Products
The factory is due to be commissioned at the end of 2024, with full capacity reached by 2028. At full capacity, the annual sales volume will reach 20 million ceramic bricks per year. It is planned to sell 95% of the production in the domestic market of Kazakhstan and export the remainder to Ukraine, Kyrgyzstan, and Uzbekistan.
Project
The Project envisages construction of a factory for production of ceramic bricks in the industrial zone of Avariniy village of Ulytau Oblast. In 2021 for a period of 3 years, the Initiator was allocated land plots with a total area of 5 ha (1 ha and 4 ha) for the construction of the factory.
The main raw material (clay) is planned to be extracted from the Zhidelisai field (Block 2C1) with reserves of 2,340.3 thousand cubic meters. The field is located 16 km away from the Project site.
The Initiator plans to extend the lease term of the land sites. Negotiations are underway with equipment suppliers, as well as with the office of the Ulytau Oblast Akim regarding obtaining a license for clay extraction at the Zhidelisai field.
Project Initiator
Intermarketing-M LLP was created in 2015 and obtained a license to perform category III construction and assembly work in 2019. In August 2023, it completed construction of four residential buildings and a fountain on Pervostroitelei Square in Zhezkazgan. It is also planning to build two five-storey houses.
Market Overview
- According to the National Statistics Bureau, the Kazakhstan construction sector grew annually at an average annual rate of 9% between 2018 and 2022. At the same time, Marketline is predicting that the Kazakhstan construction sector will grow in 2023-2026 at an average annual rate of 8%.
- In RK the production of ceramic products in value terms amounted to 75,532 thousand USD, which is 47% higher than in 2021.
- Imports of ceramic bricks in the RK in 2022 amounted to 1,002 thousand tonnes, and exports of these products from the RK amounted to 28 tonnes.
What is the attractiveness of the project?
- Advantageous location. Having production based in the village of Avariniy in Ulytau Oblast helps supply the region’s consumer markets with a population in excess of 221.7 thousand, as well as Karaganda and Kyzylorda Oblasts, which are home to over 1.9 million people. The region’s well-developed and extensive rail and road system helps manage both the delivery of raw materials and finished products to consumers.
- Raw materials base. The brick clay Zhidelisai field is located 16 km from the Project site. Clay reserves at field Block 2С1 cover roughly 2,340.3 thousand cubic meters.
- State support. The Project is recognised as a priority sector for state support, which takes the form of concessions and land grants.
- Initiator experience. The Company has significant experience in residential and housing construction. Professional construction experience affords the Company an extensive understanding of brick demand, including the required characteristics and quality. Investment proposal The Project requires investment of 4,906 thousand USD (at the rate of 449 tenge), of which: • 70% (3,434 thousand USD) – debt financing subject to collateral; • 30% (1,472 thousand USD) – investor participation. The proposed financing structure and state support measures are indicative. The final financing structure and Project interests will be determined based on the results of negotiations with the investor.
Investment proposal
The Project requires investment of 4,906 thousand USD (at the rate of 449 tenge), of which:
- 70% (3,434 thousand USD) – debt financing subject to collateral;
- 30% (1,472 thousand USD) – investor participation.
The proposed financing structure and government support measures are indicative; the final financing structure and share of participation in the Project will be determined based on the results of joint negotiations with the investor.
