Profitability of the project

Products

The project is focused on the sale of products on the territory of the Republic of Kazakhstan and export to Russia, Uzbekistan and China. The annual product range at full capacity is planned as follows: wheat starch - 60,300 tonnes; dry gluten - 17,000 tonnes; glucose-fructose syrup - 30,000 tonnes; modified starch - 48,600 tonnes; bran - 40,000 tonnes.

Project

It is planned to build and equip a production complex for deep processing of wheat grain in the region of East Kazakhstan.  

The implementation of the project will make it possible to

Increase the processing component of the gross regional product of the East Kazakhstan region;

• Create up to 500 jobs.

Initiator

Akimat of the East Kazakhstan region

Market

• The products produced under the project are planned to be sold both on the domestic market of the Republic of Kazakhstan (40% of the total sales volume) and for export (60%).
• In 2021, the volume of production of starch, inulin, wheat gluten, dextrin and modified starch in the Republic of Kazakhstan will be 45 thousand tonnes, which is 3% more than in 2020. The average annual growth rate of production in the period from 2017 to 2021 was 38%.Over the past 5 years, the import of wheat gluten has decreased by 91% in percentage terms.
• Exports of wheat gluten have shown positive dynamics for 5 years. The average annual growth rate over 5 years is 476%.

Investment attractiveness of the project: 

Investments - 66 892 млн. тенге

NPV of the Project -80 015 млн. тенге

IRR -32.4% Payback period -4.35 years

What is the attractiveness of the project?

• Economic potential. The East Kazakhstan region has significant agricultural resources and is traditionally engaged in grain production. The construction of the plant will enable the processing of local raw materials, which can contribute to the growth of the region's economy and create new jobs.
• Import substitution. The plant can reduce the country's dependence on imports of similar products, contributing to economic security and sustainability.
• Government support. There is an extensive list of government support instruments through specialised organisations to support the agricultural sector.

Investment proposal

The project requires funding of 

66 892 млн. тенге, of which

100% (66 892 млн. тенге) - investor participation.

The proposed financing structure and government support measures are indicative, the final structure of financing and participation in the project will be determined based on the results of joint negotiations with the investor.