Business news
Belarusian biotech corporation expected to earn $1bn within years
Valery Belsky
MINSK, 2 June (BelTA) – Earnings of the Belarusian National Biotechnology Corporation, which is building a high-technology full-cycle agribusiness enterprise near Minsk, are expected to reach $1 billion within the next few years. Deputy Head of the Belarus President Administration Valery Belsky made the statement after the government conference hosted by the head of state on 2 June to discuss the project, BelTA has learned.
According to the source, the first stage of feed compound production will be launched soon. The second stage of amino acid production will be launched next year roughly eight months ahead of the projections. After that the corporation will get down to the third stage of the project and a new stage of construction work. A land plot in Pukhovichi District, Minsk Oblast will be allocated for it. The project is expected to earn approximately about $1 billion within the next few years.
The enterprise is being built in a land plot as large as 160 hectares. It will reach the designed output capacity in 2021 when the second stage is commissioned. A total of $630 million has been allocated for the project. The figure was raised to $700 million due to the construction of the accompanying infrastructure. At least 40% of the amino acids the enterprise will make will be exported. The remaining part will substitute imports.
There are plans to commission the third stage of the project at the same site in the future. It provides for building another amino acid manufacturing facility and will require an additional $500 million. “But it will be implemented by heavily relying on commercial loans. The first offer on future cooperation will be extended to the People’s Republic of China,” the official noted. “The concept of the third stage has been worked out but the business plan is still in development. A general approval of the head of state has already been received. Upon instructions of the head of state all the documents concerning business plans and measures on state participation in the project will be submitted for his consideration soon.”
The construction of the agribusiness enterprise has a social function, too – about 300 people have been invited to work at the enterprise so far. There are plans to create a total of over 1,000 high-tech jobs. The average salary is expected to reach Br1,500. Housing for the workers is being built.
The Belarusian National Biotechnology Corporation is busy setting up the high-technology full-cycle agribusiness enterprise. Construction work began in Pukhovichi District, Minsk Oblast in summer 2018. The Chinese company CITIC Group is the general contractor and a shareholder. There are plans to build a complex of 14 plants and commission them step by step. The enterprise will take care of advanced processing of grain using modern biotechnologies to produce irreplaceable amino acids (lysine, tryptophane, threonine) in order to make high-yield, high-tech, balanced compound feeds and feed additives. The products will be used for in-house production and will be exported to Russia, Ukraine, the European Union, and China.
BelTA reported earlier that in 2020 the Finance Ministry will spend over Br17.8 million from the national centralized innovation fund as a monetary contribution of the Republic of Belarus to the charter capital of the Belarusian National Biotechnology Corporation to acquire 2.5 million shares of the company in the period of private offering.
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