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

Polish Chamber of Chemical Industry

1991-2016 25 YEARS OF THE ASSOCIATION OF THE CHEMICAL AND PHARMACEUTICAL INDUSTRY OF THE SLOVAK REPUBLIC

Development of Chemical Industry in Poland

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• PIPC – general information • Chemical Industry in Poland • Development of Chemical Industry in Poland • Perspectives and challanges

• Summary

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PIPC – general information

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• The Employers’ Organization founded in 1988

• PIPC is the organization representing the economic and social interest of the chemical industry in Poland in contacts with the administration authorities and international organizations.

Status and Activity

132 Members (covering over 60 000 emploeeys directly in sector), including:

The largest producers of chemical, refining and petrochemical sector Transport and distribution companies Representation of the foreign companies Engineering offices, consulting companies R&D institutes, etc. 11 Internal Commissions (working groups) 6 PIPC’s and EU projects

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Chemical Industry in Poland

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Chemical Industry in Poland (2015)

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0%

100%

200%

300%

400%

500%

600%

1995 1997 1999 2001 2003 2005 2007 2009 2011 2013

Production sold (mln PLN)

GHG emission (thous. t)

Energy intensity (TJ/mln PLN)

Chemical sector in Poland is part of solution: growth decoupled and emissions

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An increase of 4.7% to 254 000 jobs in 2014.

266 000

Employment

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Source: own study based on CSO data

An increase of 5.1%

to 32,3 bn EUR in 2014.

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34 bn EUR

Production sold value

5,8 8,2

9,6 11,0 11,6 12,7

14,9 17,1 16,9

19,2 21,4 21,9 22,1

25,5

29,9 31,0 31,7 32,3

34,0

1995 1997 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Production sold of the chemical industry [bn EUR]

Source: own study based on CSO data

An increase of 13.6% to 1,6 bn EUR in 2014.

Capital expenditures in the

Polish chemical industry

in 2010-2015 [ bn EUR]

10

Investments

1,8 bn EUR

1,0 1,2 1,3 1,4

1,6 1,8

2010 2011 2012 2013 2014 2015

Perspectives and challanges

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Challanges & Risks

• High and costs of regulations – energy, emissions, environment, etc. (EU and domestic) like: EU ETS Reform

• EU Industrial policies: trade, energy

• Free Trade Agreements

• EU market protection (taxes)

• Competitivness

• Feedstock dependeces (crude oil, natural gas)

• Image and position of chemical industry

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Natural gas

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production 4,2

Consumption

16,3

19

70

19

72

19

74

19

76

19

78

19

80

19

82

19

84

19

86

19

88

19

90

19

92

19

94

19

96

19

98

20

00

20

02

20

04

20

06

20

08

20

10

20

12

20

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Consumption and production of natural gas in Poland in 1970-2014

[bn m3]

12%

60%

28%

Supplies of natural gas to Poland other

import fromRussianFederation

production

89%

1%

1%

6%

0% 3%

Supplies of crude oil

Rosja Norwegia

Arabia Saudyjska Irak

Litwa Polska

Processing in 2015 – 26,5 mln t Processing in 2014 – 24,2 mln t 9,5% ↑

Crude oil

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Natural gas market / Poland

The average annual growth of chemical sector in Poland is

7,2% in 2010-2015, compered to 5,3% of the industry

production growth.

4,1%

2,9% 2,5%

1,6% 1,6% 1,6%

0,8%

JaponiaNiemcyUSAPolskaUEIndieChiny

The share of expenditure on R&D in total revenues of the chemical industry in selected regions

China India EU POLAND USA Germany Japan

Source: The European Chemical Industry – Facts and Figures 2016, CEFIC; Chemiewirtschaft in Zahlen 2016, VCI 15

4,7%

1,9% 2,6%

3,8%

4,9%

3%

The projected average annual revenue growth of the chemical market in selected regions of the world during the

period 2015-2035

Source: Prognosis of EY based on: Year-End 2015 Chemical Industry Situation and Outlook, American Chemistry Council, Chemicals 2035 – Gearing up for growth Roland Berger, Chemicals in Poland, Marketline Industry Profile

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• Polish chemical industry is still developing sector of economy with a significiant potential of investment and innovation improvement

• The business-science cooperation improvement is necessary

• Posibility of reducing negative international trade balance in chemicals

• ‚Friendly’ regulations – totaly needed!

Conclusion:

Protection and improvement of competitiveness of chemical industry: NECESSARY & NEEDED

Summary

@PolskaChemia

www.pipc.org.pl

www.polskachemia.org.pl

www.kongrespolskachemia.pl

www.programbezpiecznachemia.pl

www.chemhr.pl

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Thank you for your attention

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