duties
n
regional support available for new investments
n
regional support available for businesses creating new jobs.
n
To receive the above assistance, an investor must:
obtain a permit to conduct business activity in a zone – issued by the administration of
the zone
n
incur capital expenditure of at least €100,000.
An entrepreneur who establishes a business on the territory of a zone by virtue of
a permit issued after 31 December 2000 can draw on regional support in the form of income
tax deductions for:
n
capital expenditure incurred
n
new jobs created.
In the case of capital expenditure, the value of the exemptions is calculated as a multiple
of the maximum aid intensity defined for a given area and the costs of investments that qualify
for the deductions.
An entrepreneur drawing on regional relief available for new investments must:
n
conduct business activity in a zone for at least five years
n
own the assets connected with the capital expenditure for five years as of their entry
into the tangible and intangible fixed assets register, as provided for in income tax
regulations.
The amount of relief provided for creating new jobs related to a given investment is
calculated as a multiple of the maximum support intensity and the gross amount of twoyear costs of employing the new employees plus all the related mandatory payments. An
entrepreneur drawing on this type of support has to maintain the newly-created jobs for at
least five years.
The maximum percentage value of support for nearly the entire territory of Poland
stands at 50%, except for municipal counties of Wroclaw, Krakow, Gdansk, Gdynia and Sopot,
for which the rate amounts to 40%, and for municipal counties of Warsaw and Poznan for
which it stands at 30%. In the case of support advanced to an SME, the maximum value of
support is increased by 15 percentage points, except for entrepreneurs active in the transport
industry.
The maximum percentage value of support advanced to investments in the auto
industry, to an entrepreneur investing more than €5m, amounts to 30% of the maximum
percentage value of support permissible in a given area.
www.pmrcorporate.com
21
Poland: analysis of selected economic sectors
Location of SEZs by voivodships in Poland, 2006
PMR099
9
8
11
14
3
6
5
1
13
10
2
12
7
4
Legend: 1 – Kamienna Gora SSE, 2 – Katowice SSE, 3 – Kostrzyn-Slubice SSE,
4 – Krakow SSE, 5 – Legnica SSE, 6 – Lodz SSE, 7 – Mielec SSE, 8 – Pomorska SSE,
9 – Slupsk SSE, 10 – Starachowice SSE, 11 – Suwalki SSE, 12 – Tarnobrzeg SSE,
13 – Walbrzych SSE, 14 – Warminsko-Mazurska SSE
Source: PMR, 2006
22
www.pmrpublications.com
www.pmrcorporate.com
Poland: analysis of selected economic sectors
2. Business Processes Offshoring (BPO) sector
BPO sector – selected locations
PMR112
Poznan
Warsaw
Lodz
Lublin
Wroclaw
Katowice
Krakow
Source: PMR, 2006
www.pmrcorporate.com
www.pmrpublications.com
23
Poland: analysis of selected economic sectors
Business Processes Offshoring (BPO) is the practice of locating defined (non-production)
business functions in countries where the costs of conducting business, primarily the labour
required for a given function, are lower. Usually, within the frameworks of BPO, investors set
up the following types of service centres:
n
finance
n
accounting
n
HR
n
customer service
n
logistics
n
R&D.
The number of service centres located in Poland as part of BPO has rapidly grown over
the recent years. At the end of November 2006, there were over 80 such centres.
The following factors have encouraged investors to locate service centres in Poland:
n
Availability of qualified and relatively inexpensive labour – there are approximately
2 million students in Poland, with about 400,000 university graduates each year. The
percentage share of students in the population aged 20-30 is quickly rising.
n
24
Investment incentives for locating service centres within the frameworks of BPO:

Since March 2005 investors, who locate service centres (including accounting,
finance, research & development, call centres and IT support) in Special Economic
Zones can receive tax relief and other incentives as ones investing in the SEZ.

Investors relocating services to Poland as part of BPO can also apply for public aid
from the state budget, if they employ more than 250 persons, and from EU funds
– as reimbursement of costs of employee training (60-100% of training costs are
subject to reimbursement). Projects in the R&D sector can count on additional
financing even if they provide work to less people (e.g. 80-100 engineering
specialists).

Investors who create at least a 100 new jobs and maintain them for at least five
years can apply for regional support for hiring new employees.

An area an investor selects to locate an investment can be incorporated by
the Ministry of Economic Affairs into an existing zone as long as the capital
expenditure incurred in the area exceeds €40m or that at least 500 new jobs are
created.

