GAL’s investment in Nowy Brzesk – collaboration is the key to success

PPHU GAL specialises in the anti-corrosion protection of metal and steel structures; the company’s core business comprises hot-dip galvanising, electrogalvanising and powder coating.

In December 2021, the company received a decision from the Kraków Technology Park granting support under the Polish Investment Zone scheme for the construction of a production hall in Nowy Brzesk. This marks another milestone in the company’s development, but also serves as an example of excellent cooperation between the public sector and business, which looks very promising for both parties.

The municipality of Nowe Brzesko is situated on a transport route linking two provinces – Małopolskie and Świętokrzyskie. The proximity to Kraków and the municipality’s location within the conurbation are also significant factors. The Nowe Brzesko Economic Zone comprises serviced plots, which greatly facilitates the implementation of investment projects – it was this offer that the company GAL decided to take advantage of.

The company specialises in protecting steel structures through hot-dip galvanising and powder coating; it also carries out electrogalvanising and anodising, and possesses technologies that enable long-term anti-corrosion protection for steel and aluminium structures.

Its clients include manufacturers of steel and aluminium components, ranging from road barriers and street lamps to various types of fences, gates, wickets and all manner of structures exposed to the elements.

The company was founded in the 1980s as a small family-run business; over time, it has expanded to four sites in the Silesian Voivodeship and is still looking for new locations to grow.

Thanks to a new investment, which will be carried out under the Polish Investment Zone scheme, the company’s fifth plant will be established, this time in the municipality of Nowe Brzesko.

“In Nowy Brzesk, we plan to build a hot-dip galvanising plant alongside a powder coating facility, as an increasing number of our customers are requesting anti-corrosion protection for their products using the so-called ‘duplex’ system, i.e. double protection. We want to build a facility that will allow both processes to be carried out in a single location without the need to transport the products. Furthermore, given the energy-intensive nature of our manufacturing processes, we also plan to build a large photovoltaic installation to make our company at least partially independent of external electricity supplies. This will also enable a significant reduction in energy costs, which account for a large proportion of production costs in our business. “The investment is scheduled for completion in December 2025,” says Rafał Anioł, Deputy CEO of GAL.

A company with a technology license

The company is technologically advanced and keeps pace with market developments. The investment in Nowy Brzesk is the second project with similar technical specifications, following the one in Żory.

“A significant part will be the system we developed in Silesia in collaboration with the University of Technology and Humanities in Bielsko-Biała. It is a modern production and process management system that allows for partial automation of production. As one of the first galvanising plants, we have implemented a mechanism whereby, for repeatable structures, the entire process of preparation, pickling, drying and galvanising is automated and requires no manual labour, only supervision. In collaboration with the Institute of Non-Ferrous Metals at the Łukasiewicz Institute, we have developed a special type of flux (part of the process of preparing structures for galvanising), and we are co-owners of the patent for this technology. Thanks to this, we have achieved cost savings, but also a positive impact on the quality of the working atmosphere and the environment. “The flux significantly reduces the amount of smoke generated during galvanising,” says Rafał Anioł, speaking about the collaboration with scientific institutions.

Cooperation between government and business guarantees success

The company is constantly seeking opportunities for growth. Several years have passed since the launch of the investment in Żory; this project has shown the management that investing pays off and has inspired them to pursue further development in other areas.

“We looked around the Silesian and Lesser Poland provinces, but we were certain of one thing: we wanted to carry out the new investment in partnership with an economic zone. Not only for financial reasons, but above all because in such zones the site is well-prepared for industry, is fully serviced, and one can count on additional support during the preparatory process – that is, in obtaining all kinds of environmental and building permits, which is a lengthy and difficult process. Any support in these matters is welcome from an investor’s perspective. We visited a great many locations, but Nowe Brzesko turned out to be the best for us, primarily due to its excellent location near larger cities where industry is well-developed, and we are closer to our customers,” says Rafał Anioł.
“We had a meeting with the authorities of Nowe Brzesko, which took place in a very welcoming atmosphere; we also learnt a great deal about the Polish Investment Zone programme and decided on this location. Within a few months, we managed to complete the land purchase process,” he adds.
“For the development of the Municipality and Town of Nowe Brzesko, the development of the Nowe Brzesko Economic Area is one of the most important strategic tasks. The creation of this new investment project will not only activate investment areas but, above all, create new jobs for the municipality’s residents and make the area more attractive to those intending to settle here. This is also

The authorities in Nowy Brzesko are keen to boost the local economy, which also means creating jobs for local residents, as the entrepreneur himself says:

“We had no doubt that the local authorities’ assurances of support and assistance would be honoured.”

When asked what form discussions between the administration and the business community should take in order to be successful, Krzysztof Madejski, Mayor of the Municipality and Town of Nowe Brzesko, replies:

“Above all, it is essential to hold detailed discussions, clearly establishing the feasibility of the entrepreneur’s proposed investment across all legal areas. The support provided by the local authority to the investor during the investment planning stage is of the utmost importance.”

 

Good cooperation between the authorities and the investor is important, but making an investment decision requires a range of key formal details and a great deal of perseverance.

“I would advise other investors to check the development plan and the infrastructure provision for the site before making a final decision, and to bear in mind that a development project doesn’t happen overnight: it’s a fairly formalised process that requires preparation. When planning an investment, you need to be prepared for the process to take at least six months,” advises the vice-president of GAL.

 

Success

Two milestones that have shaped the company’s operations are worth mentioning.

One of these was the launch of the project in Żory, which was completed smoothly, on schedule and within budget. Following the launch of this project, the company gained new customers, resulting in a year-on-year increase in sales revenue of over 50%. There has never been such a significant surge in the company’s sales history; not only did we manage to attract customers, but we also retained them. The galvanising market is highly competitive and demanding.

“Our second success relates to the difficult situation during the pandemic, which was not easy for many companies, but we came through the whole period unscathed. We didn’t have to make any staff redundant, and we subsequently moved forward, ending 2021 on a very positive note,” comments Rafał Anioł, Deputy Managing Director of GAL.

 

Given that GAL began its operations in Małopolska on such a positive note and with such strong support, one can only hope that the new plant in Nowy Brzesk will be a great commercial success and bring many benefits to the region.

Want to know more about GAL?

Please go to: www.cynkowanie.pl