Investor Roadmap

Full name of the company

Mogilevkhimvolokno, OJSC (Open Joined-Stock Company)

Primary activity

JSC 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

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/

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 $

26500

Expected input of an investor, thousand $

26500

Project period

2021-2025

Investor participation form

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

Project description

The project implementation will include construction, start-up and commissioning of two processing lines for production of needlepunched non-woven fabrics with total capacity of 12 000 tpa. It is supposed to use Viscose and Polyester Fibers as raw materials. Within the framework of the project it is planned to produce new types of non-wovens, such as: - needle-punched polyester fabric for the automotive industry; - filtering polyester fabric including hardly inflammable fabric - for use in various industries; - polyester fabric for footwear industry; - geotextiles for transport construction; - polyester fabric for building industry - technical felts; - backing for linoleum, carpets, synthetic leather

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

Polyester Needle-punched Non-woven Fabrics Lavsan-GEO, Lavsan Tech-LK ((HS Code 5603 93 900 0 (density over 70 g/m2, but not more than 150 g/m2), 5603 94 900 0 (density over 150 g/m2)

Volume of investments, thousand $

26500

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

29315

Dymanic pay-back period, yrs

10.8

NPV, thousand $

3 557,3

IRR, %

14.7

Potential customer

Principal consumers of our non-woven geotextiles (Lavsan GEO, in particular) are Companies from the Republic of Belarus (AC «Belavtodor» Holding) and the Russian Federation. Principal consumer of Lavsan-TEX-LK fabrics in the Republic of Belarus is OJSC Vitebskiye Kovry. JSC Моgilevkhimvolokno is the only manufacturer of linoleum backing in the Republic of Belarus. In the Russian Federation the principal consumers of non-wovens type ЛК (LK) are big producers of linoleum (JSC Таrkett, LLC Коmitex Lin and others. In the Russian Federation there are some carpet and tufting manufacturers, including Duna Taft LLC (Kaliningrad), Company Kalinka (Kaliningrad) and others.

Key benefits of the project

The implementation of the project will allow: 1. to expand the assortment of our own raw materials used for the production of non-woven materials due to the design features of the equipment installed at the complete lines. 2. to reduce the cost of production out of the following cost items by: 2.1 increasing production rate 2.2 reducing the norms for consumption of raw materials for manufacture of the production unit, for this purpose the Line will be equipped with Surface Density Control System 2.3 increasing the share of lower quality fibers in fiber mixed compositions 3. to expand the range of products and to obtain competitive products not only in terms of quality, but also in price. 4. to improve the output quality

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

Avaliability of land plot for project implementation

Avaliability of land for project realization