Business news

15 Sep 2023

Prime minister to review realization of investment projects, import substitution in Mogilev Oblast

MOGILEV DISTRICT, 15 September (BelTA) – The realization of investment projects, construction of dairy farms, and import substitution efforts are on the agenda of the working trip of Prime Minister of Belarus Roman Golovchenko to Mogilev Oblast today, BelTA has learned.

The first stop was companies with a share of foreign capital in the free economic zone (FEZ) Mogilev – IOOO Omsk Carbon Mogilev and OOO BelEmsa. After that the prime minister is expected to visit a dairy complex under construction of OAO Tishovka and the natural landmark Polykovichi Wellspring.

Omsk Carbon Mogilev is Belarus’ only manufacturer of technical carbon and employs over 550 people. The company makes products while simultaneously expanding. Two process flows have been commissioned. Another two are in the final stage of construction. The readiness of facilities of the entire manufacturing site stands at 92%. The designed output capacity is 200,000 tonnes of technical carbon per annum. Up to 85% of the output will be exported in the future. At present the company ships products to the European Union, Russia and actively explores the Asian direction – China, Thailand, Vietnam, and Malaysia. The main domestic consumers are the tire manufacturer Belshina and Belarusrezinotekhnika Company.

OOO BelEmsa was opened in Mogilev District in 2011 thanks to a private Turkish investor. The company quickly became a major manufacturer of hygiene products. At present it offers over 150 titles of products, including diapers for children and adults. In the past the company focused purely on economy and medium class segments of the market. Now it also makes premium quality products. The company fully satisfies the domestic demand and the demand in CIS states. The hygiene products are primarily exported to Russia, Kazakhstan, and Armenia. The output is rising, which means the company is expanding its manufacturing territory, modernizing the equipment, and hiring more workers. In 2022 alone the output of diapers more than tripled. The company was put on the national wall of honor in recognition of outstanding social and economic development results it achieved in 2022.

It should be noted that every year FEZ Mogilev makes a significant contribution to the social and economic development of the region and accounts for up to 80% of the net foreign direct investments, about 50% of the merchandise export, and a third of the output of industrial goods. It is home to 44 organizations, which investment potential in the short term will be over Br1.4 billion, including Br790 million in 2023-2025. The geography of export of the goods the FEZ Mogilev resident companies make amounts to 50 countries. The share of export to the EAEU market totaled 78.5% in January-June 2023. Merchandise export to China rose by nearly 78 times, to Malaysia by 5.9 times, to Portugal by 2.6 times, to Slovakia by 4 times.

Roman Golovchenko will also visit the dairy complex OAO Tishovka is building. It is designed for 600 milking cows. The facility is located outside the village of Sevostyyanovichi. The company is building it at the expense of its own resources and credit resources. The dairy complex will have a cow shed for 300 cows, a milking unit, a birthing unit with premises for non-milking cows, a preventative clinic for 206 cows, a water tower and an artesian well, and silage trenches able to store 2,000 tonnes of feed. The standard construction time is 12 months. The dairy complex will be fully commissioned in September 2024. The average yearly number of cattle is close to 1,030 head. As many as 30 workers will work at the complex.

There are plans to build new dairy complexes all over the country in 2023-2024. Ten dairy complexes will be built in every oblast. In Mogilev Oblast four new dairy complexes will be built in Mogilev District, three in Kirovsk District, two in Bobruisk District, and one in Gorki District.

At the end of the working trip Prime Minister of Belarus Roman Golovchenko will go to the natural landmark Polykovichi Wellspring, which has been known since 1552. At all times it has been not only a destination for pilgrimage but a favorite place of recreation. There are plenty of essential minerals in the water of the wellspring. The mineralization rate is about 25%. The fact indicates that the wellspring has healing properties and can offer spa treatment to people suffering from peptic ulcer disease and excessive acidity of digestive juice. Specialists estimate that the wellspring can produce over 100m3 of water per day. The water flows down along a 150-meter-long rivulet into the Dnieper River.