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Lukashenko praises progress in modernization of OAO Kamvol

MINSK (BelTA) – Belarus President Alexander Lukashenko praised the results of the project to modernize OAO Kamvol. At the same time, he pointed to the need to finish the project and to continue the development of the company. The head of state made the statement during the visit to the enterprise in Minsk on 8 December, BelTA has learned.

“I have come to congratulate you on the completion of the great modernization project. We launched it long ago, faced many difficulties. Different things happened. I think that we have done everything to reach our main goal, which is to produce good fabrics,” the head of state said as he met with the personnel of the enterprise.

The president explained that the decision to upgrade OAO Kamvol was made for two reasons. “First, people have been working and are working here, i.e. they need jobs. That is why we have launched the modernization of this enterprise. Second, we could not lose this business and forget our best practices. I think it is a crime when the state forgets the things it can do well. It is a bad sign and bad memory of the government,” the Belarusian leader stressed.

According to Alexander Lukashenko, he has not decided yet if he is fully satisfied with the results of work. “I have postponed the visit to your enterprise several times. But today I thought that, perhaps, you had finished the project already and I should see the results,” the president said. “Looking at you, I can say that you are not fully satisfied with the condition of the factory. It is right. We have not finished yet, it will be better in a year. In a year we will say that this is an efficient enterprise making good fabrics and selling them on global markets, we will say that you have normal salaries. We are at the beginning of our journey right now.”

At the same time, the head of state praised the fact that there are enough workers to ensure the smooth production process. “There no problems, the situation is not a catastrophe. There are enough people willing to work at this clean and nice factory,” he is convinced.

“Just recall the state of affairs here before the modernization was launched. I remember it. I think you do too. Therefore, we have turned it into a good production facility, and you will, probably, like working here. We will see next year,” the president added.

The head of state visited OAO Kamvol last time in December 2012. The enterprise was in dire straits back then. The financial and economic situation there was bad, major equipment was deteriorated by almost 90%.

Five years ago Alexander Lukashenko criticized such state of affairs and made a number of tough personnel decisions. He promised to restore OAO Kamvol to its workers.

The president has been keeping this issue under control for years. There were two government conferences at the level of the president in July 2015 and December 2015.

More than $110 million has been invested in the modernization of OAO Kamvol so far. Today it is a high-tech enterprise, one of the best equipped factories in the post-Soviet space and even in Europe.

In August-November 2017, the factory produced 38,500 line meters of fabrics in cooperation with Zen Led (Turkey).

Plans have been made to produce 4.5 million line meters of fabrics in 2018. The enterprise is expected to reach its estimated capacity of 6 million line meters in the near future. The Turkish partner has undertaken to sell at least 4 million line meters of fabrics. An $1.2 million agreement to sell 150,000 line meters of fabrics from the new collection has been concluded.

OAO Kamvol exports over 55% of its output. There is positive dynamics in sale promotion. In January-September 2017, OAO Kamvol's export made up $5.7 million, up 1.6 times over the same period of 2016.

In January-September 2017, the returns on sales reached $20.1 million, up 1.8 times in actual prices.