Poland | Boatbuilders

Foreign investments drive domestic expansion

Polish boatbuilders are predominantly export-oriented, but they employ varying strategies to expand their international foothold and secure clients from different market segments.

Established industry players make efforts to carve out a share of the Western European, North American, and Middle Eastern markets by investing in their brands, launching new models in cooperation with recognised designers, and promoting their craft at major industry shows. Smaller shipyards who cannot afford to engage in expensive marketing activities abroad often opt to work for Western boatbuilders as their subcontractors. At the same time, major international players are ramping up their investments in Polish shipyards.

Poland’s boat sector continues to specialise in motorboats from 6m-11m (20ft-36ft), but local builders are also intensifying efforts to develop their position in niche market segments such as luxury catamarans. With many industry players targeting the most demanding clients from upper-end segments, many Polish companies are investing – fitting out their facilities with new equipment, and also strengthening their research and development (R&D) capabilities. 

According to local builders, foreign buyers are increasingly interested in ordering yachts fitted with environmentally-friendly engines and produced with the use of technologies that limit manufacturing’s impact on the environment. Industry representatives say this is pushing Polish yards to explore innovative technologies such as green propulsion systems and new energy storage technologies for boats, among others.

The past two years have brought a surge in the demand for Polish boats as the pandemic encouraged consumers to fulfill their dreams of buying a boat and spending more time with family and friends in a safe environment. At the same time, while many of the country’s builders would like to further increase their production, most companies struggle to recruit skilled professionals as the local job market is shaped by Poland’s record low unemployment rate.

Last February, only 5.5% of the Polish working-age population was registered as unemployed. This was only marginally higher than the record low unemployment rate the country’s state-run Statistics Poland agency observed in November 2021, at 5.4%, the lowest rate in more than 30 years. Paired with this relatively low unemployment rate, Poland’s high demand for specialists is increasing the wage pressure on local employers, including boatbuilders.

Last March, Poland’s annual inflation rate reached 10.9% which represented the highest level the country reported in more than 20 years. This was also higher than the Euro area’s estimated level of 7.5%, according to data from the European Union’s Eurostat statistical agency. This factor has applied additional pressure on Poland-based employers to increase wages, and, as a result, also raise the prices of their craft.

Groupe Beneteau

The French boatbuilding group maintains a strong presence in Poland’s yacht industry, and directly owns two yards: the facility of Ostróda Yacht, and the shipyard in Olecko that Groupe Beneteau took over in 2018 through its acquisition of local boatbuilder Delphia. Both facilities are located in north-eastern Poland.

Mirna Cieniewicz, the corporate communications director at Groupe Beneteau, said that both shipyards are specialised in building boats with lengths of up to 40ft, and the vast majority of their production comprises powerboats with outboard propulsion – for the Beneteau and Jeanneau brands. 

Delphia offers electric and diesel powerboats for inland waterways and lakes, while Ostróda Yacht ranks among the largest builders in the Polish market, with a portfolio of more than 30 motor and sailing yachts and an annual output of about 4,000 craft per year made at its 40,000m² facility.

“Poland has a long tradition of ship and boatbuilding with an extremely qualified workforce. For more than 20 years, Groupe Beneteau has been building boats in Ostróda and regularly invested in the capacity, tooling and technology, making Ostróda Yacht the largest and most advanced boatbuilding facility in Poland,” she told IBI. “Since the acquisition of the Delphia shipyard in 2018, Groupe Beneteau has invested in a new R&D and prototype centre, while investments are planned for a wood workshop and a shipping department at Olecko.”

Cieniewicz said that Groupe Beneteau exports most of its output, and the boats the company’s subsidiaries build in Poland are no exception. 

The Poland-made boats are sold in “all European markets and increasingly in the North American markets, too. Both regions, Europe and North America, represent around 80 per cent of the group’s boat sales,” claims the company’s communications director.

Asked whether Groupe Beneteau is planning to launch new yacht models at its two Polish shipyards in 2022 and beyond, Cieniewicz said that the group has some 20 new model launches in the pipeline, and it is determined to take advantage of its specialized industrial capacities. 

