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from 04.08.2021

Development strategies of Belarusian enterprises to rely on existing realities

It is necessary to rely on the current realities in the course of working out strategies for developing Belarusian enterprises. Prime Minister of Belarus Roman Golovchenko made the statement as he visited the Belarusian tire manufacturer Belshina.

The Prime Minister said: “Back in October we decided it is necessary to work out a Belshina development strategy. A lot of work has been done since then. We've decided to approach the matter seriously: we've hired one of the world's top consulting companies, which are competent in this branch of the manufacturing sector and in this business. This team and Belshina representatives have been working out the strategy since then. Because we believe that there is no other way for Belshina to recover from quite a complicated financial situation due to a number of reasons. If it has to be done, it should be done correctly and scientifically. We don't just rely on someone else's expertise. We've examined it thoroughly from the point of view of Belshina's situation. The strategy has been approved as a whole. It will allow making plans for the next five years by implementing a number of managerial decisions that will penetrate the entire sphere from production planning to marketing and sales. This is why we think it is just the solution that, coupled with other state support measures, will help resolve the company's key problem – the reduction of the debt burden and the achievement of maximum output capacity after the implementation of investment projects.”

Similar work is in progress at other enterprises. Roman Golovchenko went on saying: “As for Belshina we've decided to follow the internationally recognized way – we've worked out a strategy and agreed to oversee its implementation. Today we've discussed how the achievement of performance indicators will be monitored. Every person has to understand what goals he or she has to achieve in their position. On the whole, state support for all Belarusian enterprises will be reduced. Instead of using state support as a systemic tool the government will use it as assistance for those, who land in a difficult situation, for instance, due to market changes: a sharp increase in prices for raw materials, rapid changes in the current market situation, and so on. We are not going to provide state support to Belshina in the form of any financial infusions. We've agreed that as part of the work to implement the strategy we will consider partial restructuring of the debts and the enabling of more comfortable conditions for repaying the debts. But it will be strictly tied to the implementation of the measures stipulated by the strategy. Belshina's debts are rather large, both to the state budget and to commercial banks. We will work on a comprehensive solution for reducing the loan burden one way or another. We will decide how the enterprise can invest in floating assets and the completion of investment projects. All of it needs to be done so that Belshina could pay off the debts.”

Roman Golovchenko also noted that last week the Head of state approved a social and economic development program. GDP growth and salary growth are some of the key indicators of the program. “Such growth can be secured if enterprises operate at the top output capacity and the goods sell. Mechanical engineering, processing industry, woodworking, construction materials – all these branches of the economy develop rather intensively due to the growing domestic demand. As for the real sector of the economy, we need to see results from the investment projects, which were implemented during the previous five-year term. It is necessary to continue investing in the installations that require modernization,” the Prime Minister stressed. “Belshina needs to raise earnings by Br150-200 million every year. It will allow the company to calmly implement all the plans.”

The Prime Minister was also made familiar with progress in implementing major investment projects at Belshina and with the company's manufacturing cycle.

In 2020-2025 Belshina intends to implement several major investment projects. All of them are designed to retool the enterprise. As part of one project the company's large-size tire plant intends to start making radial tires with solid metal cord and the rim diameter of 25-29 inches. Another project provides for starting the production of solid metal cord radial tires with the rim diameter of 57-63 inches and for reconstructing a stock preparation shop. The second stage of the project is in progress now.

Vasily Kunitsky, Chief Engineer of the large-size tire plant, said that a new 117-inch press was commissioned at the plant on 28 July. Over the course of one month Belshina representatives and representatives of the press manufacturer tested ten tire models and ten wide-section molds. The enterprise intends to commission another sixteen 117-inch presses in the future. “This is in essence how the modernization of the vulcanizing shop of the main building of the large-size tire plant began,” the executive said. “We intend to commission additional equipment in September. An x-ray machine will be installed to inspect tires for internal defects. Since the plant was built, we've been making diagonal-design tires with 32 thread layers. The new equipment allows making tires in one layer with a metal body. It saves resources and the tire can more easily handle blows, cuts, and rock mass.”

According to Belshina Director General Andrei Bunakov, the Bobruisk-based enterprise has prospects for future development. “With this in mind we are implementing a number of investment projects, which primarily affect the large-size tire plant and the supersize tire plant. We have to work on quality but the most important thing is that it is the foundation for the future development of our enterprise. A strategy has been worked out. We know where we should go and know where customers wait for us. We have orders to fill in H2 2021,” he stressed.

Belshina is busy penetrating new markets. “Every country uses automobile tires starting with car tires and agricultural tires and ending with truck tires and supersize tires. We are working on all these kinds of merchandise because we can diversify operations on the market, particularly nearby ones. We don't forget about remote markets either and are always ready for work. It is possible to effectively sell car tires within a 3,000km radius, truck tires and agricultural tires within a 4,500-5,000km radius, and large-size tires and supersize tires can be sold effectively all over the world. We are ready for this work,” Andrei Bunakov added.

The public joint-stock company (OAO) Belshina comprises three tire factories that make large-size tires, mass market tires, and supersize tires as well as a mechanical plant, which provides equipment and tools for the main manufacturing division, a number of centralized divisions, and a rubber goods factory in the town of Krichev. Belshina offers over 400 tire models. It started batch production of about 70 new tire sizes in the last three years.

Photo: BelTA