Polotsk-Steklovolokno is diversifying its sales markets amid worsening external economic conditions
The meeting of shareholders was attended by the Chairman of the House of Representatives Vladimir Andreichenko. He inquired about the forecasts for the first quarter and the company's strategy in the new economic conditions, which are severely complicated by the crisis in the oil market and the coronavirus situation in Europe. Oleg Kurilin replied that "Polotsk-Steklovolokno" intends to "diversify its product range by changing markets." "In this situation, we are targeting the EAEU market," the General Director added. He specified that this refers, in particular, to Russia, where the demand for products of the Belarusian enterprise has significantly increased after supplies from China and other countries ceased.
"We are shipping a significant amount of products ahead of schedule. In my opinion, we will manage to complete the first quarter without a decrease in production volumes. For now, we predict a slight lag in revenue. Everything will depend on the development of the global situation. But for now, we feel quite confident," emphasized Oleg Kurilin.
The General Director presented the shareholders with a report on the results of the financial and economic activities of "Polotsk-Steklovolokno" for 2019. The enterprise met all five established key performance indicators. Net profit amounted to Br20.6 million (against a target of Br14.1 million). The growth rate of exports of goods and services was 101.2% and 108.3%, respectively (against a target of 101.1% in both cases). Sales profitability was 13.1% (target - 10%). Oleg Kurilin specifically noted the ahead-of-schedule growth in labor productivity compared to the growth in average monthly wages: the ratio coefficient was 1.013. In addition, the planned effect from cost reduction measures was achieved. It amounted to Br2.3 million against a plan of Br2.1 million. The share of innovative products in the total volume shipped was 26.4%.
Oleg Kurilin also spoke about the enterprise's plans for 2020. In April, "Polotsk-Steklovolokno" will launch a basalt fiber production facility. Construction of a new workshop will begin soon. "All equipment supply contracts have been concluded. We are selecting a general contractor in the coming days and will begin construction," said the head of the enterprise. In 2020, the OJSC intends to maintain a positive development trend. According to the business plan, sales profitability should be at least 10.7%, export growth rate - 101.7%, and net profit - a minimum of Br15 million.
During the general meeting of shareholders, the enterprise's performance within the "Vitebsk" free economic zone was discussed: implementation of innovative projects, job creation, etc.
OJSC "Polotsk-Steklovolokno" produces fiberglass, rovings, glass yarns, electrical insulating and structural glass fabrics, construction glass fabrics and meshes, silica materials, and more. The annual production volume is 57 thousand tons of fiberglass, the main part of which is exported to more than 50 countries worldwide. The enterprise employs about 4 thousand people.