Wärtsilä is one of Finland's industrial giants, a global leader in the marine and energy sectors with a 190-year history. The company employs over 19,000 people and operates in more than 80 countries, with branches in Gdynia and Gdańsk in Poland. In recent years, it has held a global market share of nearly 70% for large engines used in energy applications. Tuomas Asunmaa spoke with Igor Petryk, the Market Development Director at Wärtsilä.
Wärtsilä has been in Poland for quite a while, how would you summarize the journey and where are you today?
Wärtsilä is the Finnish engineering concern that is the world leader in two areas: Marine and Energy. Our global presence spans more than 80 countries. In Poland, we are represented by the Marine division, which has offices in Gdańsk and Gdynia, as well as a services workshop in Gdańsk. With a total headcount of 370 people, the Polish affiliate is an important element of our engineering and global services network. The pool of highly qualified Polish engineers participates in the commissioning and execution of projects around the world, including our power plant and battery energy storage installations.
The Energy division is currently represented by just one market analyst hired locally, and this reflects the stage of our development – we are starting our journey on a new market by studying its needs. It may seem as if Wärtsilä is lagging behind other companies from the same business sector, but at the end of the day the actual result is what matters. According to an S&P report, over the last five years, Wärtsilä has had a 69% global market share in the category of large heavy-duty engines for energy application.
You have been on two special missions to Poland, each for six months. What was your main target in Poland?
To understand the market dynamics, uncover its future needs and develop a value proposition for Polish customers. Behind these dry words, there was an exciting process of speaking to hundreds of people from many different backgrounds: CEOs of state corporations, accountants, civil engineers and businessmen, operators of boiler houses and members of parliament. Apart from that fieldwork, we did lots of homework too. Based on the market data, we developed a mathematical model of the Polish power system that allowed us to review various scenarios of the Polish energy sector development for the next 10 years.
You traveled a lot in Poland, what visits and events were most memorable?
During the first six-month assignment, I was driving all over Poland trying to collect first-hand information and see the real business life with my own eyes. This allowed me to create a complete picture, like building a puzzle from individual elements. I was also able to see the differences and commonalities between those pieces. Now, when my Finnish colleagues come to Poland, I can tell them that difference. And it’s not only about the geographical split: the Polish business environment is multi-dimensional. What I would highlight as common features, is the high level of professionalism at least in the energy sector, and the friendliness of people.
Did you ever have time to visit places as a regular tourist? If so, what are your favorites?
The absolute favorite is the open-air Chopin concert program in Warsaw’s Lazienki Park, which offers two free concerts each Sunday during the summer. Then there are a bunch of other great places that are difficult to rank: from a windy beach in Sopot to the trails in Zakopane.
Have you encountered any surprises about Poland's energy sector?
A positive surprise was, as I have already mentioned, the professionalism of Polish engineers and managers. On the negative side, I would have to share my impression that the Polish energy sector is still insufficiently integrated into the European context. I mean that not only in physical terms, not only as a part of the common market, but also mentally. There is an “us and them” attitude at times. For example, you can feel this just by visiting one of the numerous energy conferences, let alone the sector’s lower-level gatherings like seminars. You will find ambassadors and honorary guests from abroad, but there are almost no foreign experts representing Polish companies. This demonstrates the high professional level of Poles, but in a competitive international environment, an exchange of human capital is also important.
How would you see the near future developments, are there any trends worth following?
Poland is one of the fastest-growing economies in the EU. This brings both opportunities and challenges. The rising cost of labor and a potential deficit of qualified personnel may disappoint investors in many sectors, but in energy the trend is very positive. Electricity consumption is set to continue growing, renewables will be replacing fossil fuel, and in the heating sector there is a huge change ahead with new technologies replacing coal. Wärtsilä is well-positioned to play an important role in this formation.
There are many small and midsize companies in the energy sector from Finland, how would you describe the market potential in Poland for them?
I have not studied the market from this perspective, but believe the market is large enough to offer sizable opportunities for various Finnish businesses. I see a very positive attitude towards Finland in Polish society, as opposed to certain other neighbors, so an active company with a competitive offering has a good chance of success.
Do you have any recommendations on where to start and what is important to make business work in Poland?
It’s a tough question. There is no universal answer to it, but in any case it is worth starting by learning about the market, so a good local advisor would be very handy. Spondeo does a great job supporting both countries in creating stronger ties.
Does Wärtsilä have any masterplan in Poland that you can reveal?
Our modeling, which I mentioned above, identified the best combination of generating capacities in Poland for the coming years. This study has been published and is in the public domain so I will not be revealing any secret if I tell you that our technology can play a key role in energy transition, both in the power sector and in district heating. Ultimately, we are talking about a couple of billion Euro in the long run.
You are not a Finn, so I am interested in how you compare the business culture and relations between Finland and Poland?
Part of the answer is already above. I would probably add a Polish feature that puzzled me in the beginning and then irritated me a lot. People just ignore you and your emails if they are not interested in you. You may think you just had a great meeting with excellent prospects for continuation, but that’s it. Having said that, I must admit that in a lucky case, relations are usually more “intimate” than in Finland. This is probably no huge discovery, as the Finnish culture is famous for its “emotionless reliability”.
Is there anything Finns can learn from Poland or the Polish people?
I have the impression that Poles not only enjoy vacation time, but also many other days all year round, typically attached to school holidays and public days off. December, for example, is not a good month to hold meetings, because Christmas is just around the corner. Ok, I’m just kidding, I do not recommend copying this.
Do you plan to stay in Finland, or have you already chosen your next destination?
My role in the company is to discover new opportunities and new markets in Europe. Central and East Europe seem to offer many new business opportunities thanks to the energy transition process. Wärtsilä is leading this process and I am happy to be at the forefront in this historical time.
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