Workshop on modernization and development of the JSC Amkodor-KEZ in 2017-2025 was held

On 28 March 2017 an extended workshop on modernization and development of the JSC Amkodor-KEZ in 2017-2025 was held under the leadership of the Chairman of the Board of Directors of the JSC AMKODOR, holding managing company. Heads of the marketing, design, process, production and personnel departments took part in the workshop.

The purpose of the meeting was the elaboration of the solutions aimed at the implementation of the enterprise growth strategy developed by the JSC AMKODOR, holding management company. The strategy provides for the full implementation of the commitments undertaken within the framework of the Order of the President of the Republic of Belarus dd. 16 December 2013 and includes modernization of the existing production, mastering the production of new types of machinery and new sales markets, improving the quality of the machinery maintenance.

In December of 2014 the JSC AMKODOR, holding managing company, started negotiations with China National Machinery Industry Corporation (SINOMACH) about the establishment of the joint venture based on the JSC Amkodor-KEZ on the production of excavator, bulldozer and other crawler special-purpose machinery.

Reference. China National Machinery Industry Corporation (SINOMACH) was established in January of 1997. It is an important state strategic enterprise which is directly controlled by the Central Government of China. SINOMACH is in the list of 500 world’s biggest enterprises. SINOMACH Group has 110 000 employees, over 40 subsidiaries, 10 listed companies and over 180 foreign service agencies. SINOMACH turnover for 2015 was over 35 billion US dollars; profit was over 8 billion US dollars.

SINOMACH requested its subsidiary company SINOMACH Heavy Industry Corporation to act as the partner-investor of the JSC Amkodor-KEZ.

SINOMACH Heavy Industry Corporation is a strategic partner of such world-wide known manufacturers of industrial equipment as Komatsu from Japan and Hyundai from South Korea, supplier of components for the plants of the specified manufacturers, has the most modern technologies in the world for the production of crawler excavators and bulldozers. 

Together with the Chinese partners, the JSC AMKODOR, holding managing company, has created a work group that assessed the current production of the JSC Amkodor-KEZ and prospects for cooperation.

On 20 September 2015 the parties signed the Protocol of Intents. On 4 December 2015 and on 3 March 2016 additional Memorandums of understanding were signed.

In February of 2017 on the basis of its enterprise Amkodor-KEZ, AMKODOR holding successfully manufactured four machines of SINOMACH Heavy Industry, namely crawler excavators with the bucket capacity of 1.0 and 1.2 cubic meters – one of the most popular special-purpose machines in the world which have a constant growing in demand. Currently, the excavators are being tested.

In the course of the meeting at the JSC Amkodor-KEZ there were discussed the results of the enterprise's work in 2016 and production plans for the current year, issues of the product sales and expansion of the product line, issues related to the modification of the produced machinery of its own design by the design and process services.

The participants of the meeting also discussed the options for cooperation with SINOMACH corporation on the production of machinery and establishment of the joint venture with a full production cycle of the crawler excavators and bulldozers which are in demand on the market. It is also considered an opportunity to purchase a license for the SINOMACH machinery and master its production with a high extent of local content and its subsequent sales on the markets of the Republic of Belarus, Russia and others. 

The final decision on this issue will be taken on the results of the next round of negotiations between the parties which will be held in the second decade of April in the People's Republic of China where the delegation of AMKODOR arrives.

Thus, the enterprise Amkodor-KEZ of the holding has launched the mechanism to carry out the conceptual modernization and master new high-demand and competitive types of machines.