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Supervisory board to steer away from day-to-day running of Belarusian MTZ

Economy 25.04.2019 | 17:09
Sergei Rumas on a tour of the company
Sergei Rumas on a tour of the company

MINSK, 25 April (BelTA) – The supervisory board of the Belarusian tractor manufacturing company MTZ will not interfere with the day-to-day running of the company. Prime Minister of Belarus Sergei Rumas made the statement during the session of the supervisory board on 25 April, BelTA has learned. Sergei Rumas is the chairman of the MTZ supervisory board.

Sergei Rumas assured: “The supervisory board and its committees will in no way interfere with the routine operation of the enterprise. Together we are going to set clear goals, which have to be achieved. Performance will be evaluated bearing in mind the achievement of these goals. The supervisory board is supposed to set the goals and oversee their achievement. The director will be in charge of day-to-day running of the enterprise while administration bodies, in particular, the supervisory board will take care of strategic management.”

Sergei Rumas
Sergei Rumas

Chaired by Sergei Rumas, the renewed supervisory board includes another government representative and four independent directors. The composition of the supervisory board has not been completed yet. Committees will have to be set up to take care of the company's development strategy as well as finance.

Thanks to the supervisory board the industry minister will no longer have to perform supernumerary functions. Instead the industry minister will take care of more important matters, on which the development of the national manufacturing sector depends.

In the future the supervisory board and the company's management will take care of the fight against unnecessary intermediaries among other things. The supervisory board and the company's management will also focus on import substitution, cost optimization, penetration of new target markets, and other things.

Prior to the session of the supervisory board Sergei Rumas went on a tour of the company. Barriers interfering with access to the Russian market and the access of Belarusian-Russian assembly ventures to Russian state subsidies were mentioned during the tour. The Russian government offers incentives to support domestic products but products of Belarusian-Russian ventures cannot always take advantage of these preferences. All the technological operations need to be performed in Russia in order to take advantage of the preferences. According to Belarusian Industry Minister Pavel Utyupin, the state of affairs is dissatisfactory.

The Belarusian head of government also wondered about the degree of localization at MTZ and gave instructions to work out ways to increase it.

The Belarusian mechanical engineering company MTZ is a major manufacturer of agricultural machines. In Q1 2019 sales profitability totaled 6.5%, with net profit at Br18.395 million. In Q1 2019 the company exported nearly 7,300 units of equipment worth approximately $121.2 million.

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