Focus on the polish pump industry

Pump Industry Analyst

February 1996

FOCUS ON THE POLISH PUMP INDUSTRY In this article, the Editor looks at the structure of the Polish pump industry, highlighting the challenges it faces and focusing on three companies who are successfully adapting to meet the changing needs of the marketplace. Polish industry has experienced many changes since t989 and the move to a free market economy. At that time, Poland's most important trading partner was the Soviet Union. Today, the German market accounts for almost 40 per cent of Poland's exports, while 27 per cent of Poland's imports come from Germany. Poland's industrial production is now back to 1989 levels following three consecutive years of economic growth. Rapid, export-led economic growth, combined with a population of 38.6 million, has transformed the Polish economy into a thriving emerging market which recorded a 7 per cent increase in gross domestic product in 1995. However, despite the economic growth, Poland's infrastructure remains weak. Large-scale investment is needed particu[arly in municipal water purification plants and in pollution control equipment. Much progress has been made in reducing pollution e.g. sulphur dioxide emissions were cut to 1.1 million tonnes in 1994, a 65 per cent decrease on 1989 levels. However, polIution levels remain high and large-scale investment is required, particularly in the

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industrial heartland of the south and west.

Po|ish pump industry Poland has a long tradition of pump manufacture, with many companies dating back to the last century. The Polish pump industry has a number of successful domestic pump manufacturers. These include Fapo, GZUT, Hydroster, Hydropomp, Hydro Vacuum, Instalcompact, KFP, KSK, Legmet, Leszno, Meprozet, Metalchem, Powen, SFUP, Spomasz, Tapflo, Tofama, Wafapomp, Wamag, WPH, ZDS and ZWUW. Following World War II, rauch of Polish industry, including the pump sector, was nationalised. Since 1989, a number of pump companies have been privatised and many others are working towards privatisation. Like many countries emerging from the Communist era, much of Polish industry has no recent history of competition and marketing. While a number of Polish pump companies remain weak on marketing, the Polish pump industry has very strong technical expertise. The industry has a large number of highly qualified and experienced engineers and is very strong on basic

products, particularly large pumps. The Polish pump industry retains strong ties with its traditional markets in Communist and former Communist countries. Overmanning is a big problem for the industry and many pump companies have significantly reduced the numbers employed since 1989. Other difficulties that the industry has to tackle include pollution, frequent power blackouts and the lack of investment in plant upgrades. In recent years, a large number of western pump companies have established distributors/agents in Poland, including Grundfos, ITI" Flygt, KSB, Sulzer, Wilo and Worthington. The indigenous Polish pump manufacturers are understandably concerned about this development. Poland also has many indigenous component suppliers to the pump industry. These in~ clude a number of seal manufacturers supplying products both to the domestic and export pump markets. Wafapomp and Leszno Pump Factory are two Polish pump companies with long histories of pump production. The Editor of Pump lndustr),Analyst recently visited these companies to find out how they are adapting to meer the needs of a changing marketplace.

Wafapomp Wafapomp SA (Warszawska Fabryka Pomp i Armatury), Warsaw is a state-run pump manufacturer, employing approximately 650 people with annual sales of more than US$10 million. In addition to the Warsaw plant, Wafapomp has another plant in Batoszyce, 300km north of

Warsaw and a foundry in Warsaw. Wafapomp's main customers are in the power generation, chemical, food, particularly sugar and oil and petrochemical industries. Exports account lor approx. 20 per cent of the company's sales and are concentrated on Europe, Asia and Africa. The company is currently preparing for ISO9001 and ISO9002 quality assurance certi fi cation and is also working towards privatisation. Wafapomp's product fange includes pumping engines, chemical resistant pumps, general purpose impeller pumps, immersed pumps, submerged pumps, shut-off and throttle valves and spare parts. Wafapomp's production facilities include an iron and non-ferrous foundry, a welded construction division, a mechanical working and heat treatment division and an assembly and quality control division.

