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Lukashenko to visit Shklov Newsprint Mill

24.01.2020

Belarus President Aleksandr Lukashenko is set to tour Shklov Newsprint Mill on 24 January, BelTA has learned.

The head of state will be updated on the progress in implementing the company's investment project to launch production of base paper for decorative facing materials with the total annual capacity of 30,000 tonnes. Top on the agenda will also be social and economic development of Mogilev Oblast and Shklov District in particular.

The president will also study operation of the newsprint mill. In 2019 Shklov Newsprint Mill manufactured products worth Br75.7 million in actual prices, up 17.7% over 2018. In 2019 the company produced 53,400 tonnes of paper and cardboard, up 27.1%. Nearly 65% of output is exported (in 2019 the company shipped its products to 42 markets). The main trading partners are Uzbekistan, Iran, Ukraine and Turkey. The operation of the company and the implementation of the above-mentioned project were discussed at the meeting hosted by the president in December 2019.

Back then Prime Minister Sergei Rumas pointed to a number of difficulties with some projects, which required decisions at the level of the head of state. The project run by the Shklov-based company did not reach the designed capacity. At present the production line manufactures alternative types of products, however this is not as profitable as producing base paper. Some nodes and aggregates should be improved in order to be able to roll out base paper of the desirable quality. The company requested additional resources from the budget to finish the project.

The head of state ordered to undertake a comprehensive operational review of the companies facing difficulties with their investment projects. The audit was to cover a broad range of aspects, including managerial practices, discipline, performance, financial standing, business strategy, product quality, competitiveness and import substitution efforts. Back then the president announced plans to inspect some of these companies at the beginning of 2020. Their efficiency will be measured against several parameters, including technology, output, profit and profitability of sales. Before turning to the government for assistance, these companies should exhaust all their own resources in addressing their issues.

Written by belta.by