“The Olecko shipyard has successfully built and launched the first model of the repositioned Delphia brand, the D11 in two versions, electric and diesel. These two models were officially presented in The Netherlands in March 2022 and received a very warm welcome from both the press and the dealer network. Our brands Beneteau, Jeanneau, Delphia and Wellcraft all have new 2022 models that will be launched at the Ostróda and Olecko shipyards this year,” she said.

By 2024, the Olecko shipyard is to complete its shift from internal combustion engines to electric engines.

Sunreef Yachts

Over the past years, Poland’s luxury catamaran specialist Sunreef Yachts has positioned itself in the upper end of the country’s boatbuilding industry. The company’s clients include Spain’s Formula 1 champion Fernando Alonso who last year ordered a 60 Sunreef Power Eco catamaran, and tennis champion Rafael Nadal who has a custom-spec 80-footer.

Set up in 2002 by French entrepreneur Francis Lapp, who also serves as the company’s president, Sunreef Yachts operates its own shipyard in Gdańsk, on the Polish Baltic seashore. Prior to that expansion, the company manufactured catamarans at a facility located within the Gdańsk Shipyard zone where Poland’s pro-democracy Solidarity trade union was born in the 1980s. In addition to its own facility, Sunreef Yachts also maintains its production capacities at the Gdańsk Shipyard.

In 2021, the boatbuilder added two new models to its motor catamaran portfolio; the 70 Sunreef Power and 100 Sunreef Power.

“Our shipyard is also focusing on developing our electric catamaran range, Sunreef Yachts Eco. The craft we launched in early 2022, Sunreef 80 Eco, recently had its debut in Dubai. It is a sailing catamaran fitted with solar panels integrated with its composite structure. The yacht is powered by two electric engines,” Lapp said.

Sunreef Yachts says its green catamarans are equipped with advanced electric engines powered by light, custom-engineered battery banks. The solar panels installed onboard the craft are made in-house, and they can be integrated with any composite structure, including the boat’s mast, boom, and hull sides. The solar power system developed for Sunreef 80 Eco can generate up to 32 kWp.

Sunreef Yachts Eco craft are also enabled to use hydro generation and wind turbines, and they can be built with the use of sustainable raw materials such as reclaimed teak, linen, and basalt-based furniture, as well as recycled fibres, according to the boatbuilder.

In 2020, the Gdańsk-based boatbuilder reported sales of about €150m (US$158m). A year later, Sunreef Yachts managed to further increase its sales by about 20%, according to data from the company. The past few years brought rapid development for the boatbuilder whose workforce currently exceeds 1,000 employees.

Asked about the company’s future expansion plans, Lapp points to the US and Middle Eastern markets which generated solid sales increases last year. With these prospective markets in mind, in 2013, Sunreef Yachts launched its first foreign office, located in the United Arab Emirates. A year later, the Polish business set up an office in Bahrain. Sunreef Yachts also maintains a presence in Fort Lauderdale, in the US, and in China’s Shanghai.

At the same time, the boatbuilder’s president says Sunreef Yachts is gearing for further investments in raising its output capacities, both in Poland and potentially also abroad. In 2020, the company shifted some of its key manufacturing departments to the new shipyard, and recruited numerous new employees including engineers, carpenters, electricians, mechanicians, as well as lamination and upholstery specialists. 

“Our shipyard is undergoing further expansion, with a new painting hall and a modern fitting hall under construction,” explains the company’s owner. “We are also in the process of purchasing further land to develop the new shipyard’s capacities. We are also evaluating the possibilities to develop our infrastructure abroad.”

Saxdor Yachts

Finnish boatbuilder Saxdor Yachts is another international player investing in increased capacities of its Polish manufacturing facilities. Last December, it was announced the company will invest some US$9m to build a new production hall in Ełk, in north-eastern Poland, where it operates a shipyard.

