Kazakh national company KazAtomProm acquires stake in JSC Kaustik

Business Materials 3 December 2013 19:55 (UTC +04:00)
Kazakh National Nuclear Company (NNC) KazAtomProm has closed deal on the acquisition of 40 per cent of ordinary shares in the JSC Kaustik,

Astana, Kazakhstan, Dec. 3

By Daniar Mukhtarov - Trend:

Kazakh National Nuclear Company (NNC) KazAtomProm has closed deal on the acquisition of 40 per cent of ordinary shares in the JSC Kaustik, according to the Kaustik's message.

The deal on acquisition of the JSC Kaustik's shares has been carried out as part of the implementation of the Kazakh President, Nursultan Nazarbayev's instruction on establishment of a full-fledged chemical cluster on basis of the Pavlodar Free Economic Zone (FEZ), according to the message.

It is planned to establish a series of KazAtomProm related import-substituting productions on the basis of JSC Kaustik. The matter particularly rests in obtaining caustic soda and hydrogen peroxide that are used in the mining and processing of uranium and for the production of chlorine and rare-earth metals and reagents.

In addition, it is planned to establish production of reagents for purification and disinfection of drinking water based on transfer of advanced international technologies.

"KazAtomProm's participation of in the Kaustik's project will not only enhance the economic efficiency of the company's enterprises and the product line's expansion, but also will contribute to the development of Kazakhstan's scientific and technical potential as part of the president's instructions," KazAtomProm Chairman Nurlan Ryspanov said.

KazAtomProm's becoming one of the shareholders of the Kaustik is a landmark event both for the plant and for development of chemical industry as a whole, according to the chairman of the JSC Kaustik's managing board, Yerlan Orymbekov.

JSC Kaustik was established in 2002 on the basis of the asset complex of the JSC Pavlodar Chemical Plant. In 2011 the Pavlodar plant launched the caustic soda production on the basis of membrane method, thanks to the funding from the JSC Development Bank of Kazakhstan and JSC EximBank Kazakhstan.

At the present the projected annual capacity of the JSC Kaustik is: 30,000 tons of caustic soda, 26,000 tons of liquefied chloride, 45,000 tons of hydrogen chloride and 6,600 tons of sodium hypochloride.

JSC Kaustik is a main enterprise of the Pavlodar special economic zone, approved by the decree of the Kazakh President, Nursultan Nazarbayev in 2011. Its priority is to expand production capacity to 90,000 tons of caustic soda per year in accordance with the State Program of Accelerated Industrial-Innovation Development and the Program for Development of Chemical Industry.