Information memorandum
Full name of organization: Open Joint Stock Company "SvetlogorskKhimvolokno"
Abbreviated name: OJSC "SvetlogorskKhimvolokno"
Legal address: 247400, Republic of Belarus, Gomel reg., Svetlogorsk, st. Zavodskaya, 5
Website address: www.sohim.by
Information on state registration: the company has been registered by Svetlogorsk executive
committee of the Gomel regional executive committee dd. 10.01.2012 in the Unified State
Register of legal entities and individual entrepreneurs with the registration number 400031289
(Certificate number KO 0071999)
Head: CEO Kostyukevich Vasily
Chief Accountant: Rashuk Tatiana
Telephone of reception: +375 2342 7-00-77. Fax +375 2342 2-88-00.
E-mail: sohim@sohim.by or oprg@sohim.by
I. General information about the company
History of the company
The history of the company began in 1964 with the commissioning of the first cord production
facilities of the artificial fiber plant (design capacity - 35.5 thousand tons of cord per year)
Key Milestones:
1984 - Commissioning of a polyester textile yarn plant (design capacity - 23.53 tons per
year);
1989 - Commissioning of Phase 1 of carbon materials production facilities, mastered a
production of carbon filled thermoplastics and thermosets, carbon fiber sorbents;
1993 - Organization of production of bags made of film polypropylene yarn with a
capacity of 10 million pieces per year;
1995 - started a production of new nonwoven material "Spunbond" from polypropylene
with a capacity of 2.96 thousand tons per year;
2003-2004 - Reconstruction of the polyester textile yarn plant at the expense of a credit
from a Kuwait Fund for Arab Economic development. During 2009-2012, the reconstruction of
the polyester textile yarns plant was completed. New process equipment (spinning machines and
texturing machines) were installed using a credit of Japan Bank for International Cooperation,
attracted under the guarantee of the Government of the Republic of Belarus.
2005-2011 - Within a framework of a Program of long-term development of the company
several investment projects were realized and allowed: to develop new types of polyester textile
yarn (with KDK effect, fancy, "trilobal" and others) and new yarn dyeing technologies, to
upgrade preparation scheme of raw materials (PET chips), to ensure full processing of fiber
waste and to improve quality and competitiveness of products.
1
2008 - Commissioning of facilities for production of soft packaging: soft containers of
"big bag" type and polypropylene bags of box type.
2009 - Completion of a project on the organization of production of new generation nonwoven materials made of polypropylene continuous filaments by extrusion and using thermo- or
hydro-bonding processes (SpunBel, AquaSpun).
2011 – 1) the 2nd stage of the investment project "Reconstruction of Nonwovens
workshop" was completed. Commissioning of the facility allowed increasing the production of
nonwovens AquaSpun with density up to 250 g/m2.
2) The investment project "Expansion of production of soft polypropylene
package" was realized. The production of soft polymer containers "big bag" type increased 4
times (from 200.000 to 800.000 pcs. per year), the production of polypropylene packaging
increased 3 times (from 3.5 mln. m2 to 11 mln. m2 per year).
2012 – The investment project “Production capacity increasing of Polyester Textile Yarns
Plant up to 38.500 ton per year of polyester textile yarns (1st and 2nd start complexes)” was
completed. The park of equipment of the Spinning Workshop was completely renewed, and
equipment of the Textile Workshop was 80 per cent renewed.
2013 – As a result of realization of the investment project "Production of hay baler twine
from polymer materials waste" at Polyester Textile Yarns Plant, the production of a new product
was organized - Hay baler twine on the basis of wastes of polyester textile yarn production and
recycled polypropylene re-granulate. The equipment allows to process around 1.7 thousand tons
of fiber waste of polyester production and produce 1.5 thousand tons.
At present OJSC "SvetlogorskKhimvolokno" is the largest enterprise of chemical
industry of the Republic of Belarus.
In accordance with the Decision of the Council of Ministers of the Republic of Belarus of
March 21st, 2011 № 348 “On approval of the Plan of privatization of legal entities owned by the
Republic of Belarus for the period of 2011-2013 and Plan of reorganization of the republican
unitary enterprises into the open joint stock companies for the period of 2011-2013” the
Republican Unitary Enterprise "SvetlogorskKhimvolokno" was reorganized into OJSC
"SvetlogorskKhimvolokno" in January 2012.
As of January 1, 2015 the authorized capital of OJSC "SvetlogorskKhimvolokno" is
686 614 500 000 rubles and is divided into 6,866,145 common (ordinary) shares with a nominal
value of 100 000 rubles each. In the authorized capital of OJSC "SvetlogorskKhimvolokno" the
state's share is 100 percent.
