Lukashists Liquidate Once First Largest Joint Enterprise Of Independent Belarus

It is about the Mahiliou spinning and weaving factory Sopotex.

Last year, its shareholders tried to merge with one of their main partners - Mogotex. After it failed, they decided on liquidation in early 2022, officelife.media writes.

In late September, it was decided at a meeting of shareholders to file an application to court to declare Sopotex, once the largest joint venture in independent Belarus, bankrupt.

Sopotex was established back in the Soviet times under the program to produce cape fabrics in the territory of the BSSR. Originally the joint venture was called Sovitex and the Italian partner was supposed to take part in it. When the latter declined, it was replaced by the Portuguese company IT Comercio International. At the end of 1991, the Portuguese, who received 31% of Sopotex shares, together with their partner Mogotex (former Mahiliou silk fabrics production association) launched the production of blend fabrics for further production of raincoats.

According to the results of 1992, which was the first year of Belarus independence, Sopotex was the largest joint venture in the country in terms of the production volume. The Belarusian-Portuguese joint venture was then ahead of such joint ventures as Belwest (Germany), Summit Systems (USA), Belcom-Kaliy (India), Belpak (USA), and Belita (Italy) in terms of revenues.

Subsequently, as a result of the change of shareholders, the Portuguese left the joint venture but production developed, having mastered the production of some types of fabrics. However, the problems with sales to key partners, which worsened after 2020, eventually resulted in the liquidation procedure of the enterprise.