Press releases

DBK: Domestic chemical giants increase production and export performance

Such an increase in performance indicators is observed for the second year in a row. Last year, the industrial output in the sector reached 401.1 billion tenge.

In particular, the production of phosphate fertilizers and their output increased by 31% compared to last year for the same period.

It is remarkable that more than 90% of phosphorus fertilizers are produced in the South of the country, at the enterprise Kazphosphate LLP enterprise in Zhambyl region. Now the enterprise fully covers the needs of the domestic market and also makes significant competition on the foreign markets. The production output of mineral fertilizers of Kazphosphate LLP in 2017 amounted to 297 690 tons, to 256 355 tons in 2018, and to 324 975 tons for 10 months of 2019. By the end of this year, it is planned to reach 400 000 tons.

Thus, more than 75% of products are sent to the export markets of far-abroad and near-abroad countries. The plant managed to achieve such indicators thanks to the financial support of the Development Bank of Kazakhstan, which allocated a loan of 7 billion tenge. The funds were allocated within the framework of Nurly Zhol state program and support for domestic exporters for the purchase of raw materials and other expenses associated with the pre-export operation. As part of the 2015-2019 SPIID program, the enterprise implemented the Reconstruction of the EFK-1 manufacturing system at the Taraz branch of Kazphosphate LLP. Mineral fertilizers - the investment project bringing the capacity to 220 thousand tons of P2O5 per year, which allowed to increase the production of mineral fertilizers to 300 thousand tons per year from the level of about 140 thousand tons.

Казфосфат_цех 2.jpg

"We are glad that the government, via the Development Bank, strongly supports domestic exporters and understands the need to increase Kazakhstan's exports of processed products. Now, thanks to the financial assistance of DBK, we were able to implement investment projects in order to increase production and sales, and we showed such favorable results. Timely financial support and implementation of our projects gave a positive multiplier effect for the economic development not only in Zhambyl region, but also in the Republic as a whole, and we ensured the growth in the prosperity of our employees. Our enterprise employs 6 200 people, all of them are provided with a permanent job, and more than 20 SME companies are developing and operating around our company", said Nurziya Lesbekova, Deputy Chairman of the Board of Kazphosphate LLP.

In turn, the production of nitrogen fertilizers decreased by 1.8%, amounting to 294.4 thousand tons. However, given the growth dynamics of the sector, the indicators are generally consistent: in 2017, the volume of production of nitrogen fertilizers amounted to 302.3 thousand tons, in 2018-to 299.9 thousand tons. It is worth mentioning that 87% of mineral and chemical nitrogen fertilizers are produced in Mangistau region, where the plant of KazAzot JSC is located.

КазАзот.jpg

The enterprise continues large-scale modernization of production that will allow to increase further production capacities on release of finished goods. For these purposes, the Development Bank of Kazakhstan issued a loan of 30 billion tenge for up to 10 years. The total cost of the project is 56.087 billion tenge. Moreover, now DBK supports the desire of the enterprise to increase export performance. The Bank approved financing of the company's expenses for the purchase of raw materials and other expenses related to the pre-export operation in the total amount of 3 billion tenge.

"The financial support provided by us allowed the enterprise to increase the annual productivity of commodity products from 300 to 340 thousand tons. However, the most important thing - as a result of modernization, it was possible to reduce the cost price of production of ammonia, weak acid, nitrogen mineral fertilizers - is a significant advantage of KazAzot JSC in the world of nitrogen fertilizers", said Anna Yaroshenko, senior banker of the Customer Service Department, DBK.

According to the representatives of KazAzot JSC, now the enterprise supplies finished production to the markets of Ukraine, Turkmenistan, and Russia. Currently, the share of export indicators from the overall production is 27%.

АО «Банк Развития Казахстана»
проспект Мәңгілік Ел, здание 55 А, н.п. 15 Z05T3E2 Астана
+7 (7172) 79 26 79