If the problems of restructuring were not enough for the Polish heavy chemical industry, another challenge is appearing from Brussels.
Before long the sector is going to have to comply with harder EU criteria for environmental protection. Most concern is around directive number 96/61 which aims to limit unfair competition from those concerns which have lower costs because they have lower environmental standards.
Whereas few would argue that this is not a major step forwards, the problem is that it discriminates against those enterprises which have less advanced technology and that includes some Polish firms.
The sector fears that this directive could be used as a weapon against it as they will not be able to get the required paperwork within the time frame required by Brussels. The reason for this is financial, or more to the point, the lack of funds. To meet EU requirements on water protection alone will cost EUR1.1bn. Given the current weak state of the sector it would take a very brave bank to even consider a loan of this type. Furthermore it is thought unlikely that Brussels would forward the cash needed.
The Polish market is an excellent development area for foreign chemical concerns. The proof of this is Poland's current balance of payments for chemical products which is USD5.5bn in the red. Of especial interest are plastics. Production in Poland is considerable less per head of population than in any EU country.