MINSK, 13 January (BelTA) – The Belarusian textile manufacturer OAO Kamvol will set up a division to make woolen fabric, the press service of the Belarusian state light industry concern Bellegprom told BelTA in response to the Belarus president decree No.505 on setting up the production of woolen fabric at OAO Kamvol of 31 December 2019. The decree was officially published by the dedicated legislation distribution website law.by on 13 January.
The new manufacturing division will be able to make 1 million running meters of woolen fabric per annum. The enterprise is supposed to reach the designed output capacity in 2024. The trademark of the largest Belarusian textile company Sukno will be preserved.
The Bellegprom press service explained the project represents the most effective way of setting up a modern woolen fabric manufacturing enterprise in the country because it allows minimizing risks relating to sales and the acquisition of raw materials. It will also allow effectively using Kamvol's production floor space and reducing the cost of equipment purchases.
Kamvol has been chosen for setting up the new enterprise because the company uses similar manufacturing technologies. “We see integration rates of up to 20% as far as the equipment is concerned,” Bellegprom Chairwoman Tatiana Lugina was quoted earlier as saying.
Apart from that, the project will boast better performance thanks to the effective use of energy and raw materials at the joint enterprise and thanks to lower numbers of managerial and support staff required.
The innovative fund of the Minsk City Executive Committee will allocate Br65.8 million for setting up the woolen fabric enterprise in 2020-2021.
In line with the decree OAO Kamvol's debts will be restructured. The deadlines for clearing off debt obligations will be pushed till 2030 and the currency – euros – will be replaced with Belarusian rubles. In 2020 Belarusbank will get the government's guarantees that the company will pay off the debts.
The director general of OAO Kamvol, the Bellegprom chairwoman, and the deputy prime minister in charge of overseeing Bellegprom's operation are personally responsible for implementing the presidential decree.
