Products
The plant is scheduled to be commissioned in 2025, with full capacity expected to be reached by 2030. The annual sales volumes are projected to reach 48,960 thousand units of toilet paper rolls per year, 4,680 thousand units of jumbo rolls per year, and 2,376 thousand units of paper towels per year. The company plans to sell 80% of its products within Kazakhstan and export the remaining 20% to other CIS countries.
Project
The project involves constructing a factory to produce paper products in the Aktobe Industrial Zone in the Aktobe region. ACurrently, 1.7 hectares have been leased in the Aktobe region. Discussions are ongoing with equipment suppliers from China.
Project Initiator
Lucrum Star LLP was established in 2018 and owns the Mereke, Romashka, Sakura, and Jumbo sanitary paper product brands. The current production capacity of the company's production unit is 3,335 tonnes of base paper per year, which is equivalent to 23 million rolls of toilet paper.
Market Overview
- The global paper product market was valued at 563.53 billion USD in 2022. The Business Research Company is predicting that it will be worth 760.31 billion USD by 2027. The sanitary paper product market accounted for 10% (55.9 billion USD) of the total paper product market in 2022.
- In 2022, sanitary paper product production in Kazakhstan was valued at 68.5 million tonnes, representing a 16% decrease from 2021. CAGR for production in 2018-2022 was -0.29%.
- The exports of sanitary paper products increased from US$ 9.9 billion in 2018 to US$ 11.8 billion in 2022, with a CAGR of 4%.
- Imports of sanitary paper products increased from US$ 10.5 billion in 2018 to US$ 12.1 billion in 2022, with a CAGR of 4%.
- Advantageous location. Basing production in Aktobe Oblast secures access to a well-developed and extensive rail and road system, enabling the delivery of both raw materials and finished products to neighboring regions and CIS countries. Additionally, the project location provides access to a large sales market. Aktobe Oblast is home to over 535 thousand persons, while the population of Aktobe, the region’s administrative centre is 222 thousand. The population of the neighbouring Mangistau, Atyrau and West-Kazakhstan Oblasts is roughly 2.1 million.
- Production expansion. The company owns the Mereke, Romashka, Sakura, and Jumbo sanitary paper product brands. The factory will help supply the domestic market with quality product and reduce sanitary paper product imports into Kazakhstan, which accounted for 39% of total consumption (16,823 tonnes) in 2022.
The project requires an investment of US$ 6,823 thousand, distributed as follows:
- 70% (US$ 4,776 thousand) – investor participation;
- 30% (US$ 2,047 thousand) – initiator's own funds.
