Products

When reaching full design capacity, the following annual sales volumes are planned: granulate 600 tons, soft containers 800 tons, injection molding machine products 600 tons. The products are planned to be sold in the domestic market of the Republic of Kazakhstan.

Project

This investment project provides for the launch of production for the processing of industrial plastic waste, including used soft containers of big bags on the territory of the Serebryansk plant of inorganic production in Serebryansk, Altai district, East Kazakhstan region. The raw materials for the products will be industrial plastic waste coming from industrial enterprises in the region, as well as plastic household waste from a waste sorting plant.

Company

The initiator of the project is GAL INVEST LLP. To implement the Project, the Company has the opportunity to obtain production facilities equipped with all necessary production infrastructure.

Market

• According to Technavio, in 2022, the global market for plastic materials and synthetic resins amounted to 402,04 trln. tenge. It is projected that by 2027 the figure will reach 168,67 trln. tenge (CAGR – 10.5%).
• According to the Bureau of National Statistics of the Republic of Kazakhstan, in 2022, 148,501 tons of plastic waste were sorted in the Republic of Kazakhstan, 89% (132,810 tons) of which were sent to third-party organizations for recycling. For comparison, in 2019, only 30% of sorted plastic waste was recycled. Recycling of plastic waste has increased due to the introduction of a ban on the disposal of plastic in landfills.
• According to the data received from Kazzinc LLP and Vostoktsvetmet LLP, the total annual formation of plastic waste, including used big bags, is at least 4,000 tons.

Investment attractiveness of the project:

 The amount of investments – 2 787 mln. tenge

NPV – 2 878 mln. tenge

MIRR – 29,66%

Payback period – 3.6 years

Discounted payback period – 5 years

What is the attractiveness of the project?

• Access to the raw material base. There are 10 large mining enterprises operating in the region, which together form industrial plastic waste in the amount of at least 4,500 tons per year. The placement of the Project in the East Kazakhstan region will ensure the production of raw materials. 
• Government support. The activities within the framework of the Project are included in the list of priority sectors for providing state support and obtaining appropriate benefits and preferences, including subsidizing the interest rate on loans, in-kind grants, tax incentives, etc. The Project's activities are also actively supported by the Environmental Code of the Republic of Kazakhstan, according to which plastic, plastic and polyethylene waste, polyethylene terephthalate packaging are prohibited from being accepted at landfills, and waste owners are obliged to independently carry out safe waste management or ensure safe management by transferring waste to business entities engaged in waste management operations.

Investment proposal

The Project requires financing in the amount of 2,788 mln. tenge, including:

• 49% (1 366 mln. tenge) – debt financing (if collateral is available) or participation of a co-investor;
• 51% (1 422 mln. tenge) – participation of the initiator.

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.