Business news

MINSK, 11 September (BelTA) – The Belarusian mechanical engineering company and China Sinomach Heavy Industry Corporation have reached an agreement on making excavators at premises of the Amkodor-KEZ branch of the Belarusian company, the press service of the holding company Amkodor told BelTA.

A China Sinomach Heavy Industry Corporation delegation visited Amkodor. The sides discussed the advancement of bilateral cooperation and the establishment of a joint enterprise to make excavators and bulldozers.

As a result of the talks Amkodor and Sinomach signed memorandums on commercial aspects of cooperation and the localization of excavator manufacturing. The Amkodor-KEZ factory will receive 35 kits to assemble Sinomach excavators within the next three months. The contract’s value is about $3 million. The shipments have been scheduled taking into account step-by-step localization and are divided into three stages. Initially the Amkodor-KEZ factory will make a number of components to reach 30% localization with the available technology. Later on the production of major nodes that require additional machining or additional rigging will be localized in Belarus as well as the production of structural components. As a result, localization level will exceed 51%.

Andrei Yarotsky, Director of the Amkodor-KEZ factory, noted that the Amkodor-Sinomach agreements represent a big step towards creating a joint venture. “After we localize manufacturing, get all the necessary paperwork done, and present the product to the market, setting up a joint venture will become feasible and commercially justifiable. Further negotiations with the Chinese partners will naturally continue,” he said.

Negotiations on setting up a joint venture to make excavators, bulldozers, and other special tracked vehicles at premises of the Amkodor-KEZ factory began in December 2014. The sides signed a protocol of intent on 20 September 2015. Additional memorandums of understanding were signed on 4 December 2015 and 3 March 2016. Meetings were held to discuss ways to expand interaction. In February 2017 the Amkodor-KEZ factory assembled four tracked Sinomach excavators using assembly kits.

Cooperation between Amkodor-KEZ and China Sinomach Heavy Industry Corporation has prospects other than commercial ones, noted Andrei Yarotsky. “At present the Chinese partners boast more advanced designs and equipment. It means that by working together we will be able to reach new technological heights, raising the qualifications and competences of our personnel in the area of excavator engineering. We will make a new technological product that we are going to promote and sell on the markets where the holding company Amkodor operates and has a well-developed distribution network,” he explained.

OAO Amkodor-KEZ is part of the holding company OAO Amkodor. The factory is one of Belarus’ top manufacturers of single-bucket hydraulic excavators on tracked chassis. Amkodor-KEZ excavators are used in Russia, Ukraine, Georgia, Kazakhstan, Moldova, Lithuania, Estonia, and South America.

China Sinomach Heavy Industry Corporation is a daughter enterprise of China National Machinery Industry Corporation (Sinomach Group). The daughter enterprise is a major manufacturer of industrial equipment and heavy machines. It focuses on R&D and production of engineering equipment, aftersales service, designing, and trade. At present the company owns 28 holding companies and stock companies, including one public joint-stock company and four foreign corporations. Sinomach Heavy Industry owns extensive manufacturing infrastructure in various cities of China.