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New oil extraction plant to be built in Kazakhstan

A modern plant will be built this year in East Kazakhstan region. It will produce sunflower oil and high-protein cakes, the correspondent of Khabar 24 reports.

The end products are planned to be exported abroad: to China, Uzbekistan, Tajikistan, Iran, Turkey and the countries of the European Union. For this purpose, the representatives of QAZAQ-ASTYQ GROUP LLP have involved the Development Bank of Kazakhstan in the project to finance this new domestic enterprise.

The capacity of the modern plant QAZAQ-ASTYQ GROUP LLP is 1000 tons of raw materials processing per day for sunflower seeds and 800 tons for rapeseed or flax seeds. The loan amount from the Development Bank of Kazakhstan accounted for almost KZT4.5 billion for a period of 3 years, within the framework of the Nurly Zhol State Program. The funds provided by the Bank will be used to purchase raw materials, oilseeds, materials and services.

Vladimir Lee, Senior Banker of the Development Bank of Kazakhstan:

- In general, the project complies with the Bank's key mission. Furthermore, the implementation of the project is aimed at promoting Kazakhstani processed products exports.

The major specialization of the enterprise is to produce unrefined vegetable oil and oil cakes. The plant will export more than 90% of its finished products. This will boost domestic agricultural producers to increase the land under oil crops cultivation.

Altynbek Nuratuly, Deputy Director of QAZAQ-ASTYQ GROUP LLP:

- The plant was built using modern technology. There will be a multiplier effect. This year we will start processing these raw materials and start producing vegetable oil.

Modern large-scale oil refineries have a very good socio-economic multiplier effect in the form of taxes and job creation. In the future, over two hundred people will be employed at QAZAQ-ASTYQ GROUP plant.

Kuanysh Mukazhanov, Director of the Insurance Department of KAZAKHEXPORT EIC JSC:

- KAZAKHEXPORT has provided its insurance coverage here. The insurance coverage was used as collateral for the DBK loan. KAZAKHEXPORT took on the credit risk of QAZAQ-ASTYQ GROUP.

The second stage of the project intends to launch a refined vegetable oil bottling shop.

Authors: Asem Utesheva, Berik Zhobalaiuly