31 March 2023
BelAZ: Symbol and pride of Belarus. The journey to prominence and current challenges
The history of Belarusian Automobile Plant (BelAZ) deserves a Hollywood adaptation. We have already seen countless movies about great brands. We know the success story of almost every one of them - from sneakers and sportswear to smartphones and cars. But believe me, it would be very difficult for them to compete with a movie about the legendary BelAZ. In the new episode of BelTA's YouTube project “After the Fact: Lukashenko's Decisions” we will tell you how the yellow giants have become one of the symbols of contemporary Belarus, what German investors named as the most valuable thing about BelAZ, why the Americans are so annoyed by the success of the Belarusian competitor and what a surprise code-named ‘yellow canary' Belarus and Russia are preparing.The history of the dump truck industry in BelarusThe history of Belarusian Automobile Plant began in 1946. The war left the republic in ruins. Belarus suffered huge human losses and material damage. The enemy destroyed more than half of the country's national wealth. In economic terms, the BSSR was thrown back to 1928, and in such important sectors as manufacturing and energy, even as far as 1913. After the liberation, the country ran on only 2% of its pre-war energy capacity; transport and agriculture were badly affected. All this had to be rebuilt. The five-year plan for the BSSR economic recovery read: “In order to create an automotive industry of its own, it is necessary to restore and build two machine factories, one of them at the Zhodino railway station.”
Of course, at that time no one even thought about creating a super-truck. The Zhodino factory was going to produce peat equipment. The first products were brush cutters and trailed rollers. A little later, the enterprise was re-purposed to manufacture road and reclamation machines Dormash; the first flusher truck was rolled out.
Yet, it became clear by 1958 that the Soviet Union badly needed heavy vehicles. The country was experiencing an economic boom, and it made little economic sense to operate small trucks at large quarries. Thus, a decision was made to start producing heavy vehicles in Belarus. The republic was chosen for a reason: it had the necessary competencies. The staff of Minsk Automobile Works already knew how to make heavy vehicles. A 25-tonne MAZ dump truck was already in operation at construction sites across the USSR. It was decided to assemble this particular truck in Zhodino. However, it soon became clear that engineers had to come up with something more advanced. The meticulous work at drawing boards resulted in the first BelAZ truck seeing the light of the day in autumn 1961.
From 27 to 40, 80, 120 tonnes - the carrying capacity of the yellow giants kept growing. They became indispensable during extraction of solid minerals in harsh climates and off-road conditions. BelAZ collected gold medals at international exhibitions in Germany's Leipzig and Bulgaria's Plovdiv, and its designers were awarded state prizes. In the 1970s, BSSR-made dump trucks held 50% of the world market. Now tell me, is the success story of this brand not worthy of a film adaptation? Its story continued with a series of exciting twists and turns.
BelAZ throughout the 1990sThe collapse of the Soviet Union threw Belarusian Automobile Plant, as well as other machine factories of the republic, into a dire situation. The market that employed tens of thousands of people fell apart. The Belarusian industry flagships were working two days a week and were about to breathe their last breath. The calls for ‘restructuring, liberalizing, privatizing' BelAZ, MTZ, and MAZ in fact meant cutting them into pieces and dividing. They wanted to do the same with all large enterprises that were the lifeline of the Belarusian economy. Yet, the president's visit to the factory in the difficult 1990s put an end to these discussions.
“It was still tolerable in the 1980s. The company had already entered a period of financial stress, but salaries were paid. But when the USSR broke up in the 1990s, problems started to snowball. Yet, the plant somehow managed to stay afloat. Aleksandr Grigoryevich, our president, forbade selling large assets like Belaruskali, BelAZ, MAZ. We met with our president in a workshop. He laid out his vision for the company. He was determined to turn the company around. Of course, there were many problems, but they were solved. The company pulled it off. Now BelAZ is a thriving company with many orders. If there is work, there is a salary, there is a future,” Rostislav Yermakovich, an electrical fitter at the truck and tractor assembly and testing shop, recalled.
Why BelAZ was not sold to competitors
The collapse of the Soviet Union threw Belarusian Automobile Plant, as well as other machine factories of the republic, into a dire situation. The market that employed tens of thousands of people fell apart. The Belarusian industry flagships were working two days a week and were about to breathe their last breath. The calls for ‘restructuring, liberalizing, privatizing' BelAZ, MTZ, and MAZ in fact meant cutting them into pieces and dividing. They wanted to do the same with all large enterprises that were the lifeline of the Belarusian economy. Yet, the president's visit to the factory in the difficult 1990s put an end to these discussions.
