from 11.04.2016

Andrei Kobyakov made working trip to the Gomel region

Belarus Prime Minister Andrei Kobyakov April 11 made working trip to the Gomel region.

First Belarusian head of government visited JSC "Belarusian Metallurgical Plant - the managing company of the holding company." Belarusian Metallurgical Company ". He was informed on the results of the comprehensive modernization of steel production and implementation of the investment project on organization of production of long products. Also Andrei Kobyakov was informed on the prospects of development of the enterprise.

According to Andrei Kobyakov, the Belarusian Steel Works has every chance of getting out of the complicated situation in the metallurgical industry stronger.  Andrei Kobyakov said: “At present a large number of metallurgical companies are having a hard time and not only in the Russian Federation. In essence they are fighting for survival. However, we are confident that BMZ will emerge stronger out of the complicated situation.”

The completed modernization of the company will allow turning out ready-made products without intermediate ones. The products will sell well both to Belarusian mechanical engineering companies and on foreign markets — for instance, to such large mechanical engineering corporations as Mercedes and BMW. The Prime Minister praised the advanced technological standards of the manufacturing division. “Yet it is necessary to give more polish to the economic component. We expect BMZ to become a flagship of the Belarusian production sector,” added Andrei Kobyakov.

JSC BMZ Director General Anatoly Savenok noted that in 2011-2015 the company’s development was primarily focused on technical and technological projects aimed at increasing the overall output, increasing the smelting and casting of steel up to 3 million tonnes per annum in addition to reducing the prime costs and the imported component of the merchandise. In 2015 BMZ managed to reduce the prime cost of merchandise by employing various means by $97 million.

The Prime Minister also visited JSC "Belfa", where he got acquainted with the results of the enterprise activity and the prospects for further development. After that, Andrei Kobyakov visited JSC "Bobovsky". There he was informed about the progress of spring field work in 2016 in the Gomel region.

In an interview with reporters, Prime Minister noted that the majority of Belarusian enterprises have sufficient internal reserves for developing their business, reducing prime costs, and reaching breakeven operation. Andrei Kobyakov said: “I am confident that most of the enterprises complaining about the difficult situation and the lack of financial assets have huge internal reserves that they can tap into to reduce costs and reach breakeven operation. Later on, if they need modernization, if they need assistance with exploring new target markets the government is ready to help them. But we will help only those, who truly want to work.”

As an example of effective utilization of internal reserves the Prime Minister mentioned Belarusian Steel Works. In Q1 2016 the company reduced costs by 27% by cutting down the amount of money spent on buying raw materials and by spending less on energy resources. Speaking about BelFA, Andrei Kobyakov noted that the company has been working hard to reduce costs, with the costs down by about 13% in Q1 2016. The Prime Minister was pleased with the progress of the spring sowing campaign in the region where the sowing of early spring crops has virtually ended. “If the region’s available fuel and fertilizer supplies are spent wisely, it should be enough to get a decent harvest,” he said.

“Judging by what I’ve seen I can only make one conclusion: problems can be and should be resolved using one’s own assets. Moreover, the assets are available. Hoping for outside assistance is pointless,” stated Andrei Kobyakov.

Also, the Belarusian head of Government commented the President Decree №137 "On improving the pension." According to Andrei Kobyakov, the increase in the retirement age will not entail a shortage of jobs. "The gradual increase in the retirement age would create preconditions for the fact that the number of employees in the labor market will be increased only in 2017 we need about 18 thousand additional jobs task of the head of state. To grow at 50 thousand new jobs therefore the increase in the pension age does not threaten jobs deficit ", - said Andrei Kobyakov.

The increase in the number of employees in the labor market will contribute to an increase in gross domestic product. In addition, raising the retirement age will guarantee to maintain a ratio of average old-age pension and the average wage at the level of 40%. "Recently, it's a given retirement age unchanged from year to year could harder", - stated the Prime Minister.


Council of Ministers of the Republic of Belarus