The Belarusian company ZAO PMI Group plans to set up a holding company to make hydraulic products. The information was released by OAO Amkodor Chairman of the Board Alexander Shakutin at the session of the Council for Entrepreneurship Development in Dzerzhinsk, Minsk Oblast on 23 August, BelTA has learned.
The session took place at premises of the private joint-stock company PMI Group, which is an official dealer of OAO Amkodor. The session was chaired by Chairman of the Council for Entrepreneurship Development, Vice Premier of Belarus Piotr Prokopovich. Participants of the session visited the company OOO Saleo, which is an enterprise of ZAO PMI Group.
Alexander Shakutin said: “We would like to set up a holding company in Belarus that would match global trends in the development of the production of hydraulic machines. Its center will be located in Dzerzhinsk”. An investment project worth over $30 million has been launched in the town to start manufacturing hydraulic products. In 2013 as much as $25.5 million will be invested in the project, $4.1 million in 2014, and $450,000 in 2015. According to Alexander Shakutin, the project’s implementation will satisfy Belarus’ demand for hydraulic systems used in special vehicles and tractors. The components may also be exported.
The enterprise uses an old manufacturing wing in Dzerzhinsk. It has been fully renovated. New manufacturing premises have been built. The enterprise OOO Saleo employs 70 people. There are plans to raise the number of workers to 130 in 2014 and to 150 in 2015. The holding company will also have its own foundry to make hydraulics for steering systems. “Thus, in the future all the hydraulic manufacturing divisions will be localized. For now we are buying some of the materials,” said Alexander Shakutin.
He also said that the company intends to suggest “a relevant hydraulics program that involves export to the government”. Now the enterprise already exports hydraulic systems to tractor factories in Uzbekistan and Iran.
The project is being implemented by OAO Amkodor in association with PMI Group (Prommedinvest Group). Alexander Shakutin added that PMI Group comprises 19 enterprises, including six factories such as OOO Saleo.
“The company uses its own funds to implement the hydraulics project. Apart from that, investments to the tune of €100 million have been allocated by Sberbank of Russia via its own daughter enterprise in Serbia,” said Alexander Shakutin. He specified that €100 million is investments only while the cost of the factory is commercial secret.
Speaking about the implementation of the project, Alexander Shakutin said that there are plans to buy assets of three factories using proprietary funds. After that investments of the bank will be tapped. “Tender proposals on purchase will include the cost of property portfolios and obligations of investors – extra €15 million that they will have to invest in developing these factories,” said the OAO Amkodor Chairman of the Board.