Today’s Most Important Task
Enterprises run by the Belarusian Industry Ministry are hard at work substituting imports
Enterprises run by the Belarusian Industry Ministry are hard at work
Aiming for Independence From Import
The import substitution policy of the Industry Ministry is aimed at structural changes in this branch of the economy, localization of the consequences caused by Belarus’ technological specialization in the former Soviet Union.
Following decisions made by the head of state and by the government, the state import substitution program and the Industry Ministry’s
the program for Belarus’ social and economic development in 2011-2015 provides for balanced development of the national economy thanks to the export growth rate being higher than the import growth rate. it is even more necessary after consequences of the global financial and economic crisis have hit Belarus’ foreign trade hard. this is why import substitution in Belarusian mechanical engineering is an important tool to stabilize and advance the national economy.
import substitution program were implemented in 2006-2010.
The national program involved over 70 organizations. As much as $687.7 million worth of merchandise was manufactured back then, with $132.9 million worth of merchandise exported.
The launch of batch production is worth mentioning, including the production of class 5 tractors “Belarus” as part of the model range “Belarus” (2522DV, 2822DTS, 3022DV by MTZ), the coach MAZ 251 (AMAZ enterprise of OAO MAZ), TMT bars (BMZ company), electrically welded steel pipes (MMZ company).
As part of the ministry’s program 163 projects were implemented
in 2006-2010, $665.8 million worth of merchandise was made, with $191.6 million worth of merchandise exported.
Batch production of microwave ovens (OAO Horizont) was launched as well as the production of newtype generators for MAZ automobiles ( OAO BATE), 0.5 and 0.5S precision-class power transformers for 1000A, 1500A, and 2000A (Minsk Electrotechnical Plant), self-propelled cars for mines BELAZ 79271 (OAO BELAZ) and other import substitutes.
As part of the import-substitution efforts the necessary enterprises were set up. Belarus is no longer dependent on the import of powerful tractors, ploughs, grain harvesters, grain dryers, various kinds of buses, trolleybuses, engines and motors, machine tools, railway cars, television equipment, digital phone stations, new microelectronics parts, laser-based medical tools and other products.
Import substitution entered the state program for innovative development in 2007-2010. As part of the program 148 projects were completed, including investment projects to start manufacturing microchips with 0.5-0.35 micron design rules, heavy-duty grain harvesters. Facilities were set up to enable hot zincing of metal products, to make microwave ovens, automatic washing machines, seamless hot-rolled pipes and other products.
Organizations run by the ministry are the key executors of the programs aimed at retooling basic industries of the national economy. With assistance of the National Academy of Sciences of Belarus and the Agriculture and Food Ministry the national agribusiness industry has been granted a set of machines to make crop products using scientifically proven technologies. Domestic analogues of imported tillage and harvesting machines are being designed.
In the last ten years the range of agricultural machines made in Belarus increased from 13% to 70-75% of what the country needs, an almost 500% increase.
At present Belarusian enterprises make over 430 machines and tools for agriculture and the processing industry, with Industry Ministry enterprises turning out about 350 machines and tools.
The Belarusian mechanical engineering industry has created modern facilities to make a wide range of agricultural machines used for crop production. By the way, this opens up new opportunities to export more of these products to the Russian Federation and other countries.
In 2005-2010 Belarusian agriculture received 10,100 grain harvesters, 2,600 forage harvesters, 17,500 tractors, 9,200 trucks and 4,900 loaders.
In 2010 alone thanks to the fulfillment of contractual obligations in full Belarusian state-run farming enterprises received 1,711 grain harvesters, 368 forage harvesters, 2,209 tractors, 1,743 trucks and 639 loaders as well as a lot of other machinery.
As part of the relevant program that has been approved by the President of Belarus in the previous five years Industry Ministry enterprises shipped 4,350 machines and tools to the Belarusian forestry industry, with Br430.67 billion spent, or more than 80% above the targeted figure.
The machines satisfied the demand of the industry for forest harvesting tools and Belarus-made equipment. They enabled the harvesting of the forests that had been affected by bad weather and recovered a considerable amount of timber that can be used by the timber industry and the fuel and energy complex.
The ministry will continue building up these efforts. A set of machines will be designed in 20112015 to use the latest technologies to harvest forests, restore forests, and secure rational use of forest resources.
New import-substituting products are being designed for the national civil engineering industry, the public utilities, healthcare, transport and communications.
In particular, the national program for starting up the production of import substitutes for the civil engineering industry in 20092012 aims for it along with the state R&D programs “Mechanical engineering”, “Mechanical engineering technologies and equipment”, “Medical tools”, “Radio electronics”, “Microelectronics”. These programs are supposed to be implemented in 2011-2015.
