OREANDA-NEWS. August 12, 2011. Global textile brands are interested in joint projects with Belarus, the chairman of the Belarusian light industry concern Bellegprom Gennady Vyrko told reporters.

“The big textile companies are eyeing the Belarusian market,” Gennady Vyrko said. He also noted that Bellegprom is currently discussing partnership opportunities with several potential investors. “The talks on redeployment of three plants are underway. We are discussing the possibility to relocate a plant from Bursa to Baranovichi cotton factory. MOGOTEX is in talks with Pakistan to move a bed linen factory from Finland,” Gennady Vyrko said. Moreover, there are plans to relocate a weaving mill from Belgium. According to Gennady Vyrko, foreign companies are interested in the Belarusian light industry. At the same time local manufacturers have been tasked to focus on flax fiber processing and ways to ramp up production.

Gennady Vyrko added that Chinese companies are also keen on cooperation with Belarus.

Belarus will soon hold talks with Chinese companies on raising investments into Orsha Linen Mill, Chairman of Bellegprom Concern told reporters.

The financing of the company’s upgrade was discussed at a session of the Presidium of the Council of Ministers of Belarus.

“A Chinese delegation is to arrive in Belarus from 11 to 20 August to discuss the investments into the development of Orsha Linen Mill and the entire linen industry of Belarus,” the Bellegprom Concern chief said. He emphasized that Belarus is interested, first of all, in foreign direct investments.

Gennady Vyrko reminded that Orsha Linen Mill is gearing up for a dramatic upgrade of production facilities aimed to manufacture competitive products. The initial funds for the company’s upgrade were estimated at Br545 billion, including Br145 billion for the construction and installation works and EUR 82 million of external borrowing. However, as the external borrowing situation got rather complicated, the modernization plans were revised. “We have analyzed the financial performance of the company and came to the conclusion that the technical upgrade should be carried out using the company’s own foreign currency revenues. Thus, the cost of the project shrank by Br320 billion. This is the money that should have been allocated by the government. The payback period will reduce by seven years,” Gennady Vyrko said.

Provided the linen industry development program is a success and the economy environment is favorable, by the year 2013 Orsha Linen Mill plans to launch the second phase of the technical upgrade meant to build up the company’s capacities.

The work on modernizing Orsha Linen Mill that started in 2009 is bearing fruit already. In H1 2011 the company posted a 13.4% profitability of sales, while two years ago the company was loss-making. Over this period the export grew by 67%, foreign currency revenues by 88%.

Gennady Vyrko added that not only the linen industry, but also the entire light industry needs foreign investments. “The concern’s demand for investments is estimated at USD 0.5 billion. It is the money we are able to utilize, invest in production and get the returns,” he said.