Economy of Gdansk

The city's industrial kaleidoscope is dominated by traditional lines of shipbuilding, petrochemical and chemical industry, and food processing. Yet, the share of the know-how-based sectors such as electronics, telecommunication, IT engineering, or cosmetics and pharmaceuticals is on the rise. Amber processing so specific for the local economy is also prominent. The economy in the Gdańsk area is based on two cornerstone industries. One of them is shipbuilding with its traditions going back to the middle ages, streamlined in three key directions: large seafaring newbuilds, ship repairs and alterations, and boatbuilding. New constructions are the domain of two enterprises: Gdańsk Shipyard - Gdynia Yard Group S.A., and Northern Shipyard S.A. Their product range comprises various vessels, e.g. container ships, bulk carriers, ferries, fishing vessels, and special purpose boats. These core production lines are supplemented with the offer extended by scores of other co-operating businesses and subcontractors who manufacture e.g. ship assemblies. Here, one should mention Wisla Yard S.A., Radunia Yard S.A., and Aluship International, the latter specialising in aluminium hulls of various sizes, and ship members Gdańsk Ship Repair Yard S.A. is the European and world leader in its field. Most of the income is generated from repairs commissioned by foreign ship owners. Together with its subsidiary, Northern Shipyard S.A., the Repair Yard is now expanding the scope of its activities to supplement repairs and alterations with new constructions. The yard offers ferries, container ships, and special projects for the off-shore market. The boat builders from Gdańsk produce both replicas of historic vessels, and modern luxurious sail and motor yachts. It is worth mentioning that the "Sea Clipper", the largest sailing cruiser in the world, came from the docks of a private boat building yard in Gdańsk. The second pillar of Gdańsk industry rests on oil processing and chemicals. Gdańsk Refinery SA is the second largest producer of liquid fuels and oil derivatives countrywide (its share in the liquid fuel market oscillates around 20 per cent). Thanks to the revamp programme of the years 1995-2000 the plant doubled its production capacity, improved the quality of its products and at the same time reduced its power consumption and pollutant emission. Apart from the Gdańsk Refinery, the city has two other large chemical plants, that is Siarkopol S.A. (sulphur) and ?Fosfory? Gdańsk Phosphorus Producers (provider of phosphoric fertilisers enjoying a marked presence in the market). Fregata S.A. specialising in crop protection products, also enjoys a good market position. In the spectrum of industries present in Gdańsk there are two branches characterised by high, though not fully utilised, developmental potential. These are the metal-forming industry (with one of the largest slide bearing manufacturers in Poland, Federal Mogul Bimet), and industrial machine/ equipment manufacturing. The latter includes ship fittings produced by such companies as Elmor SA, Elektromontaz SA, or Hydroster SA. The proximity of Gdańsk Refinery S.A. and easy access to raw materials imported by sea create conditions conducive to the development of plastics production and processing. The availability of sea-imported raw materials can also trigger the development of food processing based on imports. These aims can be achieved by involving the existing food processors and adding newly pursued investments located e.g. within the port of Gdańsk (such as Baltic Malt, short malt producer).

The traditional industry lines are gradually losing position to the industries based on know-how and yielding the characteristic high added value. The shift can be observed in the activities of e.g. Farmix and Ziaja, producers and exporters of cosmetics with an established position in the country, both present in Gdańsk and functioning on the verge of the old and new economies. Several manufacturers of electronic and telecommunication equipment well-known home and abroad have chosen Gdańsk as their prime business location. These are: DGT (large digital telephone exchanges, and wireless and special communication systems), Unimor Radiocom (e.g. radio communication equipment for aviation), Micronet (subscriber switch-phones and PBXs), Telkom-Telmor (elements of the telecommunication infrastructure), and Satel (electronic alarm systems). Implementation of the state-of-the-art data transmission technologies is the area pondered by the scientists and engineers employed by the R&D branch of another Gdańsk-based company - Intel Technologies Poland. The city is the registered seat of Young Digital Poland, authors of technologically advanced multi-medial educational software appreciated both in Poland and abroad. Gdańsk is the hometown of the second most popular Internet portal in the country, Wirtualna Polska. It is also the base of Lido Technologies Poland that provides IT back-up to one of the largest air carriers in the world, the German Lufthansa. Apart from these large enterprises, the IT sector in Gdańsk groups several hundred smaller companies producing specialist software (e.g. for the health service, architects, and the building industry), providing maintenance and Internet services (ISP, Internet service creation and servicing). The market prevailingly tapped by the IT employers in Gdańsk is that of the research staff and graduates of the Gdańsk Technical University and University of Gdańsk. The city authorities are determined to support the processes related to the development of the know-how-based industries under the binding legislation. The attitude is reflected in the up-dated "Gdańsk Development Strategy". The document also emphasises the orientation on developing those sectors that might determine the structure of the local industry in the future.