Business news

MOGILEV, 7 December (BelTA) – A new flax processing facility will be set up in Mogilev Oblast with the help of Chinese investments, Mogilev Oblast First Vice Governor Oleg Chikida told a press conference on 7 December.

According to Oleg Chikida, for Belarus in general and Mogilev Oblast in particular flax cultivation has become a strategically-important area of activity bringing a significant economic effect. Flax goods are in high demand both on the domestic and foreign markets. “This project draws big interest from China where flax clothes are also coming into fashion. During the international investment forum that took place in Mogilev in November 2016 Chinese businessmen showed their interest in the development of flax production in Mogilev Oblast and got familiar with the production process,” said Oleg Chikida.

The negotiations with Chinese partners are currently at the stage of the development of contracts and the preparation of necessary documents for the implementation of the investment project. “This will be the products with a higher value added. At present we mainly produce raw material (short and long flax fiber) which is delivered to the Orsha Flax Mill. A new manufacturing facility will enable us to improve flax processing and launch the production of finished fabric. The talks are also underway to offer China to invest in the oblast’s flax production in general with a view to expanding the production of high-quality flax fiber,” Oleg Chikida added.

In his words, this year’s flax harvest reached 36 centners per hectare. “I would like to note that flax mills have recently resumed their operation at a profit. In January-November 2016 the sales margins reached 4.6%, with net profit of Br949.000,” said Oleg Chikida.

He added that a lot has already been done to gear up for the 2017 sowing campaign: lands under flax cultivation selected and seeds prepared for sowing.