Tractor plant and investment fund: Belarus-China future projects

Tractor plant and investment fund: Belarus-China future projects

New major projects are planned between Belarus and China. This week, representatives of the Chinese corporation CITIC Group visited Minsk. At a meeting with President Alexander Lukashenko the details of the future projects were discussed.

The company from China has already built three cement plants in Belarus.

Now it is engaged in the production of passenger cars and modernization of Orsha Linen Mill.

In the autumn of 2016, President Alexander Lukashenko is set to visit China. Certainly, the contours of new Belarusian-Chinese projects will be specified there, too.

This is a ceremony of laying a capsule at the future site of the Belarusian-Chinese business center. 140,000 m2 will include a 25-story hotel, several office buildings, banks, a conference hall with 500 seats, a two-story restaurant and a sports complex with a swimming pool, gym and spa. This costs 120 million dollars, which is direct Chinese investment. The construction is going to be completed in two years. This is only one of the new Belarusian-Chinese projects. And now we are at a company specializing in equipment manufacturing. Amkodor launches several joint projects with the Chinese corporation.

Igor Kayuda, innovation and investment project director, Amkodor:  
Three major projects will be created. The first is a factory for the production of trucks and energy-powerful tractors in the village Kolodishchi. That is, our factory will be put there. The second project is the construction of a tractor plant in Novopolotsk to produce a wide range of tractors, relevant to international standards.

The third project will be a joint holding company in the Mogilev region. The largest and very modern. The holding company will be engaged in milk processing and animal husbandry. 

Igor Kayuda, innovation and investment project director, Amkodor:
We focus entirely on world markets. In these projects we solve two problems simultaneously. The first is co-production: we create products with the highest added value and solve marketing issues. The Asian market, other global markets, where our Chinese partners already have a commodity distribution network. Naturally, we have focused on this.

The main principle is to find markets before making products.

Alexander Lukashenko, President of Belarus:
Your company is one of the largest in the world. And it gives me great pleasure to cooperate with a company like yours. You know about the strategic nature of relations between the People's Republic of China and Belarus. And the work of your company in Belarus is organically woven into the fabric of these relations.
In the near future (probably in September), we will hold high-level talks in Beijing with my counterpart Xi Jinping. We have a broad agenda, a lot of issues that we need to agree and decide on.
I will not deny that we very much hope that by this time, our ministries, our businesses, and companies, in negotiations with your company, will find not only a topic for further talks but also prepare draft documents on the implementation of serious long-term projects in the two countries. First of all, in Belarus.

The largest industrial trade and investment Chinese state corporation CITIC Group is, in fact, the ministry of foreign investment. Currently it is implementing projects worth $40 billion. It already has the experience of work with Belarus: three cement plants, BelGee and Orsha Linen Mill.

Wang Jun, head of CITIC Group (China):
CITIC Group is a global investment company. And we see great opportunities for business in Belarus.

Your advantage is government support, high level of staff and production costs.

During the visit of the head of the corporation to Belarus, the sides signed several new agreements. In particular, a common investment fund with a starting capital of $50 million has been established.    

Director of sales of terminal equipment, Huawei: Belarus is a very important country for us. We think that here, in Belarus, business area is very good, beneficial for our business. We are now ranked third in the world and we want to become number one in the world, including in Belarus.

Here is another major Chinese company. Ongoing are two Belarusian projects. Another one is in the preparation stage. The logistics center in Great Stone industrial park and a student dormitory. We are just at this site. Here, more than a thousand students will live. A city polyclinic will also be located here.

Project manager for Belarus, China's railway construction corporation:
Why did we choose Belarus? Because now the leaders of the two countries enjoy very good and close relationships. And the peoples of the two countries are also friendly. In the future, social housing will be implemented. Also, we intend to participate in tenders for this object.

For China, Belarus is an important strategic partner in Central Europe. For Belarus, China is big and strong partner too.

Sergei Voytekhovsky, head of the Investment Department of the Ministry of Economy of the Republic of Belarus:
By the end of 2015, China has become one of the main trade partners of Belarus. It occupies 3rd place. China is also one of the main partners in the credit and investment sphere. In 2011-2015, over $ 1 billion of foreign investment came from China. The dynamics is very good: if we compare 2015 with 2011, we will see a 2.7-time growth

Direct investments have increased during this period by four times.

Sergei Voytekhovsky, head of the Investment Department of the Ministry of Economy of the Republic of Belarus:
Today it is necessary to regard China as a major donor with which you can get both technology and financial resources. And therefore, prospects for cooperation are very substantial.

The trade turnover between the countries has exceeded $3 billion for several years.