OJSC "SvetlogorskKhimvolokno" is a resident of FEZ "Gomel-Raton" till December 31,
2019.
Structure of OJSC "SvetlogorskKhimvolokno"
OJSC "SvetlogorskKhimvolokno" currently includes:
Polyester textile yarn plant (hereinafter referred to as PTYP),
Artificial fiber plant (hereinafter referred to as AFP),
Main activity: production of artificial and synthetic fibers.
In total revenue the share of this type of activity for the year 2014 amounted to 47,4%.
2
Capacities of the company in 2014
Year of
commissioning
Capacity utilization
Polyester textile yarn
1984-1985
90,3 %
Carbon fiber materials
1990-1992
76,0 %
Nonwoven material SpunBel (old plant)
1994
99,9 %
SpunBel, AquaSpun (new plant)
2009
98,8 %
Polypropylene film yarn
1995-1999
84,6 %
Arselon yarns and fibers
1977-1986
97,6 %
Name
Advantages of the company:
- Availability of production and engineering infrastructure;
- Availability of developed transport infrastructure for delivery of raw materials and shipment of
products;
- Established relations with suppliers and consumers;
- High level of qualification of engineers, technicians and technological personnel;
- Quality of OJSC "SvetlogorskKhimvolokno" products has been certified with ISO 9001 2001.
Licenses, patents, certificates
OJSC "SvetlogorskKhimvolokno" has 10 licenses 3 certificates for inventions, 16
trademarks, 12 patents for useful models:
All products manufactured by OJSC "SvetlogorskKhimvolokno" which are subject to
mandatory conformity certification, have conformity certificates or declaration of conformity
duly registered in the established order.
Declarations of conformity with technical regulations TR 2009/013 / BY for material
SpunBel IV, laminated material SpunBel and TR 2010/014 / BY into liquid nitrogen and sulfur
fertilizers have been registered in accordance with the requirements of the National confirmation
of conformity system;
The products ’accordance with the technical regulations’ requirement of the Customs
Union is certified by 15 Declarations of Conformity (for manufactured packaging – with
Requirements TR TC 005/2011, light industry goods – with TR NC 017/2011).
OJSC "SvetlogorskHimvolokno" has international certificates "Oeko-Tex" for polyester
textile filament yarns, for polypropylene nonwovens SpunBel and AquaSpun.
At consumers’ request a voluntary certification of soft polypropylene containers
isperformed:
II. Financial indicators of business activity of the company*
2012
2013
2014
Net asset value, million BYR
1 946 400
2 308 029
2 188 972
Revenue from sales of products, works and services,
million BYR
1 537 406
1 588 568
1 704 455
Indicator
3
2012
2013
2014
3 500
7 336
56 909
5 116
6 746
5 348
2
46
84
0,2
0,5
3,6
Receivables*, million BYR
98 664
85 178
108 641
Payables *, million BYR
116 115
81 965
93 050
Average salary, million BYR
4 104,2
5 035,9
5 989,0
Indicator
Profit from sales of products, works and services,
million BYR
Profit (Loss) before taxes (p.160 of the Profit and Loss
Statement), million BYR
Net profit, million BYR
Profitability of sold products, works and services, %
* Accounts receivable and payable are shown as of 01.01.2013, 01.01.2014, 01.01.2015.
III. Extended nomenclature of products produced
Nomenclature of major products produced by OJSC "SvetlogorskKhimvolokno" includes
polyester textile yarns, nonwovens, carbon materials, Arselon products, polyethylene and
polypropylene products, knitted fabrics, as well as a wide range of consumer goods.
Product name
Unit
2011
2012
2013
2014
Polyester yarn
t
31 269
38 175
36 984
33 241
Yarn for cord and technical goods
t
405
89
87
68
thousand
m2
998
524
10
2
Arselon yarn
t
160
145
231
283
Polypropylene film yarn
t
5 107
5 048
4 771
4 375
Polypropylene twine
t
1 411
1 151
1 007
674,5
14 587
14 655
15 543
14 638
2 187
3 001
3 105
3 056
Cord fabric
Polypropylene bags
SpunBel (old plant)
thousand
pcs.
t
SpunBel, AquaSpun (new plant)
t
4 945
7 406
8 166
9 019
Polyethylene film
t
1 759
1 463
1 127
1 145
Carbon materials
t
87
118
120
143
4
IV. Investment activity.
Completed projects from 2009 to 2014.
Increase of production capacity of Polyester Textile Yarn Plant.
