The government will consider the innovative project for the modernization of OJSC "Orsha Tool Plant"

This was reported to journalists by the Prime Minister of Belarus Andrei Kobyakov during a working trip to the Vitebsk region, according to a BELTA correspondent. 

"The situation at the Orsha Tool Plant is difficult. For now, there is only an idea on how to improve the situation at the enterprise, and there are prospects, primarily the large Russian market, as well as the domestic one. About $30 million is the volume of annual import of cutting tools into Belarus, similar to what the Orsha plant produces.

However, the level of equipment and energy costs makes its products outdated and uncompetitive. The issue of how to properly structure the innovative project proposed by the enterprise is currently being considered. The modernization of the plant has its risks, as we would not want to repeat the situation with woodworking. On the other hand, there is a team. This is the greatest asset - the personnel, their desire, skills, and experience. Therefore, we will consider the project at the next government meeting. And taking into account the modernization experience we already have, and financial capabilities, we will develop the most optimal option," Andrei Kobyakov concluded.

The company has developed an innovative project "Modernization of OJSC Orsha Tool Plant with the introduction of new technological processes for the production of metal-cutting and auxiliary tools". The business plan is currently undergoing approval at the Ministry of Industry. The implementation of the project involves the construction of a new production building and the purchase of equipment worth about $36 million. The total cost of implementing the innovative project will be $62.57 million.

The developed business plan includes the mastering and production of 400 types of new tool designs comparable to European counterparts with high competitiveness in the markets of Belarus, CIS countries, and others. Therefore, the project implementation is a way to reduce imports by Belarusian consumers and increase the export of high-tech tools. "Thus, the plant, which is important, will also ensure employment, creating jobs at a higher technological level," the Prime Minister emphasized.

JSC "Orsha Tool Plant" is a specialized manufacturer of auxiliary and cutting tools for metal-cutting machines. The total product range includes over 3,000 types of tools for milling, drilling, threading, boring, and turning operations. Currently, the enterprise is avoiding bankruptcy through exports to Russia, as domestic market sales do not generate working capital. The company's accounts are frozen due to overdue accounts payable. The enterprise has been trying to resolve this issue since 2015, concurrently with the development of a modernization business plan, and counts on a favorable decision and support at the highest level.

Prime Minister of Belarus Andrei Kobyakov also visited the Orsha Flax Mill.

In the near future, as soon as the reconstruction of Factory No. 2 of the Orsha Flax Mill is completed, the government will return to discussing the creation of a holding company or another vertically integrated structure that will grow, process, produce, and sell finished products. "I think that in 2018, we will have to work within such a structure," Andrei Kobyakov added.

Ekaterina Knyazeva, photo by Alexander Khitrov, BELTA.