OREANDA-NEWS. Belarus has turned to China for a supplementary tied credit in the amount of USD 35 million to build a bleached sulphate pulp factory with a capacity of 400,000 tonnes per year at OAO Svetlogorsk Pulp and Paper Factory (Gomel Region). Belarusian Prime Minister Mikhail Myasnikovich voiced the request at a meeting with Chairman of SINOMACH Corporation Ren Hongbin.

Myasnikovich emphasized that this project is important and useful for the country. Its cost is estimated at more than USD 800 million. It is being implemented by CAMCE, one of the subsidiaries of SINOMACH. “It would be good to extend the investment project and build a viscose pulp facility in Svetlogorsk," the premier said. This will require another USD 35 million, he noted. Belarus plans to take out a tied loan from its Asian partner for this project.

As reported by the press-service of the Belarusian government, on January 20 the parties discussed the progress in the project to build the bleached sulphate pulp plant with emphasis on the timeline. Mikhail Myasnikovich asked the Chinese partners to stick to the schedule (in accordance with the plans the plant is to come on stream at the end of 2015). “If the start is delayed, then there might be some difficulties with the payment of interest on the loan,” the premier said. He explained that the business plan defines the project payback periods and they are dependent on the timely schedule. Problems with the payments may raise doubts as to the solvency of Belarus as a borrower. The Government of Belarus values its reputation, said Myasnikovich.

The premier drew special attention to the project in the chemical industry, which will be implemented by OAO Mogilevkhimvolokno, China Engineering Corporation CAMCE. The parties will team up to build the installation of continuous polycondensation of polyethylene terephthalate with direct fiber formation and production of technical yarns. Upon completion of this project, the plant's capacity will be increased 1.5 times up to 200,000 tonnes of polyester a year, energy costs will drop more than 2.5 times.

Myasnikovich emphasized the fact that SINOMACH companies are building a lot of facilities in Belarus.

China National Machinery Industry Corporation (also known as Sinomach) is one of the largest state-owned corporations in China. SINOMACH is one of China's leading designers and manufacturers of machine-building equipment.

At present SINOMACH subsidiaries are engaged in a number of major projects in Belarus, including the construction of the Chinese-Belarusian Industrial Park (CAMCE Corporation), the construction of a bleached sulphate pulp plant (CAMCE and Svetlogorsk Pulp and Board Plant), the construction of the Vitebsk hydroelectric power plant (CNEEC Corporation and Vitebskenergo).