New products are made available primarily after analyzing intermediate import, consumer import, and investment import, taking into
account the need to save material and energy resources.
Remodeling for Useful Ends
The industry’s structure will be improved in the future via the foundation of vertically oriented bodies – holding companies.
The Industry Ministry has plans for 16 holding companies. Of them the holding companies Horizont and BELOMO have been registered already. The holding company Autocomponents have been created by Presidential Decree No. 338 of 30 August 2011. Autocomponents stems from OAO BATE.
The ministry plans to set up holding companies Belavtomaz, Minsk Motor Plant, Amkodor, BELAZ, Belstankoinstrument, Electrotekhnika, Inte g ral, Selkhozmashinostroyeniye (agricultural mechanical engineering), Metallurgy, Atlant, Liftmash and others in the future. The documents to set them up are being prepared.
The new structure will enable a more concrete approach to import substitution and ways to reduce material and energy consumption.
The future holding companies will specialize in improving manufacturing practices and starting up the production of import substitutes and export-oriented merchandise.
The holding company Belavtomaz will focus on automobiles and buses, which are compliant with Euro 4 and Euro 5 standards.
The holding company Minsk Motor Plant will focus on 30-715hp competitive diesel engines that will match requirements of domestic and foreign markets.
The holding company Amkodor will focus on road construction machines, forestry machines and airfield machines.
BELAZ will manufacture rock haulers with the payload capacity of 27-360 tonnes, with hydromechanical transmissions and alternating current transmissions, machines for mines and quarries.
Autocomponents will focus on shipping more merchandise to existing markets and on penetrating new markets via import car assembly enterprises of the Russian Federation.
Belstankoinstrument will make NC turning machines, processing centers, NC polishing machines, CNC gear production machinery, other NC tools, modern metal-cutting instruments and accessories.
BELOMO will make new optical mechanical and optical electronic devices based on thermal imaging devices and laser transmitters able to compete with the world’s best products. BELOMO will focus on cutting-edge R&D to make optical and laser devices.
Electrotekhnika will make electric machinery, power transformers and substations, distributors, asynchronous electric motors, cables, lighting products.
The holding company Integral will make microelectronics devices, car electronics, medical electronics, focusing on exporting more and more products, primarily microchips, dual-use semiconductor products, power electronics, highcapacity 0.35-0.18 micron EEPROM, microchips to control LEDS, 0.350.18 micron RPID.
S e l k h o z m a s h i n o s t r o ye n i ye is expected to make competitive machines for crop husbandry using scientifically proven technologies, domestic analogues of imported tillage and harvesting equipment.
The holding company Metallurgy will deal with rolled ferrous metals, hardware products, welded and hotrolled pipes, heating radiators, boilers and pipeline fittings, propeller pumps, molding sand, procurement development.
Atlant will focus on “white goods”, refrigerators, washing and dish-washing machines, gas and electric stoves, components for household appliances.
Horizont will combine efforts to make household electronics, telecommunication solutions, industrial electronics, focus the scientific and intellectual potential for innovative development and diversification of these areas, for specialization of enterprises, for raising the effectiveness of using spare production facilities, to develop the existing experience of cooperation with transnational corporations (Midea Group) for the sake of turning out competitive products.
The holding company Liftmash will make elevator equipment, construction site hoists, agricultural machines and consumer goods.
Proud of Results
A lot has been done already. The Baranovichi-based machine tools subsidiary of ZAO Atlant has started manufacturing automatic molding machines, which had not been manufactured in Belarus before, and plasma-cutting complexes. They are set to start the production of through-type furnaces and chamber furnaces for heat processing.
As part of the Br53 billion contract to build the facility to make seamless drawn pipes for BMZ, systems have been built to transport pipes between operations. Such systems have been sold to foreign steel mills.
OAO Brestmash has made 1 million worth of metal structures for the Brest waste recycling factory as part of the contract with the company Strabach. Brestmash has started manufacturing equipment with adjustable temperatures with the capacity of up to 100 cubic meters.
Cooperation between Belaruskali and Minsk Tractor Works has resulted in the production of underground vehicles (transport, sanitary, and fire-fighting ones).
The companies Belaruscable and Gomelcable manufacture importsubstituting armored power cables and glass-lined cables for Belarusian Railways and other customers.
The Vitebsk instrument-making plant makes fittings for footwear manufacturers to substitute Polish and Italian imports.
