INVESTMENT PROPOSALS OF NUR-SULTANСIТУ
ASTANA INVEST CONTENT
FOOD INDUSTRY
Production of baby food 3
Production of bakery products 5
WOODWORKING AND PULP AND PAPER INDUSTRY
Furniture production 6
Production of furniture accessories 8
Production of wallpaper 9
CHEMICAL INDUSTRY
Production of paint products 10
Production of plastic products 11
Production of rubber products 12
AGRO-INDUSTRIAL COMPLEX
Beef production 13
Production of sausages and meat products 15
Advanced wheat processing 17
Construction of a greenhouse 19
Top smart spot spray system 21
CONSTRUCTION INDUSTRY
Ready-build factory 22
Production of basalt fibre thermal insulation 23
Production of ceramic coating and plates 25
Production of electrodes 26
Production of metal fasteners 27
ENGINEERING
Production of elevators 28
TRADE Outlet Center 29
ENERGETICS
Small solar power plants 30
Optimization of heating costs 31
OTHERS Optoculus innovative security system 32 PRODUCTION OF BABY FOOD General Classification of Types of Economic Activity 10.86.0 «Production of baby food and dietary food products»
Currently, Kazakhstan’s baby food products market mainly PROJECT DESCRIPTION: represented by foreign production. For Kazakhstan companies, the niche in food production remains Construction of a complex for the undeveloped. The main suppliers of baby food to production of baby food products Kazakhstan are the European Union (EU) and Russia. Exports with a capacity of 25 thousand tons made to the countries of Central Asia and China. per year (15 thousand tons of baby food based on cereals and 10 Baby food import in Kazakhstan in 2018 thousand tons based on vegetables). Import of cereals, Homogenized MANUFACTURED PRODUCT million US dollars vegetables, thousand Porridges - dry and ready-made; US dollars Homogenized vegetables for baby food; Russia Soups and bouillons. Switzerland 18,2 494 Russia 14,9 Poland 414 GLOBAL MARKET Netherlands 2,8 Great Britain 7 Based on imports porridges are in the highest demand in the Germany 2 Belarus 4 world. The average annual growth rate of the porridge market others* 0,8 over the past 5 years is about 9%. *Belarus, Finland, Spain, Portugal, USA and Kyrgyzstan
Import of soups and bouillons, thousand US dollars Global import of child and dietary food Russia 490 Poland 244 Estonia 44 *Slovenia, Belarus,
11 858,7 Finland 36 Great Britain, 10 862,7
9941,5 others* 45 Germany, Italy 9570,1 8466,5 Baby food export from Kazakhstan in 2018 92,1 616,8 80,6 87,7 514,7 479 545,4 82,2 514,7 95,3 Cereals, thousand US dollars Tajikistan 4 742 2014 2015 2016 2017 2018 Kyrgyzstan 3 602 soups and homogenized vegetables cereals Turkmenistan 1 830 for baby food bouillons Mongolia 636 REGIONAL MARKET China 119 Uzbekistan 9 Imports of cereals, soups, bouillons and vegetable products for babies increased in 2019, especially imports of vegetable Homogenized vegetables, Soups and bouillons, products and soups and broths. thousand US dollars thousand US dollars Kyrgyzstan 18 Baby food import in Kazakhstan in 2019 Kyrgyzstan 102 Mongolia 8 Mongolia 30 39 Tajikistan 6 cereals weight, Tajikistan 10 6,6 Turkmenistan 2 thousand tons Uzbekistan 1 homogenized vegetables 8,2 for baby food 1,5 soups 17918,2 7,6 cost, PRODUCTION 1,4 million US dollar and bouillons Production of cereals, porridge and other products from cereals, vegetable crops and vegetables in Kazakhstan Baby food import dynamics in Kazakhstan, million remains stable, but there is a tendency to decrease US dollars production. Volumes of production of vegetables processed and
49,9 canned, except for potatoes, tons 39,6 38,6 37 35,6 26 058 24 287 1,4 0,9 0,9 1,2 0,7 19 433 0,3 1,1 0,9 0,5 0,4 Republic of 18 972 15 045 Kazakhstan 2014 2015 2016 2017 2018 Nur-Sultan 151 soups and 71 20 20 homogenized vegetables cereals 16 for baby food bouillons 2015 2016 2017 2018 2019
3 PRODUCTION OF BABY FOOD
Volumes of production of flour Production volumes from grain and vegetable crops and Import of baby food packed for retail sales of nearby canned vegetables mixtures of fine grinding, thousand countries, 2018 Kazakhstan, tons tons 333,1 China 4 888,5 43,3 2015 4 552 Russia
2016 4 521 3 974,1 3 910,1 3 803,1 239,9
3 692,1 3,3 2017 9 775 Ukraine 3 308,2 20,8 2018 10 477 160 148,1 136,2 134,3 132,2 Uzbekistan 6,1 2019 7 650 34,9 2015 2016 2017 2018 2019 others* 7,5 48,3 thousand tons million US dollar Republic of Nur-Sultan Kazakhstan *Azerbaijan, Belarus, Tajikistan, Kyrgyzstan, Armenia, Mongolia,Turkmenistan MANUFACTURERS In Nur-Sultan city, the main manufacturers are small COMPETITIVE ADVANTAGES enterprises («AB baby food» LLP, «ECOPROT» LLP, «Factory Raw material base availability; of medical biotechnology» LLP). To date, the first and Potential import substitution and product export; only enterprise in Kazakhstan for the production of baby State support for investors and entrepreneurs. milk nutrition is the factory of the Kazakh Academy of STATE SUPPORT MEASURERS nutrition «Amiran». The assortment of baby food in supermarkets is represented by such Investment preferences TAX brands as NESTLE (Switzerland), NUTRICIA (Netherlands), HEINZ (USA), BIBIKOL (Russia), Humana (Germany). Exemption from customs duties (0% up to 5 years for import); Tax incentives (VAT, corporate income tax, land tax, property tax - 0%); RAW MATERIAL BASE In-kind grants (land, buildings and structures, etc.); The main grain crops in Kazakhstan are wheat and barley. Akmola Hiring foreign labor . region is the leader of the Republic in terms of gross harvest of cereals and legumes in 2018 (28.3%). Special economic zone preferences Gross collection of cereals harvest (excluding rice) and legumes, million tons Tax preferences (CIT, land tax, tax on property); Customs preferences (import of raw materials and equipment);
20,6 20,6 Land with a ready-made infrastructure (gratuitous rent of a salary);
20,3 Republic of 18,7 Simplified procedure for hiring foreign labor (hiring of foreign
17,2 Kazakhstan 5 5
4,8 labor out of quotas). 4,6 4,5 Akmola region 2014 2015 2016 2017 2018 Business roadmap - 2025 In Kazakhstan formed a stable growth dynamics of vegetable products. In 2019, the total amount of vegetable production Subsidies (base rate of National Bank + 5%, of which 6% collected in the surrounding regions was 661 thousand tons. paid by the entrepreneur, and the difference is subsidized by the state); Gross collection of vegetables in Kazakhstan, thousand tons Guarantee (project amount up to 1 billion KZT for working entrepreneurs, guarantee up to 50%); Infrastructure supplying. 3 615,7 3 905,8
4 138,3 open field 3 635,7 Economics of simple things 3 417,3 % 216,9 176,2 175,4 159,5 147,7 under cover Subsidies (rate not more than 15%, subsidy up to 9% of loan interest rates); 2015 2016 2017 2018 2019 oper. Guarantee (up to 50% on loans up to 3 billion KZT and up to 30% data on loans over 3 and up to 5 billion KZT inclusive). Gross collectiob of vegetables in nearby reions in 2019, State support measures for thousand tons Kazakhstan manufactures through «Kazakhstan Industry and Export Pavlodar region 226,3 Center «QazIndustry» JSC North-Kazakhstan region 203,7 Karaganda region 105,9 Reimbursement of part of expenses to subjects of industrial and Kostanay region 71,2 innovative activity: Akmola region 54 to increase labor productivity and territorial clusters development; to promotion domestic processed goods in foreign market; POTENTIONAL SALES MARKET to promotion domestic processed goods, works and services in The total volume of porridge imports for babies of neighboring internal market. countries in 2018 amounted to 5.2 billion us dollars (393.3 thousand tons). The Chinese market accounts for more than 93% of imports.
4 PRODUCTION OF BAKERY PRODUCTS
PROJECT DESCRIPTION: Leading regions for the production of fresh bread in 2018, tons Turkestan region 136 674 Establishment of a small bakeries Almaty 77 002 chain/production plant of various Karaganda region 67 487 bakery products. Zhambyl region 64 797 Aktobe region 45 279 East Kazakhstan region 42 691 MARKET ANALYSIS Kostanay region 41 874 Pavlodar region 36 230 According to the structure of the minimum living wage in the The top 5 regions of producers of West Kazakhstan region Republic of Kazakhstan, flour products are in the top 3 food products 36 014 bakery products are the southern Akmola region of Kazakhstan citizens. The bakery products market in Kazakhstan is 28 689 regions, Karaganda and Aktobe self-sufficient, the share of imports is insignificant. In monetary Almaty region 28 509 regions. In this regard, it is possible terms, imports exceed exports by more than 6.5 times. North Kazakhstan region 21 231 to export bakery products to the Shymkent 21 529 Capacity of bakery Export and import of bakery nearby Northern regions. Also, Atyrau region 16 818 there is a noticeably limited products market of the products of the Republic of Nur-Sultan 16 316 production of this product in the Republic of Kazakhstan, Kazakhstan, in thousands of US Kyzylorda region 9 551 capital, given its population of tons dollars Mangystau region 6 346 more than 1 million people. 729 964 17 512 2016 2016 277 121 240 Bakery products market in Nur-Sultan city 18 923 711 729 2017 5% 2017 333 135 754 Market volume of Nur-Sultan city = 703 037 21 640 12% 1 078 384 (population of Nur-Sultan city 2018 2018 282 149 945 2019) * 200 (gr. norm for 1 person) * 20 (KZT price per 100 gr.) * 365 (days) = 15,7 production import import export import billion KZT or 78 722 tons per year. bakery product import from other regions Import of bakery products in 2018,% production 5% 65% The most popular import 12% products are «other bread and Large manufacturers, market share of Nur-Sultan city,% confectionery products» and «sweet dry cookies», more than import 80%. These products can be ~13% ~9% bakery product included in the list of bakery Number of manufacturers: 89 units (3rd place in the country) 65% products. 17% Competitive advantage bread and other sweet dry The availability of raw materials creates favorable conditions for flour confectionery cookies competitive pricing compared to a number producing regions. waffles and waffle cachets Summary of project benefits The main volume of product sales – imports from other regions, crackers and toast it is possible to replace these market players at a more favorable price. Due to the developed transport interchange of the capital, it is Export of bakery products of the Republic of Kazakhstan in 2018,% possible to export products both to the nearest regions and abroad. 24% High human potential of the city, relatively high availability of The main export names are «sweet necessary personnel. dry cookies» and «waffles and waffle The growing population of the city is an increase in the sales cachets», 76%. The main export market. export 44% names are. bakery product STATE SUPPORT MEASURERS Investment preferences bread and other sweet dry cookies 32% flour confectionery Exemption from customs duties (0% up to 5 years for import); waffles and Tax incentives (VAT, corporate income tax, land tax, waffle cachets property tax - 0%); In-kind grants (land, buildings and structures, etc.); Export of bakery products from Kazakhstan, top 5 countries Hiring foreign labor. (2018), thousand US dollars Kyrgyzstan 5945 The most popular Kazakhstan Special economic zone preferences Russia 5926 bakery products are used in Tax preferences (corporate income tax, land tax, tax on property); China 3113 Kyrgyzstan and the Russian Customs preferences (import of raw materials and equipment); Mongolia Federation, ~ 27% and China is 2721 Land with a ready-made infrastructure (gratuitous rent of a 1718 14%. Tajikistan salary); Simplified procedure for hiring foreign labor (hiring of foreign labor out of quotas). 5 FURNITURE PRODUCTION General Classification of Types of Economic Activity: 31.01.1 «Manufacture of chairs and other seating furniture»; 31.01.2 «Manufacture of furniture for offices and trade enterprises»; 31.02.0 «Manufacture of kitchen furniture». AAccording to the plan of the mayor's office of Nur-Sultan PROJECT DESCRIPTION: city for the purchase of furniture industry goods for 2020, the total volume in terms of value is about 191 Construction of furniture million KZT, which is also one of the indicators of manufacture in Nur-Sultan demand for manufactured products. In addition, central city. government agencies and national companies that are potential buyers of furniture products are located in Nur- GLOBAL MARKET Sultan city. Analysis of global imports of furniture manufacture for the Volume of comissioned housing, thousand sq.m. period from 2015 to 2018 shows growth dynamics. Compared to 2015, global imports increased by 16.4% in 2018. 13 134 12 521 11 168 10 513 Global furniture product import for the period 8 940 Kazakhstan 2 360 of 2015-2018, thousand USD 2 378 17918,2 17918,2 2 257 1 79 4 Nur-Sultan 1 759 2015 74 590 817 2015 2016 2017 2018 2019 2016 74 778 535 2017 80 798 444 2018 86 786 149 MANUFACTURES REGIONAL MARKET In Kazakhstan, there are 937 small and medium-sized In 2019, the main importer of furniture products to enterprises engaged in the furniture manufacture, 165 of them Kazakhstan was Russia, the share of total imports of furniture are located in Nur-Sultan city. The main manufactures are small products was 53.2%, Belarus took second place with a share enterprises, such as «Astana-Zhihaz Fabrikasy» LLP, of 13.7%, and China closed the top three with a share of «Mebelinkz» LLP, «Dara-Art» LLP, «Bespoke furniture&home» 7.6%. The main suppliers of furniture in Nur-Sultan city LLP. were Russia (65.3%), Turkey (10.6%), and Italy (6.1%). RAW MATERIALS Furniture product import, million USD In Kazakhstan, 33 enterprises are engaged in the production of hardboard, chipboard, plywood, and veneer, of which the largest are «Favorit» LLP (East Kazakhstan region), «Melissa» 233,8
224 LLP (East Kazakhstan region) and «Lam. Tech» LLP (Almaty city). 196,4 204,5
177 In Nur-Sultan city there is one small enterprise – «Airon- Kazakhstan
56 Astana» LLP. Also, the necessary raw materials are 4 7 ,8 45,6 3 7 ,2 3 7 ,8 17918,2 17918,2 Nur-Sultan imported from nearby countries, mainly from Russia and Belarus. Potential supplier of metal parts: 2015 2016 2017 2018 2019 Metallurgical plant «ArcelorMittal Temirtau» JSC (Karaganda region). Main countries Main countries importing furniture importing furniture Chipboard material import in 2019, thousand USD product to Kazakhstan in product to Nur-Sultan in 2019, thousand USD 2019, thousand USD Chipboard, OSB 5 699 Kazakhstan 106 177 Nur-Sultan Fibreboard 15 331 Italy 9 785 Korea 1 268,0 85 986 Turkey 14 857 China 1 734,0 Accessories 900 China 15 618 Italy 2 321,3 18 682 Belarus 28 006 Turkey 4 025,0 Russia 108 767 POTENTIAL SALES MARKET Russia 24 690,6 In 2019, Kazakhstan exported the main volume of Furniture production, million KZT furniture products to Russia, which accounted for 40% of the total export volume. It is worth noting that in 2018, the
43 482 volume of exports to Russia was 1,493 thousand US Dollars, 38 613 37 900 Kazakhstan an increase of 55%. 35 959 0 2 1 6 17918,2 30 256 Nur-Sultan 1 522 1 901 17918,2 1 864 1 81 3 Main furniture buyers from Kazakhstan in 2019, thousand 2015 2016 2017 2018 2019 USD
Russia 2 317 AAccording to the Ministry of National Economy Statistics Kyrgyzstan 1 394 Committee of the Republic of Kazakhstan, for the period Mongolia 426 from 2016 to 2019, there is a stable increase in the Belarus 370 volume of housing commissioned in Kazakhstan, this trend is Tajikistan 296 positive for the development of the furniture industry.
