For example, in 2021, a new upscale oil extraction plant of QAZAQ-ASTYQ GROUP LLP, specializing in the production of sunflower oil for further export of finished products to destinations such as China, Uzbekistan, Tajikistan, Iran, India, Pakistan, Afghanistan, Turkey and the European Union will appear in the East Kazakhstan region.
The main specialization of the enterprise - the production of vegetable oil - was not chosen by chance, as almost 80% of the production capacity of the oil and fat industry in Kazakhstan is specialized in its production. Upon completion of construction and launch of the enterprise, more than 200 people will be employed on a permanent basis”, - said Altynbek Nuratuly, Deputy Director of QAZAQ-ASTYQ GROUP LLP.
According to representatives of QAZAQ-ASTYQ GROUP LLP, the new plant is a comprehensive approach to the full cycle of its own production, which guarantees the company a competitive advantage. It is not only about modern equipment, meeting high quality standards, raw materials and marketing of finished products, but also about highly qualified personnel, providing the work of the company at a high level. Due to high automation of production it was decided to invite experienced specialists from Ukraine, the world leader in the production of plant oils, to key management positions in order to ensure the quality of finished products. It should be noted that amid such a high level of self-sufficiency and consequently strong position of Kazakhstani companies in the domestic market, local producers are strengthening their export direction. According to the Customs Control Committee of the Ministry of Finance of Kazakhstan, vegetable oil exports in 2018 reached a record 151 800 tons (+43% compared to 2017). Sunflower oil occupies the main share in shipments, with 67 900 tons supplied to foreign markets during the reporting period compared to 45 000 tons a year earlier. The biggest buyer of this type of oil was China with the volume of 28 thous. tons (41% of all export shipments). Tajikistan (19 500 tons, or 29%) and Uzbekistan (18 600 tons, or 27%) ranked second and third among the top importers in 2018.
"The plans are to supply more than 90% of the finished products of the oil extraction plant under the construction to foreign markets (export). Negotiations with potential partners are already under way to conclude contracts for the supply of Kazakhstani vegetable oil to China, Uzbekistan and European Union countries. Our long-term plans additionally set up re-production of raw materials for production of unrefined hydrated oil, phosphatide concentrate, meal, which have great export potential and are widely used in animal husbandry and can be exported to such countries as Uzbekistan, Iran, India, Pakistan and others”, - noted Altynbek Nuratuly, Deputy Director of QAZAQ-ASTYQ GROUP LLP.
QAZAQ-ASTYQ GROUP LLP has attracted financing from Development Bank of Kazakhstan JSC (a subsidiary of Baiterek National Management Holding JSC, hereinafter - the Bank, DBK) to provide export supplies of vegetable oil to foreign markets.
“Kazakhstani export-oriented enterprises have long been provided with effective support from Development Bank of Kazakhstan, which we have taken advantage of. We are quite satisfied with the obtained financing and hope for further cooperation with DBK”, - said Altynbek Nuratuly, Deputy Director of QAZAQ-ASTYQ GROUP LLP.
DBK loan amounted to KZT 4.4 bln. for 3 years. The export operation was financed under the state program of infrastructure development “Nurly Zhol” for 2015-2019 to support Kazakhstan's exports of goods in the manufacturing industry. It is noted that the funds provided by the Bank will be used to purchase raw materials (oilseeds), materials and services.
According to representatives of DBK, the total cost of Qazaq-Astyq Group LLP project for construction and launch of oil extraction plant amounted to KZT 12.5 bln., of which KZT 4.4 bln. was provided by DBK for the purpose of export supplies of finished products.
“In the light of rising prices for vegetable oil, there is a very acute issue of development of domestic production in the sphere of oil processing. Processors encourage domestic agricultural producers to increase sown areas of oil crops, which will have a positive impact on increasing the harvest of oil crops and meeting the needs of the domestic market for vegetable oil, among other things. The project fully complies with the Bank's key mission as one of the main institutions of state support for Kazakhstani non-resource exports, and will also contribute to promotion of Kazakhstani processed products exports, including to the neighboring China. Taken together, this will allow us to consolidate and strengthen our position in export markets,” - said Vladimir Li, Senior Banker of the Client Relations Directorate of DBK.
Qazaq-Astyq Group LLP was also supported by Export Insurance Company KazakhExport JSC through a KZT 4.4 bln. loan insurance, which is an indicator of the successful synergy of the country's two financial institutions (subsidiary structures of Baiterek Holding). DBK and KazakhExport Export Insurance Company JSC have been working in successful tandem since the beginning of 2015; to date, 14 exporters have been supported with the joint participation of DBK and KazakhExport for a total of KZT 77.7 bln.
“Kazakhstan sells too many raw materials, including agricultural products. Not only oil and metals are exported to China, but also oil crops and cotton, and wheat goes to Uzbekistan. We aim to correct this with the help of support for such projects. Modern oil refineries with large capacity give a very good socio-economic effect in the form of taxes and job creation. As a result of oilseed processing, the market receives not only oil but also meal and cake, which go to feed the poultry farms and also for export. It is encouraging that, despite the pandemic and the problems, entrepreneurs are not scaling back investment projects and look to the future with optimism,” - said Kuanysh Mukazhanov, director of the Insurance Department of KazakhExport EIC.
