Ladutska Offers to Bankrupt Motovelo

Director of Minsk bicycle plant Mikalai Ladutska decided not to build a bicycle plant in a new place.

Mikalai Ladutska has recently informed that possible transfer and significant modernization of the enterprise needs up to $50 million. It turned out that he had decided not to build plant in a new place, tut.by informs.

How does the plant look like now?

It should be reminded that in 2007 businessman Aliaksandr Murauyeu acquired the enterprise. His company ATEC registered in Austria became the owner of majority stock holding of OAO Motovelo. It cost Br16.5 billion. In June 2015 Murauyeu was detained, a few days later former Chairman of Minsk City Executive Committee Mikalai Ladutska became a new director.

ATEC is still a majority stock-holder of OAO Motovelo. However, previous owners have large obligations owed to banks.

Therefore, to resume production there was registered OOO Motorbike and Bicycle Plant in the territory of Motovelo. The Minsk-Arena and the experienced-mechanical plant became founders. Then Motorbike and Bicycle Plant took production lines of Motovelo on lease for a song.

Thus, since March 2016 another enterprise has been manufacturing Aist bicycles and Minsk motorbikes on the same equipment.

However, the energy consumption on the existing ground is 100%. Almost all equipment is sold out by previous owner, and the remained one became obsolete. Last winter the heating system was switched on only for a month, it is impossible to switch off the heating system in idle premises.

The roof is leaking, there are places covered with veneer sheets. The assembly line is almost 60 years old. 30 years ago the world abandoned ceiling feed system and we are still trying to do the same.

Mikalai Ladutska tells that he has addressed to industrial enterprises of the country wondering who is able to produce components for bicycle and motorbikes, but not for tons of money. As a result, enterprises were not ready to produce components.

Less than a month ago Ladutska said that a new construction of the plant was other way to make the enterprise recover. It needed $7 million at once and up to $50 million for 6 years.

Are there any other ways out?

Yes, and the ex-head of the capital told about them on the other day. For instance, Ladutska offers to find the owner of the territory, premises and remained equipment. It is noteworthy that formally it all is still owned by OAO Motovelo.

One of the ways is to recognize OAO Motovelo a bankrupt and then all the property and land will be public. It makes the rational use of premises possible. For instance, to create the republican park of innovations and exhibition centre. At the same time, it would be possible to leave several shops for production of motorbikes and bicycles.

If the decision on purchase is taken by the city, it would be logic to make OOO Motorbike and Bicycle Plant the managing company which deals with further development of the ground in Partsizanski Avenue.

Another recipe is the use of free space of enterprises. They have certain equipment there. They just need additional modern equipment. But, according to Ladutska, OOO Motorbike and Bicycle Plant should be under control of the Ministry of Industry. Then it would be possible to gain support of the Innovative Fund and other enterprises would be more agreeable to cooperate.

Ladutska has decided not to start from the very beginning: "The construction of a new plant barely makes sense and it requires large investments."