Rationale behind Lukashenko’s decision to upgrade Belarus’ wood processing industry
Belarus has a unique renewable resource. About 40% of its territory is covered with forests, and about 25 million cubic meters of wood are processed in the country every year. Belarusian products - from paper and cardboard to timber, decor and furniture - are known in many countries across the globe. To achieve this the country's woodworking enterprises had to work hard. The state invested more than $4 billion in their modernization. Aleksandr Lukashenko kept this work under personal control – strict and uncompromising as always. In a new episode of BelTA’s YouTube project “After the Fact: Lukashenko’s Decisions” we will tell you why Belarus decided to reform the woodworking industry and what imbalances in the country’s economy the Belarusian authorities had to correct, why Aleksandr Lukashenko wanted to send ministers to work at factories and whom he did not forgive for reckless mismanagement. We have also visited the country’s enterprises to learn what results the modernization brought them, whether the life of the factory workers has changed to the better and whether woodworking has become a national brand of Belarus.
Reasons behind modernizing Belarus’ wood processing industry
The country’s timber industry is coordinated by the Belarusian timber, woodworking, pulp and paper industry concern Bellesbumprom. It unites several dozens of woodworking, furniture and pulp and paper enterprises, many of which have more than a century-long history. They have had everything on their path of development: ups and downs, important achievements and deep crises. They have survived the war, the collapse of a huge empire, the difficult years of revival and the establishment of the young independent country.
The production base of these enterprises, as well as of other industrial giants of Belarus, was developed in the Soviet years. By the start of the 2000s it no longer allowed the enterprises to work in new conditions, ensure the quality of products and compete with the world manufacturers. Many factories even faced the threat of liquidation. At the same time the Belarusian authorities sought to secure a more efficient use of forest raw material resources available in the country. What was to be done in such a situation?
In 2007, the Belarusian president decided to modernize the country’s woodworking enterprises and develop new modern facilities focused on the production of innovative, export-oriented and import-substituting products, deep and waste-free wood processing. This was the moment when Belarusian woodworking began its revival and the industry embraced a large-scale upgrade.
“We heavily rely on resources, spare parts and other things that we have to import. We underuse the raw materials available in our country. The modernization of the wood processing industry is designed to rectify this misbalance. There are 173 cubic meters of wood per capita in Belarus, up 2.5 times compared to the global average. Nevertheless, up until recently the industry exported mostly round timber and cheap semi-finished products. We exported timber and spent currency to buy furniture, high-quality paper and other products with a high added value instead of manufacturing all these things at home,” the president explained.
What problems did the enterprises face?
The pace, however, did not pick up immediately. Bellesbumprom Concern became the pioneer in the business, so it came as no surprise that the enterprises faced a number of problems. They had to do many things for the first time, sometimes through trial and error. The work involved financial, design and construction organizations, world manufacturers of technological equipment, various services and agencies.
Aleksandr Lukashenko showed understanding to mistakes made due to inexperience. The president, however, did not tolerate and took the toughest measures against trivial and unacceptable violations of financial discipline, uncontrollability and sheer mismanagement. For example, after visiting Borisovdrev in 2012, the head of state instructed to prepare a decree that would strengthen labor discipline at enterprises. At the same time, the president demanded to raise wages at factories and plants to give workers an incentive to work.
“Get a decree prepared. Until the completion of modernization and reconstruction works, it is prohibited to dismiss employees. Employees may not leave the company without the director’s permission. The employee may go if the director okays this. If not, the employee must continue working. Community service for any violations. This applies to everyone, be it a worker, a specialist or a manager. Otherwise, we will get to the point where tomorrow people will start walking around Borisov and Minsk with pitchforks and stab each other instead of launching the production and earning $1,000 in 2015,” Aleksandr Lukashenko said then.
Was it easy for the president to make such decisions? They were surely a tough call. It could not be made otherwise, with huge funds allocated from the budget, and the plans thwarted, with new equipment delivered to enterprises and left to rot under the roof. Those were isolated cases. However, responsible officials and directors were deprived of their posts, and sometimes even were put in jail.
Results of the modernization of the wood processing industry
Nobody probably remembers that famous decree, but today modern production facilities are operating in different parts of Belarus, people have jobs and make products that are in demand in many countries. One more important point: if the authorities had not caught up in time to make a decision on the modernization of the industry, many enterprises would cease to exist today. They would not have survived the current market conditions, losing the competition to others.
“Since the start of modernization works, wood processing volumes have increased by 20 million cubic meters. If in 2010 the output was slightly less than 6 million, then in 2023 it exceeded 25 million cubic meters. In general, production volumes at the modernized enterprises have increased 12 times, with wood processing depth rising from 38% in 2010 to 70% across the country. As for the Bellesbumprom enterprises, more than 99% of raw materials are used in production for technological and energy purposes,” Deputy Chairman of Bellesbumprom Concern Sergei Kasyanov said.