As a result of the project realization due to the new high-performance equipment a
modern industrial and technological base for production of high quality competitive products has
been created. The production capacities were increased, the equipment park of a spinning
workshop and 80% of textile workshops of the plant were fully renovated.
Reconstruction of nonwovens workshop
As a result of the project realization the company mastered a production of modern, hightech polypropylene nonwoven materials SpunBel and AquaSpun produced by thermal and
hydro-bonding methods, respectively.
Increase in soft polypropylene package production
A modern, high-tech and cost-effective production of soft polypropylene packaging has
been created.
Within the framework of the project the company obtained extrusion, weaving, sewing
and other equipment on which box type valve bags, flat polypropylene bags, "Big Bag"
containers, wagon liners, polypropylene and film yarns, fabrics and twine are manufactured.
Expansion of carbon fiber materials production
The project realization enabled the company to meet more fully the demand of consumers
in carbon fiber materials by increasing the production capacity up to 360 tons per year.
Hay baler twine production from waste polymers
Production of a new product - hay baler twine on the basis of production waste of
polyester textile yarn and primary granulate or polypropylene regranulate has been organized for
selling, mainly in the domestic market.
The installed equipment enables to process 1,700 tons per year of fiber waste of polyester
yarn production. The planned annual production of twine from waste polymers is 2000 tons.
Development strategy
The main objective of the development strategies of the enterprise in 2016 - 2020 is to
increase the efficiency of production and competitiveness of the products of
"SvetlogorskKhimvolokno" based on the use of advanced technologies and equipment.
The main areas of strategic development of OJSC "SvetlogorskHimvolokno" in the
period up to year 2020 include:
- The development of high technological and science-based productions: nonwovens;
carbon fiber materials; viscose staple fiber;
- Renovation of production facilities of the existing production on the basis of energysaving technologies;
- Increasing output and expanding the product assortment, increasing its competitiveness
in accordance with international standards,
- Development of new products (duplicated nonwoven material, new types of carbon
fiber materials and nonwoven materials, polyolefin film), including import substitution based on
domestic raw materials (viscose staple fiber);
- The development of technology and production of textile filament yarns with special
properties and different polymer composition on the production base of PTFP (production of
5
non-combustible yarns, yarns with a profiled cross-section of the filament (hollow, hygroscopic),
microfilament yarns, air textured yarns, polyamide textured yarns from POY polyamide);
- Participation in R & D aimed at developing technologies and pilot plants that allow to
start manufacturing of high-value-added products competitive in world markets.
The objectives of the Strategy include:
 modernization, renovation and expansion of existing production facilities,
 organization and creation of new high-tech, including import substitution, production;
 output with special properties;
 improving the efficiency of production and sales of products.
The company’s development strategy implies:
 projects for the organization and creation of new high-tech, including import substitution,
production;
 Implementation of fast-paying back investment projects with a small volume of
investments aimed at improving technological processes and deepening of existing
product;
 creating conditions for the stable operation of the company (establishment of competitive
prices for intraindustry raw materials and energy resources);
 finding a strategic investor.
OJSC "SvetlogorskKhimvolokno" is actively seeking a strategic investor interested in
privatization of OJSC "SvetlogorskKhimvolokno" and ready to offer other development patterns.
As part of the development of this issue summaries of investment projects were submitted
to the company "Belneftekhim Shanghai Trading";
the market value of OJSC "SvetlogorskKhmvolokno" is determined as of 01.09.2013;
letters were sent to the "The National Agency of Investment and Privatization", Minsk,
and the Ministry of Foreign Affairs – with the request for an assistance to attract investors
interested in buying shares in the company;
investment proposals (information memorandum, a presentation) are prepared to study
the issue of attracting Chinese companies to privatization and the development of OJSC
"SvetlogorskKhmvolokno" under the terms of sale to the investor in the first phase of 25% plus
one share of the Company with an investment in its development with the further possibility of
increasing the investor's share in the charter Company funds;
OJSC "SvetlogorskKhmvolokno" cooperates with OJSC "RT-Khimcomposit" (Russian
Federation) on the possibility to participate in the implementation of the Programme of the
Union State and the privatization of OJSC "SvetlogorskKhmvolokno";
negotiations with Italian companies “Sinterama S.pa” and “Noyfil”, and Spanish
company “Antex” were held;
concrete proposals on options for cooperation in the future projects of OJSC
"SvetlogorskKhmvolokno" were sent to the Turkish company «ARMET DEMIR CELIK ve
MADENCILIK TEKSTIL SANAYI ve TICARET LIMITED SIRKETI», the Russian company
"Sibur Holding".
