It is not always possible to understand the essence of ongoing economic processes while looking through production statistics. You get bored trying to wrap your head around the figures! However, when you come to grips with statistics, you will realize what modernization, import substitution, manufacturing ties, and economic growth are truly about.
The 53rd edition of the Belarusian House. Spring 2021 exhibition that has recently wrapped up in Minsk hosted a business event that is rarely covered by the media. That is a shame! The agreement signed by the well-known developer Dana Astra and Gomelstroymaterialy, Gomel-based manufacturer of building materials, is indicative in many ways.
The cooperation between the two companies began last spring, and in less than a year, about 40,000 cubic meters of thermal insulation boards made of mineral wool worth over Br5 million were delivered from Gomel to Minsk. The cargo was not stored - the mineral wool was sent directly to the construction sites of the Minsk World multifunctional complex. After all, the fast pace of construction requires prompt and accurate supplies of materials and equipment.
The Gomel-based company fulfilled its obligations in full, and the developer suggested formalizing further cooperation plans. The document provides for a significant increase in supplies.
According to Pavel Ovcharov, Director of Dana Astra, this decision made perfect economic sense, as large-scale construction projects need significant resources.
“Our company is handling a very large amount of construction works. This year we plan to commission more than 700,000 square meters of residential and commercial real estate in the Minsk World multifunctional complex - this is a record figure.
To achieve such results, we need reliable suppliers of quality building materials. We have excellent partnership relations with Gomelstroymaterialy. The new agreement almost doubles the volume of annual supplies!” emphasized Pavel Ovcharov.
Why was Gomel the choice after all? Talking about his enterprise, General Director of Gomelstroymaterialy Stanislav Zheromsky does not hide that there is a lot to be proud of!
“Today we work in three areas. Our main product is thermal insulation materials, but we also produce aerated concrete and silicate bricks. About half of all products are exported. Moreover, the bulk of foreign deliveries are insulation materials, about 70%. The largest foreign customers are Russia, Ukraine and the European Union. In terms of quality we are on par with the world leaders in the production of insulation materials. Our products are certified in all regions, including the EU. We have the right to apply the appropriate marking. In terms of price, at least in the domestic market, we are in a more favorable position than those who bring imported brands of insulation materials to Belarus,” said the general director. The developer's representative named specific figures: the cost of domestic building materials is about 20% lower than that of foreign analogues.
“Earlier we purchased mineral wool from Russian companies, and the change of the main supplier let us reduce the cost of construction and, as a result, the price per square meter for our customers,” said the director of Dana Astra.
According to Vladimir Marchenko, Deputy Director General of Gomelstroymaterialy, this year's supplies will increase significantly:
“Last year, our mineral wool was used for thermal insulation in 26 buildings of the Minsk World complex. This year, we will supply insulation slabs for construction of 60 residential and business buildings of the new complex.
By the way, the production of mineral wool by Gomelstroymaterialy is an example of effective economic management. The first production line for mineral wool was set up at the enterprise in 2005, the second one – in 2008. This is the most advanced facility that was established under the state import substitution program. The results exceeded expectations: Belarus not only launched the production of high-quality homemade construction materials, but also increased its export capacities. The Gomel-based enterprise exports its products to 18 countries!
Gomelstroymaterialy benefits from working with such a big domestic client. It provides Dana Astra with a wide range of mineral wool with the density from 50kg to 200kg per cubic meter. They are mostly facade insulation slabs, but there are also products for roof insulation. As a rule, the company spends more time and effort on small batches, switching to another type of product. Working with large batches helps reduce the company's internal costs. At present, one real estate developer accounts for about 10% of the enterprise's production capacities.
“Working with Dana Astra is also financially beneficial. It pays for all batches in time and in full,” Vladimir Marchenko stressed.
For the real estate developer, working with the Belarusian manufacturer provides reliability!
“Amid the pandemic, economies that have not gone into lockdown want to ensure stable supplies. In some countries, companies suspend their activities from time to time, there are issues with logistics. The reliability of Belarusian partners is unparalleled in this regard: the delivery of a mineral wool plate from Gomel does not involve the crossing of borders and customs zones and nobody is going to introduce lockouts in Belarus,” Pavel Ovcharov said.
Apart from numbers and performance indicators there are also common human emotions.
“We take pleasure in working with Dana Astra because it is the largest real estate developer in the area of housing construction. We appreciate that such a large company uses Belarusian construction materials, including ours. It is generally acknowledged that the company builds very comfortable housing with well-developed infrastructure, with backyards, recreation zones, children's playgrounds and sports grounds. We have now contributed to the new image of the capital city, to the Minsk World complex,” Stanislav Zheromsky noted.
There is another pleasant thing to consider. Partnership with Dana Astra means not only steady orders and steady salaries for Gomelstroymaterialy employees. This partnership also opens up opportunities! Gomelstroymaterialy workers have been granted the right to participate in a corporate program on buying housing in residential complexes in Minsk.
“The program allows Gomelstroymaterialy workers and their families to save up to 20% of an apartment cost. Apart from that, they are granted the most favorable terms for financing the deals. We are convinced that every Belarusian family should have an opportunity to improve their housing conditions. Gomelstroymaterialy workers do not have to leave Gomel to do it. An apartment in a modern complex in Minsk is an excellent investment. The apartment can be gifted to children or grandchildren if necessary. The corporate program is an investment in the future for the entire family on the best terms,” Pavel Ovcharov believes.
