Processes of economic restructuring and functional transformations of an industrial city based on the city of Żory, Poland

For decades the Silesian voivodeship has played a key role in the development of the economy of Poland. Its central area is occupied by an old industrial region which has been developed since the 19th century on the basis of coal mining and the processing of iron, zinc and lead ores. As a result of the political transformation of the country, after 1989, the region was faced with a difficult economic situation – a significant reduction in production was recorded and numerous unprofitable obsolete mines and steelworks were decommissioned. Since then, the economy of the Silesian region has been subject to restructuring and revitalization. This article presents this process as illustrated by a representative city – Żory. This is one of the oldest cities in the region which was established in the Middle Ages (1272). For centuries, its inhabitants were engaged in agriculture, fish breeding and trade. Its industrial development started with the construction of the ironworks at the beginning of the 19th century, but the investments after the Second World War were of greatest importance to the city. At that time the “Fadom” factory, two hard coal mines – “Żory” and “Krupiński” – and a plant known as Zakład Tworzyw Sztucznych ERG (Synthetic Fibres Works “ERG”) were constructed. After the political and economic changes of 1989 the economy of the city required urgent restructuring. The change of the function of the city of Żory proceeded gradually, but the creation of economic areas and zones, especially the establishment of the Jastrzębie Zdrój and Żory Subzone of the Katowice Special Economic Zone (1996) and Żory Industrial Park (2004), were of crucial importance to the development of the city. Over the past 20 years the city of Żory has changed from a city dependent on the extractive industries, without signs of a developed urban infrastructure, to a centre of a varied structure of production. Employment in industry and construction decreased from 65.5% to 36.3%, and doubled in the case of services. The private sector currently comprises 75% of all economic entities – most of the companies are small or medium-sized enterprises up to 250 employees.