Products
The production capacity will be 300 thousand tons per year. At the same time, it is possible to produce both 300 thousand tons of brand A soda per year and 300 thousand tons of grade B soda per year, depending on the needs of the market. Planned product range:
- Soda ash brand A - 240 thousand tons;
- Soda ash grade B - 60 thousand tons.
This investment project (the "Project") plans to build a plant for the production of soda ash with a capacity of 300 thousand tons per year in the Aral district of the Kyzylorda region using local sources of raw materials.
Company
AralSoda LLP is an affiliated enterprise of AralTuz JSC, the largest salt producer in Kazakhstan and the CIS. The company was established to implement the Soda Ash Production Project.
Market
- In the period 2017-2019 a stable growth rate (CAGR) of the soda ash market was observed at 1.9%. At the same time, during the COVID-19 pandemic and the introduction of quarantine measures, a slight drop in the soda market was noticeable, which was subsequently restored. According to IMARC forecasts, the soda ash market will reach 65.6 million tons by 2026, with an average annual growth rate in the period 2021-2026. at 1.7%.
- Over the past 5 years, the volume of supplies of soda ash to Kazakhstan varied within 302-350 thousand tons. According to Merchant Research & Consulting Ltd, demand for soda ash is projected to increase during the period 2022-2025. with a compound annual growth rate (CAGR) of 4.7%. Kazakhstan imports soda ash in large volumes, since the country does not have its own production of this product.
- Availability of infrastructure. For the construction of the plant, a plot of 100 hectares is provided, leased for a period of 49 years by the akimat of the Aral district of the Kyzylorda region. Land plots have also been allocated for the construction of a sludge storage - 501.42 hectares, a protective cofferdam of the sludge storage - 300 hectares; engineering infrastructure for the sludge storage (road, technological pipelines) - 2.17 hectares and for infrastructure facilities (roads, railways, fiber optic lines, power supply, gas supply, roads) - about 170 hectares. The construction of engineering infrastructure facilities (water supply, gas supply, railway siding, power supply) will be carried out at the expense of public funds.
- Contractual elaboration of the Project. To date, there are preliminary agreements with local soda consumers: Aluminum of Kazakhstan JSC for 140 thousand tons per year, AZKhS JSC - 130 thousand tons, Orda Glass Ltd LLP - 50 thousand tons, Kazphosphate LLP » - 20 thousand tons.
To implement the Project, funding in the amount of USD 329,570 thousand is required, including:
- 80% (USD 263,656 thousand) - debt financing (subject to collateral);
- 20% (65,914 thousand US dollars) - own funds of AralSoda LLP.