Municipalities and communes in which BPO investments are implemented can
offer investors either full or partial relief from property tax.
n
Macroeconomic stability.
n
Poland’s EU membership.
www.pmrcorporate.com
Poland: analysis of selected economic sectors
2.1. Dolnoslaskie voivodship
2.1.1. Largest companies with service centres set up in
the region as part of BPO
Wroclaw, beside Krakow and Warsaw, has to date attracted the largest number of firms as
a BPO destination for their service centres.
To date, the largest projects in the region have been: a shared services centre built
by Hewlett Packard which, once fully operation, is to employ approx. 1,000 persons, and
a software development centre constructed by Siemens.
In 2006 the following companies made the decision to locate their shared service
centres in the region:
n
Genpact (planned workforce of 300)
n
KPIT Cummings (planned workforce of 500)
n
ACN (planned workforce of 150).
UPS plans to launch an accounting centre in the first half of 2007, which is to employ
around 300 persons.
Select companies with service centres in Dolnoslaskie voivodship
PMR001
Location
Company
Business profile
Financial and accounting centre,
HR management, procurement support
Accounting and administration centre
Development of IT solutions for clients
from the CEE, regional centre
Call centre for customers from Germany,
Austria and Switzerland
Financial and accounting centre and IT centre
Wroclaw
Hewlett Packard
Wroclaw
Volvo
Wroclaw
QAD
Wroclaw
Genpact
Wroclaw
KPIT Cummings
Wroclaw
American Communication Network Call centre
Wroclaw
Siemens
Software development centre
Wroclaw
CTM
Call centre
Wroclaw
Alstom
R&D centre
Wroclaw
Cap Gemini Polska
IT services and software development centre
Wroclaw
Remy Internationale
Wroclaw
Diehl Controls
Wroclaw
UPS
R&D centre
Design and implementation of innovative
solutions for household appliance manufacturers
Accounting centre*
* investment planned for Q1 2007
Source: PMR, 2006
www.pmrcorporate.com
www.pmrpublications.com
25
Poland: analysis of selected economic sectors
2.1.2. Workforce availability
Workforce resources
Wroclaw is the fourth largest city in Poland, it ranks fifth in terms of persons employed in the
enterprise sector3.
The Dolnoslaskie voivodship ranks fourth in the number of academic students. Over
160,000 students are taught by around 7,000 academic teachers in the region’s 35 tertiary
schools.
In Dolnoslaskie, most students, close to 137,000, study in Wroclaw which has 26 higher
education institutions (only two other cities in Poland – Warsaw and Krakow – have more
students). Every year, around 26,000 students graduate from Wroclaw higher schools.
Number of students and graduates in Wroclaw (thousands), 2000-2006
PMR002
113.8
122.2
126.9
132.0
134.8
136.8
16.4
19.1
22.0
24.0
27.2
26.1
2000/2001
2001/2002
2002/2003
2003/2004
2004/2005
2005/2006
Students
Graduates
www.pmrpublications.com
Source: GUS, 2006
Nearly 61% of persons studying in the region attend one of the four Wroclaw academic
institutions: Wroclaw University, Wroclaw University of Technology, Wroclaw University of
Economics, and University of Life Sciences in Wroclaw.
Number of students and graduates of largest academic institutions
in Dolnoslaskie
PMR003
9,239
Wroclaw University
Wroclaw University of Technology
4,143
Wroclaw University of Economics
3,710
University of Life Sciences in Wroclaw
2,458
32,312
17,314
12,431
Students
Average employment in the
enterprise sector in Q1-Q3 2006
in Wroclaw stood at 133,500.
3
26
Source: Regional Investor Support Centre (COI), 2006
39,701
Graduates
www.pmrpublications.com
www.pmrcorporate.com
Poland: analysis of selected economic sectors
The Dolnoslaskie voivodship is one of the largest academic hubs in Poland in terms of
the number of persons studying economics, business and administration, as well as computer
science.
Number of students and graduates of select specialisations
in Wroclaw academic institutions, 2004/2005
PMR004
25,803
10,287
5,174
Business and
administration
8,665
6,785
1,687
Management
Students
* The data encompasses the following engineering specialisations:
production engineering, environmental engineering,
material engineering, mechanics and robotics.
Source: Regional Investor Support Centre (COI), 2006
1,067
IT
1,131
Engineering*
Graduates
www.pmrpublications.com
The decisive majority (84%) of Wroclaw’s students can communicate in English, though
only 16% says that it is fluent in the language. German is spoken by more than 56% of the
students.
Percentage of students in Wroclaw proficient in English
PMR005
Poor and very poor
15.7%
Medium-advanced
34.8%
Source: Regional Investor Support Centre, “Foreign language
proficiency among students in Wroclaw”, November 2004
www.pmrcorporate.com
Very good
15.7%
Good
33.7%
www.pmrpublications.com
27
Poland: analysis of selected economic sectors
Percentage of students in Wroclaw proficient in German
PMR006
Very good and good
23.3%
Poor and very poor
43.3%
Moderately advanced
33.3%
Source: Regional Investor Support Centre, “Foreign language
proficiency among students in Wroclaw”, November 2004
www.pmrpublications.com
The unemployment rate in the Dolnoslaskie voivodship is one of the highest in the
country, though it has been decreasing steadily. As at the end of October 2006, the region
unemployment rate stood at 16.8%.
As at the end of September 2006, the unemployment rate in Wroclaw was 8.9% (down
by 2.4 percentage points from 11.3% a year earlier). Wroclaw has a relatively high percentage
share of university graduates among its registered unemployed. In June 2006, 10.4% of
all unemployed in the voivodship had completed tertiary education, representing 28,200
persons.
As a consequence of the falling unemployment rate and rising foreign investments,
entrepreneurs have begun to face difficulties in finding the right employees. However, this to
a large extent concerns candidates with secondary technical training and not with university
decrees.
According to research conducted by KPMG in July and August 2006, 50% of the 51
surveyed companies experienced problems in recruiting engineers and programmers. A very
small group of companies disclosed problems with hiring economists, lawyers and graduates
of social studies.
2.1.3. Costs of doing business
2.1.3.1. Salaries and wages
In October 2006, the average gross pay in the enterprise sector amounted to PLN 2,544 (€652)
in Dolnoslaskie (95.7% of the national average).
In a comparison of wages paid in the region capitals in the first nine months of 2006,
the average wage was lower in Wroclaw than in Warsaw, Katowice, Gdansk, Poznan and
Krakow and amounted to PLN 2,529 (€648), i.e. 27% less than what the average worked
earned in Warsaw in the same period.
28
www.pmrcorporate.com
Poland: analysis of selected economic sectors
Gross pay (PLN) in Dolnoslaskie voivodship, by select positions, spring 2006
Customer service
PMR007
Position
Average
Customer Service Specialist
2,706
Technical Service Manager
5,621
Tec hnical Service Specialist
2,787
R&D Engineering
Accounting
Finance
Finance Director
12,265
Finance Specialist
4,325
Financial Recovery Specialist
3,439
Chief Accountant
8,416
Accountant
3,387
Junior Accountant
2,323
Cashier
2,815
Process Engineering Specialist
3,632
Designer / Drafter
3,749
R&D Specialist
3,950
Source: AG TEST Human Resources, “Salary report – Spring 2006”
www.pmrpublications.com
2.1.3.2. Office space rental costs
According to a report published by Jones Lang LaSalle in June 2006, office lease rates in
Wroclaw are in a moderate growth trend and amount to €14-15/m2/month for best class
A space and €8-13/m2/month for class B office space in office and old tenement buildings.
Average maintenance costs amount to approx. €2.5/m2/month.
2.1.3.3. Transport access
Wroclaw has an international airport in Strachowice and a river port on the Odra River. Planes
fly to the following destinations from the Wroclaw-Strachowice airport:
n
Denmark: Copenhagen
n
Germany: Dortmund, Frankfurt Hahn, Frankfurt am Main, Munich
n
Ireland: Cork, Dublin, Shannon
n
Italy: Milan, Rome
n
Poland: Warsaw, Gdansk
n
Switzerland: Stockholm
n
UK: Glasgow, Liverpool, London, Nottingham.
www.pmrcorporate.com
29
Poland: analysis of selected economic sectors
In addition, A4 motorway, which transects the Dolnoslaskie region, joins Wroclaw with
the Polish-German boarder and with the main urban centres of southern Poland – Katowice
and Krakow.
2.1.4. Availability of investment sites
Office space
According to representatives of local authorities, the percentage share of office space
available for rent in Wroclaw fell in November 2006 to approx. 1%. To a large extent, this was
a by-product of large demand for office space on part of BPO companies already present in
Wroclaw.
The situation related to the availability of office space should improve considerably in
the first quarter of 2007. Over 100,000 m2 of new office space is scheduled for completion by
the end of 2007.
2.2. Lodzkie voivodship
2.2.1. Largest companies with service centres set up
in the region as part of BPO
To encourage large investors to relocate their services as part of BPO to the region is one of
the objectives of the municipal development strategy of Lodz. To date, seven international
concerns have set up service centres in Lodz within the frameworks of BPO, the largest of
them being: Philips, Accenture and General Electric Controls.
Select companies with service centres in Lodzkie voivodship
PMR008
Location Company
Lodz
Philips
Business profile
Financial and accounting centre
Lodz
Accenture
Lodz
Ericpol Telecom
Lodz
General Electric Controls
Lodz
Teleca
Lodz
Bosch-Siemens
Financial-accounting and IT centre
Development of IT solutions for
the telecommunications sector
Financial and accounting centre
Services related to design, implementation
and integration of software
R&D centre
Source: PMR, 2006
30
www.pmrpublications.com
www.pmrcorporate.com
Poland: analysis of selected economic sectors
2.2.2. Workforce availability
Workforce resources
Lodz is the second most populous city in Poland after Warsaw. In the first nine months of
2006, the enterprise sector in Lodz employed more than 102,000 persons, thus, less than in
Warsaw, Poznan, Wroclaw, Krakow and Katowice.
The Lodzkie region is the sixth largest academic centre in Poland, with around 120,000
students taught by close to 6,000 academic teachers.
Lodz is the largest academic centre in the region with 22 higher learning institutions
with 114,000 students enrolled each year and 21,000 graduates. That is the fifth best result
countrywide.
The student population of Lodz is rapidly growing. Over the last six years, Lodz has
been one of the three cities in Poland with most significant growth in student population. In
2006 there were 38.5% more students in the region than in 2000.
Number of students and graduates in the Lodzkie voivodship
(thousands), 2001-2006
PMR009
95.1
82.2
104.9
106.8
110.7
113.9
11.9
14.8
18.5
18.5
21.0
21.0
2000/2001
2001/2002
2002/2003
2003/2004
2004/2005
2005/2006
Students
Source: GUS, 2006
Graduates
www.pmrpublications.com
The two largest academic institutions in Lodz: the Lodz University of Technology and the
University of Lodz, educate in total approx 50% of Lodz students.
The most popular specialisations among students in Lodz are management and
marketing, administration, and computer science.
www.pmrcorporate.com
31
Poland: analysis of selected economic sectors
Number of students and graduates of select specialisations in Lodzkie
PMR010
14,053
7,829
3,949
1,167
1,686
1,124 633
Management Administration
and marketing
IT
Students
1,061
597 73
418
188
Biotechnology Engineering*
Physics
Graduates
* Aggregate number of students of the following specialisations:
production engineering and management, environmental engineering,
material engineering and metal engineering.
Source: Regional Investor Support Centre (COI), 2006
www.pmrpublications.com
The decisive majority of persons studying in Lodz can communicate in foreign tongues. Only
10% of Lodz students disclosed that they do not know any foreign language; 90% is at least
moderately proficient in English.
Declared proficiency in foreign languages among Lodz students
PMR011
English
German
French
Italia
Spanish
Other
Very good
22.3%
4.8%
5.9%
3.6%
13.5%
9.2%
Source: Regional Investor Support Centre, 2006
Good
38.1%
20.9%
14.2%
27.0%
34.8%
28.3%
Medium-advanced
31.9%
42.0%
42.9%
25.2%
35.5%
42.4%
Poor
7.6%
32.3%
37.0%
43.6%
16.3%
19.9%
www.pmrpublications.com
The unemployment rate in the Lodzkie voivodship is close to the national average, though it
has been shrinking quickly. In October 2006, the unemployment rate in the region amounted
to 14.9%. Close to 162,000 persons were not gainfully employed. Approx. 5% of the
unemployed are university graduates.
In September 2006, the unemployment rate in the city of Lodz was 12.9% (corresponding
to 42,000 persons), i.e. 3.5 p.p. less than a year earlier.
32
www.pmrcorporate.com
Poland: analysis of selected economic sectors
2.2.3. Costs of doing business
2.2.3.1. Salaries and wages
In the first nine months of 2005, the average gross pay in the enterprise sector in Lodz was
44% lower than in Warsaw and 10% lower than in Krakow, and amounted to PLN 2,322
(€595).
Gross pay (PLN) in Lodzkie voivodship, by select positions, spring 2006
PMR012
R&D
Engineering
Accounting
Finances
Customer service
Sales
Position
Average
Tele-sales Representative
2,698
Customer Service Manager
7,102
Customer Service Specialist
3,237
Technical Service Manager
6,197
Technical Service Specialist
2,845
Finance Director
18,307
Finance Manager
10,976
Finance Controller
8,567
Finance Specialist
4,495
Finance Analyst
5,752
Finance Assistant
2,459
Chief Accountant
9,728
Accountant
3,272
Junior Accountant
2,311
Cashier
2,286
Process Engineering Specialist
3,285
Product Engineer
3,612
Designer / Drafter
3,666
R&D Manager
7,254
R&D Specialist
4,087
Source: AG TEST Human Resources, “Salary report – Spring 2006”
www.pmrcorporate.com
www.pmrpublications.com
33
Poland: analysis of selected economic sectors
2.2.3.2. Office space rental costs
According to a report published by Jones Lang LaSalle in June 2006, office lease rates in Lodz
differ depending on location and office standard, from €13-13.5/m2/month in the premium
segment to ca. €9/m2/month in other downtown locations. Lower-quality facilities (B/C) are
available for around €6/m2/month. As in other large urban centres in Poland, maintenance
fees amount to around €3-4/m2/month.
2.2.3.3. Transport access
Lodz has an international airport – the Wladyslaw Reymont Lodz-Lublinek Airport. Planes fly
to the following destinations from the Lodz airport:
n
France: Paris (February 2007)
n
Ireland: Dublin, Shannon
n
Italy: Rome (February 2007)
n
Poland: Warsaw
n
UK: London Stanstead, Nottingham.
In addition, section of the A2 national motorway which joins Lodz with Poznan transects
the region. Plans provide for a A2 and A1 motorway junction, connecting western and eastern
Poland with northern and southern parts of the country, to be constructed on the territory of
the region.
Lodz also has a railway connection with the national capital – at present, it takes
more than two hours to travel to Warsaw. In the near future, the government would like to
modernise this section of the railway line in order to shorten travel time to ca. 65 minutes.
2.2.4. Availability of investment sites
Office space
Lodz has a fairly small stock of modern office space, totalling approximately 90,000 m2. Given
the sizable demand for modern office space on part of international concerns, the available
office space ratio oscillates around zero for most modern faculties.
According to Jones Lang LaSalle’s report, in June 2006, 18,700 m2 of office space was
either under construction or reconstruction while 7,500 m2 was in the planning stage.
The Lodz Special Economic Zone (LSSE) is located in the region. According to the zone’s
representatives, it is possible to incorporate new office buildings currently under construction
in Lodz into the LSSE.
34
www.pmrcorporate.com
Poland: analysis of selected economic sectors
2.3. Lubelskie voivodship
2.3.1. Largest companies with service centres set up
in the region as part of BPO
To date, Lublin has been selected for investment projects by a small group of investors.
Call centres have been opened in Lublin by Idea Centertel, Intelligo, CRH Zagiel and
Telekomunikacja Polska.
2.3.2. Workforce availability
The Lubelskie voivodship ranks seventh among Polish academic centres in terms of the number
of students. Approx. 105,000 students attend tertiary schools in the voivodship. Lublin is the
region’s largest academic hub, with 14 institutions with close to 86,000 students (more than
in Gdansk or Katowice). The number of students choosing to study in Lublin is steadily rising.
Between 2000 and 2006, their population expanded by 24%.
Number of students and graduates in Lublin (thousands), 2000-2006
PMR013
86.9
85.5
76.6
79.4
84.0
10.9
12.5
15.2
16.0
17.4
18.1
2000/2001
2001/2002
2002/2003
2003/2004
2004/2005
2005/2006
69.1
Students
Source: GUS, 2006
Graduates
www.pmrpublications.com
The following four largest institutions account for 73.9% of the region’s students:
n
Marii Curie-Sklodowska University – 34,000 students
n
Catholic University of Lublin – 21,000
n
Technical University of Lublin – 11,000
n
Agricultural University in Lublin – 12,500.
In the 2004/2005 academic year, graduates of social study faculties, economics and law
made up the largest body of graduates (47%).
Administration, law, as well as management and marketing are the three most popular
university specialisations. They are followed by humanities, fine art and education.
www.pmrcorporate.com
35
Poland: analysis of selected economic sectors
University graduates in 2004/2005 academic year, by specialisation
PMR014
Health and welfare
6%
Total number of students: 85,500
Services
4%
Agriculture
5%
Technology, industry
and construction
5%
Social studies,
economics and law
47%
Pedagogy
6%
Humanities and fine art.
13%
Education
14%
www.pmrpublications.com
Source: Regional Statistical Office, 2006
According to a survey conducted by the Maria Curie Sklodowska University as part of
a research project entitled “Intellectual capital of the Lubelskie voivodship”, English, German,
Russian and French are the most popular foreign languages in the region.
Percentage of voivodship residents declaring knowledge
of select languages, Q1 2006
PMR015
32.3%
English
24.0%
Russian
German
14.7%
French
Italian
Ukrainian
2.5%
1.9%
1.1%
Dutch
0.4%
Latin
0.3%
Spanish
0.3%
Swedish
0.2%
Hungarian 0.1%
Hebrew
0.1%
Greek
0.1%
Czech 0.1%
Bulgarian 0.1%
Source: Maria Curie Sklodowska University, “Intellectual capital
of the Lubelskie voivodship” research project, Q1 2006
36
www.pmrpublications.com
www.pmrcorporate.com
Poland: analysis of selected economic sectors
Unemployment in the Lubelskie voivodship is above the national average and it is
steadily falling. In October 2006, the voivodship unemployment rate amounted to 15.2%.
As at the end of September 2006, the unemployment rate in Lublin was 10.8%, one of
the highest among the regional capitals.
In June 2006 unemployed with university degrees accounted for 7.7% of all unemployed
in the region. At the time, there were 11,000 unemployed graduates.
2.3.3. Costs of doing business
2.3.3.1. Salaries and wages
In the first nine months of 2006, the average monthly gross pay in the enterprise sector in
Lublin was PLN 2,221 (€569), the lowest gross pay in the sector from among Poland’s regional
capitals except for Gorzow Wielkopolski. The average employee of the enterprise sector in
Lublin was paid 26% less than in Warsaw.
Gross wage (PLN) in Lubelskie voivodship, by select positions, spring 2006
R&D
Engineering
Accounting
Finances
Customer service
PMR016
Position
Average
Customer Service Specialist
2,469
Technical Service Specialist
2,463
Finance Manager
5,830
Finance Specialist
2,051
Finance Assistant
1,628
Chief Accountant
8,833
Accounting Manager
4,351
Accountant
2,659
Junior Accountant
2,179
Process Engineering Specialist
3,289
Designer / Drafter
2,670
R&D Specialist
2,930
R&D Assistant
1,977
Source: AG TEST Human Resources, “Salary report – Spring 2006”
www.pmrcorporate.com
www.pmrpublications.com
37
Poland: analysis of selected economic sectors
2.3.3.2. Office space rental costs
Lease rates for office space in best locations in Lublin are significantly lower than in Warsaw,
Krakow and Wroclaw. Best office space in Lublin (B+) can be rented out for €9-12/m2
a month.
2.3.3.3. Transport access
Lublin does not have an airport though the task of launching an airport in the city has been
included in the draft of the National Development Plan for 2007-2013.
To connect the region by air, the voivodship authorities with the support of the local
authorities have made plans to build an airport – Lublin-Niedzwiada – 26 km north of Lublin
and 9 km from Lubartow.
2.3.4. Availability of investment sites
Office space
According to the Regional Investment Support Centre, around 3,000 m2 of class B+ office
space is available for rent in Lublin. More office stock will come on the market in 2007 (ca.
8,000 m2), including around 2,500 m2 within the Science and Technology Park of the Lubelskie
voivodship, which is to be leased out to innovative companies.
2.4. Malopolskie voivodship
2.4.1. Largest companies with service centres set up
in the region as part of BPO
Krakow, beyond Wroclaw and Warsaw, has to date attracted the largest number of foreign
firms to invest within the frameworks of BPO in opening service centres in the city.
In 2006 the decision to establish a service centre either in Krakow or in its vicinity was
made by such companies as:
Phillip Morris (projected number of jobs in the financial services centre: 450; the
n
company is also planning to open an HR centre with around 250 employees)
38
n
Shell (projected number of jobs – 800)
n
Tata Consultancy Services (planned office space – 20,000 m2 with a workforce of 1,500
persons).
www.pmrcorporate.com
Poland: analysis of selected economic sectors
Select companies with service centres in and around Krakow
PMR017
Location
Krakow
Krakow
Krakow
Zabierzow
Krakow
Krakow
Krakow
Krakow
Krakow
Krakow
Krakow
Krakow
Zabierzow
Krakow
Krakow
Krakow
Krakow
Krakow
Krakow
Krakow
Krakow
Krakow
Krakow
Krakow
Krakow
Krakow
Krakow
Philip Morris International
CAP Gemini
IBM
Shell
Tesco
Lufthansa
Pricewaterhouse Coopers Polska
IFS Polska
Electrolux
Exult
Bayer
Ahold
ACS Affiliated Computer Services
Indesit
Hewitt
KPMG
Tata Consultancy Services*
Fortis Bank
Google*
CH2MHill
ABB
Delphi
Lurgi
Motorola
Pliva
Sabre
* planned investments
Source: PMR, 2006
www.pmrpublications.com
2.4.2. Workforce availability
Workforce resources
The city of Krakow is the largest, after Warsaw and Katowice, labour market in Poland. In
2005 the average workforce in the enterprise sector in Krakow amounted to nearly 174,000
persons.
In terms of the number of students, the Malopolskie voivodship is the third largest
academic centre in Poland; it provides work to over 11,000 academic teachers (second largest
number in the country) who teach over 200,000 students. Every year, the 34 Malopolskie
tertiary schools release over 33,000 graduates into the world.
Krakow is the academic hub of Malopolskie. Around 173,000 students are enrolled at
its 23 higher institutions, with 27,000 graduates a year. Only Warsaw can boast of a better
result.
The student population of Krakow is steadily rising. In the last six years, it has grown
the most dynamically in the country. In 2006, there were 42% more students in Krakow than
in 2000.
www.pmrcorporate.com
39
Poland: analysis of selected economic sectors
Number of students and graduates in Krakow (thousands), 2000-2006
PMR018
166.1
173.8
122.1
132.5
142.7
153.9
20.6
21.5
21.7
23.9
24.1
26.8
2000/2001
2001/2002
2002/2003
2003/2004
2004/2005
2005/2006
Students
Source: GUS, 2006
Graduates
www.pmrpublications.com
Five largest higher schools in Krakow educate in aggregate approximately 75% of all students
in the voivodship:
n
AGH University of Science and Technology – 30,000
n
Jagiellonian University – 48,000
n
Krakow University of Economics – 30,000
n
Krakow University of Technology – 17,000
n
Academy of Pedagogy – 20,000.
Since there are a lot of service centres in the region, the labour market has become
increasingly more competitive. Yet, the improved competition concerns only a narrow group
of professions. Most service centres are looking for specialist with similar qualifications;
especially in demand are programmers and persons who beyond English are also proficient in
another, less popular, foreign tongue.
The regional unemployment rate is among the lowest in the country and is continually
falling. As at the end of September 2006, the unemployment rate in Malopolskie was 11.6%,
which means that close to 149,000 people did not have a job. Around 6.6% of that total
represents university graduates.
In September 2006, the unemployment rate in Krakow was 5.8%, which corresponds to
more than 21,000 persons, of which a steep 14% held university degrees.
40
www.pmrcorporate.com
Poland: analysis of selected economic sectors
Five most popular specialisations at Malopolskie academic institutions
(nubmer of institutions offering a given specialisation)
PMR019
32
15
Business and
administration
12
Management
IT and applied IT
5
5
Finances and
banking
International
relations
www.pmrpublications.com
Source: PMR, 2006
English and German are the two most popular languages among Krakow students.
Around 64% of students reported medium-advanced proficiency in English and slightly less
than 15% said the same of German. Other languages popular among students are: Russian,
French, Italian and Spanish. Less than 1% of students reported not knowing any foreign
language.
Language proficiency among students in Krakow,
percentage of students reporting knowledge of a given language (%)
PMR020
English
German
Russian
French
Italian
Spanish
Ukrainian
Czech
Slovakian
Swedish
Hungarian
Portuguese
Greek
Norwegian
Danish
Basic
72
21
13
8
3
2
0.4
0.4
0.2
0.4
0.1
0.2
0.2
0.1
0.2
Source: Regional Investor Support Centre, 2006
www.pmrcorporate.com
Medium-advanced
64
15
8
6
2
1
0.3
0.2
0.2
0.1
0.1
0.1
0.1
0.1
0.0
Fluent
31
5
3
3
1
0
0.2
0.1
0.1
0.1
0.1
0.0
0.0
0.0
0.0
www.pmrpublications.com
41
Poland: analysis of selected economic sectors
2.4.3. Costs of doing business
2.4.3.1. Salaries and wages
In the first nine months of 2006, the average pay in Krakow was lower than in Warsaw,
Poznan, Katowice and Gdansk, and amounted to PLN 2,563 (€657).
Gross pay (PLN) in Malopolskie voivodship, by select positions, spring 2006
PMR021
R&D
Accounting
Finances
Customer service
Position
Average
Customer Service Manager
4,601
Customer Service Specialist
3,724
Technical Service Manager
6,930
Technical Service Specialist
2,925
Serviceman
2,517
Finance Director, Board Member
19,656
Finance Manager
10,498
Controlling Specialist
5,856
Finance Specialist
3,104
Finance Analyst
6,694
Finance Assistant
1,848
Chief Accountant
8,032
Accounting Manager
7,084
Accountant
3,849
Junior Accountant
2,504
R&D Specialist
3,028
R&D Assistant
2,151
Source: AG TEST Human Resources, “Salary report – Spring 2006”
www.pmrpublications.com
2.4.3.2. Office space rental costs
The costs of renting office space in Krakow are the second highest in the country, only in
Warsaw are the rates higher.
According to Jones Lang LaSalle’s June 2006 report, opening prices for office space
in best locations, in the main office buildings in Krakow, oscillate around €15-17/m2/month.
Average opening prices for office space in modern class A and B buildings oscillate around
€13-15/m2/month.
42
www.pmrcorporate.com
Poland: analysis of selected economic sectors
2.4.3.3. Transport access
The district of Krakow-Balice houses an international airport, second largest in Poland. Planes
fly to the following destinations from the Krakow-Balice airport:
n
Austria: Vienna
n
Belgium: Brussels
n
Czech Republic: Prague
n
Denmark: Copenhagen
n
France: Paris
n
Germany: Berlin, Dortmund, Frankfurt Hahn, Frankfurt am Main, Hamburg, Cologne,
Munich, Stuttgart
n
Greece: Athens
n
Hungary: Budapest
n
Ireland: Cork, Dublin, Shannon
n
Israel: Tel Aviv
n
Italy: Bologna, Milan, Rome, Turin
n
Netherlands: Amsterdam
n
Norway: Oslo
n
Poland: Gdansk, Warsaw
n
Spain: Barcelona
n
Switzerland: Zurich
n
UK: Birmingham, Bristol, Glasgow, Leeds, Liverpool, London, Manchester, Newcastle,
Nottingham
n
USA: Chicago, New York.
2.4.4. Availability of investment sites
Office space
According to the representatives of the local government, in November 2006, there
were only a few office buildings with much room for rent. A more significant addition of new
stock of office space is expected at the top of 2007. According to Jones Lang LaSalle, there
were 32,000 m2 under construction in June 2006. In addition, 90,000 m2 of modern office
space was being planned at that time and should be completed by the end of 2008.
From among the buildings whose completion is planned for 2007 and 2008, some
buildings have been incorporated into a special economic zone on the territory of the Krakow
Technology Park (www.sse.krakow.pl), namely:
n
Between June and July 2007, ca. 3,000 m2 will be made available in Zabierzow in the
Krakow Business Park (KBP). Currently, talks are underway with respect to investments
in additional locations in the KBP.
n
At the end of 2007, ca. 2,000 m2 is to be made available in the subzone in Czyzyny.
www.pmrcorporate.com
43
Poland: analysis of selected economic sectors
The Krakow Technological Park is currently in talks with several developers about the
inclusion into the zone of additional office buildings, which are currently under construction
in Krakow; thus, the aggregate area of office space that will be available to investors in 2007
will most likely be even larger than the above estimates.
Investors engaged in business in the Krakow Technological Park qualify for public aid in
the form of additional tax relief.
2.5. Mazowieckie voivodship
2.5.1. Largest companies with service centres set up
in the region as part of BPO
Besides Wroclaw and Krakow, Warsaw has to date attracted the most significant number of
companies which as part of BPO have decided to establish service centres in Poland.
One of the largest such investments is a centre which provides financial-accounting, IT
and logistics services to clients from various European countries; it is located in Piaseczno and
once fully operational, it will have 1,000 employees on staff.
Select companies with service centres in Mazowieckie voivodship
PMR022
Location
Piaseczno
Warsaw
Garwolin
Warsaw
Warsaw
Warsaw
Warsaw
Warsaw
Warsaw
Warsaw
Warsaw
Warsaw
Warsaw
Warsaw
Warsaw
Warsaw
Warsaw
Warsaw
Warsaw
Warsaw
Warsaw
Warsaw
Source: PMR, 2006
44
Company
Accenture
Business profile
Financial-accounting, IT and logistics services
Verification of information on prospective and
ABN Amro
existing clients of banks from various countries
Financial and marketing services
Avon
and a regional R&D laboratory
CitiGroup
Financial and accounting centre
CTM Teleperformance
Tele -marketing centre
Dimar
Tele -marketing centre
Guest-Tek
Servicing centre
Hewlett-Packard
System solutions laboratory
IBM
Technological centre
Sitel
Call centre
Tchibo
Accounting and IT services
Thomson
Financial and accounting centre
TNT Express
Reloading centre for handling road cargo
Transcom
Call centre
Samsung Electronics
R&D centre
General Electric Aircraft Engines R&D centre
Microsoft
R&D centre
Cederroth
R&D centre
Humax
R&D centre
LG Electronics
R&D centre
Oracle
R&D centre
SAS Institute
R&D centre
www.pmrpublications.com
www.pmrcorporate.com
Poland: analysis of selected economic sectors
2.5.2. Workforce availability
Workforce resources
Warsaw comprises the largest labour market in Poland. In 2005 the average employment in
the city’s enterprise sector stood at over 871,000 persons.
In terms of student population, the Mazowieckie voivodship is the largest academic
centre in Poland. There are over 12,500 academic teachers in the region teaching over
370,000 students.
Warsaw is the largest academic centre in the voivodship. Around 280,000 students are
enrolled at its 77 higher education institutions, with 50,000 graduates each year, i.e. 20% of
all students in Poland.
Warsaw institutions school twice as many graduates as tertiary schools in Wroclaw and
Krakow, the cities which rank second and third after Warsaw in terms of the size of their
student populations.
Largest academic centres in Poland, by student number
(thousands), 2005/2006
PMR023
Warsaw
277.8
Krakow
173.8
Wroclaw
136.8
Poznan
132.9
Lodz
113.9
Lublin
85.5
Gdansk
71.9
Katowice
71.1
Szczecin
Source: GUS, 2006
65.5
www.pmrpublications.com
The largest Warsaw higher academic institutions: Warsaw University, Warsaw University of
Technology, Warsaw School of Economics (SGH), Warsaw Agricultural University (SGGW) and
Cardinal Wyszynski University are at the forefront of rankings of Polish tertiary schools. The five
schools educate in aggregate 50% of all students studying in the Mazowieckie voivodship.
www.pmrcorporate.com
45
Poland: analysis of selected economic sectors
Number of students and graduates of largest universities in Mazowieckie
PMR024
9.198
Warsaw University
Warsaw School of Technology
Warsaw Agricultural University
55,203
4,694
30,801
3,007
4,205
Radom University of Technology
Cardinal Wyszynski University
1,841
University of Podlaskie
2,426
Warsaw School of Economics
2,417
Students
22,186
16,798
16,037
13,055
11,945
Graduates
www.pmrpublications.com
Source: Regional Investor Support Centre, 2006
In Mazowieckie, the most popular specialisations are: business and administration,
management, and computer science.
Number of universities offering select specialisations, 2005/2006
PMR025
35
28
25
14
Business and
administration
Management
Source: Regional Investor Support Centre, 2006
IT
Politics science
www.pmrpublications.com
The unemployment rate in Mazowieckie is one of the lowest in the country, and it is
steadily decreasing. As at the end of September 2006, it stood at 12.2%. The region still
has significant territorial disproportions in unemployment. The highest unemployment rate
has been recorded in the counties of Szydlowiec (36.9%) and Radomsko (31.5%). Counties
with the lowest unemployment rate include: the Capital City of Warsaw (4.9%), Grojec county
(7.8%) and Piaseczno county (7.9%).
The registered unemployment rate in Warsaw is the lowest from among all urban
centres in Poland.
46
www.pmrcorporate.com
Poland: analysis of selected economic sectors
2.5.3. Costs of doing business
2.5.3.1. Salaries and wages
In the first three quarters of 2006, the average wage in the enterprise sector stood at
PLN 3,254 (€834), 26% higher than the national average.
In the first nine months of 2006, Warsaw had the highest in the country average gross
monthly wage.
Gross wage (PLN) in Mazowieckie voivodship,
by select positions, spring 2006
PMR026
Customer service
Position
6,219
Customer Service Specialist
3,802
Technical Service Manager
6,297
Technical Service Specialist
3,061
R&D
Engineering
Accounting
Chief Accountant
IT
Average
Customer Service Manager
11,854
Accounting Manager
7,779
Accountant
4,401
Junior Accountant
3,245
Cashier
2,731
Engineering Manager
11,163
Process Engineering Specialist
5,288
Product Engineer
4,120
Designer / Drafter
5,192
R&D Specialist
6,880
R&D Assistant
3,615
IT Director
18,234
IT Manager
11,662
System Analyst
7,613
Programmer
3,992
LAN/WAN Administrator
5,065
Data Base Administrator
5,926
IT Help Desk
3,541
IT Specialist
5,206
Technical Suport
2,800
Source: AG TEST Human Resources, “Salary report – Spring 2006”
www.pmrcorporate.com
www.pmrpublications.com
47
Poland: analysis of selected economic sectors
2.5.3.2. Office space rental costs
The costs of renting office space in Warsaw are the highest in the country. According to Jones
Lang LaSalle’s report, the highest lease rates have stabilised at €18-21/m2/month in the city’s
centre and at €13-15/m2/month outside of the downtown area.
Contracted lease rates, for the best office buildings in the centre, oscillate around
€17-20/m2/month. Outside of the city centre, the most expensive and average rent rates stand
at €13-15/m2/month and €12-14/m2/month respectively. Maintenance costs €4-5/m2 a month
in the centre and €3-4/m2 a month outside of the downtown.
2.5.3.3. Transport access
Warsaw houses an international airport – Warsaw-Okecie, located 10 km from downtown.
At present, it is the largest airport in Poland, with regular connections to over 80 ports in
Europe, America, Asia and Africa.
Currently, talks are underway with respect to opening a second airport in Warsaw, in
Modliny. The new airport, which is to mainly support low-cost airlines, is scheduled to open
by the end of 2008.
Warsaw is also conveniently connected with other Polish urban agglomerations by rail,
with estimated travel time of approx. 2.5-3 hours.
2.5.4. Availability of investment sites
Office space
Warsaw is the largest office space market in the country. According to Jones Lang LaSalle’s
report of June 2006, it houses total office stock of 2,462,800 m2.
Additionally, to the end of 2006 and 2007, an aggregate of 390,000 m2 new office
space will be made available in the capital. Approximately 120,000 m2 will be located in the
centre and 270,000 m2 beyond the downtown area. As a consequence of the large number
of concluded pre-leases, many of the to-be-completed facilities have already been partially
leased out.
The largest projects at present in the Warsaw downtown area are: Zlote Tarasy
Lumen&Tower (45,000 m2 to be completed in 2007), Prosta Office Center I&II (34,000 m2),
International Business Centre II (20,000 m2), Universale International (12,750 m2) and
Grzybowska Park (10,000 m2).
48
www.pmrcorporate.com
Poland: analysis of selected economic sectors
2.6. Slaskie voivodship
2.6.1. Largest companies with service centres set up
in the region as part of BPO
Select companies with service centres in Slaskie voivodship
PMR027
Location
Katowice
Katowice
Katowice
Katowice
Bielsko-Biala
Dabrowa Gornicza
Ruda Slaska
Bielsko-Biała
Company
Calling Polska
ING Polska
Bombardier
Ontrack
Fiat
DHL Logistics
Gallup Polska
Avio Polska
Czestochowa
TRW Automotive
Katowice
Rockwell Automation
Business profile
Call centre
Processing centre
R&D centre
R&D centre
Financial and accounting services centre
Distribution centre
Call centre
R&D centre
Financial and accounting services centre
and R&D centre
Financial and accounting services centre
and software development centre
www.pmrpublications.com
Source: PMR, 2006
2.6.2. Workforce availability
Workforce resources
The Slaskie voivodship is the second most populous region and the second largest labour
market after Mazowieckie. It is the region with the third largest number of companies, after
the Mazowieckie and Wielkopolskie regions.
The region’s 47 higher learning institutions educate over 200,000 students. Katowice
is the largest academic centre in the region, with 71 higher schools in which 71,000 students
are enrolled (15,000 graduates each year).
Four largest higher schools in the voivodship educate in aggregate more than 100,000
students.
Largest higher education schools in Slaskie, by number of students
PMR028
University of Silesia
43,000
Silesian University of Technology
Czestochowa University of Technology
Karol Adamiecki University of Economics
Source: Regional Investor Support Centre, 2006
www.pmrcorporate.com
30,000
18,000
13,000
www.pmrpublications.com
49
Poland: analysis of selected economic sectors
In the Slaskie voivodship, the most popular specialisations are: management and
marketing, finance and banking, and economics.
Number of students studying select specialisations in Slaskie*
PMR029
* annual averages for 2003-2006
Source: Regional Investor Support Centre, 2006
193
160
Enterpreneurship and administration
783
Economis and financial engineering
873
IT
915
Mechanics and machinery building
2,224
Economics
Finances and banking
Management and marketing
2,755
Production engineering and management
7,246
www.pmrpublications.com
Despite the fact that unemployment in the region is one of the lowest in the country and is
continually falling, some counties in the region have an unemployment rate of over 20%. As
at the end of September 2005, Katowice had the lowest unemployment rate – 6.3%, while
the average rate for the region was 13.5%, which corresponds to 244,300 unemployed in the
region. Unemployed with university degrees account for slightly more than 6% of the total,
and those with secondary education – close to 30%.
2.6.3. Costs of doing business
2.6.3.1. Salaries and wages
Salaries paid in the Slaskie region are among the highest in Poland. The average gross
monthly pay in the enterprise sector stood at PLN 2,743 (€703) in October 2006 (that month
the national average wage was PLN 2,658).
Katowice has the second highest, after Warsaw, costs of employment. In the first
nine months of 2006, the average gross monthly pay in the city’s enterprise sector stood at
PLN 3,478 (€892), only 1% less than in Warsaw.
50
www.pmrcorporate.com
Poland: analysis of selected economic sectors
Gross pay (PLN) in Slaskie voivodship, by select positions, spring 2006
PMR030
IT
R&D
Engeeniring
Accounting
Sales
Customer service
Position
Average
Customer Service Manager
5,640
Customer Service Specialist
3,184
Technical Service Manager
7,206
Technical Service Specialist
2,917
Tele -sales representative
3,004
Chief Accountant
9,952
Accountant
3,727
Junior Accountant
3,409
Cashier
2,731
Engineering Manager
9,818
Product Engineer
4,879
Designer/Drafter
4,809
R&D Specialist
4,209
R&D Assistant
2,730
IT Manager
6,492
IT Help Desk
2,985
Source: AG TEST Human Resources, “Salary report – Spring 2006”
www.pmrpublications.com
2.6.3.2. Office space rental costs
It costs less to rent office space in Katowice than in Krakow or Warsaw. According to data
compiled by Metropolis Nieruchomosci Komercyjne, at the beginning of December 2006 class
A office space cost ca. €19/m2+utilities to rent per month. Prices are negotiable, and discounts
can amount to as much as 30% of the initial price, depending on the market position of the
prospective lessee, the size of the facility and the lease term. Usually, office space is rented
out under defined-term leases, for a minimum of three to five years.
Class B office space may be rented out for ca. €10-12/m2+utilities per month.
However, the rule of common areas, means that the rate is subject to additional charges
that amount to 20-30% of the initial price. In most cases, class B rent rates are non-negotiable.
Leases can be concluded for a defined or an undefined period.
www.pmrcorporate.com
51
Poland: analysis of selected economic sectors
2.6.3.3. Transport access
There is an international airport in the Slaskie region, in Pyrzowice. Aircrafts fly to the following
destination from the Pyrzowice airport:
n
France: Paris
n
Germany: Dortmund, Duesseldorf, Frankfurt Hahn, Frankfurt am Main, Cologne/Bonn,
Munich
n
Ireland: Cork, Dublin
n
Italy: Milan, Rome
n
Norway: Oslo
n
Poland: Warsaw
n
Sweden: Stockholm
n
UK: Edinburgh, Liverpool, London, Sheffield.
In addition, the Slaskie region has good road connections with the Polish-German
and Polish-Czech boarders, as well as the largest agglomerations in Poland – Warsaw, Lodz,
Krakow and Wroclaw.
2.6.4. Availability of investment sites
Office space
Katowice is the only city in the Silesian agglomeration with large office facilities. The market
of modern office space for rent came to Katowice fairly late, in 2001, upon the completion
of the Chorzowska 50 and Millenium Plaza office buildings with class A and class B space
respectively. Between the end of 2003 and the beginning of 2004, the existing commercial
stock was augmented by the Altus complex.
According to data compiled by Metropolis Nieruchomosci Komercyjne, Katowice had
44,000 m2 of class A office space as at the end of November 2006, of which approx. 1,000 m2
was readily available for rent. The city’s class B+ office buildings had 4,000 m2 of unleased
space. Additionally, 12,000 m2 of class B office space was also available in around a dozen or
so buildings throughout the city. By the end of the first quarter of 2007, Katowice will have
another ca. 6,500 m2 of office space, with an additional 43 000 m2 under construction.
Two buildings – Chorzowska 50 and Altus – are to be incorporated into the Katowice
Special Economic Zone (KSSE) at the top of January 2007, thus, investors with offices in those
buildings will be able to apply for additional public support. Both buildings are close to 100%
leased out.
In order to make the region an even more attractive destination for BPO-type projects,
the administration of the KSSE is planning to incorporate additional buildings into the zone.
52
www.pmrcorporate.com
Poland: analysis of selected economic sectors
2.7. Wielkopolskie voivodship
2.7.1. Largest companies with service centres set up
in the region as part of BPO
In Poznan, in comparison to Krakow and Wroclaw, fewer investors have decided to launch
service centres.
In 2006, the MAN concern made the decision to locate its service centre in Poznan. The
company intends to hire around 500 persons, making it the largest to-date investment of this
type in the capital of Wielkopolskie.
In 2006, Microsoft, along with the Poznan Supercomputer and Network Centre and the
Poznan University of Technology, launched the Innovation Centre to support the development
of innovative solutions and technologies in the fields of IT security and outsourcing services.
Select companies with service centres in Wielkopolskie voivodship
PMR031
Location
Poznan
Poznan
Poznan
Poznan
Poznan
Company
Armato Services Bertelsmann
Carlsberg Polska S.A.
MAN
GlaxoSmithKline
KPMG
Poznan
Microsoft
Poznan
Wikia*
* investment planned for 2007
Source: PMR, 2006
Business profile
Call centre
Financial and accounting centre
Financial and accounting centre
Call centre
Financial and accounting centre
Innovation centre – to support innovative
solutions and technologies supporting IT security
R&D centre
www.pmrpublications.com
2.7.2. Workforce availability
Workforce resources
The city of Poznan is the largest, after Warsaw, Katowice and Krakow, labour market in Poland.
In the first three quarters of 2006, the average employment in the enterprise sector amounted
to close to 146,000 persons in the city.
The Wielkopolskie region has the fourth largest student population in Poland. There are
approximately 7,600 academic teachers in the region, while the ratio of teachers per 1,000
students is one of the highest in Poland (only Gdansk can boast of a higher tally).
The 36 higher education institutions in Wielkopolskie have in aggregate more than
160,000 students.
Poznan is the largest academic centre in Wielkopolska. Its 28 tertiary schools educate
133,000 students and release more than 24,000 graduates each year. This is the fourth best
result countrywide.
www.pmrcorporate.com
53
Poland: analysis of selected economic sectors
Number of students and graduates in Poznan (thousands), 2000-2006
PMR032
118.5
121.8
122.8
126.8
132.9
16.1
20.0
21.5
23.8
25.1
24.1
2000/2001
2001/2002
2002/2003
2003/2004
2004/2005
2005/2006
107.5
Students
Graduates
www.pmrpublications.com
Source: GUS, 2006
The Adam Mickiewicz University, the Poznan University of Technology, the Poznan University
of Economics, and the Poznan University of Agriculture are the largest tertiary schools in
Poznan, in aggregate, they educate close to 66% of students in Poznan.
The most popular faculties among Poznan students are management, business and
administration, economics, and finances and banking. These specialisations are offered in the
greatest number of the region’s higher education institutions (17 – management, 6 – business
and administration, and 5 – economics). Computer science can be studied at nine universities
in the voivodship.
Number of graduates with most popular specialisations in Poznan
PMR033
5,993
2.181
Management
Business
administration
1,565
1,444
1,289
Economics
Finances and
banking
Engineering*
* This category encompasses production, material,
metal engineering, as well as machinery and robotics.
Source: Regional Investor Support Centre, 2006
566
IT
www.pmrpublications.com
The Wielkopolskie region has one of the lowest unemployment rates in the country, which is
continually falling. As at the end of October 2006, the unemployment rate in the region stood
at 11.8%, which means that close to 186,000 did not have a job. Nearly 5% of the total were
unemployed with university degrees.
In September 2006, the unemployment rate in Poznan was 5.3% (only Warsaw
had a lower registered unemployment rate at that time), which corresponded to 17,000
unemployed.
54
www.pmrcorporate.com
Poland: analysis of selected economic sectors
2.7.3. Cost of doing business
2.7.3.1. Salaries and wages
The average pay in Wielkopolskie is below the national average, and it is continually rising.
In October 2006, the average gross monthly pay in the voivodship’s enterprise sector
amounted to PLN 2,391 (€613), i.e. 11% below the national average.
In the first nine months of 2006, the average gross monthly pay in Poznan’s enterprise
sector was lower than the corresponding figure in Warsaw, Katowice and Gdansk, and
amounted to close to PLN 2,823 (€724).
Gross pay (PLN) in Wielkopolskie voivodship,
by select positions, spring 2006
PMR034
R&D
Engineering
Accounting
Finances
Customer service
Sales
Position
Average
Tele-sales Representative
2,698
Customer Service Manager
7,102
Customer Service Specialist
3,237
Technical Service Manager
6,197
Technical Service Specialist
2,845
Finance Director
18,307
Finance Manager
10,976
Finance Controller
8,567
Finance Specialist
4,495
Finance Analyst
5,752
Finance Assistant
2,459
Chief Accountant
9,728
Accountant
3,272
Junior Accountant
2,311
Cashier
2,286
Process Engineering Specialist
3,285
Product Engineer
3,612
Designer / Drafter
3,666
R&D Manager
7,254
R&D Specialist
4,087
Source: AG TEST Human Resources, “Salary report – Spring 2006”
www.pmrcorporate.com
www.pmrpublications.com
55
Poland: analysis of selected economic sectors
2.7.3.2. Office space lease costs
According to Jones Lang LaSalle’s report published in June 2006, the highest monthly office
lease rates oscillate from €14/m2 at the Andersia Tower and the Poznan Business Centre to
€16/m2 at the Stary Browar Art and Business Trade Centre. The average initial monthly rates in
class A and B office buildings range between €12-13/m2.
2.7.3.3. Transport access
The Wielkopolskie voivodship has an international airport in Poznan-Lawica. From the airport,
aircrafts fly to the following destinations:
n
Denmark: Copenhagen
n
Germany: Frankfurt, Munich
n
Ireland: Dublin
n
Poland: Warsaw
n
UK: Liverpool, London.
In addition, the A2 motorway passes through the voivodship, which once completed is
to connect the regional capital (Poznan) with the Polish-German boarder, Lodz, Warsaw and
the eastern boarder.
2.7.4. Availability of investment sites
Office space
Between 2004 and 2005, no sizeable office facilities were completed in Poznan, meanwhile,
the available stock, completed in 2003, was gradually absorbed by the market. The percentage
share of available office space in Poznan has been falling successively. As a result, there is
practically no free class A office space at present.
Readily rentable space, approximately 10,000 m2, is available only in class B and C office
buildings. The space which will be made available in newly-constructed buildings between
2007 and 2008 will total about 90,000 m2.
At present, two important office projects are underway in Poznan, namely the Andersia
Tower (8,600 m2) and the Ataner Business Center (9,000 m2), which are both to be completed
in 2007. Additionally, 49,000 m2 of office space is currently in the planning stage, including
a business park (24,000 m2 ) east from the city centre.
In the voivodship there is, among others, a sub-zone of the Kostrzyn-Slubice Special
Economic Zone, where investors who have established service centres within the frameworks
of BPO operate on preferential terms.
56
www.pmrcorporate.com
Poland: analysis of selected economic sectors
3. Advanced technologies (high-tech) sector
High-tech sector – selected locations
PMR113
Gdynia
Sopot
Gdansk
Bydgoszcz
Torun
Warsaw
Wroclaw
Gliwice
Krakow
Bielsko-Biala
Source: PMR, 2006
www.pmrcorporate.com
www.pmrpublications.com
57
Poland: analysis of selected economic sectors
The main industries considered high-tech are: information and telecommunication
technologies, biotechnology, nanotechnology and robotics.
The number of companies investing in advanced technologies in Poland is steadily
rising. Poland is seeing a greater inflow of funds from, among others, IT, automotive, aviation,
cosmetics and pharmaceutical concerns, which are deciding to locate their research and
development (R&D) centres in the country, thus, contributing towards the creation of a private
R&D sector in Poland. To present, global concerns have established 37 R&D centres in Poland.
Investors are persuaded to locate high-tech projects in Poland by the following factors:
n
large number of highly qualified graduates of tertiary technical schools and R&D
specialists
n
large number of R&D units (ca. 200 in Poland), Polish Academy of Sciences (PAN) centres
(ca. 80) and academic centres (ca. 130)
n
growing number of technological parks located nearby large academic centres, whose
primary task is to improve how effectively new R&D findings are put to practice in
economy and society.
At present, Poland houses 34 technological parks.
Number of R&D employees in Poland, by type of institution
PMR035
Tertiary schools
38,455
11,387
R&D units
PAN scientific units
Development units
4,494
3,669
Source: GUS, 2003 data
www.pmrpublications.com
3.1. Dolnoslaskie voivodship
3.1.1. Largest high-tech companies in the region
The Dolnoslaskie voivodship is second only to Mazowieckie in terms of the number of IT
companies operating within its boarders. According to the Teleinfo500 report, in 2005
IT companies operating in Dolnoslaskie generated 10% of the aggregate revenues of
all IT companies in Poland (second best result after Mazowieckie which accounts for 60.2% of
the total revenues).
The region houses large companies specialising in the production of software and in the
provision of IT services. Companies in the region also supply components to firms from the IT
and biotech industries.
Siemens is one of the companies with a software development centre in Wroclaw. The
centre, with approximately 700 specialists on staff, is one of Siemens’ largest centres of the
type.
58
www.pmrcorporate.com
Poland: analysis of selected economic sectors
Select companies from the high-tech sector operating
in Dolnoslaskie voivodship
PMR036
Location
Wroclaw
Company
Winuel
Wroclaw
QAD Polska
Wroclaw
Wroclaw
Wroclaw
Wroclaw
Wroclaw
Wroclaw
Wroclaw
Teta
Vulcan
Hewlett-Packard
Siemens
Alstom
Cap Gemini Polska
Remy Internationale
Wroclaw
Diehl Controls
Wroclaw
Wroclaw
Wroclaw
Wroclaw
Wroclaw
InsERT
Euroimpex
PSI
Probit
Controlling Systems
Wroclaw
T-Systems Polska
Wroclaw
IMG Polska
Computer Communication
System
Wroclaw
Wroclaw
Surfland
Wroclaw
Advatech
Business profile
Software manufacturing
Production of IT solutions for clients from the CEE,
regional centre
Software manufacturing
Software manufacturing
Outsourcing centre
Software development centre
R&D centre
Software and IT services development centre
R&D centre
Design and implementation of advanced solutions for
manufacturers of household appliances
Software manufacturing
Software manufacturing
Software manufacturing
Software manufacturing
Software manufacturing
Advisory, integration and implementation of ERP and
CRM systems
Implementation, advisory and consultation services
System integrator specialising in provision of advanced
IT services
Software manufacturer, implementation and outsourcing
services, hosting, ISP
Implementation, training and outsourcing services
Source: PMR, Teleinfo500, 2006
www.pmrpublications.com
3.1.2. R&D institutions in the high-tech sector
Business-type and R&D institutions, which play a role in the development of the advanced
technologies sector in the region, include:
n
Know-How and Technology Transfer Centre at the Wroclaw University
(www.otwt.uni.wroc.pl)
n
Wroclaw Centre for Technology Transfer at the Wroclaw University of Technology
(www.wctt.pl)
n
Wroclaw Technological Park (www.technologpark.pl)
n
Dolnoslaskie Centre for Advanced Technologies at the Wroclaw University of Technology
(www.dczt.wroclaw.pl)
n
Institute for Computer Automation and Measurement Systems (www.iksaip.pop.pl)
n
Institute for Power System Automation (www.iase.wroc.pl).
3.1.3. Workforce availability
The Dolnoslaskie voivodship is the fourth largest academic centre in Poland, in terms of
student population size. The 35 higher education institutions of the region educate more than
166,000 students with the help of around 7,000 academic teachers.
In the Dolnoslaskie voivodship, the largest number of students (close to 137,000)
is enrolled in one of the 26 academic institutions in Wroclaw. Every year, around 26,000
graduates leave Wroclaw tertiary schools.
www.pmrcorporate.com
59
Poland: analysis of selected economic sectors
The Wroclaw University of Technology is the largest technical school in the region; it has
more than 32,000 students each year. The Wroclaw University also offers a lot of technical
specialisations (one of the university’s faculties the silver medal in 2004 at the International
Team Programming Competition).
The region is the fourth largest employer of R&D specialists (approx. 8% of the country’s
resources).
Select tertiary schools offering technical specialisations
in Dolnoslaskie voivodship
PMR037
School
Wroclaw University
Wroclaw University
of Technology
University of Information
Technology and
Management “Copernicus”
Selected specialisations
astronomy
biology
biotechnology
chemistry
physics
geography
computer science
mathematics
control engineering and robotics
biotechnology
chemistry
electronics and telecommunications
electrical engineering
physics, technical physics
computer science
chemical and process engineering
materials engineering
environmental engineering
mathematics
mechanical engineering and machine building
metallurgy
chemical engineering
production management and engineering
computer science
* The data encompasses the total number of students enrolled at a given school,
not just in select specialisations; data to the nearest thousand.
Source: PMR, Regional Investor Support Centre, 2006
Number of
students (annual)*
39,700
32,300
987
www.pmrpublications.com
The Dolnoslaskie region has one of the highest regional unemployment rates, though the rate
has been falling steadily. As at the end of October 2006, the regional unemployment rate was
16.8% (down by 3.4 percentage points from 20.2% of the preceding year).
As at the end of September 2006, the unemployment rate in Wroclaw was 8.9% (down
by 2.4 percentage points from 11.3% of the previous September).
60
www.pmrcorporate.com
Poland: analysis of selected economic sectors
Number of students and graduates of select technical specialisations
in Dolnoslaskie voivodship
PMR038
1,067
Computer science
Production engineering
Environmental engineering
Chemical engineering
546
3,026
311
Mechanical engineering and robotics
Physics
211
Automation and electrical engineering
3,606
390
161
Biotechnology
6,785
2,855
1,902
1,768
300
203
1,511
1,291
Materials engineering 34
131
Students
Source: PMR based on data from the Regional Investor Support Centre, 2006
Graduates
www.pmrpublications.com
Wroclaw has a relatively high percentage of unemployed with university degrees. In June 2006
10.4% of the city’s unemployed had graduated from a tertiary school, i.e. 28,200 persons.
As a consequence of the falling unemployment rate and the rising inflow of foreign
investments, companies have found it increasingly difficult to find duly qualified candidates for
offered jobs. This, however, primarily concerns candidates with secondary technical training,
not university graduates.
According to a survey conducted by KPMG in July and August 2006, 50% of the
51 surveyed companies experienced problems in recurring engineers and computer
programmers.
3.1.4. Costs of doing business
3.1.4.1. Salaries and wages
The average gross pay in the enterprise sector amounted to PLN 2,544 (€652) in October
2006, i.e. 95.7% of the national average.
In a comparison of salaries and wages paid across the regional capitals in the first nine
months of 2006, persons gainfully employed in Wroclaw were on average paid PLN 2,529
(€648), thus, less than their counterparts in Warsaw, Katowice, Gdansk, Poznan and Krakow
(27% less than in Warsaw).
www.pmrcorporate.com
61
Poland: analysis of selected economic sectors
Gross pay (PLN) in Dolnoslaskie voivodship,
by select positions, spring 2006
PMR039
Quality assurance
Engineering
Production
Position
Production Manager
6,670
Production Planning Specialist
3,838
Maintenance Specialist
3,161
Shift Leader
3,761
Handlers / Operators Foreman
2,980
Mechanic
2,785
Electrician
2,599
Locksmith
3,070
Turner
2,165
Fitter
1,672
Production Operator
2,143
Fork Lift Operator
1,948
Quality Control Worker
1,750
Floor Hand
1,935
Cleaning Staff
1,295
Process Engineering Specialist
3,632
Designer / Drafter
3,749
Quality Specialist
3,542
Laboratory Technician
2,606
Source: AG TEST Human Resources, “Salary report – Spring 2006”
62
Average
www.pmrpublications.com
www.pmrcorporate.com
Poland: analysis of selected economic sectors
3.1.4.2. Office space rental costs
It costs less to rent office space in Wroclaw than in Warsaw or Krakow. According to the
June 2006 report published by Jones Lang LaSalle, office space lease rates are in a moderate
uptrend and oscillate around €14-15/m2/month for the best class A and B space and around
€8-13/m2/month for class B space in office and old tenement buildings. Average monthly
maintenance costs amount to ca. €2.5/m2.
3.1.4.3. Warehouse space rental costs
According to Cushman&Wakefield, it costs €3-4/m2 a month to rent warehouse space outside
of Warsaw (based on a report published at the beginning of 2006).
3.1.5. Availability of investment sites
Wroclaw Technology Park (www.technologpark.pl)
The following sectors of the high-tech industry have been assigned priority in the development
strategy of the Dolnoslaskie voivodship:
n
materials engineering (nanoelectronics, nanomagnetics,
microsystems, molecular electronics, photonics)
n
biotechnology
n
information technologies
n
power engineering (renewable and alternative energy sources)
n
advanced medical technologies.
optical
electronics,
Investors looking to develop operations in the above sectors can do so on preferential
terms in the Wroclaw Technology Park. The park provides:
n
lease of office and laboratory space as well as investment sites
n
lease of laboratories and equipment, additionally technical equipment comprising the
furnishings of workrooms and laboratories is made available to interested firms
n
use of conference halls and visitor rooms
n
advisory from the Wroclaw Technology Park (concerning such issues as commercialisation
of technologies, patent services, subsidies from EU funds).
Special Economic Zones
The following SEZ are located in the Dolnoslaskie voivodship:
n
Walbrzych Special Economic Zone “Invest-Park” (812 ha)
n
Legnica Special Economic Zone (416 ha)
n
Kamienna-Gora Special Entrepreneurship Zone (240 ha).
Any company investing in an area incorporated into a zone has the right to apply for
assistance from a public aid package which includes, in particular, partial relief from income tax.
www.pmrcorporate.com
63
Poland: analysis of selected economic sectors
3.2. Kujawsko-Pomorskie voivodship
3.2.1. Largest high-tech companies in the region
Companies operating in the Kujawsko-Pomorskie voivodship account for 1% of revenues
generated by all IT companies in the country. The largest foreign investors operating in the
high-tech industry in the region are Lucent Technologies Poland and Atos Origin.
Select companies from the high tech sector operating in Kujawsko-Pomorskie voivodship
PMR040
Location
Company
Bydgoszcz
Bydgoszcz
Bydgoszcz
Bydgoszcz
Bydgoszcz
Torun
Bydgoszcz
Bydgoszcz
Bydgoszcz
Bazy i Systemy Bankowe
Postdata
ZETO
Macrosoft Polnoc
Abas
AIS.pl
Slican
Lucent Technolog ies Poland
Atos Origin IT Services
Workforce
in 2005
223
111
34
21
89
550
107*
Business profile
Among others, custom software development
Software manufacturing
Software manufacturing
Software manufacturing
Software manufacturing and distribution
IT services, consulting, outsourcing
Production of telecommunications equipment
Production of telecommunications equipment; R&D centre
Software distribution; integration, implementation and training services
“-” – no data
* aggregate office workforce in Bydgoszcz and Warsaw as at the end of 2005
Source: Teleinfo500, 2006
www.pmrpublications.com
3.2.2. R&D institutions in the high-tech sector
A sizeable number of R&D institutions that support the development of the high-tech sector
operate in the Kujawsko-Pomorskie voivodship:
n
Centre for Technology Transfer (www.technopark.org.pl) and the Regional Centre
Supporting Innovation and Technology Transfer which operates within the frameworks
of the CTT
n
Bydgoszcz Scientific Society (www.btn.atr.bydgoszcz.pl)
n
Wroclaw Scientific Society (www.wtn.pl)
n
Torun Scientific Society
n
Regional Innovation Centre at the University of Technology and Life Sciences in
Bydgoszcz (www.utp.edu.pl)
n
National Atomic, Molecular and Optical Physics Laboratory (famo.phys.uni.torun.pl)
n
Polish Federation of Engineering Associations of Bydgoszcz, Torun, Inowroclaw,
Grudziadz and Wloclawek (www.not.org.pl).
The establishment of the Kujawsko-Pomorska Information Network (K-PSI), created
as an initiative of the voivod, the Torun University and the University of Technology and
Life Sciences in Bydgoszcz, should make a positive contribution towards the development
of the high-tech industry in the region. The K-PSI will be responsible for creating a modern
broadband IT infrastructure in the region.
64
www.pmrcorporate.com
Poland: analysis of selected economic sectors
3.2.3. Workforce availability
More than 85,000 persons study in the Kujawsko-Pomorskie voivodship. Bydgoszcz and Torun
comprise the two largest academic hubs in the region. The Nicolaus Copernicus University
of Torun is the largest university in northern Poland, while the University of Technology and
Life Sciences in Bydgoszcz is one of the largest higher technical schools in northern Poland.
Bydgoszcz has about 43,000 students, Torun – 37,000.
Number of students in Torun and Bydgoszcz, 2001-2006
PMR041
33.4
36.3
38.4
40.7
41.4
42.7
30.5
32.9
34.0
34.7
36.5
37.1
2000/2001
2001/2002
2002/2003
2003/2004
2004/2005
2005/2006
Bydgoszcz
Source: GUS, 2006
Torun
www.pmrpublications.com
Select tertiary schools offering technical specialisations in Kujawsko-Pomorskie voivodship
PMR042
School
Nicolaus Copernicus University of Torun
University of Technology and Life Sciences in Bydoszcz
Kazimierz Wielki University in Bydgoszcz
Higher School of Environmental Protection
State School of Higher Vocational Education
Selected specialisations
astronomy
automation and robotics
biology
biotechnology
chemistry
physics
geography
computer science
applied computer science
mathematics
environmental protection
biotechnology
construction
electronics and telecommunications
electrical engineering
physics
environmental protection
mechanical engineering and machine
building
chemical engineering
zoology and animal technology
farming and forestry
mathematics, physics and technology
(computer science and econometrics)
life sciences (biology and geography)
environmental protection
computer science
Note: data refers to the aggregate number of students enrolled at a given school, not just in the selected specialisations.
Source: PMR, Regional Investor Support Centre, 2006
www.pmrcorporate.com
Number of
students
Number of
graduates
37,440
7,814
10,066
2,126
15,877
4,520
1,100
783
www.pmrpublications.com
65
Poland: analysis of selected economic sectors
The unemployment rate in the Kujawsko-Pomorskie region is relatively high. As at the
end of October 2006, the regional unemployment rate stood at 19.1% (national average
– 14.9%). Close to 158,000 people did not have a job. As at the end of September 2006
unemployed with university degrees accounted for 4% of the region’s unemployed.
As at the end of September 2006, the unemployment rate was 9.1% in Bydgoszcz and
10.2% in Torun.
3.2.4. Costs of doing business
3.2.4.1. Salaries and wages
Gross pay (PLN) in Kujawsko-Pomorskie voivodship,
by select positions, spring 2006
PMR043
R&D
Quality assurance
Engineering
Production
Position
Production Director
8,684
Production Manager
5,481
Production Planning Specialist
3,513
Maintenance Specialist
3,953
Shift Leader
3,728
Handlers / Operators Foreman
2,818
Mechanic
2,653
Electrician
3,067
Fitter
3,288
Production Operator
2,369
Fork Lift Operator
2,255
Packer
2,179
Floor Hand
2,505
Cleaning Staff
1,317
Process Engineering Specialist
5,010
Quality Manager
4,733
Quality Specialist
4,089
Laboratory Supervisor
2,828
Laboratory Technician
2,444
R&D Manager
3,975
R&D Specialist
2,406
Source: AG TEST Human Resources, “Salary report – Spring 2006”
66
Average
www.pmrpublications.com
www.pmrcorporate.com
Poland: analysis of selected economic sectors
The average worker receives below the national average pay in the Kujawsko-Pomorskie
voivodship.
In October 2006, the average gross monthly pay in the enterprise sector amounted to
PLN 2,255 (€655), i.e. 15% below the national average.
Between January and September 2006, the average gross monthly pay in Torun stood at
PLN 2,416 (30% less than in Warsaw) and PLN 2,331 in Bygoszcz (33% less than in Warsaw).
3.2.4.2. Transport access
n
A planned route of the A1 motorway is to transect Torun and run approx. 50 km
away from Bydgoszcz; the motorway is to connect the north with the south of Poland.
Currently, the section from Gdansk in the direction of the Nowe Marzy junction is under
construction.
n
International airport in Bydgoszcz-Szwederowo offers direct flights to Warsaw and
London.
3.2.5. Availability of investment sites
Centre for Technology Transfer in Torun (www.technopark.org.pl)
n
Offers office and laboratory space as well as investment sites (as of May 2007, the zone
administration will make available 10 ha with road and technical infrastructure and
with fully regulated legal status).
n
Offers fee-of-charge advisory provided by competent units at the Centre for Technology
Transfer, namely: Euro Info Centre, Regional Centre Supporting Innovation and
Technology Transfer, and the Consultation Point.
n
Offers a conference and training block, meeting rooms, hotel facilities.
n
Possibility of relief or exemption from property tax.
Bydgoszcz Industrial Park (www.bpp.bydgoszcz.pl)
n
Offers facilities that can be used for production, services, storage, as well as investment
sites with full media hook up and infrastructure, with fully approved master plans.
n
Possibility of relief or exemption from property tax.
n
Good transport connections – the park is situated 3 km from the airport and has an own
railway station, Bydgoszcz Emilianowo, on the Slask-Porty route.
www.pmrcorporate.com
67
Poland: analysis of selected economic sectors
3.3. Malopolskie voivodship
3.3.1. Largest high-tech companies in the region
Beyond Mazowieckie and Dolnoslaskie, the Malopolskie voivodship is the largest hub of hightech companies in Poland; this hub is continually noting dynamic growth.
According to Teleinfo500, in 2005 the region recorded to steepest growth in IT company
revenues from among all the Polish regions. In 2005 the region had a 7.5% percentage share
in the aggregate national revenues generated by IT companies.
Krakow is the headquarters of a number of leading software, hardware and
telecommunications equipment manufacturers and internet service providers.
In 2006 several large international concerns made the decision to establish outsourcing
centres in Krakow, including:
n
Tata Consultancy Services (its investments to date include an IT solutions outsourcing
centre)
n
Google (software development centre which, once fully operational, is to employ 20-30
high-class specialists).
Select companies from the high-tech sector operating in Malopolskie voivodship
PMR044
Location
Krakow
Company
Comarch
Krakow
KONCEPT BIW
Krakow
Krakow
Sucha Beskidzka
Krakow
Krakow
Krakow
Krakow
Krakow
Krakow
Krakow
Krakow
Krakow
Krakow
Krakow
Krakow
Krakow
Krakow
Lexmark International Polska
DTK Computer Polska
Fideltronik Polska
CH2MHill
IBM
ABB
Delphi Automotive Systems
Lurki
Motorowa
Plisa
Sabre
FCA
Unima2000
Tele -Fonika Kable
Digitland
Quantum Software
Ericpol Telecom
Source: PMR, Teleinfo500, 2006
Business profile
Software manufacturing
IT integration services, e.g. design and development of power
and logistics computer networks
Design, production and sale of solutions for printing
Hardware manufacturing
Hardware manufacturing
Construction and commissioning of telecommunications networks
Software development centre
R&D centre
R&D centre for the auto industry
R&D centre
Software development centre
R&D centre
R&D centre
Telecommunications equipment manufacturing
Design, supply and commissioning of telecommunications systems
Telecommunications equipment manufacturing
Software manufacturing
Software manufacturing and distribution
R&D work related to the design of software for telecommunications
www.pmrpublications.com
3.3.2. R&D institutions in the high-tech sector
The Malopolskie region has one of the largest groupings of R&D institutions of any region
in Poland. The region is also a leader in terms of the number of technology transfer centres,
advanced technology centres, and centres of excellence. The region’s tertiary schools
partnership in joint scientific and research-development projects whose aim is to interest the
business milieu in R&D work.
68
www.pmrcorporate.com
Poland: analysis of selected economic sectors
n
Technology transfer centres:
Innovation, Technology Transfer and Development Centre at the Jagiellonian University
(www.cittru.uj.edu.pl)
n
Centre for Technology Transfer at the Krakow University of Technology
(www.transfer.edu.pl)
n
CYFRONET Academic Computer Centre at the AGH University of Science and Technology
(www.cyfronet.pl).
n
Advanced technology centres:
AKCENT Malopolska Centre for Advanced Technologies at the Jagiellonian University
(www.akcent.malopolska.pl), within the frameworks of which the following projects are
underway:

