Development Bank of Kazakhstan CJSC provides $10m to Kazakhstan Kagazy CJSC for further realization of a project on paper, corrugated board and paperboard production

/IRBIS, March 19, 02/ - The Board of Directors of Development Bank of Kazakhstan CJSC (Astana) bonds of which are traded at Kazakhstan stock exchange (KASE) under highest category of the listing approved a financing in the form of syndicated loan for amount of $10 million dollars of further realization of technically unique for Central Asia project - "Paper, corrugated board and paperboard production for food industry". Specified amount was given to he operator of the project - Kazakhstan Kagazy CJSC for five years. It is informed in a press release of PR-service of Seymar OJSC (Almaty) distributed today. As it is mentioned in the press release during last years a demand for paper products in Kazakhstan has risen significantly. Last years it has been increasing by about 15% per year mainly due to noticeable progress of food industry, which needs packaging complying with foreign analogs. However paper plant located in Abai settlement of Almaty oblast will be oriented not only in food industry but also packaging production. Paper and cardboard of high quality are necessary in almost all spheres - starting mass media and monitors production. According to information of Seymar OJSC, production capacity of the plant accounts for 100 tons of paper per day. Assortment of products includes craft-paper (for packaging sacks from 1 kg to 10 kg), paper for corrugating, cardboard, corrugated board, label, write-print, offset paper, notebooks etc. according to specialists, the plant production will capture in the future not less than 30% of the market of Kazakhstan. Kazakhstan Kagazy founded on February 05,2001 is a project of industrial investment company Seymar OJSC on construction and launching of the paper plant. As it was informed earlier, the beginning of the construction is 2001 (launching took place on December 16), the ending - 2002. General contractor is Promdorstroy CJSC. For Seymar OJSC this project has not only economic value. According to specialists of the company, paper plant Kazakhstan Kagazy will be able to replace from the market imported products contributing into import substitution programs, creation of work places, developing in Kazakhstan of modern technologies and reorientation of financial flows. So far in Kazakhstan a 90% of total volume of paper consumption accounted the import, mainly Russian import. At the same time a potential of Kazakhstan market of paper and cardboard is relatively high and may reach based on Seymar estimates, in average more than 8 kg per head. Increased last time a demand for packaging is based on a growth of domestic production of the republic. According to the most modest estimates, a capacity of only Kazakhstan market of paperboard packaging today accounts for more than 30-50 million dollars annually. According to Seymar information, the plant Kazakhstan Kagazy is equipped with the modern papermaking equipment including production line on spoilage processing with capacity of 12 th. tons per year. The line was worked out on the contract with Czech company Papsell - one of the world leaders in technologies of spoilage processing of paper production. Such equipment among CIS countries locates in Russia Sankt-Peterburg. Each year in Almaty only as a minimum 150 th, tons of paper spoilage is thrown out. For the city the problem of the wastes utilization is the most actual since a huge amount of wastes including used packages, newspapers and other wastes remains in the streets. Seymar OJSC informs that a line on processing of spoilage paper will be put into operation soon. For provision of this line Kazakhstan Kagazy organizes through the city a network of reception points of spoilage paper for the charge. It will allow the population earn through wastes collections and at the same time will clean up the city. Therefore, the project solves ecological problems too. Before the provision of syndicated loan by Development Bank of Kazakhstan CJSC the project Kazakhstan Kagazy has been financed due to the financing of Seymar OJSC and credit resources extracted by KAZKOMMERTSBANK OJSC. A total it is planned to invest into project about 47 million dollars. Currently the financing of the first stage has been opened which accounts for $19.3m.