6 FURNITURE PRODUCTION
Russia became the main buyer of furniture products in Nur- Sultan city in 2019 (97.1%). In comparison with the previous Furniture import to Azerbaijan, 2018 year, the volume of exports to Russia increased by 63% (exports of Nur-Sultan city to Russia in 2018 – UK 41 333 210.2 thousand US Dollars). 992 France 21 343 1 430 Furniture buyers from Nur-Sultan in 2019, thousand USD Italy 15 556 13 705 9 287 Germany Russia 342,4 1 003 Price per ton, USD Uzbekistan 4,6 Kazakhstan 2 842 Turkey 2,4 54 Cost, thousand USD UAE 1,2 Kyrgyzstan 1,0 COMPETITIVE ADVANTAGES Germany 0,6 High demand in the product; Serbia 0,5 Potential import substitution and product export; Housing construction high temp; The volume of imports from neighboring countries State support for investors and entrepreneurs. is 2.6 billion us dollars, which is 7.4% more than in 2017. STATE SUPPORT MEASURERS
Furniture import in neighboring countries, Investment preferences TAX thousand USD Exemption from customs duties (0% up to 5 years for import); Tax benefits (VAT, corporate income tax, land tax, property tax - 0%); 2018 In-kind grants (land plots, buildings and structures, etc.); Attracting foreign labor 1 334 158 1 257 617 2017 Special economic zone 865 505
791 384 preferences Tax preferences (corporate income tax, land tax, tax on property); Customs preferences (import of raw materials and equipment); Land
110 422 with a ready-made infrastructure (free land plot rental); Simplified 99 768 76 005 74 893 61 552
61 062 procedure for hiring foreign labor (attraction of foreign labor out of 27 280 24 127 15 973 21 552 27 329 18 468 15 597 14 239 10 535 11 865 12 371
24 702 quotas).
Business roadmap - 2025 China Russia Belarus Ukraine Armenia Subsidies (base rate of National Bank + 5%, of which 6% Mongolia Tajikistan Azerbaijan Uzbekistan Kyrgyzstan paid by the entrepreneur, and the difference is subsidized
Turkmenistan by the state); Guarantee (project amount up to 1 billion KZT for PRODUCT COST existing entrepreneurs, guarantee up to 50%); Infrastructure supplying. Kazakhstan has a competitive advantage in the markets of neighboring countries such as Armenia and Azerbaijan due Economics of simple things to the price of furniture products. %
Subsidies (rate not more than 15%, subsidy up to 9% of loan Furniture import to Armenia, 2018 interest rates); Guarantee (up to 50% on loans up to 3 billion KZT and up to Turkey 3 139 Price per ton, USD 30% on loans over 3 and up to 5 billion KZT inclusive). 2 605 3 052 Ukraine Cost, thousand USD State support measures for 296 Kazakhstan manufactures 1 683 through «Kazakhstan Industry Belarus and Export Center «QazIndustry» 1 370 JSC Russia 1 409 4 490 Reimbursement of part of expenses to subjects of industrial and innovative activity: Kazakhstan 1 344 to increase labor productivity and territorial clusters 43 development; to promotion domestic processed goods in foreign market; to promotion domestic processed goods, works and services in internal market.
7 PRODUCTION OF FURNITURE ACCESSORIES General Classification of Types of Economic Activity: 22.29 «Production of other plastic products»; 25.99 «Production of other finished metal products not included in other categories». Import of furniture accessories from nearby PROJECT DESCRIPTION: countries in 2018, US dollars Azerbaijan 5 581 Creation of an enterprise for the Georgia 5 975 production of furniture fasteners Uzbekistan 9 038 in the territory of Nur-Sultan city Belarus 41 025 Kyrgyzstan 83 366 Ukraine 115 477 OUTPUT PRODUCTION: China 217 849 Fasteners and accessories for furniture made of plastic; Russia 355 583 Fasteners, accessories and similar products for furniture made of metals. Dynamics of import prices for Dynamics of import prices for WORLD MARKET metal furniture accessories plastic furniture accessories The demand for furniture accessories directly depends on the by country in 2018, us dollars by country in 2018, us $ per 1 demand for furniture products. The cost of accessories in the per 1 ton ton furniture is from 15 to 50 %. The dynamics of global demand for Russia 3362 Russia 15 156 furniture accessories in recent years shows a stable growth. China 6020 China 41 883 Furniture accessories import, Kyrgyzstan 4258 Kyrgyzstan 1226 thousand US dollars Kazakhstan 2280 Kazakhstan 4373 Azerbaijan 2593 Azerbaijan 3599 2014 9 795 540 Tajikistan 4097 Tajikistan 3014 Belarus 3077 Belarus 2015 9 206 04 8696 Uzbekistan 1262 Uzbekistan 3842 2016 9 760 971 Turkmenistan 3026 Turkmenistan 3619 2017 11 052 589 2018 11 980 773 COMPETITIVE ADVANTAGES REGIONAL MARKET Lack of production in the Republic of Kazakhstan; There is no production of furniture accessories in the Republic of Extensive sales market in Nur-Sultan city. Kazakhstan. STATE SUPPORT MEASURERS Kazakhstan furniture accessories import, thousand US dollars Investment preferences 2015 16 154 Exemption from customs duties (0% up to 5 years for import); 2016 14 556 Tax incentives (VAT, corporate income tax, land tax, property tax - 0%); In-kind grants (land, buildings and structures, etc.); 2017 16 833 Hiring foreign labor. 2018 17 596 Special economic zone preferences 2019 18 682 Tax preferences (CIT, land tax, tax on property); Furniture accessories manufacturers: Customs preferences (import of raw materials and equipment); Hettich is one of the largest manufacturers of furniture accessories Land with a ready-made infrastructure (gratuitous rent of a salary); in the world (Germany); Simplified procedure for hiring foreign labor (hiring of foreign labor KESSEBÖHMER GmbH is the world leader in production of out of quotas). furniture accessories for kitchens (Germany); Business roadmap - 2025 Rehau is a company specializing in the development of energy- efficient systems for construction, solutions for industry and Subsidies (base rate of National Bank + 5%, of which 6% paid by furniture production (Germany); the entrepreneur, and the difference is subsidized by the state); Guarantee (project amount up to 1 billion KZT for working INOXA specializes mainly in the production of kitchen accessories entrepreneurs, guarantee up to 50%); made of metal rod (Italy); Infrastructure supplying. GTV is one of the largest European distributors of furniture accessories and lighting (Poland); Economics of simple things BOYARD is the largest representative of the furniture accessories Subsidies (rate not more than 15%, subsidy up to 9% of loan market in the Russian Federation. interest rates); Guarantee (up to 50% on loans up to 3 billion KZT and up to 30% RAW MATERIAL BASE on loans over 3 and up to 5 billion KZT inclusive). Metal – Metal bases of Nur-Sultan city, «ArcelorMittal Temirtau» State support measures for Kazakhstan manufactures JSC, АО «Ulba Metallurgical Plant» JSC Ust-Kamenogorsk; through «Kazakhstan Industry and Export Center Plastic – Domestic manufacturers of plastic products, «Neftekhim «QazIndustry» JSC Ltd» LLP Pavlodar; Wood – Import from Russia, logging companies from East Reimbursement of part of expenses to subjects of industrial and Kazakhstan region. innovative activity: to increase labor productivity and territorial clusters POTENTIAL SALES MARKETS development; Nearby countries collectively imported furniture accessories for total to promotion domestic processed goods in foreign market; amount 834 million US dollars. to promotion domestic processed goods, works and services in internal market.
