The first high-pressure hose production in Belarus has been established in Orsha
It will be carried out at the joint Belarusian-Italian enterprise CJSC «Manuli Hydraulics Manufacturing Bel», established as a result of the signing of an investment agreement between the Ministry of Industry of the Republic of Belarus on the one hand, and the company «Manuli Rubber Industries», OJSC «BMZ — management company of the holding «BMK» and OJSC «Legmash Plant» on the other.
The grand opening with the participation of the First Deputy Prime Minister of Belarus Vladimir Semashko, Deputy Minister of Industry Pavel Utyupin, First Deputy Chairman of the Regional Executive Committee Gennady Grebnev, the Directorate of «Manuli Rubber Industries», founding enterprises, the leadership of the Orsha District Executive Committee and the «Legmash» plant, and general contractors took place on December 10.
The enterprise will produce single-braid and double-braid hoses, which are used in the hydraulic systems of construction, road, agricultural, forestry, and utility machinery. The capacity of the new production facility, for the creation of which over 16.5 million euros were invested, will be about 7.3 million linear meters of high-pressure hoses (HPH) per year. To implement the project, internal and external finishing of previously unused production areas of the "Legmash" plant was carried out, and 29 units of main and 42 units of auxiliary equipment were installed.
It should be noted that currently hydraulic hoses are imported into Belarus from the EU countries, Russia, and China. The market for these products is about 1800 thousand linear meters per year. The share of CJSC «Manuli Hydraulics Manufacturing Bel» in the total volume is estimated at 87%. Its main consumers in Belarus are OJSC «Minsk Tractor Works» and PC «Gomselmash». It is planned that 20% of the products manufactured at the joint venture will be sold on the domestic market, and 80% will be sold through the distribution network of the company «Manuli» and exported to consumers outside Belarus. In total, already in 2015, «Manuli Hydraulics Manufacturing Bel» will ship products worth about 9.5 million euros. Revenue per employee in the coming year will be 92 thousand euros. In 5 years, this figure should increase to 123 thousand euros, and the enterprise's profitability should reach 17%.
The main materials for high-pressure hoses are rubber compound in strips supplied by "Manuli" (about 1072 tons per year) and RML wire produced by OJSC "BMZ — management company of the holding "BMK" (about 1706 tons per year). By the way, a significant factor in the decision to establish SP OOO "Manuli Hydraulics Manufacturing Bel" was precisely the many years of fruitful cooperation between BMZ and "Manuli" in supplying RML wire.
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We are not standing still, – Vladimir Semashko emphasized in a conversation with journalists. – Over the past 12 years, the share of industrial production of the Republic of Belarus in the global market has increased 2.3 times. We have preserved large enterprises, but the potential of small and medium-sized ones has not yet been fully utilized. The time has come when we can and must produce import-substituting products. Until recently, high-pressure hoses were bought abroad. And we paid for them in foreign currency – about 6 million dollars a year. By creating such production in Orsha, we have, to some extent, solved the issue not only of import substitution but also of increasing export potential. It is important that today an Italian company with a world name cooperates with us, which means that a normal investment climate has been created in Belarus".The launch of production will create 96 new jobs. Currently, 42 people are employed at the enterprise.
Olga Lebedeva, "Vitebskiye Vesti"