Set up by Finnish boat designer Sakari Mattila who previously was a founder of Axopar, XO-boats, Paragon and Aquador, the boatbuilder specialises in motoryachts up to 40ft. Under its ongoing project in Poland, Saxdor Yachts is planning to create more than 300 new jobs significantly increasing the boatbuilder’s current workforce. The facility is operated by the company’s local subsidiary Elite Shipyard Ełk which was established in 2019.

Erna Rusi, the chief executive of Saxdor Yachts, said the last few years have brought a continuous expansion of the shipyard’s production activities. 

“We closed 2021 with around 500 units produced, with the first part of the year being slower, but our month-on-month growth is increasing rapidly, and when the new facility is completed in the fourth quarter of 2022, our production will practically triple for 2023,” she said.

Upon presenting its investment project to the Polish authorities in 2019, the Finnish boatbuilder received preferential conditions to develop its business and grow it in Ełk, according to Rusi. 

“Our shipyard is located within the Suwałki Special Economic Zone where preferential taxation rules apply. The new modern production facility, which is currently under construction within the same economic zone, is where we want to spread our wings and use the full potential of Saxdor design and production capacity,” she said.

Poland’s north-eastern Masurian lake district which surrounds Ełk, is an area which offers a rich boating tradition and an experienced labour force, according to the company’s CEO.

“To further contribute to the expansion of the industry in the region, we teamed up with a vocational school in Ełk to create a specialised class for future boat and yacht assemblers. Our staff will serve as teachers and mentors. Classes begin in September and students will be ready to enter the boatbuilding job market in three years,” according to Rusi.

Saxdor Yachts says its international dealer network covers five continents and more than 40 countries, including a Poland-based dealer who sells boats made at the Ełk shipyard.

Asked about the planned launches of new models in the coming months, Rusi said that, with regards to this year, the boatbuilder has “already offered a partial preview of the 400 line which will become the highlight of the year completed at our new production facility. In addition to this, we are introducing another model in the next few weeks, fitting in between our two existing models, 200 and 320”.

At the same time, to comply to the needs of a growing segment of boat buyers, Saxdor Yachts is working on methods to reduce the carbon footprint of its manufacturing activities, the CEO said.

“Innovation is a part of our company’s DNA and we’re constantly looking for new ways to decrease the environmental impact of our products. We have a solid strategy for e-boating, and we’ll reveal more towards the end of 2022,” she said.

Galeon

Polish motorboat specialist Galeon is investing in its production capacities amid rising demand for its boats. A new model will also be unveiled this year, building on last year’s successful premiere of its smaller grand touring outboard craft. It sells a range of four models - comprising sport cruiser, hardtop, flybridge, and skydeck models. Sales are dominated by boats from 40ft-70ft, though its range starts with Galeon 300 FLY, while its largest yacht to date is Galeon 800 Fly, which will be available for sale in the market very soon, according to Marketing and PR coordinator Paulina Marwińska. The company builds around 200 boats a year. 

“Galeon’s team currently comprises more than 1,500 persons employed at two facilities. Our production halls are fitted with a total space of 35,000m², and we’re currently in the process of building new production halls,” she said.

The boatbuilder’s new Galeon 375 GTO will be launched later this year. Developed in cooperation with Tony Castro Design Studio, it follows the launch last year, of the 325 GTO which it describes as its first boat of this type to be powered by two outboard engines, also designed by Tony Castro. The boatbuilder says that one of its characteristic features is “a wide bow of the bowrider type in which the seating area is integrated.”

Founded in 1982, Galeon is based in Straszyn, in the north, about 317km from Poland’s capital Warsaw. Located on the country’s Baltic Sea shore, its facilities make a wide range of craft. The company also operates a marina in Wiślinka, which offers berths to its owners in close proximity to Gdansk, the largest city in the north of Poland. The boatbuilder also uses the marina to test the performance of its craft.

Investments in recent years have included the development of the builder’s laminating capacities and a new production hall for the shipyard’s stainless steel department. 

The increase in output capacity is designed to accommodate rising demand for Galeon’s boats in a number of foreign markets, notably in the US, thanks to its partnership with US dealership MarineMax. Last year it sold around 70 vessels into America and plans to expand that by up to 80% in the coming years. 

