A PLANT ON PRODUCTION OF FOODSTUFF AND SEMI-FINISHED PRODUCTS WILL BE CONSTRUCTED IN ALMATY REGION

On May 16, 2017 in Astana, an investment contract was signed between the Investment Committee of the Ministry for Investment and Development of the Republic of Kazakhstan and Mareven Food Tien Shan LLP – a Kazakhstani project of a large multinational company Mareven Food Holdings Limited.

The signing of the investment contract was preceded by the conclusion in April this year of a Memorandum of Understanding between Kazakh Invest and Mareven Food Holdings Limited, the subject of which is to support the investment priority project and create favorable conditions for its implementation from the Kazakh side.

According to the Entrepreneurship Code of the Republic of Kazakhstan, when investing an investment contract, the investor has the right to receive benefits such as a reduction in the amount of the calculated corporate income tax by 100%, the application of the coefficient 0 to land tax rates and the calculation of property tax at a rate of 0 percent to the tax base. Also, exemption from customs duties on import of technological equipment and components to it, raw materials and materials for the term of the investment contract is granted, but not more than five years from the date of registration of the investment contract.

Mareven Food Holdings Limited specializes in direct investments in infrastructure projects for the production of consumer food and semi-finished products, processing of agricultural products, as well as investments in the creation and development of modern distribution systems in the regions of presence. The shareholders of the holding have a successful experience in implementing investment projects in more than 70 countries.

In 2015, the company launched the investment project "Mareven Food Tien Shan" in Kazakhstan, which includes the construction of a factory on the territory of Almaty region for the production of food and semi-finished products. The total volume of planned investment in Kazakhstan before reaching the projected capacity will amount to several tens of millions of US dollars. The company will offer a wide range of high-quality food products and semi-finished products from a local producer at an affordable price and will allow to provide the products of the domestic market of Kazakhstan and export to neighboring countries of the Eurasian region. The main share of raw materials for production will be purchased from Kazakhstan suppliers. The implementation of this project will create up to 600 new jobs for the local population. Legal support for the process of concluding an investment contract is carried out by the international consulting company EY Kazakhstan.

The Investment Committee of the Ministry for Investment and Development of the Republic of Kazakhstan, through the national company Kazakh Invest, provides "Mareven Food Tien Shan" LLP assistance in resolving issues arising during the implementation of the project. At present, work is underway to introduce amendments to the legislation of the Republic of Kazakhstan on expanding the list of priority activities, as well as excluding certain norms and restrictions from the tax code that hamper the company's investment activities. All these issues are planned to be solved before the launch of the project, which is scheduled for early next year.

Based on its main principle "Helping the investor without hindering", "Kazakh Invest" will provide full assistance to foreign investors and support of each investment project throughout the entire period of its implementation. Investors can always contact the company by phone +7 (727) 620620 or by e-mail invest@invest.gov.kz and get professional advice on all matters of investment and doing business in Kazakhstan.

 

Reference Information:

The state institution "Investment Committee of the Ministry of Investment and Development of the Republic of Kazakhstan" is the department of the Ministry of Investments and Development of the Republic of Kazakhstan. The tasks of the Committee are: participation in the formation and implementation of the state policy in the sphere of creation, functioning and abolition of special economic zones and implementation of the state policy of supporting investments.

KAZAKH INVEST National Company JSC* is the official body in the field of attracting investments to the Republic of Kazakhstan. It has a wide network of its representatives abroad. 
KAZAKH INVEST National Company JSC provides a full range of services to support investment projects from idea to implementation on the principle of "one-stop shop" and acts as Unified Coordination Center for Special Economic Zones of the Republic of Kazakhstan. 
*According to the Decree of the Government of the Republic of Kazakhstan #100  dd 01.03.2017 «KAZNEX INVEST» National Export and Investment Promotion Agency» JSC  was renamed «KAZAKH INVEST» National Company JSC.

Mareven Food Holdings Limited specializes in direct investments in infrastructure projects for the production of consumer food and semi-finished products, for the processing of agricultural products, as well as for investments in the creation and development of modern distribution systems in the regions of presence. In Kazakhstan, the company opened LLP "Mareven Food Tien Shan" and started construction in the territory of Almaty region of a factory for the production of cooked food and semi-finished products.

EY Kazakhstan is a member of the Ernst & Young group of companies, an international leader in audit, taxation, legal services, transaction support and advisory services, including investment projects. EY Kazakhstan interacts with numerous companies of different economic sectors all over the world and in CIS countries, helping them to achieve business goals.