Leszno Pump Factory Leszno Pump Factory (LFP) is located in a modern plant in Leszno, western Poland. The company is very aware of marketing and is investing in modern production methods, including a new elec~ric furnace. Originally founded in 1868, Leszno Pump Factory was privatised in 1992 and has an annual turnover of approximately US$15 million, of which 12 per cent is exported. Annual production exceeds 100 000 pumps. The limited liability company has 395 employees and produces pumps and components, including castings, for

February I996

Pump Industry Analyst

the Polish and export mar-

ment. ANGA has been IS0

fairs. During 1995 it organ-

helps to bring the industry

kets. Ownership

9001 -certified since April

ized a number of exhibitions

together.

of interest to the pump indus-

of the com-

pany is divided amongst

1994.

the workers who were em-

A marketing-led

ployed

tion, ANGA employs ap-

international trade fair for

prox. 120 people, including

mining, power industry and

Leszno has a licensing agree-

50 engineers and 30 produc-

metallurgy; POLAGRA, an

ment with Grundfos for

tion workers. ANGA has an-

international agro-industrial

at the time of the

privatisation.

organiza-

try including SIMMEX, an

Symposium Pompy-Pompownie,

in con-

junction with ANGA Uszczelnienia

Mechaniczne

Sp zoo and CEDOS Zaklad

pumps for single dwelling

nual sales of approximately

fair; and KOMEX, an inter-

homes. The company is ac-

US$3 million. Markets

national fair of municipal

tively working towards

served include the chemical,

maintenance equipment.

dukcyjny, recently organized

9000 certification.

petrochemical,

The 68th Poznari Interna-

a second symlposium for Pol-

LFP’s mission has three ele-

plant industries. Within Po-

IS0

oil and power

tional Fair will be held in

ish pump producers and us-

June 1996.

ers. This was held in

ments: to remain the Polish

land, ANGA has local of-

leader in rotary pumps and

fices in Gdarisk, Litdz,

Porabka-Kozubnik

to fulfill the pump demands

Rzeszow, Wroclaw and

September

of family houses and water

Zabrze.

Magazine

on I4- I5

1995. The sympo-

sium was attended by almost The Polish pump industry

supply in Poland; to be one

200 delegates, and included

needs both technical and

site visits. A small exhibition

of the most important suppli-

Exhibitions

ers of these type of pump to

Trade shows are emerging as

often lacks the financial re-

Eastern Europe; and to be

a strong forum for business

sources to pay for it. There

in Poland. Poznar’r Intema-

is a shortage of statistics on

iron in Europe.

tional Fair is one of Poland’s

the Polish pump market and

During her visit to Poland,

largest organizers of trade

as a result Polish pump com-

the producer of the best cast

I Pro-

Projektowo-Badawczy

market information, but

of Polish pump and seal manufacturers

and distribu-

tors ran simultaneously

with

the symposium. Conclusions

the Editor also visited the

panies can find it difficult to

plant of Polish seal manufac-

position themselves in rela-

As more Polish pump compa-

turer ANGA.

tion to their competitors.

nies are privatised and for-

The Polish pump industry is

eign competition

ANGA ANGA Uszczelnienia Mechaniczne

Sp zoo is

based in modern premises just outside Bielksa-Bidej southern Poland. The company manufactures and customised

served by a monthly maga-

the Polish pump industry

zine, Pnmpy-Pompownie,

faces many challenges over

ed-

ited by Mr Piotr Switalski.

the next deca,de. However,

Pntnpy-Pompownie

with its long tradition of

is pub-

lished in Polish with a lim-

in

standard

mechanical

seals for use in centrifugal pumps, mixers, compressors and other rotating equip-

intensifies,

pump production, its flexibil-

ited English content. The

ity and its willingness

magazine includes technical

adopt a marketing-driven

articles, product features and

proach to business, the fu-

interviews,

ture outlook for the Polish

to ap-

There is no pump manufac-

pump industry and for in-

turers’ association in Poland,

digenous Polish pump manu-

although Pon~py-Pompownk

facturers remains optimistic,

Contact Directory Mr Wojciech Machowski

MS Ewa Stoczczak

Mr Piotr Switalski

Director of Trade and Mar-

Marketing Director

Editor

Marketing Manager

keting

LFP Leszno

Pompy-Pompownie

ANGA Uszczelnienia

Leszczyriska Fabryka Pomp

ul Na Grobli 6

Warszawska Fabryka Pomp i Armatury

Mechaniczne

sp zoo

50-42 1 Wrociaw

Wafapomp

ul Fabryczna I5 64- IO0 Leszno

Poland Tel: + 48 7 1 72 43 06

03-23 I Warszawa ul Odlewnicza I

Poland

Fax:+4871

Poland

Spoika zoo

43-340 Kozy k/BiefskaBialej ul Wyzwolenia

550

444739

Mr Rado Banoszek

Poland

Tel: +48 65 20 85 40

Tel: +48 22 I I 22 40

Tel: +48 30 174 253

Fax:+4865

Fax: +48 22 I I 86 07

Fax: +48 30 174 485

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