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24 February 2020, 10:27

Belarus' Bellesbumprom concern reveals its new tasks

MINSK, 24 February (BelTA) – Paper recycling, expansion of furniture production and efforts to build credibility and foster a positive image of Belarusian products – these are the objectives facing the Belarusian timber, woodworking, pulp and paper industry concern Bellesbumprom. The tasks were voiced by Bellesbumprom's chief Yuri Nazarov at the interview with the STV TV channel, BelTA has learned.

While visiting Svetlogorsk Pulp and Board Mill Belarus President Aleksandr Lukashenko emphasized that forest resources should be processed in Belarus instead of being exported for a song. According to Yuri Nazarov, work is underway to improve laws regulating timber export. For example, there are plans to introduce amendments to the government's resolution on waste paper sale. Waste paper is to be included in the list of products that should be traded by legal entities and self-employed business people through auctions of the Belarusian Universal Commodity Exchange. This is only one of the ways to increase paper recycling inside the country.

“If we do not want to export round wood, we need to set up appropriate production facilities in the country. The president was absolutely right when he said in Svetlogorsk that we need to export pulp rather than raw materials. However, today we also export boards made by upgraded companies. Therefore, we need to try to process boards domestically. What can we make from them? Furniture. It is clear that it is not going to be simple. There are no market niches available. However, we have some success stories. For example, Ivatsevichidrev that has its own board production facility is now actively expanding furniture manufacturing. The output of the company's furniture made from its own boards is estimated at nearly Br5 million. There are plans to increase the output up to Br30-35 million in the next two years. For that we purchase equipment and create additional jobs,” Yuri Nazarov said sharing plans.

There should be an equal focus on foreign markets. However, first of all, domestic manufacturers need to be able to successfully compete with well-known foreign brands at home, after all, they have very competitive price and quality to do that. “The president said in Svetlogorsk that establishment of new companies in the country is true patriotism,” the Bellesbumprom chief said.

One of the investment projects to be implemented this year is setting up a small pellet factory in the Vitebsk free economic zone. This project will allow using the timber that is not utilized in Belarus so far. “The pellet production in Vitebsk will focus on production of granules. The company will mostly use quaking aspen as a raw material. The design and construction of the factory will complete in 2020. In 2021 the company will be able to roll out granules,” Yuri Nazarov said.

The chairman of the concern is optimistic about prospects of gradual transition to paper packaging in Belarus. The workload of Belarusian companies manufacturing paper packaging is estimated at 30-40% now. Such packaging is mostly exported to the Baltic states and the European Union. The interest of domestic companies in this product is insignificant, as this product is more expensive compared to plastic bags. However, as the output will grow, the prime cost will reduce.

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