Belarus plans to raise $52m loan from China Eximbank to upgrade Orsha Linen Mill
30 December 2015
MINSK (BelTA) – Belarus is planning to raise a preferential consumer loan in the amount of $51,834,700 for 15 years from the Export-Import Bank (Eximbank) of China for the second phase of the project to upgrade Orsha Linen Mill in 2015-2017. This decision is contained in Resolution No.1104 of the Council of Ministers of the Republic of Belarus dated 29 December, BelTA learned from the press service of the Belarusian government.
Finance Minister Vladimir Amarin has been authorized to conduct negotiations on the draft loan agreement between the Government of Belarus and the Eximbank of China and sign the document as the parties reach an agreement. The Finance Ministry has been authorized to make changes and additions to the draft agreement, if necessary.
Earlier it was reported that the second phase of technical retooling will be carried out to ensure the comprehensive upgrade of Orsha Linen Mill. It provides for the modernization of Factory No. 2 and other infrastructure facilities of the mill. These measures will help upgrade the long flax fiber processing capacity by 80%, increase the volume of long flax fiber processing from 4,600 tonnes up to 5,300 tonnes. Labor costs are expected to decrease by 45%, manufacture of value added per worker per year in 2016 will make up $15,100 ($9,000 in 2013). During the first phase of the upgrade project Factory No. 3 was retooled and the production areas of the spinning and weaving preparatory workshops expanded.
Orsha Linen Mill is part of the Belarusian state light industry concern. This textile manufacturer processes flax fibers and manufactures linen fabrics and finished products. The linen mill supplies its products to more than 30 countries around the world, including to the EU member states.