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ELEKTROBUDOWA SA is one of the biggest Polish companies in the electrical installation sector, operating since 1953. Since 1996 it has been listed on the Warsaw Stock Exchange. The activity offered by the Company includes comprehensive services for the power generation, transmission and distribution sectors and broadly understood industrial sector, comprising technical consulting, design and engineering, procurement of materials and services, commissioning and start-up, servicing, also performed as a general contractor. The objects of the Company include also manufacture and comprehensive delivery of power equipment: high voltage, medium voltage and low voltage switchgear, high-current busducts and electrical stations and systems. The Company renders services relating to construction, modernization, extension and overhauls of power facilities and industrial plants.

Major part of the Company’s revenue is generated from power investments in the sectors of power generation, transmission and distribution and in the industrial sector. The level of investments in each of the above sectors is directly related to the growth level of GDP.

The Company is active in newly built, modernized and overhauled power and industrial facilities, both in Poland and abroad. It participated in construction of nearly all power plants and heat & power plants in this country and many in other countries. Products manufactured by the Company, particularly switchgear and busducts, are installed and operated in almost all domestic, and many foreign, major power and industrial facilities.

The Company’s activity contributes to modernization of the electric power infrastructure, and therefore to its reliable operation, improvement of the power supply conditions and reliability of electricity supply. The Company has indirect influence on increasing the attractiveness of regions where it operates, supporting stable power supply which, like road infrastructure, is an essential element of development of entrepreneurship.

Key resources required for conducting business activity and essential in respect of the Company’s operating activity and implementation of the adopted strategic development priorities, are:

  • know-how related to products and to rendering specialist electrical installation services,
  • personnel performing various functions of activity, beginning from the staff crucial for the Company’s operation: marketing and sales force, manufacture and commissioning tams, through technical staff and systems management, to business support staff,
  • financial resources – an appropriate level of funds available for trading and availability of financing, consisting of own financial resources and provided credit facilities and guarantee lines,
  • intangible assets – software, licences and know-how, trademarks, costs of development work finished or in progress, and the systems in place: the Integrated Management System (quality, environmental, occupational safety), the ERP system.

The Company principally operates in its country of incorporation, but also in the markets of Russia, Ukraine, Saudi Arabia, Finland.

The Company has its customers in power plants and heat & power plants, electricity distribution companies, hard coal and lignite mines, metal ore mines, heavy industry, entities in the fuel, chemical, paper & pulp and food industries and public utility entities.

Because of the type of business carried out by ELEKTROBUDOWA SA, its relations with customers principally have the nature of B2B transactions executed with the use of own resources (also through the activity of the related companies) and with the help of its business partners.

The Company is active in various areas, each having wide, diversified competition. In the markets it intends to enter there are usually hard to overcome barriers to entry. The situation is similar in the case of markets where the Company already exists: it is difficult to achieve such competitive advantage which would allow the company to compete in other ways than by prices. Therefore the competition in almost all areas finally comes down to price competition.

In the business model adopted by the Company, the most substantial costs are generated by purchases of materials, subcontracting and human resources. The vast part of total revenue is earned from performance of complete power systems and sales of electro-technical products.

Carrying out its business operations, ELEKTROBUDOWA SA cooperates with various suppliers who conduct their registered businesses, mainly with manufacturers, wholesalers, distributors / representatives of foreign manufacturers, and subcontractors, first of all in the area of electrical installation works and building works. In the accounting system maintained by the Company there are approximately 30 thousand suppliers registered, whom the Company employs to perform services in its manufacturing activity and service activity (also the suppliers of a single purchase or service). There are about 720 regular cooperators in respect of supplies for projects performed by the Company. Most of them are from the domestic market. Foreign suppliers are headquartered in Europe, Asia and North America. Our Production Division is one of our major suppliers, the internal sales procedure is applied in relations with the Division.

In the year ended 31 December 2017 the sources of supply did not change much compared with the previous year. The Company bases on the many-year cooperation with qualified suppliers, but, aware of the necessity to cut costs, it is constantly looking for new suppliers of materials, who could offer more favourable purchasing terms.

ELEKTROBUDOWA SA has the supplier qualification procedure in place, prepared according to the criteria applicable in compliance with the ISO 9001 standard. Qualified suppliers are subject to in-depth qualitative assessment. Their services are used first, so, following the procedures adopted by the Company, they receive our requests for quotation.

Every supplier is informed about the requirements of the Integrated Management System - Quality, Environment, OHS in place in the Company, by referring to our website, written information about suppliers’ obligations and training by persons responsible for supervision over the suppliers on the side of the Company. Following the procedures of the Integrated Management System in purchases of materials, components and parts used by the Company in manufacture of our products and rendered services and purchases of services within the performed contracts, guarantees that the goods, services and materials bought by the Company for manufacture and service purposes satisfy the quality requirements agreed with customers, as well as environmental and occupational safety requirements during the production process and in the period of their operation.

Suppliers and subcontractors are obliged to fulfil the terms of contract/order; additionally, to ensure safety of work with power equipment and installations and other work performed by them for the Company; all our subcontractors (personnel of suppliers performing services for ELEKTROBUDOWA SA) are acquainted with the guidelines of the Occupational Health And Safety Management Systems (OHSAS). The issues referred to during the training include: adequate identification of hazards and occupational risk assessment, response to near miss incidents and emergency situations, monitoring of compliance with occupational safety requirements, operating control, safety of operation of lifting slings, the procedure for control and monitoring of evaluation of actions related to environmental aspects.

Each supplier has to submit a written statement of getting acquainted with the text of System Requirements relating to the occupational health and safety and the environmental protection valid in ELEKTROBUDOWA SA, and with the Instruction for Subcontractors which specifies the rules of procedure in respect of impact on quality, environment and occupational health and safety to be followed by subcontractors when they perform work for the Company. The statement confirms their commitment to follow the requirements set in the quoted documents.

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