Industrial construction sector in Poland 2014

Development forecasts for 2014-2019

This publication offers analysis of powerful trends and potential effects on the overall market and in each of its key segments: industrial facilities, energy block construction, gas and fuel investments and waste management construction.


It explores key market issues, especially those that are integral to future development. These include macroeconomic predictions, options for new project funding and the expected flow of investment into industrial ventures that require new construction or renovations and upgrades.

This report features detailed profiles of ten of the leading contactors specialising in industrial projects in Poland along with financials and plans for the years ahead.


The industrial construction sector attracts interest because…

  • New and upcoming projects in the energy and production segments offer plenty of opportunities for investment and earnings
  • Industrial construction projects comprise a large part of the overall construction market in Poland
  • Foreign construction companies are increasingly participating in this high-potential sector.


The report studies key aspects of Polish industrial construction...

From new projects and anticipated investments to important trends and strategies, this document covers the market issues that matter to business.

  • It provides complete forecasts enhanced by astute analysis of conditions and effects on the future of the market - macroeconomic data, substantial planned investments, anticipated EU funding and activities of foreign investors
  • It supplies a SWOT analysis of the Polish industrial construction sector
  • It analyses the overall industrial construction market as well as key segments- industrial plants, energy blocks, gas and fuel investments and waste management projects
  • It compares new construction projects to remodels and upgrades of existing facilities
  • It analyses upcoming projects in terms of size and purpose
  • It features complete details on ten leading industrial contractors operating in Poland
  • It supplies segmental analysis of Poland's industrial construction sector
  • It offers forecast totals for new industrial buildings 2014-2019
  • It provides construction and assembly forecasts to 2019 by segment.


Your questions are answered in clear and concise terms...

At PMR, our experienced professionals know the needs of our clients, so they ensure that all of their most-asked questions are addressed, such as:


  • How much is the Polish industrial construction sector currently worth? What is the forecast value? The current and forecast values for each segment?
  • According to region, which areas in Poland will experience the largest gain in new construction projects in the years ahead?
  • What are the forecasts for construction costs over the next few years?
  • How are top companies in this sector faring financially?
  • Which companies are attracting the largest contracts in this sector?
  • Which foreign contractors are planning to enter the market in the next few years?


Did you know...

  • In the days of the crisis, the non-residential segment of industrial construction outperformed the other segments.
  • The annual number of new industrial and warehouse buildings has been 3,100-3,200, of which around 70% are reservoirs, silos and warehouses.
  • As at the end of 2012, the market of new industrial and warehouse buildings (as measured by floor space of new buildings) was about 25% below the 2008 peak, while in terms of value, it was only barely higher than in 2008, which is due to the rising construction costs, mostly driven by steel prices.
  • We estimate that by 2024, total capital expenditure on the conventional power sector (including nuclear projects and large biomass-fired boiler) might reach up to PLN 100bn (€23.8bn) in the high-case scenario.
  • In the coming years, there will be a need to develop a grid capable of handling the huge amounts of fuel originating from the gas terminal, which is currently under construction.


Selected companies analysed in this report...

Lotos, PKN Orlen, PGE, ENEA, Energa, Tauron, PSE, Gaz System, Spółka Energetyczna Jastrzebie ,Kulczyk Investemt, Grupa Azoty, ZAK, Katowicki Holding Weglowy , Lubelski Wegiel Bogdanka , Cergia (EDF), GDF Suez, EDF, KGHM, Fortum Power and Heat Polska, PGNiG, USG Energy, Eni Polska Sp. z o.o., ExxonMobil Exploration and Production Poland Sp. z o.o., Orlen Upstream Sp. z o.o., Liesa Energy Sp. z o.o., San Leon Wschowa Sp. z o.o., San Leon Rawicz Sp. z o.o., Gora Energy Resources Sp. z o.o, Baltic Oil & Gas Sp. z o.o. (dawniej: Talisman Energy Polska Sp. z o.o.), Saponis Inwestments Sp. z o.o., Marathon Oil Poland Sp. z o.o., Chevron Polska Energy Resources Sp. z o.o., Lane Energy Poland Sp. z o.o., Cuadrilla Poland Sp. z o.o., South Prabuty LLP Spółka osobowa z o.o.


Consult this publication when...