8 PRODUCTION OF WALLPAPER General Classification of Types of Economic Activity 17.24 «Wallpaper production»
Wallpaper imports by neighboring PROJECT DESCRIPTION: countries in 2018, thousand US dollars Mongolia 3137 Manufacture construction for Armenia 4334 production of wallpaper in Tajikistan 9829 Nur-Sultan city. Iraq 10631 Ukraine 11815 Kyrgyzstan 14316 OUTPUT PRODUCT: Georgia 14357 Wallpaper with a coating of foamed vinyl on a non-woven Azerbaijan 25549 basis; Uzbekistan 29350 Hot stamping vinyl Wallpaper; Iran 36132 Non-woven wallpaper for painting. Belarus 43750 Import, thousand US dollars Kazakhstan 65655 China 66881 2015 1 437 666 Russia 204896 2016 1 455 070 0 50000 100000 150000 200000 250000 2017 1 360 684 2018 1 432 389 The major wallpaper consumers on global market are Global market Russia and China. Kazakhstan has geographical advantage REGIONAL MARKET to supply those countries, with Kazakhstan's imports in There is no production of wallpaper in Kazakhstan, while there is 2018 amounting to 65.6 million us dollars. demand for this type of product, which is offset by imports in Kazakhstan. COMPETITIVE ADVANTAGES Housing fund Lack of production in the Republic of Kazakhstan; Nur-Sultan 23, 3 million sq. m High demand for these product. Republic of Kazakhstan 387, 7 million sq. m STATE SUPPORT MEASURERS Investment preferences Over the past 5 years there is a stable increase of housing in Exemption from customs duties (0% up to 5 years for import); • Nur-Sultan city. Repairs in residential buildings are made on Tax incentives (VAT, corporate income tax, land tax, property average every 5-7 years. tax - 0%); In-kind grants (land, buildings and structures, etc.); Total area commissioned Hiring foreign labor. residential buildings, thousand sq. m Special economic zone preferences 1759 Nur-Sultan Tax preferences (corporate income tax, land tax, tax on property); 2015 8940 Republic of Customs preferences (import of raw materials and equipment); 2257 Kazakhstan Land with a ready-made infrastructure (gratuitous rent of a salary); 2016 10513 Simplified procedure for hiring foreign labor (hiring of foreign labor out of quotas). 17918,2 2360 2017 11168 Business roadmap - 2025 2378 2018 12521 Subsidies (base rate of National Bank + 5%, of which 6% 1794 paid by the entrepreneur, and the difference is subsidized 2019 by the state); 12873 Guarantee (project amount up to 1 billion KZT for working entrepreneurs, guarantee up to 50%); RAW MATERIAL BASE Infrastructure supplying. Paper for Wallpaper – the Kazakhstan market is represented by 137 manufactures, including 5 large and 3 medium-sized enterprises. There Economics of simple things are 30 small enterprises in Nur-Sultan city. Subsidies (rate not more than 15%, subsidy up to 9% of Polyvinyl chloride – at industrial scale it is represented by loan interest rates); manufacturers from Russia, China, Germany and Spain. Guarantee (up to 50% on loans up to 3 billion KZT and up Plastisol paint – the market is represented by manufacturers of China to 30% on loans over 3 and up to 5 billion KZT inclusive). and Russia, with stable demand for this type of product, it is possible to start production in Kazakhstan on the basis of manufacturers of State support measures for Kazakhstan paint and varnish products. manufactures through «Kazakhstan Industry and Export Center «QazIndustry» JSC Shrink polyolefin film – market presented by numerous domestic companies. Reimbursement of part of expenses to subjects of industrial and innovative activity: POTENTIONAL SALES MARKET to increase labor productivity and territorial clusters development; The total volume of imports from neighboring countries in to promotion domestic processed goods in foreign 2018 was more than 400 million US dollars. market; to promotion domestic processed goods, works and services in internal market. 9 PRODUCTION OF PAINT PRODUCTS General Classification of Types of Economic Activity: 20.30 «Production of paints, varnishes and similar coloring substances, printing ink and mastic»
PROJECT DESCRIPTION Cumulative imports of neighboring countries in 2018 amounted to more than 1.6 billion USD. Creation of an enterprise for the production of paint and varnish The largest consumers in the global paint market are Russia and products in the territory of Nur-Sultan China. Kazakhstan has a geographical advantage for deliveries to city these countries, while Kazakhstan's imports in 2018 amounted to OUTPUT PRODUCT: $ 66.8 million USD. Paints and varnishes based on polyesters; Paints and varnishes based on acrylic or vinyl polymers; Import prices for paint and varnish products of neighboring Other paints and varnishes. countries for 2018 USD per 1 ton WORLD MARKET World market Import to the Republic Import of paints, thousand USD Kazakhstan, thousand USD 7 621 7
2018 14 566 457 2018 76 460
2017 13 088 399 2017 58 654 3853 2016 12 262 573 2016 59 703 3816
74 679 3397 3331 2015 12 244 902 2015 2769 2497 2428 1232 1054 1842 1826 1562 2224 3175 2014 13 852 368 2014 66 891 Iran Iraq China Russia Belarus Ukraine Kazakhstan has established production of various varnish and paint Georgia Armenia Tajikistan Mongolia Azerbaijan products, but domestic production does not cover all the needs of Kyrgyzstan Kazakhstan Uzbekistan the paint market. Turkemnistan REGIONAL MARKET COMPETITIVE ADVANTAGES Manufacturers of paints - Gaudi Paint (Kazakhstan), High demand in the product; PUFAS(Germany), Sniezka (Poland), Alina Paint (Kazakhstan), High demand for technological paints; Marshall (Netherlands), Lacra (Russia), TM Raduga (Russia), Alian Proximity to the markets of China and Russia. paint (Kazakhstan), SKIF (Kazakhstan), Almaty paints (Kazakhstan). STATE SUPPORT MEASURERS Investment preferences RAW MATERIAL BASE Thickener - the market is represented by manufacturers from Exemption from customs duties (0% up to 5 years for import); Russian Federation, Turkey, Poland, Finland, Italy, Spain, Germany, Tax benefits (VAT, corporate income tax, land tax, property tax - 0%); In-kind grants (land plots, buildings and structures, etc.); Belarus, Korea and Israel. Attracting foreign labor. Sodium polyphosphate - domestic producer in the Zhambyl region ( Group of companies Kazphosphate), import from Russia, Germany, Special economic zone preferences China and the UK; Defoamer - import from Russia, Germany, China, Poland, Turkey, Tax preferences (corporate income tax, land tax, tax on property); Slovenia and Italy; Customs preferences (import of raw materials and equipment); Solvents - its is planned production launch in the Almaty region, Land with a ready-made infrastructure (free land plot rental); imports from Turkey, Russia, the Netherlands and Germany; Simplified procedure for hiring foreign labor (attraction of foreign Propylene glycol - there are domestic manufacturers, import from labor out of quotas). Russian Federation, Spain, Germany and China; Business roadmap – 2025 Titanium Dioxide - Czech Republic, France, Russian Federation; Micromarble filler (calcite) - domestic manufacturer in the Zhambyl Subsidies (base rate of National Bank + 5%, of which 6% paid by region (Group of companies Kazphosphate), import from Russia, the entrepreneur, and the difference is subsidized by the state); Germany, China and Great Britain; Guarantee (project amount up to 1 billion KZT for existing - there is production in the Turkestan region, import entrepreneurs, guarantee up to 50%); Dispersion Infrastructure supplying. from Russia, Turkey, Poland, Finland, Italy, Spain,Germany, Belarus, Korea and Israel. Economics of simple things Subsidies (rate not more than 15%, subsidy up to 9% of loan interest rates); POTENTIAL SALES MARKETS Guarantee (up to 50% on loans up to 3 billion KZT and up to 30% Paints import to neighboring on loans over 3 and up to 5 billion KZT inclusive). countries in 2018, thousand 75 7914 USD State support measures for Kazakhstan manufactures through «Kazakhstan Industry
537 642 537 andExport Center «QazIndustry» JSC Reimbursement of part of expenses to subjects of industrial and 82 605 68 011 66 891 innovative activity: 20 150 9 428 37 813 37 15 787 12 882 8 118 15 420 6 514 6 409 41 961 to increase labor productivity and territorial clusters development; Iran Iraq to promotion domestic processed goods in foreign market; China Russia Belarus Armeni Ukraine
Georgia to promotion domestic processed goods, works and services in Mongolia Tajikistan Azerbaijan Kyrgyzstan Uzbekistan internal market Kazakhstan Turkmenistan
1 0 PRODUCTION OF PLASTIC PRODUCTS General Classification of Types of Economic Activity: 22.23 «Production of construction plastic products»; 22.21 «Production of plastic sheets, tubes for tires and profiles». RAW MATERIAL BASE PROJECT DESCRIPTION: Polypropylene – «Company Neftekhim LTD» LLP. Import of products are mainly from the Russian Federation and China. Creation of an enterprise for A large plant for the production of polypropylene is under construction in Atyrau region. It is planned to complete the production of plastic products in construction by 2021, its capacity will be 500 thousand tons per the territory of Nur-Sultan city. year – it will be the largest production in the world. Polyvinylchloride – Imports of products are mainly from China and Russian Federation. OUTPUT PRODUCTS: Polyethylene – Import of products are mainly from the Russian Federation and China, in addition, a project is being Plastic containers; implemented in Atyrau region on polyethylene production with Plastic coatings; capacity of 1.2 billion tons. Plastic pipes. POTENTIAL SALES MARKETS WORLD MARKET The total volume of imports from neighboring countries in 2018 amounted to more than 2.7 billion US dollars. Dynamics shows that plastic products in the world are in stable Import of plastic coatings of demand, with the growth of plastic coatings from 2014 to 2018 Import of plastic pipe of neighboring countries, 2018 amounted to 63%. neighboring countries in 2018 Belarus 16011 Kyrgyzstan 12117 Ukraine 42725 Iran 12760 Iraq 72589 Mongolia 14811 Russia 99562 Uzbekistan 16091 China Turkmenistan 123128 28 558 873 16781 Azerbaijan 25987 Import of plastic containers of 24 031 527 23 667 814 667 23 Belarus 89450 neighboring countries, 2018 21 886 012 21 741 751 9 610 219
8 000 958 Ukraine 154918 Belarus 1670 900 133 6 060 653 6 132 898 745 785 773 059 780 682 6 933 779 685 798 Iraq 323910 Ukraine 2264 2014 2015 2016 2017 2018 Russia 556440 Russia 2504 China 1179688 China 3008 plastic plastic plastic Iraq pipes containers 8497 coatings COMPETITIVE ADVANTAGES REGIONAL MARKET High demand on production; There are a number of enterprises that are generally produce plastic Possibility of production of raw materials in Kazakhstan; products in Kazakhstan, but they do not cover the inside demand of Industry development all over Kazakhstan. the republic. STATE SUPPORT MEASURERS Major domestic manufacturers – «Neftekhim Ltd» LLP, Pavlodar, Investment preferences «Aktau fiberglass pipe plant» LLP, «Aktobe non-metallic pipe plant» Exemption from customs duties (0% up to 5 years for import); JSC, «Atyrau polyethylene pipe plant» LLP, «Galaksi» LLP, Almaty, Tax benefits (VAT, corporate income tax, land tax, property tax - 0%); «KazPlast» LLP, Karaganda, «Belem-Plast» LLP, Karaganda, In-kind grants (land plots, buildings and structures, etc.); «Petropavlovsk construction materials plant» LLP, «Amitech- Attracting foreign labor. Astana» LLP, «PLASTCOM GROUP» LLP. Special economic zone preferences Import of plastic products in the Republic of Kazakhstan, thousand US dollars Tax preferences (corporate income tax, land tax, tax on property); Customs preferences (import of raw materials and equipment); Land with a ready-made infrastructure (free land plot rental); Simplified procedure for hiring foreign labor (attraction of foreign labor out of
134 809 quotas). 88 778 89 279 91 918 Business roadmap – 2025
73 960 Subsidies (base rate of National Bank + 5%, of which 6% paid by the 40 187 2 304 4 459 53 763 46 174 3 141 2 997 38 074 29 239 1 728 entrepreneur, and the difference is subsidized by the state); 2014 2015 2016 2017 2018 Guarantee (project amount up to 1 billion KZT for existing entrepreneurs, guarantee up to 50%); plastic pipes plastic plastic containers coatings Infrastructure supplying. Import and export Import and export of Economics of simple things of plastic pipes in plastic coatings in Nur-Sultan city Subsidies (rate not more than 15%, subsidy up to 9% of loan Nur-Sultan city interest rates); 10448 11665,7 32125,4 26033,5 Guarantee (up to 50% on loans up to 3 billion KZT and up to 30% on loans over 3 and up to 5 billion KZT inclusive). 5820,9 39066,1 6469,4 5703,4 32535,1 28986,1 3418,2 State support measures for Kazakhstan manufactures 37,9 1723,8 11072,5 522,9 863,5 643,4 735,1 773,2 786,8 through «Kazakhstan Industry and Export Center «QazIndustry» JSC Reimbursement of part of expenses to subjects of industrial 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 and innovative activity: to increase labor productivity and territorial clusters 107,5 469,1 637 204,7 329,7 development; Import plastic to promotion domestic processed goods in foreign market; reservoirs in to promotion domestic processed goods, works and services Nur-Sultan city in internal market. 2015 2016 2017 2018 2019 1 1 PRODUCTION OF RUBBER PRODUCTS General Classification of Types of Economic Activity 22.19 «Production other rubber products»
