Products
Commissioning of the Project is planned in 2024, reaching the design capacity in 2025. Upon reaching full capacity, the annual production volumes will be: polypropylene bags - 2,029 tons per year and SVV - 220 tons per year. It is planned to sell products of the following sizes and densities: bags - 45x75 (60 g/sq.m.), 56x96 (74 g/sq.m.), 56x92 (74 g/sq.m.), 50x64 (74 g/sq.m.), 60x60x10x15 (65 g/sq. m.) and ZVV - 13x3x2.5 m.
Project
This investment project (the “Project”) provides for the construction of a plant for the production of polypropylene sacks and SBB with a capacity of 2,029 tons and 220 tons per year, respectively. The plant will be located on the territory of the FEZ "ChemPark Taraz" in the Zhambyl region. Finished products are planned to be sold in Kazakhstan. The project is aimed at creating about 212 new jobs and manufacturing export-oriented products.
Company
Arion Invest Eco-Plast LLP is a design company established for the construction of a plant for the production of polypropylene bags and pollutants.
Market
- In 2021, the global packaging market amounted to USD 1,002.5 billion. According to Mordor Intelligence forecasts, by 2027 this indicator will reach 1,275.1 billion US dollars, an increase of 21.3% compared to 2022.
- In 2020, the volume of production of polypropylene bags in the Republic of Kazakhstan amounted to 2,720 thousand pieces in physical terms, having decreased by 54% compared to 2017.
- The average annual growth rate of imports of polypropylene bags in the Republic of Kazakhstan for the period 2018-2022 amounted to 22.5%. In 2022, the volume of imports to the Republic of Kazakhstan reached 39 million US dollars. In 2022, these products were imported to the Republic of Kazakhstan, mainly from China (41%), Turkey (31%) and the Russian Federation (5%).
Availability of developed infrastructure. To ensure the uninterrupted operation of the industrial facility, an appropriate infrastructure has been created (water supply, electricity, heat supply, sanitation). The transport infrastructure is also developed: railways and roads are connected to the territory of the SEZ with access to the nearby regions of Kazakhstan and Kyrgyzstan.
Contractual elaboration of the Project. The initiator has concluded a number of off-take contracts with three major key consumers of polypropylene products.
Investment proposal
For the implementation of the Project, financing in the amount of 4,286 thousand US dollars (at the rate of 449 tenge) is required:
- 55% (USD 2,357 thousand) – debt financing (subject to collateral);
- 30% (1,286 thousand US dollars) - investor participation;
- 15% (643 thousand US dollars) - funds of the Initiator.
- 73% ($3,142 thousand) equipment;
- 16% (698 thousand USD) - other;
- 10% (446 thousand US dollars) - buildings and structures.
