The paper chase
He spoke with WBJ about the market, its opportunities and challenges
Konrad Kiedrzyński: You started operations in Poland in the early 1990s. How has the market changed since then?
Franz A Rankl: We started in 1991, and at that time any enterprise that got up to something in Poland was successful. This situation lasted for seven or eight years. Then followed the second phase of the market battle, where the only factor for competition was the price of the product. The third phase started two or three years ago and sees a return of profitability and the market becoming more stabilized. This has not only been the situation for our business, but for other branches as well.
In which areas of the paper market can you see the most growth potential?
The paper branch has been growing fast over the last several years, although it has slowed down recently. We are going to see development in the sector of the printing market, including the packaging market, with wrapping paper and paper bags. The second type of print paper market with the potential for growth is copy paper. The sector of self-adhesive tapes has potential too. We are also witnessing a trend to improve quality, rather than quantity.
Is there any potential for takeovers and consolidation in the Polish market?
The biggest paper producers in Poland are already internationally owned and the smaller ones must either find a niche for their production or will not be competitive. There is still potential for [smaller] international players to enter the market, but only if they find a product niche. I do not see the potential for any big international players, though.
Has the labor shortage affected your business in any way?
It is affecting us more and more. The major problem is the fact that many qualified young people have left Poland to search for work in other countries. It is a pity that these people do not want to take a chance to be a part of the great [ongoing] development in this country.
Do you see any challenges for the paper distribution sector - and your company - in Poland?
This biggest challenge for us is transport. Its costs are rapidly growing and the whole state of road infrastructure in Poland is far behind what it should be. We have to be fast in this business, but it is really difficult for us to meet order deadlines. Yet, there is no alternative transport solution visible for us.
What are your firm's investment plans in Poland?
There are two possibilities through which our company may develop further. One possibility is the expansion of our product range. The other is the addition of more services to existing products. We are open to either of the two directions.
What would you say to an Austrian company that would like to operate in Poland?
The Polish market is more difficult than it was in the early 1990s. I would recommend entering it, but only if one has a specific product, especially an innovative one, or a niche.