Imports from a number of Dynamics of the cost of 1 ton PROJECT DESCRIPTION: countries, in thousands of US of products in global market dollars in thousands of US dollars. Creation of an enterprise for the Tajikistan 1 250 production of rubber products on Kyrgyzstan 4 065 2014 95 the territory of Nur-Sultan city. Turkmenistan 5 162 2015 71 Armenia 8 055 Mongolia 9 312 2016 75 Georgia OUTPUT PRODUCTS: 11 624 2017 88 Iran 20 091 Rubber products for the automobile industry; Uzbekistan 20 521 2018 85 Rubber products for construction materials; Azerbaijan 22 703 Other rubber products. Iraq 34 978 Belarus 79 035 WORLD MARKET Ukraine 202 098 Import in thousands of US dollars UAE 253 426 Russia 637 965 China 2 398 634 2015 26 252 906 2016 26 722 522 The total volume of imports of neighboring countries in 2018 2017 29 129 133 amounted to more than 3 billion US dollars. 2018 30 964 986 COMPETITIVE ADVANTAGES REGIONAL MARKET The development of the rubber processing There are a number of enterprises that are generally produce industry; Low cost; rubber products in Kazakhstan, but they do not cover the inside High demand for products. demand of the republic. Major domestic manufacturers - «Rezina» LLP, Almaty region; STATE SUPPORT MEASURERS «Elastopolymer» LLP, Turkestan region; «Vostokremstroymontazh» LLP, Ust-Kamenogorsk; «KZRTI» JSC, Investment preferences TAX Karaganda; Exemption from customs duties (0% up to 5 years for import); «KazakhstanRubberRecycling» LLP, Nur-Sultan city. Tax benefits (VAT, corporate income tax, land tax, Foreign trade of the Republic of Import rubber products in property tax - 0%); Kazakhstan rubber products Nur Sultan city In-kind grants (land plots, buildings and structures, etc.); thousand US dollars 1361,2 Attracting foreign labor. 80 701 2015 2014 5826,8 2 803 Special economic zone 817 preferences 60 073 2016 2015 6201,8 3 506 Tax preferences (corporate income tax, land tax, tax on property); 2017 734,5 Customs preferences (import of raw materials and equipment); 2016 63 581 6773,2 1 904 Land with a ready-made infrastructure (free land plot rental); 739,1 Simplified procedure for hiring foreign labor (attraction of foreign 74 641 2018 2017 7504,9 labor out of quotas). 3 713 1080 85 176 2019 Business roadmap – 2025 2018 9382 3 907 Quantity, ton Subsidies (base rate of National Bank + 5%, of which 6% paid by Import Export the entrepreneur, and the difference is subsidized by the state); Import, thousand US dollars Guarantee (project amount up to 1 billion KZT for existing entrepreneurs, guarantee up to 50%); RAW MATERIAL BASE Infrastructure supplying. Synthetic caoutchouc - imports of primary raw materials from European Union countries and Russian Federation, processing by Economics of simple things domestic enterprises of «DDEK» LLP Shymkent city; % «KZ TRANSIT» LLP, Karaganda city. Subsidies (rate not more than 15%, subsidy up to 9% of loan Natural caoutchouc - during the Soviet period, Kazakhstan was a interest rates); leader in the production of raw materials for rubber products, and Guarantee (up to 50% on loans up to 3 billion KZT and up to has all the prerequisites for the restoration of the industry for 30% on loans over 3 and up to 5 billion KZT inclusive). growing rubber production in the Southern regions of Kazakhstan. State support measures for Kazakhstan manufactures through «Kazakhstan Rubber crumb - domestic recycling plants of rubber tires - capacity Industry and Export Center «QazIndustry» of 40 thousand tons per year is in the Republic of Kazakhstan, JSC capacity of Nur-Sultan city - 12 thousand tons per year – Reimbursement of part of expenses to subjects of industrial «Kazakhstan Rubber Recycling» LLP. Moreover, this power is not and innovative activity: enough to recycle the annual volume of tires requiring recycling. to increase labor productivity and territorial clusters development; POTENTIAL SALES MARKETS to promotion domestic processed goods in foreign market; to promotion domestic processed goods, works and services The main consumers in the regional market of rubber products are in internal market. Russia and China. Kazakhstan has a geographical advantage for making deliveries to these countries. 1 2 BEEF PRODUCTION General Classification of Types of Economic Activity 10.11.0 «Processing and conservation of meat» Meat processing plant with production PROJECT DESCRIPTION: capacity 1,5 thousand tons The project involves construction Production of cattle Production of cattle full-cycle beef production with meat in Kazakhstan meat in Akmola region the creation of a reproducer and feedlot sites. 416,8 2015 22 2015 789,1 42,6 BACKGROUND 430,6 21,7 Population growth – the population of the capital grew up to 2016 814,6 2016 42,2 30% in comparison with 2015; 450,4 22,3 Import substitution - beef imports in January-November 2019 2017 853,5 2017 43,5 amounted to 98.9% of the city's consumption; Developed infrastructure. 477,5 22,1 2018 906,2 2018 43,1 GLOBAL MARKET REGIONAL MARKET Main 501,4 23,7 2019 2019 46.2 Demand on beef is stable and sales markets of Kazakhstan 960,1 meat are Russia, Uzbekistan keeps in range of 40-45 billion and Kyrgyzstan. slaughter weight, life weight, US dollars. thousand ton thousand ton Global import of cattle meat, Production of cattle meat in Nur-Sultan city Beef export from bln US dollars Kazakhstan in 2018, ton 23,8 79,8 Main suppliers of beef in 719 2015 23,1 166,9 Kazakhstan are Ukraine 22,2 22 62,66 and Belarus. Export is 21,3 2016 20,9 120,1 mainly to Russia, 20,7 1103 20,5 19,9 72,5 Uzbekistan and 18,1 2017 2021 139,2 Kyrgyzstan. 515 59,46
17918,2 2018 114,1 330 slaughter weight, thousand ton 20 42,73 2 17918,2 2014 2015 2016 2017 2018 0 2019 82,3 life weight, thousand ton
fresh or chilled frozen meat Beef import to Beef export from meat Kazakhstan, US billion Kazakhstan, US billion Russia
Bahrain dollars dollars Kyrgyzstan Average cost per ton in fresh or Uzbekistan 1,2 2015 6,7 chilled condition, in global 2015 42,1 2,3 market - 6 182 US dollars Nur-Sultan city imports 1,1 6 Leaders in fresh or chilled beef 2016 2016 0,7 98.9% of the consumed 35,8 imports: beef meat in the city. This 1,117918,2 17918,24,5 USA ($ 3,1. billion); 2017 2017 0,3 fact and the steady growth 19,4 Japan ($2.1 billion); 2,4 of the population indicate 5,6 Germany ($2 billion). Average 2018 38,2 2018 0,6 favorable conditions for the cost per ton in frozen condition, 6,3 11,7 in global market - 4 565 US creation of production in 2019 39 2019 3,6 dollars the capital. Leaders in frozen beef meat fresh or chilled frozen meat imports: meat China ($4,7 billion); Prime cost of beef exported by Kazakhstan has a price USA ($2.2 billion); advantage in the global market. Hong Kong ($2.1 billion). Import price for beef to China in 2018, thousand US Dynamics of domestic beef market production in dollars/ton Nur-Sultan city 18,8
Indicators 2015 2016 2017 2018 11 months, 2019 15 9 Production, ton 79,1 62,7 72,5 59,5 38,9 8,5 4,7 4,7 Export, ton 24,3 0,0 0,0 0,0 134,6 5,5 4,5 3,5 4,4 3,2 Import, ton 154,1 252,1 614,7 210,9 3 352,8 3,5 Internal consumption, ton 233,2 314,8 687,2 270,3 3 391,7 Import share, % 66,1 80,1 89,5 78 98,9 Italy Brazil France Belarus Urugvay Australia Over the past 5 years beef production in Nur-Sultan city Argentina Kazakhstan
decreased by 46% which considering import volume indicates New Zealand great potential of meat production development in the city. fresh or chilled frozen meat meat
13 BEEF PRODUCTION Import prices for beef to Russia in 2018, Beef import in frozen condition of nearby countries thousand US dollars/ton in 2018 16,3 fresh or chilled Capacity of nearby countries market of fresh 11,8 meat
4663063 and chilled meat is 557 million US dollars, 7,7 frozen meat in frozen meat is 5,6 billion US dollars. 3,8 3,7 3,6 3,6 3,5 3,6
17918,2 3,3 1023398 cost, thousand US
892790 dollars weight, ton Belarus Urugvuay 7336
Paraguay Argentina Kazakhstan 244355 22047 5475 20478 18931 4391 12737 1133 7310 697 253 166 4065 463 39 RAW MATERIAL BASE 136 80 3 Growers foundation on 10 000 animal units; Approximate location: Akmola region;
Total area of grassland in 2018 in Akmola region – China Russia Belarus Ukraine Armenia Mongolia
4 483 hectar; Tajikistan Kyrgyzstan Uzbekistan Feed base-gross harvest of feed crops in Akmola region Azerbaijan
in 2019 - 42.6 thousand quintals. Turkmenistan COMPETITIVE ADVANTAGES Feed balance for wintering in Akmola region in 2018-2019, Raw material base availability; thousands tons Potential import substitution and product export; State support for investors and entrepreneurs. Dry fodder Haylage Silage Concentrated fodder STATE SUPPORT MEASURES Required 1104 141 113 526 Investment preferences Produced 1123 142 104 526 Exemption from customs duties (0% up to 5 years for import); % provision 102 101 92 100 Tax benefits (VAT, corporate income tax, land tax, property tax - 0%); In-kind grants (land plots, buildings and structures, etc.); Attracting foreign labor. Feeding platform for 5 000 animal units Special economic zone preferences in Akmola region in 2018 Tax preferences (corporate income tax, land tax, tax on property); Customs preferences (import of raw materials and equipment); Working Land with a ready-made infrastructure (free land plot rental); feeding Simplified procedure for hiring foreign labor (attraction of foreign platforms labor out of quotas). Нур-Султан Preferences in agro-industrial complex 8 feeding Creation and expansion of livestock slaughter and meat processing platforms for 19 facilities (the share of the return on investment is 25%); 00 cattle stall Reducing of beef harvesting cost (175 KZT/kg); Purchase of cattle breeding stock (150,000 - 225 000 KZT/per head); Over the past 5 years, the growth of cattle in Kazakhstan Reducing the cost of bulls sold or moved to fattening areas with a and in the Akmola region amounted to 33% and 46.6%, capacity of at least 1000 heads at a time (200 KZT / kg live weight); respectively, which is a favorable condition for the Creation and expansion of facilities for fattening cattle (share implementation of the project in the form of a growing raw compensation on investment is 25%); material base. Purchase of domestic breeding bulls - producers of meat breeds (150 000 KZT / per head); Livestock of beef steers in the The number of calves for Purchase of imported breeding or purebred breeding stock (225,000 Akmola region, thousand meat production in KZT / animal unit); heads Kazakhstan, thousand heads Keeping of the breeding bull-producer of meat breeds, used for the reproduction of the herd (100 000 KZT / per head); 2015 52 2015 918,2 Reducing the cost of fattening gobies for feed lots with a capacity of 1000 heads at a time (200 KZT / kg of weight gain); 2016 51 2016 979,8 Purchase of machinery and equipment for growing meat farm animals (share compensation on investment - 25%); 2017 55 2017 1078 Special tax treatment for agricultural products manufacturers (the 2018 70 2018 1168 right to reduce by 70% of amounts of corporate income tax, individual income tax, social tax, property tax and vehicle tax). 2019 76 2019 1222,6 Business roadmap – 2025 Subsidies (base rate of National Bank + 5%, of which 6% paid by the entrepreneur, and the difference is subsidized by the state); PRODUCERS Guarantee (project amount up to 1 billion KZT for existing Main producers on beef market in Nur-Sultan are «Tselinnaya entrepreneurs, guarantee up to 50%); plan of delicates» LLP, and «April 2030» LLP, in Kazakhstan Infrastructure supplying. Economics of simple things are «KazBeef Processing» LLP and «Aktubinsk meat cluster» Subsidies (rate not more than 15%, subsidy up to 9% of loan interest LLP. rates); Guarantee (up to 50% on loans up to 3 billion KZT and up to 30% on POTENTIAL SALES MARKET loans over 3 and up to 5 billion KZT inclusive). State support measures for Kazakhstan manufactures through Beef import in fresh and chilled condition of nearby countries «Kazakhstan Industry and Export Center «QazIndustry» JSC in 2018 Reimbursement of part of expenses to subjects of industrial and innovative activity: to increase labor productivity and territorial clusters development;
370724 cost, thousand US dollars to promotion domestic processed goods in foreign market; to promotion domestic processed goods, works and services in weight, ton internal market. 136561 100522 39224 14020 15990 4215 1805 1616 1252 2988 924 478 329
Russia China Belarus Uzbekistan Azerbaijan Armenia Ukraine
1 4 PRODUCTION OF SAUSAGES AND MEAT PRODUCTS General Classification of Types of Economic Activity 10.13.0 «Production of meat and poultry products»
Sausages and meat products production PROJECT DESCRIPTION: in Kazakhstan, thousand ton
January-December 18,1 7,5 Creation of production of 2019 г. 53,7 sausages and meat products 16,1 2018 6,9 from meat of cattle and 45 16,6 chickens, with a capacity of 2017 7,6 at least 10 thousand tons per 44,3 17,7 2016 6,1 year. 44,7 14,4 2015 9,5 GLOBAL MARKET 39,3 In general, the global demand for sausages and meat products semi-finished meat (including chicken meat) from beef and domestic chickens is a positive trend. Beef products canned food sausages and similar meat products is the most popular.
Import of sausages and meat Sausages and meat products production in Nur-Sultan, thousand ton products in the world, billion US dollars 7,2 7,7 7 6,7 6,6 January-December 0,8 4,9 5,1 2019 г. 3,5 4,2 4,2 4,7 2018 0,9 2,4 2,3 2,1 2,1 2,3 3,1 1 2017 2,4 2014 2015 2016 2017 2018 1 2016 2 sausages semi-finished chicken meat 2015 1,2 semi-finished beef meat 1,2
REGIONAL MARKET semi-finished meat (including chicken meat) sausages and similar meat products Sausages products are the most preferred product from the presented ones. In 2019, Russia imported about 77% of all MANUFACTURERS sausage products, 79% of all semi-finished meat products from In total 180 enterprises in Kazakhstan produce semi-finished meat domestic chickens and 81% of beef products to Kazakhstan. products, the main part of which is small and medium-sized enterprises. The largest ones are «Becker & K» LLP, «Kubley» Import of sausages and meat products LLP, «Rubikom» LLP, «Capital projects LTD» LLP, «Karat» LLP in Kazakhstan, billion US dollars and «April 2030» LLP. 12 companies are operating in Nur-Sultan, of which only one is large, «April 2030» LLP. 68,9 60,2 59,8 60,9 48,0 RAW MATERIAL BASE 21,3 Over the past 5 years, the growth of cattle in Kazakhstan and the 1,7 3,5 1,9 3,5 3,54,5 7,3 4,2 4,1 Akmola region amounted to 33% and 46.6%, respectively, which is 2015 2016 2017 2018 2019 a favorable condition for the implementation of the project in the form of a growing raw material base. sausages semi-finished chicken meat Livestock of meat direction in semi-finished beef meat Kazakhstan, thousand animal units 122,6 Import of sausages and meat products 1168 in Nur-Sultan city, billion US dollars 1,5 918,2 979,8 1078
1,0 76 51,8 51 55,3 70 0,7 0,7 0,3 0,3 0,3 0,3 0,3 2015 2016 2017 2018 2019 0,1 0,10,1 0,2 0,2 0,2 Kazakhstan Akmola region 2015 2016 2017 2018 2019 According to the «Union of poultry farmers of Kazakhstan», there are 20 sausages semi-finished chicken meat poultry farms in Kazakhstan in the meat direction. The largest are «Ust- semi-finished beef meat Kamenogorsk poultry Farm» JSC (East Kazakhstan region), «Alel agro» JSC (Almaty city), «Alatau-Kus» JSC (Almaty city) and «Makinskaya poultry farm» LLP (Akmola region). According to the Order of the Minister of National Economy of the Republic of Kazakhstan dated December 9, 2016 №503, the rational consumption rate of sausages products is 11 kg per year. Taking into Number of all bird types in account the population of Kazakhstan (18,653,467 people as of Kazakhstan, thousand animal units February 1, 2020), it is necessary to produce 205,2 thousand tons of 44,3 35 35,6 36,9 39,9 sausage products per year (Nur-Sultan city – 12,5 thousand tons). Based on these calculations and production volumes in Kazakhstan 4,4 4,9 5 5,7 7,6 and Nur-Sultan city conclude that the existing capacity is not enough to provide the population with sausage products. 2014 2015 2016 2017 2018 Kazakhstan Akmola region 1 5 PRODUCTION OF SAUSAGES AND MEAT PRODUCTS
POTENTIAL SALES MARKETS Import price of beef meat products in Russia in Total import volume of sausages, beef and chicken 2018, US dollar per ton meat formed at the level of 339 million US dollars in 2018. More Switzerland 24 000 than 52% of total volume falls on Russia. Italy 21 321 Spain 12 500 Belgium 5 888 Import of sausages products by Serbia 5 609 neighboring countries in 2018, Belarus 3 802 million US dollars Armenia 3 448 Russia 93,6 Mongolia 2 756 Azerbaijan 9,4 Kazakhstan 2 374 Tajikistan 6,7 Armenia 5,1 others* 10,7 COMPETITIVE ADVANTAGES *Ukraine, China, Belarus, Kyrgyzstan, Turkmenistan, Mongolia and Uzbekistan Raw material base; Great demand on the product; Import of poultry meat by neighboring countries in 2018, million US dollars Potential import substitution and product export; State support for investors and entrepreneurs.
