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THE ESSENTIAL
Stable Belarusian economy through new export-oriented enterprises

The stability of the Belarusian economy lies with setting up export-oriented enterprises. The statement was made by Prime Minister of Belarus Sergei Sidorsky on November 21 as the second technological line for manufacturing mineral wool products based on basalt fibre was launched in Gomelstroimaterialy company. The more similar enterprises Belarus has, the faster and simpler it will be to overcome negative phenomena on the global market.

 

WORKING TRIP TO THE VITEBSK OBLAST

Sergei Sidorsky: number of flax mills in Belarus may be optimised

Belarusian flax mills will be remodelled to achieve their maximum effectiveness in the next few years, Belarus’ Prime Minister Sergei Sidorsky said at an onsite session held in the Dubrovno region today to discuss the development of the Belarusian flax industry.

There are 49 flax plants in Belarus. “Measures should be taken to make the enterprises work effectively,” underscored the Prime Minister. “Proposals have been voiced to decrease their number to 25 flax mills, turning the rest into workshops or subsidiaries. But the proposals need additional discussing and detailing, as the flax mills are concentrated in regional towns and are local economic mainstays”.

The Prime Minister also demanded that issues concerning the future reconstruction of flax-processing companies, equipment purchases should be considered in more detail. As an example Sergei Sidorsky mentioned Dubrovno flax mill. The company’s equipment purchase contract did not include start-up and commissioning by the supplier. Such blunders should not be repeated in future, he emphasised.

Sergei Sidorsky pointed out, flax mills are lagging behind in commissioning new technological lines. Bought in 2006, two technological lines were commissioned only in 2007. Meanwhile, another two lines should be installed this year.

Belarus Premier criticises flax industry performance

Belarus’ flax industry is the only unprofitable agricultural branch left, Belarus’ Prime Minister Sergei Sidorsky said at a session held in the Dubrovno region on September 5 to discuss the development of the Belarusian flax industry.

Meanwhile, in his words, the government fulfilled its obligations concerning the financing of flax cultivation and harvesting programmes and equipment of agricultural companies. With the essential support provided, flax industry companies might have done better. They should have become profitable. However, over the last three years the companies have had negative profitability, remarked the Prime Minister.

Sergei Sidorsky demanded it should be cleared what machines agricultural companies lack to fully observe flax cultivation technologies. “They have machines, but use them extremely irrationally,” believes the Premier. Besides, there are problems regarding technological solutions and design. He tasked the Agriculture and Food Ministry and the National Academy of Sciences of Belarus with working out proposals about the possibility of setting up joint ventures to produce machines that flax cultivating companies need within three days.

According to Sergei Sidorsky, the government takes measures to further financially rehabilitate the flax industry. He pointed out Orsha Flax Factory has not fully paid for flax fibre that flax mills supplied in previous years, thus worsening the industry’s financial situation. That is why stricter measures will be taken to control timely payments for flax fibre. A resolution is being prepared to restructure the existing overdue debt of Orsha Flax Factory.

The Prime Minister believes, problems concerning the development of the flax industry should be considered together with other problems, including problems of processing companies.

Sergei Sidorsky also said, this year at least 60,000 tonnes of flax fibre has to be produced in Belarus.

Government plans to restructure stale debts of Orsha Linen Mill for supplied feedstock

The Government of Belarus has drafted a resolution on restructuring stale debts of Orsha Linen Mill for the supplied feedstock, Prime Minister of Belarus Sergei Sidorsky said at an onsite session held in the Dubrovno region today to discuss the development of the Belarusian flax industry.

Due to the state subventions Orsha Linen Mill should work efficiently, the Belarusian PM underlined. He demanded from top managers of the concern Bellegprom to give a report on the utilization of funds allocated by the state for the company’s development.

According to Sergei Sidorsky, purchasing prices for the flax fibre supplied to the mill were equal to the prices the Belarusian flax fibre collection centres were ready to export it at. Who will compensate for this price difference and how long the state should support the Orsha mill in order not to consider every month issues relating to the settlements of accounts between the mill and flax growing companies, the Belarusian Premier asked.

Orsha Linen Mill was tasked to intensify the work on expanding its offering list. Sergei Sidorsky demanded from top managers of Bellegprom and the Trade Industry to analyze in detail the range of Belarus-made linen products taking into account all market trends. Moreover, these products should be competitive. Flax growers and manufacturers should jointly settle all urgent issues, Sergei Sidorsky underlined.

High-tech equipment will be bought for flax cultivating companies of Belarus, Sergei Sidorsky says

In order to be profit making flax cultivating companies of Belarus should harvest 10-15 centners per hectare, Minister of Agriculture and Foodstuffs Leonid Rusak told BelTA. For this purpose a great variety of agricultural machines is needed.

Although in recent years the fleet of many agricultural companies has been upgraded still they need high-tech and highly productive machines.

Today participants of a session highlighting the development of the flax industry have attended testing of several flax-cultivating machines ranging between combine harvesters and loaders in the fields of Dubrova Flax Mill.

Not all machines received high appraisal. Thus, several remarks were made in respect of the last model of Gomselmash flax harvester which is not as productive and energy efficient as its Russian analogue.

Prime Minister of Belarus Sergei Sidorsky ordered the Ministry of Agriculture and the National Academy of Sciences of Belarus to organize additional field testing of the harvester, compare it with the Russian machine and make relevant conclusions.

A Russian pull-type combine received favorable assessment. The Prime Minister ordered to study a possibility of launching its production in Belarus.

Vitebsk Motor Repair Works together with Lemken have launched production of combined seeders. Yet, specialists believe that a special flax seeder is needed.

The Prime Minister demanded that the Ministry of Agriculture and Foodstuffs and the National Academy of Sciences put forward offers on improving the tested hardware and give an expert evaluation of the tests.

Belarus Government working out new measures to turn round flax industry

The government of Belarus is working out new measures to turn round the flax industry, Vice Premier Ivan Bambiza told BelTA after a government session held in the Dubrovno region of the Vitebsk oblast on September 5.

The session tabled all the topical problems the industry has as well as results of the flax cultivation development programme reached over the last two years. Ivan Bambiza noted, not all the results are satisfactory. In view of the fact instructions have been issued to prepare a set of measures aimed at further financial rehabilitation of the industry and to submit them for consideration of the Head of state.

Ivan Bambiza said, two variants of the flax cultivation industry development up to 2010 had been put together.

According to the Vice Premier, there are plans to raise purchasing prices for the raw materials supplied to Orsha Flax Mill soon. The correction may be slight, but it will help improve the situation in the industry.

Apart from that, it was decided to further upgrade flax mills in order to increase the output and quality of long flax fibre. The retooling of Orsha Flax Mill will continue to boost the enterprise’s turnout by 50%.

Speaking about plans to optimise the flax mills, Ivan Bambiza underscored, shutting down enterprises is not an option. “We have a good workforce potential and will try to keep it,” he said. Backbone flax mills will be chosen, with the remaining ones converted into workshops in charge of stocking up treated plant fibres.

As far as the provision of enterprises with the necessary machines is concerned, three working parties have been set up to assess the domestic solutions and compile a list of products to be imported, added the Vice Premier.

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Economy of Belarus/Economika Belarusi Magazine

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