The region’s industry is represented by three companies: the municipal production unitary company Korma construction materials works, a Gomellen subsidiary Korma Flax Mill and the company Kormaagroservice. There is also the municipal polygraphy unitary company Polikolor, subsidiaries of Rechitsa Textile and Rogachev Concentrated Milk Factory. The Korma industrial cooperative facility under the regional consumer society is engaged in bakery production.
Kormaagroservice accounts for 51 per cent of the total industrial production of the region. Over the 10 months of 2004 the company manufactured Br607 million worth of industrial products, or 111 per cent to 2004. The company repairs harvesters, reapers, other equipment, produces space parts for the agricultural equipment, saw-timber.
In January-October the company reported Br120 million of net profits while in the same period last year it had Br15 million of losses. The average wages soared by 56 per cent. The labor productivity grew more than 1,5 times.
In January-October 2005 the industrial production of the Gomellen subsidiary Korma Flax Mill went up by 36 per cent to Br556 million. The company made 474 tons of flax fiber which quality has improved comparing with the same period in 2004. The production of long-staple fiber has doubled. The labor productivity grew by 53 per cent and the average wages – by 44 per cent.
The flax mill is well equipped to cultivate flax. The company has 18 tractors, 11 flax harvesters, 3 cultivators, 3 combined units, 2 flax seeders, 15 balers, 3 swath turner, 2 roll loaders, 2 mineral fertilizer spreaders, 2 sprayers.
In line with the business-project by 2007 Gomellen is expected to generate Br1131,58 million worth of profits, with profitability reaching 46,8 per cent.
Subsidiary #2 of the open joint stock society Rechitsa Textile specializes in manufacture of decorative coverlets and pillow-covers, kitchen and bath towels, terry bed-sheets.
In January-September 2005 the subsidiary produced industrial goods worth of Br1820 million or 13 per cent more against the same period of 2004. in particular, the company manufactured 17,1 thousand coverlets, 333 thousand bath towels, 11,8 thousand terry bed-sheets, 57,4 thousand napkins and 9,2 thousand towels. The company hit the target on industrial output and on manufacture of all types of products including consumer goods. Labor productivity grew by 16 per cent. The company continues designing new competitive products.
The subsidiary needs investments worth of EUR 1922 thousand to buy new equipment and EUR 400 thousand to make design estimates and to perform start-and-adjustment operations. The final cost of the project will be nailed down after design and economic feasibility study is completed.