Russia 6,3 Ukraine 6,2 STATE SUPPORT MEASURERS Belarus 4,5 Azerbaijan 3,1 Investment preferences others* 3,8 TAX *Kyrgyzstan, Armenia, Mongolia, China, Uzbekistan, Turkmenistan and Tajikistan Exemption from customs duties (0% up to 5 years for import); Tax benefits (Value added tax, corporate income tax, land tax, Import of beef meat by neighboring property tax - 0%); countries in 2018, million US dollars In-kind grants (land plots, buildings and structures, etc.); Russia 77,8 Attracting foreign labor. China 72,9 Ukraine 13 Special economic zone preferences Belarus 8,6 others* 17,1 Tax preferences (corporate income tax, land tax, tax on property); *Azerbaijan, Kyrgyzstan, Mongolia, Tajikistan, Armenia, Turkmenistan and Uzbekistan Customs preferences (import of raw materials and equipment); Land with a ready-made infrastructure (free land plot rental); PRODUCT COST Simplified procedure for hiring foreign labor (attraction of foreign labor out of quotas). Kazakhstan product has great price advantage against other exporter-countries in the Russian market. Business roadmap – 2025
Import price of sausage products in Russia in 2018, Subsidies (base rate of National Bank + 5%, of which 6% paid by the US dollar per ton entrepreneur, and the difference is subsidized by the state); Switzerland 18 611 Guarantee (project amount up to 1 billion KZT for existing Italy 11 600 entrepreneurs, guarantee up to 50%); Armenia 10 500 Infrastructure supplying. Serbia 5 126 Mongolia 4 338 Economics of simple things % Azerbaijan 3 750 Belarus 2 715 Subsidies (rate not more than 15%, subsidy up to 9% of loan interest Kazakhstan 950 rates); Guarantee (up to 50% on loans up to 3 billion KZT and up to 30% on loans over 3 and up to 5 billion KZT inclusive). Import price of poultry meat products in Russia State support measures for Kazakhstan in 2018, US dollar per ton manufactures through «Kazakhstan Industry and Export Center Germany 11 417 «QazIndustry» JSC Czech Republic 7 000 Reimbursement of part of expenses to subjects of industrial and innovative Denmark 4 863 activity: Slovenia 4 325 to increase labor productivity and territorial clusters development; Serbia 3 216 to promotion domestic processed goods in foreign market; Belarus 2 497 to promotion domestic processed goods, works and services in internal Armenia 2 000 market. Kazakhstan 1 222
16 ADVANCED WHEAT PROCESSING General Classification of Types of Economic Activity: 10.62.0 «Production of starch and starch products»; 10.91.0 «Production of ready-made feed for farm animals»; 20.14.2 «Production of bioethanol»; 20.14.9 «Production of other basic organic chemicals not elsewhere classified»
PROJECT DESCRIPTION: RAW MATERIALS BASE Kazakhstan consistently occupies one of the leading positions on Creation of a biotechnological wheat production in the world. According to the results of 2018, complex for advanced grain wheat gross harvest of wheat amounted to 13.9 million tons. Akmola processing with a volume of more region is the leader of the republic in terms harvest of wheat than 150 thousand tons per year to obtain processed products. (28.6%). Gross harvest of wheat, million tons OUTPUT PRODUCTS: 15 14,8 Bioethanol (ethyl Lysine; 13,9 alcohol with an alcohol Wheat starch; 13 13,7 Gluten; 4,3 4 concentration of more 3,9 4 than 80%); Lemon acid. 3,9 GLOBAL MARKET The global market for wheat-processing products 2014 2015 2016 2017 2018 characterized by constant growth, of which bioethanol is the Republic of Kazakhstan Akmola region most popular product. Exports of wheat and meslin are growing, indicating availability Import of wheat product processing in global market, of large stock of raw materials, at the same time, this fact billion US dollars indicates the weak development of wheat processing. 6,3 6,2 5 5 4,9 1,8 1,7 1,7 1,7 1,5
1,6 Kazakhstan exports of wheat and meslin, million US dollars 1,5 1,5 1,6 1,6 1,5 1,4 1,4 1,5 0,4 1,4 0,3 0,3 0,3 0,3 659,5 965,4 2014 2015 2016 2017 2018 1003,2 lemon acid wheat starch 688,7 685,1 lysine ethyl alcohol with an alcohol gluten concentration of more than 80%
REGIONAL MARKET 2015 2016 2017 2018 2019 Kazakhstan imported about 12,2 thousand tons products of advanced wheat processing (lysine, lemon acid, bioethanol, wheat starch and gluten) on total amount 11,8 million US dollars POTENTIAL SALES MARKET in 2019. In comparison with the export price of wheat, processed Kazakhstan imports of grain wheat processing products products have a significant advantage, in other cases thousand US dollars reaching almost 10 times the size. 8 522 8 040
6 401 Prices for products exported by Kazakhstan in 2018, US 5 731 dollars/ton 3 742 3 470 2 949 2 463 2 699 wheat and meslin 157 2 426 790 281 101 143 137 139 385 516 290 279
137 lemon acid 907 128 59 100 118 lysine 1383 2015 2018 2019 2016 2017 gluten 1 426 lemon acid wheat starch wheat starch* 440 lysine ethyl alcohol with an alcohol ethyl alcohol with an 1 333 gluten concentration of more than 80% alcohol concentration PRODUCERS of more than 80% For now, the main producer of advanced wheat processing products in Kazakhstan is «BioOperations» LLP with a capacity *Average import price of wheat starch in the world of 220 thousand tons of wheat per year. There are several dozen enterprises specializing in advanced Total import volume of neighboring countries made more processing today in Russia, however production of such than 390 million US Dollars in 2018. products as amino acids (lysine), vitamins or bioethanol is carried out only by Belgorod premixes plant No. 1 («Prioskolye» National Company) иand Tyumen agricultural holding «Anniversary».
1 7 ADVANCED WHEAT PROCESSING
Imports of wheat processing products from neighboring countries in 2018, thousand US dollars
Bioethanol lysine wheat starch lemon acid gluten
China 158 959 3 702 674 6 061 2 515 Turkmenistan 9 542 59 24 409 3 Russia 1 452 111 093 1 975 37 183 5 529 Azerbaijan 784 1 313 6 1 199 9 Armenia 220 221 9 314 255 Belarus 18 14 461 162 1 259 1 512 Kyrgyzstan 2 33 51 326 Mongolia 1 Ukraine 1 13 174 559 7 513 2 822 Uzbekistan 3 501 193 1 886 Tajikistan 64 39 276
COMPETITIVE ADVANTAGES Business roadmap - 2025 Raw material base availability; Significant demand for products; Potential import substitution and product export; Subsidies (base rate of National Bank + 5%, of which 6% State support for investors and entrepreneurs. paid by the entrepreneur, and the difference is subsidized by the state); STATE SUPPORT MEASURERS Guarantee (project amount up to 1 billion KZT for working entrepreneurs, guarantee up to 50%); Investment preferences Infrastructure supplying. Exemption from customs duties (0% to 5 years for import);
Tax incentives (VAT, CIT, land tax, property tax - 0%); Economics of simple things % In-kind grants (land, buildings and structures, etc.); Subsidies (rate not more than 15%, subsidy up to 9% of Attracting foreign labor (IRS). loan interest rates);
Special economic Guarantee (up to 50% on loans up to 3 billion KZT and up zone preferences to 30% on loans over 3 and up to 5 billion KZT inclusive). Tax preferences (CIT, land tax, tax on property); Customs preferences (import of raw materials and equipment); Land with a ready-made infrastructure (gratuitous rent of a State support measures for salary); Kazakhstan manufactures through Simplified procedure for hiring IRS (attraction of IRS out of «Kazakhstan Industry and Export quotas). Center «QazIndustry» JSC
Preferences in agro-industry Reimbursement of part of expenses to subjects of industrial and innovative activity: to increase labor productivity and territorial clusters Partial reimbursement of expenses for equipment purchase development; for enterprise production expansion of grain crops products to promotion domestic processed goods in foreign market; advanced processing with capacity of 170 tons or more (the to promotion domestic processed goods in foreign market. share of reimbursement of investments is 25%).
1 8 CONSTRUCTION OF A GREENHOUSE General Classification of Types of Economic Activity 01.13.2 «Vegetables, seeds and seedlings growing» Cucumbers gross harvest of covered field, tons PROJECT DESCRIPTION: 1 421,1 2019 87 629,5 (operational data) 30,1 It is considered to create a 222,7 2018 77 898,6 business for growing tomatoes 1 107,9 and cucumbers in covered 1 581,6 field conditions. 2017 74 102,4 268 906 2016 55 998 GLOBAL MARKET 291,2 After a decline in 2015, demand for tomatoes and 1 319,1 cucumbers gradually grew and by the end of 2018 exceeded 2015 59 013,5 the indicators of 2014. Akmola region Kazakhstan Nur-Sultan Global import, billion US dollars Tomatoes gross harvest, tons 9,4 9,1 9,5 2019 10 844,8 8,6 8,8 790 500,9 (operational data) 57,8 10 232,1 2018 765 453,4 60 2,9 12 186,9 2,6 2,5 2,5 2,6 2017 739 006,7 149,9 13 132 2016 705 550,1 164,6 2014 2015 2016 2017 2018 12 819 2015 687 687,4 tomatoes cucumbers 684,7 REGIONAL MARKET Akmola region Kazakhstan Nur-Sultan Tomatoes gross harvest of covered field, tons In recent years, the purchase of foreign tomatoes and 2019 962,7 cucumbers has been declining although it remains at a 122 581,3 high level. (operational data) 52,4 912,1 Kazakhstan import, thousand US dollars 2018 92 747,8 70 074 326,2 57 634 56 364 421,8 45 051 41 957 39 284 2017 99 331,1 321,9 506,2 11 770 13 369 6 977 2016 101 666,3 6 168 6 962 5 809 266,1
2014 2015 2016 2017 2018 2019 2015 83 744,9 tomatoes cucumbers 3,3 Akmola region Kazakhstan Nur-Sultan Nur-Sultan import, thousand US dollars 6 052,0 MANUFACTURERS There are 19 companies engaged in greenhouse farming in Nur-Sultan city, the main producer in Nur-Sultan city is «AstanaEcoStandart» LLP. There are 557 companies are operating in Kazakhstan, the largest 2 323,5 2 192,5 1 795,7 1 284,9 greenhouse farms are «Pervomaysky» LLP (Atyrau region), «Agrofirma «Zhana AK Dala» LLP (Turkestan region), «Ecoculture 278,4 80,2 336,0 59,1 20,8 fields» LLP (Almaty region), «Green land Alatau» LLP (Almaty region), 2015 2016 2017 2018 2019 «Greenhоuse Kazakhstan» LLP (Aktobe region), «Greenhоuse- tomatoes cucumbers qaztomat» LLP (Pavlodar region) and «Topar greenhouses» LLP (Karaganda region).
According to the minimum standards of Nur-Sultan city, RAW MATERIAL BASE currently, a minimum of 5.7 thousand tons of tomatoes Seed producer: and cucumbers are required annually (the minimum norm The scientific and Production Enterprise «INVENT-plusproduces more of kg/year for 1 person is 5 kg, the population of than 900 names of varieties and hybrids of vegetable and flower crops Nur-Sultan city on January 1, 2020, is 1,136,008 people). (Kostanay region, Tobyl city (previuos Zatobolsk). Production covers less than 1% of the required quantity. Fertilizer producers: «KazAzot» LLP produces technical ammonia and ammonium nitrate (Mangystau region, Aktau city, Industry zone 6); Cucumbers gross harvest, tons «KazPhosphate» LLP is engaged in the production of ammophos, 10 085,6 superphosphates, sulfoammophos and nigroammophos (Almaty 2019 (operational data) 494 671,8 69,5 city, Samal-1, bldg1A); 9 557,7 «Kazagrotumar» LLP – enterprise specialized in organic mineral 2018 460 109,8 fertilizer production (Pavlodar region, Pavlodar, Central industry 63,6 zone 1148); 11 053,4 2017 409 699,8 Artificial soil substitute producers: 121,8 «TechnoStroyAGRO» LLP supplies coconut mats for greenhouses in 12 434,5 2016 404 028,5 the form of pressed plates in a light-stabilized film (Moscow city, 126,1 Begovoy district, Skakovaya street, bldg17, str1, office 1216, BC 11 763,8 «Skakovaya 17»); 2015 396 608,3 414,8 «TECHNO» plant of «TECHNONIKOL» corporation produces stone wool substrates, capacity is 200 thousand cubic meters per year. Akmola region Kazakhstan Nur-Sultan (Ryazan city, Eastern promzone, bldg. 21, str58).
