MINSK, 23 October (BelTA) - Japan Bank for International Cooperation (JBIC) and Svetlogorsk Khimvolokno signed a loan contract in Minsk on 23 October.
JBIC will allocate Khimvolokno JPY3bn (?24 million) under the investment project on upgrading the polyether textile threads production to increase its capacity to 38,500 tons a year. This is one of the biggest projects on the Khimvolokno development program designed to run for 2006-2011.
The project envisages construction of new capacities to manufacture high-quality polyether textile threads. The equipment will be supplied by Japanese Marubeni Company with which two contracts have been signed. The purchase of the equipment will be financed at 78% with the help of JBIC loan.
Khivolokno is expecting the arrival of the new equipment next year. The investment project will be completed by the end of 2011.
When signing the loan agreement, JBIC Division Manager for Europe, Middle East and Africa Akira Ogawa stated that the project is very important for both the sides. The agreement was concluded amid the global financial crisis; the negotiations were difficult. Belarus provided government guarantees under this important project and the Japanese bank took a decision to partake in financing. Akira Ogawa is confident that this will be the beginning of successful cooperation between the Japanese bank and Belarus. “On our part we will take every effort to develop the bilateral relations,” he stressed. According to him, two or three new Belarusian investment projects in petrochemistry have been submitted to the bank.
An investment project to expand the capacities of the plant producing polyester textile threads is one of the largest in the Khimvolokno development program. The upgrade program will help increase the production of polyester threads to 38,500 tons per year in 2011, up 1.6 times from 2006. The output of polyester threads made up 28,700 tons in 2008 and it is expected to hit 30,000 tons in 2009.
Founded in 1964, Svetlogorsk Khimvolokno is a major Belarusian petrochemical company. It comprises enterprises for manufacturing polyether filaments, man-made fibers, carbon and polymer materials as well as consumer goods. The company employs over 6,000 professionals.
