Belarus PPE market: narrow specialization of suppliers and transition to low-budget products

Getsiz.ru is read not only in Russia, but also in the CIS countries. Within two weeks, we will make our readers familiar with the situation on the PPE markets in Azerbaijan, Armenia, Belarus, Georgia, Kazakhstan, Uzbekistan, and Ukraine. We collected opinions of the participants in the branch and manufacturers of PPE about the market situation, challenges, achievements and new projects. Commercial Director of «Bezopasnost Truda» LLC (Occupational Safety) Alexander Sorokin made a short overview of the Belorussian PPE market.

Alexander Sorokin, «Bezopasnost Truda» LLC, Commercial Director.

In 2018, as during previous years, the development of the PPE market in Belarus was definitively influenced by the economic situation, not only at home, but also in Russia. This can be primarily explained by the close integration processes between our countries.

If we assess 2018 by the results of our company, then I would characterize it as stable. I think that the other suppliers of PPE are in the same situation.

Last year saw the appearance of some new companies on the PPE market. Most of them have a small product portfolio. As a rule they have own manufacture of workwear. This situation though does not lead to a noticeable market division, unless it can sometimes spoil the game by price dumping in case of competitive procurement.

Among the major actors the situation is sufficiently stable. In Belarus today there are up to ten companies with a long history. Their main feature is that they can provide a wide range of PPE for customers. There are also large suppliers with a narrow range of products, but a large share of the market. They are among others: shoe factory «Trud» producing safety footwear and «Legpromrazvitie» CJSC (manufacturing of workwear and safety footwear).

Many PPE manufacturers are a part of the state-owned concern «Bellegprom», which coordinates the work of light industry in the Republic of Belarus. These companies, of course, enjoy support in form of preferential bank loans in the framework of state programs. The «Bellegprom» Concern includes a number of PPE suppliers: «Trud» shoe factory, a shoe factory in the town of Lida and the «Stetskevich» Group of Companies.

The main trend in the PPE market has been the transition to low budget products. In our opinion it is primarily related to the economic situation in the country. As a result price prevails over quality now. Customers increasingly use E-procurements.

The tax burden of Belorussian companies is almost the same as in Russia. In recent years there have been no changes. For example, the profit tax is 18%, VAT — 20%.

As for the new legislation on occupational safety, everything is centered around the Rules of TR/CU. Representatives of the Ministry of Labor of Belarus are part of the Commission for the elaboration of this document, and as far as we know in 2018 it was adopted in the final version, except for the section on the use of hand cleansers. There is no separate legislation or norms (outside the Customs Union) regulating the issuance and use of PPE in Belarus.

We estimate the PPE market in Belarus at 160 million dollars. The growth rate of the PPE in 2018 corresponds to the growth rate of inflation. Last year they amounted to 5.85%.

2018 for our company was fairly calm in terms of meeting the planned targets. We took part in the industrial exhibition «Welding – 2018» and held together with 3M Company several large workshops. The primary goals of «Bezopasnost Truda» LLC for 2019 are to improve the quality of regional offices’ work, as well as to improve the end user service.

Olga Shumeiko, «SOMZ» OJSC (TM ROSOMZ), Commercial Director

«SOMZ» OJSC has been operating in Belarus for more than 20 years. We conduct sales both through the dealer network and work under direct contracts with end users. In 2018 «SOMZ» concluded a number of direct contracts with large plants in Belarus. This happened due to the increased transparency of tender procedures in the companies. An important consideration for winning a competition is price, it prevails over quality. We are trying to introduce products in «medium +» price category. Our «Energo» kit is in good demand. It includes a safety helmet, a heat protective visor and a high voltage warning alarm manufactured by «SOMZ».

We faced with the fact that the issuance rules of PPE for the engineering industry in Belarus stipulate the use of goggles only. We had to make a new model of eyewear: we added a face seal and a rubber strap band. Some large Belorussian companies, for example, Belorussian Railways, use Russian experience and develop their own corporate norms. In corporate procurement in Belarus products of domestic manufacturers have a clear advantage. In Russia the situation was similar, but in 2019 some changes took place: PPE produced in the EAEU countries can be supplied even with FSS (Social Insurance Fund) compensation.

«Bezopasnost Truda» LLC was founded in 2009 in Minsk. Currently the company, which includes two garment factories, employs 200 people. The company’s branches are located in 15 major cities of Belarus.

OJSC «Suksun Optical and Mechanical Plant» (TM ROSOMZ) is one of Russia’s largest developers and manufacturers of PPE, including RPE (respiratory protection equipment). It is a leader in the production of safety helmets and eyewear in Russia. The company’s revenue in 2017 amounted to 1.397 billion rubles.

The 23rd international specialized exhibition «Occupational Safety and Health – 2019» (BiOT) will be held on December 10-13 in Moscow, pavilion No. 75 of the Exhibition of Economic Achievements. The exhibition is organized by the Russian Ministry of Labor and the Association of Developers, Manufacturers and Suppliers of Personal Protective Equipment (ASIZ). In 2018, the area of BiOT Fair was 13 thousand square meters. The number of visitors was 15 thousand.