Ferrosilicon production plant launched in Karaganda region
The official opening ceremony of the ferrosilicon production plant took place with participation of the Prime Minister of the Republic of Kazakhstan Askar Mamin, Governor of Karaganda region Yerlan Koshanov and the CEO of Kazakh Invest Baurzhan Sartbayev. The launch of YDD Corporation project’s first phase will enable Kazakhstan to become the 6th largest manufacturer of high quality ferrosilicon in the world.
The first phase of the plant with an annual production capacity of 180 thousand tonnes will enable Kazakhstan to become 6th among the world's largest manufacturers of high-quality ferrosilicon. Implementation of the second phase will increase production capacity up to 240 thousand tonnes and bring the country to the 5th place globally.
“This is the key project in the field of metallurgy; it is attractive for investment, and more relevant than ever, as it meets the main objectives set by the country's government - development of export and expansion of existing markets. The products manufactured by YDD Corporation plant are 100% export-oriented. At the same time, it is worth noting that the share of domestic content in production will account for over 94%,” - said the Founder of YDD Corporation Yerlan Nigmatulin. It is planned to export ferroalloys to Russia, Turkey, South Korea, the USA and the EU countries.
Kazakh Invest supported project implementation and assisted in obtaining public services based on the single window principle. Along with this, necessary infrastructure, including substation, transmission lines, railway lines, water and heat supply, was supplied in line with the program “Business Roadmap - 2020”. In addition, Kazakh Invest provided support in concluding an investment contract with the authorities.
Implementation of the second phase will be funded through reinvestment of net proceeds from the plant operations. The total value of the project is over 32 billion tenge. The plant will be equipped with the latest technological developments. For example, the level of the plant’s gas cleaning is 99.8%.
The plant will be producing ferrosilicon in the form of an alloy of iron and silicon used for smelting of electrotechnical, spring, corrosion and heat-resistant steel grades, which are used in construction and all industrial production. An alloy of iron and silicon is widely used in construction of railways, highways, gas pipelines and production of electric cars. In addition, raw materials used for production of ferrosilicon will be supplied to the plant at a fixed price under long-term contracts. This project has a significant economic and social impact. The project will provide about 350 permanent jobs with the launch of the first phase and 550 - with the second.
Karaganda region is one of the largest raw materials bases in Kazakhstan; it has rich and high-quality reserves of copper, tungsten, manganese, lead and coal that contribute to production of high-quality products. The strategic location of Karaganda region and development of railway lines allow delivering products to nearby export markets without significant costs.
The historically industrial region offers developed infrastructure, including high-voltage power networks, transformers, laboratory equipment, furnaces, storages, railways and highways. These prerequisites, coupled with rich deposits of solid minerals, create attractive opportunities for investors in the field of mining and metallurgy.
YDD Corporation LLP is a company engaged in construction of ferrosilicon production plant in Karaganda with an export perspective. The company was established at the end of 2016.
Kazakh Invest, acting as a “single negotiator” on behalf of the Government of the country, provides a full range of services for implementation of investment projects, including business registration, obtaining various permits and approvals necessary for conducting investment activities in the Republic of Kazakhstan.