Doing business with Poland
Earlier in April, 29 companies accompanied Polish Prime Minister Donald Tusk to Nigeria. Most of them were from the defence, oil and gas, mining, construction and building materials industries.
Poland, a regional power in Europe, is reassessing its foreign policy to reflect real interests: economic partnership. A survey by Institute for Market, Consumption and Business Cycles Research (IBRKK), Poland, and the Vale Columbia Centre on Sustainable International Investment (VCC) highlighted the expansion of 19 Polish multinational companies.
Buoyed by capital inflows and domestic consumption, these companies grew and then expanded across central Europe. “The largest Polish investor held $6.6 billion in assets abroad at the end of 2009.” Asseco Poland, a technology company, had the largest number of foreign affiliates: 62.
Geography, demography and culture have helped Poland. The country of 38 million is one of 20 European countries that share borders with the Baltic Sea. A survey by DHL noted a Polish exception. In terms of outward migration, Poland was ranked first worldwide – “half of Polish emigrants reside outside of Europe”.
Furthermore, in 18 years small, medium and micro-enterprises in Poland, through a combination of tax and labour regulations, have accounted for over 50 percent of GDP and employ over 70 percent of the country’s workforce. The 1.6 million-strong micro-enterprises, incentivised to ‘stay small’ or self-employed, make up the majority of Polish enterprises that power the economy.
In addition, according to a World Bank report, “Factory Europe may not be expanding as fast as factory Asia, but it has become smarter.” Advanced and emerging Europe are trading more sophisticated intermediate goods – 9 out of 10 furniture manufactured in Poland end up in living rooms, offices, kitchens, bathrooms all over the world.
The 29 companies that made up the economic delegation are looking for new markets, particularly conventional and alternative energy resources, economies of scale and competitive labour costs; seeking partners, not acquisition of strategic assets, e.g., brand names, knowledge and innovation.
Take H. Cegielski – Poznan. The company offers power plants and generating sets powered by either diesel, biofuel (jatropha, palm oil) or biomass (sewage treatment, processing and disposal of waste). Cegielski’s containerised generating sets with a capacity of 1 to 2.5 MW, equipped with a four-stroke engine, powered by diesel, natural gas or biogas, can operate for 20 years. The company is interested in establishing local business partners that will cooperate in the construction of these plants.
Another company, Energoprojekt Katowice (EPK), into design and engineering, designs power plants. EPK is actively present on the Nigerian market acting as a consultant for Niger Delta Power Holding Company of Nigeria plc and Ministry of Energy of Nigeria, having been first awarded a consultant for Omotosho I CHP and then awarded the same role for Omotosho II CHP.
Baltech Sp, a manufacturer and exporter of hardboards and flexible insulation boards (for cars, furniture, carpentry, packaging, roofs, walls and ceilings), wants to expand exports to Nigeria. Fibris, a similar company, says 20 percent of its turnover is made from exports to Nigeria. Due to Nigeria’s dynamic economy, Fibris wants to strengthen cooperation and establish new business partners.