Privatisation opportunities are expected to flourish in Belarus’ chemicals and petrochemicals sector.
The Mozyr and Naftan oil refineries are a vital part of Belarus’ petrochemicals industry, and jointly processed more than 20 million tonnes of crude oil in 2008. They produce a huge array of products, from fuel and motor oil to high grade plastics and consumer goods.
The two refineries are both controlled by the state-run energy giant Belneftekhim and are heavily export-focused with 70% of their output sold overseas – predominantly to the European Union, and to neighbouring CIS countries including Ukraine and Moldova.
Naftan is the older of the two refineries – beginning its operations in 1958 – and today employs more than 12,000 staff while Mozyr opened in 1975 and has 4,000 employees.
Both are structured as joint stock companies, with 43% of Mozyr owned by Russian oil Slavneft, while Naftan is still owned by the Belarusian state.
The two refineries are both in the middle of extensive modernisation programmes to improve the quality of their products and reduce their environmental impact.
Over the last four decades Belshina has grown from humble beginnings into one of the largest tyre manufacturers and exporters in Europe.
The business, based in Bobruisk, in the south east of Belarus, produces over 4.5 million tyres a year, for cars, trucks, road construction vehicles, buses, tractors and agricultural machinery.
Belshina employs 13,000 people and was prepared for privatisation in 2002 when it was converted to an open joint-stock company (OJSC), along with five of the other largest enterprises in Belneftekhim, the sprawling state chemical company it was spun out of.
It exports to over fifty countries around the world, including the US and Russia, as well as states in the EU, Middle East, Africa and South America.