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BMZ as a destination point for investors

Last Thursday the First Deputy Prime Minister of Belarus Republic V.I.Semashko, the Industry Minister D.S.Katerinich, the executive committee of Gomel region deputy chairman B.K.Pirshtuk and the first deputy chairman of board of the Universal Commodity Exchange of Belarus V.S. Vladyko visited Belarusian Steel Works. On the meeting with the employees of the enterprise they spoke about development prospects of the enterprise, as well as about republic development prospects.

First of all, Vladimir Semachko appreciated BMZ activities. Addressing to the steel cord and wire plant №2 employees, he mentioned sustainable functioning of the enterprise. “The first half year the plant completes with positive profitability. The last year was difficult for BMZ: performing with losses almost 8 months, it showed stable operation only in September. Nowadays the profitability is high; there are some orders for the next half year, so it’s necessary to work at full capacity. To develop the enterprise and to pay a hire important is not only to produce, but to sell profitably. There is an investment program carried out on BMZ, which includes projects with different complexity degrees: large-scaled like sheet rolling complex and light-section mill as well as current projects of modernisation of existing production facilities. Concerning wages, there will be an increase in July. If you continue working successfully, there may be an additional increase in the end of the year”, - emphasized the First Deputy Prime Minister.

During the meeting V.I.Semashko focused attention on the economic environment in the country. “There is a strategy developed, which allows to stabilize the situation in the republic by the end of the year. I think that the current condition is occasioned by 3 factors: first - price increase of utilities, second – erroneous monetary policy of the National Bank, third – wages sharp increase last December”. According to Vladimir Semachko, unitary rates of custom duties for oil and gas will favour the stabilization of economy. It is also necessary to attract foreign investors for running joint projects, such as, for example, sheet rolling production. Important is that the growth of wages in organizations and on enterprises should not exceed labour productivity growth.

As First Deputy Prime Minister mentioned, enterprises adapted to the new dollar rate about one month ago. It affected not only production value, but wages too. Regarding to housing and communal services tariffs, V.I.Semashko assured that they won’t be increased.

During the meeting with the steel cord and wire plant №2 employees Vladimir Semachko was asked about transforming BMZ into Joint Stock Company.

-Indeed, this process has started and shall be completed within half a year. First of all, establishing of Joint Stock Company attracts investment. Nowadays BMZ value is $8 billion, - said Deputy Prime Minister.

The second question asked was: “Will the government continue to support housing development?”

-Of course, within this year credit conditions won’t be changed. In the future, preferential credits will first of all be addressed to large families. For other groups conditions will be tougher. In whole the housing development plan remains current priorities in the credit policy.

According to building volumes, the following number was told: in 2011 in the country should have been built 7,2 million square meters of accommodations.

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