Government conference on OAO Kamvol modernization

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The previous instructions concerning the modernization of the Belarusian worsted fabric manufacturer OAO Kamvol must be fulfilled unconditionally. Belarus President Aleksandr Lukashenko made the statement at the government conference held on 17 July to discuss the development of the company.

Aleksandr Lukashenko reminded that the performance of OAO Kamvol and the textile company OAO Sukno had been reviewed repeatedly and that he had visited these enterprises. “Back then we made concrete decisions. People responsible for executing them were assigned,” said the head of state. The President asked those present how his instructions were being fulfilled.

In line with decree No. 510 that the head of state signed on 14 November 2013 the investment project to enable OAO Kamvol to make competitive commercial-grade and economy-grade fabrics is supposed to be implemented by late 2015. The company is supposed to reach the designed output capacity of up to six million running meters of fabric in 2017. The project envisages comprehensive modernization of the manufacturing wing, construction and installation operations, delivery and installation of core process equipment, production of new fabrics, construction of an autonomous energy source as well as auxiliary facilities and support facilities.

The head of state was told that two stages of the modernization project had been accomplished. The third one is expected to be accomplished in late September.

At the same time auditing agencies report that modernization deadlines are pushed back, the cost of construction and installation work rises.

The President gave rigid instructions to stay on the original schedule and to revise the costs.

As a result of the modernization project the company is supposed to operate with a profitability margin of at least 15-20% in order to repay the costs.

The head of state warned those present that the company’s modernization is nearly finished while the penetration of new target markets is about to begin. This stage is as important as the previous one.

Good opportunities open up before the Belarusian company thanks to the decision of the Eurasian Economic Commission to lift Russian market access restrictions from Belarusian worsted fabrics. According to OAO Kamvol Director General Sergei Gorovoi, the company will be able to sell merchandise to the Commonwealth of Independent States and the European Union.

The head of state gave instructions to satisfy the domestic demand for OAO Kamvol’s products first.

Aleksandr Lukashenko stressed that he had promised OAO Kamvol personnel and the entire country that the modernization project would bring about a state-of-the-art enterprise. OAO Kamvol is expected to become the most powerful enterprise in the post-Soviet space in terms of output, quality, and the choice of products.

Aleksandr Lukashenko intends to visit OAO Kamvol in late September in order to personally see how the modernization campaign is being finished. He also intends to revisit the enterprise at the end of the year in order to once again consider the merger of Kamvol and Sukno after modernization is over.

The President gave instructions to keep both enterprises as well as the jobs they offer, carry out modernization effectively in order to make the enterprise competitive in the long term.