Business news

MOGILEV, 31 January (BelTA) – The free economic zone (FEZ) Mogilev accounted for nearly one third of the total foreign direct investments poured into Belarusian FEZs in 2016. It is the best figure out of those demonstrated by Belarus’ six free economic zones, BelTA learned from head of the FEZ Mogilev administration Andrei Yartsev.

Investment projects with the total declared investment volume in excess of €1.1 billion are being implemented in the free economic zone Mogilev. In 2016 FEZ Mogilev accounted for over 32% of Mogilev Oblast’s industrial output, about 48% of the oblast’s export, and 23% of the fixed-capital investments. The surplus of the foreign merchandise trade reached $243 million. It is important that FEZ Mogilev continues attracting foreign technologies and management methods, bolstering the competitive ability of enterprises in a specific area in addition to creating, developing, and improving the industrial infrastructure of Mogilev Oblast as a whole.

The development of the free economic zone Mogilev was spurred by the administration’s decision to implement a proprietary large-scale project in land plot No.4 in 2010. A number of infrastructure facilities were created in 2010-2016. They allow investors to implement their projects as fast as possible in addition to saving up to 30% of the money on manufacturing organization. At present the location is used to implement 11 investment projects with the total volume of declared investments exceeding €600 million. Every ruble of state investments has resulted in over Br20 in foreign investments.

Private companies operating as part of the woodworking cluster in land plot No.4 are the leaders in racking up the output. Enterprises of VMG Industry and IOOO Mebelain use manufacturing cooperation schemes to make furniture primarily to orders of the internationally recognized furniture maker IKEA. Work organization at these enterprises is exemplary and has been certified for compliance with lean manufacturing standards.

Future development of the free economic zone Mogilev will be focused on specific industries, specific countries, and cluster-based development. Chemical and petrochemical industries, the industry of construction materials and structures, mechanical engineering and metalworking, and woodworking industry will be prioritized. “We also intend to pay attention to certain countries. Taking into account the best-developed industries a number of priority investment countries have been chosen, including Russia, Germany, Lithuania, Turkey, Poland, and Austria. There are plans to continue developing manufacturing clusters in the free economic zone. Such clusters can secure a high competitive ability on the domestic market and foreign ones in addition to contributing to the restructuring of the Mogilev Oblast economy in favor of avoiding narrow specializations,” said head of the FEZ Mogilev administration Andrei Yartsev.

The free economic zone (FEZ) Mogilev was established on 31 January 2002. At present it is home to 39 resident companies.