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Investments and investment projects

Investment activity


Investment activity is aimed at the complex technical reequipment of the operating production and the replacement of the physically and morally obsolete equipment for the high-production and energy-efficient equipment.

Technical reequipment of the production will stimulate the sustainable development of enterprises of the industry that are the basis for the further increase in volume of production, diversification and product quality improvement.

80% of the total investment volume will be spend on the purchase and installation of the equipment that allow to reach the depreciation level of the active part of the fixed assets at 39%.


The following major investment projects will be implemented in the light industry organizations in 2011-2015:


1)                 Relocation of the spinning mill “Sukno” Open Joint Stock Company from Clara Zetkin street to the working area on 33 Matusevich street.

Planned investments in the fixed capital on the investment project is 150 bln. rubles.
In connection with this project the following operations should be performed:

 — reconstruction of the production building on 33 Matusevich street to accommodate the manufacturing with the implementation of the set of works to bring the building structures, engineering services in compliance with current standards;

- redevelopment of the finishing works shops, redeployment of the manufacturing equipment of the wet finishing shop at the existing production areas; redeployment and installation of manufacturing equipment relocating from 3, 5, 7 Clara Zetkin  streets and installation of new equipment;
 — reconstruction of the water and waste-water treatment facilities on 33 Matusevich street;

 — construction of the supporting services building with accommodation of the raw materials, spare parts and chemicals storages, mass consumption goods shops, repair shops, a transport shop with garages, a construction shop and accommodation spaces for the supporting services at the undeveloped areas of the enterprise.

At the present time the searching for an investor is carried out.


2)     Construction of a new state-of-the-art production for the manufacturing of 4 mln rm (running meter) per year of the worsted fabrics by “Kamvol” Open Joint Stock Company.

The project will cost 343 bln. rubles. $20 mln. of foreign direct investments also should be attracted for the implementation of this project.

New production capacities of the company will allow to produce highly-competitive goods in the long-term that will gives an opportunity to diversify further activity of the company according to the market segments providing access to business-class market without reducing the volume of the institutional fabrics and civil range for economy-class and in addition to that it will allow to produce premium-class fabrics of the yarn of high metric number.


3)      “Kobrin Spinning and Weaving Mill “Ruchaika” Open Joint Stock Company makes provision for carrying out two projects:

-         Creation of production of PVC fabrics. The project costs 3 bln. rubles. The project implementation is provided on account of the bank loans and internal funds. It involves the purchase of the equipment for the construction of halls, a beer open-air café, frame constructions (tents, market stalls, car tents), street sunshades, awnings, sporting equipment, inflatable boats, billboards.

-         Technical reequipment of spinning production. The project costs 10 bln. rubles. The project implementation is provided on account of loans and internal funds. It provides for acquisition of equipment for waste reclamation of the production, additional installation of spin-preparatory and spinning machinery.


4)     Implementation of the equipment line for yarn dyeing in the reels by “Kupalinka” Open Joint Stock Company.


The project costs 3,2 bln. rubles. The project implementation is provided on account of bank loans.   


The aim of the project: reduction of costs and increase of cotton yarn quality.

Currently “Kupalinka” OJSC uses nearly 7-10 tons of dyed cotton yarn per month to produce its products. At the moment the process of yarn dyeing is carried out by “Mogotex” Open Joint Stock Company. Transportation of yarn to Mogilev causes complexity and rise in prices.

Implementation of new equipment line of yarn dyeing in the reels in the production of “Kupalinka” OJSC is in the planning stage. The company will reach high-quality of yarn dyeing in wide range of colours due to the new state-of-the-art technologies.

The savings on costs for the transportation and the profit of the implementing organization in the process of dyeing of 10 tons of yarn per month in their own production make 210 mln. rubles per year.


5)     Technical reequipment of “Baranovichi Cotton Production Amalgamation ”BPHO” Republican Unitary Enterprise in 2011-2015

The project costs 225,6 bln. rubles. The project implementation is provided on account of the republican budget and internal funds.

The principle direction in technical reequipment is the acquisition of modern high-production equipment allowing to expand the product range of  “BPHO” RUE, namely printed, dyed, one-coloured and bleached fabrics of different purpose of cotton and blended yarns that makes them more qualitative and competitive in the market.

The implementation of equipment for finished fabric production of a width of more than 2 000 mm, particularly the implementation of finishing equipment, block printing machines with effective width of 2 400 mm is planning to be continued.

Carding equipment is going to be purchased for flannel production that is nowadays on demand in the European market.

Technical reequipment of garment production will be also carried out.


6)     Development of “Orsha Linen Mill” republican unitary industrial and trade company in 2011-2015 including technical reequipment

The project costs 483,7 bln. rubles. The project is provided on account of the republican budget and foreign lines of credit.

The project provides for the acquisition and installation of 831 items of technical equipment that will allow the company to enter the technical level corresponding to the world’s best production of the same sector, to set up the production of competitive products, to provide with the increase in the volume of flax fibre processing.

