Investment Projects - Creation of an oil extraction plant in SEZ in Petropavlovsk

Products

Upon reaching full design capacity by 2028, the projected sales volumes are as follows: sunflower oil – 116 thousand tonnes, flaxseed oil – 12.9 thousand tonnes, rapeseed oil – 22.5 thousand tonnes, granulated sunflower meal – 82.3 thousand tonnes, granulated flax meal - 20.5 thousand tonnes, granulated rapeseed meal – 26.7 thousand tonnes, granulated husk (pellets) - 22.1 thousand tonnes. The entire oil production is planned for export to China, Uzbekistan, Iran, Turkey, and EU countries such as Poland and Belgium. The company aims to sell approximately 50% of the meal and husk volume in the markets of Uzbekistan and EU countries like France and Italy, while the remaining products will be sold on the domestic market.

Project description

The Project provides the construction of an oil extraction plant for the processing of vegetable oils with a capacity of 924 thousand tonnes per year in Qyzyljar Special Economic Zone in Petropavlovsk, North Kazakhstan region. The configuration of the industrial site for the planned production has been finalised, along with the technical specifications for the design of the plant, production technology and the list of equipment to be supplied. The project roadmap has been approved.

Company

Initiator of the project is Atameken-Agro Oils LLP. The Company is a part of Atameken-Agro JSC, a large agricultural holding company consisting of 16 companies. Atameken-Agro JSC has been operating since 2003 and is a prominent player in the Kazakhstan agricultural sector, with a land fund exceeding 440,000 hectares in the North Kazakhstan and Akmola regions. The holding's companies annually produce around 400,000 tonnes of various crops, which are sold both domestically and internationally.

Market

• In 2022, the total harvested area dedicated to oilseeds reached 3.4 million ha, marking an increase of 437 thousand ha compared to the previous year.
• In 2022 in Kazakhstan, the volume of sunflower oil production amounted to 537 thousand tonnes. In 2018-2022 sunflower oil production has grown at a CAGR of 19.4%.
• As of 2022, the volume of vegetable oil consumption in Kazakhstan amounted to 457 thousand tonnes, which is 5% more than last year.
• In 2022, the entire volume of sunflower oil imported to Kazakhstan, totaling 60.9 thousand tonnes, came from Russia.

• Advantageous location. The production site is strategically planned in North Kazakhstan region, offering access to a well-developed transportation hub and ensuring efficient product delivery throughout Kazakhstan. The region benefits from an extensive railway network, connecting it to other parts of the country and neighbouring nations.
• Proven track record. The Company is affiliated with the prominent agricultural holding, Atameken-Agro JSC, comprising 16 companies. With a presence since 2003, the holding has established itself as a leader in the Kazakhstan agricultural sector. It has a land fund exceeding 440 thousand hectares in North Kazakhstan and Akmola regions, producing a diverse range of agricultural products. Annually, the companies within the holding collectively produce 400 thousand tonnes of crops, which are sold in both domestic and international markets.
• Availability of raw materials. Atameken-Agro JSC's portfolio includes subsidiaries engaged in the cultivation of sunflower, rapeseed and flax seeds. These crops serve as the primary raw materials for the Company's production.

The Project requires investment of US$ 46,582 thousand (at the rate of 449.2 tenge), of which:

• 50% (US$ 23,291 thousand) – debt financing subject to collateral;
• 50% (US$ 23,291 thousand) – investor participation.