Republic
28.09.2007
About $500 million will be funneled into the upgrade of Mogilevkhimvolokno production facilities till 2011, President of Belarus Alexander Lukashenko said on September 28 when visiting the company.
The Head of State took part in a ceremony of inaugurating a new continuous polycondensation plant. According to him, with this plant in operation Mogilevkhimvolokno will complete the first reconstruction phase.
During the previous visit to the company in 2004 the President tasked the Government to draw up a programme on developing Mogilevkhimvolokno till 2007 and gave several commissions regarding performance stabilization. The state provided considerable support to Mogilevkhimvolokno. So the company survived under tough competition in the international market of polyester products, preserved its specialization and showed stable growth rates.
For the last four months Mogilevkhimvolokno significantly boosted production volumes and expanded its offering list. For the eight months of the current year the company exported $132 million worth of products. At the same time Mogilevkhimvolokno top managers are concerned about heavy dependence of the company on foreign feedstock suppliers, first of all Russia. Fluctuation of prices for feedstock in the international market exerts influence upon the company’s performance as well.
Mogilevkhimvolokno will implement several new projects to reduce dependence on foreign feedstock suppliers. The company intends to send into service a terephthalic acid plant with the annual capacity of 320 thousand tonnes. Mogilevkhimvolokno will also upgrade its synthetic fibre plant. At present Mogilevkhimvolokno top managers are holding talks with the leading engineering companies manufacturing equipment to produce polyester goods. In line with the long-term development programme Mogilevkhimvolokno plans to reach a new technical and economic level and to enhance competitive power of its products.