BMZ will come to a break-even operation by year-end
The first half of Byelorussian steel works ended with a loss. They was 12.9 million USD. If you do not consider banks, it is the most unprofitable public company of the Republic. This was reported by representatives of the Agency «Business news». In the first quarter of this year, the net loss of the Belarusian plant has reached 110,72 million USD. Last year, the first quarter was completed with a profit of $ 22 million USD. Accordingly, the BMZ income for the first quarter of this year fell by 22.9%. In numerical terms, this figure is up 49.63 million USD. At the end of last year, the income of the plant was about 1 billion USD. To calculate loan the Belarusian company plans to issue foreign currency bonds. Their cost will exceed 240 million USD.
Despite the difficult period the company intends to reach break-even by year-end. The situation considered by Deputy head of the Ministry of industry of the Republic of Belarus. According to Vladimir Khatskevich, the loss occurred due to falling of cost of metal. In 2015, prices have fallen by 26%. In the end, the foreign currency earnings of the plant fell to 313.3 million USD. In 2016, the cost of production decreased by 18.5%. Once losses have reached 77 million USD. Despite the losses, the efficiency of the BMP restored thanks to government support. Measures were implemented in April-may. Today the company is profitable. It is expected that by the end of the year the Belarus factory will cover initially received damages.
For the first six months of 2016 the Belarusian plant produced 1.07 million tons of steel. Rolled steel production reached 1.06 million tons. The volume of pipe production totaled 42,000 units. The volume of hardware reached the level of 171000 tons. The cost of products exported amounted to 340 million USD. Supplies were sent to Russia, Germany, Canada, USA, Israel, Czech Republic, Poland, Netherlands, Lithuania.
The increase in exports contributed to the production of the new rolling shop. It was launched in September 2015. It is assumed that the planned power plant will reach to the end of this year. It will amount to 700,000 tons of rolled products annually. About 80% of production is supplied to foreign consumers. Basically it is a rod for the automotive sector and wire rod. 74% in the export structure is the supply of products to Western consumers.