Executive Summary

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Market Structure

The chemicals industry is one of the most important and profitable industries in Poland. The industry comprises basic chemicals, household chemicals and cosmetics, plastic products, pharmaceuticals, rubber products and fertilisers. About 10% of manufacturing companies in Poland are involved in the production of chemicals. The Polish chemicals industry is fragmented, there are about 19,000 chemical companies which employ about 200,000 people. About 80% of the chemicals companies are in the rubber and plastics segments. Poland-based Anwil Włocławek, Zaklady Azotowe Pulawy (ZAP), Zakłady Chemiczne (Zachem) and Ciech are the major players in the industry.

Business Environment

Poland occupies a strategic location in Central Europe with easy access to raw materials from Eastern Europe. The country also offers cost advantages, such as an inexpensive labour force and flexible labour laws. The Polish workforce is highly educated and includes a sizeable pool of scientists and engineers. In 2005, Poland was ranked seventh worldwide and third in Europe in terms of investment. In H106, the inflow of foreign direct investment (FDI) in Poland was EUR4.7bn (US$5.95bn). The country's total investment value is forecast to exceed EUR8bn (US$12.67bn) by end-2006.

Industry Developments

As reported in October 2006, Ciech was likely to get government go-ahead to finalise the acquisition of chemical plants Zachem and Poland-based Zakłady Chemiczne Organika Sarzyna. Czech-based petrochemicals company Unipetrol reached an agreement in September 2005 to sell its 82% stake in Czech-based Spolana to Anwil. ZAP outlined its plans to invest about PLN700mn (US$229.96mn) by 2008 in acquisitions, helping the company to have easy access to cheaper gas and raw materials. The USbased 3M reported that it has plans to establish a US$50mn adhesives plant in Wroclaw. Spain-based Sniace signed an agreement to acquire a site to build a bioethanol plant in Poland.

EU REACH Regulation

On October 29 2003, the European Commission (EC) adopted a proposal for a new European Union (EU) regulatory framework for chemicals. The new system, called Evaluation and Authorisation of Chemicals (REACH), will require companies that manufacture or import more than one tonne of any chemical substance annually to register on a central database. Implementation of REACH, slated for a 2008 launch in the EU, is likely to translate into increased costs to the tune of EUR400mn (US$488.5mn) for the Polish chemical industry. Poland is scheduled to meet REACH requirements by 2011.

Contents

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Chapter 1 - Executive Summary

Market Structure

Business Environment

Industry Developments

EU REACH Regulations

Polish Chemicals Industry SWOT

Polish Business Environment SWOT

Chapter 2 - Market Overview

Market Structure

Table: Structure Of Chemical Products Industry

Business Environment

EU REACH Regulation

Acquisitions And Finance

Projects And Expansions

Company Developments

Chapter 3 - Macroeconomic Forecast

Table: Poland - Economic Activity

Chapter 4 - Company Monitor

Anwil

Zaklady Azotowe Pulawy

Zaklady Chemiczne

Ciech

Chapter 5 - BMI Forecast Modelling

How we generate our industry forecasts

Chemicals & Petrochemicals Industry

Cross Checks

Competitive Landscape for Emerging Europe chemicals Reports: Sample of
   Companies Ranked

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Comparative company analyses and rankings by US$ sales, % market share, employee size, registration date and ownership structure. Company SWOTs on all leading international and national operators in each market, including competitive intelligence on the following: Overall geographic presence, competitive positioning against local companies; production capacity, sales and market share; joint ventures, foreign direct investment, projects and acquisitions strategy.