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27 May 2016

Belarus’ government to consider support for Amkodor

PINSK, 27 May (BelTA) – The possibility of providing state support for the development of the Belarusian holding company Amkodor will be considered, Belarus President Alexander Lukashenko said as he met with the staff of Amkodor Pinsk on 27 May, BelTA has learned.

“I think that Amkodor will keep its promises. You have never let us down. If you do what you have promised, achieve the targeted level by the end of the year, you will feel the impact of the results. And the main thing is that you will lay the foundation for stable operation during next year and further on,” the head of state said.

The Belarusian leader was informed that the enterprises of the holding company Amkodor, including Amkodor Pinsk, operate steadily, produce competitive goods, and see development prospects. However, there are certain difficulties arising from external factors, exchange rate differences, and the need to repay loans spent on expanding the production capacity. All this washes out a certain amount of working assets which are of critical importance for the company’s performance, especially in the context of the growing demand for its products.

“To resolve this situation, boost the production and achieve the targeted level by year-end, you need some $35-40 million which is not that much. We will try to help you. I think we will find an opportunity to do this. And of course we will expect results from you. Forward is the only direction to go, whatever it takes,” Alexander Lukashenko stressed.

Chairman of the Amkodor Board of Directors Alexander Shakutin briefed the head of state about the state of affairs at the Pinsk-based enterprise and the holding company in general. Amkodor Pinsk has plans to boost its output four to five times. All the enterprises of the holding company are working to use as many Belarus-made parts as possible and to manufacture components in house. “Belarus-made machine components make up 80% of our products, and in-house components reach 60%,” Alexander Shakutin noted. The holding company makes a range of machines for different industries. For example, it offers product lineups for lumbering and peat digging. Millions of US dollars are invested in new engineering solutions annually.

“Why not help the company if it already has contacts with potential partners interested in these products,” Alexander Lukashenko noted during his visit to Amkodor Pinsk. The Belarusian leader pointed out that all resources should be granted on condition that they will be paid back.

Alexander Lukashenko noted that Belarusian companies should not compete with one another on foreign markets and act in an uncoordinated manner. The Belarusian head of state called for setting up common platforms to promote products and services of different companies. “Everyone should be engaged in the process to make a platform that will be operated by the Industry Ministry,” Alexander Lukashenko said.

The President also spoke about employment. He noted that the highest priority is placed on the country’s human resources potential and competent specialists. This is particularly relevant at the time of a crisis when many companies are particularly tempted to cut staff. “We cannot let this happen. Cutting salaries is an option, and there is always an end to a crisis,” the Belarusian leader emphasized.

Alexander Lukashenko said that 2015 was a difficult year from the point of view of the economy. External factors played a considerable role in that. “The world is globalized and interdependent. Today we cannot work relying on our own strengths alone. We are greatly dependent on others because we have an open economy,” the head of state explained.

The President studied samples of new promising machines manufactured at the enterprises of the holding companies Amkodor and Saleo.

Amkodor and Saleo are the largest in Belarus producers of industry-specific machines and vehicle parts. Their enterprises offer 90 vehicle and equipment models and over 2,000 types of products for hydraulic systems. Alexander Lukashenko emphasized that the companies develop and manufacture state-of-the-art products that are competitive on the global market.

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