/ / News
06.04.2012

Lukashenko encourages private business to set up new enterprises

OSIPOVICHI, 6 April (BelTA) – Private business should put more efforts into setting up new enterprises, said President of Belarus Alexander Lukashenko as he visited the foreign-owned private enterprise Perfumery and Cosmetics Factory Sontsa on 6 April.

“It is a major disadvantage that we don’t get new businessmen, who could build such enterprises,” said Alexander Lukashenko.

The head of state got familiar with the company’s operation, the manufacturing cycle used to make synthetic detergents and household chemistry products. The enterprise was set up in January 2010 by the investment company Lebortovo Capital Partners Limited. The latter has been founded by a group of Belarusian and foreign investors. Sontsa products are now available on the Belarusian market. Those are washing powders Mara, April, and Chaika. Over $30 million has been invested in production development. It is one of the largest investment projects implemented in Belarus in the last two years. The project is aimed at creating a modern import-substituting enterprise to manufacture up to 50,000 tonnes of dry detergents per annum and up to 24,000 tonnes of liquid detergents per annum. The amount will substitute about 75% of the relevant imports.

For the project the investor has been granted an unfinished building that had not been used for over 15 years. The startup complex was launched in June 2011 with the production of the washing powder Mara. The company started manufacturing liquid detergents and household chemicals, including dishwashing liquids, in December 2011. Chairman of the Supervisory Board Sergei Levin said they had managed to complete the investment program ahead of schedule. Last year the company turned out over 6,000 tonnes of synthetic detergents, with the output in January-February 2012 at 1,500 tonnes. The larger output has helped increase the share of domestic manufacturers in the domestic sales. While in 2011 Belarusian manufacturers accounted for 48.6% of the sold synthetic detergents, the figure reached 52.4% in January-February 2012.

The company plans to increase the output, in particular, by expanding the choice of products primarily liquid detergents. There are plans to start manufacturing liquid washing solutions in 2012 along with a wide choice of personal hygiene products.

Sontsa company has started exploring new markets. In October the company sold its products to Ukraine. As of January 2012 Sontsa products are sold in Russia. Sontsa products have been available in Kazakhstan and the Baltic states since February. The company plans to occupy a large part of the domestic market while gradually increasing export.

It is the third project accomplished by the investor. Earlier the investor had introduced the beer brand Bobrov and the juice Sochny on the Belarusian market. Total investments in Mogilev Oblast’s production sector have exceeded $100 million. Chairman of the company’s Supervisory Board Sergei Levin told Alexander Lukashenko they plan to start implementing other projects in Belarus. In particular, there are plans to build a dairy, selection, and veterinary complex in Minsk District, with investments earmarked to reach $65 million. The company is now choosing the technologies, studying Dutch and Israeli practices. Alexander Lukashenko expressed his interest and added the project should be beneficial for the country. The head of state said: “We don’t want someone acting like Russians here, who just buy things cheap to resell them at a profit”.