Business news

MINSK, 18 January (BelTA) – Belarus is eager to implement new projects with Austria’s Kronospan Group, Belarusian Prime Minister Andrei Kobyakov said as he met with Kronospan owner Peter Kaindl on 18 January, BelTA has learned.

The head of the government noted that Belarus appreciates the contribution of this investor to the development of the Belarusian economy. “We attach great importance to the projects that you conduct in our woodworking industry. They are a priority for us, and we do our best to make more products with a high added value from local raw materials. The projects that you carry out in Belarus satisfy this criterion,” Andrei Kobyakov said.

In 2012-2016, Kronospan invested over $870 million in woodworking projects in Belarus. These projects now account for almost 20% of the total output of the country’s woodworking industry and 25% of Belarus’ exports of wood products.

“The government is interested in further implementation of your projects in Belarus. We will welcome your business's expansion in the woodworking sector and any other fields that you may consider appropriate and important. We are ready to carefully consider any suggestions and comments regarding the things that hinder your work and should be fixed,” Andrei Kobyakov added.

For his part, Peter Kaindl said that Kronospan is set to expand its activities in Belarus and hopes that the government will provide assistance with certain issues. “We feel very comfortable in Belarus. I thank you for the support that we get at all levels. We appreciate the stability in the country,” he noted. The businessman said that in the coming 12 to 18 months, Kronospan plans to invest from $50 million to $200 million in new projects and those that are already underway.

Kronospan is an international corporation with Austrian roots specializing in woodworking. Kronospan Group has over 40 production subsidiaries in 27 countries. It is one of the largest investors in the countries of Central and Eastern Europe.

Kronospan’s first investment project in Belarus was carried out in Smorgon. A plant to manufacture slabs with an output capacity of 750,000 cubic meters per year was commissioned there in 2012. A production unit to make MDF wood boards with an output capacity of 250,000 cubic meters per year was put into operation at the enterprise in 2013. The plant also has five lamination units. In 2013, Kronospan started a project to set up another enterprise in Belarus, Kronospan OBS in the Mogilev Free Economic Zone. Apart from that, the investor built a facility to produce urea formaldehyde resin at the Mogilev Free Economic Zone. The unit made the first batch of products in June 2016. It plans to reach its designed capacity by 2019.