Capital investment in Gomel oblast up 32% to $1bn in H1
In H1 capital investment in the Gomel oblast was up 32% over the same period last year to more than $1 billion, deputy chairman of the Gomel oblast executive committee Boleslav Pirshtuk told a press conference on July 30.
According to him, almost three fourths of investments go into manufacturing facilities.
All major companies of the oblast have been pursuing investment projects. Thus, the Mozyr oil refinery has completed the construction of catalytic cracking and benzol facilities. This will increase the depth of oil refining and improve the quality of fuel up to the Euro-4 standard, and in the future to Euro-5. The technological upgrade is ongoing, with $300 million to be allocated by 210.
The Belarusian Steel Works is mulling over a project to start the construction of a sheet rolling plant. A tender has been announced. The negotiations are underway with potential investors.
Gomelsteklo plans to commission a new glass production line in 2009. Its capacity will be 780 tonnes a day, or two times as much as the current output. The total cost of the project exceeds $100 million. Two plants to make glass containers, bottles and cans meeting European standards, will be sent live this year. The project is being implemented with the participation of Russian and Austrian investors.
Investment projects featuring foreign capital will be implemented at the three local wood working companies. A medium density fibreboard plant will be constructed; the particle board and veneer manufactures will be upgraded. The total volume of investments in 2008-2009 is estimated at $130 million. In addition, Gomeldrev plans to start the manufacture of prefabricated wooden houses for Scandinavian countries. A large bleached pulp project worth of $300 million will be launched at the Svetlogorsk pulp and paper plant.
Big investment will be funneled into development of the deposits of brown coal and silicate sand. A company from Luxembourg will develop a brown coal deposit. The investments are preliminarily estimated at $2 billion. An Iranian company and Russia’s Itera will be involved in financing the construction of two cement works.
Boleslav Pirshtuk said that this year it is necessary to raise Br120 billon of foreign investment, including Br84 billion of direct investment. “This year we hope investors will take part in serious projects. The sum of direct foreign investment in H1 exceeded $50 million,” he said.
