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Mogilev company “VMG Industry” started production of cabinet furniture

A foreign company “VMG Industry” Ltd started production of cabinet furniture, the plant’s director Giedrjus Kaukas told.
Starting from 2010 the company has been implementing the largest in Belarus investment project of establishing a vertically integrated woodworking enterprise having attracted direct foreign investments. The project’s overall cost is about €77 mln, including 60 mln of direct foreign investments.

Furniture workshop has been the first one to be commissioned, the director told. Production of cabinet furniture and certification tests have started recently. The trial consignment will be supplied to Russia at the end of the current month. The workshop producing woodchip board, veneer wood, laminated furniture details will start operating in November – December.

“90% of the plant’s construction-and-assembling operations have already been completed. All workshops will have started production by the end of the year; estimated capacity ($60-70 mln per year) is to be reached in the beginning of 2013. The plant’s output will be supplied to Europe and Russia; it will be purchased by Ikea - the world’s largest furniture producer”, Giedrjus Kaukas specified.

The Lithuanian and Swedish investors have been interested in the project thanks to reliable raw materials base, Russian markets situated rather close, support of the region’s administration, promoting capital investments into the region’s development. Thousands of new jobs and €1.5 mln of taxes paid to the budget are the benefits to be received by Belarus.

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