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Opinions & Interviews

31 Jan 2014

Lukashenko: Bellesbumprom Concern’s upgrade will increase Belarus’ exports

Lukashenko: Bellesbumprom Concern’s upgrade will increase Belarus’ exports

MINSK, 31 January (BelTA) – The modernization of companies affiliated with Bellesbumprom Concern will help boost the export potential of Belarus, Alexander Lukashenko said on 31 January at a meeting to discuss the state and development prospects of the companies affiliated with Bellesbumprom Concern, BelTA has learnt.

“We have always kept focus on the industry. We spare no resources on its modernization, because we believe it can make a significant breakthrough and boost the country’s export potential. Export means foreign currency. Hence, the toughest requirements to the payoff of the capital investments and to the operation of all the companies,” the President said.

The Belarusian head of state noted that no other companies get as much attention as the enterprises affiliated with Bellesbumprom Concern, in particular, wood processing enterprises. “Unfortunately, the major reason for this attention was serious failures and setbacks in the companies’ upgrade. The blatant violation of the financial discipline, lack of control and sheer mismanagement prompted us to respond harshly,” the Belarusian head of state said.

Alexander Lukashenko noted that he constantly reiterates the importance of the forestry, paper-and-pulp industry and wood processing industry, because these industries can take advantage of high-quality domestic raw materials and an extensive production network. “Nobody argues that we need to diversify the production. It is a lengthy process, it is going to be permanent in our country, because we heavily rely on resources, spare parts and other things that we have to import. We underuse the raw materials available in our country. The modernization of the wood processing industry is designed to rectify this misbalance,” the head of state said.

Lukashenko: Bellesbumprom Concern’s upgrade will increase Belarus’ exportsThe President mentioned that there are 173 cubic meters of wood per capita in Belarus, up 2.5 times compared to the global average. Nevertheless, up until recently the industry exported mostly round timber and cheap semi-finished products. “We exported timber and spent currency to buy furniture, high-quality paper and other products with a high added value instead of manufacturing all these things at home,” the Belarusian leader said.

This situation necessitated a dramatic revision of the established export patterns and a large-scale modernization of wood processing and paper-and-pulp companies. “This can be defined as ‘targeted modernization’ - we handpicked several companies and decided to upgrade them,” Alexander Lukashenko said.

The Belarusian head of state noted that huge public funds were earmarked, bank loans were raised, and unprecedented support of the government was provided to implement investment projects. “Of course, the state needs to control how the investments are used and how the investments pay off,” the President noted.

Alexander Lukashenko reminded that when he appointed Yuri Nazarov Chairman of Bellesbumprom Concern, he set clear-cut tasks to straighten out a mess at all the companies and make sure the modernization projects will be completed in time.

The head of state wanted to know what is being done to accelerate the modernization and to reach the design capacity, how the processing depth of raw materials will increase and whether the effort will result in the manufacture of goods with a high added value. “I would like to draw your attention on that, because I am concerned about your plans to export 60% of the boards made by upgraded facilities. Does it mean that you will again ship semi-finished products abroad? Is it smart? Why cannot you sell finished products with a higher added value, like furniture, instead of semi-finished goods?” the President asked.

The head of state wanted to know about the projected economic and other benefits of the modernization, like output growth and increase in export, import substitution and improvements in product quality.

Lukashenko: Bellesbumprom Concern’s upgrade will increase Belarus’ exports“Have you properly analyzed the sales of finished products, the expansion of sales geography and the establishment of new ties? How are you going to balance out the needs of the domestic and foreign markets? How are you going to improve the operation of your sales network and sales outlets and introduce new forms of trade? The objective is not just to sell products, but to sell them more efficiently, without intermediaries, maximizing the inflow of foreign currency into the country,” the Belarusian leader said.

The President urged the companies to improve their financial performance and the repay loans in time.

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