Bellegprom, Zhongyuan to implement 4 projects worth $275 million
12 January 2011
MINSK (BelTA) – The Bellegprom Concern and China Zhongyuan Engineering Corporation (CZEC) signed a memorandum of understanding to implement four investment projects in the light industry worth $275 million, Bellegprom spokeswoman Tatiana Pyshkalo told BelTA.
China Zhongyuan Engineering Corporation will be the general contractor on each project and will perform the entire set of works related to construction and reconstruction, search and selection of equipment and suppliers, supply, installation and commissioning of equipment, staff training.
“Cooperation with Zhongyuan is of a big social and economic importance for Belarus. This will help the domestic light industry make its goods and services more competitive,” Tatiana Pyshkalo said.
The projects will be funded by long-term (20 years) loans to be issued by China Eximbank under the guarantees of the Belarusian government with a fixed interest rate of 3% per annum.
The memorandum provides for the establishment of a worsted fabrics production facility with the annual capacity of 4 million running meters at Kamvol Company in Minsk. Project cost is $114 million.
The Luch footwear production facilities will be redeployed from Minsk downtown. The new facility in the industrial area of the city will produce 3 million pairs per annum. The cost of this project is $41 million.
Another $50 million will be provided to set up a light industry center on the premises of the Minsk Watch Plant (Luch trademark).
In line with the fourth project, a modern fur complex with a fur breeding facility will be created on the basis of the Vitebsk fur factory. Project cost is $70 million.
Bellegprom is a big complex that includes textile, knitting, sewing, leather and footwear, fur and haberdashery subindustries. It accounts for 73% of Belarus’ light goods output and 21% of nonfoods. Bellegprom unites 113 organizations, with the number of industrial enterprises as large as 95. The concern employs around 80,000 people.
China Zhongyuan Engineering Corporation, founded in 1953, is a state enterprise specializing in equipment procurement, projecting and supervision of construction works. The company consists of 15 subsidiary companies and eight business departments.
The Export-Import Bank of China (China Eximbank) was established in 1994. It is owned and controlled by the Chinese government. As an important force in promoting foreign trade and economy and a significant component of the financial system, China Eximbank has been acting as a key channel of policy financing for both Chinese import-and- export of mechanic and electronic products, complete sets of equipment, and high- and new-tech products and undertaking of offshore construction contracts and overseas investment projects by Chinese companies. Meanwhile, the Bank is a major onlending bank of foreign government loans and the only operating bank for Chinese Government Concessional Loan.