  • Preparing to enter Poland's industrial construction market
  • Conducting a merger or acquisition on this market
  • Creating a new corporate strategy
  • Evaluating possibilities for new investment in industrial construction
  • Observing and analysing competitor activity in this market
  • Estimating corporate share of the market
  • Predicting construction materials demand for industrial projects
  • Assembling analyses for corporate shareholders and executives.


Clients that routinely use this report include...

  • Construction materials manufacturers and distributors active in the industrial sector
  • Producers of construction machinery for the industrial sector
  • Businesses of foreign origin interested in investment in Poland's industrial sector
  • Project design and management companies
  • Consultants, researchers and analysts serving clients with interests in the industrial construction sector
  • Embassies, government agencies, academic and research institutes
  • Chambers of commerce, media and public relations specialists
  • Trade and industry organisations
  • Financial services providers - brokerage houses, banks and investment funds.


Extract from this report

  • In 2013, construction output generated by the three market segments covered in the report exceeded PLN 20bn (€4.7bn) for the first time on record, having grown by as much as PLN 5bn (€1.2bn) since 2010. In the days of the crisis, the non-residential segment of industrial construction outperformed the other segments.
  • We expect that industrial and warehouse construction will be the slowest-growing segment of industrial construction and its share in industrial construction will start falling as of 2014. This course of events will be determined by the dominant position of power construction and right-of-way infrastructure projects.

Market commentary by expert


Last year was a breakthrough year for the municipal waste processing segment. Contracts involving the construction of municipal waste incinerators that had been postponed for many years were finally awarded in 2013. They included facilities in Krakow, Bydgoszcz, Olsztyn, Bialystok, Konin and Szczecin. The total value of the six facilities exceeds PLN 2.9bn (€692.1m); combined, the incinerators will be able to process 1 million tonnes of municipal waste a year after all the units have been completed.


Katarzyna Bednarz, Construction Market Analyst


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Table of contents

  1. Methodology      9
  2. Executive summary      11
  3. Industrial construction market in Poland       15
    1. Value of the market      17
    2. Industrial buildings and warehouses      19
    3. Price trends in the industrial construction market      22
  4. Industrial investment projects planned in Poland      25
    1. Investments in the power sector      25
      1. Investments in generation capacity      25
      2. Investments in transmission network       31
      3. Transborder projects concerning power lines      35
    2. Gas investments in Poland      37
    3. Investments in shale gas development      42
      1. Shale gas reserves in Poland      42
      2. Shale gas exploration wells      43
      3. Prospective shale gas producers in Poland      44
      4. Legal regulations planned for the sector      49
    4. Investments in the fuel sector      50
    5. Investments in waste incineration plants      52
    6. Construction of production plants      57
  5. Development forecasts for the industrial construction sector in 2014-2019      63
    1. Marcoeconomic overview      63
      1. Overview of 2013 results      63
      2. Outlook for 2014      64
      3. Medium-term outlook for 2015-2019       64
    2. Building permits for new industrial buildings and buildings completed      67
    3. Development forecast for construction and assembly output      68
    4. Capital expenditure of the major industrial investors      70
    5. SWOT analysis for the industrial construction industry in Poland      72
  6. Competitive environment in industrial construction      73
    1. Power construction      73
  7. Profiles of top four most active contractors engaged in industrial projects      81
    1. Rafako      81
    2. Polimex-Mostostal Group      83
    3. Mostostal Warszawa Group      85
    4. Elektrobudowa      87
    5. List of graphs      89
  8. List of tables      91
  9. About PMR      93