Dobrush Paper Mill
Let us have a look at one of these enterprises. Dobrush Paper Mill Geroy Truda is one of the oldest paper industry enterprises in Belarus. Count Ivan Paskevich, a military figure of the Russian Empire, got an idea to launch the production of writing paper in Dobrush. His only son and heir Fyodor was the one to implement the plan. It was thanks to him that the production of several types of paper was launched near Gomel. The plant produced wrapping paper, match paper, writing paper, printing paper and newsprint. In late 19th century the Dobrush paper factory was the largest enterprise in the country. In 1903 it placed eighth in the list of factories and plants of the Russian Empire. In Soviet times, every seventh school notebook was produced in Dobrush.
In 2012, the decision was made to launch the production of coated and uncoated types of cardboard at Dobrush Paper Mill. The new production occupied an area of more than 30 hectares (which is 42 football fields!). The production, however, was put into operation only a few years ago as the construction was delayed due to a foreign developer. Overcoming all the difficulties, the enterprise has become the leader of the country’s woodworking industry. Today, the factory boasts cutting-edge equipment that makes it possible to produce about 100 types of paper and cardboard products.
“At the time of commissioning, this type of product was made neither in the CIS nor in Belarus. A similar plant in “Kama” (Perm Oblast, Russia) was built at the same time. Today, two plants meet the needs of the printing houses in Belarus and the Russian Federation for this type of raw material. We also export to Central Asia, China and neighboring countries. This is a premium-class cardboard. The production capacity of this complex is 200,000 tonnes per year. This year we expect to produce some 170,000 tonnes. Plans are in place to reach the production capacity by the end of the year,” Romas Radevich, First Deputy Director of Dobrush Paper Mill Geroy Truda, said.
Over the past three years, the factory's production volumes have increased tenfold in financial terms. Wages increased as well. This is the main indicator of positive changes for ordinary workers. Rarity equipment was preserved during the modernization. The machines that produce cardboard are almost 130 years old, and they still function. Who would dare to get rid of such rare yet still operating equipment? With the right approach, such machines will definitely come in handy.
“My congratulations! The construction of this unique facility is finally over. Probably, we can learn our lesson from many challenges we faced during its construction. And we have learned a lot: how to build and how to supervise the process. I am pleased that we have completed the construction. We can do anything when we are sovereign, independent, when we understand that we work for ourselves and our people. You have done this for your children. Because your children are needed here, not in other places where competition is already high, even in Gomel and Minsk and will be growing. Take care of this enterprise for our children,” Aleksandr Lukashenko said during his visit to the factory in 2021.
Mostovdrev embraces technology
Another enterprise is located in the west of Belarus. It boasts 100% wood processing and absolutely waste-free production. It produces timber, plywood, fiberboard and laminated flooring.
The history of Mostovdrev Company began almost 100 years ago, when Konopatsky brothers built a plywood factory in Mosty. Back then it was the most equipped enterprise of the woodworking industry in Europe. Its products, including aircraft plywood, were supplied to England and Belgium, Singapore, Malaysia, and Argentina. In 1939 the factory was attacked by Luftwaffe planes. The Soviet authorities managed to restore the enterprise after Western Belarus became part of the BSSR and return its leading positions. Large-scale modernization was launched here in 2007. As in the case of Dobrush Paper Mill, the works were carried out here with varying success. Nevertheless, technical re-equipment brought its fruit.
“Yes, perhaps we punched well above our weight. There were no good design institutes, and we had to rely on some analogues. Our specialists traveled to Europe to study how the equipment worked there. We did it. I always say that we are proud of the fact that we managed everything and made a great contribution to the future. We have tripled production volumes compared to that period. With increased volumes, we have stable monthly wages. As for working conditions, if people work in boots before, today they all wear slippers. There are also new professions. These are operators of automatic lines, almost IT specialists. All this has been achieved thanks to budgetary funds. Today we give them back to the budget. This is a good investment for the country,” Director General of OAO Mostovdrev Sergei Ososov said.
Thanks to modernization, Mostovdrev has additional financial resources. The company has invested in the construction of a new sawmill, and the production has become a success. Today foreign partners are lining up for local timber. In general, all Mostovdrev's plants are 100% loaded, and almost 80% of products are bound for export.
“The technology envisages the use of all sawmill waste. The chips are used to produce fiberboard, other marginal products. Bark and other waste are used for the energy module. We do not consume gas at our enterprise. We use production waste for heating. Thanks to this we save a lot of energy and reduce the cost of production,” Andrei Makovets, First Deputy Director General – Chief Engineer of OAO Mostovdrev, said.
Belarus is not a pioneer in the implementation of large-scale projects. Large-scale modernization of the woodworking industry is one of them. As Aleksandr Lukashenko emphasizes, the implementation of such strategic tasks is the future of any country. No person or state can exist without the future.