In addition to the American market, some of Galeon’s main export destinations include Switzerland, France, Germany, and numerous other European Union member states. Over the past years, the manufacturer has also intensified efforts to secure a foothold in Australia and New Zealand, as well as in various Asian markets. Galeon’s network of foreign dealers covers 35 companies across the world. The latest addition to the company’s list of export destinations includes Kazakhstan, according to Marwińska.

TES Yacht

Polish boatbuilder TES Yacht is one of a number of local boatbuilders who plan to introduce category A, ocean going yachts to its product portfolio in the near future. Based in Gdynia, on the Polish Baltic Sea shore, the company offers sailing and motoryachts, and aims to launch a new shipyard by the end of 2024 as part of its development plans.

The boatbuilder’s history dates back to the early 1980s which makes it one of the most recognised brands in its domestic market. Piotr Grzegorski, its current chief executive and co-owner, bought TES Yacht, along with his two partners, in 2019 from Tomasz Siwik, the company’s founder.  

Shifting production from Drzewica, in central Poland, where a subcontractor makes its B (offshore) and C (inshore) category boats, to TES Yacht’s future own shipyard in the country’s northern Pomerania region is designed to facilitate the company’s international expansion plans, according to Grzegorski.

“We also have our repair shipyard in Okuniew, close to Warsaw, but to expand our boatbuilding capacities, we need to open a new shipyard that will be able to accommodate larger projects,” he said.

TES Yacht’s chief executive said that two out of the company’s three co-owners, including himself, enjoy sailing the seas, and adding two new yachts with lengths of 34 and 44ft, respectively, would “cater to the needs of more demanding seafarers.”

The boatbuilder’s flagship TES 32 Dreamer sailing yacht can accommodate a maximum of 10 people. Other craft in the company’s portfolio include the TES 28 Magnam, TES 246 Versus, TES 678/720 BT, TES 550 Master, and TES 20 Mico sailing yachts. Its motorboat range comprises the TES 32 Dreamer and TES 393 Illuminatus craft.

The boatbuilder’s export sales are focused on Western European and Asian countries. Some of its main markets include Germany, France, Belgium, Japan, and South Korea. The Polish market accounts for about 50% of TES Yacht’s sales.

“We want to remain in Poland as an important market player, but exports are what keeps our company growing and covers our investments. There are many prospective markets we’re looking at, ranging from countries in Western Europe to the Middle East,” Grzegorzewski said.

Janukowicz Jacht

The intensifying competition among Polish boatbuilders has led some industry players to scale down their brands and focus on supplying their output to major international producers. Local boatbuilder Janukowicz Jacht represents an example of a Poland-based business which gradually shifted to assembling yachts for various European boatbuilders in response to a decreased demand in its domestic market. 

Currently, the company acts as a subcontractor for major brands from Germany, Italy, Austria, and The Netherlands, according to Krzysztof Janukowicz, the builder’s owner and president.

“We continue to build boats, but the market has changed over the past years, so we also had to adapt to the new conditions. We used to produce for the Polish market. It was more time-consuming, but the surge in labour costs has pushed many companies out of the industry,” he said. “Companies which make high-end yachts have customers who show more flexibility to price hikes, but for many other boatbuilders, the rising costs of labour cut their profit margins.”

Asked whether the hike in Poland’s labour costs was related to the pandemic’s economic impact, Janukowicz said that, while a part of the increase of these costs could be linked to Covid-19, the upwards trend began earlier, about five years ago.  

The company’s owner said the shipyard assembles between 30 and 50 yachts annually for its foreign partners. Sailing and motoryachts each represent about 50 per cent of the company’s output, according to Janukowicz. The business used to devote about two months to delivering a custom-made boat to its customers. With subcontracted work becoming the company’s focus, Janukowicz Jacht currently assembles about one boat per week, he said.

The shift has allowed Janukowicz Jacht to maintain a limited production level of its flagship motorboat, the Janmor 700. The company has decided to discontinue its other sailing and motoryacht models.