Joint venture between the Jagiellonian University, the Agricultural University of
Krakow and the Polish Academy of Science: Malopolskie Biotechnology Centre

Provision of additional apparatus to laboratories of the New Materials and
Nanotechnology Centre

Krakow Laboratory for Development and Distribution of Multimedia Content for
Technology and Know-How Transfer

International Laboratory for Interactive Three-Dimensional Visualisation

Renewable Energy Centre
n
Centre for Advanced Tele-Information Technologies for Business (AGH University of
Science and Technology)
n
Centre for Advanced Technologies of Raw Materials, Carbon Fuels and Renewable
Energy (www.igng.krakow.pl).
Centres of excellence (scientific units engaged on a continuous basis in scientific research
and international cooperation, in particular within the frameworks of EU programmes, in order
to broaden knowledge in fields regarded as especially critical for the economy in assumptions
underlying the country’s scientific and innovation policies):
n
CeKoMat Centre of Excellence for New Computer Technologies for Metallurgy and
Materials Engineering
n
COCAFTEC Centre of Excellence for Advanced Casting Technologies
n
Centre of Excellence for the Faculty of Biochemistry, Biophysics and Biotechnology at the
Jagiellonian University in Krakow
n
CATCOLL Centre of Excellence, Krakow Research Centre of Molecular Catalysis and Soft
Matter Chemistry
n
IONMED Centre of Excellence, Krakow Research Centre for Ion Engineering
n
Centre of Excellence in E-Learning at the AGH University of Science and Technology.
www.pmrcorporate.com
69
Poland: analysis of selected economic sectors
Select R&D institutions operating in Malopolskie voivodship
PMR045
Institution
Hybrid Microelectronics and
Resistors R&D Centre
(www.ite.waw.pl)
Institute of Nuclear Physics PAN
(www.ifj.edu.pl)
Institute of Catalysis and Surface
Chemistry PAS
(atom.ik-pan.krakow.pl)
Profile
Operates as a remote branch of the Institute of Electron
Technol ogy in Warsaw, a PAN unit . The objective of the
centre is to conduct world-class scientific research and to
develop advanced semiconductor technologies to be used
in innovative products.
The institute engages in basic and applied research
in physics.
Research in the field of catalysis and surface chemistry.
Research in such areas as the development
Institute of Metallurgy and Materials
of environmentally friendly materials, nano- and
Science PAN
micro-crystalic materials, as well as the development
(www.imim.pl)
of research and diagnostic tools.
Institute of Advanced
Specialises in chipboard, abrasive and corrosive machining
Manufacturing Technolog y
and in technical metrology, assembly and automation of
(www.ios.krakow.pl)
manufacturing processes.
Source: PMR, 2006
www.pmrpublications.com
3.3.3. Workforce availability
The Malopolskie region is the third largest, in terms of student population, university education
hub in Poland. The region has over 11,000 academic teachers (the second largest group of
these professionals in the country) who educate over 200,000 students. Every year, more than
33,000 graduates exit the 34 Malopolskie tertiary schools. The region employs also 13% of all
R&D specialists in the country (only trailing behind Warsaw).
The AGH University of Science and Technology and the Krakow University of Technology
together have more than 46,400 students; every year the two release close to 9,000 graduates
onto the labour market.
Malopolskie has one of the lowest unemployment rates in the country. As at the end of
September 2006, the unemployment rate in the region was 11.6%, which means that close to
149,000 persons were unemployed at the time. Of the total, 6.6% represented unemployed
with university degrees.
70
www.pmrcorporate.com
Poland: analysis of selected economic sectors
Select tertiary schools offering technical specialisations
in Malopolskie voivodship
PMR046
School
Jagiellonian University
AGH University
of Science and
Technology
Krakow University
of Technology
Select specialisations
astronomy
biophysics
biology
biotechnology
chemistry
physics
geography
computer science
materials engineering
mathematics
environmental protection
biology and geography studies
mathematics and natural science studies
automation and robotics
electronics and telecommunications
electrical engineering
technical physics
mining and geology
computer science
applied computer science
materials engineering
environmental engineering
mathematics
mechanical engineering and machine building
metallurgy
chemical engineering
production management and engineering
architecture
automation and robotics
electrical engineering
technical physics
computer science
computer science and data communication
systems
applied computer science
chemical and process engineering
materials engineering
environmental engineering
mathematics
mechanical engineering and machine building
chemical technology
production management and engineering
* The data encompasses the total number of students enrolled at a given school,
not just in select specialisations; data to the nearest thousand.
Source: PMR, 2006
Number of students
(annual)*
43,400
30,000
17,000
www.pmrpublications.com
In September 2006 the unemployment rate in Krakow was 5.8%, which corresponds to over
3,000 persons, of which a steep 14% had completed tertiary education.
www.pmrcorporate.com
71
Poland: analysis of selected economic sectors
3.3.4. Costs of doing business
3.3.4.1. Salaries and wages
In October 2006 the gross average pay in the enterprise sector amounted to nearly PLN 2,405
(€617), i.e. 90.5% of the national average.
In a comparison of remuneration paid across the region capitals, the average gross
pay in the enterprise sector in the first nine months of 2006 was lower in Krakow than in
Katowice, Warsaw, Gdansk and Poznan, and amounted to PLN 2,562 (€657).
Gross pay (PLN) in Malopolskie voivodship, by select positions, spring 2006
PMR047
Production
Position
Production Manager
Production Planning Supervisor
6,654
Production Planning Specialist
2,614
Maintenance Manager
7,832
Maintenance Specialist
7,130
General Specialist in Production Department
6,088
Automation Service Engineer
2,506
Production Assistant
2,733
Shift Leader
4,728
Handlers / Operators Foreman
2,713
Mechanic
4,365
Electrician
4,066
Electrical Fitter
2,048
Locksmith
1,917
Turner
1,873
Solderer
2,055
Fitter
1,669
Production Operator
2,558
Fork Lift Operator
2,040
Packer
3,013
Quality Control Worker
1,868
Engineering
Process Engineering Specialist
5,134
Product Engineer
2,605
Designer / Drafter
3,032
Quality assurance
2,012
Engineering Director
Quality Manager
7,059
Quality Specialist
3,998
Laboratory Supervisor
6,036
Laboratory Technician
3,483
R&D
Floor Hand
R&D Specialist
3,028
R&D Assistant
2,151
Source: AG TEST Human Resources, “Salary report – Spring 2006”
72
Average
7,619
14,171
www.pmrpublications.com
www.pmrcorporate.com
Poland: analysis of selected economic sectors
3.3.4.2. Office space rental costs
It costs less to rent office space in Krakow than in Warsaw, though the space can be rented
out for less in all other regional capitals.
According to Jones Lang LaSalle’s report published in June 2006, opening rates in best
locations, in main office buildings in Krakow, oscillate around €15-17/m2/month. The average
opening prices for modern space in class A and B office buildings stand at €13-14/m2/month.
3.3.4.3. Warehouse space rental costs
According to Cushman&Wakefield, the cost of renting a m2 of office space outside of Warsaw
is €3-4 per month.
3.3.5. Availability of investment sites
Krakow Technology Park
The advanced technologies industry has been defined as a priority sector in the development
strategy of the Malopolskie region. Meanwhile, the strategic objectives of the Krakow Special
Economic Zone (KSSE) include:
n
to inspire the establishment of innovative technological projects
n
to facilitate technology transfer
n
to commercialise the findings of scientific research of Krakow’s tertiary schools and
research units
n
to initiate cooperation between industry and academia.
n
The KSSE is particularly interested in attractive investment projects focused on:
IT system technologies and telecommunications networks
n
electronics, including optical electronics and micro electronics
n
materials engineering technology
n
healthcare technologies and medical engineering
n
biotechnology and genetic engineering
n
technologies related to environmental protection and to using renewable and
unconventional energy sources.
The Krakow Technology Park (KPT) offers preferential terms for the above types
of projects. The KPT’s offer encompasses both Greenfield-type investment sites as well as
completed office space for rent. A firm investing in an area incorporated in the zone has the
right to draw on support from a public aid package, in particular, on partial exemption from
income tax. The KSSE has the following sub-zones:
n
Czyzyny (29.44 ha) – land zoned for office and scientific and didactic facilities, 4 km
from downtown Krakow
n
Pychowice (31.53 ha) – land zoned for office facilities, 7 km from downtown Krakow
n
Branice (13.82 ha) – land zoned for industrial plants, approximately 10 km from
downtown Krakow
n
Krakow Business Park in Zabierzow – land zoned for office facilities, just at the northwestern municipal boarder of Krakow, it neighbours the A4 motorway, the Balice airport
and the railway line
www.pmrcorporate.com
73
Poland: analysis of selected economic sectors
n
Niepolomice (140.87 ha) – land has been approved for development by MAN Trucks of
Germany as well as the company’s subcontractors
n
Bronowice – the Brama Bronowicka office buildings has the status of a Special Economic
Zone
n
Tarnow Industrial Cluster (35.6 ha) – area zoned for industrial plants, located in northwestern Tarnow, within the Tarnow-Chyrzow district, near Tarnow’s northern ringroad
on the Kielce-Krakow route.
At present, nearly the entire territory of the Krakow Technology Park is occupied by
investors. The administration of the zone is planning to prepare new office space for investors
in 2007 (around 3,000 m2 of office space in the KBP and another 2,000 m2 in office buildings
in Czyzyny). Approximately 40 ha of new land will also be made available at the beginning of
2007 to investors within the Krakow Technology Par for Greenfield projects, these areas have
already been incorporated into the KSSE.
It is also possible that new sites (both office facilities and land for Greenfield projects) in
which investors are interested will be incorporated into the zone.
Office space
According to the representatives of the local government, in November 2006 only a few office
buildings had larger areas of empty space ready for rent. A larger supply of office space should
filter onto the Krakow market at the beginning of 2007. According to Jones Lang LaSalle, in
June 2006 a total of 32,000 m2 of office space was under construction. In addition, another
90,000 m2 was being planned and should be completed by the end of 2008.
3.4. Mazowieckie voivodship
3.4.1. Largest high-tech companies in the region
The Mazowieckie voivodship is a clear leader in the high-tech industry among all the regions
of Poland. Its percentage share in total revenues of IT companies in Poland has been rising and
in 2005, it was 60.2% (based on Teleinfo500 data). The Mazowieckie region is home to the
largest concentration of IT companies in Poland. Next to Malopolskie and Dolnoslaskie, this
region is also a leader in terms of the number of R&D centres and foreign investments in the
high-tech industry. The largest software producers and IT service providers are headquartered
in Mazowieckie. International high-tech concerns have decided to establish their R&D centres
in Mazowieckie.
Other notable examples of companies based in the Mazowieckie region include Bioton,
the largest Polish biotechnology company (Macierzysz, Ozarow Mazowiecki) and Celon
Pharma (Lomianki near Warsaw).
74
www.pmrcorporate.com
Poland: analysis of selected economic sectors
Largest companies from the high-tech sector operating in Mazowieckie voivodship
PMR047
Company
Hewlett-Packard Polska
IBM Polska
Computerland
NTT System
Fujitsu Siemens Computers
City
Warsaw
Warsaw
Warsaw
Warsaw
Warsaw
Samsung Electronics Polska
Warsaw
ABG Ster Projekt
Softbank
Microsoft
Accenture
Cisco Systems
Sun Microsystems
SAP Polska
General Electric Aircraft Engines
Microsoft
Avon
Cederroth
Humax
LG Electronics
Oracle
SAS Institute
Warsaw
Warsaw
Warsaw
Warsaw
Warsaw
Warsaw
Warsaw
Warsaw
Warsaw
Garwolin
Radzymin
Warsaw
Ciechanow
Warsaw
Warsaw
Business profile
New technology services; distribution of hardware;
Development of software and distribution of hardware
Development of software
Production and distribution of hardware
Implementation services
Development of software for digital satellite, cable, and terrestrial TV
receivers complying with DVB (Digital Video Broadcasting) standards
Development of software
Development of software
Development of software
Integration and implementation services
Provision of network technologies and solutions
Implementation, training and maintenance services
Implementation and consultancy services
Centre of aircraft engine design
Centre of software engineering
Regional R&D laboratory
R&D centre
R&D centre
R&D centre
R&D centre
R&D centre
Source: PMR, 2006
www.pmrpublications.com
3.4.2. R&D institutions in the high-tech sector
The Warsaw agglomeration is home to 230 of approximately 736 scientific institutions in
Poland (including 52% of all scientific units of the Polish Academy of Sciences and 47% of
R&D units in Poland).
Select business-related and science-research institutions supporting the high-tech
sector:
n
Academic Incubators for Enterprises
n
Warsaw Technology Park (www.technoport.pl)
n
Institute of Biotechnology and Anti-Biotics (www.iba.waw.pl)
n
Institute of Nuclear Chemistry and Technology (www.ichtj.waw.pl)
n
Ignacy Moscicki Industrial Chemistry Research Institute (www.ichp.pl)
n
Institute of Electrical Engineering (www.iel.waw.pl)
n
Institute of Power Engineering (www.ien.com.pl)
n
Institute of Nuclear Energy (www.iea.cyf.gov.pl)
n
Sylwester Kaliski Institute of Plasma Physics and Laser Microfusion (www.ifpilm.waw.pl)
n
Institute of Aviation (www.ilot.edu.pl)
n
Institute of Mathematical Machines (www.imm.org.pl)
n
Institute of Precision Mechanics (www.imp.edu.pl)
n
Institute of Applied Optics (www.inos.pl)
n
Institute of Electron Technology (www.ite.waw.pl)
n
Institute of Electronic Materials Technology (www.itme.edu.pl)
n
Tele and Radio Research Institute (www.itr.org.pl)
www.pmrcorporate.com
75
Poland: analysis of selected economic sectors
n
Tekoma Research and Development Centre for Machine Technology and Design
(www.tekoma.pl)
n
PIAP Industrial Research Institute for Automation and Measurements (www.piap.pl)
n
Industrial Institute of Electronics (www.pie.edu.pl)
n
Institute Research Telecommunications (www.pit.edu.pl).
3.4.3. Workforce availability
The Mazowieckie voivodship has the largest student and researcher population in Poland.
Over 370,000 students are taught by 12,500 academic staff in the region. 27% of all persons
employed in the R&D sector are residents of the Mazowieckie region. The largest number
of all students in this region (close to 278,000) study in Warsaw, which has the largest
concentration of various tertiary schools (77). Every year, Warsaw has approximately 50,000
graduates of third-level schools.
Number of university researchers: Warsaw vs. other regions
PMR049
Warsaw
22%
Other regions
78%
www.pmrpublications.com
Source: GUS, 2006
Number of scientific institutions: Warsaw vs. other regions
PMR050
Warsaw
25%
Source: GUS, 2006
Other regions
75%
www.pmrpublications.com
The Warsaw University of Technology is the largest school of that type in the region. It has over
31,000 graduates each year. Similarly, the Warsaw University and Cardinal Stefan Wyszynski
University teach students at many technical specialisations.
76
www.pmrcorporate.com
Poland: analysis of selected economic sectors
Schools based in Warsaw are at the top of national rankings of technical schools. The
Warsaw University won the first prize in the TopCoder international ranking of IT professionals,
coming out ahead of Massachusetts Institute of Technology, Stanford University and California
Institute of Technology.
The computer science specialisation is one of the most popular in the Mazowieckie
voivodship – it is taught at 25 tertiary schools.
Mazowieckie’s unemployment figure is one of the lowest in Poland. At the end of June 2006,
Select tertiary schools offering technical specialisations
in Mazowieckie voivodship
PMR051
School
Warsaw University
Warsaw University of
Technology
Cardinal Stefan Wyszynski
University
Polish Japanese Institute of
Information Technology of
Warsaw
Selected specialisations
astronomy
biology
biology and geology
biotechnology
chemistry
physics
geography
geology
computer science
computer science and econometrics
mathematics
architecture
automatics and robotics
biotechnology
chemistry
computer science
electrical and computer engineering
electronics and telecommunications
electrical engineering
technical physics
computer science
computer science, automatics and robotics,
electronics and telecommunications
chemical and process engineering
material engineering
environmental engineering
mathematics
mechanics and mechanical engineering
metallurgy
chemical engineering
computer science and econometrics
mathematics
Number of students
(annual)*
55,200
30,800
16,000
computer science
* The data encompasses the total number of students enrolled at a given school,
not just in select specialisations; data to the nearest thousand.
Source: PMR, 2006
www.pmrpublications.com
the unemployment rate in the voivodship was 12.8%. Nearly 307,000 people were jobless;
6.2% of the unemployed have university education. In September 2006, the unemployment
rate for Warsaw was 4.9%, dropping by 15% from the figure for September 2005; as expected,
it was the lowest figure of all the Polish voivodships. The number of the unemployed in
Warsaw was approximately 52,000 persons.
www.pmrcorporate.com
77
Poland: analysis of selected economic sectors
3.4.4. Costs of doing business
3.4.4.1. Salaries and wages
In the first three quarters of 2006, monthly salary in the sector of enterprises averaged
PLN 3,254 (€834) and was 26% above the national average.
In the first nine months of 2006, the average gross monthly pay in the sector of
enterprises based in Warsaw was the highest in Poland.
Gross pay (PLN) in Mazowieckie voivodship,
by select positions, spring 2006
Average
9,400
Production Manager
8,941
Production Planning Specialist
3,762
Maintenance Manager
7,125
Maintenance Specialist
5,644
Automation Service Engineer
4,227
Production Assistant
2,991
Shift Leader
5,839
Handlers / Operators Foreman
3,738
Mechanic
3,172
Electrician
4,053
Electrical Fitter
3,485
Locksmith
2,944
Turner
2,389
Solderer
1,878
Fitter
1,532
Production Operator
2,883
Fork Lift Operator
2,656
Quality Control Worker
3,219
Floor Hand
2,012
Cleaning Staff
1,468
Engineering
Engineering Manager
11,163
Process Engineering Specialist
5,288
Product Engineer
4,120
Designer / Drafter
5,192
Quality assurance
Quality Manager
8,371
Quality Specialist
5,685
Laboratory Supervisor
7,679
Laboratory Technician
3,388
R&D Specialist
6,880
R&D Assistant
3,615
Production
Position
Production Director
R&D
PMR052
Source: AG TEST Human Resources, “Salary report – Spring 2006”
78
www.pmrpublications.com
www.pmrcorporate.com
Poland: analysis of selected economic sectors
3.4.4.2. Office space rental costs
In Warsaw, the office space rental costs are the highest in Poland. According to the report
released by Jones Lang LaSalle, the highest rental rates stabilised around €18-21/m2/month
for office space in the centre of Warsaw and €13-15/m2/month outside the city centre. In the
case of the best office buildings placed in the centre of Warsaw, transaction rental rates fall
in the range of €17-20/m2/month. Outside the city centre, the highest and average rental
rates average €13-15/m2 and €12-14/m2 a month, respectively. On average, service charges
amount to €4-5/m2 a month in the city centre and €3-4/m2 a month in buildings outside the
city centre.
3.4.4.3. Warehouse space rental costs
According to Cushman&Wakefield, rental rate for warehouse space in Warsaw range from
€3.3/m2 to €5.5/m2, depending on district (report released early in 2006).
3.4.4.4. Transport availability
Warsaw-Okecie international airport is located 10 km from the main city centre. Currently,
it is the largest airport in Poland. Talks are now underway concerning a second airport for
Warsaw. Most likely, military airports will be adapted for that purpose; the new airport will be
probably located north or west of Warsaw.
The Warsaw railway node is the place where national and local railways converge.
Depending on technical conditions and traffic safety, railway lines are divided as follows:
trunk lines, class 1 lines, class 2 lines and class 3 lines. The lines relevant for the Mazowieckie
region are as follows:
n
Three national trunk railway lines covered by AGC and AGTC agreements:

E20 (nos. 2,3) (Berlin) – Kunowice – Poznan – Warsaw – Terespol – (Moscow)
– AGC, AGTC

