Republic
23.01.2007
Despite the difficulties brought about by the growing energy prices, Belarus has no intention of decelerating its economic development pace, Belarus president Alexander Lukashenko said at the opening ceremony of a household appliances plant of ZAO Atlant in Minsk on January 19.
BelTA learnt from the presidential press service, the head of state made himself familiar with Atlant performance reports, the company’s plans, and the technological process. The president was reported on the development of the domestic manufacturing of modern household appliances using cutting-edge technologies and equipment, on effectiveness of investments poured in the household appliances plant, the plant’s retooling and production of new-generation washing machines.
Atlant was founded in 1993 through a merger of three companies: Minsk refrigerator plant, production association Atlant, which manufactured refrigerators, and Baranovichi machine-tool plant. Today Atlant specializes in refrigerators, freezers, compressors and other equipment. A while ago the company started producing washing machines.
The share of consumer goods in the total production volume of the company makes 90%. Over 70% of the make is exported. In 2001-2005, Atlant poured $158 million in its production development.
During the visit the president paid special attention to the substitution of imported products with those manufactured domestically. At present the share of domestic components in Atlant washing machines constitutes 53%. In the future the figure is expected to be increased up to 90%.
The head of state visited the mechanical workshop and the assembling one, got himself familiar with the functioning of automatic molding machines, an automatic line for producing washing machines. The president also had a look at ready samples.
While talking to the company’s personnel, Alexander Lukashenko named the opening of the Atlant household appliances plant a step towards starting the production of the full range of household appliances in Belarus.
In his words, the meeting of the goal will have a double effect. First, this will satisfy the domestic demand for products the country now has to import spending a great deal of foreign currency. “Cheaper domestic appliances will save money both of the state and Belarusian families”, the head of state believes.
Second, he added, the production of the entire range of household appliances will enable Belarus to move into foreign markets with new products, thus enhancing its export potential and gaining an additional source of foreign currency revenues.
Alexander Lukashenko is convinced, within the next five years Atlant will be able to accomplish the goal of increasing its annual output up to one million washing machines. This year the company already has plans to start producing 6 out of 19 new models of washing machines, with the total output set at 150 thousand units.
In the last five years Atlant’s annual production has almost doubled and exceeded $400 million. The export, which now accounts for 70% of the total production, has nearly doubled. However, the company should carry on. “More so since we are prompted to do that by present-day trends, the economic situation in the country,” underlined Alexander Lukashenko.
According to the president, the new economic environment Belarus has found itself in places higher demands on the country’s economy. The ability to save funds and resources is a key one for Belarus economy today. “This is a crucial prerequisite for meeting all targets, strengthening the economic security and the independence of our country”, the president noted.
The head of state highly appreciated the efforts ZAO Atlant has exercised to increase energy saving and production effectiveness. In the last decade the company decreased energy share in the product cost by more than four times. Atlant refrigerators and washing machines meet world energy consumption requirements.
Belarus leader added, Atlant’s wise cooperation with other companies and the placement of production facilities in small towns also were an important part of the success.
According to the head of state, as part of the current five-year plan around 300 new production facilities and enterprises are supposed to be built in Belarus. Several hundreds of existing enterprises will be upgraded and refitted. “It will be a completely new economy, first of all, aimed at processing domestic raw stock, replacing the maximum number of imported products with domestic ones, and saving energy resources”, said the head of state.
Alexander Lukashenko named last year especially successful for implementing large investment projects. Last year’s investments in the real economy increased by almost a third in comparison with the previous year. An important point, the president said, the investments mainly had come from the companies themselves.
From this point of view ZAO Atlant’s experience looks especially valuable and important. The company showed an example of good work, which secured money for current expenses, constant production growth and the renovation of the product range as well as a large-scale modernisation of production facilities, even the construction of new plants fitted with modern equipment.
While talking to Atlant personnel, Alexander Lukashenko stated, Belarus should double the production of goods, which are in demand on the home market and abroad. In view of the goal the government will continue the practice of creating large production associations and holding companies by attaching poor performers, mostly in small towns, to large steadily working companies, flagship companies.
The head of state cited ZAO Atlant and Belarusian Steel Mill, which used the scheme and managed to turn unprofitable companies around.
According to the president, if the goal is accomplished within 3-4 years, the effect will be tangible.
“We need to shake ourselves up, to stop whining, to understand that nobody, not even the closest countries will give us cheap gas and oil. But it doesn’t mean the leadership will stop fighting for cheaper energy resources and components”, the head of state underlined.
Alexander Lukashenko noted, Belarusians should understand they can count primarily on themselves. Yet, the president said, the country’s leadership will not “abandon its people in distress”. “We will do our utmost to create optimal conditions for the people”, said the Belarusian leader.
The president noted, within the current five-year plan all unfinished buildings, especially industrial premises, should be put into operation. Such premises might be handed over to private companies.
“By the end of the five-year plan there should be no unfinished buildings. Everything should be passed or sold to businessmen. Let the people work. The State Control Committee should take this issue under control”.
“Investors should be told that we either give away or sell the building, but by the end of the five-year plan the territory needs to be in order”, added the president.
According to Alexander Lukashenko, if an unfinished or unused building cannot be sold, it needs to be demolished and the land needs to be made effective use of. “The demand for land is high nowadays,” the Belarusian leader explained.
Alexander Lukashenko put a positive value on Atlant operation as well as the company’s plans for the future. The company presented a washing machine to Alexander Lukashenko, which he ordered to pass to one of Belarusian children’s homes.