Chinese investments for packaging enterprise in China-Belarus industrial park

Monday, 12 June 2017 14:06  |  Written by  BelTA

Chinese investors intend to build an enterprise in the China-Belarus industrial park Great Stone to make packaging materials

Chinese investors intend to build an enterprise in the China-Belarus industrial park Great Stone to make packaging materials, BelTA learned from Nian Yunan, President of the Chinese company Xinrongji Holding Group, before negotiations with Belarusian Agriculture and Food Minister Leonid Zayats on 12 June.

The president of the Chinese company said: “While in Belarus we were made familiar with a number of your companies and were pleasantly impressed. We mainly took a look at Belarusian meat and dairy industry enterprises as well as banks. We would like to set up a modern enterprise to make packaging in the Great Stone industrial park.”

Nian Yunan said that the enterprise will make packaging out of polylactide. “It is a new technology that will replace plastic packaging. It is kind of a revolution in this sphere. We've developed this technology together with a leading Shanghai university and are ready to assimilate it. This avenue will require about $500 million in investments,” said the Xinrongji Holding Group president. “Potato and corn are the main raw materials for making this packaging. These raw materials are considerably more expensive in China, this is why Belarus appeals to us. The Chinese market needs a lot of this merchandise but we intend to sell it all over the world.” Nian Yunan said that the enterprise will make about 100 tonnes of this packaging initially. About 250,000 tonnes of corn or 300,000 tonnes of potatoes will be needed to make this amount of packaging.

Apart from that, Chinese investors intend to build an enterprise to make meat and dairy products in Belarus. Zoya Kavaleva, manager for Belarus at DRex Food Group, explained that they had considered the possibility of setting up the enterprise in the China-Belarus industrial park Great Stone. “But a food enterprise cannot be created in the industrial park due to the existing restrictions. Although we would certainly love to set up the enterprise over there because the conditions are excellent. Negotiations are in progress now,” she explained. The enterprise will be built from scratch. Ready-made products will be primarily exported to China as well as other foreign markets.

Top executives of the major Chinese companies Xinrongji Holding Group and DRex Food Group are in Belarus on a visit. The companies are ready to invest $1 billion in modernizing existing enterprises and building new ones in Belarus. DRex Food Group President Dai Shiwei explained that the money will be spent within roughly three years. “But we intend to work fast. We may be able to accomplish it within one year,” he stated.

A protocol on cooperation is supposed to be signed as a result of the visit.

The Belarusian Agriculture and Food Ministry signed a protocol of intent to the tune of $1 billion with the Chinese company DRex Food Group in Beijing in May. The Chinese company intends to invest in the development of dairy industry, in particular, the construction of integrated dairy enterprises and the modernization of processing enterprises.

Read 179 times

1