The technical re-equipment of the Orsha Flax Mill is being carried out at the expense of its own foreign currency earnings.
17/01/20120 views
17 January, Orsha /Diana Kurilo - BELTA/. The technical re-equipment of the Orsha Flax Mill is being carried out at the expense of its own foreign currency earnings. This was announced to journalists by Gennady Vyrko, Chairman of the Belarusian State Concern for the Production and Sale of Light Industry Goods ("Bellegprom"), in response to a question from a BELTA correspondent.
"The second stage of the enterprise's reconstruction was planned to be financed by attracting an external loan of about 80 million euros. For various reasons, it was decided to carry out the modernization using our own foreign currency earnings under certain conditions," explained the concern's chairman. The funds for this are available: the Orsha Flax Mill exports 70% of its products. The positive foreign trade balance is estimated at $28 million. According to the concern's assessment, only OJSC "Mogotex" has a larger surplus.
According to Gennady Vyrko, the modernization carried out in 2007-2009 contributed to the effective operation of the Orsha Flax Mill. The first stage of technical re-equipment was financed by subsidies from the republican budget funds amounting to Br53 billion. These investments made it possible to install 122 units of technological equipment, the commissioning of which ensured improved quality, expanded and updated the range of linen fabrics and products made from them, while simultaneously reducing production costs, including through cheaper raw materials. A new type of product made from short flax fiber, "kotolen," has been developed, which is used for the production of high-count yarns. "I will not overestimate the successes, but they exist," said the concern's chairman about the activities of the Orsha Flax Mill.
At the same time, Gennady Vyrko considers it necessary to accelerate the work on commissioning the equipment purchased under the second stage of modernization. In accordance with the instructions of the President of Belarus, given following a meeting in March 2010, modernization is being carried out at the Orsha Flax Mill in 2010-2012. The mill has developed a development strategy for the period up to 2013, with a projected capacity to be reached by 2015.
RUPTP "Orsha Linen Mill" is one of the leading light and textile industry enterprises in Belarus and other CIS countries, established in 1930. Currently, the enterprise comprises: Factory No. 1 for the production of carpet yarn, tarpaulin fabrics, and technical products from short fibre; Factories No. 2 and No. 3 for the production of yarn and fabrics from long flax fibre; a finishing factory producing finished household fabrics; and a garment factory. The enterprise has 25 workshops and 133 production sites. As of early 2012, the workforce exceeded 5.7 thousand people, accounting for 30% of all those employed in Orsha's industry.
Production capacities allow for the processing of approximately 25 thousand tons of flax fibre annually and the production of up to 30 million square metres of linen fabrics. The product range reaches 2 thousand articles. These include household fabrics of various designs and colours, finished products, and technical products. Household fabrics and products made from them constitute 77% of the enterprise's production volume. In 2011, the enterprise supplied products to 7 CIS countries and 21 foreign countries. The share of household fabrics supplied for export is over 70%. According to preliminary data, sales profitability for the results of 2011 will be 19.6%. Net profit amounted to over Br70 billion.-0-
BELTA