BelGee expected to reach 50% localization rate

Thursday, 27 July 2017 14:16  |  Written by  BelTA

Belarus' Economy Minister Vladimir Zinovsky said during a visiting government session in Borisov District

BelGee is expected to launch the production of various auto parts on time to make sure that the rate of localization is not less than 50%, Belarus' Economy Minister Vladimir Zinovsky said during a visiting government session in Borisov District on 25 July, BelTA learned from the ministry.

“The second task is to launch the production of various auto parts right on schedule. Localization should be not less than 50%. Having failed to do so, we will create a barrier to the export of products to the EAEU market by ourselves,” Vladimir Zinovsky said.

The minister also spoke about the issues in the development of Borisov District as a whole and laid out the proposals for their solution. Analyzing the situation in the industry, Vladimir Zinovsky identified the outstanding issues affecting the competitiveness of enterprises which include the lack of return on investment and a big loan burden. “Therefore task number one for industrial companies, in our view, is to reduce the credit load by means of increasing the production efficiency, optimizing business processes and the number of administrative staff,” the minister said.

While reviewing the situation in the local construction industry Vladimir Zinovsky mentioned the underutilization of the capacities and low efficiency of construction companies. “We need a development strategy for the enterprises which will enable them to operate in the black without the state support,” he said.

According to the minister, the projects to set up companies in cooperation with big enterprises of the district and oblast, and also the need for clusters are the main areas for investment.

“The construction of the BelGee car factory is becoming a driving force behind the development of the related sectors. This will also attract small businesses producing car seat covers, child safety seats, floor coverings and other related goods that we have to import today,” Vladimir Zinovsky said. He suggested restoring the operation of the business promotion center and promised methodological support from the Economy Ministry.

The minister believes that in order to enhance the efficiency of the transport potential of Borisov District the sector development planning should go in sync with the construction of the Chinese-Belarusian Industrial Park Great Stone and the multimodal industrial and logistics hub in the town of Bolbasovo, Orsha District.

Vladimir Zinovsky also mentioned the lack of industrial area to set up new companies. He suggested making use of the premises of the enterprises that are being closed dowb, conducting their revision and compiling a list of companies for business proposals.

According to the economy minister, the issues faced by Orsha District and Borisov District show, once again, the need for the separation of the functions of the state as regulator and owner. The speedy solution of this issue as well as other problems that I have identified will improve the competitiveness of not only Borisov District but the whole country in general,” the minister noted.

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