Red October increased shoe exports by 2.7 times in the first quarter

May 19, Vitebsk / Diana Kurilo - BELTA /. Open Joint Stock Company "Krasny Oktyabr" increased its footwear exports by 2.7 times in the first quarter of 2009, the General Director of the Joint Limited Liability Company (JLLC) "Marko" (the owner of the controlling stake in OJSC "Krasny Oktyabr"), Nikolay Martynov, told a BELTA correspondent. In the Russian market in January-March, the enterprise sold over 60 thousand pairs of shoes. In value terms, exports increased by 22% compared to the same period last year. Currently, the enterprise is studying the possibilities of supplying footwear to Kazakhstan. As Nikolay Martynov noted, within the Customs Union, this market could be as promising as the Russian one. The production volume at the enterprise in January-March in physical terms increased by 2.5 times compared to the same period last year. In comparable prices, this figure increased by 1.3 times. Increasing production and export volumes is a prerequisite for making "Krasny Oktyabr" profitable and will allow "Marko" to fulfill the joint-stock company's debt obligations, Nikolay Martynov emphasized. By the end of 2009, the owner plans to increase footwear production at "Krasny Oktyabr" to 650 thousand pairs. In accordance with the development business plan, in 2010, the joint-stock company will reach a production volume of 1 million pairs of shoes. In July 2008, "Marko" acquired 83.64%, or 6,024,867 shares of "Krasny Oktyabr" with a nominal value of Br30 for more than Br180.7 million. Having become the owner of "Krasny Oktyabr", "Marko" undertook to preserve footwear production and increase the volume of industrial production by 1.3 times by 2010 compared to the 2007 level. If these obligations are not met, "Marko" will have to compensate the budget for the difference between the market value of the shares on the date of acquisition and their nominal value. In addition, "Marko" assumed "Krasny Oktyabr's" debts to the budget and its credit obligations to Belarussbank. Joint Limited Liability Company "Marko" is one of the largest footwear manufacturers in Belarus. The enterprise was established in 1991. In addition to footwear production, "Marko" is engaged in the production of leather goods and shoe lasts for enterprises in the republic. The number of employees at all "Marko" facilities is over 4,000 people. -0-