The list of potential investors to which OJSC "SvetlogorskKhimvolokno" is in
correspondence and regular negotiations include Chinese companies: OJSC "The Chinese
Engineering company CAMC (CAMCE), SPTDC, ChinaTexmatech, concern CHTC, CTIEI,
«CITIC construction Co., LTD», Russian companies "Sibur Holding", OJSC "RTKhimcomposit".
meetings and talks with representatives of the Taiwan Textile Research Institute of the
Republic of China Taiwan, Taipei, are regularly held for the purpose of further mutually
beneficial cooperation in determining the areas of business correspondence in the field of
production of functional synthetic fibers and textiles.
6
OJSC "SvetlogorskKhimvolokno" is on the list for 2015 works on sale at auction and at a
competitive bidding of shares belonging to the Republic of Belarus (shares in the authorized
capital) of companies, posted on the website of State Property Committee of Belarus
http://www.gki.gov.by / auction / auinf / auishares /. Terms of Sale: providing by the investor a
plan for the future development of the company and ensuring its implementation.
In the years 2016-2020 the investment activity of OJSC "SvetlogorskKhimvolokno" is aimed at
the implementation of the following investment projects:
1. “Organization of production of duplicated (laminated) nonwoven material” (implementation
period - 2011-2016).
2. “Reconstruction of Dyeing workshop of Polyester Textile Yarn Plant” (implementation period
- 2011-2016.).
3. “Expansion of the range of carbon fiber materials” (implementation period - 2012-2016.),
including:
3.1. Organization of pilot production of ground (cut) carbon fibers of the optimal fractional
composition for filling PTFE composites;
3.2. Organization of pilot production to obtain carbon-carbon multifunctional materials.
4. ”Organization of production of air textured yarns at Polyester Textile Yarn Plant”
(implementation period - 2015-2016).
5. “Expansion of production of nonwovens for construction application” (implementation period
- 2015-2017).
6. “Organization of production of polyolefin film” (implementation period - 2016-2018).
7. “Organization of production of viscose staple fiber” (implementation period - 2015-2019).
Information about the projects planned to be realized
Organization of production of duplicated (laminated) nonwoven material
The project is implemented in order to organize the production of a new type of nonwoven polypropylene material, duplicated with breathable polyethylene film.
The project is aimed at deepening of processing of the PP nonwovens SpunBel and
AquaSpun produced at the company, and value addition.
The project envisages the purchase of a laminating plant for bonding the nonwoven
material SpunBel and AquaSpun with a membrane material.
The planned production capacity - 3000 tons per year.
A business plan and an architectural design for the project have been developed.
Production of duplicated materials has been included in the Register of high-tech industries and
enterprises of the Republic of Belarus.
Currently, a contract for the purchase of equipment has been signed with the winner of
the tender, and the equipment is in manufacturing.
The commissioning of the plant is scheduled for March 2016.
Reconstruction of a dyeing workshop of Polyester Textile Yarn Plant
The objective of the project - improving production efficiency of dyed polyester yarn and
improving product quality by replacing of outdated equipment.
The project provides for the replacement of 4 existing dyeing machines with new ones,
introduction of modern systems for dosing and feeding of textile auxiliaries and dyestuff, and
yarn dyeing and drying process control.
The planned dyeing production capacity - 3500 tons per year.
A business plan and an architectural design for the project have been developed.
7
Dyeing of polyester textile yarns has been included in the Register of high-tech industries
and enterprises of the Republic of Belarus.
Currently, a contract for the purchase of equipment has been signed with the winner of
the tender, and the equipment is in manufacturing.
The commissioning of the facility is scheduled for February 2016.
Expansion of the range of carbon fiber materials
The objective of the project - development of new products, deepening of processing of
carbon fiber materials.
The composition of the project:
organization of pilot production of ground (cut) carbon fibers of the optimal fractional
composition for filling PTFE composites;
organization of pilot production to obtain carbon-carbon multifunctional materials.
Works on the expansion of the range of carbon fiber materials are carried out within the
framework of the Union State program "Development of innovative technologies and equipment
for the production of competitive composite materials, matrices and reinforcements for year
2012-2016" under the code "Compomat."
Organization of production of air textured yarns at Polyester Textile Yarn Plant
The objective of the project is to increase production efficiency and expand the range of
polyester filament yarns through the development of new products; increase in the production of
the most profitable types of polyester textile yarns.
Air textured polyester yarn can be produced gray, dope dyed and surface dyed in a wide
range of colors and with various special additives (anti-bacterial, non-combustible, bleaching,
anti-static).
