Astana, Kazakhstan, Sept.14
By Daniyar Mukhtarov - Trend:
Baiterek National Holding JSC attracted a strategic partner, large Iranian company "Kaveh Float Glass Co.", to build a glass manufacturing factory in Kyzylorda, the press service of Baiterek national holding said.
Subsidiary of Baiterek National Holding JSC, Investment Fund of Kazakhstan and the Kaveh Glass Industry Group's Kaveh Float Glass Co. (Islamic Republic of Iran) signed an agreement on establishing of a joint venture for the purpose of implementation of the "Construction of a plant for the production and processing of flat glass with a capacity of 197,000 metric tons per year in Kyzylorda" investment project, the Kazakh holding said.
Implementation of this project worth about 52 billion tenge ($ 1-182 tenge) will be carried out by the new Orda Glass project company, whose shareholders are "The Investment Fund of Kazakhstan" (the share in the authorized capital - 49%) and strategic investor "Kaveh Float Glass Co ." (51%).
Funding for the project will be carried out both at the expense of shareholders' equity, and the loan. Thus, 30 percent, which is about $85.2 million of the cost of the project, is financed by the shareholders, 70 percent - $198.7 million account for borrowed funds. A subsidiary of Baiterek National Holding JSC - Development Bank of Kazakhstan JSC is considered as a source of the borrowed funds.
"In accordance with the agreement, the construction of a new plant on the territory of the new industrial zone of Kyzylorda will begin in October 2014. Commissioning is scheduled for the third quarter of 2017," the holding said.
The plant will produce products that comply with the European quality standards: flat glass (1.971.000 metric tons / year), hardened flat glass (3,700 metric tons / year), mirrors (3 million sq m. / year), windows (7,700 metric tons / year) as well as energy-saving glass with magnetron deposition (11 million. sq m. / year).
Reportedly, 70 percent of the products will be sold on the domestic market, the rest will be sent for export, mainly to the countries of the Customs Union and Central Asia.
Under the contract, Kaveh Float Glass Co. takes a series of commitments - to provide new modern technologies, train technicians at its factories and manage the construction process. After commissioning, according to the terms of the agreement, Kaveh Float Glass Co. intends to develop the distribution network of sales of the integrated products on the markets of Kazakhstan, Russia and Central Asian countries.
In its turn, Kazakhstan will consider the possibility of provision of investment and industrial preferences, will take measures to protect the domestic market, as well as assist in provision of the guaranteed volume of purchase.