OREANDA-NEWS. September 14, 2011. The State Committee for Property Management is making another attempt October 20, 2011 to put up for auction Bobruisk Fibreboard Mill, initial price reduced by 50%.

Bobruisk Fibreboard Mill (a branch of Mogilevenergo Company) will be offered for sale as a single property unit.

The State Committee for Property Management has already made two unsuccessful attempt to auction off the fibreboard mill (June and December 2010), however every time the auctions would not take place because of the lack of investor interest.

The initial price is set at Br16.123 billion (USD 3.186 million at the official rate of the NBB), which makes 50% of the company’s sheet value as of January 1, 2011.

The company of a 468-strong staff was designed to produce 25 million square metres of fibreboard a year.

The investor is expected to keep the staff quantity unchanged for the first 12 months after the deal, and sustain the company’s production profile for the next 5 years after inking the deal. Moreover, according to the investment contract, the new proprietor is expected to invest in production development at least USD 7 million within a three-year period after signing the deal.

Established in 1968, Bobruisk Fibreboard Mill is one of the largest of the kind in Europe. The company exports fibreboard to 21 states of Europe and Asia.