QIC has approved financing for a number of companies under the Manufacturing Industry Project Financing Program

Among the funded companies are KaspiMunaiKapital LLP, Kazakhstan Hot Dip Galvanizing Plant LLP. Also in December 2023, an agreement was signed on financing Vehicles Almaty LLP.

KaspiMunaiKapital LLP (Uralsk) is a manufacturer of oil and gas equipment and engineering products in the region, which has a design bureau with its own drawings and experimental stands for product testing.

The company received financing in the amount of KZT 1,000 million. The allocated funds are aimed at expanding and modernizing the complex for the production of machine-building products (block technological equipment, modular buildings, valves, tools for capital and periodic repairs of oil wells, etc.).

The project provides for the creation of up to 50 additional jobs.

Kazakhstan Hot Dip Galvanizing Plant LLP is a design company established in 2022 to implement a project for the construction of a hot dip galvanizing plant. The project is being implemented on the territory of the Saran Industrial Zone (Karaganda region). Hot-dip galvanizing (a method of applying a zinc coating to the treated surface) is considered one of the most reliable, economical and widespread methods of protecting iron and steel from corrosion.

The company received financing in the amount of KZT 4,990 million, which is used for the construction of the plant and the purchase of equipment.

The plant's equipment assumes the design capacity of the plant - 48,000 tons of metal structures per year, including galvanizing pipes, sections of masts, corners, channels, chipping beams and other structures up to 12 meters long, which are the target market segment.

The key consumers of galvanized products are companies producing metal structures, including in the field of energy, construction and mechanical engineering.

The implementation of this project will cover up to 80% of the needs of Kazakhstani manufacturers of metal structures in hot-dip galvanizing and create more than 110 jobs.

Vehicles Almaty LLP (a subsidiary of Astana Motors) localizes the production of car seats at a plant under construction in the Industrial Zone of Almaty. 

In December 2023, BV Management LLP and Vehicles Almaty LLP signed a financing agreement for a total amount of KZT 1,800 million (refundable).  In total, investments in the project amount to KZT 3,000 million, of which KZT 1,200 million are own funds of Astana Motors and Youngsan. Jointly with Youngsan (Republic of Korea), Astana Motors plans to provide seats to Kazakhstani automakers, both members of the Astana Motors Group of companies, and external enterprises. At the first stage, it is planned to produce sets of seats for Hyundai passenger cars and later for other brands.

Financing under the agreement is planned to be directed to capital expenditures (plant construction) and the purchase of equipment for the plant. The production capacity of the plant under construction will amount to 100 thousand sets of seats per year. In the first year of operation, the manufacturer plans to produce 10 thousand sets of seats, followed by an increase in production volumes.

The successful implementation of the project will meet domestic demand in the industry, increase the share of localization of cars, components of Kazakhstani production and the volume of high-tech non-primary production in the Republic of Kazakhstan. At the first stage of the company's work, more than 25 jobs will be created.

The main investment directions, financing conditions and counter obligations under the Financing Program for Manufacturing Industry projects can be found here. 

Background information:

Qazaqstan Investment Corporation JSC is a fund of private equity funds established in 2007, whose main mission is to develop private equity infrastructure in Kazakhstan in order to promote sustainable economic development of Kazakhstan. It is a subsidiary of NMH Baiterek JSC. See additional information on the website https://qic.kz/ru .

BV Management LLP, a subsidiary of Qazaqstan Investment Corporation JSC, is a Private Equity Fund Management Company and acts as a General Partner for the DBK Equity Fund C.V. and KCM Sustainable Development Fund I.C.V.  See additional information on the website https://bvm.kz /.