“It was still tolerable in the 1980s. The company had already entered a period of financial stress, but salaries were paid. But when the USSR broke up in the 1990s, problems started to snowball. Yet, the plant somehow managed to stay afloat. Aleksandr Grigoryevich, our president, forbade selling large assets like Belaruskali, BelAZ, MAZ. We met with our president in a workshop. He laid out his vision for the company. He was determined to turn the company around. Of course, there were many problems, but they were solved. The company pulled it off. Now BelAZ is a thriving company with many orders. If there is work, there is a salary, there is a future,” Rostislav Yermakovich, an electrical fitter at the truck and tractor assembly and testing shop, recalled.
After Aleksandr Lukashenko came to power, the government set out on a serious quest to save companies and retain labor collectives. Perhaps, labor collectives above all. Why? It is simple. When the Germans were assessing BelAZ, they came to the conclusion that the most valuable thing about the enterprise is not buildings, not infrastructure, not machine tools, but workforce. Buildings can be built. Machines can be purchased. But it takes decades to teach people, to build competencies. Would it be right to discard these skills?
Indeed, we could have sold BelAZ to competitors from America or Japan. This would solve the problem in the short term. But what would it mean to sell an enterprise to a competitor? It would be shut down in a few years or, at best, would turn into an ordinary assembly shop. Competences would drain to other countries. The vacated market would soon be taken by other manufacturers. And who would benefit the most from it? Not the Belarusian company. The USA or Japan.
This policy of the Belarusian state still had many critics. Meanwhile, BelAZ continued to develop new models of dump trucks, implement innovations and win international competitions. Pavel Mariyev, BelAZ Director General, was one of the first in the country to be awarded the Hero of Belarus title for his selfless labor and exceptional merits.
In the 2006, Aleksandr Lukashenko paid another visit to the Zhodino enterprise. This time it was an absolutely different factory. The president was shown the latest development - a dump truck with the carrying capacity of 320 tonnes.
“I was astounded to see these huge shops, the area full of component parts. I was especially struck by vehicle bodies. Well, you probably know better than me what was happening here back then. On my second visit I saw your smiling faces, beautiful vehicles. We already reached some good level of production. It is a unique enterprise for our country. It is a symbol of our country. It is a pride of our country. Only smart people can make such a powerful, beautiful vehicle. A rare country can make such machinery,” Aleksandr Lukashenko said recalling his visit to BelAZ.
No matter what was going on in the world economy, the Belarusian government did not abandon its enterprises.
“BelAZ keeps its standards high at the level of world manufacturers. I think the plant accounted for some 30% of the world market back then. BelAZ had its difficult times, too. However, the company management did their best to pay salaries to their employees on time and in full, even in the most difficult times. The public control at an enterprise, when the government acts as a guarantor, is a big advantage,” Aleksandr Dobrovoltsev, a heat-treater at the thermogalvanic shop, said. “The plant purchases new equipment. When I came here to work in 2004, the plant had not this line here, for example. It was installed much later. In other words, the plant continuously upgrades its production, and also expands and increases the output. We are trying to keep up with the times!”
How much the biggest BelAZ dump truck can carry
Today, BelAZ comprises eight large enterprises united into one holding company. The plant produces 550 modifications of mining equipment for work in different climatic conditions. BelAZ sells its products to 80 countries. The world's largest dump truck is BelAZ-75710 - its carrying capacity is 450 tonnes. It could transport even more during the tests!
Just imagine: this truck is the size of a big house. Its body can hold a playground. A couple of cars or a typical one-room apartment can fit in its engine compartment. Its power is the same as a two-section diesel locomotive or four Bugatti Veyron Grand Sport - whatever you would like to compare it to. This BelAZ truck can move a brick house with its foundation, roof, furniture and tenants at a speed of 60 km/h. It is no surprise that this dump truck has been included in the Guinness Book of Records and the CIS Book of Records. The head of state test drove this truck in 2013.
“Look, the leading countries, except for Germany, probably, are ranting and raving today. These wars and conflicts are rooted in the economy. And we are holding on like the Brest Fortress during the war: in difficult times we did not stop, you did not stop, but built a huge factory to produce vehicles of tomorrow. This 450-tonne truck is a vehicle of tomorrow! 90 tonnes more than what you are producing now. Most importantly, you have been the first to do it. This is amazing. Well done!” Aleksandr Lukashenko said.
BelAZ's latest developmentsBelAZ surprises everyone with its new developments every year. It has already assembled a 220-tonne diesel trolley truck and presented its battery-powered dump truck. The most promising development, however, is an entirely robotic complex. This is the technology of the so-called
Intelligent Mine, where unmanned dump trucks and front-end loaders work together. They are controlled remotely. It can be done from anywhere in the world. The productivity of robotic dump trucks is 20% higher, because they can work continuously in the toughest conditions.
Young people willingly join BelAZ's workforce. “There is probably an opinion (at least about BelAZ) that state-owned means stable. Some of my friends work in private firms and they do not get the same salary as I do. They also have no stability in what concerns their employment: you can work and earn good money today, and look for another job tomorrow,” Aleksandr Avsyuk, a mechanical assembly fitter at the truck and tractor assembly and testing shop, said.