List of graphs

  1. Industrial construction and assembly output in Poland (PLN bn) and output change (%), 2005-2019      13
  2. Structure of the industrial construction market in Poland, by main categories of building structures (PLN bn, %), 2013      17
  3. Value of industrial construction output in Poland, by main categories of structures (PLN bn), 2005-2013      18
  4. Share of capital works in the individual segments of the industrial construction market in Poland (%), 2005-2013      19
  5. Floor area of constructed industrial and warehouse buildings and buildings for which permits were issue in Poland (m²), 2005-2012      21
  6. Changes in the prices of industrial construction output in Poland (%, y-o-y), 2006-2013      22
  7. Average construction cost, per square metre, of industrial and warehouse buildings in Poland (PLN per m²) and change (%, r/r), 2005-2013      23
  8. Steel prices in wholesale trade in Poland (PLN), 2006-2014      23
  9. Value of ongoing and planned power projects in Poland (PLN m), 2014-2024      26
  10. Capital expenditure of PSE in Poland (PLN m) and change (%), 2009-2017      32
  11. Existing and planned cross-border interconnections between Poland and its neighbours, 2012-2020      36
  12. Age structure of transmission gas pipelines in Poland, 2013      37
  13. Gas transmission network in Poland planned for 2023      41
  14. Estimates for shale gas reserves in Poland (million m³), 2014      42
  15. Estimates for shale oil reserves in Poland (million tonnes), 2014      43
  16. Number of shale gas exploration wells in Poland, 2010-2014      43
  17. Map of shale gas licences and wells drilled in Poland, January 2014      44
  18. Shale gas exploration wells drilled and being drilled in Poland, January 2014      48
  19. Structure of hypothetical future income of waste incinerators with throughput capacity of 220 Mg/year, 2014      52
  20. Treatment of municipal waste in Poland in 2011 (%)      53
  21. Map of waste incineration plants planned in Poland, 2014      56
  22. Value shares of the individual industries in the planned and ongoing investment projects in the SEZs in Poland (PLN m, %), 2014      61
  23. Number and floor space (‘000 m²) of industrial and warehouse buildings for which building permits were issued in Poland, 2000-2013      67
  24. Industrial and warehouse space completed in Poland (m²), 2005-2019      68
  25. Industrial construction and assembly output in Poland (PLN bn) and output change (%), 2005-2019      69
  26. Structure of the industrial construction market in Poland, by category of building structures (%), 2005-2019      70
  27. Capital expenditure planned for the development of distribution networks by the five distribution network operators (PLN m), 2014-2019      71


List of tables

  1. Industrial construction in Poland against the background of the Polish Classification of Types of Construction, 2014      16
  2. Number and floor area of industrial and warehouse buildings completed in Poland, 2005-2012      20
  3. Floor area of industrial and warehouse buildings completed in Poland, by voivodship, 2012      21
  4. Major power projects under construction in Poland, 2014      27
  5. Major power projects in tender phase in Poland, 2014      28
  6. Major power projects in preparation phase in Poland, 2014      29
  7. Major power projects in Poland put on hold, 2014      30
  8. List of key tenders for construction work invited by PSE, awarded or about to be awarded in 2013      33-34
  9. Gas interconnection projects in the analysis phase, 2014      38
  10. Expected structure of gas supplies in Poland in 2012 and following the interconnection systems, 2014      38
  11. Ongoing and planned investment projects in the gas industry in Poland, 2009-2023      39-40
  12. List of licences for shale gas exploration in Poland, February 2014      45-47
  13. Barriers to shale gas development in Poland, 2014      50
  14. Ongoing and planned investment projects in the fuel sector in Poland, 2009-2014      51
  15. Collection and processing of municipal waste in Poland (‘000 tonnes), 2007-2011       53
  16. Waste incineration plants planned in Poland, 2011-2015      54-55
  17. Waste incinerators in Poland – strengths and weaknesses      56
  18. Investment projects in the Special Economic Zones in Poland, 2006-2013      57
  19. Production plants planned and completed in Poland, 2013-2017      58-60
  20. Comparison of investment activity in individual industrial zones in Poland, 2014      62
  21. Projections for the key economic indicators in Poland, 2010-2019      66
  22. SWOT analysis for the industrial construction industry, 2014      72
  23. Companies taking part in tenders for new generation capacity in Poland – on-going projects and projects in advanced-tendering phases, 2014      74-77
  24. Most active bidders in tenders for power line projects in Poland, 2013      78
  25. Financial data for top 20 construction firms operating in Poland (PLN m), 2008-H1 2013      80
  26. Key financial data of Rafako, 2008-H1 2013      81
  27. Industrial contracts conducted by the Rafako Group in 2012 and onwards      82
  28. Key financial data of the Polimex-Mostostal group, 2008 – Q1-Q3 2013      83
  29. Main industrial contracts conducted by the Polimex-Mostostal Group in 2012 and onwards      84
  30. Key financial data of the Mostostal Warszawa Group, 2008-H1 2013      85
  31. Industrial contracts conducted by the Mostostal Warszawa Group in 2012 and onwards      86
  32. Key financial data of Elektrobudowa, 2008-H1 2013      87
  33. Industrial contracts conducted by the Elektrobudowa Group in 2012 and onwards      88