The complex automation solutions factory in association with the Minsk Oblast administration has implemented an innovative project to create a hard-pressed cheese line fortheberezino-basedcheesefactory. Such lines are manufactured by the Polish company Obram, the German company Westfalia Separator and other foreign manufacturers. The Belarus-made line with the output capacity of 10 tonnes per day was commissioned on 22 April 2011.
The production of electric motors for automatic washing machines made by ZAO Atlant has begun. The license and equipment had been bought from the company BSH Drives and Pumps. The project will fully satisfy Atlant’s demand
for electric motors. Atlant is the sole manufacturer of washing machines in Belarus.
Minsk Motor Plant, the Tutayev mechanical engineering plant of Russia and Bosch have started manufacturing diesel engines with the capacity of up to 800hp for domestic vehicles.
The implementation of the import substitution concept in all areas of investment efforts has enabled the Industry Ministry to secure a foreign trade surplus of $1.7 billion in 2010 and to reduce materials consumption by 0.8% despite the global economic crisis.
Apart from that, the production of import substitutes that have been designed as part of national and sectoral programs has allowed minimizing the import of similar products in other branches of the national economy.
In the current five-year term the import substitution policy is now even more concrete and targeted.
In 2011-2015 efforts of the Industry Ministry will be guided by a scheme that has been developed by the Economy Ministry and the National Academy of Sciences of Belarus and has been approved by the head of state.
The scheme includes three groups of commodities:
• commodities, which are produced in Belarus. A total of 286 titles, including 129 ones the Industry Ministry is responsible for;
• commodities, which are manufactured as part of existing programs;
• commodities, which are not produced domestically. A total of 602 titles, including 410 ones the Industry Ministry is responsible for.
In January 2011 the commission tasked with improving the competitive ability of the national economy approved this year’s import substitution action plan of the Industry Ministry in accordance with the scheme.
The ministry has determined the procedure for working out and controlling the fulfillment of the programs meant to reduce imported components in Belarusian products.
In other words, in the new phase of the national mechanical engineering industry development the policy of import substitution “resides” in shops and manufacturing divisions, exactly where innovative products are created.
There are plans to implement 414 measures as part of the programs for the sake of substituting imported components and materials. About 250 measures of the total are scheduled for completion in 2011.
In particular, this year Minsk Automobile Plant has designed and manufactured a prototype of the CIS’ only bonneted truck MAZ 6440. The new vehicle is powered by a 600hp Euro-4 compliant engine from Minsk Motor Plant. Belarus-made components constitute 75% of the new vehicle. The ones that the company has to import for now will be substituted with local products in the future.
In order to implement Directive No. 4 on public-private partnership and to improve the targeted nature of the import substitution policy Minsk Tractor Works and Minsk Automobile Plant have held seminars involving private organizations to display the import-substituting products that Belarusian enterprises need these days. After the seminars it was decided to start manufacturing about 60 import-substituting products for Belarus’ largest manufacturers of automobiles and tractors.
There are plans to hold similar seminars involving the display of import substitutes at several other Industry Ministry enterprises.
The practice allows expanding the choice of import substitutes and the number of manufacturers involved in making these products, including private business.
Lower Materials Consumption
The main ways to reduce the consumption of materials and energy in the mechanical engineering industry are:
• use of information technologies;
• development of new products using less resources throughout the entire cycle from raw materials to recycling;
• retooling of enterprisesprises using modern resource-saving technologies and equipment;
• improvement of basic areas of the industry and their further specialization.
In particular, the use of information technologies in creating and manufacturing products has halved the time required to start batch production of new merchandise and bring it onto the market thanks to parallelization and combined preproduction phases. Information technologies have provided a considerable competitive edge.
Using information technologies to design and test virtual prototypes instead of real-world ones and their components, streamlining manufacturing processes have reduced the consumption of material and labor resources by 15-20%.
The system approach to creating new competitive products has been primarily enabled by R&D centers of industry flagships. They shape ideas and concepts and implement modern technologies in the first phases of life of new products. Along with providing paper and digital documentation, the software to manufacture new products using NC machine tools is developed. The rather expensive preparatory phase (production of moulds, accessories) is no longer needed while the time required to start batch production is considerably reduced.
OAO Vityas is a good example of this approach. The company has started manufacturing slim TV sets using light-emitting diodes (LED) instead of fluorescent lamps. LED panels have reduced power consumption of a TV set by 30-50%, the thickness of a TV set 2-3 times, have reduced the size of packaging and the materials consumption of the product.
Similar resource-saving efforts are exercised for the entire range of products, including ZAO Atlant refrigerators, OAO Horizont microwave ovens, OAO Vityas vacuum cleaners.