1 9 CONSTRUCTION OF A GREENHOUSE
POTENTIAL SALES MARKETS The total volume of tomato imports from neighboring RATES countries in 2018 was 803.5 million US dollars or 742.5 Electricity - 14,5 KZT/kW (without Value added tax); thousand tons. Demand for cucumbers in neighboring countries reached 144.5 million US dollars or 151.1 thousand Water supply - 195,36 (without Value added tax); Sewerage - tons. 203,06 (without Value added tax); Tomatoes volume import (fresh Gas transported via distribution networks, liquefied, per 1 kg - or chilled) in 2018, thousand US dollars 140,56 KZT; Russia 629 841 Heat supply - 3 907,37 KZT /gcal (without Value added tax). Belarus 117 433 Ukraine 37 154 Moldova 11 717 Kyrgyzstan 3 660 Turkmenistan 1 652 Armenia 1 058 COMPETITIVE ADVANTAGES Azerbaijan 549 Price advantage in the markets of neighboring countries; Mongolia 230 Production deficit in the city; Tajikistan 201 Potential import substitution and product import; Uzbekistan 46 State support for investors and entrepreneurs. Cucumbers and gherkin volume import (fresh or chilled) in 2018, thousand US dollars STATE SUPPORT MEASURERS Russia 123 114 Ukraine 8 931 Investment preferences TAX Belarus 6 353 Exemption from customs duties (0% up to 5 years for import); Azerbaijan 1 991 Tax benefits (Value added tax, corporate income tax, land tax, Kyrgyzstan 1 974 property tax - 0%); Armenia 1 089 In-kind grants (land plots, buildings and structures, etc.); Attracting foreign labor. Turkmenistan 603 Tajikistan 248 Special economic Mongolia 210 zone preferences China 25 Tax preferences (corporate income tax, land tax, tax on property); Customs preferences (import of raw materials and equipment); PRODUCT COST Land with a ready-made infrastructure (free land plot rental); Taking into account the average export price of Kazakhstan Simplified procedure for hiring foreign labor (attraction of foreign labor for the products (the export price for cucumbers is 983 out of quotas). US dollars per ton, for tomatoes – 756 US dollars), we have a serious competitive advantage in the markets of Business roadmap - 2025 neighboring countries. Subsidies (base rate of National Bank + 5%, of which 6% paid by the Tomatoes import price (fresh or chilled) of neighboring entrepreneur, and the difference is subsidized by the state); countries in 2018, thousand US dollars Guarantee (project amount up to 1 billion KZT for existing Armenia 2 632 entrepreneurs, guarantee up to 50%); Infrastructure supplying. Uzbekistan 1 840
Belarus 1 346 Economics of simple things %
Russia 1 090 Subsidies (rate not more than 15%, subsidy up to 9% of loan interest rates); Tajikistan 1 041 Guarantee (up to 50% on loans up to 3 billion KZT and up to 30% on loans over 3 and up to 5 billion KZT inclusive). Moldova 1 001 State support measures for Kazakhstan Kyrgystan 830 manufactures through «Kazakhstan Industry and Export Center Cucumbers import price (fresh or chilled) of «QazIndustry» JSC neighboring countries in 2018, Reimbursement of part of expenses to subjects of industrial and innovative thousand US dollars activity: China 6 250 to increase labor productivity and territorial clusters development; to promotion domestic processed goods in foreign market; Armenia 1 840 to promotion domestic processed goods, works and services in internal Belarus 1 154 market. Tajikistan 1 038 Russia 1 001
2 0 TOP SMART SPOT SPRAY SYSTEM
DESCRIPTION OF THE PROJECT: COMPETITIVE ADVANTAGE
Production of artificial intelligence system sensors for spot treatment of fields of various crops, including herbicides. The close location of agricultural regions of the republic;
Saves up to 60% of herbicides;
Lower government spending on subsidies;
Relatively low price;
High efficiency.
SUMMARY OF PROJECT BENEFITS MARKET ANALYSIS
Near the capital there are traditionally agricultural regions such as Saves time to refill the tank with herbicides; A Kostanay region; «healthier» product by reducing use of herbicides;
South Kazakhstan region; Saving water and fuel when spraying; Reducing environmental damage to soil, water, air. Pavlodar region; Neighborhood with countries where the agro-industrial Akmola region. complex is relatively developed (Russia, China, Uzbekistan). Number of agricultural companies in Kazakhstan:
Field area Company quantity 1 000 - 10 000 209 10 776 20 000+ 10 000 - 20 000 72 STATE SUPPORT MEASURERS
Special economic The total sown area in the Republic of Kazakhstan in 2019 was zone preferences 22 216 964 ha., which is comparable with the area of Almaty region or countries such as the United Kingdom, Romania, Belarus. Tax preferences (corporate income tax, land tax, tax on property); Farmers of the Republic of Kazakhstan purchase herbicides and pesticides for 32 million US dollars. Customs preferences (import of raw materials and State subsidizing farmers for the purchase of herbicides up to 50% of the amount. equipment); At the moment, in the Republic of Kazakhstan there are 1,376 Land with a ready-made infrastructure (free land plot herbicide spraying devices. rental); EXAMPLE OF USING THE SYSTEM Simplified procedure for hiring foreign labor (attraction Pilot project showed efficiency up to 80%, Agropark «Ontustik» of foreign labor out of quotas).
2 1 READY-BUILD FACTORY
Population (thousand people) Import Volume PROJECT DESCRIPTION: (million US dollars) 2015 873 2015 5759 The project is an industrial area with localized ready-made 17669 30567 973 4836 production enterprises, office space, necessary 2016 2016 infrastructure, and service cluster for industrial park 17918 25174 function. 1031918,2 17 17918,65062 2017 18157 2017 29599 1078 5825 2018 18395 2018 32533 PROJECT CONCEPT 1136 5717 2019 2019 Area for construction on turnkey basis 18632 38356 or land plot lease; Territory with ready-made modules Nur-Sultan Kazakhstan from 1,000 sq.m. up to 10,000 sq.m. Machines, mechanisms and equipment for rent; 5% 2% Offices and premises for rent by 1%2% Base metals and articles thereof 4% Mineral products service companies; 1% Common areas, exhibition hall; 2% Chemical industry products 3% Tools and apparatus Closed security perimeter. Kazakhstan 42% 3% Miscellaneous manufactured goods import INVESTMENTS 2% Plant Products structure Investments in construction - approximately make up 30 Wood and wood products 000 KZT per 1 sq. m.; 2019 year Weapons and ammunition Textile materials and products Pearls, The area of the land for construction in the form of in-kind 14% grant is from 5 ha. precious metals and stones Stone Products 6% Food products INDUSTRY 12% Animal products Agro-industry; Engineering; COMPETITIVE ADVANTAGES Construction industry; Low cost; Chemical industry; The possibility of obtaining in-kind grants in the form of a land plot Biotechnology; Metallurgy; STATE SUPPORT MEASURERS Light industry Investment preferences RAW MATERIAL BASE TAX Concrete - Building materials from concrete and its Exemption from customs duties (0% up to 5 years for import); components, take first place in volume in the production of Tax benefits (VAT, corporate income tax, land tax, property tax - 0%); building materials in Kazakhstan; In-kind grants (land plots, buildings and structures, etc.); Attracting foreign labor. Metalwork - Metalbases of Nur-Sultan city (warehouses and metal processing enterprises), «ArcelorMittalTemirtau» JSC, Special economic zone «Ulba Metallurgical Plant» JSC Ust-Kamenogorsk; preferences Sandwich panels - «Kazakhstan plant of enclosing structures» Tax preferences (corporate income tax, land tax, tax on property); LLP in Nur-Sultan city, «Nur-Zhas Kurylys» LLP in Almaty city, Customs preferences (import of raw materials and equipment); «PolymerMetall-T» LLP in Kapshagay city, «Alma Grad» group Land with a ready-made infrastructure (free land plot rental); of companies in Ust-Kamenogorsk city, «Z.KZ» LLP in Simplified procedure for hiring foreign labor (attraction of foreign labor Karaganda city. out of quotas). RENTAL MARKET FOR INDUSTRIAL BUILDINGS: Business roadmap – 2025 According to real estate sites kn.kz and krisha.kz the volume of industrial space for rent in Nur-Sultan city is 71 354 sq. m. Subsidies (base rate of National Bank + 5%, of which 6% The average cost of renting industrial space in cities of the paid by the entrepreneur, and the difference is subsidized country is: by the state); Almaty - 1 900 KZT per sq. m. (from 800 to 3,000 KZT); Nur- Guarantee (project amount up to 1 billion KZT for Sultan - 1,500 KZT per square meter. m. (from 1,000 to existing entrepreneurs, guarantee up to 50%); 2,000 KZT); Infrastructure supplying. Atyrau - 1 375 KZT per sq. m. (from 750 to 2,000 KZT); Shymkent - 1,250 KZT per sq. m. (from 500 to 2,000 KZT); Economics of simple things % Karaganda - 590 KZT per sq. m. (from 180 to 1,000 KZT); Kokshetau - 425 KZT per sq. m. (from 350 to 500 KZT). Subsidies (rate not more than 15%, subsidy up to 9% of loan interest rates); Guarantee (up to 50% on loans up to 3 billion KZT and up to 30% INDUSTRIAL PRODUCTION on loans over 3 and up to 5 billion KZT inclusive). (million US Dollars) State support measures for Kazakhstan manufactures through “Kazakhstan Industry and Export Center “QazIndustry” JSC Reimbursement of part of expenses to subjects of industrial and innovative activity: Nur-Sultan to increase labor productivity and territorial clusters development; 77837 75443 1958 Kazakhstan 53793 67987 79504 1849 1712 2075 1284 to promotion domestic processed goods in foreign market; to promotion domestic processed goods, works and services in 2015 2016 2017 2018 2019 internal market. 2 2 PRODUCTION OF BASALT FIBRE THERMAL INSULATION General Classification of Types of Economic Activity 23.99.2 «Production of mineral insulating materials»
Mineral wool production volumes in Kazakhstan for the last PROJECT DESCRITION three years have grown by 80%.
Сonstruction of a plant for the production of basalt fiber insulation. Mineral wool production volumes, thousand tons. Basalt fibers have a high natural initial strength, resistance to impact 2015 41 609 aggressive environments, durability, 2016 38 361 electrical insulating properties made 2017 30 733 from natural environmentally friendly 2018 40 382 raw materials. 2019 55 363 Products will be in demand in construction industry and energy. From 2016 to 2019 volumes of mineral wool imports in Kazakhstan grew by 81%, in Nur-Sultan city by 46%. Russia occupies the largest share in the import of these products - 85%. Potential sales markets are Belarus, PRODUCT Ukraine, Russia, Kyrgyzstan. Thermal insulation plates (frame walls, ventilated roofs, building facades, floors, attics); Import of mineral wool, thousand US dollars Insulation for sandwich panels. 19 766 2016 Nur-Sultan WORLD MARKET 8 207 27 341 Kazakhstan World imports of mineral wool, thousand US Dollars 2017 10 949 28 708 2018 2015 3 889 472 The average annual 10 714 growth rate of 35 817 2016 3 978 392 2019 mineral wool over 11 966 the past 4 years is 2018 4 905 661 8%.
REGIONAL MARKET Potential sales markets, tons
The construction sector is one of the important sectors of economies of the country and the capital, and one of the most Kyrgyzstan 7 012 attractive investment areas. Volume of construction work and the Russia 13 269 area commissioned residential buildings in Kazakhstan over the Ukraine 48 139 past 5 years have grown by 1.5 times, showing stable growth Belarus 72 913 dynamics. Average annual rate growth of investment in residential housing in the country for the last 5 years amounted to 18.4%, in Nur-Sultan city 16.7%. Mineral wool manufacturers in Kazakhstan
Total area of The volume of In General, there are 14 enterprises operating in Kazakhstan commissioned residential construction works of the buildings, thousand m2 Republic of Kazakhstan, for production of mineral insulation materials, among them billion KZT the largest are: «MakWool» Company - enterprise for the production of 1 759 2 856 2015 2015 8 940 472 thermal insulation materials based on basalt rocks 3 234 (Makinsk, Akmola region), 34,000 tons of high-quality 2 257 2016 2016 10 513 506 thermal insulation per year. 2 360 3 481 «Bazalt-A» LLP is in Kandyagash city, Aktobe region, 2017 2017 11 168 608 the structure includes: 2 378 3 843 Plant for the production of crushed basalt; 2018 2018 12 521 506 Plant for the production of mineral plates; 1 794 4 417 Plant for the production of aerated concrete blocks; 2019 2019 12 873 524 Branch of “Basalt-A» LLP in Nur-Sultan city. Thermal insulation materials plant «ECOTERM» (Temirtau Nur-Sultan city) - production of heat-insulating materials; Plant «IZOTERM» (Oskemen city) – modern basalt based Kazakhstan thermal insulation materials fiber, 65,000 tons of products per year.
2 3 PRODUCTION OF BASALT FIBRE THERMAL INSULATION
Bentonite clay. Deposits in Kazakhstan: Import price of mineral insulating materials from Kazakhstan has Taganskoe bentonite clay deposit (East Kazakhstan region); a price advantage in Russian market. Deposit of bentonite clays of the Akkalkansky site (East Kazakhstan region); Andreevskoye bentonite clay deposit (South Kazakhstan region). COMPETITIVE ADVANTAGES Import price in Russia, 2018, US dollars per kg Raw material base availability High demand in the product; Potential import substitution and product export; Kazakhstan 0,36 State support for investors and entrepreneurs. Belarus 0,48 Lithuania 0,73 STATE SUPPORT MEASURERS Turkey 0,90 Germany 1,35 China 2,12 Investment preferences TAX Poland 4,36 Exemption from customs duties (0% up to 5 years for import); Tax benefits (VAT, corporate income tax, land tax, property Kazakhstan imports over 60% of mineral wool from total tax - 0%); consumption in Kazakhstan. In-kind grants (land plots, buildings and structures, etc.); Attracting foreign labor.
Mineral wool consumption in Kazakhstan, thousand tons Special economic zone preferences
2017 53 308 Tax preferences (corporate income tax, land tax, tax on property); 2018 Customs preferences (import of raw materials and 99 821 equipment); Land with a ready-made infrastructure (free land plot rental); 2019 121 607 Simplified procedure for hiring foreign labor (attraction of foreign labor out of quotas). RAW MATERIAL BASE Business roadmap – 2025 Production of stone wool The highest quality rocks wool obtained from mountain gabbro- basalt rocks, with the insertion of carbonate rocks additives to Subsidies (base rate of National Bank + 5%, of which 6% regulate the acidity modulus. paid by the entrepreneur, and the difference is subsidized by the state); Deposits of basaltic rocks in Kazakhstan: Guarantee (project amount up to 1 billion KZT for existing Bulandynsky stone quarry, Akmola region ; entrepreneurs, guarantee up to 50%); Deposit of building stone Dubirsay, (West Kazakhstan region); Infrastructure supplying. Deposit of building stone (diabases) Akshkolskoye (West Kazakhstan region); Economics of simple things % Building stone deposit (diabase) Bercogurskoe-3 (West Kazakhstan region); Subsidies (rate not more than 15%, subsidy up to 9% of loan Mamytskoe construction stone deposit (West Kazakhstan region); interest rates); Building stone (diabase) deposit Sartauskoye-1(West Kazakhstan Guarantee (up to 50% on loans up to 3 billion KZT and up to region); 30% on loans over 3 and up to 5 billion KZT inclusive). Sary-Biik porphyrite deposit (East Kazakhstan region). One of the components of stone wool insulation is a binder that holds the fibers together, provides products with specified shape State support measures for parameters and density. Kazakhstan manufactures through “Kazakhstan Industry and Types of binder: Export Center “QazIndustry” JSC Bituminous binders. The main producers of bitumen materials in Kazakhstan are: Aktau Bitumen Plant («SP Caspi Bitum» LLP), Reimbursement of part of expenses to subjects of industrial «Gazpromneft-Bitumen Kazakhstan» LLP, «Pavlodar and innovative activity: Petrochemical Plant» LLP. to increase labor productivity and territorial clusters Synthetic binders (phenolalcohols, phenol-formaldehyde, urea development; resins). to promotion domestic processed goods in foreign market; Composite binders (binders consisting of several components) to promotion domestic processed goods, works and services in internal market.
