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Orsha Linen Mill to set up JV with Italy's Marzotto
Oct '10
Vladimir Nesterenko – the Director General of Orsha Linen Mill disclosed that his company is involved in talks with an Italian company – the Marzotto Group, to set up a joint venture. The setting up of this project is expected to take a lot of time as it involves huge investments and also the company is currently experiencing heavy expenditures.

Once the company's technology is upgraded, it will be in a much better position to seek for more investment. This will also raise the productivity of its workers and at the same time enhance the competitiveness of its products as well as the wages of its workers.

He further added that Orsha Linen Mill has also started negotiations with the Chinese manufacturers. A team of Chinese business executives had visited the company in the month of August. But they are not expected to arrive at a decision soon, as they invest cautiously in any business undertaking.

He also revealed that Br53 billion had already been invested in 2009 and another Br456 billion will be spent for the company's growth, in the period 2010-14. The amount will be utilized for the upgradation of the company's three units. It is also expected that the processing of flax fibre will enhance by two times whereas the manufacturing of fabric will be two and a half times more than the current volume.

Currently, the company is exporting around 60 percent of its total production and this is expected to rise up to 80 percent once the process of technical upgradation is completed. The Director General of the company pointed out that such grand projects are often coupled with several risks.

The company is the only producer and exporter of linen fabric as well as other flax commodities in Belarus. The flax production process of the company involves nearly 100 technical operations. The company has five units which are all involved in the manufacturing process.

Fibre2fashion News Desk-India

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