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Mogotex eyes Latin American market
MOGILEV, 25 April (BelTA) – Chilean companies and agencies got interested in the special-purpose textile produced by OAO Mogotex. The company presented its product during a visit to Chile, BelTA learnt from Mogotex Director Viktor Matiyevich.
Rapid development of the mining industry in the country gave rise to a number of mines and a demand for special-purpose apparel for miners. Vicinity to the coastal area and fish industry development requires fabric with waterproof and windproof properties. A great amount of security agencies, taking into account the size and climate of the country, dictates the need for special clothing for different types of troops: firefighters, frontier guards, and the interior department. These fabrics have been Mogotex’s main line of business over the last decade.
“Our major competitor in Latin America is China. Chile and China enjoy long economic relations based on optimization of logistic and tax preferences. For instance, there are no customs duties in their mutual trade, while customs duties stand at 6% for the Belarusian textile. There is also a considerable difference in price for the delivery of goods to Chile from Chinese cities and the Klaipeda ports from where Belarusian goods are supplied. With this, Chile is a direct gateway to the other countries of Latin America: Ecuador, Bolivia, Peru where Mogotex textile may compete due to its unique protective properties,” the Director General explained.
According to Viktor Matiyevich, the opportunities presented during the trip confirmed Belarus’ export interests in Latin America. Diversification of markets gives not only a rise in profits but also secures financial stability. Giving priority to one country places the company in financial and organizational dependence. Mogotex is interested in new markets. Latin America, with its scale, industrial development rate and geopolitical position, may become a mutually beneficial partner.
The company is set to open a subdivision at the department for foreign economic relations to study the markets of Latin America, the United States and the European Union.
Mogotex was founded in 1973 and reincorporated into an open joint stock company in 2000. The company is one of the biggest producers of textile products in Belarus and the CIS. Mogotex produces fabric for uniforms and overalls, cloaking, back and decorative fabric, knitwear, work clothes and home textiles. The company comprises waving, finishing, clothes factories and other production premises.