OAO Minsk Motor Plant works hard to secure the production of engines compliant with Euro-3, 4, 5 and 6 in the future. After modeling all parts of its automobile cranes, OAO MAZ has increased the crane’s lifting capacity by 15% while keeping the mass of the vehicle unchanged. Better technical parameters have reduced the weight of elevator drives for Mogilevliftmash, weight of starters and power generators made by OAO BATE.
The Mogilev-based company OAO Elektrodvigatel is busy designing IE1 (EFF2) and IE2 class energyeffective bipolar electric motors.
The scarcity of fuel and energy resources and the need to import them leave Belarus’ economy vulnerable to imports and to rapidly changing prices for energy resources. In these conditions energy saving is a priority.
Belarusian Steel Works, a major consumer of electricity and natural gas in Belarus, puts serious efforts into raising the effectiveness of using fuel and energy resources. In 2005-2010 it reduced energy consumption of manufacturing processes from 0.679 tonnes of oil equivalent per one thousand US dollars to 0.465 tonnes of oil equivalent per thousand US dollars. The company has also substituted up to 20.5% of the natural gas it buys with secondary energy resources.
The company assimilates resource-saving technologies together with research centers of the National Academy of Sciences of Belarus, Russia, Ukraine, Germany and other countries.
Other enterprises accountable to the Industry Ministry work on saving resources, too.
As part of the retooling program Minsk Tractor Works plans to take 324 measures in 2011 to save all kinds of resources. Of the total 150 measures are stipulated by the energy saving program. The measures will reduce expenses by at least Br22 billion per annum. The spending of fuel and energy resources will be reduced by 18,500 tonnes of oil equivalent.
In 2009-2010 OAO Minsk Automobile Plant modernized its main production divisions, including the foundry, the forging division, the thermogalvanic one, the body press one, the mechanical assembly one, the aggregates one, the instrumental one, the trailer one, the automobile assembly division and the bus division.
The launch of an automated line to make small-leaf parabolic bow
springs at the Minsk springs plant will allow reducing the weight of springs by 30% in comparison with multiple-leaf bow springs. It will reduce energy consumption by 30%, enabling more effective protection against corrosion.
The fulfillment of an organizational action plan by Belarusian Autoworks saved Br6,352.6 million thanks to lower prime costs and saved 2,712 tonnes of metal.
OAO BELNIIILIT, an R&D enterprise specializing in foundry technologies, has designed a machine to make rods out of sand-resin mixtures without heating using the cold-box-amin process. Six machines have been installed at Minsk Tractor Works, Minsk Automobile Plant, and Belarusian Autoworks. As a result, 928,000 KW was saved within three years.
An automated mixture preparation complex has been designed and installed at OAO Minsk Automobile Plant. It saved 68,000 KW of electricity within three years.
In 2011 the company continued assimilating modern technologies and equipment in a bid to retool power-hungry enterprises. It will allow saving 6,494 tonnes of oil equivalent in foundries alone.
Belvtorchermet enterprises work hard to get ferrous and nonferrous metal scrap back into the economy. Accumulator batteries are now processed, facilities to make secondary aluminum alloys, to pelletize metal chips have been commissioned. Other resource-saving technologies are assimilated.
In H1 2011 the economic effect from the efforts of Industry Ministry enterprises to reduce material, energy and labor resources amounted to Br558.3 billion.
*** Thus, the approaches the Industry Ministry has developed rely on maximum use of the R&D potential and the creative potential of the industry, concentration of machine products at enterprises that make up manu- facturing corporations, timely retooling of enterprises. They will allow increasing the quality and competitive ability of Belarusian machines and equipment, raising the export potential of industrial enterprises, increasing export, noticeably increasing import substitution while reducing the consumption of materials and energy in ready-made products.
A welding robot used to weld large
capacity power transformers in a gas environment is now used by Minsk
Electrotechnical Plant named after Kozlov. The new
technology has greatly increased the quality of end
OAO Amkodor has designed and manufactured a new grain cleaning and drying complex able to process 60-80 tonnes of grain per hour. It is the most powerful grain dryer in Belarus and the CIS states
Chinese joint venture MideaHorizont was
created in October 2007. It manufactures microwave ovens for households. The ovens meet European quality
and design standards, which
is why they are competitive abroad
Atlant is one of the CIS major producers of household appliances
OAO Minsk Automobile Plant has designed a brand new bonneted truck MAZ 6440. It is a modern powerful and comfortable
tractor truck able to deliver cargoes over long
New digital television products from OAO Vityas meet the toughest quality and reliability standards. The company uses the latest technologies, which are employed by Samsung, Philips, and Sony
OAO Minsk Motor Plant has started batch production of Euro-4-compliant
automobile engines. The company also manufactures a series of Stage 3A