KazNex Invest earns contracts with leading international industrial firms
ASTANA. January 13. KAZINFORM During the last few days of 2010, Kazakhstan signed several notable agreements with a number of Western industrial companies thanks to the work by the National Export and Investment Agency "KazNex Invest." Separate agreements were reached with the French company "Air Liquide," the German "Funke Kunstoffe," and the Finnish "Lumuchip."
On December 28, 2010, the KazNex Invest announced that the French company Air Liquide would invest in the production of industrial gases and liquid nitrogen for the needs of the oil and gas and metallurgical sectors in Kazakhstan. The company will build high technology production lines for the Shymkent and Pavlodar petroleum refineries, as well as the country's other major industrial enterprises such as the "KPS Steel" LLP, the "Kazzinc" LLP, and the "Kazakhmys" JSC, according to the agreement, Kazakh Foreign Ministry's press release reads.
From 2011 to 2015, the European investor intends to invest about EUR 50 million per year in building production lines in Kazakhstan. Within the project, the French company will train the personnel and provide complex services for the plants.
"Securing investments from a large international company such as "Air Liquide" in Kazakhstan's market is a success for our country and a qualitative breakthrough in the development of chemical and metallurgical industries... We expect "Air Liquide" to stimulate small and medium sized foreign investment companies involved in the production of industrial gases," Deputy Chairman of the "KazNex Invest" Alen Iskakov said.
On December 29, KazNex Invest successfully completed negotiations with the German "Funke Kunstoffe" JSC and signed an agreement on attracting EUR 18 million towards building a plant for the production of PVC profiles with the capacity of 25,000 tons of products annually.
The plant will be an environmentally friendly, emission-free, high quality, and export-oriented industry. About 60 percent of the products will be sold in Russia, 30 percent inKazakhstan, and 10 percent in Central Asia. The German investors will also cover the costs associated with training, enterprise maintenance, and management. The project is expected to create 150 jobs.
"Building plants with 100 percent financing from foreign investors is an indication of high confidence in Kazakhstan's investment climate, government efficiency, and the head of state's direct support for foreign investors. The development of this project is a major contribution to the implementation of the programme of accelerated industrialization (PAIID), which can give additional impetus to the development of chemical industry and cluster development," Regional Director for Europe of the KazNex Invest Marhabbat Balgabayev said.
The start of the construction is scheduled for March-April 2011. In the second phase of cooperation in 2013, "Funke Kunstoffe" intends to build another factory for the production of PVC pipes worth EUR 20 million which will create additional 200 jobs.
The Finnish company Lumichip, a manufacturer of LEDs of different types and purposes such as high-brightness illumination LEDs and LEDs for illumination of devices, scales, and indicators, has expressed interest in establishing joint production in Kazakhstan, KazNex Invest announced on December 24. The total amount of investment for this project will be US$ 30 million.
The production of LED modules and finished products based on LEDs is a promising field for Kazakhstan given the fact that under the Law "On Energy Conservation" in 2012 the country will begin introducing a gradual ban on the importation of incandescent bulbs.
The "KazNex Invest" JSC is Kazakhstan's development institution focusing on the country's exports and attracting foreign investment. The agency "works with the Kazakh companies already exporting products, as well as companies potentially capable and willing to export. In addition, the company works with foreign companies aiming to raise their capital, technology, and knowledge in Kazakhstan," the agency's website says.
Kazakhstan's Ministry of Industry and New Technologies established the agency in April 2010 on the basis of the Kaznex Corporation for Export Development and Promotion. During 2008-2009, the Kaznex Corporation helped sign contracts worth US$ 120 million in total.
The KazNex Invest is financed by the state budget and provides its services free of charge. The agency works under the State Programme of Accelerated Industrial and Innovative Development (PAIID) of Kazakhstan for 2010-2014, which is focused on the advancement of non-extractive exports from the country, Kazinform refers to the News Bulletin of the Kazakh Embassy to the United States of America.