Yury Nazarov: The main task of the Miory Metal Rolling Plant is to achieve profitable operation
The Miory Metal Rolling Plant has been in the spotlight since the very first day of construction. This state-of-the-art enterprise produces tinplate of a thickness not manufactured anywhere else in the CIS. The plant in Miory was commissioned in 2020, and in 2021 it was operational, but the business plan developed by the management was not fulfilled. Revenues amounted to about 90 million rubles, which is almost ten times less than planned, and net losses were almost as much. No revenue, accounts frozen: last year the plant accumulated almost $400 million in non-recoverable loans. Since August 2021, the plant has been idle.
— There is no such enterprise in the post-Soviet space; there are similar ones in Russia and Kazakhstan, but their technologies are outdated. Miory has the most modern plant. The President has set the Government a task: to ensure the stable operation of the plant and preserve the workforce. After all, this is 600 jobs – a huge number for a small district center, — emphasized **Deputy Prime Minister Yuri Nazarov**, who came to see firsthand how the package of measures for the socio-economic recovery of the enterprise, adopted in April, is being implemented on site.
The plant was included in the Vitebsk free economic zone, which allowed for minimizing taxes on land and real estate. Preferential tariffs for electricity and gas were established specifically for this enterprise. A special account was opened, into which funds were accumulated from revenue for salary payments, so that those demanding the return of funds could not impose an arrest.
The plant is operational, and there is positive dynamics in production. However, it is impossible for a legal entity burdened with huge debts to conduct economic activities, so a decision was made to load production on a tolling basis. The Government has appointed a management company and provided it with credit resources under its own guarantee for the purchase of raw materials and consumables necessary to start the production process.
As Yuri Nazarov noted, all measures taken are aimed solely at launching the enterprise. Miory Metal Rolling Plant, as a legal entity, with such credit debts, amounting to about 376 million euros, cannot fulfill its obligations. Creditors appealed to the economic court of the Vitebsk region, which on July 12 opened bankruptcy proceedings under the insolvency procedure of the plant, i.e., from this date, a protective period has been introduced for this legal entity.
The plant has taken a number of measures to reduce costs, the management company has resorted to non-standard solutions: the hydrogen station failed – a new one was purchased. A German company stopped access to the software of the main machine due to non-payments – and this problem was solved.
Salaries for employees will be increased from August 1, assured the **crisis manager Igor Oshurkevich**:
— There was a disproportion in salary payments for certain categories of employees. A targeted approach to salary payments will allow it to be increased by 30 percent, but at the same time, the wage fund for the plant will increase by only 16 percent. In June, the average salary at the plant was 1360 rubles; after the reform, it will be approximately 1780 rubles.
In June, the plant worked fully for almost the first time, exceeding the entire volume of tinplate produced in 2021 into supply tinplate to the European Union, but then came sanctions. We had to reorient. Now the main consumers are the Glubokoye and Rogachev condensed milk factories, which use tinplate for packaging their products; there is great potential in Russia, and several contracts have already been signed.
The anti-crisis manager, with the help of the state, continues to take measures to ensure that the plant operates stably and more efficiently.
— By the end of the year, the task is to reach a production of at least 8-9 thousand tons of tinplate per month, and here we can produce 12 thousand tons. For this, the enterprise is provided with raw materials and personnel. The main task of the plant is to achieve profitable operation. Then a decision will be made: whether the plant operates or will undergo rehabilitation, bankruptcy, which we would not want, — summarized Yuri Viktorovich.
— There is no such enterprise in the post-Soviet space; there are similar ones in Russia and Kazakhstan, but their technologies are outdated. Miory has the most modern plant. The President has set the Government a task: to ensure the stable operation of the plant and preserve the workforce. After all, this is 600 jobs – a huge number for a small district center, — emphasized **Deputy Prime Minister Yuri Nazarov**, who came to see firsthand how the package of measures for the socio-economic recovery of the enterprise, adopted in April, is being implemented on site.
The plant was included in the Vitebsk free economic zone, which allowed for minimizing taxes on land and real estate. Preferential tariffs for electricity and gas were established specifically for this enterprise. A special account was opened, into which funds were accumulated from revenue for salary payments, so that those demanding the return of funds could not impose an arrest.
The plant is operational, and there is positive dynamics in production. However, it is impossible for a legal entity burdened with huge debts to conduct economic activities, so a decision was made to load production on a tolling basis. The Government has appointed a management company and provided it with credit resources under its own guarantee for the purchase of raw materials and consumables necessary to start the production process.
As Yuri Nazarov noted, all measures taken are aimed solely at launching the enterprise. Miory Metal Rolling Plant, as a legal entity, with such credit debts, amounting to about 376 million euros, cannot fulfill its obligations. Creditors appealed to the economic court of the Vitebsk region, which on July 12 opened bankruptcy proceedings under the insolvency procedure of the plant, i.e., from this date, a protective period has been introduced for this legal entity.
The plant has taken a number of measures to reduce costs, the management company has resorted to non-standard solutions: the hydrogen station failed – a new one was purchased. A German company stopped access to the software of the main machine due to non-payments – and this problem was solved.
Salaries for employees will be increased from August 1, assured the **crisis manager Igor Oshurkevich**:
— There was a disproportion in salary payments for certain categories of employees. A targeted approach to salary payments will allow it to be increased by 30 percent, but at the same time, the wage fund for the plant will increase by only 16 percent. In June, the average salary at the plant was 1360 rubles; after the reform, it will be approximately 1780 rubles.
In June, the plant worked fully for almost the first time, exceeding the entire volume of tinplate produced in 2021 into supply tinplate to the European Union, but then came sanctions. We had to reorient. Now the main consumers are the Glubokoye and Rogachev condensed milk factories, which use tinplate for packaging their products; there is great potential in Russia, and several contracts have already been signed.
The anti-crisis manager, with the help of the state, continues to take measures to ensure that the plant operates stably and more efficiently.
— By the end of the year, the task is to reach a production of at least 8-9 thousand tons of tinplate per month, and here we can produce 12 thousand tons. For this, the enterprise is provided with raw materials and personnel. The main task of the plant is to achieve profitable operation. Then a decision will be made: whether the plant operates or will undergo rehabilitation, bankruptcy, which we would not want, — summarized Yuri Viktorovich.