Business news

MINSK, 2 June (BelTA) – The sulfated bleached pulp factory in Svetlogorsk will start making viscose cellulose, BelTA learned from representatives of the Belarusian state timber, woodworking, pulp and paper industry concern Bellesbumprom as they commented on Belarus president decree No. 219 of 28 May 2015. The document was published by the national legal web portal on 2 June.

The presidential decree envisages the production of viscose cellulose by the Svetlogorsk bleached pulp factory. It will allow the enterprise to use one process flow to make three kinds of cellulose: hardwood bleached sulfated pulp, softwood bleached sulfated pulp, and dissolving viscose pulp. The latter variety is used by chemical industry to make fabrics. Thus, the enterprise will be more flexible in manufacturing the merchandise that the market needs at a specific moment.

Svetlogorsk Pulp and Board Plant has already signed contracts with China CAMC Engineering Company for the delivery of special equipment and the fulfillment of construction and installation services. The enterprise will need an extra $35 million to start making viscose cellulose.

To start making viscose cellulose, the company will use money borrowed from Belarusbank (including assets of the Export-Import Bank of China) against guarantees of the Belarus government.

The production of viscose cellulose will need additional infrastructure. The state budget will pay $7.8 million for the work. Some of the money will be allocated by the innovation fund of the Gomel Oblast Executive Committee while the rest will be provided by the state budget’s national development fund.

Apart from that, $14.6 million has been borrowed from Belarusbank for the sake of commissioning the sulfated bleached pulp factory.

Svetlogorsk Pulp and Board Plant has also been granted an extension of customs and tax privileges till 1 January 2018.

The factory is expected to reach the designed sulfated bleached pulp output capacity in 2015 and reach the designed viscose cellulose output capacity in 2017.

The full period for implementing the project taking into account the repayment of debts is 2012-2023. The total investments in the project are estimated at $892.3 million. The cellulose output capacity will reach 400,000 tonnes per annum. Every year the factory will process about 2.4 million m3 of pulp wood. The implementation of the large-scale Belarusian-Chinese project will allow fully satisfying the demand of Belarusian cellulose, paper, and chemical industries for cellulose fiber in addition to giving the company the ability to export the product.

The project is expected to produce solid returns in foreign currency. Once the factory has reached the designed output capacity, it is expected to export $334 million worth of merchandise every year.