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Support of the Development Bank: transparent as glass and strong as iron

Flexibility, adaptability, modernity and innovation are epithets that are applicable today not only for business, but also characterize state-owned enterprises. The dogma that private organizations are more technologically advanced and progressive than state-owned ones ceases to exist, including thanks to the initiative of the Head of State “One District – One Project” and the policy of import substitution implemented by the Government of the country.

Small and large state-owned enterprises throughout the country are actively using the available support mechanisms for development: technological re-equipment, the production of new in-demand products and the organization of full-cycle production.

Raw materials or components are required in the manufacture of any type of products, which mainly determine both the quality and the cost of the final product. The heads of the enterprises of the eastern region of the country visited by the Chairman of the Board of the Development Bank Sergey Stolyarchuk did not think long about the question whether it is worth buying these main components when there is an opportunity to organize the process of their self-supply. Together with Mogilev branch of the Development Bank, they acted quickly, decisively, and, most importantly, efficiently.

The glass factory in Elizovo is an export-oriented manufacturer of various products. The company operates at full capacity and produces about 740 million glass jars and bottles per year. Half of the products are supplied abroad; the rest is in demand within the country.

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“It is symbolic that you visit the plant on the day of signing of the act of commissioning of a new cullet sorting line. Thanks to our joint investment project, we will be able to produce 50 thousand tons of cleaned and sorted cullet annually and ensure our own production of glass containers from it,” said Oleg Gerbach, director of Grodno Glass Plant branch in Elizovo.

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The head of the plant explained that earlier raw materials were purchased from suppliers, and now the investment project will allow not only to provide Grodno glass plant as a whole with sorted cullet, but also to sell part of it to other consumers.

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Siarhei Staliarchuk noted that the creation of a production site for the preparation and sorting of cullet will reduce dependence on external suppliers and increase the margin of its own production of glass containers.

“It is important that thanks to this production, new jobs have been created in Elizovo village. And the modern technological solutions used in the implementation of the project, including optoelectronic glass color sorting, will improve quality, efficiency and working conditions,” said the Chairman of the Management Board of the Development Bank.

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Despite the fact that the implementation of the investment project is at the final stage, the plant plans not to stop and continue development - to carry out the technical modernization of cooling towers.

Siarhei Staliarchuk assured the management of the enterprise that the Development Bank is ready to join the implementation of this project just as quickly and effectively.

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Further in the program of the working visit is another unique enterprise that produces products on a metal frame and electrical goods.

JSC “Olsa” is the only manufacturer of garden and camping furniture, as well as household electric pumps not only in Mogilev region, but also in the Republic of Belarus. At the same time, the company is constantly working to expand the product line, which today includes about 700 types of goods. The production facilities of JSC “Olsa” are loaded at full capacity and allow to produce more than 1 000 000 products per year.

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“The products of our company are manufactured along the chain of the full technological cycle: from design to assembly and packaging of products with mandatory quality control at each stage of production. Goods under the OLSA trademark are in demand and supplied to 14 countries around the world. More than 80% of the products are exported,” said Director Ekaterina Bogdanovich.

The head of the enterprise explained that 25% of the cost of finished products are metal pipes that are purchased abroad. They are consumed for production by 700 tons per month.

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“By reducing costs, we will become more attractive to customers and will be able to compete even more effectively in foreign markets. Therefore, we turned to the Development Bank for financing to create a modern, high-tech production of import-substituting products with the introduction of automated technology for the production of electric-welded pipes and metalworking,” said Ekaterina Bogdanovich.

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The implementation of the investment project will increase production volumes, reduce costs and improve the efficiency of the enterprise with additional profit. At the same time, the export potential and the share of shipped innovative products, as well as products with high added value, will increase.

In addition to garden and household furniture, the company manufactures medical gurneys and beds with a hydraulic and electric drive.

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Their production volumes will increase after the implementation of the investment project. It will allow medical institutions of the republic, as the used gurneys and beds wear out, to replace them with high-quality and functional domestically produced furniture in a short time. In addition, the company plans to increase export of this type of product: today such furniture is in demand in foreign markets, including in the countries of the far arc.

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Ekaterina Bogdanovich noted that the support mechanisms available in the country allow the company to keep a course for continuous development and confidently carry out activities both in the domestic market and abroad.