Belarusian leather heads towards China and India. Tatyana Lugina, president of Bellegprom state consortium, announced the plans set by MLPA (Minsk Leather Production Association), which is about to sell its hides in the East area.
The scenario of the decision they made public is a network of relations between institutions and manufacturing companies. They also engage Bellegprom, a manifold industrial complex actively working in several fields, including the leather-tanning one. The Belarusian Ministry of Light Industry, alongside the Minsk Leather Production Association, founded it in 1992, aiming to create “the most innovative tannery in the Republic of Belarus”. Based on an Italian project, it serves upholstery, footwear and leather goods.
Stocks to sell out and efficiency bonuses
Lugina visited MLPA to get to know the working processes and assess the situation with regard to prospective investments. She went over there together with Prime Minister Sergei Rumas. They primarily realized that stocks of hides and skins keep increasing. “We need to pinpoint and target new markets that may be willing to buy such stocks. At present, we are focusing on China and India because other markets might not be able to take such large volumes – pointed out Tatyana Lugina while speaking to eng.belta.by, an information portal –. We should foster and boost MLPA sales and marketing department. In the tannery, there is a shortage of professionals in the field. We should motivate employees by giving them efficiency bonuses. If sales agents hit the target or even go beyond sales goals, they should get a more rewarding pay”.
In December 2016, Minsk Leather Production Association started a modernization process, as they took advantage of financial support provided by government and company. In fact, the government allocated around 11.5 million euros, while MLPA budgeted 2.6 million euros; in addition, they could also rely on an 8.9-million-euro credit. The aim is to improve product quality and augment the tannery manufacturing capacity. “Our investment plan proved to be effective – carried on Lugina –. MLPA have started making competitive products. Yet, rate of interest applied to the loan, granted to carry out such investment plan, is rather high (9%): we shall have to work it out”.
Pictures taken from eng.belta.by