The Deputy Minister of Industry and Trade checked “Vologda textile” being reanimated


“Vologda textile” may still be the flagship of the light industry of the country. As well as proposals of Vologda Timber Merchants will be considered in the long-term development plan for the industry. These and other issues were discussed at the meeting between the Head of the Region Oleg Kuvshinnikov and the Deputy Minister of Industry and Trade Viktor Evtukhov. According to the governor, the regional administration does all it can in order to increase investments in fixed assets. As a result, the index of industrial production in Vologda region in 2015 reached the level of 102%, which is ahead of average.

The Deputy Minister had a chance to personally see and evaluate the efforts of the region. He did not only hold a number of meetings in the regional government, but also visited the revived “Vologda textile” factory.

The meeting in the government was devoted to the problems of timber and forest industry. At the beginning of the meeting with the representatives of regional authorities and forest industry Viktor Evtukhov explained that only a month ago he had been asked to have a closer look at the industry and to submit a long-term plan for its development by the 5th of April. Therefore, it was very useful that the visit to Vologda occurred before that date.

“Vologda region is one of the regions that could be used as a model in terms of timber industry development, investment climate and in terms of successful implementation of priority investment projects that were previously announced. Vologda is one of the few regions where all the announced investment projects have been implemented. It’s a very indicative moment”, – said Viktor Evtukhov, the Deputy Minister of Industry and Trade.

They spoke not only about the success of the Vologda region. The Deputy Minister asked participants to make suggestions that may be reflected in the development program. “Some proposals will have the Ministry’s support”, – said Viktor Evtukhov. For example, the Deputy Minister promised to agree with the Ministry of Finance the question of giving the government guarantees for the creation of a pulp mill in Cherepovets district. The plans for the creation of the forest cluster in the area were also approved.

The light industry is yet another branch, which Viktor Evtukhov oversees. Therefore, the next point of his working visit was “Vologda textile”. As the Deputy Minister said, this company literally managed to revive. The plant had been modernized for several years. But then, the production had been halted for a long time due to inefficiency of the former management. Last year, the work was resumed again. The Ministry of Industry together with the regional authorities managed to find investors.

Now all the equipment purchased during the modernization period is already working. They plan to use old equipment too. According to the management, each month the production capacity of the plant is increased. With regard to the sales market, so far, it is mostly Russia. But, they also received an order from Italy. The debt issues are gradually being solved as well. One of the creditors has already signed an agreement on debt restructuring, while with others negotiations are in progress. The main thing is that more than a hundred people have already returned to work in the company!