Business news
Swiss Franck Muller to invest in Minsk Watch Plant
MINSK, 4 March (BelTA) – The Swiss company Franck Muller International B.V. is set to invest in the Minsk Watch Plant. It is envisaged in Decree No 109 of 1 March 2010 “On attracting investments in the Minsk Watch Plant” signed by Belarusian President Alexander Lukashenko. The decree is posted on the National Legal Internet Portal, BelTA has learnt.
By 2020 an estimated 655,423,462 shares of the company owned by the Republic of Belarus are to be sold to Franck Muller International B.V. at a nominal cost of Br30 per share provided the Swiss company acquires 1,217,215,000 shares to be issued additionally in 2010 at the aforesaid nominal cost. At total of 1,122,831,985 shares owned by the Republic of Belarus will be given into trust management of Franck Muller International B.V. (with its consent) for five years. The company will be exempt from the profit tax up to 2020.
The Minsk oblast executive committee has been instructed to lease a 30-hectare land of the Shchomyslitsa agricultural company in the Minsk region to the Minsk Watch Plant for new production facilities and associated social infrastructure.
The Council of Ministers of Belarus has been instructed to prepare and sign an investment agreement with Franck Muller International B.V. within a three-month period. The agreement will envisage the modernization of production and renewal of the lineup of the Minsk Watch Plant. Under the document, the Minsk Watch Plant will produce watches and the company’s trademark will be preserved in 2010-2019. The staff of the company should be no less than 700 people in 2010-2019. The agreement also determines the responsibility of Muller International B.V. for the failure to meet its commitments.
In accordance with the decree, the investment project on upgrading the production and the product line of the Minsk Watch Plant will be included into the list of investment projects made up by the Customs Union Commission for exempting the company from the export customs duties and fees in the import of the equipment, component parts, raw material to the Republic of Belarus for the implementation of the investment project in 2010-2019.
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