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Economy
28 October 2020, 16:46

Prime minister wants projects of Belarusian tire maker Belshina to recoup investments

BOBRUISK, 28 October (BelTA) – A number of projects are being implemented to develop the Belarusian tire manufacturer OAO Belshina. To make sure these projects can recoup the investments is the most important thing. Prime Minister of Belarus Roman Golovchenko made the statement as he visited the Bobruisk-based company on 28 October, BelTA has learned.

In his words, Belshina is a flagship enterprise of the country, an important pillar of the Belarusian economy. This is why the government pays close attention to its affairs. “We attentively keep an eye on the processes going on here. It is important for us that the enterprise has clear projections for the near future,” Roman Golovchenko noted. “Today we've discussed the matter of the company's transformation, its financial recovery. Because the projects being implemented at Belshina right now are rather costly. The market situation is not so good and will not allow us to promptly recoup the investments. This is why there is a financial burden on the enterprise. To make sure these projects can recoup the investments is the most important thing right now. The company is working on it. We've discussed how we can expedite the process. There certainly will be a return on the investments. The shortcomings that happened in the course of planning these projects are being fixed now.”

Roman Golovchenko was made familiar with the manufacturing processes in the divisions that make large tires and supersize tires. A number of matters concerning production modernization were discussed during the conference. Technical and economic modernization is in progress at Belshina. A number of major investment projects are being implemented. Modern high-tech equipment to automate manufacturing processes is being installed.

The supersize tire factory has nearly completed an investment project to start manufacturing radial solid metal cord tires with the rim diameter of 57-63 inches and reconstruct the stock preparation shop. Equipment from the world's leading manufacturers has been bought. It has allowed increasing the product range and the volume of production of supersize radial solid metal cord tires for super heavy dump trucks. Pilot batches of tires with the rim diameter of 51, 57, and 63 inches were made in the course of the project's implementation. Only three other companies in the world have been manufacturing such tires up till now.

Within the next five years Belshina intends to implement several other investment projects in order to start making radial solid metal cord tires with the rim diameter of 25-29 inches and increase the capacity to manufacture solid metal cord tires for trucks.

Belshina Director General Andrei Bunakov noted that the company's work demonstrates the company can generate profits. “Our work is balanced. We get profits from sales. We repay our debts on time. Despite pandemic-related complications on foreign markets we managed to increase output and sales by 1.5 times in the last four months. The supersize tire factory is supposed to become the driver of Belshina's growth.”

The executive continued the company is now working on a long-term development strategy. “We have a certain plan. We've signed a contract with a consulting company and have split it into two stages. The first stage provides for diagnosing the company, detecting reserves and the potential that will be effective in the future,” he noted. “After this stage a roadmap will be put together to clearly identify what we should do and what effect the measures will produce. As part of the second stage we will follow the roadmap and work out a development strategy for the period till 2030. Competent specialists of the tire market and the automobile engineering industry will be invited to participate in this work.”

Belshina's export sales are ahead of the projections at present. Belshina tires are sold both on the home market and abroad. “Increasing Belshina's share on the Belarusian market was also discussed today. We are talking about mass market tires. The company faces certain challenges now due to the strategic transformation. We've come to a stage when we have to decide how we should develop from now on. The government closely follows the matter,” the prime minister added. “We want quality planning of the work. So-called independent economists offer a lot of advice about how the Belarusian economy should be built. We welcome all kinds of advice. But we want advice to be specific. We don't want generic Economics 101 recipes.”

The public joint-stock company (OAO) Belshina comprises three tire factories that make large tires, mass market tires, and supersize tires as well as a mechanical plant, an agricultural branch, and a rubber goods factory in the town of Krichev. Belshina offers over 300 tire models. It employs over 8,000 people. Belshina tires are exported to 60 countries across the globe.

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