Andrei Kobyakov visited the JSC Kamvol

The management of the Belarusian textile manufacturer JSC Kamvol should prepare substantiation in order to get additional funds for implementing the company’s investment project. Prime Minister of Belarus Andrei Kobyakov gave the relevant instructions as he visited the enterprise on 3 December.

A government conference chaired by the Prime Minister took place at JSC Kamvol premises on 3 December. Progress in fulfilling the head of state’s instructions concerning the company’s retooling and development was discussed among other things.

After the company’s management said they needed more money from the innovation fund of the Minsk city administration to finish the investment project Andrei Kobyakov said: “I would like you to put together substantiation for allocating the additional funds that will specify in detail how the money will be spent.”

The Prime Minister noted that Kamvol had been seriously retooled already and can now make 6 million running meters of fabrics per annum. “Unfortunately, not everything has been accomplished. The modernization of textile finishing operations has yet to end. It is likely to happen in H1 2016 at the latest,” he stressed.

The company is also having problems with sales. Andrei Kobyakov stated: “We spend money first and then we work hard to find buyers for the merchandise although it is obvious that selling the goods is what matters. Indeed, the manufacturing division has done a lot of work to prepare a brand new product range, which needs solid demand, primarily, among the local apparel manufacturers. But not everything works out for now. This is why before making the final decision on financial matters and the end of the retooling campaign we should seriously put more efforts into this part,” stated the Prime Minister.

In his words, the company has the technology and the state-of-the-art equipment to accomplish the goal. “Working conditions today and three years ago when the head of state was here differ a lot. But unfortunately, the workload is subpar, the economic indicators are weak and those figures are what matters. This is why there is certain dissatisfaction with the results but it is possible to resolve these issues,” concluded Andrei Kobyakov.

While the company keeps working, the work to retool JSC Kamvol continues as part of the fulfillment of Belarus president decree No. 510 of 14 November 2013. According to the company’s management, as of 20 November they spent €3.5 million from Belarusbank’s credit line to replenish operating assets. As part of the investment project the company has bought and has signed contracts for the delivery of over 220 units of equipment worth €46 million. Contracts are being signed and tenders are being held to acquire €1.3 million worth of equipment. Since the investment project was launched, Kamvol has acquired over 170 units of equipment worth €35.9 million.

The retooling campaign prioritizes making a new good-quality competitive product range and promoting the merchandise fast to the domestic market and foreign ones. New pre-processing equipment for the spinning division has already been installed as well as automatic spoolers, twisters, and weaving machines. The new equipment will allow the company to make finer semi-worsted combed yarn for making fabrics fit for men’s and women’s apparel.

Kamvol representatives also said that the management had analyzed the stock in storage in detail and had developed an action plan to reduce it by the end of the year.

The public joint-stock company (JSC) Kamvol makes textiles through reliance on a complete production cycle from wool processing, yarn production to fabric manufacturing. The company sells merchandise to Europe and the CIS. Kamvol is part of the Belarusian light industry concern Bellegprom.

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