E65 (nos. 4,9) Gdansk – Warsaw – Katowice (CMK) – AGC, AGTC

E75 (nos. 6, 449) Warsaw – Bialystok – Kuznica Bialostocka – (Sankt Petersburg)
– AGC.
n
Class 1 railway line scheduled to be covered by AGC and AGTC agreements: E28 (no. 7)
Warsaw – Pilawa – Deblin – Lublin – Dorohusk
n
National trunk railway line and class 1 railway line not covered by international
agreements:

no. 1 Warsaw – Koluszki – Czestochowa – Katowice (trunk line)

no. 8 Warsaw – Radom – Krakow (class 1).
3.4.5. Availability of investment sites
Warsaw Technology Park
In order to create conditions conducive for innovative firms to get established and develop in
Warsaw, the Warsaw Technology Park will be set up in Warsaw (www.technoport.pl).
It will cover an area of 45 ha where 300,000 m2 of useable area will be built, including
laboratories, production space, office space, shared infrastructure (conference halls, car parks
etc) and accompanying service space.
www.pmrcorporate.com
79
Poland: analysis of selected economic sectors
n
n
The project is structured as follows:
Phase 1, 2006-2007 – the development of scientific consortium, site clean-up, obtaining
additional funds for the development of an incubator, the development of a 5,000 m2
incubator, engaging partners, drafting applications for EU funds, beginning of the next
phase of the WTP project.
Phase 2, until 2008 – two-stage development of the entire site, launch of on-site
services.
Particularly desired and preferred investment projects will pertain to the following
areas:
n
IT science and telecommunications
n
biotechnology and medicine
n
nanotechnologies and new materials
n
mechatronics
n
optoelectronics
n
renewable source of energy
n
banking and insurance
n
logistics and transport
n
state and public security.
Entrepreneurs will be able to use real estate and technical infrastructure located in the
park, as well as laboratories and state-of-the-art research equipment. They will be able to
benefit from the transfer of state-of-the-art technologies and use R&D results in developing
new products.
3.5. Pomorskie voivodship
3.5.1. Largest high-tech companies in the region
Due to a high number of IT companies active in the region, the Pomorskie voivodship is
referred to as the “tri-city silicon valley”. Large IT market players recognised on the market
are headquartered in Pomorskie, including Prokom Software, a major software producer in
Poland which is seated in Gdynia, employing 1,350 people.
According to PAIiIZ, approximately 60% of all high-tech companies operating in the
Pomorskie region are located in the Tri-City (approx. 100 companies), 15 – in the area of
Slupsk, 9 – in the area of Malbork, 7 – in the area of Wejherowo and 7 – in the area of
Tczew.
Many manufacturers of electronic sub-assemblies operate in the Pomorskie region,
particularly in the area of the Tri-City; these companies can act as sub-suppliers for high-tech
producers.
Gdansk is also home to Eurux, A&A Biotechnology of Gdynia, which are major
biotechnology companies in Poland.
80
www.pmrcorporate.com
Poland: analysis of selected economic sectors
Shares of voivodships in revenues of the Polish IT sector, 2005
PMR053
Kujawsko-Pomorskie
1.0%
Wielkopolskie
3.5%
Pomorskie
5.2%
Other
6.0%
Slaskie
6.5%
Malopolskie
7.5%
Mazowieckie
60.2%
Dolnoslaskie
10.0%
www.pmrpublications.com
Source: Teleinfo500, 2006
Select companies from the high-tech sector operating in Pomorskie voivodship
PMR054
Company
Atena
Blue Media
Comex
Compuware
DGT
Grand
Humax
Intel Technology Poland
Lufthansa Systems
Optix Polska
Platan
Pretor
Prokom Software
Softbank Serwis
Unisoft
Vector
Young Digital Planet
Workforce
City
in 2005
Sopot
181
Sopot
Gdansk
30
Gdansk
80
Straszyn
170
Sopot
50
Pruszcz Gdanski
Gdansk
302
Gdansk
138
Gdynia
86
Sopot
76
Gdansk
26
Gdynia
1,357
Gdansk
154
Gdynia
200
Gdynia
227
Gdansk
290
Business profile
Development of software
Products and services integrating GSM technology and financial services
Uninterruptible power supply systems for users, equipment and IT systems
Software development centre
Production of telecommunications software
Integrated hardware solutions for banks, offices and businesses
Software development centre
R&D in data transmission technologies
Development of software
Development of software
Production of data transmission systems
Development of hardware
Production and distribution of software
Development of software
Development of software
Development of hardware telecommunications
Development of software
“-” – no data
Source: Teleinfo500, 2006
www.pmrpublications.com
3.5.2. R&D institutions in the high-tech sector
n
Gdansk Science and Technology Park (www.strefa.gda.pl)
n
Pomorski Science and Technology Park (www.ppnt.pl)
n
Regional Council of the Federation of Engineering Associations – NOT (www.not.slupsk.pl)
n
Gdansk Centre for Technology Transfer (www.ctt.gda.pl)
n
Institute of Computer Science of the Polish Academy of Sciences (www.ipipan.waw.pl)
n
Institute of Fluid-Flow Machinery of the Polish Academy of Sciences (www.imp.pg.gda.pl).
www.pmrcorporate.com
81
Poland: analysis of selected economic sectors
3.5.3. Workforce resources
Pomorskie has the highest ratio of the population with tertiary education in Poland. In the
2005/2006 academic year, a total of nearly 98,000 students studied at various third level
schools across the region (up by 2.3% from the preceding academic year), while higher school
graduates numbered 19,000. Students of technical schools account for 18% of all students in
the region.
In the Tri-City, student population stands at 82,000; each year, 15,000 individuals
graduate from local technical schools. Gdansk has the largest ratio of academic teachers per
one thousand students in Poland.
The Gdansk University, which is the largest higher school in the Pomorskie region, and
the Gdansk University of Technology offer a wide range of technical programmes.
Engineering and technical specialisations are the most popular ones in secondary
vocational schools, with almost 13,000 students attending these courses in the 2005/2006
school year.
Number of students in Pomorskie voivodship
by type of tertiary school, 2005/2006
PMR055
Other
33%
Tertiary pedagogy
schools
8%
Source: GUS, 2006
82
Tertiary economic
schools
10%
Universities
31%
Tertiary technical
schools
18%
www.pmrpublications.com
www.pmrcorporate.com
Poland: analysis of selected economic sectors
Select tertiary technical schools in Pomorskie voivodship
PMR056
Select specialisations
Gdansk University
Gdansk University
of Technology
Gdynia Maritime University
archaeology
biology
biotechnology
chemistry
physics
geography
computer science
computer science and econometrics
mathematics
oceanography
environmental protection
architecture
biotechnology
electronics and telecommunications
electrical engineering
power engineering
technical physics
computer science
material engineering
environmental engineering
mathematics
mechanics and mechanical
engineering
environmental protection
chemical engineering
environmental protection technology
electronics
electrical engineering
mechanics and mechanical
engineering
navigation
transport
Source: PMR, Regional Investor Support Centre, 2006
Number of
students
(annual)
Number of
students
(annual)
29,311
5,582
17,634
2,168
7,607
1,790
www.pmrpublications.com
Number of students of select specialisations at tertiary schools
in Pomorskie voivodship
PMR057
Number of tertiary
schools offering
given specialisation
Automatics and robotics
1
Biotechnology
2
Chemical engineering
1
Computer science
3
Production engineering
2
Environmental engineering
1
Material engineering
1
Mechanics and mechanical engineering
2
Physics
3
Transport
2
Oceanography
1
Environmental protection science
3
Electronics and telecommunications
2
“-” – no data
Source: Regional Investor Support Centre, 2006
www.pmrcorporate.com
Number of
students
(annual)
759
754
541
3,241
5,533
473
366
2,695
909
647
428
1,925
2,109
Number of
graduates
(annual)
80
146
41
380
569
157
304
70
94
35
407
249
www.pmrpublications.com
83
Poland: analysis of selected economic sectors
As at the end of October 2006, unemployment in the region was 15.6% (127,000). In
September 2006, the percentage of the unemployed with university education was 4.8%. The
unemployed with basic vocational education (32%) represented the largest proportion of the
jobless.
Unemployment in the Tri-City, September 2006
PMR058
Unemployment rate
Gdansk
Gdynia
Sopot
6.7%
6.3%
5.3%
Number
of the unemployed
12,873
6,616
918
Source: Gdansk Statistical Office, 2006
Unemployed
with tertiary education
1,533
822
149
www.pmrpublications.com
3.5.4. Costs of doing business
3.5.4.1. Salaries and wages
In October 2006, the average gross monthly pay in the sector of enterprises was PLN 2,684
(€688), i.e. slightly above the average national wage), which was 4.7% higher than in the
corresponding period in 2005.
In the first nine months of 2006, the average gross pay in the sector of enterprises in
Gdansk was among the highest in Poland, amounting to close to PLN 3,175 (€814). The only
cities higher with wages were Warsaw and Katowice.
84
www.pmrcorporate.com
Poland: analysis of selected economic sectors
Gross pay (PLN) in Pomorskie voivodship by select positions, spring 2006
PMR059
R&D
Quality assurance Engineering
Production
Position
Average
Production Director
8,684
Production Manager
5,481
Production Planning Specialist
3,513
Maintenance Specialist
3,953
Shift Leader
3,728
Handlers / Operators Foreman
2,818
Mechanic
2,653
Electrician
3,067
Fitter
3,288
Production Operator
2,369
Fork Lift Operator
2,255
Packer
2,179
Floor Hand
2,505
Cleaning Staff
1,317
Process Engineering Specialist
5,010
Quality Manager
4,733
Quality Specialist
4,089
Laboratory Supervisor
2,828
Laboratory Technician
2,444
R&D Manager
3,975
R&D Specialist
2,406
Source: AG TEST Human Resources, “Salary report – Spring 2006”
www.pmrcorporate.com
www.pmrpublications.com
85
Poland: analysis of selected economic sectors
3.5.4.2. Office space rental costs
Office space rental costs in the Tri-City, 2006
PMR060
City
Average office space rental cost
Tri-City (Gdansk,
Sopot, Gdynia)
2
2
€12-15/m + €2.5-4/m (maintenance charge) a month
€8-12/m2 + €2.5-4/m2 (service charge) a month
Source: Regional Investor Support Centre, 2006
Class of office
space
A
B
www.pmrpublications.com
3.5.4.3. Transport availability
Gdansk is situated where major roads converge. E28, E75 and E77 European routes meet
within the city. It is also where DK1 national road; additionally, DK7 and S6 (a by-pass for the
Tri-City) intersect. This road network is complemented by 6 regional roads, including DW468,
which is the main transportation artery for the Tri-City. The extension of the road network in
the Pomorskie voivodship is underway.
The Pomorskie voivodship has two commercial ports – Gdansk and Gdynia, and an
international airport offering direct flights for passengers going to Warsaw, Frankfurt, Munich,
Hamburg, Copenhagen, Stockholm, Oslo, Dublin, Liverpool and London, as well as chartered
flights.
Top flight destinations from Lech Walesa Airport of Gdansk:
n
Denmark: Copenhagen
n
Germany: Dortmund, Frankfurt am Mein, Frankfurt Hahn, Hamburg, Köln/Bonn, and
Munich
n
Ireland: Cork, Dublin, Shannon
n
Norway: Oslo
n
Poland: Krakow, Warsaw, Wroclaw
n
Sweden: Stockholm
n
UK: Edinburgh, Glasgow, Liverpool, London,
3.5.5. Availability of investment sites
Office space
According to the report released by Jones Lang LaSalle, the largest proportion of all office
space projects completed in the Tri-City (48%) are offered in Gdansk, and represents an area
of 110,000 m2. In June 2006, the ratio of unleased office space was 5.9%. Also in Gdynia,
a decisive majority of the 90,000 m2 of available office space was leased out.
In June 2006, the total area of office space which was at the stage of planning amounted
to 135,000 m2.
86
www.pmrcorporate.com
Poland: analysis of selected economic sectors
Warehouse space
There are no large logistics centres in the Pomorskie voivodship. Located in Pruszcz Gdanski,
the largest logistics centre has an area of 10,000 m2. Entities of various types, including
enterprises and private individuals, offer warehouses for sale or lease, most of which have an
area of 1,000-2,000 m2 and are in average technical condition.
Pomorska Special Economic Zone and Gdansk Science
and Technology Park
The Pomorska Special Economic Zone is located within the Pomorskie voivodship; it is where
enterprises can conduct business activities on preferential terms.
The Pomorska SEZ includes land located in Zarnowiec (Krokowa and Gniewino
communes), Tczew, Gdansk, Kwidzyn, Malbork, Starogard Gdanski, Sztum, Czluchow and
Chojnice. In December 2006, it was resolved that the zone would be enlarged to include an
area of close to 143 ha. After the enlargement, the zone’s area would total 677 ha.
The Pomorska Special Economic Zone includes the Gdansk Science and Technology Park
(www.strefa.gda.pl) which is located in Gdansk, near the Gdansk University of Technology,
the Gdansk University and the Medical University of Gdansk.
The operating programme for the Park ensures convenient conditions for R&D
laboratories and high-tech companies in the following industries in the Park:
n
IT and telecommunications technologies
n
functional materials and nanotechnologies
n
environmental protection
n
biotechnology, food and pharmaceutical chemistry.
Currently, the buildings comprising the park are being adapted. In mid-2008, 19,000 m2
of office space and office/technology space will be made available. Additionally, the following
institutions will be located within the Park:
n
Pomorze Centre of Advanced Technologies
n
an incubator for technology companies
n
Centre for Technology Transfer
n
a conference and training centre
n
Foundation of Pomeranian Innovative Network Brainet
n
seat of the Pomorska Special Economic Zone.
The Pomorski Science and Technology Park, Gdynia-Redlowo
The Park covers an area of 6 ha in the centre of Gdynia. The land is appropriately developed
to meet the requirements of modern enterprises. In June 2006, 9,000 m2 of new office and
laboratory space, as well as conference and exhibition halls, prototype shops, leisure space
and economic resources, were made available to businesses. Currently, the Park does not
have any office space available. New buildings will be made available after the completion of
the repair in the first quarter of 2007.
The Pomorski Science and Technology Park is focused on high-tech projects, mainly
in biotechnology, environmental protection, computer science and industrial design. Firms
operating in these industries are offered free-of-charge advice on such topics as finance, bookkeeping, law, EU subsidies, as well as free-of-charge Internet access.
www.pmrcorporate.com
87
Poland: analysis of selected economic sectors
3.6. Slaskie voivodship
3.6.1. Largest high-tech companies in the region
The Slaskie voivodship has a large concentration of high-tech companies, in particular from the
IT industry (Poland’s fourth largest concentration of IT firms). According to the data released
by Teleinfo500, IT companies operating in this region generate over 6% of the IT sector’s
revenues in Poland.
The largest developers of software in Poland are based in the region; many globally
recognized concerns have established their R&D centres in the Slaskie region.
Ontrack, a company specialised in data recovery, located its software development
centre in Katowice. It is the largest data recovery laboratory in Central and Eastern Europe.
Select companies from the high-tech sector operating in Slaskie voivodship
PMR061
City
Gliwice
Katowice
Tychy
Zabrze
Katowice
Katowice
Knurow
Chorzow
Gliwice
Myslowice
Gliwice
Czestochowa
Bielsko-Biala
Katowice
Katowice
Czestochowa
Katowice
Bielsko-Biala
Bielsko-Biala
Company
Wasko
SPIN
Wilk Elektronik
Elzab
ZETO
COIG
Upos System
BPSC
Junisoftex
Logotec Engineering Group
Autorobot Strefa Sp. z o.o.
Process Electronic
Avio Polska
Bombardier
Ontrack
TRW Automotive
Rockwell Automation
Rekord Systemy Informatyczne
Wind Telecom
* planned to be opened in mid- 2007
Source: PMR, Teleinfo500, 2006
88
Business profile
Development of software, distribution of data communications equipment
Development of software
Production of data communications equipment
Production of data communications equipment
Development of software
Development of software
Development of hardware and software
Development of software
Development of software for the telecommunications industry
Development of software
Industrial automatics
R&D centre, electronic sector
R&D centre, aircraft engine design
R&D centre
Software development centre
Engineering centre
Software development centre*
Development of software
Development of software
www.pmrpublications.com
www.pmrcorporate.com
Poland: analysis of selected economic sectors
3.6.2. R&D institutions in the high-tech sector
R&D institutions supporting the development
of advanced technologies in Slaskie
PMR062
Institution
Silesian Centre of Advanced
Technologies (www.sczt.org.pl)
Institute of Theoretical and
Applied Computer Science of
the Polish Academy of
Sciences (www.iitis.gliwice.pl)
Institute of Control Systems
(www.iss.pl)
Activity
Association of Silesian universities, the Polish Academy of
Sciences institutes, industry institutes, R&D units, technology
parks and manufacturers.
The activities of the Silesian Centre of Advanced Technologies
are designed to tighten cooperation between the research and
development institutions based in the Slaskie region and the
economy;
Research in computer science
R&D, application and implementation work in the following
areas:
 network IT systems and on-line services
 information security
 automation systems
 intelligent automation systems for buildings
 medical systems for the examination of hearing and balance
Source: PMR, 2006
www.pmrpublications.com
3.6.3. Workforce availability
The Slaskie region is the second most populated region and labour market in Poland. The
number of companies operating within Slaskie is third highest in Poland, after the Mazowieckie
and Wielkopolskie regions. Slaskie is also Poland’s third largest concentration of people
employed in the R&D sector (10% of all the employed).
There are 47 tertiary schools in the Slaskie region, which teach over 200,000 students,
including 31% at technical specialisations. The most important technical schools of the
region are: the Silesian University of Technology in Gliwice and the Czestochowa University
of Technology. The Silesian University, which is the largest tertiary school in the region,
offers students the following specialisations: computer science, physics, and biotechnology.
Production engineering, mechanics and mechanical engineering and computer science are the
most popular technical specialisations for students, offered by universities.
www.pmrcorporate.com
89
Poland: analysis of selected economic sectors
Select tertiary technical schools in Slaskie voivodship
PMR063
School
Czestochowa University
of Technology
Silesian University of
Technology in Gliwice
Silesian Medical
Academy in Katowice
Silesian University
in Katowice
University of
Bielsko-Biala
Selected specialisations
electronics and telecommunications
electrical engineering
technical physics
computer science
computer science and econometrics
material engineering
environmental engineering
mathematics
mechanics and mechanical engineering
metallurgy
environmental protection science
management and production engineering
automatics and robotics
biotechnology
chemistry
electronics and telecommunications
electrical engineering
power engineering
technical physics
mining and geology
computer science
chemical and process engineering
material engineering
environmental engineering
mathematics
mechanics and mechanical engineering
metallurgy
environmental protection
chemical engineering
management and production engineering
biotechnology
biology
biotechnology
chemistry
physics
geography
computer science
mathematics
interdepartmental individual nature studies
environmental protection
automatics and robotics, computer
science, environmental engineering,
mechanics and mechanical engineering,
management and production engineering
* The data encompasses the total number of students enrolled at a given school,
not just in select specialisations.
Source: PMR, 2006
90
Number of
students
(annual)*
Number of
graduates
(annual)*
18,000
4,400
32,000
5,250
6,272
824
39,376
3,711
1,351
www.pmrpublications.com
www.pmrcorporate.com
Poland: analysis of selected economic sectors
Number of students of select technical specialisations
in Slaskie voivodship
PMR064
Specialisation
Production engineering and management
Mechanics and mechanical engineering
Computer science
Electrical engineering
Engineering and environmental protection
Physics
Environmental engineering
Automatics and electrical engineering
Transport
Material engineering
Biotechnology
Chemical and process engineering
Source: Regional Investor Support Centre, 2006
Number of students (annual)
915
873
783
564
397
348
347
334
224
107
68
27
www.pmrpublications.com
Despite the fact that unemployment in the region is among the lowest in Poland and continues
to drop, there are Silesian counties where the unemployment rate is over 20%. As at the
end of September 2006, Katowice had the lowest unemployment rate (6.3%); on average,
unemployment in the region was 13.5% (244,300). Individuals with higher education account
for a little more than 6% of all the unemployed in the region, while in the case of persons
with secondary education, this proportion is almost 30%.
3.6.4. Costs of doing business
3.6.4.1. Salaries and wages
Salaries paid to workers in the Slaskie region are among the highest in Poland. In the first nine
months of 2006, the average gross salary in the industrial sector in the Slaskie region was
PLN 3,043 (€780), which was 16.4% higher than the national average. Higher salaries could
be earned only in the Mazowieckie voivodship.
In Katowice, labour costs are among the highest in Poland (only Warsaw has higher
labour costs). In the first nine months of 2006, the average gross monthly pay in the sector of
enterprises was PLN 3,478 (€892), i.e. 1% less than in Warsaw.
www.pmrcorporate.com
91
Poland: analysis of selected economic sectors
Gross pay (PLN) in Slaskie voivodship, by select positions, spring 2006
R&D
Quality assurance Engineering
Production
PMR065
Position
Production Director
Average
15,527
Production Manager
7,674
Production Planning Specialist
3,750
Maintenance Manager
7,655
Maintenance Specialist
4,752
Automation Service Engineer
4,066
Production Assistant
2,855
Shift Leader
5,643
Handlers / Operators Foreman
3,307
Mechanic
3,454
Electrician
3,230
Locksmith
3,180
Turner
2,426
Solderer
2,172
Production Operator
2,322
Fork Lift Operator
2,201
Floor Hand
2,153
Cleaning Staff
1,818
Engineering Manager
9,818
General Technologist
7,784
Product Engineer
4,879
Designer / Drafter
4,809
Quality Manager
6,974
Quality Specialist
4,501
Laboratory Supervisor
6,745
Laboratory Technician
2,966
Environment Protection Specialist
5,136
R&D Manager
8,135
R&D Specialist
4,209
R&D Assistant
2,730
Source: AG TEST Human Resources, “Salary report – Spring 2006”
92
www.pmrpublications.com
www.pmrcorporate.com
Poland: analysis of selected economic sectors
3.6.4.2. Office space rental costs
In Katowice, office space rental costs are lower than in Krakow or Warsaw. According to the
data released by Metropolis Nieruchomosci Komercyjne, at the beginning of December 2006
the asking rental rate of class A office space was around €19/m2+utilities. The rates, however,
are negotiable. They can be reduced even by 30% of the asking price; the rates depend on
the market position a potential tenant, leased area and term of lease. As a rule, contracts are
concluded for specific duration (a minimum of three or five years).
Rental rate of class B office space is about €10-12/m2+utilities. In this case, tenants are
required to cover the costs of the use of “common areas”, which increases the base rental
rate by 20-30%. Generally, rental rates are non-negotiable. Contracts are concluded for both
specified and unspecified periods.
3.6.4.3. Warehouse space rental costs
According to Cushman&Wakefield, the cost of renting warehouse space outside of Warsaw
amounts to €3-4/m2 a month.
3.6.4.4. Transport access
Transport infrastructure in the Slaskie region is one of the best in Poland; the region has the
highest density of roads in Poland.
The Slaskie region is where the following two important international and national
routes intersect:
n
A1 route (Gdansk-southern border of Poland in Cieszyn)
n
A4 route (Zgorzelec-Wroclaw-Przemysl, southern border of Poland), which has motorway
sections from Katowice to Krakow and from Wroclaw to Gliwice.
The region has an airport in Pyrzowice and a river port in Gliwice, which provides
a convenient transportation route to Szczecin via the waterway.
3.6.5. Availability of investment sites
Office space
Katowice is the only city in the Silesian agglomeration where large office buildings are built.
According to the data released by Metropolis Nieruchomosci Komercyjne, at the end of
November 2006, Katowice had a stock of 44,000 m2 of class A office space, of which 1,000 m2
were available for lease immediately. Class B+ office buildings had 4,000 m2 of office space for
lease. Including class B space, Katowice had 12,000 m2 of office space available in a number
of buildings within the city. Until the end of the first quarter of 2007, approximately 6,500 m2
of office space will be commissioned; 43,000 m2 are still under construction.
Two buildings: Chorzowska 50 and Altus will be included in the Katowice Special
Economic Zone from the beginning of January 2007, so investors operating in them will be
entitled to additional public aid. In both these buildings, there is hardly any unoccupied office
space available.
In order to increase the attractiveness of the region for BPO investments, the authorities
of the Katowice Special Economic Zone plan to add new buildings to the zone.
www.pmrcorporate.com
93
Poland: analysis of selected economic sectors
Warehouse space
The Silesia agglomeration is one of the largest storage space centres in Poland. According to
the data released by Cushman&Wakefield, in 2006, the total supply of storage space in Upper
Silesia is over 240,000 m2. Over 157,000 m2 of storage space was under construction, of
which 73,000 m2 had already been leased in Q3 2006.
Katowice Special Economic Zone
The Katowice Special Economic Zone is located within the Slaskie voivodship (www.ksse.
com.pl); it is the largest of the 14 economic zones in Poland. In total, the Katowice Special
Economic Zone occupies land of 1,156 ha comprising 35 different sites. Such a structure of the
zone enables investors to choose the most convenient location.
The Katowice SEZ comprises four sub-zones:
n
Gliwice sub-zone
n
Jastrzebie-Zory sub-zone
n
Sosnowiec-Dabrowa Gornicza sub-zone
n
Tychy sub-zone.
By locating investments in the zone, investors can apply for public aid in the form of tax
breaks. It is planned that Gliwice Technopark Science and Technology Park (www.technopark.
gliwice.pl) will be created within the Katowice SEZ.
The Gliwice Technopark is a joint investment of the municipality of Gliwice, the Silesian
University of Technology and KSSE SA. It will be developed on the basis of an unfinished
technology hall of the Silesian University of Technology; it will consist of an area of 600 m2,
intended for production, and 2,000 m2 of high-class office space.
The key objective of Technopark will be to disseminate information on the most recent
technology developments and access to them, and, in particular, to intensify the transfer of
technology from the Silesian University of Technology and R&D units in the Silesian region to
SMEs. These enterprises will use the agency offered by Technopark to access technologies,
find laboratories, universities and scientists supporting technology application in SMEs. They
will also receive assistance in obtaining funds from the European Union.
Sosnowiec Science and Technology Park
The Sosnowiec Science and Technology Park (www.um.sosnowiec.pl) is located in southern
Sosnowiec. Its main task is to create conditions conducive for entrepreneurs to conduct
innovative business activities and to provide them with access to innovation through the
following:
n
preparing suitable buildings, premises and sites equipped with the required technical
infrastructure
94
n
creating a platform for knowledge and technology transfer between science units and
entrepreneurs and developing forms of cooperation satisfying to both parties
n
providing services concerning utility supplies with appropriate parameters and in
sufficient quantity
www.pmrcorporate.com
Poland: analysis of selected economic sectors
n
enabling the use of diverse business services, including:

