Products

Organisation of plywood production based on an existing business with an annual volume of 50,000 cubic metres. Number of jobs created: 40 people. Product sales market: Kazakhstan (50%), China (50%).

Project

As part of this investment project, it is planned to purchase equipment, special equipment and to carry out construction and installation work for the construction of the plant. There is a plot of land. There is a fixed forest area for the formation of a raw material base. Place of project implementation: Due to the availability of raw materials, relatively low labour costs and production facilities in Kazakhstan, it is possible to ensure competitive prices for plywood compared to international producers.

Initiator

Initiator Leninogorsky LPH Limited Liability Partnership

Market

• The East Kazakhstan region is close to the border with China, which significantly reduces logistics costs and shortens the delivery time of products to the Chinese market. China is one of the largest importers of wood-based materials and plywood, which makes exporting to China very promising.
• Growing demand in China: The construction, furniture and automotive industries are actively developing in China, stimulating high demand for plywood. Plywood is used in construction, furniture, packaging and other applications, providing a stable market.

What is the attractiveness of the project? 

• Advantageous location. The East Kazakhstan region has extensive forest resources that can be used for plywood production. This ensures long-term availability of raw materials, which reduces production risks and costs.
• The region has already developed an infrastructure for logging and wood processing, which creates favourable conditions for organising plywood production. 
• The East Kazakhstan region has a well-developed transport infrastructure, including roads and railways linking Kazakhstan to China. This facilitates the delivery of products both to the domestic market and abroad.
• Government support. Government support and benefits for projects related to industrial development and exports can help reduce the financial risks and costs of the project.

Investment proposal

The Project requires financing in the amount of 2 507 mln. tenge, including:

• 71% (1 785 mln. tenge) – borrowed capital; 
• 29% (722 535 thousand tenge) is equity.

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.