Orsha Linen Mill is negotiating the creation of a joint venture with the Italian company Marzotto Group

September 9, Minsk / Tatiana Chumakova - BELTA /. The Republican Unitary Production and Trade Enterprise "Orsha Linen Mill" is negotiating the creation of a joint venture with the well-known Italian company Marzotto Group. This was announced today at a press conference by the general director of the linen mill, Vladimir Nesterenko, according to a BELTA correspondent. "This is a lengthy process due to the large size of the investments and the fact that our production costs are increasing today," noted Vladimir Nesterenko. The technical re-equipment being carried out at the enterprise will contribute to the investment attractiveness of the Orsha Linen Mill. Thanks to the technical re-equipment, labor productivity, the competitiveness of the manufactured products, as well as employee salaries should increase. The General Director also said that negotiations with Chinese manufacturers are at the initial stage. A delegation of Chinese business circles visited the Orsha Linen Mill in August. "The Chinese are cautious investors, and they are unlikely to make a quick decision," believes the General Director. Vladimir Nesterenko also announced that in 2010-2014, it is planned to invest Br456 billion in the development of the enterprise, and Br53 billion was mastered last year. These funds will be used for the re-equipment of three factories of the linen mill for processing long flax fiber. It is planned to increase flax fiber processing by almost 2 times, and fabric production volumes by 2.5 times compared to the current level. Currently, about 60% of the manufactured products are sold abroad; after technical re-equipment, the share of exports will increase to 80%. "Such large-scale plans are, of course, associated with certain risks," said the General Director. He explained that the linen mill faces high competition from Asian manufacturers, and it is not easy to solve the personnel problem in the small town of Orsha. Orsha Linen Mill is one of the leading enterprises in the light and textile industry of Belarus and the CIS countries, founded in 1930. It produces over 30 million linear meters of finished linen fabrics per year, various table and bed linen, and half-linen blankets. More than 120 company sections of the enterprise operate in Belarus. -0-