Lithuanians invest a record sum of money in Belarus

2013-07-10, 17:20
Published in Economy
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This Wednesday in Mogilev, Belarus, a new industrial complex was opened. It cost 325 million litas and it belongs to 'Vakarų medienos grupė' (VMG) and SBA. This is one of the biggest direct Lithuanian investments into a neighbouring country.

'VMG Industry' and SBA 'Mebelain' will produce furniture for 'Ikea' and will export it to the Russian market. It is expected that this investment will create more than 1000 new jobs.

This new industrial complex takes around 22 ha territory. Various raw materials for furniture will be produced here - chipboards, bed details, and storage furniture.

The company is planning that the factory will start working at its full capacity in 2015 and will produce goods of 240 million litas worth. Till the end of this year, the company is planning to increase its number of workers from 700 to 1000. At the moment, the factory employs around 150 workers.

This 'Mebelain' factory cost around 55 million litas to build. A part of the funding was provided by the European Bank for Reconstruction and Development.

The chairman of the VMG board, Sigitas Paulauskas, admitted that to start such a project in Belarus was not easy - the company had to prove that Belarus should allow the company to enter. The plans for investments were started in 2010 with negotiations lasting for half a year. The construction works began in July of 2011.

On Tuesday, one day before an official opening ceremony, the factory was visited by the President of Belarus Alexander Lukashenka. The company representatives indicate that the President was very happy with Lithuanian work.

www.L24.lt

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