Orsha Flax Mill Achieves Break-Even Operation

March 29, Minsk / Olga Belyavskaya - BELTA /. The Orsha Flax Mill has achieved break-even performance based on the results of 2010. This was announced to journalists by the enterprise's General Director Vladimir Nesterenko, BELTA correspondent reports. The draft comprehensive business plan for the development of the flax industry in Belarus in 2011-2015 was considered today at a meeting of the Presidium of the Council of Ministers. The head of the Orsha Flax Mill noted that this year the enterprise plans to maintain the growth momentum in economic indicators. "For the first quarter of this year, profitable operation is planned, with net profit expected to be around Br1.5 billion. Production growth rates are expected to be 150% compared to the same period last year at current prices, and sales dynamics are also positive," said the General Director. According to Vladimir Nesterenko, the flax mill was able to achieve break-even performance primarily due to technological re-equipment. Since 2007, about Br30 billion has been invested for these purposes. In addition, flax fiber producers have started supplying higher quality raw materials to the enterprise. "And this is 60% of sales success," he emphasized. The situation on the foreign market has also been favorable. Demand for flax has significantly increased as linen fabrics have become more popular and fashionable. Last year, the enterprise's positive foreign trade balance was $25 million. In the first quarter of this year, this figure is expected to be around $8 million. Analyzing the prospects for the formation of a flax holding company in Belarus, with the Orsha Flax Mill as the parent organization, Vladimir Nesterenko noted that the project for the formation of such an association is justified, but it must be implemented in stages. "First of all, it is necessary to ensure the effective operation of all structures that will be part of the holding, and to technically re-equip them," summarized the head of the Orsha Flax Mill. The Orsha Flax Mill is one of the leading enterprises in the light and textile industry of Belarus and other CIS countries, established in 1930. It produces over 30 million linear meters of finished linen fabrics per year. The main range of finished products includes various table linen: tablecloths, napkins, towels and their sets; bed linen: sheets, pillowcases, duvet covers and sets; and half-linen bedspreads. The enterprise operates over 120 branded stores and sections in Belarus. -0-