Investment Projects

Modernization of the Irtysh Chemical and Metallurgical Plant

  • Indicator Results
  • Investment amount, thousand US dollars 205 177
  • NPV of the Project thousand, US dollars 79 102
  • IRR, % 19,7%
  • EBITDA yield, %
  • Payback period, years 9,08
  • Discounted payback period, years - -

Products

Design capacity: 1,385 tons of products per year.

Project

Within the framework of the Project, it is planned to modernize the Irtysh Chemical and Metallurgical Plant in order to expand the production of products from rare metals. The design capacity of the plant will be 1,385 tons of products per year.



Company

DINATRON –KAZAKHSTAN Ltd LLP is a specially created company, part of the DINATRON HOLDING, operating on the basis of the Irtysh Chemical and Metallurgical Plant, leading its history in the production of rare and rare earth metals since 1958. The company's goal is to create a new modern complex for the production of rare metals and products from them, including metallurgical facilities using forging, sheet rolling and pipe rolling production.

Market

  • The dynamics of sponge titanium production in 2016-2020 had a steady positive trend. The volume of production of this product increased from 170 thousand tons in 2016 to 210 thousand tons in 2020 with a CAGR of 5.4%. In 2020, China was the leader in the production of sponge titanium with a volume of 107 thousand tons. Kazakhstan took the fourth place in this indicator with a volume of 15 thousand tons.
  • According to 360ResearchReports forecast, it is expected that the titanium products market will continue to demonstrate a steady positive trend until 2026 with an average annual growth rate of 1.3%.
What is the attractiveness of the project?
  • Import substitution and expansion of production. There are no enterprises in the Republic of Kazakhstan for the production of high-grade products from rare non-ferrous metals. The implementation of the project will allow deeper processing and production of high-grade finished products - ingots, powders, rods, wires, pipes, shaped products made of niobium, tantalum, zirconium, titanium and their alloys, which will further cover the domestic demand for these types of products.
  • Developed infrastructure. The plant is located 70 km from Ustkamenogorsk, in the village of Pervomaisky and is located in an ecologically safe distance from large settlements. The territory of the Plant is located in close proximity to the highway leading to Ust-Kamenogorsk, and also has its own railway entrance.
Investment offer

The Project requires financing in the amount of 205,177 thousand US dollars, of which:
  • 70% (US$ 143,623.9 thousand) - debt financing (if collateral is available);
  • from 30% (61,553.1 thousand US dollars) - investor participation.
The proposed financing structure and measures of state support 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.


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