Technical reequipment of the finishing production with replacement and additional installation of 107 items of equipment for the processing of grey fabrics of the mills 2 and 3 is central in this project. As a result, the specific weight of the apparel fabrics with finishing works in the total output will increase from 11,6% in 2009 to 33,5% in 2017. Herewith the output of the one-coloured fabrics will increase to 5, 1 mln. rm in 2012 in comparison with 2009. As from 2010 the increase of the output of the apparel fabrics with sleek finishing to 3,15 mln. rm per year will allow to enhance the consumer appeal.

The company doesn’t dispose of free areas to accommodate all purchased equipment. The construction of seven projects the basic of which are production building, finished products warehouse is required.


7)      “Vitebsk carpets” Open Joint Stock Company makes provisions for carrying out two projects:

-         Implementation of double Jacquard carpet weaving loom in the “Vitebsk carpets” OJSC. The project costs 3,9 bln. rubles. The project is provided on account of bank loans and internal funds.

The purchase of a new high-speed carpet weaving loom will extend capacity for the production of woven carpets by 200 thousand m2 per year.

-         Construction of a building for double Jacquard carpets. The project costs 15 bln. rubles. The project is provided on account of bank loans.


8)     Technical reequipment for the production of fabrics by “Mogotex” Open Joint Stock Company (3d turn)

The project is provided on account of bank loans and internal funds.

The machine capacity of technical equipment is used for no more than 80-85% because of its significant physical deterioration. Therefore, with the view of increasing the production volume of grey and finished fabrics in order to meet the demand on the market of essential goods which are in high demand, there is an exigency to buy in thermosol dyeing line, fabric kiering and bleaching lines (by one item for both of which has already been purchased), mercerizing line, 10 items of jig dyeing machines (atmospheric jigger), a printing machine, a special washing range for the after-the-printing washing of fabrics when using disperse, reactive, vat dyes. Moreover, provision is made for purchasing the high-production flexible rapier weaving looms (50 items) and modernization of 90 weaving looms STB2-180 of slashing machine.

All the above mentioned equipment in conjunction with the automate chemostation, machines for application of film coating, a color system and laboratory equipment gives an opportunity not only to increase the volumes but also significantly improve the quality of finished fabrics and their consumer properties, to expand the assortment of products, their objective and application, significantly cut down expenses for energy resources, raw materials, dyes and chemical materials.


9)     Technical reequipment of production capacities of “Polesye” Open Joint Stock Company by means of its own heat-and-power source.

The project costs 101,4 bln. rubles. The project is provided on account of bank loans and the republican budget.

The necessity to reequip the production capacities of “Polesye” OJSC is caused by low competitiveness of products due to their high cost price entailed by the usage of physically deteriorated equipment with limited technical capacities.

The project is provided for reequipment of spinning production with full replacement of the present spinning machine base.

The project implementation will allow to provide with the output of nearly 2,6 thousand tons of half-woolen yarn of high quality per year and nearly 6 thousand tons of textured yarn.

The expected economic effect from the reequipment of the spinning room will be 1,1 bln. rubles per year.

Further reequipment of the knitted outerwear mill with the installation of circular knitting equipment, flat-knitting machines and finishing equipment is provided for a further consolidation of sales positions of knit-wear on the domestic market, the CIS and other foreign markets.

The expected economic effect from the reequipment of the knitted outerwear mill will be 1,6 bln. rubles per year.

The expected increase in the output of knit-wear is 472 thousand units per year.


10) Technical reequipment of “KIM” Open Joint Stock Company makes provisions for implementation of the technology of production of hosiery with computer graphics.

The project costs 15,6 bln. rubles.

The project implementation will allow to extend the assortment of men’s and women’s hosiery with high consumer properties that are competitive on the domestic and foreign markets.


11)  Removal of the production capacities of “Grodno Industrial Tanning Association” State Unitary Enterprise to the free trade zone “Grodnoinvest” (the tanning enterprise on Karskogo street, Grodno).

The aim of the project is to improve the environment in the central area of Grodno, provide the markets of the Republic of Belarus, the CIS and Europe with new leather goods of high quality.

Total project cost — $46 mln.,


-         Building and assembly works – $25,7 mln.

-         Equipment – $20,3 mln.

Amount of required investments – $46 mln.


Annual output will be 600 thousand m2 of leather goods including: 300 thousand m2 – leather for upper footwear; 180 thousand m2 – leather for haberdashery and furniture leather; 120 thousand m2 – lining leather.


12)  Design and construction of a new manufacturing complex for the output of footwear with a capacity of 3 mln pairs per year by Minsk “Lutch” Open Joint Stock Company

The project costs 122,7 bln. rubles.

According to the General development plan of Minsk the footwear manufacture located within the territory of Kalvariiskaya street, Tuchinskogo lane and Timiryazeva street is subject to removal without suspicion of production by a phased relocation of production flows to a new industrial area located near Minsk heat station #4.

According to preliminary estimates the area of the manufacturing complex should be about 50 thousand m2 in the two-storied design.

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