Products

• Reinforced concrete floor slabs, elements of buildings and structures, piles, pipes, other products

Project

The project provides for the construction of a plant for the production of reinforced concrete products using vibration compression technology to cover the needs of the regional market of East Kazakhstan region and nearby regions (Abai and Pavlodar regions). Thanks to vibration compression, it is possible to obtain denser and more durable products, which is important for construction projects with high loads and stringent durability requirements. Vibropressing is actively used to produce products with precise geometric dimensions. The plant's capacity will be 300 thousand square meters of finished products per year. The project is planned to be implemented in the East Kazakhstan region.

Initiator

Akimat of the East Kazakhstan region

Market

• The global market for cement and concrete products in 2022 reached 180,2 trln. tenge, and by the end of 2023 it is planned to grow to 195,1 trln. tenge. Experts at The Business Research Company expect it to grow to 262,5 trln. tenge by 2027.
• There is also an increase in the Kazakh market. A study of the reinforced concrete building materials market showed that in 2014, manufacturers collectively produced about 2 million square meters. By the end of 2021, the volume of production of concrete products reached a record 3.3 million square meters, which is 10.0% more than in 2020. The growth continues this year, so in May 2023, the production of reinforced concrete increased by 12.5% compared to the same month in 2022 and amounted to 0.2 million square meters.

Investment attractiveness of the project:

The amount of investments–3 980 mln. tenge NPV – 2 708 mln. tenge IRR -23.1% Payback period of the Project – 4.1 years

What is the attractiveness of the project?

• High demand for building materials. Infrastructure is actively developing in the region, including the construction of residential buildings, roads, industrial facilities and social facilities. Major infrastructure projects are being implemented in East Kazakhstan, including the construction of highways, railways, and airports, which creates significant demand for reinforced concrete products.
• Availability of raw materials. There are cement plants in the region that ensure the availability of raw materials for the production of reinforced concrete products. There are deposits of crushed stone and sand in East Kazakhstan, which can be used as components for the production of concrete

Investment proposal

The Project requires financing in the amount of 3 980 mln. tenge:

• 80% (3 184 mln. tenge) – debt financing (if collateral is available) or investor participation;
• 20% (796 112 thousand  tenge) – 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.