The possibility to organize the production of air textured polyester textile yarns is ensured
by the availability of production facilities, separate technological equipment and own raw
material base.
The essence of the project is in purchasing of air texturing machine that will enable
producing air textured polyester yarn of linear density in the range from 38 to 200 tex.
Production capacity: 750 tons per year.
Marketing studies of product markets were carried out, technical marketing of the
equipment was held. The substantiation of the investment in the construction of the facility has
been developed.
Expansion of production of nonwovens for construction application
The objective of the project is to increase production of nonwovens for construction
application to be used in the construction of buildings, roads, railways, hydraulic facilities.
The essence of the project is in purchasing of plant for the production of nonwovens for
construction application.
Production capacity: 7 thous.tons.
The development of capacities is planned to be effected step-by-step over 3 years, taking
into account the time for development of samples, pilot batches and colors, testing them on the
consumers’ production facilities.
Currently marketing research of raw materials, products, equipment and technology
markets are carried out.
Organization of production of polyolefin film
8
With the development of the production of duplicated materials the project on
organization of the production of polyolefin membrane can be considered as an event aimed at
increasing the added value and efficiency of the production of nonwovens and replacement of
raw materials purchased by imports.
The objective of the project - development of new products, deepening of processing of
the company’s products
The composition of the project: the installation for the production of breathable
polyolefin film for the manufacture of duplicated (laminated) fabrics.
Planned production capacity: 5 thousand tons per year. Currently marketing research of
raw materials, products, equipment and technology markets are carried out.
Organization of Viscose Staple Fiber production.
The idea of the project – organization of viscose staple fiber production at the newly-built
and abandoned production areas of the Artificial Fiber Plant.
The objective of the project - ensuring the positive dynamics of economic development of
the enterprise as a whole due to the organization of production of a new type of viscose
production.
Production capacity: 80,000 tons per year.
The finished product - viscose staple fiber raw white, and dope dyed, bright and dull
with nominal linear density 0,1–0,6 tex and cutting length 32–120 mm.
The preconditions for organization of viscose staple fiber production based on the
facilities of OJSC "SvetlogorskKhimvolokno" are as follows:
•
Excess of demand over production to the volume of its production (the ratio of 6 % to
2.8 - 3 per cent).
• Manufacturing process of viscose staple fiber production is similar to that of viscose
industrial yarns;
• The possibility to use cellulose by OJSC “Svetlogorsk pulp-and-paper mill” as a raw
material;
• Availability of suitable and non-operating process equipment;
• The absence of producers of similar products in CIS markets;
• Proximity of the major marketing outlets;
• Availability of production and engineering infrastructure;
• Availability of developed transport infrastructure to deliver raw materials and ship the
finished products;
• Specialists and workers’ high skill level.
Implementation of the project will enable to organize in the Republic of Belarus a flow
chart of intensive processing of wood, starting from pulp production at OJSC"Svetlogorsk PPM"
up to the production of garments and knitwear by textile industry.
III. Structure of working personnel as of 01.01.2015:
4105
265
3983
1914
Total number of employees:
- Number of administrative staff
- Number of production staff
including number of main workers
9
IV. Structure of sales:
Structure (%)
2012
2013
2014
Domestic market
33,6
32,1
28,1
External market
66,4
67,9
71,9
Total
100
100
100
The main markets for products selling are Russia, Ukraine, Poland, Slovakia, Germany, Italy,
France, Romania and Baltic countries.
V. Information on land plots in use.
The total area of the production area - 184.6 hectares.
VI. Information on capital structures (buildings, structures, isolated rooms).
467 real estate objects (buildings, isolated premises) are on the balance sheet of OJSC
"SvetlogorskKhimvolokno". Title documents are available for all real estate objects.
VII. Information about the machines and equipment
Manufacturing activities of the company is characterized by technical potential, which is
represented by the equipment of main and auxiliary productions.
All the equipment is in good technical condition, equipped with facilities of proper
monitoring and recording of main processes parameters, which allows producing products in
accordance with the standards.
Information on depreciation of the equipment by main production facilities
Equipment depreciation
Number of units
Share, %
rate,%
5 767
52,7
Up to50
5 185
47,3
From 51 to 75
From 76 to 100
10
952
100,0
Total
As of January 1, 2015 the company was operating 10 952 units of equipment in the main
production workshops; the age composition of the equipment is given in the table.
Information on the age structure of the equipment for the main production workshops
Age of equipment, years
Quantity, total
Share, %
1 209
11,0
From 1 to 5
2
188
20,0
From 5 to 10
810
7,4
From 10 to 15
6 745
61,6
Over 15 years
10 952
100,0
Total
10