On 24 September, while touring Minsk Bearing Plant, President of Belarus Alexander Lukashenko said he wanted a thorough overhaul and modernisation of this enterprise.

This plant is one of the biggest companies of Belarus’ mechanical engineering industry, the main producer of bearings in Belarus and across the CIS. The plant was established in 1948 and jointstockisized in 1999. It incorporates nine production shops and seven auxiliary shops and employs over 4,000 people.

Around 65 per cent of the companies products are exported; a large portion of them are exported as part of the vehicles manufactured by MAZ, MTZ, BelAZ, Gomselmash, Amkodor, and other companies. Therefore, changes in international market trends have their influence on the company’s output.

Minsk Bearing Plant has been granted state financial assistance many times (for instance, in 2008 in the amount of Br26 billion).

But the company is still in a difficult situation: fixed assets are 97.8 per cent worn out, production declined by a half in January-August 2009, the stocks of unsold products rose 5.8 times, export shrank 65 per cent.

After touring the production facilities, the President criticised harshly the present condition of the plant. ‘There should be no such plants. Who would invest money in such a place?’ said Alexander Lukashenko pointing to the untidiness and state of neglect at the company. It is not until the appearance of the place is improved that it will possible to talk about any financial support from the state.

The Head of State ordered the Government, the Ministry of Industry and the management of the plant to come up with proposals regarding modernisation of Minsk Bearing Plant. A business plan is to be prepared in the near future and sources of financing need to be identified. The latter may be foreign loans with the state acting as a guarantor and possibly covering the related interest payments. Another way here may be the granting of subsidies from the national budget to the company. Then a corresponding draft decree is to be prepared and submitted for consideration of the Head of State.

The modernisation should start as soon as in 2010 and be completed by 2013 which will enable the company to reach a threefold rise in production by then.