consultancy

financial and book-keeping

legal assistance

patent law

market analysis and marketing surveys

creating favourable conditions of financial support for new projects, including
EU funds.
The offer of the Sosnowiec SEZ is mainly addressed to the following industries:
pharmaceutical industry, medical equipment, automobile and automotive industry, machine
engineering industry, chemical industry, construction, computer science and geothermics.
www.pmrcorporate.com
95
Poland: analysis of selected economic sectors
4. Automotive sector
Automotive sector – selected locations
PMR114
Legnica
Walbrzych
Wroclaw
Jelcz-Laskowice
Gliwice
Sosnowiec
Tychy
Bielsko Biala
Source: PMR, 2006
96
www.pmrpublications.com
www.pmrcorporate.com
Poland: analysis of selected economic sectors
4.1. Traditions of the automotive sector
4.1.1. Origins of the automotive sector
The origins of the automotive sector in Poland date back to the period between the First and
the Second World Wars; the first company in the automotive sector was Centralne Warsztaty
Samochodowe (CWS), central car works, of Warsaw.
Established immediately after the end of the First World War, CWS was the company
where the first Polish passenger car was designed; its production was launched in 1925
and continued until 1932 when a licence agreement for manufacturing Fiat 508 was
concluded. That car became the most popular passenger vehicle in Poland in the 1930s.
It was manufactured by CWS’s Warsaw plant, which in 1928 was renamed Panstwowe
Zaklady Inzynierii (PZInz), a state-owned engineering plant. Two years later, Ursus, a truck
manufacturer producing vehicles mainly for the army was merged with PZInz. Soon thereafter,
PZInz expanded its range of products to include motorcycles, and the Ursus plant launched
the production of buses under a licence from Saurer, a Swiss company.
In 1933-1934, an advanced plant was constructed at PZinz’s site, which was named
Fabryka Samochodow Osobowych i Polciezarowych (a passenger car and van plant) where
a number of vehicles were produced under a licence from Fiat. Until the outbreak of the
Second World War, a number of passenger car and truck models were manufactured at that
plant.
4.1.2. 1945-1989
After the end of the Second World War, the entire Polish economy, including the automotive
industry, had to be rebuilt from scratch. In 1945-1989, numerous plants and automotive
centres were built in Poland, the major of which were as follows:
n
Fabryka Samochodow Ciezarowych (a truck company) of Lublin
n
Fabryka Samochodow Ciezarowych (a truck company) of Starachowice
n
Fabryka Samochodow Malolitrazowych (a small-engine car company) of Bielsko-Biala
and Tychy
n
Fabryka Samochodow Osobowych (a passenger car company) of Warsaw
n
Fabryka Samochodow Rolniczych (an agricultural vehicle company) of Poznan
n
Fabryka Samochodow Specjalizowanych Polmo-SHL (a specialised vehicle company) of
Kielce
n
Jelczanskie Zaklady Samochodowe (a car manufacturing company) of Jelcz-Laskowice
n
Sanocka Fabryka Autobusow (a bus manufacturing company) of Sanok
n
Wytwornia Silnikow Wysokopreznych Andoria (a diesel engine manufacturing plant) of
Andrychow
n
Wytwornia Sprzetu Komunikacyjnego PZL-Mielec (a transportation equipment
manufacturing plant) of Mielec
n
Zaklad Samochodow Dostawczych FSO (a delivery truck plant) of Nysa
n
Zaklady Mechaniczne Ursus (mechanical works) of Warsaw.
www.pmrcorporate.com
97
Poland: analysis of selected economic sectors
These manufacturers produced a wide range of passenger and delivery vehicles, trucks,
buses and specialised cars. They manufactured both their own car models and vehicles
licensed from foreign automotive companies.
The most popular vehicles manufactured in Poland in 1945-1989
PMR074
Model
Passenger cars
Warszawa, Syrena, Fiat 125p, FSO 125, Polonez
Fiat 126p
Nysa
Delivery cars
Lublin, Zuk
Tarpan
Jelcz
Trucks
Lublin
Star
Autosan, San
Buses
Berliet, Jelcz
Star
Manufacturer
Fabryka Samochodow Osobowych
(a passenger car company) of Warsaw
Fabryka Samochodow Malolitrazowych (a small-engine
car company) of Bielsko-Biala and Tychy
Zaklad Samochodow Dostawczych FSO
(a delivery truck plant) of Nysa
Fabryka Samochodow Ciezarowych
(a truck company) of Lublin
Fabryka Samochodow Rolniczych
(an agricultural vehicle company) of Poznan
Jelczanskie Zaklady Samochodowe
(a car manufacturing company) of Jelcz-Laskowice
Fabryka Samochodow Ciezarowych
(a truck company) of Lublin
Fabryka Samochodow Ciezarowych
(a truck company) of Starachowice
Sanocka Fabryka Autobusow
(a bus manufacturing company) of Sanok
Jelczanskie Zaklady Samochodowe
(a car manufacturing company) of Jelcz-Laskowice
Fabryka Samochodow Ciezarowych
(a truck company) of Starachowice
www.pmrpublications.com
Source: PMR, 2006
4.2. Current situation in the sector
After 1989, as a result of political and economic changes, the Polish automotive sector was
radically transformed. Most of the manufacturers of vehicles and automotive equipment have
been privatised or shut down. As a result of a substantial influx of foreign investments, a good
number of manufacturing centres have been established in Poland.
All the major types of cars are now manufactured in Poland, including passenger
cars, trucks and buses; additionally, Poland is home to numerous makers of car parts and
accessories.
4.2.1. Major manufacturers
As a result of foreign investments, southwest Poland, chiefly the Slaskie and Dolnoslaskie
regions, has become the automotive centre of the country. In recent years, approximately
100 large and medium producers of car parts and accessories were established in these
regions, encouraged by the proximity of both domestic car manufacturers and the ones based
in the Czech Republic and Slovakia. Relatively good transport accessibility of both regions
makes them, potentially, a major supply centre for plants based in Central Europe and certain
Western European countries.
In addition to the aforementioned regions, equipment for the automotive industry and
vehicles are also manufactured in the Wielkopolskie, Mazowieckie, Malopolskie, Lubelskie,
Podkarpackie, Pomorskie and Kieleckie voivodships.
98
www.pmrcorporate.com
Poland: analysis of selected economic sectors
n
The main car manufacturing plants are located in the following Polish cities:
Tychy (Fiat)
n
Gliwice (Opel)
n
Poznan (Volkswagen)
n
Warsaw (FSO)
n
Lublin (Intrall).
Bus manufacturers are also well represented in the Polish market. The major producers
include:
n
MAN (Starachowice, Sady near Poznan)
n
Volvo (Wroclaw)
n
Solaris (Bolechowice near Poznan)
n
Autosan (Sanok)
n
Scania (Slupsk)
n
Solbus (Solec Kujawski)
n
Jelcz (Jelcz-Laskowice).
Recently, Germany-based MAN resolved to build a truck plant in Niepolomice near
Krakow, which will be the largest plant of that type in Poland.
Shares in the passenger car output of Poland, January-October 2006
PMR075
FSO
7.65%
Intrall
0.03%
Volkswagen
14.66%
Fiat
46.35%
Opel
31.30%
Source: Samar, 2006
www.pmrcorporate.com
www.pmrpublications.com
99
Poland: analysis of selected economic sectors
Shares in the delivery car output of Poland, January-October 2006
PMR076
Fiat
27.39%
Intrall
1.37%
Volkswagen
71.25%
Source: Samar, 2006
www.pmrpublications.com
At the same time, many producers of car parts and accessories for the automotive industry are
based in Poland. The major ones include:
n
Delphi (Jelesnia, Blonie, Ostrow Wielkopolski, Gdansk, Tychy, Krosno, Krakow)
n
Faurecia (Grojec, Legnica, Walbrzych, Gorzow Wielkopolski)
n
Lear (Tychy, Mielec, Jaroslaw, Teresin)
n
TRW (Czestochowa, Pruszkow, Czechowice-Dziedzice)
n
Valeo (Czechowice-Dziedzice, Chrzanow, Tychy, Zielonki)
n
Inter Groclin (Grodzisk Wielkopolski).
Poland is also a major European engine manufacturer. The following companies have
established their plants in Poland:
n
Toyota (Walbrzych, Jelcz-Laskowice)
n
Volkswagen (Polkowice)
n
Isuzu (Tychy).
4.2.2. Output and employment
According to our estimates, there were over 1,500 companies active in the automotive
industry in Q1 20064. They employed a total of over 160,000 people, three-fourths of who
worked at foreign-capital companies. As a result of good market conditions relevant for the
industry, since 2004, employment in the automotive sector has been rising at a rate of 10%
a year.
Having experienced a period of worse market conditions and a slump in the output
of cars at the beginning of the present decade, since 2004, Poland has witnessed a marked
increase in the production of cars and parts and accessories for the automotive industry.
In 2005 the output sold of the automotive industry exceeded PLN 61bn (€15.6bn) which,
compared to 2000, represents growth of nearly 90%.
The REGON register contained
2,264 automotive companies.
4
100
www.pmrcorporate.com
Poland: analysis of selected economic sectors
Output of the automotive sector in Poland (thousands of units),
2000-2005 and January-October 2006
PMR077
Passenger cars
Trucks
Engines
2000
532
58.1
521
2001
364
24.7
740
2002
288
21.0
800
2003
334
18.5
920
Source: GUS, Samar, 2006
2004
522
59.0
1,300
2005
540
67.7
1,506
Jan-Oct 2006
531
60.7
-
www.pmrpublications.com
The automotive sector is one of the key branches of the Polish economy. In 2005 the output
sold of the automotive sector accounted for about 10% of the total output of the country’s
industrial sector. At the same time, the value of goods exported by the automotive industry
amounted to €11.2bn, i.e. approximately one-sixth of the entire Polish exports.
In the first ten months of 2006, 96% of passenger cars and 92% of delivery cars
manufactured in Poland were exported to foreign markets, mainly to EU states. Similarly,
the exports of buses, car parts and components and diesel engines have also been rising
recently.
4.3. Growth prospects for the sector
During the first ten months of 2006, the output sold of the automotive industry was nearly
a fourth higher than in the same period in 2005.
According to forecasts released by the Polish Automotive Chamber, further growth in the
production of passenger and delivery vehicles should be expected in the upcoming years in
Poland. At the same time, as a result of robust exports and the development of car production
plants in the Czech Republic and Slovakia, the volume of engines and car accessories produced
by Polish plants should continue to grow rapidly.
4.4. Selected sites for automotive investments
4.4.1. Dolnoslaskie voivodship
4.4.1.1. Industrial traditions of the region
The Dolnoslaskie region has long been associated with the automotive industry. This is largely
due to the operations of Jelczanskie Zaklady Samochodowe of Jelcz-Laskowice, set up in 1952,
which for many years was a leading manufacturer of trucks and buses in Poland.
www.pmrcorporate.com
101
Poland: analysis of selected economic sectors
4.4.1.2. Large companies operating in the automotive industry
Currently, the region is one of the largest automotive centres in Poland. According to our
estimates, almost 150 automotive firms are based in the Dolnoslaskie region. The majority
of them are manufacturers of subassemblies, parts and accessories for the automotive
industry. They include such large, globally-recognised companies as Toyota, a manufacturer
of engines and power transmission systems at plants in Walbrzych and Jelcz-Laskowice, and
Volkswagen, with its diesel engine plant in Polkowice. Such companies as Bosch, Faurecia,
Volvo and Wabco have also invested in the region.
Toyota deserves a special mention here – it launched a Walbrzych-based plant in 1999;
and in subsequent years, encouraged by the plant’s performance, it gradually increased its
investment outlays in the region. Consequently, in 2002, another plant was launched (JelczLaskowice), and the production activities of both plants increased in subsequent years.
Toyota was followed by other investors, and the region soon became the main destination for
Japanese investments in Poland.
Most of the automotive investments in the region were attracted by the Special
Economic Zones operating in the voivodship, mainly the Walbrzych Special Economic Zone
and Legnica Special Economic Zone.
Select automotive companies operating in Dolnoslaskie voivodship
PMR078
Location
Autoliv
Country of
origin
Sweden
Daicel Chemical Industry
Japan
Manufacture of air bags
Faurecia Investments
France
Manufacture of seats for vehicles and car upholstery
Company
Jelcz-Laskowice, Olawa
Zarow
Legnica, Walbrzych
Olesnica
Walbrzych
GKN Industries Limited
USA
Grossmann
Germany
Jelcz
Poland
Lisa Draexlmaier
Germany
Jelcz-Laskowice
Jelenia Gora
Dzierzoniow
Mirkow
Metzeler Automotive
Profile Systems Europe
Robert Bosch
Manufacture of braking systems
Manufacture of air-conditioning equipment
for the automotive industry
Manufacture of plastic elements
Japan
Simoldes Plasticos
Portugal
Walbrzych
Manufacture of car seats and upholstery
Manufacture of buses, trucks
and specialised vehicles
Manufacture of electric systems
for the automotive industry
Germany
Sanden Corporation
Takata Petri
Japan
TBMECA Poland
Monaco
Toyota
Japan
Jelcz-Laskowice, Walbrzych
Manufacture of homokinetic half-shafts and joints
Manufacture of automotive sealing systems
Jelcz-Laskowice
Legnica
Manufacture of air bags and seat belts
Germany
Polkowice
Krzeszow, Walbrzych
Business profile
Manufacture of safety systems
Manufacture of subassemblies for car engines
Manufacture of engines and gear-boxes
Trelleborg
Sweden
Manufacture of rubber appliances for cars
Volkswagen
Germany
Manufacture of diesel engines
Wroclaw
Volvo
Sweden
Manufacture of buses
Wroclaw
Wabco Europe
Legnica, Polkowice
Source: PMR based on data from PAIiIZ and SEZs, 2006
102
The Netherlands Manufacture of brake systems
www.pmrpublications.com
www.pmrcorporate.com
Poland: analysis of selected economic sectors
4.4.1.3. Business support institutions
In the region, there a number of business-support institutions that provide help to investors
executing investment projects, including:
n
Wroclaw Branch of the Industrial Development Agency (ARP) (www.arp-sez.pl)
n
Wroclaw Branch of the British-Polish Chamber of Commerce, (www.bpcc.org.pl)
n
Lower Silesian Regional Development Agency (DARR) (www.darr.pl)
n
Lower Silesian Chamber of Commerce (DIG) (www.dig.wroc.pl)
n
Lower Silesian Chamber of Craft (DIR) (www.izbarzemieslnicza.com.pl)
n
Lower Silesian Chapter of the BCC (www.bcc.org.pl)
n
Lower Silesian Centre for Advanced Technologies – the Technical University of Wroclaw
(DCZT) (www.dczt.wroclaw.pl)
n
HRK – a country-wide human resources consultancy (www.hrk.pl)
n
Karkonosze Agency for Regional Development (KARR) (www.karr.pl)
n
Centre for Knowledge and Technology Transfer at the Wroclaw University
(www.otwt.uni.wroc.pl)
n
Sudety Industrial and Commerce Chamber (SIPH) (www.siph.pl)
n
Wroclaw Industrial Park (WPP) (www.wpp.wroc.pl)
n
Wroclaw Technology Park (WPT) (www.technologpark.pl)
n
Wroclaw Centre for Technology Transfer of the Wroclaw University of Technology
(www.wctt.pl)
n
Western Commercial Chamber (ZIG) (www.zig.pl).
There are four special economic zones located in the Dolnoslaskie voivodship:
n
Kamienna Gora Special Economic Zone for Medium Business (www.ssemp.pl)
n
Legnica Special Economic Zone (www.strefa-legnica.com)
n
Tarnobrzeg Special Economic Zone (www.tsse.pl)
n
Walbrzych Special Economic Zone “Invest-Park” (www.invest-park.com.pl)
Special economic zones are specific areas for conducting business activities on
preferential terms. Investors representing the automotive industry can enjoy corporate income
tax relief of up to 30% of capital expenditure made or the value of two-year’ employment
costs. In addition to well-prepared land, the zones’ authorities provide enterprises with
assistance in starting investment projects in the zone.
4.4.1.5. Workforce availability
Despite a steady decrease in unemployment in the recent years, the number of people without
jobs in the Dolnoslaskie region is still among the highest in Poland. As at the end of October
2006, the registered unemployment rate was 16.8%, which was 3.4 p.p. lower than in the
same period of 2005.
The unemployment rate is much lower in Wroclaw where the registered unemployment
rate was 8.5% at the end of October 2006.
More than a half of the unemployed in the Dolnoslaskie voivodship (i.e. about 100,000
persons) have vocational education (secondary or basic). Despite a relatively high number
of the unemployed, as a result of rising emigration for financial reasons and a considerable
www.pmrcorporate.com
103
Poland: analysis of selected economic sectors
inflow of investments into the region, entrepreneurs are starting to find it increasingly more
difficult to find employees with the right technical qualifications. More than a third of the
unemployed in the region have primary or lower-secondary education, while a relatively low
percentage, of about 5.5%, have completed higher education.
Unemployment structure in Dolnoslaskie voivodship
as at the end of September 2006
PMR079
Total:
higher education
secondary vocational education
secondary general education
basic vocational education
Number of the unemployed
192,798
10,572
42,923
15,027
57,488
Percentage share
100.0%
5.5%
22.3%
7.8%
29.8%
www.pmrpublications.com
Source: GUS, 2006
In terms of the student population, the Dolnoslaskie voivodship ranks fourth in Poland. In
2005, nearly 170,000 students studied at 34 higher-education schools, while the number of
graduates amounted to 33,000. Almost 137,000 students study in Wroclaw which is home to
26 higher-education schools. Every year, more than 26,000 students graduate from Wroclaw
universities.
Number of students and graduates of Wroclaw
higher-education schools (’000), 2000-2006
PMR080
134.8
136.8
113.8
122.2
126.9
132.0
16.4
19.1
22.0
24.0
27.2
26.1
2000/2001
2001/2002
2002/2003
2003/2004
2004/2005
2005/2006
Students
Source: GUS, 2006
Graduates
www.pmrpublications.com
The Wroclaw University of Technology is the largest technical school in the region, with over
32,000 students enrolled at the university every year. The Wroclaw University also has many
technical faculties.
104
www.pmrcorporate.com
Poland: analysis of selected economic sectors
Number of students and graduates of select technical departments
of Wroclaw universities
PMR081
1,067
Computer science
Production engineering
Environmental engineering
Chemical engineering
546
3,026
311
161
Physics
211
Automatics and electrical engineering
3,606
390
Mechanical engineering and robotics
Biotechnology
6,785
300
203
2,855
1,902
1,768
1,511
1,291
Material engineering 34
131
Students
Source: PMR based on data released by the Regional Investor Support Centre, 2006
Graduates
www.pmrpublications.com
Additionally, the region also has 166 secondary vocational schools and 136 basic vocational
schools, where a total of 37,000 students are taught.
4.4.1.5. Costs of doing business
4.4.1.5.1. Salaries and wages
In October 2006, the gross average monthly pay in the enterprise sector in the Dolnoslaskie
voivodship was PLN 2,544 (€652), i.e. more than 4% less than the national average.
Comparing the remuneration earned in capital cities of voivodships in the first nine months
of 2006, Wroclaw’s average was lower than that of Warsaw, Katowice, Gdansk, Poznan or
Krakow, amounting to PLN 2,529 (€648), i.e. 27% less than Warsaw’s.
The comparative situation changes slightly when the pay in industry is concerned – here,
the Dolnoslaskie region reports much higher salaries than the majority of other voivodships.
Only residents of the Mazowieckie and Slaskie regions employed in the industrial sector earn
higher wages. This year’s growth of salaries paid in the industrial sector of the Dolnoslaskie
voivodship has been the highest in Poland. However, it should be noted that this is largely
attributable to the presence of the copper giant KGHM in the region.
www.pmrcorporate.com
105
Poland: analysis of selected economic sectors
Gross pay (PLN) in Dolnoslaskie voivodship,
by select positions, spring 2006
R&D Quality assurance Engineering
Production
PMR082
Position
Average
Production Department Manager
6,670
Production Planning Specialist
3,838
Maintenance Specialist
3,161
Production Group Manager / Foreman
3,761
Team L eader
2,980
Mechanic
2,785
Electrician
2,599
Locksmith
3,070
Turner
2,165
Fitter
1,672
Production Operator
2,143
Fork Lift Operator
1,948
Line Quality Controller
1,750
Line Worker
1,935
Cleaner
1,295
Production Process Engineer
3,632
Constructor – Engineer
3,749
Quality Specialist
3,542
Laboratory Specialist
2,606
Research and Development Specialist
3,950
Source: AG TEST Human Resources, “Salary report – Spring 2006”
www.pmrpublications.com
4.4.1.5.2. Office space rental costs
According to a report released by Jones Lang LaSalle in June 2006, rental costs in
Wroclaw are at the initial stage of moderate growth trend and stand at about €14-15/m2/
month for top class A office space and €8-13/m2/month for class B office space and office
space in tenement houses. Average maintenance charges are about €2.5/m2 a month. This
means that office space rental costs in Wroclaw are lower than in Warsaw or Krakow.
In other cities and towns of the Dolnoslaskie voivodship, the average lease rent is in the
range of €5-8/m2 a month.
106
www.pmrcorporate.com
Poland: analysis of selected economic sectors
4.4.1.5.3. Warehouse space rental costs
According to Cushman&Wakefield, the rent for warehouse space outside of Warsaw is €3-4/m2
(based on a report released early in 2006).
4.4.1.5.4. Transport access
The geographical position and a relatively well-developed transport infrastructure – compared
to other regions – attract automotive investments to the Dolnoslaskie region. However,
it should be added that how developed the local infrastructure is varies considerably
depending on specific parts of the region.
The localisation of the Dolnoslaskie voivodship in southwest Poland provides investors
with a relatively easy access to countries in Central and Eastern Europe (that region has
recently become a major car manufacturing centre in Europe) and to markets in Western
Europe.
The Dolnoslaskie region has the following advantages:
n
convenient car transportation links – international routes: E40, E36, E65 and E67
n
a well-developed railway system – international railway routes E30 (connecting Germany
and Ukraine) and E59 (connecting the complex of Szczecin-Swinoujscie harbours with
the south of Europe)
n
a dynamically developing airport in Wroclaw offering flights to many European cities
n
a river port on the banks of the Oder River, enabling transport and transit by river.
At the same time, Wroclaw, being the capital of the region, is among the biggest railway
nodes handling passenger and freight traffic in Poland. It has connections to Leszno-Poznan,
Opole-Lubliniec, Legnica-Zgorzelec, Glogow-Zielona Gora, Klodzko-Kudowa Zdroj, WalbrzychJelenia Gora, and Olesnica-Ostrow Wielkopolski. Wroclaw is transected by national routes nos.
5, 8 and 94; and a short section of A4 motorway passes through the city as well. Additionally,
there is a node of A4 motorway and routes nos. 5 and 35 in Bielany Wroclawskie, near the
city’s border.
4.4.1.6. Availability of investment sites
Most of the investor-preferred sites are situated within the four special economic zones within
the Dolnoslaskie voivodship. By launching business activity within a special economic zone,
companies can draw on public aid. The following special economic zones are located in the
Dolnoslaskie voivodship:
Kamienna Gora Special Economic Zone for Medium Business
The zone covers an area of 241 ha. Investment sites are located in the following towns:
Kamienna Gora, Krzeszow, Lubawka, Nowogrodziec-Wykroty, Luban, Jawor, Piechowice and
Radomierz.
Legnica Special Economic Zone
The zone covers an area of 417 ha. It is composed of eight sub-zones. The land within the
zone is zoned for manufacturing and service-related investment projects; it is located in the
following towns and cities: Legnica, Legnickie Pole, Polkowice, Krzywa, Zlotoryja, Lubin, Sroda
Slaska and Prochowice.
www.pmrcorporate.com
107
Poland: analysis of selected economic sectors
Tarnobrzeg Special Economic Zone – Kobierzyce sub-zone
The Kobierzyce sub-zone comprises 260 ha of investment land located in the Kobierzyce
commune near Wroclaw. The sub-zone is managed by the Wroclaw branch of the Industrial
Development Agency.
Walbrzych Special Economic Zone “Invest-Park”
The zone covers an area of 939 ha. It comprises 16 sub-zones, of which 13 are located in
the Dolnoslaskie voivodship. Investment sites are located in the following cities and towns:
Walbrzych, Nowa Ruda, Klodzko, Dzierzoniow, Zarow, Jelcz-Laskowice, Kudowa Zdroj,
Swidnica, Wroclaw, Olawa, Strzelin, Strzegom and Brzeg Dolny.
4.4.2. Slaskie voivodship
4.4.2.1. Industrial traditions of the region
The Slaskie region has been a major automotive centre in Poland for many decades. Substantial
encouragement for the automotive industry to develop in the region followed from the
creation of Fabryka Samochodow Malolitrazowych in Bielsko-Biala early in the 1970s, and
the purchase of the licence to manufacture Fiat 126p, which was to become the most widely
bought car in Poland over the next 20 years. As a result of the great popularity of Fiat 126p,
its production grew and another plant was constructed in Tychy. Consequently, the Silesia
region soon saw the development of an entire network of sub-suppliers and minor businesses
cooperating with both plants.
4.4.2.2. Large companies operating in the automotive industry
Currently, the region is by far the largest cluster of automotive companies in Poland. According
to our estimates, about 220 companies engaged in the automotive industry operate in the
region. Around 80% of passenger cars manufactured in Poland are made in the Slaskie
voivodship. They are produced in a Fiat plant in Tychy and a GM Opel plant in located Gliwice.
The plants have attracted a wide number of sub-suppliers manufacturing car subassemblies
and accessories for the automotive industry. For the most part, the firms are foreign owned.
The companies which launched their production plants in the Slaskie voivodship in recent
years include Delphi, Isuzu, Lear, NGK, Tenneco and Valeo.
Most of the major automotive investments are concentrated within the Katowice Special
Economic Zone, specifically in the following sub-zones: Gliwice, Jastrzebie-Zory, SosnowiecDabrowa Gornicza and Tychy.
A substantial inflow of foreign investors from the automotive industry has been clearly
visible in the region for a long time; additionally, recently they have expanded the scope of
their activities. Production plants tend to be increasingly more often accompanied by sales
centres, storage facilities, and research and development centres. A good case in point is the
investment project of TRW, whose most state-of-the-art engineering solutions are developed
in the vicinity of its plants in Czestochowa.
108
www.pmrcorporate.com
Poland: analysis of selected economic sectors
Select automotive companies operating in Slaskie voivodship
PMR083
Location
Company
Country of origin
Business profile
Sosnowiec
Bitron Poland
Luxembourg
Tychy
BOS Automotive Products Polska
Belgium/Germany
Dabrowa Gornicza
Brembo Poland
Italy
Manufacture of car accessories
Manufacture of restraining nets
and boot upholstery elements
Manufacture of brake discs
Czestochowa
BST Safety Textiles
Germany
Manufacture of airbags and safety belts
Bielsko-Biala
Cornaglia Poland
Italy
Tychy
Delphi Automotive Systems
USA
Jasienica
Eaton Automotive Systems
USA
Manufacture of automotive accessories
Manufacture of steering transmission
systems, wires, half-shafts and cleaners
Manufacture of valves and pushers
Sosnowiec
Ergom Poland
Italy
Gliwice
Fabryka Plastikow Gliwice
France
Tychy
Fiat
Italy
Manufacture of car accessories
Manufacture of plastics
for the automotive industry
Manufacture of cars
Bielsko-Biala
Fiat-GM Powertrain Polska
Italy
Manufacture of engines
Sosnowiec
Ficomirrors Polska
Spain
Manufacture of mirrors
Bielsko-Biala
Galwano-Technika
Poland
Manufacture of car accessories
Gliwice
GM Opel Polska
USA
Manufacture of cars
Gliwice
HP Polska
Germany
Tychy
HUF Polska
Germany
Tychy
Isuzu Motors Polska
Japan
Manufacture of sound-deadening materials
Manufacture of door handles
and security systems
Manufacture of engines
Siemianowice Slaskie
Johnson Controls
USA
Manufacture of car seat components
Gliwice
Kirchhoff Polska Assembly
Germany
Gliwice
Kotani Poland
Japan
Tychy
Lear Corporation Poland II
USA
Tychy
Manuli Auto Polska
Italy
Gliwice
NGK Ceramics Polska
Japan
Czerwionka-Leszczyny
OML Morando Polska
Italy
Manufacture of car parts
Manufacture of forged elements
for the automotive industry
Manufacture of car parts and accessories
Manufacture of air-conditioning elements
for the automotive industry
Manufacture of ceramic cleaners
for diesel engines
Manufacture of car accessories
Gliwice
Plastal
Sweden
Dabrowa Gornicza
Segu Polska
Germany
Manufacture of car accessories
Manufacture of electric leads
for the automotive industry
Zory
Tenneco Automotive Eastern
Europe
TMP Fondalmec Poland
Italy
Manufacture of engine components
Gliwice
TRW Braking Systems Polska
USA
Manufacture of brake systems
Czestochowa
TRW
V.A.B. Tychy
Czechowice-Dziedzice,
Tychy
USA
Poland/The Czech
Republic
Manufacture of air-bags and seat belts
Tychy
Valeo
Gliwice
Source: PMR based on data from PAIiIZ and the SEZ, 2006
USA
Manufacture of dampers
France
Pressing of car body parts
Manufacture of electric leads, starters,
alternators and front-end modules
www.pmrpublications.com
The large number of automotive companies active in the region and their broadly varied
business profiles provide prospective investors with numerous opportunities for establishing
cooperation.
www.pmrcorporate.com
109
Poland: analysis of selected economic sectors
4.4.2.3. Sector-specific scientific and research centres
The Slaskie region has a wide range of scientific and research institutions, which can provide
substantial support for the automotive industry. In addition such recognised universities
of technology as the Silesian University of Technology and the Czestochowa University of
Technology, they include the following institutions:
n
Silesian Centre of Advanced Technologies (www.sczt.org.pl), an association of
Silesian universities, the Polish Academy of Sciences institutes, automotive institutes,
research and development units, technology parks and manufacturers. The activities
of the Silesian Centre of Advanced Technologies are designed to tighten cooperation
between the research and development institutions based in the Slaskie region and the
economy.
n
BOSMAL Automotive Research and Development Centre (www.bosmal.com.pl) – it used
to be a conceptual design and R&D base for Fabryka Samochodow Malolitrazowych of
Bielsko-Biala. Currently, it is an independent unit performing research and development
projects for diverse companies; BOSMAL cooperates with many recognised institutions
and technical universities, both in Poland and abroad.
4.4.2.4. Business support institutions
In the Slaskie voivodship, there a number of business-support institutions as well as other
organisations which provide assistance in executing investment projects, including:
n
Upper Silesian Agency for Restructuring of Enterprises (GAPP) (www.gapp.pl)
n
Upper Silesian Regional Development Agency (GARR) (www.garr.pl)
n
Economic Chamber of Exporters and Importers (IGEI) (www.igei.katowice.pl)
n
Tarnowskie Gory Chamber of Commerce and Industry (IPH) (tarnowskiegory.com.pl)
n
Chamber of Commerce
(www.izbaph.rybnik.pl)
n
Craft Chamber of Small and Medium-Sized Enterprises of Katowice (www.ir.katowice.pl)
n
District Chamber of Commerce and Industry of Tychy (www.izba.tychy.pl)
n
Regional Chamber of Commerce of (www.rig.katowice.pl)
n
Regional Chamber of Commerce and Industry of Bielsko-Biala (www.cci.pl)
n
Regional Chamber of Industry and Commerce of Gliwice (www.riph.com.pl)
n
Katowice Voivodship Labour Office (www.wup-katowice.pl)
n
Zaglebie Chamber of Commerce (www.lemir.com.pl/zig).
and
Industry
of
the
Rybnik
Industrial
District
Silesia is home to science and technology parks, which were designed to create
conditions conducive to conducting innovative activities and facilitating transfer of
state-of-the-art technologies to businesses, namely:
n
Gliwice Technopark Science and Technology Park (www.technopark.gliwice.pl)
n
Sosnowiec Science and Technology Park (www.um.sosnowiec.pl)
The Katowice Special Economic Zone (www.ksse.com.pl) is within the region, offering
attractive investment sites and assistance in the preparation of projects.
110
www.pmrcorporate.com
Poland: analysis of selected economic sectors
4.4.2.5. Workforce availability
The Slaskie region has a population of nearly 4.7 million. Being the most industrialised region
of Poland which generates about 15% of Poland’s GDP, the Slaskie voivodship is the second
largest labour market in the country. The industrial sector provides jobs to almost 435,000
people in the region, with about 10% of the jobs in the automotive industry. At the same
time, the automotive industry generates one-third of the region’s industrial output. In terms
of the size of population employed in the research and development sector, the Slaskie region
ranks third in Poland, with a 10% share of the sector’s workforce.
As at the end of October 2006, the registered unemployment rate for the Slaskie region
was 13.1%, which represents a total of 236,000 unemployed persons. Despite the fact that
the unemployment rate in the region is one of the lowest in Poland and continues to dwindle,
there are counties where the unemployment rate is over 20%. Substantial unemployment
affects a number of large cities of the region, e.g. Swietochlowice, Bytom, Siemianowice
Slaskie, Zabrze and Chorzow. On the other hand, the registered unemployment rate for
Katowice is less than 6%.
Unemployment structure in Slaskie voivodship
as at the end of September 2006
PMR084
Total
higher education
secondary vocational education
general secondary education
basic vocational education
Source: GUS, 2006
Number of unemployed
244,322
15,266
54,297
18,860
75,449
Percentage share
100.0%
6.2%
22.2%
7.7%
30.9%
www.pmrpublications.com
People with primary and lower-secondary education make up the largest group of the
unemployed in the region; similarly, the group of workers with vocational education (basic
and secondary) is large as well. Conversely, individuals with higher education account for
a little more than 6% of all the unemployed in the region.
According to data released by the Katowice Regional Labour Office, 9,700 mechanical
engineering technicians and automobile mechanics were jobless at the end of 2005.
The Slaskie region is Poland’s second largest academic centre. In 2005 almost 208,000
students (45,000 graduates) studied at 43 universities in the region, including over 59,000
students (11,500 graduates) at three technical universities. Katowice is the region’s academic
centre, with the highest number of students. In terms of the number of students, the Silesian
University is the leader, closely followed by the Silesian University of Technology in Gliwice
and the Czestochowa University of Technology.
www.pmrcorporate.com
111
Poland: analysis of selected economic sectors
The largest technical universities in Slaskie voivodship
PMR085
University
Czestochowa University
of Technology
Silesian University
of Technology (Gliwice)
Select specialisations
electronics and telecommunications
electrical engineering
technical physics
computer science
computer science and econometrics
material engineering
environmental engineering
mathematics
mechanics and mechanical
engineering
metallurgy
environmental protection
production management and
engineering
automatics and robotics
biotechnology
chemistry
electronics and telecommunications
electrical engineering
power
technical physics
mining and geology
computer science
chemical and process engineering
material engineering
environmental engineering
mathematics
mechanics and mechanical
engineering
metallurgy
environmental protection
chemical engineering
production management and
engineering
* The data encompasses the total number of students
enrolled at a given school, not just in select specialisations.
Source: Regional Investor Support Centre, 2006
Number of
students
(annual)*
Number of
graduates
(annual)*
18,000
4,400
32,000
5,250
www.pmrpublications.com
The most popular majors at technical universities are production engineering, mechanical
engineering and machine building, and IT science.
Number of graduates of select technical specialisations
in Slaskie voivodship
PMR086
Specialisation
Production engineering and management
Mechanics and mechanical engineering
Computer science
Electrical engineering
Environmental engineering and protection
Physics
Environmental engineering
Automatics and electrical engineering
Transport
Material engineering
Biotechnology
Chemical and process engineering
Source: Regional Investor Support Centre, 2006
112
Number of graduates (annual)
915
873
783
564
397
348
347
334
224
107
68
27
www.pmrpublications.com
www.pmrcorporate.com
Poland: analysis of selected economic sectors
The Slaskie voivodship has a well-developed network of secondary vocational schools.
Its vocational schools (basic and secondary) educate 90,500 students.
4.4.2.6. Costs of doing business
4.4.2.6.1. Salaries and wages
Salaries paid to workers in the Slaskie region are among the highest in Poland. In October
2006, the average gross monthly pay in the enterprise sector was PLN 2,743 (€703), i.e. over
3% higher than the national average. Only those working in the Mazowieckie region earned
more.
Gross pay (PLN) in Slaskie voivodship, by select positions, spring 2006
PMR087
Position
Average
15,527
7,674
Production Planning Specialist
3,750
Maintenance Department Manager
7,655
Maintenance Specialist
4,752
Automation Service Specialist
4,066
Clerk – Production Department
2,855
Production Group Manager / Foreman
5,643
Team Leader
3,307
Mechanic
3,454
3,230
Locksmith
3,180
Turner
2,426
Welder
2,172
Production Operator
2,322
Fork Lift Operator
2,201
Line Worker
2,153
Cleaner
1,818
Engineering Department Manager
9,818
Processor Supervisor
7,784
Product Engineer
4,879
Constructor – Engineer
4,809
Quality Control Manager
6,974
Quality Specialist
4,501
Laboratory Manager
6,745
Laboratory Specialist
2,966
Environment Protection Specialist
5,136
Research and Development Department Manager
8,135
R&D
Electrician
Engineering
Production Department Manager
Quality assurance
Production
Production Director
Research and Development Specialist
4,209
Development Department Assistant
2,730
Source: AG TEST Human Resources, “Salary report – Spring 2006”
www.pmrcorporate.com
www.pmrpublications.com
113
Poland: analysis of selected economic sectors
In Katowice, which is the capital city of the voivodship, labour costs are even higher.
In the first nine months of 2006, the average gross monthly pay in the enterprise sector was
PLN 3,478 (€892), i.e. 1% less than in Warsaw.
In Silesia’s industrial sector, in the first ten months of 2006, the average monthly pay
was PLN 3,037 (€779), which was over 16% higher than the national average.
4.4.2.6.2. Office space rental costs
In Katowice, office space rental costs are lower than in Krakow or Warsaw. According to data
released by Metropolis Nieruchomosci Komercyjne, at the beginning of December 2006, the
asking rental rate of class A office space was around €19/m2+utilities per month. The rates,
however, are negotiable. In practice, they can be reduced even by 30% of the opening price
and depend on the market position of the potential tenant, leased area and term of lease. As
a rule, contracts are concluded for specific duration (a minimum of three or five years).
Monthly rental rate for class B office space is about €10-12/m2+utilties. In this case,
tenants are required to cover the costs of the use of common areas, which increases the base
rental rate by 20-30%. Generally, rental rates are non-negotiable. Contracts are concluded for
both specified and unspecified periods.
4.4.2.6.3. Warehouse space rental costs
According to Cushman&Wakefield, the rent for the lease of warehouse space outside of
Warsaw is €3-4/m2 a month.
4.4.2.6.4. Cost of land
The prices of investment land available to investors in the Katowice Special Economic Zone
vary from PLN 15/m2 to PLN 70/m2, depending on specific site.
4.4.2.6.5. Transport access
The Slaskie region is the most highly urbanised region in Poland; it has a very well-developed
transport infrastructure. Of all the regions in Poland, the road network is densest in this
voivodship.
The Slaskie voivodship is where the following two important transportation routes
intersect:
n
A1 route (Gdansk-southern border of Poland in Cieszyn)
n
A4 route (Zgorzelec-Wroclaw-Przemysl, southern border of Poland), which has motorway
sections from Katowice to Krakow and from Wroclaw to Gliwice.
Thanks to convenient railway connections, almost half of the entire domestic transport
by railroad is carried out in the Slaskie region. The region has a section of wide-gauge railroad
system supporting transport of goods between Europe and Asia and a handling terminal in
Slawkow.
Additionally, many international flights are offered by Pyrzowice, a dynamically
developing airport, through which approximately one million passengers travel every year. The
Gliwice river port provides a convenient transportation route to Szczecin via the waterway.
114
www.pmrcorporate.com
Poland: analysis of selected economic sectors
4.4.2.7. Availability of investment sites
Office space
According to data released by Metropolis Nieruchomosci Komercyjne, most of the office space
available in the region is offered in Katowice; however, other cities in the region do not lag
much behind the capital in that respect. Yet, as far as class A office space is concerned, it is
available only in Katowice. Class B and C buildings are widely available in other cities of the
region; if a tenant signs a long-term lease, buildings can be refurbished to a higher standard,
if necessary.
Warehouse space
The Silesia agglomeration is one of the largest warehouse space centres in Poland. According
to Cushman&Wakefield, in 2006 the total supply of storage space in Upper Silesia was over
240,000 m2. Over 157,000 m2 of warehouse space was under construction, of which nearly
a half had already been pre-leased in Q3 2006.
Available sites
In many investment rankings, the Silesia region is ranked as the best place for industrial
investments. It offers a wide range of greenfield sites; as a result of restoration of postindustrial land, increasingly more brownfield sites are available as well.
Most investor-preferred sites are located in the Katowice Special Economic Zone, which
is the largest special economic zone in Poland and attracts more investments than any other
SEZ in Poland. Investments are primarily made in the Upper Silesian agglomeration and in the
area of Bielsko-Biala and Czestochowa.
Covering an area of 1,156 ha, the Katowice Special Economic Zone offers fully developed
sites of varying areas, from small lots through areas of a few tens of hectares. It comprises
diverse 35 sites, which provides enterprises with a sufficient selection to choose the most
suitable place for their investment. The Katowice SEZ comprises four sub-zones:
Gliwice sub-zone
Industrial land in the sub-zone is located in Gliwice and Zabrze. Prices of land average about
PLN 65/m2.
Jastrzebie-Zory sub-zone
Investment sites in the zone are located in Bielsko-Biala, Czerwionka-Leszczyny,
Godow, Jastrzebie Zdroj, Pawlowice, Rybnik and Zory. Prices of land are in the range of
PLN 11-45/m2.
Sosnowiec-Dabrowa Gornicza sub-zone
The sub-zone’s investment potential comprises industrial land in Sosnowiec, Dabrowa
Gornicza, Slawkow and Siemianowice Slaskie. The sub-zone is characteristically dispersed
across the Slaskie voivodship; the sites comprising the sub-zone are located close to
enterprises which are being restructured. An advantage of such a structure of the sub-zone is
a well-developed technical and transportation infrastructure of the investment land. Prices of
land in the sub-zone vary from PLN 40 to PLN 70/m2.
www.pmrcorporate.com
115
Poland: analysis of selected economic sectors
Tychy sub-zone
The sub-zone’s investment sites are located in the south-east part of the municipality of
Tychy and in suburban areas of the city. The sub-zone is equipped with complete technical
infrastructure and has very good access to the Warsaw-Cieszyn motorway.
Representatives of the automotive sector who have decided to conduct activities in the
Katowice Special Economic Zone can draw on public aid; in particular, they can obtain
exemptions from corporate income tax of up to 30% of capital expenditure made or two
years’ costs of employment incurred. They can also obtain property tax credits.
116
www.pmrcorporate.com
Poland: analysis of selected economic sectors
5. Aviation sector
Aviation sector – selected locations
PMR100
Warsaw
Kalisz
Swidnik
Mielec
Bielsko-Biala
Rzeszow
Krosno
Source: PMR, 2006
www.pmrcorporate.com
www.pmrpublications.com
117
Poland: analysis of selected economic sectors
5.1. Traditions of the aviation sector
5.1.1. Before 1939
The origins of the Polish aviation sector date back to the period immediately preceding the
outbreak of the First World War and to Aviana, a plant manufacturing aircrafts under a license
from Farman, was established in 1910. After Poland regained its independence, the following
enterprises were set up:
n
1918 – Centralne Warsztaty Lotnicze (CWS – central aviation workshops)
n
1920 – Plage & Miskiewicz
n
1923 – Podlaska Wytwornia Samolotow (PWS – an aircraft plant) and Samolot.
The first aircraft plant established by the state was Panstwowe Zaklady Lotnicze
(PZL – state-owned aircraft plant), which was created in 1928 on the basis of former CWS.
At the start, Polish companies produced aircrafts under licences from French companies
[Poteza (PWS) and Wibault (PZL)].
In 1929 Polish Airlines LOT were established, as a result of the merger of companies
formerly operating in the aviation transport sector. In 1930 the newly-established company
joined the IATA and launched its services as an international carrier. The production of aircraft
was encouraged by both the growing popularity of flights and the modernisation of the Polish
army. It was at that time that a series of globally unique P fighters (whose characteristic
feature was a V-shaped wing) and the “Los” bomber were created. Both aircraft proved so
good that they promptly found eager buyers abroad. In 1939 PZL had three plants located in:
n
Warsaw – two plants manufacturing aircrafts and engines under a licence from Bristol
n
Mielec – a plant producing aircraft parts, which was established as part of the Central
Industrial District’s project, along with a plant manufacturing engines in Rzeszow.
When the Second Word War broke out, in addition to the wide aircraft portfolio, the
company had also many interesting aircraft designs planned to be executed in the future.
For the Polish aviation sector, the between-war period was also marked by a few
spectacular successes in the sports arena, which led to keen public interest in the new industry.
One of them was a victory of a Polish pilot in the Challenge 1936 international aviation contest
and a non-stop transatlantic flight from Senegal to Brazil. Both these successes were achieved
using Polish RWD aircrafts.
118
www.pmrcorporate.com
Poland: analysis of selected economic sectors
5.1.2. 1939–1989
A large majority of the Polish aviation industry was destroyed during the Second World War,
which in practice meant that the industry had to be rebuilt from scratch. The restoration of the
sector was possible thanks to the creation of a network Wytwornia Sprzetu Komunikacyjnego
(WSK – a transport equipment enterprise), manufacturing a wide range of products related
to transport, from motorcycles through airplanes and helicopters. The major WSK companies
were as follows:
n
WSK Okecie of Warsaw, which was created on the basis of PZL Warszawa; the unit
manufactured sport, training, agricultural and multi-task aircrafts, including a number
of widely-known models such as PZL-104 Wilga and PZL-106 Kruk.
n
WSK Swidnik, which was created in 1951 on the basis of PWS and LWS, operating in
Lublin and nearby cities. In 1958 the company launched the production of Mi-1 and
Mi-2 helicopters under a Russian licence. In the 1980s W-3 Sokol was manufactured, as
well as parts for Il and An passenger aircraft.
n
WSK Mielec, which was established on the basis of the PZL plant of Mielec, manufactured
aircrafts under a Russian licence (the An-2 bi-plane and MIG-15 and MIG-17 jet
aeroplanes). In the 1960s WSK Mielec launched the production of its own training
aircraft, TS-11 Iskra and M-15 Belphegor, the only bi-plane jet aircraft in the world.
n
WSK Kalisz, which was established in 1946, has produced aircraft engines since 1952
(radial, turbine, turbopropeller) and flap steering systems for passenger aircrafts.
n
WSK Rzeszow, which continued the business of the pre-war PZL plant manufacturing
engines; the company produced engines for MIG-15 and MIG-17 jet airplanes and
turbopropeller engines.
A word should be added about Specjalne Zaklady Doswiadczalne (a special experimental
centre) of Bielsko-Biala where gliders were produced. Another important feature of the Polish
aircraft history was Poland’s specialisation in aircrafts for agriculture within the Council for
Mutual Economic Assistance, which followed from the internal division of tasks within that
organisation.
5.2. Aviation sector today
Today, the Polish aviation sector comprises 50-100 firms employing over 16,000 people.
The companies manufacture small sport aircrafts, as well as passenger, agricultural, training
aircrafts, helicopters, gliders and aircraft parts and accessories. The Polish industry is
specialised in the manufacture of units of aluminium alloys (riveting, welding and etching).
In the future, Poland can potentially become an international centre for the production and
maintenance of small aircraft as it has both the requisite background and experienced experts;
the necessary infrastructure is being developed.
Currently, the aircraft sector can be divided into the following three groups, depending
on type and historical background:
n
firms established as a result of the transformation of former WSK enterprises into
commercial companies
n
firms established as a result of foreign direct investments
n
aviation companies from the SME sector.
www.pmrcorporate.com
119
Poland: analysis of selected economic sectors
5.2.1. Aviation firms established as a result
of the transformation of former WSK entities
This group comprises the following companies:
n
PZL-Rzeszow – the company was established as a result of the transformation of WSK
Rzeszow. It has operated under the new name since 1994. PZL-Rzeszow produces
aircraft engines and, as the first company in Poland, it has obtained a JAR certificate.
In the 1990s its major customers included Fiat Avio, Rolls Royce, Hamilton Sundstrand,
Honeywell and Pratt & Whitney Canada. In 2001 85% of PZL-Rzeszow’s share capital
was acquired by United Technologies Holding. Currently, the company employs around
4,700 people.
n
PZL-Swidnik – the company is the only manufacturer of helicopters in Poland.
Additionally, it also manufactures gliders and aircraft and helicopter components; it also
provides helicopter maintenance training. One of its major customers is Aerospatiale
(in the 1990s PZL-Swidnik manufactured ATR-72 aircraft for that company) and Airbus,
for which PZL-Swidnik manufactures passenger aircraft doors. Other contractors of
the company include Eurocopter, Agusta, Latecoere, Dassault, Ratier-Figeac, Snecma,
Boeing, Lord, Fokker, Cesna, Bell Helikopter and GKN. The company is also a supplier for
the US Navy. Currently, it employs 2,100 people.
n
PZL-Mielec – the company was established as part of the transformation of WSK
Mielec. Currently, it is a leading Polish aircraft manufacturer. Its products include the
M-28 Skytruck Bryza twin-engine high-wing, the M-18 Dromader agricultural aircraft
and M-26 Iskierka. The company’s largest customers include Boeing, BAE Systems and
SAAB. The company employs 1,500 people.
n
WSK Kalisz – the company is a manufacturer of aircraft engines (radial, turbine,
turbopropeller) and flap steering systems for passenger aircrafts.
5.2.2. Foreign investors in the Polish aviation industry
The major large companies established as a result of foreign direct investments in the Polish
aviation industry include the following firms:
n
Pratt & Whitney Kalisz – the company was established in 1992; it is entirely owned
by Pratt & Whitney Canada. Pratt & Whitney Kalisz produces around 2,100 types of
parts, including: gear-wheels, pump components, reducers, transmission systems and
compressors. The company employs 1,000 people.
120
n
BF Goodrich Krosno – the company is a manufacturer of chassis components for
commercial and military aircraft. The company employs around 275 people.
n
Creuzet Polska – the Polish branch of the French company Creuzet is located in Sedziszow
Malopolski. It produces aircraft components.
n
Snecma Polska (Hispano Suiza Polska) – established in 2001, the company is
a manufacturer of aircraft engine parts. The company has a production plant in
Sedziszow Malopolski and is entirely owned by the Snecma Group.
n
Fiat Avio Polska – the company was established in Bielsko-Biala in 2002. It is a design
centre and a plant manufacturing parts for aircraft engines. It employs 200 people.
www.pmrcorporate.com
Poland: analysis of selected economic sectors
n
Gardner Poland – the company is located in Tczew; part of Gardner Group Ltd., the
company is specialised in precise machining of components for the aviation and
automotive industries.
n
Smith Aerospace Components Poland – the company employs over 130 people at its
plant manufacturing components for aircraft engines based in Dzierzoniow. It closely
cooperates with PZL-Rzeszow.
n
Vac Aero Kalisz – the company is specialised in highly technologically advanced,
specialised processes applicable to steel, stainless steel, titanic, ceramic and other
materials, which are mainly used in the aircraft industry. The company is entirely owned
by Vac Aero International.
5.2.3. Aviation companies in the SME sector
The third group of aircraft companies includes the following entities:
n
Marganski & Myslowski Zaklady Lotnicze – a company based in Bielsko-Biala. Its
business includes the reconstruction of historic aircrafts, the repair of gliders and
ultra-light aircrafts and the manufacture of sport gliders. It conducts research and
development work concerning proprietary aircraft designs. It is a global leader in the
production of gliders. It employs 34 people.
n
Serwis Samolotow Historycznych – the company is headquartered in Jasienica near
Bielsko-Biala. It produces replicas of Jungmann and Jungmeister aircraft (the 1930s),
ultra-light aircraft and aircraft components. It employs 46 people.
n
Allstar PZL Glider – the company is based in Bielsko-Biala. It continues the business of
SZD Bielsko-Biala concerning repair and production of SZD gliders. The company has
a JAR certificate.
n
3Xtrim – the company is headquartered in Bielsko-Biala, continuing a part of former
SZD Bielsko-Biala’s business. The company is specialised in the production of three
ultra-light training aircraft composite models for professional purposes.
n
Remos – the company is headquartered in Bielsko-Biala. It manufactures ultra-light
composite aircrafts.
n
ETC-PZL Aerospace Industries Warszawa – the company is specialised in the design
and construction of simulators and training equipment. It also modernises and adapts
similar equipment; additionally, it develops and upgrades the equipment’s databases.
n
Centralna Szkola Lotniczo-Techniczna (central technical school of flying) of Krosno
– a training and production centre manufacturing FK aircraft in cooperation with the
German-based B+F; the company also organises aircraft and technical courses.
www.pmrcorporate.com
121
Poland: analysis of selected economic sectors
5.3. Key sub-suppliers for the aviation sector
Sub-suppliers constitute a separate group within the sector companies. Below, we present
a list of the major sub-suppliers (some of them have already been mentioned above):
n
Arkom – a Rzeszow-based company specialised in the manufacture of tools (including
tools for the aviation industry)
n
El-Automatyka – a Rzeszow-based manufacturer of machine tools. Its customers include
Goodrich and Snecma
n
HSW-Narzedziownia – a manufacturer of instrumentation for the aircraft industry,
headquartered Stalowa Wola
n
Kreisler Polska – it manufactures components for the aircraft industry and gas turbines
for electric generators of high-grade steel at its plant in Krakow
n
TW-Metals Polska – located in Rzeszow, the company is a supplier of metals for the
aircraft industry; it holds certificates awarded by the major global aircraft companies
n
Wietpol – an aircraft company specialised in machining; it is located in Krosno and
employs 130 persons
n
WZK Mielec – the company was established in 1994. It manufactures aircraft
components. It is specialised in the manufacture of doors for Boeing aircraft
n
Zaklady Mechaniczne Rufus – the company manufactures parts, units, mechanic,
hydraulic, pneumatic, electric and electronic machines and equipment for many
industries, including the aircraft sector
n
Zaklad Metalurgiczny WSK Rzeszow – the company produces iron, aluminium and
magnesium castings and forged shapes for the aircraft industry; it also provides
machining services
n
Zaklady Narzedziowe Prodrom Mielec – the company manufactures tools for many
industries, including the aircraft sector
n
Zaklad Narzedziowy of Swidnik – the company manufactures tools for the aircraft and
automotive industry; it employs 250 persons.
In Poland, there are also companies specialised in the operation and maintenance of
military aircraft. They include:
n
Wojskowe Zaklady Lotnicze (military aircraft plant) no. 1 of Lodz
n
Wojskowe Zaklady Lotnicze no. 2 of Bydgoszcz
n
Wojskowe Zaklady Lotnicze no. 3 of Deblin
n
Wojskowe Zaklady Lotnicze no. 4 of Warsaw.
Despite the fact that these companies are managed by the Ministry of National Defence,
they alo provide commercial services.
122
www.pmrcorporate.com
Poland: analysis of selected economic sectors
5.4. Sector-specific scientific and research centres
In addition to manufacturers and service providers, the Polish aircraft sector also comprises
scientific and educational institutions. At the moment, these organisations include:
n
Rzeszow University of Technology – the Faculty of Aircraft and Mechanical Engineering
offers studies with the following degree specialisations: aircraft, aircraft engines,
avionics and pilotage.
n
Lublin University of Technology – the Department of Mechanics and Mechanical
Engineering offers studies at the Helicopter Engineering programme (M.Sc.
programme).
n
Warsaw University of Technology – the Faculty of Power and Aircraft Engineering, which
offers the following specialisations: the Automatics and Aircraft Systems, Astronautics,
Aircraft Propulsion and Aircraft. The Transport Department offers studies at the Air
Traffic Management specialisation. The Department of Automation and Aircraft Systems
conducts research work in aircraft-related fields.
n
Warsaw Military University of Technology – the following departments operate as part
of the Institute of Aircraft Technology: Aerodynamics and Thermodynamics, Avionics
and Aircraft Armament, Aircraft Engineering and Operation, all of which perform
educational and scientific work.
n
State Higher Vocational School of Chelm – the Department of Mechanics and Mechanical
Engineering offers the following specialisations: aircraft engineering, aircraft and land
navigation, aircraft pilotage, machine technology, production system IT science. First
students are due to graduate in 2007.
n
State Higher Vocational School of Kalisz – B.Sc. studies at the Department of Mechanics
and Mechanical Engineering, the specialisation of aircraft engine engineering.
n
Institute of Aviation of Warsaw – set up in 1926, it is the main research and development
and design centre in Poland in aviation and related sciences. The Institute is a research
and development unit, which offers research, design and research and development
work for the aircraft industry.
n
ITWL Warszawa – the company provides scientific and research support for the operation
of military aircraft. It is specialised in the research of aircraft and its weapons in terms
of broadly understood flight safety, logistics reliability and maintainability.
There are also secondary schools which provide vocational education in professions
associated with the aviation industry. They include:
n
European Aviation Technical Secondary School at the Complex of Agricultural and
Technical Schools in Powodow (avionics technician).
www.pmrcorporate.com
123
Poland: analysis of selected economic sectors
n
Private Aviation Schools of Warsaw – a complex of three schools: a general secondary
school, a technical secondary school and a post-secondary school, which provides
education in aviation professions.
n
European Aviation Technical Secondary School of Warsaw, which provides aviation
education in the following professions: aviation mechanic and avionics technician.
5.5. Business support institutions
A project named the Aviation Valley Association of Aviation Manufacturers is an important
feature of the Polish aviation sector. This organisation groups the majority of aviation companies
operating in Poland, including manufacturers of aircraft and aircraft components, their
suppliers, aircraft research and development and logistics service providers and educational
institutions training future aircraft employees. The objectives of the Association are:
n
organisation and development of a low cost supply chain
n
creating favourable conditions in order to enhance the development of the aviation
industry enterprises in the region
n
further development of aviation studies, competences and qualifications
n
cooperation with universities of technology aiming to promote new ideas and continue
scientific research within the aviation industry
n
promotion of the Polish aviation industry
n
support for aviation industry enterprises
n
influencing the Polish government’s economic policy to be conducive for the aviation
industry.
As a result of the concentration of the Polish aviation industry in the specific part of
the country, the Aviation Valley is becoming a geographically descriptive term which covers
the Podkarpackie region, though the companies which are its members are also located the
Lubelskie and Slaskie regions. Currently, southeast Poland is home to approximately 85% of all
investments in the sector. A new project launched in 2006, which is related to the development
of the Polish aviation industry, was the Polish Technology Platform for the Aviation Industry,
whose aim is to support the development of the Polish aviation industry, facilitate the flow of
information between research centres and companies and coordinate activities between the
Polish aviation sector and the European Union.
124
www.pmrcorporate.com
Poland: analysis of selected economic sectors
5.6. Workforce availability
The Polish aviation industry comprises about 16,000 employees of various professions;
however, most of them are employed in large companies employing up to a few thousand
persons. Since salaries in these companies are not high, many employees might be willing to
change jobs and relocate to a new company which could offer suitable posts. Furthermore,
every year, educational institutions, as presented above, release graduates seeking jobs
(about 70 potential aviation mechanics and 370 aviation engineers).
The chart below shows salaries of engineers within the aviation sector, presented as the
annual gross cost of the employer)5:
Salary (€) of the aviation engineer in Poland
(presented as the annual gross cost payable by the employer)
PMR066
17,200
8,500
6,900
3-5 years
Graduates
13,500
10,700
5-8 years
8-10 years
10-15 years
www.pmrpublications.com
Source: PMR, 2006
Salaries on non-engineering positions are presented in the chart below.
Salaries (€) in the aviation industry in Poland
(presented as the annual gross cost payable by the employer)
PMR067
14,800
14,500
9,700
8,950
4,500
3,500
Technician
8,950
3,500
Mechanic
Minimum
Source: PMR, 2006
17,139
Average
Office clerk,
administration clerk
Maximum
www.pmrpublications.com
Research conducted on the basis
of declarations submitted by the
aviation sector employees in the
Podkarpackie voivodship.
5
www.pmrcorporate.com
125
Poland: analysis of selected economic sectors
Employees in the Polish aviation sector are not covered by any programme obliging
aviation employers to incur payroll fund expenditure in excess of that mandatory in other
industrial sectors. Neither do aviation employers have any obligatory non-financial liabilities
towards the employees of the sector, such as early retirement, work-time regulation, etc.
From new investors’ point of view, a great advantage of the Polish aviation industry is the
fact that the sector is concentrated in a specific number of geographical areas, which greatly
facilitates hiring new employees from among the workers of the existing plants (provided that
the new investment is located there). Additionally, some of the areas traditionally associated
with the aviation industry experience high unemployment; below, we present unemployment
rates for specific regions, as estimated in October 2006:
n
Podkarpackie – 16.2%
n
Lubelskie – 15.2%
n
Slaskie – 13.1%
n
Wielkopolskie – 11.8%
n
Mazowieckie – 11.9%.
At the same time, the national unemployment rate was 14.9%.
5.7. Availability of investment sites
Currently, the special economic zones located in the regions traditionally associated with the
aviation industry offer sites which can be used by investors from the aviation industry. The list
of the offered sites follows:
n
Europark Mielec Special Economic Zone has 607 ha of land in Mielec; it offers the
following buildings:
126