Kotniz Group

Poland’s Kotniz Group says it is the largest producer of metal and aluminium yacht accessories and components in the European market, offering canopies, baskets, shields, steps, supports, railings, as well as sliding doors and steering wheels, among others. Amid a rising demand for its products, Kotniz Group posted record sales last year, according to senior company representatives.

“We reported revenues of about €25m last year which represented an increase of 50% compared with 2020, which was the year when the sector was the most impacted by the coronavirus pandemic, and an expansion of 30% compared with 2019 which was the best in the company’s history,” said Sebastian Nietupski, the chief executive of Kotniz Group who also serves as president of local yacht industry association POLBOAT.

The company is headquartered in Białystok, in Poland’s eastern part, and operates a production facility in Ełk, in the country’s north-east. In addition to its Polish operations, Kotniz Group also runs a second factory in Gandra, in Portugal’s northern part. The producer is operated by a total workforce of 500 employees in two countries.

Nietupski says the company already supplies a significant share of its output to most well-known European shipyards, some of them with operations in Poland. Kotniz Group is currently in the process of expanding its worldwide presence to establish cooperation with some of the world’s largest shipyards outside Europe.

“We export our products to the UK, France, Scandinavia, Germany, Italy, and we are now also present in the United Arab Emirates, Brazil and Turkey. We recently launched exports to Taiwan,” Nietupski said.

Amid a rising demand for the company’s products, Kotniz Group has approved a new investment programme which is designed to expand the company’s manufacturing capacities. Under the plan, the business aims to invest about €2m (US$2.1m) to purchase new machines and enhance the robotisation of the production processes at its Polish and Portuguese factories. 

In addition to this, a further €2m is to be allocated to the building of new production facilities in Ostróda and Ełk, in Poland’s north-eastern part, strengthening the company’s presence in the Masurian lake district, according to Nietupski.

Va-Varuste

In line with the increasing demand for Poland-made boats, many of the country’s equipment producers are reporting a surging demand for their output.

Finnish yacht components maker Va-Varuste is one of the foreign industry players who have established a manufacturing presence in the Polish market. In 2017, the business invested more than PLN 6m (US$1.4m) with the aim to open a production facility in the Suwałki Special Economic Zone. Locating a factory within a special economic zone enabled the Finnish producer to secure preferential tax treatment for its investment. 

Va-Varuste initially created some 60 jobs at the factory which is fitted with a production space of about 2,400m2. Since then, the company has been gradually increasing the plant’s workforce. Similarly to the producer’s other facilities, the Polish plant makes custom-made boat textiles, and its key products include boat canopies and boat cushions, seats and winter covers.

Marcin Szklarek, the general manager of the company’s local subsidiary, Va-Varuste Poland, said that last year brought a boost in the Suwałki plant’s production volume, as it rose by a robust 250%.   

“Our factory mostly supplies its products to the Polish shipyards of foreign-owned boatbuilders, and about 99% of the boats these shipyards make are intended for export sales,” he said. “Our products are shipped to Western European countries and Scandinavia, among others.”

The rising demand for the Suwałki plant’s output is driving investments in expanding its output capacities on a continuous basis, according to the Polish offshoot’s general manager.

“We continue to recruit new employees for our factory, we invest in new machines as we aim to further develop our facility’s production capacities. Boat textiles are our bestselling product which is responsible for last year’s record sales,” Szklarek said.

The general manager said that, owing to its record 2021 sales, the company was awarded one of the top prizes in the Suwałki region under the annual Business Gazelle contest organised by local business daily Puls Biznesu.

In Finland, Va-Varuste operates a production facility in the country’s Kuopio area, on the Lake Kallavesi shore. The factory was completed in 2006, and fitted with a floorspace of more than 2,700m2.

In addition to its manufacturing operations in Finland and Poland, the manufacturer also operates Va-Varuste Portugal, a subsidiary in Troviscoso, in Portugal’s northern part. 

Va-Varuste says it is the largest manufacturer of original boat canopies in Northern Europe, and the continent’s second largest canopy maker. The company was set up in 1969, and in 2001, it secured its first foreign customers.