Belarusian woodworking company Borisovdrev urged to improve financial performance

Friday, 09 November 2018 14:10  |  Written by  BelTA

The head of government went to Borisov District, Minsk Oblast on 8 November

OAO Borisovdrev has reserves for improving its profitability, BelTA learned from Prime Minister of Belarus Sergei Rumas.

The head of government went to Borisov District, Minsk Oblast on 8 November. He visited the woodworking company OAO Borisovdrev, examined the sites where wood chips and raw materials are stored in addition to other storage facilities and a conveyor belt used to deliver wood to the MDF shop. The prime minister was also made familiar with the operation of the MDF manufacturing and varnishing line. Sergei Rumas was informed about the company's financial and economic state.

Borisovdrev is part of the woodworking holding company run by OAO Development Bank of the Republic of Belarus (DBRB). Sergei Rumas said: “I've regularly visited Borisovdrev. The company had a lot of problems when the Development Bank took over. The company has been operating at a profit this entire year and a steady profit at that – 9-10%. As far as board products are concerned, the company operates well: the workload stands at roughly 103%. The company can now continue working to reduce the prime cost and improve the quality of products. The matches manufacturing division operates with a workload of 85%. The situation is slightly worse as far as plywood manufacturing is concerned. The workload over there varies from 50% to 60%. The company has been given clear instructions to increase the workload of the plywood division to 90% in 2019. It will allow increasing profitability even more. On the whole, the profitability of the woodworking holding company reached 14% in January-September 2018. Borisovdrev Company has reserves for growth up to the medium level.”

The average salary at OAO Borisovdrev is on the rise. It reached Br880 in October 2018. “The pace the company picked up at the beginning of the year is still in place. Borisovdrev looks into the future with confidence,” stressed the prime minister.

Prime Minister of Belarus Sergei Rumas also visited the Belarusian-Chinese car factory BelGee. He went to see the welding shop, the painting shop, and the assembly line. He was informed about the company's financial and economic state and development prospects. Sergei Rumas said: “Next year the company will have to make and sell 25,000 cars. It is an ambitious goal but a feasible one. The company's management sees ways to reach it. Roughly 30% will be sold on the home market and 70% will be exported, primarily to Russia. In turn, the government takes every measure to help the company reach the intended figures in order to service loans. 25,000 cars in 2019 will be sufficient for the company to honor all the commitments on its own.”

OAO Borisovdrev specializes in making medium-density fiberboards (MDF) and plywood. In 2008-2014 the company reconstructed its manufacturing division and introduced a number of energy-saving measures in line with the relevant presidential decree. In January-September 2018 the company's industrial output totaled Br28.9 million or 163% as against the same period of last year.

SZAO BelGee makes and sells cars using the Geely brand. In January-September 2018 the company made over 5,400 cars.

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