a 4,300 m2 production hall (3,300 m2 of production space and 1,000 m2 of office
space), available to investors as of 30 April 2007

a 1,600 m2 production hall (1,200 m2 of production space, 400 m2 of
office space), available to investors as of Q1 2007; proposed rate of lease:
€4.21/m2+utilities+VAT

a 5,608 m2 production hall; proposed rate of lease: €3.94/m2+utilities+VAT

a 750 m2 production hall: proposed rate of lease: €3.94/m2+utilities+VAT

additionally, the Special Economic Zone has land for developer projects in the
following sites: (total area of the zone in brackets):
n
Debica (13 ha)
n
Gorlice (30 ha)
n
Sanok (30 ha)
n
Pustkow (7 ha)
n
Jaroslaw (9 ha)
n
Lezajsk (11 ha).
www.pmrcorporate.com
Poland: analysis of selected economic sectors
n
n
Tarnobrzeg Special Economic Zone:

Tarnobrzeg (139.36 ha)

Stalowa Wola (241.64 ha)

Nowa Deba (174.5 ha)

Staszow (97 ha)

Jaslo (47 ha)

outside the Podkarpackie voivodship: Radom (92.65 ha), Wroclaw-Kobierzyce
(281.96 ha)

the following buildings are currently offered to prospective investors:
n
a 2,340 m2 production hall
n
a 1,900 m2 production hall.
Katowice Special Economic Zone has the following investment sites in diverse parts of
the Slaskie voivodship, which have excellent transportation infrastructure (proximity of
motorways, expressways and railroads).
www.pmrcorporate.com
127
128
Source: PMR, 2006
Projects improving the aviation
infrastructure
Business Support institutions
Road density (the national average =
2
81 km per 100 km )
Labour effectiveness ratio
(the entire country = 100)
Gross pay ratio (entire country = 100)
Special economic zones
RESEARCH AND DEVELOPMENT
institutions
Secondary schools educating aviation
professionals
Universities educating aviation
professionals
Sub-suppliers
Small and medium enterprises
Large companies
88
Aviation Valley Association
85
72 km/100 km
71
2
2
Lublin University of
Technology
State Higher Vocational
School of Chelm
PZL-Swidnik
Lubelskie
72
79 km/100 km
Institute of Aviation of Warsaw
Technical Institute of Military ITWL
Warszawa
Euro-Park Mielec Special Economic Zone
Tarnobrzeg Special Economic Zone
Rzeszow University of Technology
Arkom (tools),
El-Automatyka (machine tools),
HSW-Narzedziownia (instrumentation),
TW-Metals (a metal supplier),
Wietpol (machining),
WZK Mielec (aircraft components),
Rufus (aircraft components),
ZM WSK Rzeszow (founding)
Prodrom Mielec (tools),
ZN Swidnik (tools)
CSLT Krosno
Podkarpackie
PZL-Rzeszow
PZL-Mielec
BF Goodrich Krosno
Snecma Polska
Creuzet Polska
Aviation sector in its key voivodships in Poland
2
A project concerning the
development of an
industrial zone for aviation
companies and the
construction of an airport in
the county of Bielsko
107
110
164 km/100 km
Katowice Special Economic
Zone
Marganski & Myslowski,
SSH,
3Xtrim,
Remos,
Allstar PZL-Glider
Fiat Avio
Slaskie
95
97
84 km/100 km
2
PMR068
132
129
83 km/100 km
2
Warsaw University of
Technology
Military University of
Technology
Private Aviation Schools of
Warsaw
European Technical Aviation
Secondary School of Warsaw
www.pmrpublications.com
European Technical
Aviation Secondary
School of Powodow
State Higher
Vocational School of
Kalisz
WZL no. 4 Warsaw
WSK Kalisz
P&W Kalisz
Vac Ae ro Kalisz
ETC-PZL
Mazowieckie
Wielkopolskie
Poland: analysis of selected economic sectors
www.pmrcorporate.com
Poland: analysis of selected economic sectors
6. Pulp and paper sector
Pulp and paper sector – selected locations
PMR115
Kwidzyn
Ostroleka
Swiecie
Warsaw
Kostrzyn
Konstancin-Jeziorna
Kielce
Krapkowice
Klucze
Tychy
Source: PMR, 2006
www.pmrcorporate.com
www.pmrpublications.com
129
Poland: analysis of selected economic sectors
6.1. Conditions promoting investments
in the pulp and paper industry
n
Dynamic development of markets which need paper and board:

printing – Poland is considered to be the “Europe’s printing house”; the market is
growing at a fast rate of over 10% a year

packaging production – a survey conducted by PMR among the largest producers
of packaging reveals an accelerating trend of 6-8% annual market growth to
continue until 2010

