Belarus President visits MogilevKhimvolokno company

Belarus President visits MogilevKhimvolokno company

The President of the Republic of Belarus has visited MogilevKhimvolokno company. By 2020, this giant of Belarusian chemical industry will turn into an entirely new enterprise. Modernization will ensure the needed radical qualitative changes, according to the task given by President Lukashenko.

Many people have worked here for decades, like their parents did, along with their spouses and adult children.

MogilevKhimvolokno was founded about 50 years ago. The previous five years saw BYR480bn (which is about $27m) invested. As a result, several shops were reequipped, which let them produce new products.

In the long term, all outdated and unprofitable equipment will be replaced.

The Head of the State is highly interested both in the present and in the future state of the enterprise.

Alexander Lukashenko, President of Belarus:
Are these products in demand on the market?

Piotr Rudnik, General Director of OAO MogilevKhimvolokno:
Yes, they are.

The director of the enterprise claims that the chemical plant can be profitable.

Nowadays, there is a large-project implemented. This is Polyester Production Complex and it costs about €200 mln.

Piotr Rudnik, General Director of OAO MogilevKhimvolokno:
The output volume of the main polyester production is expected to increase from 65,000 to 100,000 tons. As for industrial yarns, we are going to increase the manufacturing capacity from 17,000 up to 27.000 and beyond.

The construction will be implemented in two stages.

The first stage will see the reconstruction of the chemical shop of Organic Synthesis Plant and the construction of an entirely new Polyester Production Complex. Several technically interconnected productions will be constructed at the second stage. The commission of the Belarus President is to implement the whole construction work as soon as possible in order to reach the breakeven point by 2020.

Alexander Lukashenko, President of Belarus:
We are working on the two stages simultaneously.

Your task is to negotiate with the German side on the equipment. Equipment is the most important issue for us.

Builders will work here day and night. It’s up to us. We’ll do it ourselves, and it will be the most up-to-date enterprise possible. If this black ceiling has to be removed, though it looks quite nice, you have to remove it. If you have to paint it, do it then. Modern equipment cannot be placed in a shed. The second stage will lead us to profitable work; it will be completed by 2020, by 7 November. The second issue to negotiate with the Germans is a loan. But in 2020, we need this company to be profitable.

Today, there are over 5,500 workers at the company. But one more issue on today’s agenda is the utilities of the Mogilev Synthetic Fibre Plant. Not in the use for a long time, they occupy more than 65 hectares of land, and their demolition would cost more than $15m.

Alexander Lukashenko, President of Belarus:
On economic grounds, I demand that you put in order all the fences around these buildings. Now I see what should and what should not be demolished. At the moment, it’s better to focus on these two projects. We’ll pay up 15% of the expenses. But the work has to be done soon, so as the company could operate normally again, and then you can demolish all the unnecessary premises.

During the meeting with the staff of the enterprise, President Lukashenko underlined that

the company will not just operate as usual but will be a worthy rival to the leading world manufacturers.

Alexander Lukashenko, President of Belarus:
We inherited these enterprises from the Soviet Union and saved them all. However difficult it was, we supported them and they had a nice profit. Recently, we’ve got a failure on the market. But now we see our enterprises recovering. Both you, as the staff of the enterprise, and I, as the President of the country, have to deal with it.

In 2020, it will be an entirely new enterprise.

And we won’t stretch the timeline of the modernization by 2025, its two or three stages, as it was reported by Piotr Mikhaylovich. We have decided to finish it all by 2020, so as to produce what is really needed on the market.

We simply have no right to produce anything without focusing on the market needs. It’s our main task.

Your specialists, along with the management, have analysed the situation on the market. They claim that our production of 2020 will be in demand. But our rivals don’t waste the time either. They are going to build new enterprises in Turkey and in Russia. The sooner we’ll enter the market, the more dividends we’ll have. That’s why we have to hurry. We’ll collect the needed money wherever it is possible. We’ll accredit somewhere, we’ll order the equipment. Start working on it, get involved and cooperate. Now there are 6,000 workers here. Perhaps, there will be the same number of workers, perhaps 5,500 of them. But I’ve told your general director that he mustn’t dismiss anyone who is willing to work.

During last 9 months, the export of the enterprise to 27 countries achieved $130m. Higher results are expected from the export of complete products, which have to replace semi-finished ones.

Alexander Lukashenko, President of Belarus:
We have to produce ready-made products, so as not to make just fire hoses from this fibre, but all those complete products that are produced by those who buy your semi-finished products. This is got to bring a lot of money due to added costs. That’s why there should be three stages of modernization. The first one has already started. The second one will be finished by 2020. And the third stage can start even tomorrow if someone comes up with an idea, if you launch production of ready-made products to get more added costs and not to sell semi-finished products.

The Belarus President was glad to hear that his words had made the staff feel confident in the future of the enterprise and they would be happy to see their adult children working there.

Alexander Lukashenko, President of Belarus:
This is what is really worth a lot. We should spend money to make people happy.