Western sanctions drive demand for Belarusian MoAZ's products to record high

Aleksandr Monich said: “Our enterprise develops dynamically. Our vehicle assembly shop already has orders for Q1 2024. The contracts have been signed with our strategic partners such as Ural Mining and Metallurgical Company, Nornickel, PhosAgro from the city of Apatity. We continue working with Russian partners. Several delegations come to us weekly in order to get familiar with the manufacturing process and with our products. And I am pleased to note that new contracts are signed as a result of these visits. The products that enjoy the highest demand on the Russian market are underground dump trucks with the carrying capacity of up to 50 tonnes and load, haul, dump machines with the carrying capacity of 7-16 tonnes.”

The Mogilev-based automobile plant specializes in making heavy vehicles for open pits and underground mines.

Economic indicators demonstrated growth in H1 2023. The output growth rate totaled 132%. Export growth rate reached 200%. The volumes are rising and the plant is operating at its full vehicle manufacturing capacity, the director of the branch said.

The Mogilev-based enterprise also makes railway components. “We see positive dynamics here, too. An uptick. The division specializing in making these components is operating at 100% capacity and in two shifts. We plan to keep up the pace,” Aleksandr Monich noted.

“The pressure of sanctions on the Russian Federation has provided our enterprise with the highest demand for products of the last few years. It is a window of opportunity for us. But at the same time we understand that this period will not last forever, this is why we exploit the new opportunities as much as possible. Apart from that, our partners have been able to test prototypes of our vehicles with good results. The consumers appreciated their capabilities. MoAZ product engineers are now implementing small tweaks,” the executive said. “The fact that our partners trust us is also important. We make quality vehicles able to operate in extremely complicated conditions. We are ready to make vehicles to meet requirements of consumers and partners. And, needless to say, we have competitors but the fact spurs us to even greater heights.”

The enterprise intends to modernize its foundry and the mechanical assembly division. A project to build a painting complex is nearing completion. It will allow increasing output volumes in the future.

President's Aide, Inspector for Mogilev Oblast Leonid Martynyuk was made familiar with the plant's manufacturing capabilities. He remarked that the sanctions, which were supposed to negatively affect various aspects of life, had produced more benefits than harm. “The operation of the economy and enterprises in the period of sanctions-fuelled pressure has its own peculiarities. We have to work extra hard to stay in demand with our partners and to penetrate new target markets. And at the example of the Mogilev-based plant we can see that development doesn't stop here. Quality vehicles are in demand. The manufacturing facilities are busy. People work and get paid decent wages,” he said. “While it is possible to exploit the current conditions to our benefit, we should do it. While doing so, it is important to understand that the main Western competitors are absent only temporarily and this period may end. We cannot waste time. It is necessary to grow and adjust to the current conditions and use them with maximum benefits.”

Mogilev Automobile Plant named after S.M. Kirov (MoAZ, a branch of the holding company BelAZ) has been specializing in making automobiles since 1958. The development and small-series production of vehicles for mining operations is a core activity area of the enterprise.

The public joint-stock company (OAO) BelAZ is the managing company of the holding company BelAZ. BelAZ is the world's largest manufacturer of haul trucks with a large carrying capacity and an extremely large carrying capacity as well as other kinds of heavy transport equipment for the mining industry and the civil engineering industry.