the market of hygiene articles – after a passing slowdown in 2001 and 2002,
the market has been expanding over the past two years as the average pay has
grown – the estimated growth rate of 7-10%
n
low consumption of paper per one resident (87.9 kg), while the average for CEPI
countries6 is 193.4 kg, which clearly indicates the strong growth potential of the Polish
market
n
low costs of energy and water – the pulp and paper industry is characterised by high
consumption of water and energy sources; e.g. the price of water in the Kostrzyn-Slubice
Special Economic Zone is PLN 3.73/m3, while electricity is sold at a cost of PLN 0.40/kW
n
legislation effective as of 2007, aiming to regulate the timber sector, which will probably
bring the prices of the feedstock down
n
high density of forests in certain regions of Poland, including the Lubuskie, WarminskoMazurskie and Zachodniopomorskie regions
n
the community regulations require Poland to restructure and increase the efficiency of
the system for recycling paper and board packaging waste material (Directives 2004/12/
EC and 99/31)
n
convenient location in the centre of Europe, proximity to suppliers of timber (Russia,
Ukraine and Belarus) and the main markets (Germany, Austria, Sweden), which implies
low transport costs
n
political and economic stability, the EU membership.
6.2. Traditions of the pulp and paper industry
The Confederation of European
Paper Industries – the association of
companies from the paper and pulp
industry operating in 17 member
countries (Austria, Belgium, the
Czech Republic, Finland, France,
Spain, the Netherlands, Germany,
Norway, Poland, Portugal, Slovakia,
Sweden, Switzerland, Hungary, the
United Kingdom, Italy).
6
130
The pulp and paper industry is characterised by considerable consumption of the feedstock
and water, hence production plants are built near large forest areas and by rivers. The largest
plants are in Kwidzyn, Konstancin-Jeziorna, Swiecie, Kostrzyn and Ostroleka.
Poland’s paper industry has a long track record; the first paper plants, which used linen
to make paper, were set up in Poland in the 15th century. The first papermaking machine in
Poland was built in 1836 in Jeziorna, which is today’s Mazowieckie region. Before the First
World War, there were 15 paper plants in Poland, which produced a total of about 50,000
tonnes of paper a year. In the between-war period, the paper industry was not a very well
developed industry since the largest plants stayed in Slask and Pomorze, which were within
Germany’s boarders at the time. They produced over 300,000 tonnes of paper every year.
www.pmrcorporate.com
Poland: analysis of selected economic sectors
After the Second World War, Poland was reconstructed to include Slask and Pomorze.
The paper plants located therein were nationalised. The plants located in central Poland were
nationalised and expanded (Jeziorna and Kielce).
Another milestone in the development of the pulp and paper industry was the economic
transformation after 1989 and the ensuing privatisation of the sector. In the first half of the
1990s, major global pulp and paper concerns invested in Poland, including International
Paper, Stora Enso, Kimberly-Clark and Mondi Packaging.
According to GUS data, in the first half of 2006 the Polish pulp and paper industry
comprised over 3,674 businesses, of which 99% were SMEs employing not more than
250 people. The rest of the market was represented by 24 large firms with more than 250
employees (International Paper and Stora Enso Poland employ more than 1,000 people each).
The majority of these plants were established as a result of ownership changes forced on by
the post-1990 economic transformation. Depending on their business profile, these companies
can be divided as follows:
n
pulp and paper plants
n
paper or board plants
n
plants manufacturing corrugated board and packaging
n
larger plants processing paper.
The companies which have their production plants in Poland are specialised in the
following areas:
n
hygienic paper
n
newsprint
n
uncoated printing and writing wood-free paper
n
paper for manufacturing corrugated board
n
corrugated board and corrugated board packaging.
6.3. Feedstock availability
The feedstock base primarily includes timber (as primary feedstock) and waste paper (as
secondary feedstock). Timber availability in Poland is conditioned by state policy and imports
regulations. Waste paper availability mainly depends on the state policy regarding waste and
recycling.
As opposed to the European Union, Polish forests are state-owned and publicly
available. The State Treasury owns 80% of the woods. The productivity of Polish forests is
among the highest in Europe and it is still growing. In Poland, only 55% of the new forest
volume is annually cut down, while in Scandinavia, the respective ratio is 85%. In Poland,
according to projection the density will be increased to 30% of the country’s area by 2025
and to 33% by 2050. Currently, the ratio is 29%. The national forestation programme for
Poland assumes that 700,000 ha of land will be reforested by 2020.
Currently, only 17% of the feedstock used by the Polish pulp and paper industry is the
timber cut down in Polish forests; this is because the industry uses pulp wood coming from
sanitary thinning out of woods. In Poland, the timber used in the production of paper comes
mainly from state-owned forests; only a minor part comes from imports or private woods.
www.pmrcorporate.com
131
Poland: analysis of selected economic sectors
The prices of wood in Poland are slightly higher than in Western Europe, but due to
logistics costs, the final price of the feedstock is nearly the same. European prices of wood
are influenced by limited supply resulting from restrictive ecology policies of the General
Directorate of State Woods. However, this issue should be resolved in the nearest future as
the General Directorate of State Woods has prepared a revolutionary solution which should
standardise the sales of timber and liquidate the so-called grey market, and put an end to
unfair competition. The papermaking specialists perceive these changes as a great opportunity
for the pulp and paper industry. The new regulations will come into force in 2007.
Key proposed changes:
n
establishing the Forest and Timber Committee, which will determine the volume
of timber to be sold, price range, rules governing the execution of agreements and
procedures governing the sale of timber under extraordinary conditions
n
creating a forest and timber portal (an integrated information base)
n
submitting bids by purchasers through the e-drewno IT system
n
universal implementation of timber purchase guarantees.
6.3.1. Wood pulp
The structure of the consumption of wood pulp in the production of paper and board in Poland
is as follows:
n
primary wood pulp – 54.4%
n
secondary wood pulp – 31.6%
n
non-fibre feedstock – 14%.
Output, consumption, imports and exports of wood pulp
in Poland (’000 tonnes), 2001-2005
Output
Consumption
2001
2002
Source: Association of Polish Papermakers, GUS, 2006
132
Import
2003
42
41
136
37
91
494
474
420
376
298
1,254
1,224
1,194
1,022
960
802
810
790
783
753
PMR069
Export
2004
2005
www.pmrpublications.com
www.pmrcorporate.com
Poland: analysis of selected economic sectors
6.3.2. Primary fibre pulp
In Poland, wood pulp is produced by six plants; three of them produce sulphate wood pulp
(including semi-chemical pulp and CTMP), the other three produce just wood pulp. In 2005
their combined output was 1,039,500 tonnes, including 802,300 tonnes of sulphate wood
pulp, 96,400 tonnes of semi-chemical wood pulp, 64,500 tonnes of CTMP and 76,300 tonnes
of wood pulp.
6.3.3. Secondary fibre pulp
In Poland, the recycling of waste paper has grown steadily and dynamically. Through the
2001 output was 851,000 tonnes and the subsequent year’s growth was not significant,
in 2003, the production grew to 1,015,000 tonnes, reaching 1,123,600 tonnes in 2004.
Meanwhile, the consumption of waste paper jumped from 818,000 tonnes (2001) to 979,000
tonnes (2004).
In 2005 about 1,263,000 tonnes of waste paper were recycled, including 1,041,000
tonnes used to produce approximately 870,000 tonnes of secondary fibre pulp. The remaining
231,000 tonnes of waste paper were exported, mainly to Germany and Austria.
Consumption and recycling of waste paper
in Poland (’000 tonnes), 2001-2005
PMR070
818
843
908
979
1,041
851
Consumption
2001
1,015
874
1,124
1,263
Recycling
2002
Source: Association of Polish Papermakers, GUS, 2006
2003
2004
2005
www.pmrpublications.com
The dynamic growth of waste paper production is caused mainly by the restrictive EU
regulations, which oblige member states to implement an efficient system for waste sorting
and storage. In Poland, collection of waste paper relies mainly on massive suppliers, such
as shopping centres and retail chains, where the collection costs are significantly lower than
in the case of households. Other factors which have impact on waste collection include
a low price of waste paper and a still low public ecological sensitivity. Despite the numerous
drawbacks, waste paper collected in Poland fully satisfies the needs of the Polish industry.
This tendency is consistent with global trends since there are virtually no countries which
would struggle with waste paper shortages; on the contrary, there is too much waste paper,
which, in view of the need for a balance between demand and supply, pushes waste paper
prices down.
www.pmrcorporate.com
133
Poland: analysis of selected economic sectors
The Association of Polish Papermakers has disclosed that there are 48 paper and board
makers in Poland, including:
n
five producers of paper for printing and writing uses
n
eight producers of paper for packaging uses
n
30 producers of hygienic paper
n
five producers of other types of paper and board.
Production, exports and imports of paper and board
in Poland (’000 tonnes), 2001-2005
Production
2001
Import
2002
2003
2,110
1,850
1,743
1,561
1,320
2,697
2,357
2,057
1,867
1,664
2,732
2,634
2,461
2,342
2,086
PMR071
Export
2004
2005
www.pmrpublications.com
Source: Association of Polish Papermakers, GUS, 2006
In 2005 a total of 2,731,900 tonnes of paper and board were produced in Poland, of which
2,109,600 tonnes were exported. At the same time, the imports of paper and board amounted
to 2,696,900 tonnes, thus, Poland’s trade balance in paper and board was negative.
Despite the fact that the consumption of paper and board in Poland has been rising,
it is still much lower than in Western European countries. In 2005 the average per capita
consumption of paper was 86.9 kg, while in Germany, the Netherlands and Finland, the
respective ratios were 242.7 kg, 249.3 kg and 288.4 kg. The figures clearly demonstrate that
the consumption of paper and board in Poland will be growing in the upcoming years. In
2005 Poland’s demand for paper and board was 3,319,200 tonnes, but the forecasts released
by the Association of Polish Papermakers predict a figure of over 3,500,000 tonnes in 2007
and 4,000,000 tonnes in 2010.
Consumption of paper and board in Poland, 2003-2005
PMR072
3,319.2
3,140.5
86.9
2,773.4
82.2
72.6
2003
Consumption (’000 tonnes)
Source: Association of Polish Papermakers, GUS, 2006
134
2004
2005
Consumption per person (kg/year)
www.pmrpublications.com
www.pmrcorporate.com
Poland: analysis of selected economic sectors
6.4. The largest producers
6.4.1. Producers of hygienic paper
Toilet paper accounts for the largest share (approx. 50%) of the Polish hygienic paper market;
furthermore, this segment also includes tissues, paper towels, napkins, sanitary towels, pads,
tampons and cotton buds.
DELITISSUE SP. Z O.O.
The company, a member of the Sofidel group of Italy, is based in Ciechanow, where it has
a plant, offices, warehouse, logistics centre and a paper mill.
n
Site location: Ciechanow, Mazowieckie voivodship
n
Origin of capital: Italy
n
Products: tissue paper, tissues, toilet paper, towel.
HANKE TISSUE SP. Z O.O.
The company was established at the beginning of the 1990s when Trebruk, a Swedish paper
concern, purchased Kostrzynskie Zaklady Papiernicze (Kostrzyn paper company). However, the
concern’s principal business concentrates on copy paper, while the machinery acquired as
part of the purchased assets of Kostrzynskie Zaklady Papiernicze could be used to produce
tissue paper. Therefore, in 1994, half of the equity interests in the newly created company
were acquired by Hanke Papier, a German company, and the new company was named Hanke
Tissue. Hanke Papier came to hold the entire share capital of Hanke Tissue in 1998.
n
Site location: Kostrzyn by the Oder River, Lubuskie voivodship
n
Origin of capital: Germany
n
Products: tissue paper, toilet paper, tissues, towels.
ICT POLAND SP. Z O.O.
Plant established in Kostrzyn in 2001; one of the three main production plants of the Industrie
Cartarie Tronchetti (ICT) concern in the world.
n
Site location: Kostrzyn by the Oder River, Lubuskie voivodship
n
Origin of capital: Italy
n
Products: tissue paper, toilet paper, tissues, towels.
KIMBERLY-CLARK S.A.
Kimberly-Clark made its first investment in Poland in 2003; it bought a Klucze-based plant
producing hygienic paper from International Paper, a US investor in the latter company, which
decided to sell a division producing hygienic paper.
n
Site location: Klucze, Malopolskie voivodship
n
Origin of capital: USA
n
Products: tissue paper, tissues, toilet paper, towels, serviettes, cellulose wadding and
articles for feminine hygiene.
www.pmrcorporate.com
135
Poland: analysis of selected economic sectors
METSÄ TISSUE S.A.
The Polish branch was established as a result of the acquisition of Warszawskie Zaklady
Papiernicze (Warsaw paper company) in 1998. At the same time, the Finnish concern
purchased equity interests in Zaklady Papiernicze Krapkowice (Krapkowice paper company),
which was finally acquired in 2001.
n
Site location:Konstancin-Jeziorna, Mazowieckie voivodship
Krapkowice, Opolskie voivodship
n
Origin of capital: Finland
n
Products: toilet paper, towels.
6.4.2. Paper producers
ARCTIC PAPER KOSTRZYN S.A.
As Hanke Tissue, Arctic Paper Kostrzyn was set up as part of the privatisation of Kostrzynskie
Zaklady Papiernicze. Arctic Paper has been the owner of the plant since 1993. In 2003, as
a result of Arctic Paper’s consolidation, the company was renamed from Kostrzyn Paper S.A.
to Arctic Paper Kostrzyn S.A. Today, its total employee strength is 445 persons.
n
Site location: Kostrzyn by the Oder river, Lubuskie voivodship
n
Origin of capital: Sweden
n
Products: offset paper.
INTERNATIONAL PAPER – KWIDZYN S.A.
The company named Zaklady Celulozowo-Papiernicze w budowie (cellulose and papermaking
company under construction) was established in 1972. In 1991 it was transformed into
a state-owned company, which was a step towards full privatisation, which took place
in 1992 when it was purchased by International Paper, the world’s largest firm in the industry.
Currently, the company is headquartered in Warsaw; it has production plants in Kwidzyn and
a financial-accounting centre in Krakow. International Paper Kwidzyn S.A. is one of Poland’s
largest exporters – over a half of its output is exported, mainly to the EU states. The company
employs over 1,200 persons.
n
Site location: Kwidzyn, Pomorskie voivodship
136
n
Origin of capital: USA
n
Products: bleached pulp, GC, GT, GD, PTF coated board, envelopes, paper for laser
printers, writing paper, newsprint paper, copy paper, offset paper, packaging paper,
(solid, cover, coated) board.
www.pmrcorporate.com
Poland: analysis of selected economic sectors
MONDI PACKAGING PAPER SWIECIE S.A.
Mondi Packaging Swiecie S.A. is part of the international group Mondi Packaging Group. The
company was established in 1997 when the Framondi NV consortium bought 59.88% of the
share capital of Zaklady Celulozy i Papieru (a pulp and paper company) of Swiecie. In 1998 the
company was named Frantschach Swiecie S.A. but finally, in 2005, took the name of Mondi
Packaging Paper Swiecie S.A. The Mondi Group also has plants in Mielec, Solec, Bystrzyca,
Dorohusk and Warsaw. The company employs approximately 950 persons in Poland.
n
Site location:Swiecie nad Wisla, Kujawsko-Pomorskie voivodship
Mielec, Podkarpackie voivodship
Solec, Mazowieckie voivodship
Bystrzyca, Dolnoslaskie voivodship
Dorohusk, Lubelskie voivodship
Warsaw, Mazowieckie voivodship
n
Origin of capital: Austria
n
Products: non-bleached cellulose (SA), fluff cellulose, semi-chemical wood pulp, thallic
oil, and fluting paper for corrugated board, packaging paper, sack paper.
Other major producers:
FABRYKA PAPIERU W DABROWICY SP. Z O.O.
n
Site location: Jelenia Gora, Dolnoslaskie voivodship
n
Origin of capital: Poland
n
Products: drafting, writing, drawing, waste offset, packaging and watermark paper,
parchment.
6.4.3. Largest board producers
The packaging market is one of the most dynamically developing sectors of the Polish
economy. Its total value (including but not limited to paper packaging) is estimated at over
PLN 5bn, though Poland’s per-capita use of packaging is considerably lower than in the EU
average. We predict that the packaging market will be growing at an average rate of 6-8%
a year until 2010.
All the major global producers of corrugated board and corrugated board packaging,
including: DS. Smith, SCA Packaging, Stora Enso and Smurfit Kappa.
DS SMITH POLSKA S.A.
The company was established in 1968 as Kieleckie Zaklady Wyrobow Papierowych (the Kielce
paper product manufacturer). In 1995, the company was purchased by David S. Smith, and
in 2001, it was renamed to DS. Smith Polska S.A. Currently, the company has two production
plants in Poland: the one in Kielce and a plant in Kutno, which was built in 2005. The company
employs over 600 persons.
n
Site location:Kielce, Swietokrzyskie voivodship
Kutno, Lodzkie voivodship
n
Origin of capital: UK
n
Products: computer and PE coated paper, corrugated board, corrugated and solid board
boxes.
www.pmrcorporate.com
137
Poland: analysis of selected economic sectors
SCA PACKAGING POLAND SP. Z O.O.
SCA Packaging Poland Sp. z o.o. is part of the SCA (Svenska Cellulosa Aktiebolaget) concern.
The company was incorporated in 1997, and it was also then that the first production plant
was constructed in Pila. The company produces corrugated board, corrugated board packaging
and hygienic paper (SCA Hygiene).
n
Site location:Olawa, Dolnoslaskie voivodship
Siechnice, Dolnoslaskie voivodship
Kwidzyn, Pomorskie voivodship
Poznan, Wielkopolskie voivodship
Pila, Wielkopolskie voivodship
Warsaw, Mazowieckie voivodship
n
Origin of capital: Sweden
n
Product: corrugated board, boxes.
STORA ENSO POLAND S.A.
Stora Enso Poland S.A. was formed as part of the privatisaton of Intercell and its acquisition
by Stora Enso in 2004. Intercell was established on the basis of the state-owned enterprise
Ostroleckie Zaklady Celulozowo-Papiernicze (Ostroleka cellulose and paper plant), which was
subsequently acquired by Lodzkie Zaklady Papiernicze (Lodz paper plant), which launched
a paper plant in Tychy. The company employs over 1,600 persons in Poland.
n
Site location:Ostroleka, Mazowieckie voivodship
Tychy, Slaskie voivodship
n
Origin of capital: Finland/Sweden
n
Product: cellulose (SA), semi-chemical pulp, thallic oil, liner and fluting paper for
corrugated board, packaging paper, sack paper, corrugated board and boxes.
SMURFIT KAPPA SP. Z O.O.
The company which was the Smurfit Kappa Group’s predecessor in Poland had been the
Pruszcz Gdanski plant, which was bought by the Dutch KNP BT in 1994. Two years later,
the company acquired from the State Treasury a packaging plant based in Drezdendko;
another two years later, another plant was built in Warsaw. At the same time, as a result of
the restructuring of KNP BT, the Kappa Packaging Group was established. In 2001 following
the acquisition of AssiDoman by Kappa Packaging, the Group was expanded by a plant in
Modla Krolewska near Konin. In 2002 the Jefferson Smurfit Group purchased equity interests
in a plant based in Pruszkow (former Munksjo Packaging). In 2005 as a result of the merger of
Kappa Packaging and Jefferson Smurfit, the Smurfit Kappa Group was established. It employs
approximately 900 persons in Poland.
n
Locations: Drezdenko, Lubuskie voivodship
Pruszcz Gdanski, Pomorskie voivodship
Konin, Wielkopolskie voivodship
Warsaw, Mazowieckie voivodship
Pruszkow, Mazowieckie voivodship
138
n
Origin of capital: Netherlands, USA
n
Products: corrugated board, packaging, boxes.
www.pmrcorporate.com
Poland: analysis of selected economic sectors
Other major producers:
OTOR SILESIA S.A.
n
Site location: Tychy, Slaskie voivodship
n
Origin of capital: France
n
Products: fluting paper for corrugated board, packaging paper, corrugated board boxes,
corrugated board, box board.
WERNER KENKEL SP. Z O.O.
n
Site location: Krzycko Male, Wielkopolskie voivodship
n
Origin of capital: Poland
n
Products: corrugated board, boxes.
TFP SP. Z O.O.
n
Site location: Dziecmierowo, Wielkopolskie voivodship
n
Origin of capital: Poland
n
Products: corrugated board, boxes.
EUROBOX POLSKA SP. Z O.O.
n
Site location: Przesiadlow, Mazowieckie voivodship
n
Origin of capital: a trade holding (Austria, Bulgaria, Croatia, Germany, Poland,
Romania, Ukraine, Hungary)
n
Products: corrugated board, boxes.
RAWIBOX S.A.
n
Site location: Rawicz, Wielkopolskie voivodship
n
Origin of capital: France
n
Products: envelopes, boxes, corrugated board.
BART SP. Z O.O.
n
Site location: Swiecie, Kujawsko-Pomorskie voivodship
n
Origin of capital: Poland
n
Products: corrugated board, corrugated board boxes.
POLPAK KARTON SP. Z O.O.
n
Site location: Poledno (near Swiecie), Kujawsko-Pomorskie voivodship
n
Origin of capital: Poland
n
Products: corrugated board, boxes.
MODEL TEK-PAK SP. Z O.O.
n
Site location:Czosnow, Mazowieckie voivodship
Bilgoraj, Lubelskie voivodship
n
Origin of capital: Switzerland
n
Products: corrugated board, boxes.
www.pmrcorporate.com
139
Poland: analysis of selected economic sectors
PACKPROFIL SP. Z O.O. J.V.
Site location: Kolonowskie, Wielkopolskie voivodship
Origin of capital: Poland
Products: solid board, protective board, sleeves.
6.5. Sector-specific scientific and research centres
In the between-war period (1918-1939), no university in Poland taught a papermaking
studies course (except for a one-term lecture course on paper technology at the Mechanical
Engineering Department of the Warsaw University of Technology).
After the Second World War, the severely destroyed papermaking industry was in need
of technically-trained specialists. However, this issue was problematic since a vast majority
of Polish papermaking professionals emigrated, and many of them lost their lives during the
war; additionally, foreign experts who worked in Poland before the war, returned to their
homelands. Therefore, those specialists who stayed in Poland had to undertake the task of
educating a new workforce. The educational base was provided by the Lodz University of
Technology (established in 1945) where, upon the initiative of Professor Bohdan Stefanowski,
the Section of Cellulose and Papermaking Machinery and Equipment of the Department of
Mechanics was created. Two years later (1948), Biuro Projektow Przemyslu Papierniczego
(office of designs for the paper industry) was created, which was transformed into BIPROPAP
Sp. z o.o. at a later date.
INSTITUTE OF PAPERMAKING AND PRINTING
The Interdepartmental Institute of Papermaking and Printing of the Lodz University of
Technology is a scientific and educational research unit educating a wide variety of papermaking
specialists. Established in 1970, the Institute of Papermaking and Paper Machines was a result
of the merger of the Chair of Papermaking and Paper Machines (originally, the Mechanical
Engineering Department) and the Chair of Pulp and Paper Technology (originally, the Chemical
Department).
In 1998, as a result of consistent expansion of the scientific and educational scope of its
activities by new fields, including paper processing and printing, the Institute of Papermaking
and Paper Machines changed its name to the Institute of Papermaking and Printing.
The following scientific and research activities are conducted by the Institute of
Papermaking and Printing:
n
technology for the production of fibre pulp
140
n
paper production
n
machines for the production of paper and fibreboard
n
drying and energy generation; processing machinery and equipment
n
printing machinery.
www.pmrcorporate.com
Poland: analysis of selected economic sectors
PULP AND PAPER RESEARCH INSTITUTE (ICP) of Lodz
The Pulp and Paper Research Institute was set up in October 1946 when the economy was
slowly switching from the production for military purposes to non-military production after
the Second World War. Industrial plants established at that time, including pulp and paper
units, needed a research centre which would provide services for the sector. In October
1946, the Experimental Paper Laboratory of Wloclawek was set up. It was moved to Lodz in
May 1946 and renamed to the Central Pulp and Paper Laboratory. The scope of its activities
included arbitration analyses, supervision over plant-owned laboratories, extensive training
programme, as well as scientific and research activity through conducting its own research
projects and projects to the order of the industrial sector. In 1952, by virtue of the regulation of
the Minister of the Chemical Industry, the Central Pulp and Paper Laboratory was transformed
into the Pulp and Paper Institute.
Currently, the Pulp and Paper Institute’s employee strength is 47 people, including
30 staff with university degrees and seven with Ph.D.-level degrees. The Institute has been
headed by Tomasz Malinowski, Ph.D. Eng., since 1 June 2002.
The Institute performs science and technical work and services for the pulp and paper
industry; it also organises training and courses related to its activities. The Institute also
awards certificates for paper products and administers the Office of the Standardisation
Committee for Wood Pulp, Paper, Board and their Products.
The Institute has two laboratories and five units:
n
Paper Quality Laboratory
n
Environmental Protection Laboratory
n
Certification Unit
n
Documentation and Information Unit
n
Papermaking Unit
n
Pulp Unit
n
Experimental and Production Unit.
The Paper Quality Laboratory performs research tasks and prepares opinions and
arbitration analyses for raw materials, semi-finished products, paper products, paperbased products, packaging material and packaging (concerning consistency with norms, EU
directives and technical requirements); it also designs and awards certificates for paper and
board packaging and provides specialist trainings.
The Environmental Protection Laboratory conducts research and assessment projects; its
responsibilities also include improvements to technologies for the treatment of waste and gas
emissions and the utilisation of solid waste, including measurement services, development of
new research and analytical methods, as well as drafting of applications for environmental
permits.
The Certification Unit issues certificates for the following marks: “Q” (quality-certified
marks), “B” (security mark), ecology mark, and certificates confirming compliance with
normative documents.
The Documentation and Information Unit maintains Poland’s largest specialist library
and the “Paper” thematic database.
The Papermaking Unit develops new technology processes and adapts global ones to
the domestic conditions; it also assesses and modifies supporting technologies and resources
used by Polish papermaking plants.
www.pmrcorporate.com
141
Poland: analysis of selected economic sectors
The Pulp Unit performs scientific and research work concerning new technologies
for manufacturing and bleaching fibre pulp and assesses and modifies applied technology
processes; it also undertakes analyses of plant feedstock.
The Experiment and Production develops technologies for producing various clearing,
insulation and special-purpose materials and produces these materials. The unit is responsible
for the development of technologies for industrial manufacturing of technical paper and
makes classic laid paper for restoration and archiving purposes.
WOOD TECHNOLOGY INSTITUTE
The Wood Technology Institute was established by the Minister of Forestry on 1 January 1952.
It is a research unit whose scope of responsibilities includes issues relating to wood processing
and use. The Institute conducts research and development, training and publishing activities;
it also conducts studies and undertakes certification and standardisation tasks.
The Institute issues opinions and performs surveys, certifications and expert opinions
concerning the following matters:
n
properties of wood and wood-based products
n
adhesives and bonding processes
n
protecting wood and wood-based products against aging
n
impregnation and modification of wood and wood-based products
n
chemical processing of wood
n
woodworking
n
production of sawmill wood and wood-based products
n
furniture technology
n
machinery ergonomics
n
noise control, protection against dust and fire
n
economics, production organisation and forecasting.
BIPROPAP SP. Z O.O.
BIPROPAP continued the business of the Office of Studies and Designs for the Papermaking
Industry, which was established in Lodz in 1946. BIPROPAP renders services to customers in
the pulp, paper and paper-processing industries. Its range of services includes:
n
development of investment programmes
142
n
location surveys
n
designing and workshop drawings
n
business plans, economic analyses, marketing
n
erection and start-up supervision
n
procurement assistance
n
valuations (of machinery, equipment, costs and investments).
www.pmrcorporate.com
Poland: analysis of selected economic sectors
INTERPROJEKT SP. Z O.O.
The company conducts research and analytical projects in the following fields:
n
feasibility analyses for new projects and modernisation undertakings
n
technical and economic surveys, advisory services
n
designing (of preliminary and final stages) for complete plants producing fibre pulp and
paper
n
project supervision.
PMPOLAND S.A.
The company is active in the following areas:
n
delivery of equipment for the papermaking industry, including machinery for preparing
of wood pulp, machinery for producing paper and board, finishing and processing
machinery
n
execution of designs for paper plants, including complete units, process lines and
machinery modernisation; the company can be a general supplier, a general contractor
or a project coordinator
n
provision of planning, designing, engineering and management services for the pulp
and paper industry
n
provision of spare parts for machinery
n
advisory concerning production technology
n
services indirectly related to the paper industry.
6.6. Availability and cost of qualified staff
In addition to feedstock and energy, the availability of qualified staff is the major factor with
an impact on investments in the pulp and paper sector.
6.6.1. Education
The Institute of Papermaking and Printing of the Lodz University of Technology is the only
scientific unit in Poland which teaches papermaking specialists. It provides its graduates
with the knowledge of modern production processes concerning technology, machinery
and equipment, their engineering and development, as well as with the expertise in human
resources management in papermaking, printing and related industries. Over 1,200 students,
including 40 foreigners, have graduated from the Institute so far.
Furthermore, there are a number of schools which provide education at specialisations
indirectly associated with the papermaking industry, including wood industry and printing
schools.
www.pmrcorporate.com
143
Poland: analysis of selected economic sectors
Universities
n
n
n
Agricultural University of Poznan:

Faculty of Wood Technology

Faculty of Forestry
Warsaw Agricultural University:

Faculty of Wood Technology

Faculty of Forestry
Agricultural University of Krakow:

Faculty of Forestry.
Secondary schools
n
Complex of Wood Industry Schools in Lomza
n
Complex of Wood Industry and Forestry Schools in Ruciane Nida
n
Complex of Wood Industry and Environmental Protection Schools in Zwierzyniec
n
Complex No. 1 of Vocational Schools in Stargard Szczecinski
n
Wood Industry Secondary Technical School in Kalwaria Zebrzydowska
n
Karol Brzostowski Complex of Basic Vocational Schools in Suwalki
n
The Complex of Mechanical Engineering and Wood Industry Schools in Przemysl
n
Construction and Wood Industry Basic Vocational School in Poznan
n
Complex of Basic Vocational Schools in Ilawa
n
Complex of Wood Industry Schools in Bydgoszcz
n
Printing Secondary School at the Complex of Chemical Schools in Bydgoszcz
n
Printing Secondary School in Lodz
n
Printing Secondary School in Garwolin
n
Private Printing Secondary School in Wyszkow
n
Printing Secondary School in Warsaw
n
Non-Public Supplementary Secondary Printing School in Warsaw
n
Printing Secondary School in Miejsce Piastowe.
The Polish paper sector comprises over 35,000 people of various professions; usually,
they are employed in large companies with a few hundred staff on average. According to the
Association of Polish Papermakers, the average employment in pulp and paper companies was
36,000 (2005) (on the basis of a survey of 182 largest companies). The average employment
has been rising steadily since 2003, at a rate of 1,000 persons a year (2003 – 34,000 persons,
2004 – 35,000 persons).
The average gross pay in the pulp and paper industry is about PLN 2,600 (€666). In 2003
the average gross salary was PLN 2,619; in the following year, it fell slightly to PLN 2,606. In
2005 it reported considerable growth, achieving PLN 2,659.
144
www.pmrcorporate.com
Poland: analysis of selected economic sectors
Average employment and pay in the pulp and paper industry
in Poland, 2003-2005
PMR073
36,000
35,000
34,000
2,659
2,620
2,607
2003
2004
Average employment
Source: Association of Polish Papermakers, GUS, 2006
2005
Average pay (PLN)
www.pmrpublications.com
6.7. Availability of investment sites
In the analysis of the paper sector, we focused on the regions where the largest companies
from the sector are active, which, due to limited access to a qualified workforce, is one of the
more relevant factors conditioning investments. The other relevant factors include access to
feedstock and appropriate infrastructure.
6.7.1. Lubuskie voivodship
n
Proper supply of feedstock:

n
n
the highest density of forests in Poland (49% of the voivodship’s area is covered
by forests).
Good climate:

the longest vegetative period in Poland

the average annual temperature of roughly +8°C.
Numerous sawmills across the voivodship:

third position in Poland in terms of wood acquisition

5.8% of the output sold of the domestic wood industry comes from the Lubuskie
voivodship

the voivodship’s timber industry accounts for 9.5% of Polish exports.
n
Timber industry traditions of a few decades,
n
Steady development of the sector through the presence of major foreign companies,
including:

Hanke Tissue

ICT Poland

Arctic Paper

Smurfit Kappa.
www.pmrcorporate.com
145
Poland: analysis of selected economic sectors
6.7.2. Mazowieckie voivodship
n
n
The proximity of the Warminsko-Mazurskie voivodship, which has good supply of the
feedstock:

forests cover 27.8% of the voivodship’s area

leader in terms of deciduous and coniferous sawn timber output (477.2 m3 of wood
can be obtained from one hectare of forest in the region; the national average
is 321.4 m3).
Steady development of the sector through the presence of major foreign companies,
including:

Delitissue

Metsa Tissue

Mondi Packaging

Stora Enso

Smurfit Kappa

Eurobox

Model Tek-Pak.
6.7.3. Warminsko-Mazurskie voivodship
n
n
n
Appropriate supply of feedstock:

forests cover 27.8% of the voivodship’s area

possibility of acquiring large volumes of feedstock for furniture production.
Long-established timber industry traditions:

leader in terms of deciduous and coniferous sawn timber (477.2 m3 of wood
can be obtained from one hectare of forest in the region; the national average
is 321.4 m3),

leading region in terms of the exports of furniture and woodworking products
(approx. 14.3% market share in the domestic production of furniture).
Proximity of voivodships with large wooded areas:

n
potential for cooperation between producers and between subcontractors.
Warminsko-Mazurska Special Economic Zone.
As part of the public aid offered by the state, corporate investors in the WarminskoMazurska Special Economic Zone can enjoy tax breaks on income on two bases: capital
expenditure made or new jobs created. The Warminsko-Mazurska SEZ sill has over 200 ha of
investment land available.
146
www.pmrcorporate.com
Poland: analysis of selected economic sectors
6.7.4. Wielkopolskie voivodship
n
The availability of the feedstock:

the proximity of the Zachodniopomorskie voivodship, which has high forest
density

forest density of 34.3%, (the national average – 28.4%)

multi-purpose forests (including commercial forests) – 72.5%

prevalence of public forests: total area of forests: 785,500 ha, including 776,800
ha of public forests.
n
Kostrzyn-Slubice Special Economic Zone
An entrepreneur commencing business activities in the Kostrzyn-Slubice Special
Economic Zone is entitled to draw on regional aid in the form of tax breaks. Investors
can enjoy tax breaks on income on two bases: capital expenditure made or new jobs
created. The Kostrzyn-Slubice SEZ sill has over 360 ha of investment sites available.
n
Steady development of the sector through the presence of the following major foreign
companies, including:

