Business news

6 Oct 2020

Bellesbumprom’s recent accomplishments discussed

An archive photo

MINSK, 6 October (BelTA) – Chairman of the Belarusian timber, woodworking, pulp and paper industry concern Bellesbumprom Mikhail Kasko described the results achieved by Bellesbumprom enterprises during the government conference hosted by the head of state on 6 October to discuss the development of the woodworking industry, pulp and paper industry, BelTA has learned.

According to the source, the industry operates steadily. The financial and economic performance targets are mainly hit. There are complications with efforts to increase export. At the same time Bellesbumprom’s export to the European Union and China is fine. “We’ve also reached an optimal distribution between markets – 30-30-30. We are not dependent on one single market,” Mikhail Kasko stressed.

“It is good that you’ve diversified the markets,” Belarus President Aleksandr Lukashenko said to evaluate the work that had been done.

Speaking about Bellesbumprom’s accomplishments, Mikhail Kasko mentioned a new historic high: 75% of Bellesbumprom’s output is exported. “For a good price?” the head of state asked for a clarification. “For a market price,” Mikhail Kasko explained. “The industry’s profitability is above 7%.”

At present Bellesbumprom’s pulp and paper industry is implementing three significant investment projects. Details and complications of each project were discussed during the government conference hosted by the head of state on 6 October.

Shklov

Work is in progress over there to start the production of base paper for making decorative facing and lining materials. The necessary equipment is being delivered, installed, and tuned. The work proceeds on schedule. The facilities are supposed to be commissioned by the end of the year, with the designed output capacity to be reached stage by stage.

Dobrush

A project to start manufacturing coated and uncoated pasteboard is being implemented in the town. The project is divided into seven stages, which can be commissioned separately and which output can be used as part of the existing manufacturing processes. Some installations and a wood yard are supposed to be commissioned soon. At the same time due to the pandemic the Austrian specialists, who were supposed to commission the main manufacturing line, arrived in Belarus later than expected. This is why the timing of all the consequent stages has been shifted.

Svetlogorsk

The second stage of the project to build a pulp plant is being implemented by Svetlogorsk Pulp and Board Mill.

The first stage of the enterprise to make sulfated bleached pulp was commissioned in January 2020 and successfully operates. It has already made over 183,000 tonnes of commercial-grade sulfated bleached pulp (60-70% of the designed output capacity).

On the whole, this year OAO Svetlogorsk Pulp and Board Mill’s output has increased by 1.6 times in comparison with 2019 to Br325.7 million. Export has increased by 1.8 times to $108.4 million. Profitability of pulp sales exceeds 22%.

However, since the project was launched, the average price for pulp has more than halved: from $870 in 2012 to $420 in 2020. With the expected construction time past the deadline and with a shorter period for Belarus to repay Chinese loans, the enterprise is unable to fully honor its commitments to repay borrowed money on time. Despite that Svetlogorsk Pulp and Board Mill will honor its commitments to the central state budget to the tune of about $20 million in 2020. The company will fully repay last year’s obligations among other things.

Work is in progress to start making special kinds of paper, for instance, kraft paper, in order to further develop the enterprise. The site for building the facility has been chosen, offers of potential equipment vendors have been evaluated, and the business plan is being worked out.



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