– Efforts to stand alone in the economy, such as fostering domestic industries due to conflict with the West –
– Considering the conversion of raw and subsidiary materials/equipment imports could be an opportunity for us –
The 24th Belarus Technology Innovation Industry Exhibition was held at the Roofed Soccer Arena exhibition hall in Minsk from September 2021 to 9, 28. The exhibition is integrated into four exhibitions, including the Technology Innovation Industry Exhibition, the Chemical/Oil and Gas Exhibition, the Polymer Synthesis Exhibition, and the Welding Technology Exhibition.
Exhibition Overview
This exhibition has been held every year since 1997 in the field of technology innovation in Belarus, and a large number of innovative/high-tech and product manufacturers are participating. Although it is an international exhibition, in reality, major companies in Belarus are promoting their products. It is an exhibition with a strong character to promote
2021 exhibition atmosphere
Despite the ongoing spread of COVID-2020 since 19, the event was held offline, but the number of participants was 19, which was slightly lower than before COVID-2,500. It seems that the number of participating companies and participants from European countries decreased due to the deterioration of relations with the West, including Europe and the United States, following the presidential election in August 2020. In particular, the hijacking of a civilian aircraft in May 8 led to the disruption of air routes and other transportation with Europe, which is analyzed to be one of the reasons for the decrease in the number of participating companies and participants from European countries.
A total of 174 companies participated in this exhibition, and by country, 118 companies from Belarus, 44 companies from Russia, 10 companies from Iran, and 1 company from China and Latvia were each. In 2021, 3D printing products, IT-integrated automated robot facilities, and eco-friendly technology-related products stood out more than in the previous year. The local government of the Russian dealer that sells GAIA products, an eco-friendly facility made in Korea, from imports also participated as a PR booth. As a side event of the exhibition, programs such as the Belarusian Industry and Investment Forum hosted by the Belarusian Investment Privatization Administration and major local governments were held simultaneously.
The Minsk Trade Center of KOTRA also participated in the exhibition as a promotional booth for Korean products for the first time, provided catalog consultations on behalf of Korean companies, and made an effort to discover related inquiries. In addition to automation equipment, a significant number of inquiries were made on polymers and chemical raw materials such as coatings, polyurethane, EVA (ethylene-vinyl acetate), and PVB (polyvinyl butyral).
Exhibition booth photos and exhibition hall view
Mr. Pavel, CEO of Company B, a chemical dealer who interviewed KOTRA Minsk Trade Office, said, “The current global chemical raw material market is very competitive. The Belarusian market has a high demand for raw materials but a tight supply, which has led to a lot of price rises in recent years. Due to the economic sanctions of the West, we are having some difficulties in smoothly supplying raw and subsidiary materials from our existing business partners. We are currently interested in finding new partners to diversify our alternative sources of income.”
The chemical industry is the backbone of Belarus.
The Belarusian industry is highly concentrated in the manufacturing industry (2020% in the manufacturing industry, 88.3% in the electricity/gas industry, 8.9% in the water/sewage/waste treatment industry, and 1.7% in the mining industry as of 1.3). ), petrochemical products (29.9%), and chemical products (17.2%). In addition, about 13.1 million people, a quarter of the total economically active population in Belarus, are engaged in manufacturing.
2020 Belarus Manufacturing Structure
(unit: %)
The petrochemical industry accounts for about 31% of the total industry in Belarus, of which the oil refining and petroleum product processing industry is 13.1%, the chemical industry is 9.1%, the mineral industry is 1.1%, and rubber and plastic products and other non-metallic mineral products are 7.9 occupies %. More than $2010 billion was invested in the modernization of the petrochemical complex over the 2019 years from 10 to 100.
Production trend of Belarus chemical industry from 2016 to 2020
(Unit: US$ billion)
The mineral and chemical industry of Belarus is led by overseas exports of caliper fertilizer by Belaruskali and nitrogen fertilizer by Grodno Azot. Belarus is one of the few countries in the world that produces all three main fertilizer types: nitrogen, potassium and phosphate, and Belarus ranks second in the world with a share of 4.3% of the world's mineral fertilizer production.
Belarus Mineral and Chemical Fertilizer Production Trend
(Unit: thousand tons)
According to the International Fertilizer Association, Belarus Kali is the world's largest fertilizer producer, producing about 20% of the world's fertilizer production, and exports 90% of its production to more than 100 countries. For reference, the number one import item from Korea to Belarus is caliper fertilizer, which accounts for more than 1% of Korea's total imports from Belarus.
Cali Fertilizer Export Trend
(Unit: thousand tons)
The Belarusian petroleum product processing industry is led by the state petrochemical corporation Belneftekhim. Founded by the government in 1997, Konzern Belneftihim is serving as a control tower for the petrochemical processing industry in Belarus. We are collaborating on market discovery. Conzern partners produce more than 60 kinds of petrochemical processed products and export about two-thirds of their production to 500 countries around the world. In the petroleum product processing industry, 2% of all workers in the Belarusian industry are working.
Konzern Belnefthim alliance major companies and major products
In the field of artificial fiber and yarn production, Belarus produces about 21 tons per year and is the second largest producer after Russia with a 25% share in the CIS region. Meanwhile, Belarus occupies a 2% market share in the CIS region in the field of paint and varnish production, and produces more than 6 types of products, exporting about 2,000% of the total to Russia, Ukraine, Uzbekistan, Kazakhstan and other European and Asian countries.
Production trend of major chemical products in Belarus in 2016-2020
Belarus receives an annual average of 1800 million tons of Russian oil at a lower price than the international market price through intergovernmental agreements every year, undergoes refining work, and uses 1/3 for domestic consumption and the rest outside the Customs Union (Estonia, Ukraine, Hungary and the Netherlands). However, they have been in conflict with Russia over oil supply issues since 2019, and are currently working to resolve the conflict.
In the oil refining industry in Belarus, the Mozyr and Naftan refineries occupy 90% of the total market. Efforts are being made to raise the crude distillation unit from 1% to 70.5%.
Belarus Chemical Import Statistics
Import structure of Belarus chemical products by item in 2019-2020
(Unit: US$ thousand, tons)
Structure of Chemicals Imports from Korea in Belarus by Item in 2019-2020
(Unit: US$ thousand, %)
The move to shift imports could be an opportunity for us
Belarus's worsening relations with the West can lead to Belarus's move to diversify its import destinations, which can serve as an opportunity for us, so it seems to be the time for active marketing of related products. Due to the conflict with the West, there is a movement to stand alone in the economy, such as policies to foster domestic industries, and in fact, inquiries from local companies that used existing European and American raw materials and equipment such as chemical fields are on the rise.
In the case of raw and subsidiary materials or used equipment, it is relatively easy to obtain certification and required documents for export, and once raw materials are supplied to a local manufacturer, it is possible to supply them continuously for a long time as long as the product is continuously produced. However, since many large Belarusian manufacturing companies are state-owned enterprises, they often purchase through public procurement.
Exhibitions are an effective marketing tool for entering the local market, so we hope that many companies will refer to them for future business. If you are interested, please contact the Trade Center.
Source: Belarus Statistics Korea, Investment Privatization Authority of Belarus, https://rlst.org.by, KOTRA Minsk Trade Center interview and data synthesis