SCA Packaging

Smurfit Kappa

Wernel Kenkel

TFP

Rawibox

Packprofil.
www.pmrcorporate.com
147
Poland: analysis of selected economic sectors
7. Household appliance sector
Household appliance sector – selected locations
PMR116
Kutno
Lodz
Zarow Wroclaw
Swidnica
Source: PMR, 2006
148
Radomsko
Olawa
Kobierzyce
www.pmrpublications.com
www.pmrcorporate.com
Poland: analysis of selected economic sectors
7.1. Traditions of the household appliance sector
The origins of the Polish white goods sector date back to the period after the Second World War,
i.e. the 1950s and 1960s. It was at that time that many household appliance manufacturers
were established. They were state-owned companies, and the majority of them were part of
the Predom Group (the Association of Mechanical Industries – Automated Household Goods).
The most known of those companies were:
n
Dezamet (Nowa Deba)
n
Farel (Ketrzyn)
n
Lucznik (Radom)
n
Polar (Wroclaw)
n
Wromet (Wronki)
n
Wrozamet (Wroclaw)
n
Zelmer (Rzeszow).
A large producer of washing machines and spin-dryers was Myszkowska Fabryka
Naczyn Emaliowanych Swiatowit (a plant manufacturing enamel dishes) of Myszkow.
This manufacturer produced the most popular washing-machine of these times in Poland,
named “Frania”. A vast majority of Polish refrigerators sold on the domestic market at that
time were produced by Silesia of Rybnik.
7.2. Current situation in the household
appliance sector
In most cases, the white goods sector successfully navigated through the political and economic
revolutions. After 1989, a large majority of the plants were restructured and currently operate
as independent units or were acquired by foreign investors. Now, large international concerns
have the greatest impact on the Polish household appliance sector.
Productions activities are concentrated in three voivodships: Dolnoslaskie, Lodzkie and
Wielkopolskie, but white goods are also produced in other regions of the country, including
the Mazowieckie, Slaskie and Podkarpackie voivodships.
7.2.1. The largest market players
According to our estimates, there are about 400 white goods companies in Poland. The largest
manufacturers of refrigerators, washing machines, cookers and dishwashers are globallyrecognised concerns:
n
BSH (Lodz)
n
Electrolux (Olawa, Siewierz, Swidnica, Zarow)
n
Fagor Electrodomesticos (Wroclaw)
n
Indesit (Lodz, Radomsko)
n
LG Electronics (Kobierzyce)
n
Whirlpool (Wroclaw)
n
and Poland-based Amica (Wronki).
www.pmrcorporate.com
149
Poland: analysis of selected economic sectors
Philips DAP (Bialystok) and the Polish Zelmer (Rzeszow) are the major producers of such
white goods as vacuum cleaners, microwave ovens, coffee makers, irons, electric kettles, food
processors, chip pans and toasters.
7.2.2. Output
The effects of a considerable inflow of foreign investments seen in recent years and the
resulting creation of new plants are reflected by a quick increase in production. In 2005 the
value of production sold generated by the household appliance sector was over PLN 6.4bn
(€1.6bn), which was one-sixth higher than the figure recorded in the preceding year. The
positive trend was continued into 2006.
Production of household appliances in Poland
in 2000 and 2005 (’000 items)
PMR101
Refrigerators and freezers
1,674
693
Washing machines
1,481
564
1,326
Vacuum cleaners
Electric cookers
Gas cookers
Source: GUS, 2006
403
161
1,674
847
775
2000
2005
www.pmrpublications.com
In the first ten months of 2006, the production of washing machines was almost one half
higher than in the same period of 2005. The production of refrigerators and freezers rose by
nearly a fifth, while the output of gas cookers increased by almost 8%. On the other hand, the
production of vacuum cleaners fell by more than a tenth.
It should be noted that the decisive majority of household appliances manufactured in
Poland (approx. 70-80%) is exported.
7.3. Growth prospects for the sector
The forecasts for the white goods sector in the upcoming years are optimistic. In the opinion
of representatives of the sector, Central and Eastern Europe is one of the most promising
markets in the world. In view of the economic upturn in Poland and the boom in the housing
market, the domestic white goods market has been rising at a high rate as well. According to
a report released by Dun & Bradstreet, in the first six months of 2006, the sales of household
appliances in Poland rose by 10% compared to the corresponding period in 2005.
In addition to the positive geographical location, which provides easy access to markets
in Central and Eastern Europe, Poland’s attractiveness is enhanced by relatively low labour
costs and the availability of qualified workforce, which is seen by investors who build new
plants to increase their production capacities in the country.
150
www.pmrcorporate.com
Poland: analysis of selected economic sectors
7.4. Select locations for investments
in the household appliance sector
7.4.1. Dolnoslaskie voivodship
7.4.1.1. Industrial traditions of the region
For many years, the Dolnoslaskie region has been the principal manufacturing centre of
white goods in Poland. Polar and Wrozamet, Poland’s largest manufacturers, were based
in this region where also an extensive network of sub-suppliers was developed. Currently,
the production of household appliances is one of the business priorities provided for in the
development strategy for the region.
7.4.1.2. Large companies operating in the household
appliance sector
At the end of 1990s, Wrozamet was bought by Fagor Electrodomesticos, a Spanish concern;
Polar was purchased by Whirlpool in 2002. The investors built new production lines and
considerably extended the operating capacities of the acquired plants. The past few years
saw considerable investments. In addition to the two firms mentioned above, another major
investor in the region was the Swedish Electrolux, which built plants in Olawa, Swidnica and
Zarow. Furthermore, LG Electronics of Korea commenced the construction of a refrigerator
plant in Kobierzyce near Wroclaw.
Today, thanks to the investments totalling a few hundred million euro, a few thousand
new jobs were created in the Dolnoslaskie voivodship, and, next to the Lodzkie voivodship,
the region is still the white goods manufacturing centre in Poland. It should be added here
that the establishment of the white goods manufacturing cluster is to a large extent the result
of the local authorities’ efforts, which actively try to satisfy investors’ demands.
The largest companies in the household appliance sector in Dolnoslaskie voivodship
PMR102
Location
Company
Country of origin
Olawa, Swidnica, Zarow
Electrolux
Sweden
Fagor Electrodomesticos
Spain
LG Electronics
Korea
Whirlpool
USA
Wroclaw
Kobierzyce
Wroclaw
Source: PMR based on data from PAIiIZ and SEZs, 2006
www.pmrcorporate.com
Business profile
Manufacture of washing machines,
cookers and dishwashers
Manufacture of washing machines,
refrigerators and dishwashers
Manufacture of refrigerators
Manufacture of refrigerators, cookers,
dishwashers and ovens
www.pmrpublications.com
151
Poland: analysis of selected economic sectors
7.4.1.3. Business support and scientific and research institutions
In the region, there are many institutions which can provide assistance conducting investments.
They include:
n
Wroclaw Branch of the Industrial Development Agency (ARP) (www.arp-sez.pl)
n
Wroclaw Branch of the British-Polish Chamber of Commerce (www.bpcc.org.pl)
n
Lower Silesian Regional Development Agency (DARR) (www.darr.pl)
n
Lower Silesian Chamber of Commerce (DIG) (www.dig.wroc.pl)
n
Lower Silesian Chamber of Craft (DIR) (www.izbarzemieslnicza.com.pl)
n
Lower Silesian Chapter of the BCC (www.bcc.org.pl)
n
Lower Silesian Centre of Advanced Technologies – the Technical University of Wroclaw
(DCZT) (www.dczt.wroclaw.pl)
n
HRK – a country-wide human resources consultancy (www.hrk.pl)
n
Institute of IT Systems for Automation and Measurement (IKSAiP) (www.iksaip.pop.pl)
n
Karkonosze Agency for Regional Development (KARR) (www.karr.pl)
n
Centre for Knowledge and Technology Transfer at the Wroclaw University
(www.otwt.uni.wroc.pl)
n
Sudety Industrial and Commerce Chamber (SIPH) (www.siph.pl)
n
Wroclaw Industrial Park (WPP) (www.wpp.wroc.pl)
n
Wroclaw Technology Park (WPT) (www.technologpark.pl)
n
Wroclaw Centre for Technology Transfer of the Wroclaw University of Technology
(www.wctt.pl)
n
Western Commercial Chamber (ZIG) (www.zig.pl).
There are four special economic zones located in the Dolnoslaskie voivodship:
n
Kamienna Gora Special Economic Zone for Medium Business (www.ssemp.pl)
n
Legnica Special Economic Zone (www.strefa-legnica.com)
n
Tarnobrzeg Special Economic Zone (www.tsse.pl)
n
Walbrzych Special Economic Zone “Invest-Park” (www.invest-park.com.pl)
Special economic zones are specific areas for conducting business activities on
preferential terms. Investors can enjoy a corporate income tax relief of up to 50% of capital
expenditure made or the value of two-year’ employment costs. In addition to well-prepared
land, the zones’ authorities provide enterprises with assistance in starting investment projects
in the zone.
7.4.1.4. Workforce availability
From the investors’ point of view, the region’s strength is the relatively plentiful availability of
qualified workforce.
Despite a steady decline in the region’s unemployment rate in the recent years, the
number of people without jobs in the Dolnoslaskie region is still among the highest in Poland.
As at the end of October 2006, the registered unemployment rate was 16.8%, which was
3.4 p.p. lower than in the same period of 2005. Much lower unemployment is recorded in
Wroclaw where the registered unemployment rate was 8.5% as at the end of October 2006.
152
www.pmrcorporate.com
Poland: analysis of selected economic sectors
More than a half of the unemployed in the Dolnoslaskie voivodship (i.e. about 100,000
persons) have vocational education (secondary or basic). Despite a relatively high number
of the unemployed, as a result of rising emigration for financial reasons and a considerable
inflow of investments in the region, entrepreneurs are starting to find it increasingly more
difficult to find employees with appropriate technical qualifications. More than a third of the
unemployed in the region have primary or lower-secondary education, while a relatively low
percentage of about 5.5% have higher education.
Unemployment structure in Dolnoslaskie voivodship
as at the end of September 2006
PMR103
Number of the unemployed
192,798
10,572
42,923
15,027
57,488
Total:
higher education
secondary vocational education
secondary general education
basic vocational education
Percentage share
100.0%
5.5%
22.3%
7.8%
29.8%
www.pmrpublications.com
Source: GUS, 2006
In terms of the student population, the Dolnoslaskie region ranks fourth in Poland. In 2005
nearly 170,000 students studied at 34 higher-education schools, while the number of
graduates amounted to 33,000.
Almost 137,000 students study in Wroclaw which is home to 26 higher-education
schools. Every year, more than 26,000 students graduate from Wroclaw universities.
The Wroclaw University of Technology is the largest technical school in the region, with
over 32,000 students attending that university every year. The Wroclaw University provides
education at many of its technical departments as well. The Dolnoslaskie voivodship is the
fourth largest gathering of research and development specialists (approx. 8% of total R&D
workforce in the country).
Number of students and graduates of select technical specialisations
PMR105
1,067
Computer science
Production engineering
Environmental engineering
Chemical engineering
3,026
311
Mechanical engineering and robotics
Physics
211
Automatics and electrotechnology
3,606
390
161
Biotechnology
6,785
546
300
203
Material engineering 34
131
2,855
1,902
1,768
1,511
1,291
Students
Source: PMR based on data from the Regional Investor Support Centre, 2006
www.pmrcorporate.com
Graduates
www.pmrpublications.com
153
Poland: analysis of selected economic sectors
Select universities offering technical specialisations
in Dolnoslaskie voivodship
PMR104
University
Wroclaw University
Wroclaw University of
Technology
Copernicus Higher School of
Information Technology and
Management in Wroclaw
Select specialisations
astronomy
biology
biotechnology
chemistry
physics
geography
computer science
mathematics
automatics and robotics
biotechnology
chemistry
electronics and telecommunications
electrical engineering
physics, technical physics
computer science
chemical and process engineering
material engineering
environmental engineering
mathematics
mechanics and mechanical engineering
metallurgy
chemical engineering
production management and engineering
computer science
* The data shows the total number of students studying at the university,
not only the select specialisations; the data is rounded off to the nearest thousand.
Source: PMR, Regional Investor Support Centre, 2006
Number of students
(annual)*
39,700
32,300
987
www.pmrpublications.com
Additionally, the region also has 166 secondary vocational schools and 136 basic vocational
schools where a total of 37,000 students are taught.
7.4.1.5. Costs of doing business
7.4.1.5.1. Salaries and wages
In October 2006 the gross average monthly pay in the enterprise sector in the Dolnoslaskie
region was PLN 2,544 (€652), i.e. over 4% less than the national average.
Comparing the remuneration earned in capital cities of regions in the first nine months
of 2006, Wroclaw’s workers were paid less than their counterparts in Warsaw, Katowice,
Gdansk, Poznan or Krakow, i.e. PLN 2,529 (€648), i.e. 27% less than in Warsaw.
A situation slightly changes when the pay in industry is concerned – here, the
Dolnoslaskie voivodship reports much higher salaries than the majority of other voivodships.
Only residents of the Mazowieckie and Slaskie regions employed in the industrial sector earn
higher wages. This year’s growth of salaries paid in the industrial sector of the Dolnoslaskie
voivodship has been the highest in Poland. However, it should be noted that this is largely
attributable to the presence of the copper giant KGHM in the region.
154
www.pmrcorporate.com
Poland: analysis of selected economic sectors
Gross pay (PLN) in Dolnoslaskie voivodship,
by select positions, spring 2006
PMR106
R&D Quality assurance
Engineering
Production
Position
Average
Production Department Manager
6,670
Production Planning Specialist
3,838
Maintenance Specialist
3,161
Production Group Manager / Foreman
3,761
Team L eader
2,980
Mechanic
2,785
Electrician
2,599
Locksmith
3,070
Turner
2,165
Fitter
1,672
Production Operator
2,143
Fork lift Operator
1,948
Line Quality Controller
1,750
Line Worker
1,935
Cleaner
1,295
Production Process Engineer
3,632
Constructor – Engineer
3,749
Quality Specialist
3,542
Laboratory Specialist
2,606
Research and Development Specialist
3,950
Source: AG TEST Human Resources, “Salary report – Spring 2006”
www.pmrpublications.com
7.4.1.5.2. Office space rental costs
According to a report released by Jones Lang LaSalle in June 2006, rental costs in Wroclaw
are at the initial stage of moderate growth trend and stand at about €14-15/m2/month for top
class A office space and €8-13/m2/month for class B office space and office space in tenement
houses. Average maintenance costs are about €2.5/m2/month. This means that office space
rental costs in Wroclaw are lower than in Warsaw or Krakow.
In other cities and towns of the Dolnoslaskie voivodship, the average lease rent is in the
range of €5-8/m2 a month.
www.pmrcorporate.com
155
Poland: analysis of selected economic sectors
7.4.1.5.3. Warehouse space rental costs
According to Cushman & Wakefield, the rent for warehouse space outside of Warsaw is
€3-4/m2 (based on a report released early in 2006).
7.4.1.5.4. Transport access
The geographical position and a relatively well-developed transport infrastructure – compared
to other regions – attract investments to the Dolnoslaskie region. However, it should be added
that there are considerable disparities in infrastructure development depending on a specific
part of the region.
The location of the Dolnoslaskie voivodship in southwest Poland provides investors
with a relatively easy access to countries in Central and Eastern Europe and to markets in
Western Europe.
The Dolnoslaskie region has the following advantages:
n
convenient car transportation links – international routes: E40, E36, E65 and E67
n
a well-developed railway system – international railway routes E30 (connecting Germany
and Ukraine) and E59 (connecting the complex of Szczecin-Swinoujscie harbours with
the south of Europe)
n
a dynamically developing airport in Wroclaw offering flights to many European cities
n
a river port on the banks of the Oder River, enabling transport and transit by river.
Wroclaw is among the biggest railway nodes handling passenger and freight traffic
in Poland. It has connections to Leszno-Poznan, Opole-Lubliniec, Legnica-Zgorzelec,
Glogow-Zielona Gora, Klodzko-Kudowa Zdroj, Walbrzych-Jelenia Gora, and Olesnica-Ostrow
Wielkopolski.
7.4.1.6. Availability of investment sites
Most of the investor-preferred sites are situated within the four special economic zones within
the Dolnoslaskie region. This is where most of the new investments are located. The zones
offer attractive, well-prepared sites; at the same time, by launching business activities within
a special economic zone, companies can take advantage of public aid. The following special
economic zones are located in the Dolnoslaskie voivodship:
Kamienna Gora Special Economic Zone for Medium Business
The zone covers an area of 241 ha. Investment sites are located in the following towns:
Kamienna Gora, Krzeszow, Lubawka, Nowogrodziec-Wykroty, Luban, Jawor, Piechowice and
Radomierz.
Legnica Special Economic Zone
The zone covers an area of 417 ha. It is composed of eight sub-zones. The land within the
zone is zoned for manufacturing and service-related investment projects; it is located in the
following towns and cities: Legnica, Legnickie Pole, Polkowice, Krzywa, Zlotoryja, Lubin, Sroda
Slaska and Prochowice.
Tarnobrzeg Special Economic Zone – Kobierzyce sub-zone
The Kobierzyce sub-zone comprises 260 ha of investment sites located in the Kobierzyce
commune near Wroclaw. The sub-zone is managed by the Wroclaw branch of the Industrial
Development Agency.
156
www.pmrcorporate.com
Poland: analysis of selected economic sectors
Walbrzych Special Economic Zone “Invest-Park”
The zone covers an area of 939 ha. It comprises 16 sub-zones, of which 13 are located in
the Dolnoslaskie voivodship. Investment sites are located in the following cities and towns:
Walbrzych, Nowa Ruda, Klodzko, Dzierzoniow, Zarow, Jelcz-Laskowice, Kudowa Zdroj,
Swidnica, Wroclaw, Olawa, Strzelin, Strzegom and Brzeg Dolny.
7.4.2. Lodzkie voivodship
7.4.2.1. Industrial traditions in the region
The household appliance industry does not have long-standing traditions in the Lodzkie
region. For over a hundred years, the region was mainly a textile centre. The white goods
sector started to develop dynamically in late 1990s and its origins are inextricably intertwined
with the arrival of two large foreign investors. The investors in question, BSH and Indesit,
are global leaders in the industry who erected their plants in the region and attracted a wide
array of sub-suppliers. Currently, as is the case with the Dolnoslaskie voivodship, the region is
a major manufacturing centre of household appliances on a European scale, and investments
associated with the white goods sector are one of the key priorities of the development
strategy for the Lodzkie voivodship.
7.4.2.2. Large companies operating in the household
appliance sector
Select household appliance companies in Lodzkie voivodship
PMR107
Location
Lodz
Company
BSH
Country of origin
Germany
Lodz
Cablex
Slovenia
Lodz
Coko-Werk
Germany
Lodz
DSWI
Italy/Germany
Lodz
Drahtzug Stein
Germany
Lodz
EGO
Germany
Lodz
Hirsch Porozell
Austria
Lodz
HSV
The Netherlands
Lodz, Radomsko
Indesit
Italy
Lodz
Mar-Mit
Poland
Lodz
Mecalit
Germany
Lodz
Prettl Elektrotechnika
Germany
Kutno
Sirmax
Italy
Lodz
TEKA
Germany/Spain
Lodz
Wirthwein
Germany
Source: PMR based on data from PAIiIZ and SEZs, 2006
www.pmrcorporate.com
Business profile
Manufacture of washing machines, dishwashers and spin-dryers
Manufacture of electric leads for white goods
(mainly dishwashers and refrigerators)
Manufacture of plastic goods for white goods
(washing machine doors)
Manufacture of dishwasher baskets
Manufacture of metal wires used in the production
of white goods
Manufacture of distribution and control equipment
for tumble dryers
Manufacture of polystyrene moulds
Manufacture of polystyrene packaging
Manufacture of cookers and refrigerators
Manufacture of parts and units for white goods
Manufacture of components for white goods
Manufacture of control equipment for automatic
washing machines
Manufacture of plastic goods for the white goods industry
Manufacture of cookers, hotplates and hoods
Manufacture of rubber and plastic units for tumble dryers
www.pmrpublications.com
157
Poland: analysis of selected economic sectors
BSH and Indesit are still among the largest enterprises in the white goods sector within
the Lodzkie region. In recent years, both firms have increased their production capacities
and erected new plants in the region. Commissioned in December 2006, Indesit’s plant in
Radomsko is its third establishment in the Lodzkie region. Additionally, Indesit has placed
a logistics centre in the voivodship, too.
Overall, BSH and Indesit have attracted over ten contractors, and some other also plan
to settle in the region.
7.4.2.3. Business support institutions
There are many business support institutions active in the region, which can provide assistance
to investors. They include:
n
Agency for the Development of the Kutno Region (www.arrk.kutno.net.pl)
n
Incubator Foundation (www.inkubator.org.pl) – support for enterprises in the Lodzkie
voivodship, it assists in establishing and developing SMEs and, thus, in creating new jobs
n
Foundation for the Development of the Zelow Commune (www.frgz.pl)
n
Foundation for the Development of Enterprises of Lodz (www.frp.lodz.pl)
n
Lodz Regional Development Agency (www.larr.lodz.pl)
n
FPL (www.fpl.com.pl) – a human resources consultancy
n
Adecco (www.adecco.pl) – a human resources consultancy
n
Randstad (www.randstad.pl) – a human resources consultancy.
The Lodz Special Economic Zone is located within the Lodzkie region (www.sse.lodz.pl);
it offers a wide range of investment sites and assistance in project start-up. Investors who
decide on conducting their activities within the zone can apply for public aid, including
a corporate income tax relief of up to 50% of capital expenditure made or of the value of twoyear’ employment costs.
n
Other forms of support provided to enterprises in the Lodzkie voivodship include:
Belchatow-Kleszczow Industrial and Technology Park
n
Kutno Agro-Industrial Park
n
Boruta Zgierz Industrial Park.
7.4.2.4. Workforce availability
The population of the Lodzkie voivodship is approximately 2.5 million people; with nearly
800,000 residents, Lodz is the second most-populated city in Poland.
The industrial sector of the region gives jobs to approximately 175,000 people. At
the same time, in October 2006 the unemployment figure for the Lodzkie voivodship was
almost 162,000. The registered unemployment rate was 14.9% at that time (12.3% for Lodz).
However, in recent quarters, unemployment has sharply fallen.
People with primary and lower-secondary education make up the largest group of the
unemployed in the region; similarly, the group of workers with vocational education (basic
and secondary) is large as well. Conversely, individuals with higher education account for
a little more than 6% of all the unemployed in the region.
158
www.pmrcorporate.com
Poland: analysis of selected economic sectors
Unemployment structure in Lodzkie voivodship
as at the end of September 2006
PMR108
Total:
higher education
secondary vocational education
secondary general education
basic vocational education
Number of the unemployed
167,299
10,184
35,123
15,967
46,784
Percentage share
100.0%
6.1%
21.0%
9.5%
28.0%
www.pmrpublications.com
Source: GUS, 2006
The Lodzkie region is Poland’s sixth largest academic centre in terms of the student population.
In 2005 over 131,000 students (24,000 graduates) studied at 27 universities in the region,
including approximately 21,000 students (2,700 graduates) at technical specialisations. Lodz
is the region’s academic heart, with a student population of over 120,000 and 22 higher
schools and about 30 institutes and scientific and research units. The number of Lodz students
is growing rapidly; in the past six years, Lodz has been one of the three cities in Poland where
the number of students has risen the most rapidly (the student population headcount soared
by 38.5% from 2000 to 2006).
The two largest universities based in Lodz, the Lodz University of Technology and the
Lodz University, teach almost half of all the students in the region. The most often chosen
majors include management and marketing, administration, and computer science.
Number of students and graduates of select majors
in the Lodzkie voiovdship
PMR109
14,053
7,829
3,949
1.167
1,686
1,124 633
Management Administration
and marketing
Computer
science
Students
1,061
Biotechnology Engineering*
597 73
Physics
Graduates
* The total number of students, including production engineering and management,
environmental engineering, material engineering and metal engineering.
Source: Regional Investor Support Centre, 2006
www.pmrcorporate.com
418
188
www.pmrpublications.com
159
Poland: analysis of selected economic sectors
A decisive majority of students in Lodz know foreign languages. Only 10% of the
student population claims not to know any foreign language, while 90% have intermediate
knowledge of the English language.
Proficiency in foreign languages among students of Lodz universities
PMR110
English
German
French
Italian
Spanish
Other
Very good
22.3%
4.8%
5.9%
3.6%
13.5%
9.2%
Source: Regional Investor Support Centre, 2006
Good
38.1%
20.9%
14.2%
27.0%
34.8%
28.3%
Intermediate
31.9%
42.0%
42.9%
25.2%
35.5%
42.4%
Poor
7.6%
32.3%
37.0%
43.6%
16.3%
19.9%
www.pmrpublications.com
7.4.2.5. Costs of doing business
7.4.2.5.1. Salaries and wages
From the investors’ point of view, the Lodzkie voivodship is a very attractive region in terms
of payroll costs. Compared to other voivodships, salaries and wages are at a moderate level.
For example, in October 2006 the average gross monthly pay in the enterprise sector was
PLN 2,192 (€562), nearly 18% lower than the average for Poland.
In the city of Lodz, the average pay in the first three quarters of the year was PLN 2,333
(€598), i.e. 44% below the level recorded in Warsaw and 10% down on Krakow. In the
industrial sector, in the first ten months of the year, the average salary in the Lodzkie region
was PLN 2,244 (€575) and was 14% below the national average.
160
www.pmrcorporate.com
Poland: analysis of selected economic sectors
Gross pay (PLN) in Lodzkie voivodship, by select positions, spring 2006
PMR111
Position
Average
7,114
Production Planning Manager
6,239
Production Planning Specialist
3,225
Maintenance Department Manager
8,404
Maintenance Specialist
5,730
Automation Service Specialist
3,749
Clerk – Production Department
2,405
Production Group Manager / Foreman
4,461
Team L eader
2,710
Mechanic
2,192
Electrician
2,340
Locksmith
2,031
Turner
2,366
Fitter
1,693
Production Operator
2,175
Fork Lift Operator
2,310
Packer
1,870
Line Quality Controller
2,188
Cleaner
1,118
Engineering
Production Process Engineer
3,285
Product Engineer
3,612
Constructor – Engineer
3,666
Proxy / Quality Director
13,314
Quality Control Manager
4,955
Quality Specialist
3,933
Laboratory Manager
4,034
Laboratory Specialist
2,842
Research and Development Department Manager
7,254
Research and Development Specialist
4,087
Production
Production Department Manager
Quality assurance
15,872
R&D
Production Director
Source: AG TEST Human Resources, “Salary report – Spring 2006”
www.pmrcorporate.com
www.pmrpublications.com
161
Poland: analysis of selected economic sectors
7.4.2.5.2. Office space rental costs
According to a report released by Jones Lang LaSalle in June 2006, the asking rental rates in
Lodz range from €13-13.5/m2/month for top class office buildings to about €9/m2/month for
other downtown sites, depending on specific site conditions and standard. In poorer quality
buildings (B/C class), office space is available at the cost of €6/m2/month. As in other Polish
cities, maintenance charges range from €3/m2 to €4/m2 a month.
7.4.2.5.3. Transport access
An important strength of the Lodzkie region is its geographical position. The voivodship
is located in the centre of Poland, at the intersection of major transportation routes. This
gives a strategic advantage to investors who intend to operate on both domestic and foreign
markets.
The region is crossed by major national roads (no. 1, no. 2, no. 8) and international
transit routes connecting Russia and Western Europe (which is of paramount importance for
household appliance producers). In Strykow near Lodz, A1 and A2 motorway will intersect
(currently, their construction is well-advanced).
Furthermore, Lodz has a small, two-terminal international airport operating, which is
rapidly expanding. Poland’s largest airport, the Warsaw Okecie is 135 km from Lodz.
7.4.2.6. Availability of investment sites
Office and storage space
Lodz has a limited amount of modern office space (approx. 90,000 m2). Due to considerable
demand for modern office space from international enterprises, in most of the modern
buildings nearly all office space has been leased out.
According to Jones Lang LaSalle, in June 2006 18,700 m2 of office space was being
constructed or refurbished, and office space of 7,500 m2 was at the planning stage.
However, the stock of lower-standard office space in the Lodzkie voivodship is much
larger; there is also a lot of office space available in buildings which require renovation.
On the other hand, the region has a considerable amount of warehouse space.
Available sites
Most of the preferred sites are located within the Lodz Special Economic Zone. It occupies an
area of 459 ha, offering attractive investment sites in the Lodzkie voivodship and in the city of
Lodz; investors in the zone can also enjoy certain tax breaks.
162
www.pmrcorporate.com
Poland: analysis of selected economic sectors
The Lodz Special Economic Zone comprises 19 sub-zone located in the following cities,
towns and communes:
n
Ksawerow
n
Kutno
n
Leczyca
n
Lodz
n
Ozorkow
n
Piotrkow
n
Radomsko
n
Rawa Mazowiecka
n
Sieradz
n
Slawno
n
Strykow
n
Tomaszow Mazowiecki
n
Wroblew
n
Zgierz.
In several sub-zones, all the sites are occupied. Land is still available to investors include
Lodz, Kutno, Rawa Mazowiecka, Radomsko, Piotrkow, Leczyca, Tomaszow Mazowiecki,
Sieradz and Ozorkow.
www.pmrcorporate.com
163
Poland: analysis of selected economic sectors
List of graphs
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
164
Planned motorway network in Poland�� 14
Real GDP growth rate in Poland (%), 2001-2007�� 16
Industrial output growth in Poland (%), 2001-2007�� 17
Annualised inflation in Poland (%), 2001-2007�� 17
Unemployment rate in Poland (%, eop), 2001-2007�� 18
Foreign trade in Poland (€ bn), 2001-2007�� 18
Location of SEZs by voivodships in Poland, 2006�� 22
BPO sector – selected locations�� 23
Number of students and graduates in Wroclaw (thousands), 2000-2006�� 26
Number of students and graduates of largest academic institutions
in Dolnoslaskie�� 26
Number of students and graduates of select specialisations
in Wroclaw academic institutions, 2004/2005�� 27
Percentage of students in Wroclaw proficient in English�� 27
Percentage of students in Wroclaw proficient in German�� 28
Number of students and graduates in the Lodzkie voivodship (thousands),
2001-2006�� 31
Number of students and graduates of select specialisations in Lodzkie�� 32
Number of students and graduates in Lublin (thousands), 2000-2006�� 35
University graduates in 2004/2005 academic year, by specialisation�� 36
Percentage of voivodship residents declaring
knowledge of select languages, Q1 2006�� 36
Number of students and graduates in Krakow (thousands), 2000-2006�� 40
Five most popular specialisations at Malopolskie academic institutions
(nubmer of institutions offering a given specialisation)�� 41
Largest academic centres in Poland, by student number (thousands),
2005/2006�� 45
Number of students and graduates of largest universities in Mazowieckie�� 46
Number of universities offering select specialisations, 2005/2006�� 46
www.pmrcorporate.com
Poland: analysis of selected economic sectors
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
35.
36.
37.
38.
39.
40.
41.
42.
43.
44.
45.
46.
47.
48.
49.
50.
51.
52.
53.
Largest higher education schools in Slaskie, by number of students�� 49
Number of students studying select specialisations in Slaskie�� 50
Number of students and graduates in Poznan (thousands), 2000-2006�� 54
Number of graduates with most popular specialisations in Poznan�� 54
High-tech sector – selected locations�� 57
Number of R&D employees in Poland, by type of institution�� 58
Number of students and graduates of select technical specialisations
in Dolnoslaskie voivodship�� 61
Number of students in Torun and Bydgoszcz, 2001-2006�� 65
Number of university researchers: Warsaw vs. other regions�� 76
Number of scientific institutions: Warsaw vs. other regions�� 76
Shares of voivodships in revenues of the Polish IT sector, 2005�� 81
Number of students in Pomorskie voivodship by type of tertiary school,
2005/2006�� 82
Automotive sector – selected locations�� 96
Shares in the passenger car output of Poland, January-October 2006�� 99
Shares in the delivery car output of Poland, January-October 2006�� 100
Number of students and graduates of Wroclaw
higher-education schools (’000), 2000-2006�� 104
Number of students and graduates of select technical departments
of Wroclaw universities�� 105
Aviation sector – selected locations�� 117
Salary (€) of the aviation engineer in Poland (presented
as the annual gross cost payable by the employer)�� 125
Salaries (€) in the aviation industry in Poland (presented
as the annual gross cost payable by the employer)�� 125
Pulp and paper sector – selected locations�� 129
Output, consumption, imports and exports of wood pulp
in Poland (’000 tonnes), 2001-2005�� 132
Consumption and recycling of waste paper
in Poland (’000 tonnes), 2001-2005�� 133
Production, exports and imports of paper and board
in Poland (’000 tonnes), 2001-2005�� 134
Consumption of paper and board in Poland, 2003-2005�� 134
Average employment and pay in the pulp and paper industry
in Poland, 2003-2005�� 145
Household appliance sector – selected locations�� 148
Production of household appliances in Poland
in 2000 and 2005 (’000 items)�� 150
Number of students and graduates of select technical specialisations�� 153
Number of students and graduates of select majors
in the Lodzkie voiovdship�� 159
www.pmrcorporate.com
165
Poland: analysis of selected economic sectors
List of tables
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
166
Poland – general information�� 12
Select demographic indicators in Poland, 2006�� 13
Passenger traffic at main airports in Poland (thousands),
2005 and Q1-Q3 2006�� 15
Poland – selected economic indicators�� 16
Main tax rates in Poland, 2006 and 2007�� 20
Select companies with service centres in Dolnoslaskie voivodship�� 25
Gross pay (PLN) in Dolnoslaskie voivodship,
by select positions, spring 2006�� 29
Select companies with service centres in Lodzkie voivodship�� 30
Declared proficiency in foreign languages among Lodz students�� 32
Gross pay (PLN) in Lodzkie voivodship,
by select positions, spring 2006�� 33
Gross wage (PLN) in Lubelskie voivodship,
by select positions, spring 2006�� 37
Select companies with service centres in and around Krakow�� 39
Language proficiency among students in Krakow, percentage
of students reporting knowledge of a given language (%)�� 41
Gross pay (PLN) in Malopolskie voivodship,
by select positions, spring 2006�� 42
Select companies with service centres in Mazowieckie voivodship�� 44
Gross wage (PLN) in Mazowieckie voivodship,
by select positions, spring 2006�� 47
Select companies with service centres in Slaskie voivodship�� 49
Gross pay (PLN) in Slaskie voivodship, by select positions, spring 2006�� 51
Select companies with service centres in Wielkopolskie voivodship�� 53
Gross pay (PLN) in Wielkopolskie voivodship,
by select positions, spring 2006�� 55
www.pmrcorporate.com
Poland: analysis of selected economic sectors
21. Select companies from the high-tech sector operating
in Dolnoslaskie voivodship�� 59
22. Select tertiary schools offering technical specialisations
in Dolnoslaskie voivodship�� 60
23. Gross pay (PLN) in Dolnoslaskie voivodship,
by select positions, spring 2006�� 62
24. Select companies from the high tech sector operating
in Kujawsko-Pomorskie voivodship�� 64
25. Select tertiary schools offering technical specialisations
in Kujawsko-Pomorskie voivodship�� 65
26. Gross pay (PLN) in Kujawsko-Pomorskie voivodship,
by select positions, spring 2006�� 66
27. Select companies from the high-tech sector operating
in Malopolskie voivodship�� 68
28. Select R&D institutions operating in Malopolskie voivodship�� 70
29. Select tertiary schools offering technical specialisations
in Malopolskie voivodship�� 71
30. Gross pay (PLN) in Malopolskie voivodship,
31.
32.
33.
34.
35.
36.
37.
38.
39.
40.
41.
42.
43.
44.
45.
46.
47.
48.
by select positions, spring 2006�� 72
Largest companies from the high-tech sector operating
in Mazowieckie voivodship�� 75
Select tertiary schools offering technical specialisations
in Mazowieckie voivodship�� 77
Gross pay (PLN) in Mazowieckie voivodship,
by select positions, spring 2006�� 78
Select companies from the high-tech sector operating
in Pomorskie voivodship�� 81
Select tertiary technical schools in Pomorskie voivodship�� 83
Number of students of select specialisations at tertiary schools
in Pomorskie voivodship�� 83
Unemployment in the Tri-City, September 2006�� 84
Gross pay (PLN) in Pomorskie voivodship by select positions, spring 2006�� 85
Office space rental costs in the Tri-City, 2006�� 86
Select companies from the high-tech sector operating
in Slaskie voivodship�� 88
R&D institutions supporting the development
of advanced technologies in Slaskie�� 89
Select tertiary technical schools in Slaskie voivodship�� 90
Number of students of select technical specialisations in Slaskie voivodship�� 91
Gross pay (PLN) in Slaskie voivodship, by select positions, spring 2006�� 92
The most popular vehicles manufactured in Poland in 1945-1989�� 98
Output of the automotive sector in Poland (thousands of units),
2000-2005 and January-October 2006�� 101
Select automotive companies operating in Dolnoslaskie voivodship�� 102
Unemployment structure in Dolnoslaskie voivodship
as at the end of September 2006�� 104
www.pmrcorporate.com
167
Poland: analysis of selected economic sectors
49. Gross pay (PLN) in Dolnoslaskie voivodship,
by select positions, spring 2006�� 106
50. Select automotive companies operating in Slaskie voivodship�� 109
51. Unemployment structure in Slaskie voivodship
as at the end of September 2006�� 111
52. The largest technical universities in Slaskie voivodship �� 112
53. Number of graduates of select technical specialisations
in Slaskie voivodship�� 112
54. Gross pay (PLN) in Slaskie voivodship, by select positions, spring 2006�� 113
55. Aviation sector in its key voivodships in Poland�� 128
56. The largest companies in the household appliance sector
in Dolnoslaskie voivodship�� 151
57. Unemployment structure in Dolnoslaskie voivodship
as at the end of September 2006�� 153
58. Select universities offering technical specialisations
in Dolnoslaskie voivodship�� 154
59. Gross pay (PLN) in Dolnoslaskie voivodship,
by select positions, spring 2006�� 155
60. Select household appliance companies in Lodzkie voivodship�� 157
61. Unemployment structure in Lodzkie voivodship
as at the end of September 2006�� 159
62. Proficiency in foreign languages among students of Lodz universities�� 160
63. Gross pay (PLN) in Lodzkie voivodship, by select positions, spring 2006�� 161
168
www.pmrcorporate.com
Poland: analysis of selected economic sectors
About PMR
PMR Ltd. (www.pmrcorporate.com)
is a publishing, consulting and market research company providing information, advice and
services to international businesses interested in Central and Eastern Europe. With highly
skilled staff, top ranked web sites and over ten years of experience, PMR is one of the largest
companies of its type in the region.
PMR Ltd. has three divisions:
PMR Publications (www.pmrpublications.com)
provides reliable market intelligence for business professionals interested in Central and
Eastern European countries. Publications by PMR analyse the business climate in the region,
in particular in the construction, retail, IT, telecommunications and pharmaceutical sectors.
PMR Publications offers both free and paid subscription newsletters, internet news portals
and in-depth reports.
PMR Consulting (www.pmrconsulting.com)
provides a wide range of services in 17 countries of Central and Eastern Europe, including
market entry feasibility studies, CI (competitive intelligence), strategic advisory, FDI assistance
(M&A and Greenfield projects), quick consulting as well as any other services and support
a company might require to enter a market, find a business partner or gain reliable information.
Our services are always tailored to the specific requirements of our clients, many of which are
Fortune 500 companies.
PMR Research (www.research-pmr.com)
is a specialised research unit of PMR Ltd. It offers a full range of market research, analytical
and marketing services: quantitative and qualitative research, preparation of sector analyses,
desk research, and database preparation services. PMR Research specialises in the provision of
services to clients from the IT, telecommunications, pharmaceutical and construction sectors.
www.pmrcorporate.com
169
Poland: analysis of selected economic sectors
Contact PMR
PMR Ltd., ul. Supniewskiego 9, 31-527 Krakow, Poland
tel. /48/ 12 618 90 00, fax /48/ 12 618 90 08 www.pmrcorporate.com
Customer service
tel. /48/ 12 618 90 30
e-mail: [email protected]
Marketing
tel. /48/ 12 618 90 20
e-mail: [email protected]
You are welcome to contact the author of the report:
Marcin Sadowski, Managing Editor
PMR Publications
[email protected]
Szymon Konop, Head of Consulting Services
PMR Consulting
[email protected]
Stathis Karaplios, Senior Consultant
PMR Consulting
[email protected]
Paweł Sionko, Economist
PMR Publications
[email protected]
Joanna Nowak, Analyst
PMR Publications
[email protected]
170
www.pmrcorporate.com
e
p
i
c
e
r
s
’
PMR ket success:
for mar
Want a hand
in turning corporate
ideas into market success?
,
a
e
d
i
n
a
e
k
a
T
,
e
c
n
e
g
i
l
l
e
t
n
i
e
add reliabl
rket
a
m
d
e
s
i
m
o
t
s
u
fold in c
ss
e
r
p
d
n
a
h
c
r
a
rese
ed
d
a
r
g
e
n
i
f
h
t
i
w
ory.
s
i
v
d
a
e
v
i
t
i
t
e
p
com
PMR Ltd. delivers more than reliable intelligence, it also specialises in a full range of market
research as well as in comprehensive management and business consultancy.
PMR Research (www.research-pmr.com) is the custom market research unit of
PMR Ltd. providing a full array of market research services including customer
satisfaction studies (consumer and B2B), brand awareness and brand image
studies, segmentation, distribution and competition studies, as well as in-depth
sector analyses using PMR Research’s proprietary methodology.
Estonia
Russia
Latvia
Lithuania
Russia
Belarus
Poland
PMR Consulting (www.pmrconsulting.com) provides a wide range of tailored
consultancy, including market entry feasibility studies, CI (competitive
intelligence), sourcing, strategic advisory, FDI assistance (M&A and Greenfield
projects), business partner searches, quick consulting, and any other services and
support a company might require.
Ukraine
Czech Rep.
Slovakia
Hungary
Romania
Slovenia
Croatia
Bos.& Herz.
Serbia
Bulgaria
Mont.
Turkey
PMR delivers:
top quality
consulting and research
Thanks to our partners in the region,
we can provide comprehensive
regional services on countries
in Central and Eastern Europe.
For more information visit: www.pmrcorporate.com

Download Report

Poland: analysis of selected economic sectors

Paperzz.com

Your Paperzz