OREANDA-NEWS. January 11, 2008. OAO Mineral Wax Plant has started building a facility for producing 18,000 tonnes of paraffin per annum, the company’s director Valery Mulyarchik told BelTA.

Council of Ministers resolution No 1852 approved the architectural project for Mineral Wax Plant to build the facility for manufacturing petroleum hard paraffin. As raw materials the company will use gatch made by OAO Naftan.

According to Valery Mulyarchik, the company is supposed to build Belarus’ first production facility of this kind in 2008-2009. It is an import-substituting project, which is supposed to fully satisfy the domestic demand for paraffin. The company plans to export around 15,000 tonnes of the total annual output of 18,000 tonnes per annum to Russia and non-CIS states. The product enjoys high overseas demand — orders from customers already exceed the targeted output.

In January 2008 Mineral Wax Plant started preparing the construction site. Following last year’s tenders Swiss Sulzer company was chosen to develop the technology and manufacture the equipment. Mineral Wax Plant expects to start getting the new equipment in February 2008. The installation and tuning is supposed to end in late 2009.

The company of the project may reach Br65 billion. It will be funded by the innovation fund of Belarusian petrochemical concern Belneftekhim and the company’s own money. The company is in talks with several banks negotiating the possibility of getting loans next year.

“Setting up the production of paraffin is a major project that will advance Mineral Wax Plant to new manufacturing levels,” stressed Valery Mulyarchik. The company will create 80-85 new jobs.

The company plans to boost the output by 400% up on 2005. With the profitability of the new installation as high as 20-22%, investments will be returned within 4.5 years. Using the proprietary paraffin, the company will be able to reduce costs of other products, in particular, modelling compounds used in precision moulding. In the future the company may start manufacturing paraffin candles.

In 2007 OAO Mineral Wax Plant turned out around Br18 billion worth of merchandise, 12% up on 2006. Export accounted for some 45% of the total output, with the export exceeding the import by 300%.

Mineral Wax Plant was founded in 1961. It is located in the town of Svisloch, Minsk oblast. The company is part of Belneftekhim concern and specialises in preservation greases and oils, reagents for drilling and repairing wells, modelling compounds used in precision moulding, lubricating and cooling liquids and lubricating materials. The company employs 250 people.