Investor Roadmap

Full name of the company

Mogilevkhimvolokno, OJSC (Open Joined-Stock Company)

Primary activity

Open Joint Stock Company Mogilevkhimvolokno is the only large manufacturer of dimethyl terephthalate, PET chips (including bottle grade chips), polyester fibers and yarns in the Republic of Belarus and main supplier of raw materials for light industry - the biggest sector of national economy of the Republic of Belarus.

Products, services description (detailed, indicating CN FEA code)

PET 8200 (3907610000) PET TECHNICAL GRADE (3907690000) Textile grade polyester fiber (5503 20 000 0) Polyester tow (5501200000) Polyester substrate for roofing materials – 5603 13 900, 5603 14 900 0 Spunbonded polyester geotextiles - 5603 13 900, 5603 14 900 0 Polyester web LavsanTech- 5603 93 900 0, 5603 94 900 0 Polyester filling for stuffed toys - 5505 10 300 0 Industrial yarn type HМ - 5402 20 000 9 High-adhesive high-tenacity heat-resistant polyester yarns - 5402 20 000 9 Polyester industrial yarn type М 940 - 5402 20 000 9 Cabled polyester industrial yarn -5402 20 000 9 , 5402 62 000 0 Polyester composite material (3907999000) PET preforms (3923301010) Delivery fire hoses (5909001000) Polyester rope for household applications (6003309000)

Superior body

The Belarusian State Concern for Oil and Chemistry (https://www.belneftekhim.by/en/ )

General reference and analytical information about the company

http://www.khimvolokno.by/en/default.asp

Distribution of shares (by owners)

As of 01.12.2019 OJSC Mogilevkhimvolokno has the shareholders with the following share distribution: State Committee on Property of the Republic of Belarus - 90,5416%; Legal bodies - 9,4130%; Individuals - 0,0454%.

Net profit (net loss), thousand $

Information will be submitted directly to a potential investor

Number of employees as on the month of filling the form, people

Information will be submitted directly to a potential investor.

Average salary as on the month of filling the form, BYN

Information will be submitted directly to a potential investor.

Type of investment project

Investment projects offered for implementation

Total volume of investments, thousand $

20000

Expected input of an investor, thousand $

20000

Project period

2021-2023

Investor participation form

equity investment, new enterprise with a local partner, new enterprise

Project description

The project implementation will include a construction of the Plant for production of non-woven wipes and cloths for industrial and household application (capacity - 5,5 thou tpa). It is supposed to use Viscose and Polyester Fibers as raw materials. The non-woven material to be produced on the line from viscose, polyester or cotton raw materials is suitable for the production of cleaning wipes for hygiene and household use, such as: - manufacture of disposable medical articles; - manufacture of cosmetological tissues; - use in car-care centers as car-wipes for cleaning glasses, mirrors, headlights and passenger compartment from dust and dirt; - cleaning cloth for all fields of industry with exclusive hygienic standards...

The nomenclature of the product to be produced with indication of the CN FEA code

Polyester Hydroentangled Spunlaced Non-woven Fabrics (HS Code 5603 92 900 0)

Volume of investments, thousand $

20000

Annual revenues once fully operational (without VAT, thousand $)

39108

Dymanic pay-back period, yrs

10.3

NPV, thousand $

1 582

IRR, %

14.5

Potential customer

Due to the lack of domestic producers of spunlace fabric the Republic of Belarus has to import spunlaced fabrics. Spunlace is supplied to Belarus by Russia, Poland, Тurkey, China. Belarusan consumers of spunlaced fabric: LLC BelEmsa, Моgilev; СООО BelGreenline, Grodno and others. Russian consumers of spunlace web: LLC Аvangard, LLC Grand А.В., LLC ООО Cotton Club and others. Ukranian consumers of spunlaced fabric: Corporation Biosphera, LLC Delita Beauty and others. At the same time there is no domestic manufacturer of Spunlace in Ukraine. Spunlace is imported to the domestic market of Ukraine from China, Тurkey, Poland, Russia, Izrael.

Key benefits of the project

Mogilevkhimvolokno OJSC has all the necessary potential. There are sufficient raw materials and energy resources, transport infrastructure, and qualified personnel. The advantages in the production activities of OJSC Mogilevkhimvolokolno are as follows: • manufacture of the products of International Standards; • highly qualified personnel; • complete production cycle; • wide range of output products of various applications; • the ability to meet specific consumer’s requirements; • availability of an active distribution network abroad (the Russian Federation, EU, Ukraine) • favourable geographic location (logistic advantage on the principal markets (the Russian Federation, EU, Ukraine) before Asian competitors; • free trade within the Customs Union

Level of project development: feasibility study, business-plan (indicating the date of development), pre-investment study, design estimate documentation, construction work in progress etc.

Pre-investment Stage