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on investment projects in Kostanay

In 2017 in the city of Kostanay will be 3 major investment projects:

1) the Project is LLP "Saryarkaavtoprom" - "Production of JAC cars with CKD method", worth more than 5 billion tenge, with the creation of 35 jobs.

In March 2015, signed a license agreement for production of cars JAC, in the framework of the implementation plan 40% of the cars will be sold in Kazakhstan, 60% will be exported to the Russian Federation.

In July 2015 between SAP and SMS signed an agreement on financing.

 In August 2015, between SMS, JAC and SAP signed a framework agreement on strategic partnership.

 November 3, 2016, during the teleconference with participation of the Prime Ministers of Kazakhstan and China on the production site of LLP "Saryarkaavtoprom" demonstrated a model line of cars JAC, the production of which is established in Kostanay method DKD (SKD). In accordance with the plans of the companies in the 1st half of 2017 will start the process of welding and painting of cars JAC model S3, by CKD (CKD), with the localization of production more than 30%. The planned production capacity of this line will be up to 10000 (ten thousand) units per year. Over the next three years will bring the level of localization of car production to 50%, through the construction of a plant for the production of automotive components. The

Chinese side produced and prepared all the necessary technological equipment, and supplies is scheduled for completion in December 2016.

Currently, LLP "Saryarkaavtoprom" construction and installation work, taking into account the approved work plan:

- design, removal of old units and utilities, site preparation, major installation of electricity, installation of Assembly lines, capital lines and assemblies, hydraulics and mechanisms, carrying out of dismantling of old equipment, inventory of existing pledged equipment, control and monitoring of works

- coordination of the documentation with the services of operators of utilities,

- receipt of project technical documentation

- check the welding, assembling and painting equipment.

2) the Project of JSC "Bayan-Sulu" - "Expansion of existing biscuit production plant № 2". The project cost of 1.26 billion. The period of implementation until November 1, 2017. In the framework of the investment program it is planned the acquisition of 2 lines: for the production of coated bars with liver and caramel and lines for the production of coated bars with nougat and caramel.

3) the UI Project "Parkhomenko Gregory V." - "Construction of meat processing complex with capacity of 20 thousand tons per year." The project cost 2.3 billion tenge is expected to create about 70 new jobs, the project is planned for 2015-2018.

The resolution of akimat of Kostanay city has allocated a land plot of 11 hectares in the area of plant Kazhimvolokno. Currently this fully fenced, the plot held power network obtained all the necessary technical conditions for connecting to the city sewer system and the water system. Development of design estimates for construction of meat processing complex is completed, submitted to the state examination, to obtain a conclusion. The issue of leading of engineering communications at the expense of means of the Republican budget in the framework of the business Road map – 2020 (introduction of the missing infrastructure), in the amount of 400 million tenge. Work is underway on the preparation and construction of premises for plant meat processing enterprises. The construction of the necessary premises is planned from steel structures and sandwich panels. The total floor space of 4,000 sq. m. negotiations to supply equipment from Poland. The cost of the equipment, according to preliminary estimates, will amount to 900 million tenge.

Currently, work is underway on attracting of borrowed funds in the amount of 1.7 billion tenge (JSC "Sberbank").

Also, Outside of the Map are considered 4 of the project, to be commissioned in the current year 2017.

1) LLP "Servopohony terminal "Tema", project "the Construction of elevators with capacity of 8 thousand tons." Implementation period 2015-2017. Project cost 262 million tenge, with the creation of 14 new jobs.

The initiator of the project LLP "Servopohony terminal "Tema" performed considerable work on its implementation. At the moment completed work on the construction of the weight, hangar, laboratory, aggregate and drive. Availability of utilities: water, sewer, gas, electricity. Installed storage capacity of 4 thousand tons (1 section). There is a railway siding. It remains to complete work on final finishing of the internal premises of buildings and structures, as well as the installation of a storage capacity of 4 thousand tons (2 section). When the total project cost 262 million tenge, disbursed about 230 million tenge. Funding is entirely by private funds. Due to financial difficulties, the owner decided to suspend work on the project implementation until October 1, 2017.

2) the Project of LLP "Kostanai flour company" - "the Construction of a Creamery with a capacity of 20 tons of oilseeds per day." Investment amount of 250 million tenge, with the creation of 20 new jobs. The implementation period is 2017.

3) the Project of LLP "Castorstrasse" - "Construction of elevators with capacity of 15 thousand tons." The project cost 450 million tenge. The implementation period is 2017.

4) the Project LLP", Mieko" "Construction of plant for processing of buckwheat capacity 55 tons per day". The project cost is 500 million tenge, it is planned to create 43 new jobs. The deadline for the project is 2017. It is planned the purchase and installation of new equipment, with a total cost of 500 million tenge. The production capacity of 12000 tons of buckwheat per year. Output of 8500 tons. The project will be implemented on the existing production capacities of the enterprise. The project is planned at the expense of own means.

In addition, three projects are currently under consideration.

JSC "Eurasian Foods Corporation" plans construction of an oil extraction plant with a capacity of 300 thousand tons of oilseeds, including refinacing construction of plants and facilities packing. Preliminary project cost 85 million USD (first stage), with the creation of 250 jobs. The duration of the project – 2019.

 2 February 2016 Department of architecture and urban planning of akimat of Kostanay city in all the relevant services seeks the approval of provisional act of land plot selection for construction of the plant, Uralskaya street, with an area of 14.5 hectares. Department of architecture and urban planning of akimat of Kostanay city is the final act of choice of land is coordinated with the interested state bodies. DGP "Kastanienbaum" made land use project. Contract No. 2-12/279 dated April 05, 2016 land lease is signed, the procedure of state registration in PSC passed.

With the aim of the project LLP "Eurasian Foods Corporation", filed an application in JSC "Kazakhstan development Bank" for a loan on preferential terms. Information about size of borrowed funds by the project proponent at the moment is not disclosed. It is known that at the moment nearing completion of the second stage of the application – results of indicative conclusions. Prepared technical conditions for connection to external power grids and other utilities – water, sewer, gas.

The second project of LLP "Astana Favourite Group" - "Construction of Elevator with capacity of 50 thousand tons per year", with a project cost of 2.6 billion tenge, with the creation of 35 jobs. The project implementation period in 2018. Department of architecture and urban planning together with the concerned services agreed the act of choosing the land plot of 4 hectares at the address: industrial area (station Station - West, 9). Elevator equipment is located in the city of Zhitikara. The procedure of customs clearance is done. The contract of lease of the land. Currently, land surveying and exploration to determine the location of technological equipment.

The third project of the company "Kerama Marazzi" in the implementation of the investment project: "Construction of plant on production of ceramic tiles production capacity of the first stage 5 million square meters of products per year, at the end of the second stage – 7 million sq m of finished products per year." Investment of over 50 million dollars and create 250 new jobs. Company with a world name is a leader in the manufacture and sale of ceramic tiles, ceramic granite and mosaic. In March this year at the regional level, a meeting was held with representatives of the company. The decision of the akimat of Kostanay № 170 from 25 January 2016 to reserve a land plot with an area of 21,3034 hectares, for building Narrow-gauge (near the "Humpback" bridge), with the Department of business, for investment purposes under the project Kerama Marazzi. During the working visit of the delegation of company representatives from 29 to 31 March 2016 was carried out inspection of said land, held a series of meetings with representatives of public authorities and interested enterprises and organizations of the city on the issue of plant construction and utility communications. Prepared detailed information on issues of land allocation, creation of a subsidiary in the city of Kostanay, on the measures of state support.


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