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24 December 2014

Faster modernization of Belarusian Mogilevkhimvolokno under new manager

MOGILEV, 24 December (BelTA) – OAO Mogilevkhimvolokno should accelerate the modernization of its polyester fiber manufacturing facility. The task was set by Head of the Belarus President Administration Andrei Kobyakov on 23 December as he presented the company’s new Director General Piotr Rudnik to the company personnel, BelTA has learned.

According to Andrei Kobyakov, former head of the company Sergei Puzevich was dismissed due to the failure to take proper measures for the sake of modernizing the manufacturing facilities, resulting in a low competitive ability of Mogilevkhimvolokno products, lower export, and the inability to hit development and performance targets. Mogilevkhimvolokno is a key enterprise in the system of enterprises of the Belarusian petrochemical concern Belneftekhim and is the most important enterprise in Mogilev Oblast’s production sector. The negative social and economic development indicators of Mogilev Oblast have to do a lot with Mogilevkhimvolokno’s poor performance. “Unfortunately, we have to admit that the company is losing its former glory,” noted the Head of the Belarus President Administration. “It has to do not only with objective reasons such as the complicated situation on foreign markets, problems in the development of the global economy but also with subjective factors — the management of the company”.

Over the last seven years about $220 million has been poured into the company’s modernization. Nevertheless, on the basis of Mogilevkhimvolokno’s performance in 2014 the company will need nearly Br500 billion as aid from Belneftekhim to stay afloat. In other words, the comparatively positive profitability indicators and the small net profit have been produced thanks to support from other Belneftekhim’s companies. OAO Mogilevkhimvolokno has implemented a number of investment projects to improve the situation with varying results. Some projects have returned their investments, some projects cannot do that, and some projects have yet to prove their viability. But the worst thing is that the company still uses an outdated technology to make polyester products, noted Andrei Kobyakov.

Despite all the difficulties seen in the international economy billions of U.S. dollars were poured into the modernization of the Belarusian production sector in the previous five-year term and the current one. “It is very bad that during the period we have been unable to modernize Mogilevkhimvolokno’s polyester production facility. Therefore, implementing the project as soon as possible and thus determining the future of the company are top-priorities for the new director general. We are already late. We would not like to be forever late. We wouldn’t like to give up the company for good. Within the next 1-2 years, three years at best we should accomplish what we failed to do in the previous five years,” stated Andrei Kobyakov.

The Head of the Belarus President Administration also gave instructions to raise the returns from the projects the company is implementing, to reduce the prime costs and dependence on Belneftekhim’s donations, to use the spare manufacturing floor as much as possible for new manufacturing facilities. “Export diversification is the key requirement set by the Belarus president. We have more than one target market. The stable operation of the company will depend on export diversification primarily in geographical terms. We have to modernize the basic technological process of Mogilevkhimvolokno within the next few years, secure competitive levels, and stop taking donations,” he stressed.

Andrei Kobyakov pointed out that Piotr Rudnik’s appointment as the director general of OAO Mogilevkhimvolokno was a balanced decision because he has considerable experience of working in the production sector as the director general of OAO Mogilevliftmash, one of the most successful enterprises of the country. The Head of the Belarus President Administration said he was confident that Piotr Rudnik will be able to successfully apply his knowledge and skills in the new job.

Andrei Kobyakov also remarked that the Belarus president was greatly satisfied with Piotr Rudnik’s willingness to run the company because the company had been quite a sore spot for him as the Mogilev Oblast governor. In the near future the head of state intends to visit Mogilevkhimvolokno, hear out a report from the new head of the company, and learn his vision of the company’s development prospects.


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