Why BelAZ faced new sanctionsIt has recently become known that new sanctions have been imposed against BelAZ and MAZ. The heads of the enterprises were put on the USA sanctions list. Do you know the reason? The U.S. Department of the Treasury is unhappy with the “ongoing brutal crackdown against the pro-democracy movement and civil society surrounding the fraudulent August 2020 presidential election.” They simply seem to be annoyed with our successes and the company's resilience.
Just imagine: this truck is the size of a big house. Its body can hold a playground. A couple of cars or a typical one-room apartment can fit in its engine compartment. Its power is the same as a two-section diesel locomotive or four Bugatti Veyron Grand Sport - whatever you would like to compare it to. This BelAZ truck can move a brick house with its foundation, roof, furniture and tenants at a speed of 60 km/h. It is no surprise that this dump truck has been included in the Guinness Book of Records and the CIS Book of Records. The head of state test drove this truck in 2013.
“Look, the leading countries, except for Germany, probably, are ranting and raving today. These wars and conflicts are rooted in the economy. And we are holding on like the Brest Fortress during the war: in difficult times we did not stop, you did not stop, but built a huge factory to produce vehicles of tomorrow. This 450-tonne truck is a vehicle of tomorrow! 90 tonnes more than what you are producing now. Most importantly, you have been the first to do it. This is amazing. Well done!” Aleksandr Lukashenko said.
BelAZ's latest developmentsBelAZ surprises everyone with its new developments every year. It has already assembled a 220-tonne diesel trolley truck and presented its battery-powered dump truck. The most promising development, however, is an entirely robotic complex. This is the technology of the so-called
Intelligent Mine, where unmanned dump trucks and front-end loaders work together. They are controlled remotely. It can be done from anywhere in the world. The productivity of robotic dump trucks is 20% higher, because they can work continuously in the toughest conditions.
Young people willingly join BelAZ's workforce. “There is probably an opinion (at least about BelAZ) that state-owned means stable. Some of my friends work in private firms and they do not get the same salary as I do. They also have no stability in what concerns their employment: you can work and earn good money today, and look for another job tomorrow,” Aleksandr Avsyuk, a mechanical assembly fitter at the truck and tractor assembly and testing shop, said.
Why BelAZ faced new sanctionsIt has recently become known that new sanctions have been imposed against BelAZ and MAZ. The heads of the enterprises were put on the USA sanctions list. Do you know the reason? The U.S. Department of the Treasury is unhappy with the “ongoing brutal crackdown against the pro-democracy movement and civil society surrounding the fraudulent August 2020 presidential election.” They simply seem to be annoyed with our successes and the company's resilience.
“By and large, such a decision by the American authorities did not come as a surprise to Belarus. It is difficult to expect anything else from a country that by inertia keeps positioning itself as the master of the world's destinies, that continues to believe in its own exclusivity, infallibility and impunity. Another thing is indicative. The imposition of sanctions against successful civilian enterprises of Belarus is an epitome of the hypocrisy of the U.S. administration whose representatives use every opportunity to declare their “support” for the Belarusian people,” the Belarusian Ministry of Foreign Affairs commented on the U.S. recent sanctions.
The Ministry of Foreign Affairs have no doubts that the teams of MAZ and BelAZ who have already gained significant experience in working under sanctions, will successfully handle any new challenges.
“Despite significant shocks, 2022 was a very successful year for us. We shipped over $800 million worth of products to the Russian Federation alone. These were 866 dump trucks of different carrying capacity, special-purpose equipment, and machinery for underground works. For us, the year 2022 was one of the most successful in the history in terms of shipment to the Russian Federation market. The total sales exceeded $1 billion. We also got off to a fairly good start in the first quarter of 2023. Based on the current order portfolio, this year we expect to surpass the results of 2022,” Vasily Shostak, the Deputy Director General for Marketing and Export Policy, said.
How BelAZ develops cooperation with RussiaOf course, saying that sanctions have no effect on the work of Belarusian enterprises would be a lie. Yes, they create certain problems. However, Belarusians have probably got accustomed to all kinds of external pressure and they can adjust to any situation. For instance, an upgraded BelAZ model will soon roll off the production line. The truck will be equipped with a Russian internal combustion engine. This will be a true hit! According to the company's employees, the Russian engine has such a bright yellow color that it has been nicknamed ‘canary'.
“We can say that all the dump trucks we sell today on the Russian Federation market are, in one way or another, a joint product, because a big part of the materials and components we use are produced in the Russian Federation. Currently, we are working on a line of our dump trucks equipped with Russian-made internal combustion engines,” Vasily Shostak said.
Despite serious external pressure, the year 2022 showed that not only BelAZ, but the entire Belarus has managed to adapt to the new realities. The country has become stronger and more confident. And it will continue to be so.
Written by belta.by