Business case studies in Belarus

MAZ-MAN trucks

Inspirational success stories of foreign and international companies which are successfully investing and operating in Belarus

Foreign investment in Belarus has increased 13-fold since 2002. Around 60% of the goods made in Belarus are for export.

There are now:

• more than 2300 joint venture companies in Belarus
• almost 2000 foreign enterprises registered in Belarus

The following case studies tell just a few of these many business success stories...

Coca-Cola

Coca-Cola entered the Belarus market in 1994. In July 1997, it opened its first modern production facilities in Kolyadichy in the Minsk region

Since then, Coca-Cola has expanded and now has distribution centres in all major Belarusian cities.

Coca-Cola Beverages Belarus has won a string of awards including:

• Belarus Product of the Year – Coca-Cola and Bon Aqua (2005)
• Progress in Quality and Environment Protection – winner out of 200+ companies from 40 countries (2004)
• Best Entrepreneur in Belarus, the Minsk district and the Minsk region (2003)

Coca-Cola supports the local economy in Belarus in a number of ways:

• More than 70% of partners and suppliers are Belarusian companies.
• Two thirds of the materials used in manufacturing are locally supplied in Belarus.
• For every Coca-Cola employee, an estimated 10 more are employed in Belarus in the supply of components, raw materials and services.

Coca-Cola is also involved in community projects in Belarus including:

• Sponsorship of the Slavyansky Bazaar festival in Vitebsk.
• Investment of more than 2.6 million USD in the construction of an electric power substation in Minsk in 2002.
• Sponsorship of orphanages, medical institutions and NGOs.
• Sponsorship of local sporting events and organisations, including the National Olympic Committee in 2005.

Responding to the needs of the local market, the company launched the Fruktime brand in 2001 – a quality product at an affordable price.

Since 1994, Coca-Cola Beverages Belarus has made over 87.5 million USD in Belarus.

Maz-Man

Maz-Man is a Belarusian-German joint stock company which manufactures heavy trucks and large tractors. It was established in 1997.

Belarus has a long tradition of machinery manufacturing, and Belarus tractors are exported around the world. The Maz-Man company combines:

• the modern technology of its German partner (MAN in Munich)
• the experience and capacity of its Belarusian producer (MAZ in Minsk)

The company produces 2000+ trucks a year and employs 200+ people in Belarus.

The trucks in Belarus are aimed primarily at the domestic market. Because they are made locally, they’re more affordable than imported trucks.

Heineken Breweries

In 2004 Syabar Brewery was established as an American-Belarusian enterprise.

This was the first investment project in Belarus to be completed with International Financial Corporation (IFC) participation.

In 2001 the brewery in Bobruisk was facing bankruptcy. During the reconstruction phase almost 20 million USD was invested, with improvements including:

• complete refurbishment of the lager fermentation room
• installation of a new PE bottling line
• reconstruction of the cooking room

All refurbishments were undertaken using state-of the-art equipment and technology from Germany, Italy and the US.

The brewery employs over 200 people.

In 2007 the brewery was bought by Dutch brewer Heineken. In October 2010 Syabar Brewery was renamed IZAO Heineken Breweries.

Other foreign investment projects in Belarus

Foreign investment projects in Belarus are increasing. Other successful projects to date include:

• Elizovo (Belarus-Austrian glass factory)
• Santa Impex Brest (Belarus-German trading company)
• Mobile TeleSystems (Belarus-Russian telecommunications)
• Bakko Bisov (Belarus-Swedish-American steel instruments)

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