VITEBSKPROM intends to create an investment fund to support enterprise projects

Industry accounts for 30% of the gross regional product and almost 70% of revenue. The Vitebsk region provides 15% of the country's industrial output. Therefore, the sector is constantly under the close attention of the regional executive committee leadership.

For a number of reasons, including external ones, the industrial complex is going through difficult times. The wear and tear of fixed assets, high energy intensity of products with low scientific intensity, an abundance of underutilized production capacities, coupled with management and staffing problems – this is an incomplete list of weaknesses. It is clear that with such a "bouquet of ailments," only production costs can grow.

Among the measures being taken to improve the situation, the creation of the state association "VITEBSKPROM" stands out.

Reference "VV": The state association "VITEBSKPROM," established by a decision of the regional executive committee, includes KUPP "Vitebchanka," KUP "Verkhnedvinsk Woodworking Plant," OJSC "Trud-Vitebsk," "Chashniki Special Clothing," "Promkombinat" (Ushachi), "Postavyfurniture," "Voropaevo Woodworking Plant," "Obol Ceramic Plant," and "Vitebskorgtekhnika."

100 days after taking the helm, the association's general director, Andrey Mashchenko, told "Vitebskiye Vesti" about the establishment and development prospects of the organization, which is designed to coordinate the work of the region's industrial complex.

– Andrey Sergeevich, what is the state association "VITEBSKPROM"?

– The association includes 9 organizations, both of communal property and OJSCs, where the state's share in the authorized fund exceeds 50%. In addition, a draft decree on transferring enterprises from republican to regional ownership is being coordinated, including more than 50 organizations for the Vitebsk region, most of which will also join "VITEBSKPROM".

In parallel, we are working to attract representatives of the private sector of the economy to the association. To this end, we are trying to solve several problematic issues, including at the level of Belarusian-Russian intergovernmental contacts, which businessmen raised at meetings with the region's leadership.

I am confident that only through concrete, effective actions can we convince private entities that our structure performs a useful function. By the way, the association's staff currently consists of 7 people.

– What goals and objectives does the chairman of the regional executive committee set for the association?

– The main goal is the revival of the Vitebsk region's industry and increasing the efficiency of state property management. To achieve this, we need to identify and eliminate pain points in the organizations' operations, solve problematic issues, including reconstruction and modernization, and establish and improve production cooperation.

Enterprises must work effectively for the Vitebsk region's economy and generate profit. Perhaps, in the future, "Vitebskprom" will fully coordinate the work of the region's industrial complex.

For now, we are trying to establish interaction between enterprises within the association. Today, at the formation stage, we have surveyed all organizations and identified key problems that need to be addressed at various levels. For example, in woodworking.

The association includes small enterprises from Verkhnedvinsk, Postavy, and Voropayevo, which are actually unable to purchase standing timber through the exchange, as established by law. "VITEBSKPROM" intends to resolve this issue through the government by initiating relevant changes in the regulatory framework.

The Obol Ceramic Plant is experiencing problems with payments for gas and electricity, accumulated during the modernization period and ramp-up to design capacity. It is understandable that the enterprise is energy-dependent, with the share of energy resources in the cost structure exceeding 50%. We are looking for ways out of the debt pit.

– What about using the insolvency procedure?

– We are currently considering various options. The plant operates profitably, for example, during the construction season. Now it is necessary to ensure timely payments for current energy consumption.

In parallel, we are preparing proposals to the government for debt restructuring, which has become simply unmanageable for the plant. We are working on the possibility of producing alternative products, such as clay powder, tenesite (a material for sports ground surfacing), and other measures.

– Does the association not substitute the management of enterprises?

– In no case. "VITEBSKPROM" will not work for the directorate. However, a number of issues arise that managers are often unable to resolve for objective reasons. In such situations, the association is ready to come to the aid of the enterprises' management.

For example, the Obol Ceramic Plant uses less than half of the area of the land plot for which it is forced to pay property taxes. To reduce costs, the enterprise should resolve the land issue, and our employees are again dealing with this.

In the future, we plan to establish an expert council within the association, inviting the most experienced and successful managers of industrial enterprises, regardless of their ownership form.

The goal is to jointly find ways to overcome the problematic situations faced by the real sector of the economy, as well as to provide expert support for decisions made in the region regarding the development of the industrial complex.

– This resembles the activities of the regional employers' union…

– It is difficult to say definitively. But the association needs information about the economic situation, about problems, which requires constant communication. Perhaps our council will become a platform for regular meetings between the leadership of the regional executive committee and the director corps, which will increase the efficiency of interaction between the authorities and the real sector of the economy.

The plans also include the creation of the investment fund "VITEBSKPROMA", which will be formed from the funds of the participants, allocated for the maintenance of the association's apparatus. Although this is a complex issue, to be resolved at the presidential level, we are ready to tackle it. Moreover, colleagues from the state enterprise "Vitebsk Concern "Meat and Dairy Products" shared their positive experience in this area.

An investment fund is necessary for financial support of enterprise projects. By the way, working with potential investors is also a task of the association.

– On whose behalf are you conducting negotiations with businesses?

– The regional executive committee has granted "VITEBSKPROMA" the authority to represent the interests of the Vitebsk region in negotiations with potential investors to establish trade and economic cooperation and develop foreign economic relations.

– What are the association's plans for 2017?

– We need to fine-tune the structure of "VITEBSKPROMA", build effective interaction with authorities, form an expert council and hold the first event with the participation of interested parties, create an investment fund, which should start operating fully next year. These are the minimum tasks. In addition, today the association has prepared conclusions for each enterprise, which we will submit to the chairman of the regional executive committee, Nikolai Sherstnev.

Perhaps, taking into account our recommendations, instructions will be given that need to be fulfilled as soon as possible. After all, the main task of "VITEBSKPROMA" is to stabilize the operation of enterprises, therefore we aim to ensure a positive result for the results of 2017, by helping organizations to carry out modernization if necessary, adjust business plans, jointly work out possible sources of financing, and so on.

– By what criteria will the association's activities be evaluated?

– There is essentially one criterion – the performance of the "VITEBSKPROM" enterprises. If organizations feel confident, make a profit, pay salaries and taxes to the budget, then the assessment of the association's efforts will be appropriate.

– At one time, the local industry department was part of the regional executive committee, later transformed into "VITEBSKPROM". Have you managed to study the experience of your predecessors to avoid repeating mistakes?

– Indeed, we familiarized ourselves with the materials and documents of that structure. It is difficult to create something new from scratch. Then an optimization took place, and some of the department's functions were transferred to the regional executive committee's economics committee.

According to Nikolai Sherstnev, which I share, if it had been possible to maintain a systematic approach to managing local industry at that time, the situation today would be different. "VITEBSKPROM" has to prove in practice that the association is a necessary link for building a clear, consistent, and effective system for managing the industrial complex.

Sergey Antonov, "Vitebskiye Vesti".