Belarus opposes merging tractor makers with Russia's CTP
MINSK. Aug 9 (Interfax) - The Belarusian Industry Ministry believes it would be inadvisable to merge the assets of Russia's Concern Tractor Plants (CTP) with Belarusian farm machinery makers.
"Our companies will, of course, consider all proposals for integration with Russian companies, but we must clearly see all financial flows of future partners," a spokesman for the ministry told Interfax.
He said CTP has expressed intentions to merge with Belarusian companies Gomselmash Production Association (PO Gomselmash) and Minsk Tractor Works (MTZ). However, CTP has a debt of about 50 billion rubles to the Russian government, he added.
"A merger with a partner who has a hefty debt to the budget - why? What return will such a joint venture have? This proposal looks more like an attempt to solve their own problems at the expense of Belarusian assets than a desire for mutually beneficial and effective cooperation," the ministry spokesman said.
He added that neither the ministry nor the Belarusian companies have received any official merger proposals from CTP.
Gomselmash and MTZ operate successfully on the Russian market, both in the area of direct and leasing sales of machinery, and in production at joint ventures set up in Russia's regions, the spokesman said.
"Formation of JVs and subsequent assembly of Belarusian machinery in Russian regions - this is genuinely an effective way to work. This is not only an opportunity to expand exports of Belarusian engineering products, but also an opportunity to participate in Russian government programs to equip agricultural producers with machinery," he said.
Russian media reported Thursday that CTP is considering the possibility of merging its farm machinery assets with Gomselmash and MTZ.
Belarus earlier proposed an alliance between Gomselmash and Russian farm machinery maker Rostselmash , but this proposal was rebuffed by the Russian side.
Russian media also noted that CTP has a debt of over 50 billion rubles to the government.
CTP produces industrial, military, railroad, agricultural, construction and logging machinery, along with components and spare parts. CTP includes about 20 enterprises in Russia, Austria, Germany and Denmark. Vnesheconombank (VEB) took control of CTP in 2010. Until then, the company was owned by its president Mikhail Bolotin and senior vice president Albert Bakov.
PO Gomselmash, founded in 1978 on the basis of the Gomselmash plant that opened in 1930, is one of the largest producers of farm machinery in the CIS and Europe. The company builds forage harvesters, mower-conditioners, grain harvesting combines and mounted mower-shredders.
State owned MTZ, founded in 1946, produces a line of tractors ranging in size from 20 to 300 horsepower, develops, manufactures and exports wheel tractors and spare parts, arranges for their licensed production, and provides servicing. The company puts its share of the global market for wheel tractors at about 8%.