Business news

22 Sep 2022

Lukashenko looks forward to further cooperation with China’s CITIC Construction

MINSK, 22 September (BelTA) – We look forward to further cooperation with the Chinese corporation CITIC Construction Co., Ltd., especially in the construction sector, Belarusian President Aleksandr Lukashenko said as he met with Yang Jianqiang, First Deputy President of CITIC Construction Co., Ltd. on 22 September, BelTA has learned.

The Belarusian leader noted that he has plans to discuss a number of issues with Chinese President Xi Jinping in the future. He added that before the meeting of the two leaders he would like to learn the details about the CITIC Construction activities in Belarus.

“There are a number of issues that we have to discuss with you because you are the largest company operating in Belarus. I need to thoroughly prepare for the forthcoming talks, as we agreed, with President Xi Jinping,” Aleksandr Lukashenko explained. “We held a detailed and meaningful meeting in Samarkand [during the SCO summit] with the president [China President Xi Jinping], discussed the whole spectrum of our economic cooperation, including issues in your sphere of competence and responsibility, and agreed that after the 20th National Congress of the Communist Party of China we will talk more thoroughly about the economy, politics, and defense cooperation,” the Belarusian leader said.

“I have high hopes that your current visit will not only clarify the situation with some projects and enable us to agree on completion dates of these projects. I hope that your visit will also give an opportunity to look into the future of our relations, especially in the construction industry,” the head of state added. According to him, CITIC Construction is ready to work in Belarus and to build a number of enterprises using the latest technologies. “We welcome this approach,” the president stressed.

The parties discussed some joint promising projects. In particular, they talked about the construction of a nitrogen complex, a paper production facility at Svetlogorsk Paper Mill, and also a project of deep processing of agro-industrial products. As for the latter, the Chinese partners are deeply interested in setting up such a facility for the purpose of further exports to the Chinese market. The head of state supported this initiative and instructed the responsible officials to facilitate its implementation.

The project to build a nitrogen complex in Belarus provides for the construction of modern ammonia plants with a capacity of 920,000 tonnes a year and urea plants with a capacity of 1.29 million tonnes a year. In order to make a decision on its construction, domestic experts have gone on a visit to China to see the operating ammonia and urea production facilities. Subsequently they will give an accurate answer as to whether it is possible to build and operate similar facilities in Belarus given the suitability of the production capacity, compliance with environmental requirements, economic efficiency, etc.

The project to build a paper production plant at Svetlogorsk Pulp and Board Mill is in full swing. The first stage of the project has already been completed (engineering preparation of the construction site). The second stage involves the supply of equipment, construction and installation and commissioning works. Currently, Svetlogorsk Pulp and Board Mill and the Chinese company continue to work on draft contracts for the supply of technological equipment and the construction contract.

The international engineering company CITIC Construction Co., Ltd. was established in November 2002. It is a subsidiary of China's largest state-run financial corporation CITIC Group. Its business covers turnkey construction projects, including industrial, infrastructure, and sports facilities, export-import deliveries of mechanical and electronic equipment. The company implements projects in the CIS countries, Southeast Asia, South America, the Middle East and Africa. In 2007, it was one of the first Chinese engineering companies to start operations in Belarus.

CITIC Construction participated as a general contractor in turnkey projects for the construction of Belarusian Cement Plant, Krichevtsementnoshifer, Krasnoselskstroymaterialy, for the organization of car assembly production (BelGee) for 2012-2030, and for the modernization of Orsha Linen Mill.

In 2016-2018, the company became a shareholder of BelGee and Belarusian National Biotechnology Corporation (BNBC), becoming not only a general contractor but also a co-investor and shareholder in these projects.

The company is currently implementing three investment projects in Belarus. These are the construction of a potassium processing plant for IOOO Slavkaliy, the construction of a mixed-use hotel and business complex in Minsk near Pobeditelei Avenue and the construction of a high-tech agro-industrial full cycle facility for BNBC.