Lublin Info Centre

The Chemical Industry In Poland And Lublin

It is said that nowadays chemistry is ubiquitous. This saying usually carries a pejorative connotation. However, it is important to emphasize how much in the domestic and global industry depends on the chemical industry - the specific multisector, which is a large network of connections between suppliers and recipients for many sub-branches and sectors of the economy.
The Chemical Industry

The great importance of polish chemical industry is best evidenced by the fact that it has been included in the Industrial Policy of Poland as one of the fundamental sectors in the development of the economy. The document was officially announced on June 9, 2021 by Ministerstwo Rozwoju, Pracy i Technologii (Ministry of Economic Development, Labour and Technology). It defines five axes of industrial development in the realities after the COVID-19 pandemic, corresponding to the key challenges that Polish economy needs to face.

As we read in the ‘Polityka Przemysłowa Polski’ (Polish Industrial Policy) report the chemical industry is one of the largest sectors of the Polish economy – together with the rubber industry it accounts for approx. 5% of the production and added value of the processing industry.

It includes the production of chemicals and final chemical products, such as technical gases, dyes, pigments, fertilizers, plastics, pesticides, paints, varnishes, soaps, detergents and other cosmetic and toilet products. It also plays an essential role in the supply of materials, subsystems, semi-finished and finished products for sectors such as machinery and metal, automotive, textiles and clothing, electrical engineering but also for electronics, construction, paper and printing, and agriculture sectors. Thanks to the automation of most industrial processes, the chemical industry is characterized by high capital intensity and low labor consumption.

Many companies operating in the chemical industry, especially large enterprises, implement Industry 4.0 solutions to increase and improve production. However, the products of the chemical industry can be found in our everyday life and surroundings – pharmaceuticals, clothing, textiles, plastic packaging, as well as computer equipment and household products

According to statistical data presented on the website of the Polska Izba Przemysłu Chemicznego (PIPC) (Polish Chamber of Chemical Industry) despite a very difficult year, the chemical sector is doing well. The products of the Polish chemical industry accounted for 20% of total industrial sold production in 2020, which corresponds to a value of PLN 243 billion. In 2020over 323,000 people were employed in the chemical sector, which is 12% of all industrial workers in Poland. These numbers are constantly growing – over 40,000 new jobs in the sector have been created over the past five years. It is worth emphasizing that according to statistic one new job in the chemical industry generates from 2 to 8 vacancies in other branches of the economy which proves not only the complexity of the sector, but also how much it affects other branches of industry,

During the pandemic, we have had a chance to experience how essential for our safety are products from the chemical industry: disinfectants, visors, personal protective equipment, laboratory equipment and medical supplies

Lublin has a strong representation of producers in the chemical industry. One of the companies that supported the health service during the pandemic by delivering its products to hospitals, schools or workplaces is Medisept Sp. z o.o., which in 2014 launched a modern factory and research center in the special economic zone.

In the ranking of the Most Valuable Polish Brands among companies representing the Polish chemical industry, Medisept was ranked 5th, what is more it came 204th among the Most Valuable Polish Brands in the ranking published by the ‘Rzeczpospolita’ daily.

The Lublin-based company reaches not only the European market, exporting its products to countries such as Croatia, Lithuania, Greece or Spain, but also to the international market, providing its services in countries such as Pakistan, Morocco or Azerbaijan and the United Arab Emirates. Currently, Medisept is building a research and development center in Lublin, which aims to enable the expansion of the company’s operations by introducing new products to the market.

The main elements shaping the Polish chemical sector are innovation and ecology. The whole of Europe is aiming to achieve climate neutrality. Following this trend, the chemical industry is constantly investing huge resources in new solutions and implementing modern technologies, so that both the production processes and the chemical product itself are friendly to the natural environment as well as to the final consumer.
According to Polish Chamber of Chemical Industry (PIPC), chemical products that are crucial for the development of new tools, processes, devices, as well as necessary for the functioning of a number of other industries, make the chemical sector a driving force for the ecological transformation.

Another company, which represents the economic pillar of the Lublin chemical industry, and which has undertaken new “green” projects on a large scale, is Grupa Azoty Puławy, one of the several production plants belonging to the Grupa Azoty S.A. (Azoty Group Inc.), which is the undisputed leader in the fertilizer and chemical market in Poland and the largest producer of nitrogen fertilizers in Europe.

The services provided by the Gupa Azoty S.A. are valued both on the Polish and international market, as evidenced by the high rate of export sales carried out by the company. The recipient of the products of Grupa Azoty S.A. is the European Union, Central and South America, but also the Far East. It is also worth emphasizing that Grupa Azoty was recognized by the ‘Rzeczpospolita’ daily as the most important company in the chemical industry in the Ranking of the Most Valuable Polish Brands, taking first place in its category.

Another company located in Lublin, with its customers all over the world is Chemnovatic, a producer and distributor of chemical raw materials, including pure nicotine, nicotine bases, flavors, glycol, glycerin, as well as ready-made liquids for e-cigarettes. Chemnovatic is about to start a new investment in the Lublin subzone of the SEZ EURO-PARK Mielec, thanks to which it will increase production capacity, warehouse and office space, as well as launch a new laboratory and production installations which are the products created as a result of over 2 years of research and development work of the company.

Among the Lublin brands operating in the chemical industry, CEGA Sp. z o.o. which creates heat-shrinkable couplings made of high-density polyethylene, should also be listed. The company is one of two manufacturers offering such solutions in Poland. The company operates not only in the country, but also serves foreign markets, distributing its products to several customers in Europe.

Although the pandemic is still affecting the global economy, it has not stopped the dynamic development of the chemical industry. At this point, it is worth mentioning Lublin companies related to the automotive industry, such as ‘Plastic Omnium Auto Inergy Poland’ Sp. z o.o. , the company that produces car parts as well as plastic fuel systems and has 135 production plants in 25 countries, including a production plant in Lublin and 25 research and development centers or ‘P.P.H. PARYS’, specializing in the chemical and car cosmetics industry, operating in the Lublin economic zone.

Plastics processing is also doing well on the Polish market. In Lublin, one of the representatives of this sector is PERMEDIA Sp. z o.o., which produces dyes and process additives used in construction, car production, electrical, mechanical and packaging industries.

DD-PACK Sp. z o.o. Sp.K., which has been operating in Lublin since 2017, is another company that produces and distributes plastic packaging, specifically canisters with a capacity of 1 to 1000 liters intended for all types of industries.  The company’s capacity is about 9 million canisters per year, which proves the high demand for this type of product in Poland.

The chemical industry has to face many challenges, especially in the post-pandemic world, including those related mainly to the automation of production processes, safety and climate protection. However, the chemical industry is still on the rise not only in the country but all over the world. The companies in Lublin and the region operating in this sector are also constantly investing in their development.

In Lublin there is a place for both companies already present in the city and for new investors from the chemical industry, which find favorable conditions for starting their businesses in our region.

Sources:

1. Polska Izba Przemysłu Chemicznego

2. nowa-energia.com

3. polskiprzemysl.com

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