24 PRODUCTION OF CERAMIC PLATES General Classification of Types of Economic Activity 23.31 «Production of ceramic coatings and plates»
Import of neighboring countries, thousand US dollars. PROJECT DESCRIPTION: 376 775 Establishment of production ceramic plates 165 337 in Nur-Sultan city. GLOBAL MARKET 18 854 15 525 13 633 12 085 Over the past 5 years, the level of demand for ceramic plates in the world has remained Russia China Uzbekistan Belarus Azerbaijan Tajikistan at the level of 17 billion US dollars, which means that this product is in demand PRODUCTION COST The average price of Kazakhstan for the export of tiles is 225 dollars Global demand, thousand US dollar per ton, which is quite lower purchase prices of neighboring 17 766 171 16 731 947 16 556 703 16 838 389 17 560 373 countries. This fact says about the low cost of our products which is advantage in comparison with the cost of production other countries.
Import prices, US Dollars per ton 2014 2015 2016 2017 2018 Kyrgyzstan 346 REGIONAL MARKET Armenia 179 Ceramic plates are one of the most popular decoration materials China 1296 all over the world. China and Italy are leaders in the production of Russia 462 ceramic plates. Export of these two countries makes up 50% of total world exports. COMPETITIVE ADVANTAGES The proximity of raw materials; Kazakhstan imports, thousand US dollar Lack of production in Nur Sultan city; 113 057 111 225 88 470 111 431 112 402 High demand. STATE SUPPORT MEASURERS
Investment preferences 1 274 1 244 2 000 1 782 1 663 TAX Exemption from customs duties (0% up to 5 years for import); 2015 2016 2017 2018 2019 Tax benefits (VAT, corporate income tax, land tax, property tax - 0%); Kazakhstan Nur-Sultan In-kind grants (land plots, buildings and structures, etc.); Attracting foreign labor. 57 051 Top 10 importer countries to the Republic of Kazakhstan, thousand US dollar Special economic zone preferences
Tax preferences (corporate income tax, land tax, tax on property); 23 064 Customs preferences (import of raw materials and equipment); 9 610 Land with a ready-made infrastructure (free land plot rental); 6 206 3 927 2 514 2 223 1 669 1 448 1 347 Simplified procedure for hiring foreign labor (attraction of foreign labor
Russia China Kyrgyzstan Belarus Spain Uzbekistan Germany Turkey Italy Poland out of quotas). Business roadmap – 2025 MANUFACTURERS Subsidies (base rate of National Bank + 5%, of which 6% paid by the There are 2 companies producing ceramic plates in Kazakhstan: entrepreneur, and the difference is subsidized by the state); «ZERDE-Ceramics» LLP, Shymkent city; Guarantee (project amount up to 1 billion KZT for existing entrepreneurs, guarantee up to 50%); «Ceramics» JSC, Aktobe region. Infrastructure supplying.
RAW MATERIAL BASE Economics of simple things % Clay, kaolin - Deposits in the Akmola region (Alekseevskoe, Yeltay, etc.). Subsidies (rate not more than 15%, subsidy up to 9% of loan interest rates); Guarantee (up to 50% on loans up to 3 billion KZT and up to 30% on loans over Quartz sand – «Aktobe Glass» Company, Aisarinskoe field in the 3 and up to 5 billion KZT inclusive). North Kazakhstan region, Zhar-As deposit in Akmola region, Kurgaldzhinskoye field in Akmola region, also there are deposits State support measures for Kazakhstan in West Kazakhstan, East Kazakhstan and Pavlodar regions. manufactures through «Kazakhstan Nepheline, slag, feldspar – Kokshetau deposits - 1 and 2, Industry and Export Center «QazIndustry» Zerendinskoye in the Akmola region, as well as deposits in East JSC Reimbursement of part of expenses to subjects of industrial and innovative Kazakhstan and Karaganda region. activity: POTENTIAL SALES MARKET to increase labor productivity and territorial clusters development; to promotion domestic processed goods in foreign market; The total demand for ceramic plates from neighboring countries in to promotion domestic processed goods, works and services in internal 2019 amounted to 602.2 million US dollars. market. The main buyers of these products are Russia (62%) and China (27%). 2 5 PRODUCTION OF ELECTRODES General Classification of Types of Economic Activity 23.90 «Production of carbon and graphite electrodes»
Silicates, ferroalloys – «Chemistry and Technology» LLP in PROJECT DESRCIPTION: Almaty city, «Kislotoupor Kazakhstan» in Almaty city. Creation of an enterprise for the POTENTIAL SALES MARKETS production of electrodes Total demand on electrodes of neighboring countries in 2019 in Nur-Sultan city made 150 million US Dollars. Main buyers of this product are GLOBAL MARKET Russia (47%) and China (31%). Over the past 5 years, the level of Import of neighboring countries, thousand US dollars demand for electrodes in the world 71 060 remains at the level of 1.1 billion US 47 322 Dollars, which indicates that this 11 629 product is a demanded product. 11 440 6 461 1 716 Global demand, thousand US dollars Russia China Uzbekistan Belarus Tajikistan 1 355 271 1 158 363 Azerbaijan 1 115 624 1 047 080 1 064 687 PRODUCT COST Considering that China and Russia are the largest electrode consumers, Kazakhstan has transport advantage against other importer-countries of electrodes to these countries. 2014 2015 2016 2017 2018 Import prices per ton, thousand US dollars REGIONAL MARKET 8 437 The product is in steady demand due to the growing construction of reinforced concrete structures and other 1 738 2 017 2 033 facilities where metal welding is required. 878 1 559 Import of Kazakhstan, thousand US dollars 26 398 Russia China Uzbekistan Belarus Azerbaijan Tajikistan 20 028 COMPETITIVE ADVANTAGES 17 292 19 533 16 005 High temps of construction in Nur-Sultan city; Lack of production in Nur-Sultan city; Proximity to the markets of China and Russia; Proximity to raw material base. 2 722 3 044 4 635 1 836 1 314 STATE SUPPORT MEASURERS 2015 2016 2017 2018 2019 Investment preferences TAX Republic of Kazakhstan Nur-Sultan Exemption from customs duties (0% up to 5 years for import); ТОП-5 стран-импортеров электродов Tax benefits (Value added tax, corporate income tax, land tax, в Казахстан, тыс. долл. США property tax - 0%); 7 918 In-kind grants (land plots, buildings and structures, etc.); Attracting foreign labor. 6 723 Special economic 1 695 1 594 zone preferences 909 Tax preferences (corporate income tax, land tax, tax on property); Customs preferences (import of raw materials and equipment); Russia China Austria Belarus Japan Land with a ready-made infrastructure (free land plot rental); Simplified procedure for hiring foreign labor (attraction of foreign labor MANUFACTURERS out of quotas).
There are 3 electrode manufacturing companies in Kazakhstan: Business roadmap - 2025
«Electrode CK» LLP – Karaganda city ( 1000 tons per year); Subsidies (base rate of National Bank + 5%, of which 6% paid by the «Pavlodar electrode plant» LLP (1200 tons per year); entrepreneur, and the difference is subsidized by the state); «Bagul» LLP – Zhambyl region (1500 tons per year). Guarantee (project amount up to 1 billion KZT for existing entrepreneurs, guarantee up to 50%); RAW MATERIAL BASE Infrastructure supplying. State support measures for Kazakhstan Welding wire – metal base Nur-Sultan city, «Ulbinsky metallurgical manufactures through «Kazakhstan plant» JSC in Ust-Kamenogorsk city, «ArcellorMittal» JSC in Industry and Export Center Temirtau city; «QazIndustry» JSC Graphite – stocks are presented by deposits of East-Kazakhstan, Reimbursement of part of expenses to subjects of industrial and Karaganda, West-Kazakhstan regions (Akmola, Aktasinskoye, innovative activity: Ayaguz group, Ayaqzhaylau, Baltatereq, Bugetysaiskoye, to increase labor productivity and territorial clusters development; Kalgutinskoye, Qaraquduqskoye, Qaragailinskoye, Leninskoye, to promotion domestic processed goods in foreign market; Sarytiganbai, Sya-Qezen, Shalqar); to promotion domestic processed goods, works and services in internal market.
2 6 PRODUCTION OF METAL FASTENERS General Classification of Types of Economic Activity 25.94 «Production of fasteners and threaded products»
PROJECT DESCRIPTION: Fasteners products import of neighboring countries in 2018, thousand US dollars
Creation of an enterprise for Turkmenistan 5 382 the production of metal fasteners on Armenia 6 246 Tajikistan 6 993 the territory of Nur-Sultan city. Georgia 13 076 MANUFACTURED PRODUCT: Kyrgystan 13 482 Mongolia 22 082 Rivets, washers and similar products without thread; Azerbaijan 32 801 Products manufactured on screw cutting machine; Uzbekistan 38 610 Bolts, screws, nuts and similar products. Iran 42 347 Belarus 71 421 GLOBAL MARKET Iraq 83 808 Ukraine 116 204 Import, thousand US dollars Russia 886 236 China 3 237 594 43 493 252 48 170 521 40 722 067 39 654 811 43 161 252 COMPETITIVE ADVANTAGES Wide range of implementation; 2014 2015 2016 2017 2018 Proximity to raw material base; Dynamics shows that fastener products from metal are on Low cost. stable demand. STATE SUPPORT MEASURERS REGIONAL MARKET Kazakhstan has established production of various fasteners, but domestic production does not cover all the needs of the Investment preferences TAX internal market. Exemption from customs duties (0% up to 5 years for import); Imports and exports of metal fasteners to Kazakhstan, Tax benefits (Value added tax, corporate income tax, land tax, thousand US dollars property tax - 0%); 129 529 In-kind grants (land plots, buildings and structures, etc.); 108 650 112 030 93 065 93 833 Attracting foreign labor. Special economic 4 912 1 878 961 1 268 2 056 zone preferences Tax preferences (corporate income tax, land tax, tax on property); 2014 2015 2016 2017 2018 Customs preferences (import of raw materials and equipment); Import Export Land with a ready-made infrastructure (free land plot rental); Fastener products manufacturers: Simplified procedure for hiring foreign labor (attraction of foreign labor «Almatinsky metizny plant» LLP; out of quotas). «Studbolt Manufacturing», Atyrau city; «Semipalatinsky Metizny Plant» LLP; Business roadmap - 2025 «Ferrum-Vtor», LLP, Shymkent city. Subsidies (base rate of National Bank + 5%, of which 6% paid by the RAW MATERIAL BASE entrepreneur, and the difference is subsidized by the state); Wire – metal bases of Nur-Sultan city, «ArcelorMittal Temirtau» Guarantee (project amount up to 1 billion KZT for existing JSC, «Ulba metallurgical plant» JSC Ust-Kamenogorsk city. entrepreneurs, guarantee up to 50%); Infrastructure supplying.
POTENTIAL SALES MARKETS Economics of simple things % The largest consumers in the world market of fasteners are Russia and China. Kazakhstan has a geographical advantage for Subsidies (rate not more than 15%, subsidy up to 9% of loan interest making deliveries to these countries. Also Nur-Sultan city is the rates); most convenient place for the implementation of this project, Guarantee (up to 50% on loans up to 3 billion KZT and up to 30% on as it is located close to sources of raw materials and well- loans over 3 and up to 5 billion KZT inclusive). developed infrastructure for exporting to neighboring countries. State support measures for Kazakhstan Import of fastener products, thousand US dollars manufactures through «Kazakhstan Industry and Export Center «QazIndustry» JSC Reimbursement of part of expenses to subjects of industrial and 18 223,6 innovative activity: 12 050,6 11 356,6 10 480,7
7 479,6 to increase labor productivity and territorial clusters development; 5 983,4 3 858,2 12 050,6 3 298,4 to promotion domestic processed goods in foreign market; 1 923,3 2015 2016 2017 2018 2019 to promotion domestic processed goods, works and services in internal Import tons (net weight) Export value, thousand US dollars market.
