A. Lukashenko: Modernised and new enterprises must operate without benefits, generating profit for the budget
12/12/20110 views
On December 12, Minsk /BelTA correspondent/. Belarusian President Alexander Lukashenko, during a working trip to the Mogilev region on December 12, emphasized that modernized and new enterprises, which have received significant state funding, must operate without benefits and generate profit for the budget. This was reported to BelTA by the press service of the Belarusian leader.
"I want to push the enterprise so that after construction, it pays taxes in full, repays loans, and functions as it should. Otherwise, what is the point of this enterprise, which should provide maximum benefit to the state, if we are to subsidize it, thereby receiving less funds for the budget," the head of state noted.
The President's working trip focused on the development of the country's paper industry. Upon arrival at the Spartak paper mill in Shklov, Alexander Lukashenko inquired about the fulfillment of his instructions, given several years ago, regarding the technical re-equipment and reconstruction of the enterprise. The President specifically stressed that while the country has sufficient timber, which is the raw material for the paper industry, paper had to be purchased abroad.
As reported to the head of state by the mill's director, Sergey Shumsky, all work has been completed, the enterprise is operating profitably, and next year it will reach its design capacity with profitability reaching 25-27%. "This is significant for the team," he said. "This is significant not only for the team but for the country as a whole," Alexander Lukashenko reasonably remarked, referring to the strategic importance of developing the paper industry in Belarus.
The total cost of technical re-equipment and reconstruction of the Spartak paper mill amounted to Br338.2 billion at current prices. Of this, Br185.2 billion was spent on equipment, and Br153 billion on construction and installation work. The majority of the funds came in the form of budget loans. It is expected that upon reaching its design capacity in 2012, the production volume at the enterprise will increase 5.5 times in comparable prices. In turn, the increase in production will significantly raise the wages of the factory workers.
New production capacities of the enterprise require larger volumes of raw materials, including waste paper. The Head of State has instructed the government to establish an effective system for collecting and processing secondary raw materials. "A relevant program should be created within the government. Everything needs to be detailed and communicated to each district and city executive committee, and city administrations. It's time to assign them these tasks," said Alexander Lukashenko.
Vladimir Shulga, Chairman of the "Bellesbumprom" Concern, reported to the President that in 2012, Belarus plans to collect 230 thousand tons of waste paper, while the industry's overall demand is about 300 thousand tons per year. According to estimates, over 0.5 million tons of this raw material are generated annually in Belarus. Therefore, the primary task is to increase waste paper procurement volumes. However, according to Vladimir Shulga, sorting and packaging are equally important. Currently, waste paper in Belarus is mostly delivered in bulk without separating paper by quality.
The government proposes to transfer waste paper collection functions to a new operator, the Ministry of Housing and Communal Services, as this ministry has the necessary infrastructure to organize this work. "Next year, it is mandatory to procure 300 thousand tons. This is not a problem, and we should add 50 thousand tons in the first three years. This applies to other areas as well," instructed Alexander Lukashenko. He also noted the need to establish effective collection of secondary raw materials in other areas, such as scrap metal and glass.
The President emphasized that much remains to be done in Belarus to establish proper order in the organization of secondary raw material collection and processing. For example, in a number of Western countries, a significant proportion of products are manufactured from secondary raw materials.
In addition, the paper mill requires bleached pulp to produce a range of products, including sanitary paper. Bleached pulp is not yet produced in Belarus and is therefore imported. Alexander Lukashenko has instructed that by 2014, a project for the construction of a new enterprise for the production of bleached pulp based on the Svetlogorsk Pulp and Cardboard Mill should be implemented.During his visit to the Spartak factory, the Head of State was also informed about the work of another Shklov enterprise – the newsprint mill. According to its director, Anatoly Khmelevsky, the mill currently meets 100% of the demand of Belarusian consumers for newsprint and successfully supplies products for export. In the future, the enterprise plans to build another workshop for the production of paper, which is the base for decorative facing materials. Two foreign companies have already been identified that are ready to undertake the project implementation. "Make up your minds, submit proposals, but we cannot delay," demanded Alexander Lukashenko.
Speaking about the two enterprises in general, the President emphasized: "We have invested huge funds in them, and they must pay off not in 14-15 years, but in 10 years. Why should we create benefits at the expense of the state, we have already invested a lot here."
Alexander Lukashenko inspected the production area of the Spartak factory, visited the workshops where he familiarized himself with the technological process of producing paper and paper products using the latest technologies. "From every square meter, we must obtain products with high added value and of world quality. We cannot sell semi-finished products," the President stressed, noting that the large vacant areas on the enterprise's territory allow for expanding the range of manufactured products. He instructed the President's aide – chief inspector for the Mogilev region, Gennady Lavrenkov, to monitor this issue quarterly.
The Head of State also drew attention to this during his inspection of the exhibition of products manufactured at the factory. "If something that is in demand in trade is not produced here, then the range should be expanded," he noted.
Alexander Lukashenko was pleased with what he saw. He instructed to approach the development of other enterprises in the country, which require modernization and reconstruction, in a similar, business-like manner.The net profit of OJSC "Paper Mill "Spartak" for January-September 2011 amounted to Br1.5 billion, compared to a net loss of Br1.5 billion for the same period in 2010. In 2012, with the new paper-making machine reaching its design capacity, the mill will ensure the production of two- and three-layer paper for sanitary and hygiene purposes, previously not produced in the republic, and products made from it with high consumer characteristics and quality. After the production modernization, the mill will also become one of the leading enterprises in the country for the production of corrugated board, flat linerboard, corrugating medium, and sanitary and hygiene products. For nine months, the enterprise exported products worth $2 million, which is 10% more than the previous year's figure. Export contracts worth $15 million have already been concluded for 2012.
In general, the concern "Bellesbumprom" is implementing nine investment projects to create new export-oriented productions based on its own raw material base and to increase the economic security of Belarus. -0-
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