Belarusian textile firm to invest $8-9mn in upgradation

05 Nov '13

2 min read

OAO Baranovichi Cotton Production Amalgamation, based in Brest province of western Bealrus, would be investing about US$ 8-9 million in upgrading the production facilities, Belarusian Prime Minister Mikhail Myasnikovich told reporters after visiting the company, BelTA reported.

In April 2012, the Prime Minister had agreed additional financing for the textile unit to be utilized for replacing outdated technological equipment in several shop floors and to build the factory’s own energy generation unit in 2012-15 period.

Mr. Myasnikovich said while implementing the investment project, a need was felt to expand the scale of modernization of the textile unit, which is estimated to cost about US$ 8-9 million.

The Prime Minister said the additional investment project is crucial for the company and it envisages upgrade of weaving and sewing shop floors.

For the weaving shop floor, officials of the Bellegprom concern and top managers of banks discussed the implementation of additional investment projects to enhance the capacity and improve the quality, Mr. Myasnikovich said.

He explained that a study of the market environment shows that the market is ready for more textile and apparel products, which means increase in added value and gross domestic product (GDP) of the country.

This year, the Baranovichi-based company will produce about 27 million metres of fabric, and it would be a challenge to sell this quantity of fabric, the Prime Minister said.

The company, currently exports its products to Russia, Kazakhstan and other countries, but the amount is inadequate, hence, there is a need to expand exports not only in the Customs Union, but also in other markets, he added.

Last year, the firm’s exports increased by 35 percent over the previous year.

The repayment of loans would begin in 2014-15, and hence the company should also think about optimization of staff and capacities, as well as boosting marketing efforts, the Prime Minister said.

Fibre2fashion News Desk - India

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