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Business news

11 Feb 2015

BelAZ to set up outsourcing companies in CIS, Asia, Latin America, Africa

MINSK, 11 February (BelTA) – The Belarusian automobile engineering company BelAZ, the managing company of BelAZ Holding, has plans to set up joint outsourcing companies in the countries of the CIS, Asia, Latin America, and Africa in 2015, BelTA learned from the enterprise.

“We continue expanding our outsourcing activities. This year we are going to set up a number of joint outsourcing companies in Kazakhstan, Ukraine, Indonesia, China, Vietnam, African and Latin American countries,” BelAZ representatives noted.

The specialists pointed out that the company already practiced outsourcing in Russia, the South African Republic, Mongolia, and India in 2014. “In light of the current crisis in the mining industry, outsourcing proves to be profitable. Today not all companies can afford to buy a batch of our dump trucks,” the enterprise said.

“Now our clients can pay just for the volume of the cargo transported, without paying for the truck itself. The client signs a contract with our outsourcing company, and the document indicates the price for the transportation of one tonne of freight. Then he pays for the number of tonnes of freight carried,” the BelAZ representatives explained. They believe that it is more advantageous for both sides if the vehicles work 24 hours, since today not the client but the holding company bears losses from the idle time.

“We are in the process of negotiations with the countries in which we want to set up joint outsourcing companies. Our partners can be BelAZ dealers as well as other companies,” the specialists said.

Founded in September 1948, the Zhodino-based automobile engineering company Belarusian Autoworks (BelAZ) was incorporated into a public joint-stock company in 2010. As of October 2012 OAO BelAZ is the management company of BelAZ Holding. BelAZ is a leading global supplier of rock haulers and other equipment for the mining and construction industries. In 2014 the company operated a distribution network of 58 sales outlets, 29 dealers, 26 service centers in Russia, the CIS and non-CIS countries, and one assembling plant.

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