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18 May 2017

VICTOR MATIEVICH: "THE GOAL OF MOGOTEX JSC IS TO INCREASE THE PRODUCTION OF READY-MADE PRODUCTS TWICE"

Mogotex JSC passed all the necessary stages of expert evaluation of the government-sponsored program of innovative development of the Republic of Belarus, approved by the Presidential Decree No. 31 of January 31, 2017. The result is the investments from the state in the amount of 75.6 million Belarusian rubles. This was announced during the press conference by Victor Matievich, General Director of “Mogotex”.


Speakers of the press conference (from left to right): Nikolai Efimchik, Chairman of the Concern “Bellegprom”, Victor Matievich, General Director of Mogotex JSC, Galina Emelyanova, Deputy Chairman of the Krasnopolsky District Executive Committee.


The government-sponsored program of innovative development of the Republic of Belarus for 2016-2020 includes 75 projects on development of new production facilities which are critical for the innovative development of the country, and 14 actions on development of the innovation infrastructure of the Republic of Belarus.

The total financing will come to 75.6 million Belarusian rubles (denominated) for Mogotex JSC. Where 37.8 million Belarusian rubles are grants from the innovation fund, and 37.8 million are the company's funds, both own and credit, which Mogotex JSC should invest in the development of the enterprise, according to the terms of the government-sponsored program of innovative development.

"When there are investments - there are innovations, therefore, there is a progress. “Mogotex” received preferential loans in 2008-2009; we increased the volume of production twice, exports and wages increased. We approve that the light industry represented by “Mogotex” can develop," says Victor Matievich, General Director of Mogotex JSC.


Victor Matievich, General Director of Mogotex JSC


The first transfer in the amount of 17.3 million Belarusian rubles is expected in the 2-3 quarter of 2017. “Mogotex” plans to purchase, install and launch new equipment in 2018-2019. By the end of 2020 the company should reach the target figures:

the added value for one worker involved in the output of products is 26 thousand Euro;

export is not less than 80%;

6 times increase of the volume of delivery to non-CIS countries;

at least 38% of the products in the assortment are innovative products.

"The textile industry is the basis on which the light industry develops. Today a number of actions, focused on a very serious technical re-equipment of Belarusian enterprises, are taking place. This will give the almost unlimited opportunities to produce innovative products. The flagship in innovative products is traditionally “Mogotex”," said Nikolai Efimchik, Chairman of the Concern "Bellegprom".


Nikolai Efimchik, Chairman of the Concern "Bellegprom"


Together with the modernization, “Mogotex” is aimed at increasing the percent of ready-made products in the volume of production. Today the company's products are exported to more than 15 countries of the world, including Russia, Kazakhstan, Ukraine, Moldova, Uzbekistan, Lithuania, Germany, Hungary. The development of the new sales markets leads to increasing of the order volume. In order to meet the demand for textile products in the domestic market and abroad, it was decided to develop new efficient productions in the regions of the country.

A decision to join OAO “Shvejnaja firma “Lona” (Kobrin) was made at the meeting of shareholders of Mogotex JSC on March 30, 2017. The new business unit will start working as part of Mogotex JSC in September 2017.

With the opening of the business unit, Mogotex JSC plans to increase the production of ready-made products to at least 40%. The volume of ready-made products amounted 8% of the company’s revenue in 2011 and 23-24% in 2015-2016. The Kobrin business unit of Mogotex JSC will sew complex garments: uniforms and special clothing, overalls and others.

“The world trend today is that production should work a full cycle. Since 2011 we have been gradually increasing the sewing capacity that the company needs. "Mogotex" is interested in producing ready-made products from its fabrics,” said Victor Matievich, General Director of Mogotex JSC. “It is important for us to keep workplaces in the Kobrin business unit, to maintain and increase wage level and to develop production. This is the goal that “Mogotex” sees as the final result.”


It was also decided to open the sewing production of Mogotex JSC in Krasnopolye in March 2017. The new sewing shop will focus on sewing simple special clothes for the whole industrial complex, primarily for the Russian Federation.

The initiative to open the business unit in the small city of Belarus resulted from the Decree of the President of the Republic of Belarus of June 8, 2015, No. 235 "On the socio-economic development of the south-eastern part of the Mogilev region".

"Krasnopolye is a small town in the Mogilev region with a population of about 5,800 people. The opening of the light industry business unit is a new step in the development of the region;it includes new workplaces, training opportunities, growth prospects of household incomes, strengthening attractiveness of the region," said Galina Emelyanova, Deputy Chairman of the Krasnopolsky District Executive Committee.


Galina Emelyanova, Deputy Chairman of the Krasnopolsky District Executive Committee.


The new production involves 20 workplaces with the total number of employees of 25 people. Now the employees recruited on a competitive basis are on probation and adapt to the working conditions.

"We are ready to invest time and money in staff training. Now the employees of "Mogotex" are training the future seamstresses of the Krasnopolsky shop from scratch. A company’s expert is fixed to the group; he or she provides training and explains all details of the job. Before new employees start working, they arenecessarily tested," commented Victor Matievich, General Director of Mogotex JSC.

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