2 7 PRODUCTION OF ELEVATORS General Classification of Types of Economic Activity 28.22.4 «Production of Elevators» Import of elevators and lifts to nearby countries, thousand PROJECT DESCRIPTION USD Russia 305 291 Establishing Elevator production by building a China 136 593 plant with a capacity of at least 200 elevators Ukraine 43 474 per year Azerbaijan 16 049 Belarus WORLD MARKET 15 654 Uzbekistan 11 420 The last 5 years, the level of demand Global import of Mongolia 11 177 skip elevators and for elevators and the lifts in the world Kyrgyzstan remain at the level 5.7 billion USD, lifts, billion USD 5 839 Armenia 3 571 this fact indicates that this product is 2014 5,7 demanded goods. The main buyers are Tajikistan 1 850 2015 5,5 Russia (305.3 million USD), Great PRODUCT COST Britain (293.4 million USD) and Canada 2016 5,7 2017 5,7 The average price of Kazakhstan for the export of elevators and lifts is (249.8 million USD) 2,048 USD per ton, which is much lower than the purchase prices 2018 6,1 of neighboring countries. This fact indicates the low cost of our products which is an advantage in comparison with the cost of REGIONALAccording to MARKET the Ministry of Industry and Infrastructure Development of products from other countries. the Republic of Kazakhstan data, there were 24,025 elevators, of which Import of elevators and lifts to Main elevators 1,684 are subject to repair, and 4,478 require replacement at the end of nearby countries, thousand USD exporters to China, 2019 in Kazakhstan. 232 elevators were produced by Kazakhstan 2018 15 012 enterprises, 1 824 were imported. The capital occupied more than Japan 71,3 half of the import of elevators in the country in 2019 year (54.8%). Over Tajikistan 102 778 Sweden 9 122 the past 5 years, only in 2017 this indicator dropped below 50%, China 10 747 36,9 which suggests that Nur-Sultan city is the largest consumer of Uzbekistan 6 930 elevator building products in the republic. The main supplier of Belarus 5 378 elevators in the end of 2019 was China (57.3% share in the import Armenia 5 037 Main exporters of of elevators in Kazakhstan, and 53.4% share in the import of elevators to Russia, Russia 3 723 2018 elevators of Nur-Sultan city Kyrgyzstan 3 582 2 290 101,8 Azerbaijan 3 555 Belarus Foreign trade turnover, skip elevators and lifts, thousand USD 3 110 Mongolia 3 241 China 59,3 Nur-Sultan Ukraine 3 125 Switzerland 12 180 Kazakhstan 56,6 57 865,8 33 226,2 2015 2015 15,5 COMPETITIVE ADVANTAGES Low competitive environment; 36 844,7 2016 55 476,3 2016 High demand in the product; 1,8 Potential import substitution and product export; State support for investors and entrepreneurs. 46 969,4 22 339,3 2017 2017 102,9 98,4 STATE SUPPORT MEASURERS 40 468,7 22 025,2 Investment preferences 2018 2018 43 39,6 Exemption from customs duties (0% up to 5 years for import); Tax benefits (VAT, corporate income tax, land tax, property tax - 0%); 53 884,9 29 555,3 Import In-kind grants (land plots, buildings and structures, etc.); 2019 2019 Attracting foreign labor. 57,8 56,7 Export Preferences of special economic zones; MANUFACTURERS Tax preferences (corporate income tax, land tax, tax on property); There are 6 elevator manufacturers in Kazakhstan, of which the Customs preferences (import of raw materials and equipment); largest are «Almatylift» LLP (Almaty), «LGS KAZAKHSTAN Land with a ready-made infrastructure (free land plot rental); Simplified procedure for hiring foreign labor (attraction of foreign labor. ELEVATOR GROUP» LLP (Almaty region) and «Sky express out of quotas). elevator kz» LLP (Akmola region). In Nur-Sultan in the 2nd quarter of 2020, it is planned to launch a Business roadmap – 2025 plant for the production of construction lifting machines and Subsidies (base rate of National Bank + 5%, of which 6% paid by the mechanisms (self-lifting tower cranes, facade elevators, cargo entrepreneur, and the difference is subsidized by the state); lifts) «Lashyn Factory» LLP with a capacity of 110 units per year. Guarantee (project amount up to 1 billion KZT for existing entrepreneurs, guarantee up to 50%); Infrastructure supplying. RAW MATERIAL BASE Economics of simple things Potential supplier of metal parts: Subsidies (rate not more than 15%, subsidy up to 9% of loan Metallurgical Complex «ArcelorMittal Temirtau» JSC (Karaganda region). interest rates); Potential suppliers of electrical parts and safety systems: Guarantee (up to 50% on loans up to 3 billion KZT and up to «Hengda FUJI Elevator Co. Ltd» is one of the leading manufacturers of elevators, 30% on loans over 3 and up to 5 billion KZT inclusive). escalators and travelators, as well as components; «Mogilevliftmash» OJSC produces more than 130 basic elevator models, spare State support measures for parts and elevator upgrade kits; Kazakhstan manufactures through «Kazakhstan LGS Elevator Korea Co. Ltd - exports products to more than 50 countries. Industry and Export Center «QazIndustry» JSC Reimbursement of part of expenses to subjects of industrial and innovative POTENTIAL SALES MARKETS activity: The total demand for elevators and lifts in nearby countries in 2018 was us to increase labor productivity and territorial clusters development; 550.9 million US Dollars. The main buyers of these products are Russia (55%) to promotion domestic processed goods in foreign market; and China (25%). to promotion domestic processed goods, works and services in internal market.
2 8 OUTLET CENTER Outlet Center - in the shopping center format In the capital, retail outlets in the shopping center format are in PROJECT DESCRIPTION: great demand. So now there are about 15 shopping and entertainment centers in the city. Construction of the largest Outlet Center Average area of such malls is 56 000 sq.m. where brand stores of apparel, shoes, sport items, home products, cosmetics, jewelry etc. № Mall Total Opening name area year with 70% discounts will be located in the country. 1 Mega Silk Way 140 400 2017 MARKET ANALYSIS 2 Khan Shatyr 127 000 2010 Since 2010, the volume of retail trade per capita in the city has grown rapidly, on average by 13% per year. 3 Eurasia 80 000 1998
4 Keruen 64 000 2008 Per capita retail sales volume in Nur-Sultan city, KZT 1 200 000 5 Astana Mall 51 000 2012
1 000 000 6 Saryarka 39 000 2008
800 000 7 Tulpar 36 000 2009
600 000 8 Keruen City 34 500 2007
400 000 9 Asia Park 34 000 2009
200 000 10 Green Mall 27 404 2019
0 11 Abu Dhabi Plaza 26 000 2019
2010 2011 201220132014201520162017 2018 12 Aruzhan 20 000 2012 Over the same period, the total retail space increased by 1.5 times. Active construction of these shopping centers began after 2007. Retail space in Nur Sultan city, sq.m. Average time spent in the shopping center: more than 60 1 000 000 minutes. 900 000 The rent in them is higher than the national average; reaching 33,000 KZT per 1 sq. m., (~80 US dollars against 14 US dollars 800 000 on average in the Republic of Kazakhstan, more than 5 times). 700 000 COMPETITIVE ADVANTAGE Lack of large outlet center in the capital and the country; 600 000 Lack of range of famous brands in the city and country markets. 500 000 PROJECT BENEFITS SUMMARY 400 000 High public awareness about international brands; 300 000 Relatively high income compared to other areas of the country; Successful precedents of enter into the local market of such 200 000 brands as McDonalds, Starbucks, Apple Corp products. 100 000 STATE SUPPORT MEASURES 0
2010 2011 201220132014201520162017 2018 Business roadmap - 2025
Since 2014, clothing and shoes accounted for about 10% of the Subsidies (base rate of National Bank + 5%, of which 6% total retail trade in the Republic of Kazakhstan. paid by the entrepreneur, and the difference is subsidized by the state); The share of clothing imports is 80%, and the presence of products Guarantee (project amount up to 1 billion KZT for from such brands as Calvin Klein, Emporio Armani, Giorgio Armani, Burberry, Valentino, etc. among these clothes indicates the demand existing entrepreneurs, guarantee up to 50%); for premium clothing. Infrastructure supplying.
29 SMALL SOLAR POWER PLANTS
PROJECT DESCRIPTION: Competitive advantage
Income of electric power sales of energy supply companies; Production of electricity using solar power plants with a capacity of no more Electricity generating opportunity for own needs; than 100 kW for own needs and sale of electricity at a retail price. These solar power stations can be installed on different The station area is 500 sq .m. enterprises without binding to its activity.
Project summary
MARKET ANALYSIS 100% guaranteed realization of electric power according to the As part of a support for the development of renewable energy in Republic of Kazakhstan legislation; the Republic of Kazakhstan, the «net-consumer», measure adopted, according to which energy supply organizations (ESO) Electric power realization at a retail price of energy supply are required to buy 100% of electricity received from private companies; owners of renewable energy at retail prices. Power stations for legal entities – no more than 100 kW. Below is Opportunity to use free ecological pure energy; an analysis of the use of part of the electricity for the needs of the owner of small solar power plants (20%), and the rest – for Lowering electricity charges; sale (75%). Only solar panels considered in the analysis because the payback period of wind farms with a capacity of no more than Additional income; 100 kW is relatively high. Cooperation with the Republic of Kazakhstan in achieving of «green economics»; Solar power plants generated electricity of 100 kW Unit of measurement kW Comparatively low solar activity;
generated electricity in a year 142 405 Wind power plants of the capacity are paid off during more than 20 years. ready for sale Electricity 114 351 STATE SUPPORT MEASURES Mandatory purchase of electricity from private producers with Losses, 5% 7 120 renewable energy (netto-consumers) is guaranteed by the Electricity for sale (75%) 107 231 Order of the Minister of Energy of the Republic of Kazakhstan dated July 8, 2016 № 309 «On approval of the Rules for the purchase and sale of electricity from netto-consumers». Economic indicators of Solar power at 100kW Unit of measurement KZT Amount of paid to energy supply companies for 1 kW per hour by legal 16,87 entities Price of energy supply companies 1 808 986 taking into account devaluation
Energy supply companies’ paid sum 23 310 000 per year
Net income 21 098 127 (after payback period) Business roadmap - 2025 Income over 25 years 44 582 453
Average income per year 1 783 298 Subsidies (base rate of National Bank + 5%, of which 6% (whole period) paid by the entrepreneur, and the difference is subsidized Payback term, year 13 by the state); Guarantee (project amount up to 1 billion KZT for existing entrepreneurs, guarantee up to 50%); Infrastructure supplying.
3 0 OPTIMIZATION OF HEATING COSTS
PROJECT DESCRIPTION: System application example Object name Investments for 35 mln. KZT in the production of the «Volna Nursery Garden 2.0» thermal energy saving system for Calculated tariff for heat energy 17 712,14 the further implementation and reduction of the without VAT (KZT/Gcal) capital consumption by 10% Gcaconsumptionl for 2018-2019 452,875 Start time of the working day (hour) 8:00 a.m. The end time of the working day (hour) 19:00 Day off Saturday Yes Day off Sunday Yes
EXPECTED ECONOMY OF ESCO VOLNA 2.0 by calculation (%) 16,6 to Gcal 75,011 in KZT 1 328 606,19
COMPETITIVE ADVANTAGE Relatively low price compared to foreign analogues MARKET ANALYSIS Relatively low system maintenance heating Thermal energy Electricity Kazakhstan content over 60% 3, 04 0, 71 Experience in implementing the system, including million tons million tons in the capital of the Republic of Kazakhstan
Total coal supply for heat and electricity generation: 3.75 million tons
SUMMARY OF PROJECT BENEFITS Saving coal for the city per year, ton Reducing city spending on energy purchases (coal, gas), 600 000 their transportation and storage; 500 000
400 000 Reducing household spending on heat in heating period; 300 000 Reduced operating costs for manufacturers in the city; tons of coal 200 000 Reduction of harmful emissions into the atmosphere. 100 000
0,5 1 3 5 7 10 15 20 25 30 35 40 45 50 70 90 100 STATE SUPPORT MEASURES
Special economic zone City savings preferences per year, tenge Tax preferences (corporate income tax, land tax, tax on property); 2 500 000 000 Customs preferences (import of raw materials and equipment); 2 000 000 000 1 500 000 000 Land with a ready-made infrastructure (free land plot rental); 100 000 000
500 000 Simplified procedure for hiring foreign labor (attraction of foreign
0 20 40 60 80 100 120 labor out of quotas).
31 OPTOCULUS INNOVATIVE SECURITY SYSTEM
The sensor-cable does not require connection to power PROJECT DESCRIPTION: lines or additional means of communication and switching. Production of fiber-optic system sensors PROJECT BENEFIT SUMMARY for protection of objects and detection of technical failures, including infrastructure Service market of vibro-acoustic monitoring has been only ones (mines, pipelines, wells, KOIKI). formed. By 2025 the market will be more than 2 billion US dollars;
MARKET ANALYSIS Domestic product;
Potential preservation of human life and health; Age of oil pipelines by a length in Republic of Kazakhstan, % Savings by reducing response time to technical problems and other emergencies.
5%
25% STATE SUPPORT MEASURERS up to 10 years 29% from 11 up to 20 years Special economic from 21 up to 30 years zone preferences from 31 up to 40 years Tax preferences (corporate income tax, land tax, tax on more than 40 years property); Customs preferences (import of raw materials and equipment); 9% 32% Land with a ready-made infrastructure (free land plot rental); Simplified procedure for hiring foreign labor (attraction of foreign labor out of quotas).
More than 43% of Kazakhstan's oil pipelines are older than 20 Business roadmap - 2025 years, which increases the possibility of leaks due to depreciation. Subsidies (base rate of National Bank + 5%, of which 6% There are more than 10 large mining companies operating in paid by the entrepreneur, and the difference is subsidized Kazakhstan with their own mines, which is also a potential area of by the state); application of this system. Guarantee (project amount up to 1 billion KZT for existing entrepreneurs, guarantee up to 50%); The capital's heating and sewerage systems also includes Infrastructure supplying. pipelines that can be serviced by a security system.
EXAMPLE OF USING THE SYSTEM
Project on prevention of potential collapses in the mines of «ArcelorMittal Temirtau» JSC and protection of fiber-optic communication lines;
Project on detection of concentrate congestion in pipes of aluminum plants of ERG group of companies.
COMPETITIVE ADVANTAGE
Reliability;
Low cost;
Small weight and sizes;
Resistance to aggressive environments and difficult weather conditions;
Lack of susceptibility to electromagnetic fluctuations;
3 2