Products
Full design capacity, which will be achieved in 2027, should result in the following annual sales: derivative HDP plastic granules – 2,316 tonnes; LDP plastic granules – 1,158 tonnes; PP plastic granules – 2,316 tonnes; ABS/polystyrene plastic granules – 1,158 tonnes; crushed LDP plastic – 1,158 tonnes; crushed PP plastic– 1,158 tonnes; crushed HDP plastic – 1,158 tonnes; crushed ABS/polystyrene plastic – 1,158 tonnes.
The plan is to sell product domestically in Kazakhstan.
Project
This investment project envisages the launch of derivative plastic granule and crushed plastic production of 12 thousand tonnes per year in Pavlodar, Pavlodar Oblast. The following five types of plastic waste will be used as product feedstock: high density polyethylene (“HDP”), low density polyethylene (“LDP”), polypropylene (“PP”), acrylonitrile butadiene styrene (“ABS”) and polystyrene. Today, the production site at the disposal of the Initiator has all the necessary infrastructure. The company also leased a land plot of 0.42 hectares for the placement and maintenance of a railway access track.
Company
Ak-Service LLP is a project company created to implement the Project. It holds a category 3 construction and assembly work license. In 2020, to implement the Project, the Company purchased a 6.3 ha industrial site with a covered warehouse and administrative block.
Market
- According to Technavio, the global market for plastic materials and synthetic resins was worth 808 billion USD in 2022. It is predicted that by 2027 the figure will reach 1,339 billion USD (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 thirdparty organizations for processing. By comparison, in 2019, only 30% of sorted plastic waste was recycled. The share of plastic waste recycling has increased due to the introduction of a ban on the disposal of plastic in landfills.
- Access to a raw materials base. In September 2023, there were 96 large companies operating in Pavlodar Oblast, as well as 3,557 small and medium-sized industrial companies. In 2022, the 16 waste collection companies operating in the oblast sorted 1,940 tonnes of plastic waste. Having the Project based in Pavlodar Oblast will create feedstock for production.
- State support. Project activities are recognised as a priority for state support and concessions, such as lower interest rates, land grants, tax breaks and others. Project activities are also actively supported by the Ecological Code, whereby landfill sites cannot accept plastic waste, plastic materials and polyethylene, polyethylene terephthalate packaging, while waste owners are obliged to ensure safe waste management themselves by transferring it to waste management companies.
The Project requires investment of 2,200 thousand USD (at the rate of 449.2 tenge), of which:
- 70% (1,540 thousand USD) - debt financing subject to collateral;
- 30% (660 thousand USD) – investor participation.
