Products

At full capacity, the annual sales volume will be 20 million pieces of ceramic bricks per year. It is planned to sell 95% of the products on the domestic market of the Republic of Kazakhstan, the rest will be exported to Russia.

Project

The project concerns the construction of a ceramic brick production plant in the region of East Kazakhstan. The main raw material (clay) will be extracted from a local deposit.

 The East Kazakhstan region and neighbouring regions are experiencing a growing demand for building materials in connection with the construction of housing and infrastructure. 

The plant will enable bricks to be produced locally, reducing dependence on imports and potentially lowering the price of building materials.The region has road and energy infrastructure, which creates the possibility of implementing the project and can stimulate economic growth. The factory can produce not only standard bricks but also specialised products such as decorative bricks, refractory bricks or bricks for facades. 

This can attract a wider range of customers and expand market opportunities.

Initiator

Akimat of the East Kazakhstan region.

Market

• According to the report of the National Statistics Agency, the volume of the construction industry in Kazakhstan will grow at an average annual growth rate of 9% in 2018-2022. At the same time, Marketline predicts that the construction industry in Kazakhstan will grow at a CAGR of 8% in 2023-2026.
• In 2022, the production of ceramic products in Kazakhstan in value terms amounted to 37 637 mln. tenge, which is 47% more than in 2021. 
• The import of ceramic bricks to the Republic of Kazakhstan in 2022 will amount to 1,002 thousand tonnes, and the export of these products from the Republic of Kazakhstan will amount to 28 tonnes.

Investment attractiveness of the project:

• Investments – 2 444 млн. тенге;
• NPV of the Project – 586 000 тыс. тенге;
• IRR – 25.1%; 
• The payback period is 6.60 years; 
• The discounted payback period is 11.69 years.

What is the attractiveness of the project?

• The availability of a raw material base. The East Kazakhstan region has access to key natural resources such as clay and other minerals used in the production of ceramic bricks. This reduces the cost of raw materials and logistics.
• The use of local resources and access to cheap energy sources (there is access to coal and electricity) can reduce production costs.
• Government support. The project is included in the list of priority sectors for state support, under which a number of benefits, preferences and in-kind contributions can be obtained.
• The construction market in the East Kazakhstan region is characterised by a large volume of housing and infrastructure construction.
• Expansion of the plant's product range: standard bricks, specialised products such as decorative bricks, refractory bricks or bricks for facades.