Oil extraction plant construction begins in Petropavlovsk

The Development Bank of Kazakhstan (the DBK), Baiterek Holding’s subsidiary, has opened a line of credit to implement an investment project of Maslo-Del Petropavlovsk LLP. The enterprise plans to construct a new oil extraction plant with a processing capacity of up to 1,200 tons of oilseeds per day.

The launch of the new extraction plant will significantly increase the processing of oilseeds and the production of cattle fodder (oilcake) and vegetable oil, in particular, flaxseed and rapeseed oils. When reaching full capacity, the company plans to process 180-300 thousand tons of oilseeds per year, which is 7.6-12.7% of the annual gross harvest of oilseeds.

The project is completely export-oriented. The vegetable oil will be sold to China, while cattle fodder will be sold to Europe, Russia, and China. Maslo-Del Petropavlovsk LLP plans to put the plant into operation in 2023. The plant will be built on the territory of the existing grain storage with a total capacity of 58 thousand tons of oilseeds.

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– We will use cold-pressed technology to increase demand in foreign markets since the project is aimed at developing the export potential of Kazakhstan. In order to comply with international standards, production equipment will be purchased from leading European suppliers. Moreover, the existing laboratory for quality control of incoming raw materials will be expanded to analyze the products of the new oil extraction plant, – said Pavel Selivanov, the Director of Maslo-Del LLP.

The enterprise’s competitiveness will be ensured by its proximity to raw materials, the use of modern European equipment and up-to-date technologies, highly qualified personnel, and the company's many years of experience in implementing similar projects. Moreover, Maslo-Del LLP has its own elevator for storing oilseeds on the same site as the plant, which will significantly reduce the product cost.

The total cost of the project is 15 billion tenge, of which 11 billion tenge (73%) were provided by the DBK as a loan for 12 years. The project is being implemented under the Business Roadmap-2025 Program and the State Program of Industrial and Innovative Development of the Republic of Kazakhstan for 2015-2019. The credit issued by the DBK will be used to purchase and install equipment and pay for commissioning.

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– The Maslo-Del conglomerate is our long-standing reliable partner. Besides financing the new plant in Petropavlovsk, the DBK helps it purchase oilseeds for the production of 20,000 tons of vegetable oil. The oil produced with the support of the DBK is exported to China. Vegetable oil of the Maslo-Del brand is sold under the O'live, Zhailau and others trademarks. We are glad that our clients return to us with even more ambitious plans. This means the services we provide are helpful, – noted Adil Ismagambetov, the Managing Director of the Development Bank of Kazakhstan.

The plant is of great social importance for the North Kazakhstan Region, a leader in the production of oilseeds. Given its impressive processing capacity, the plant will motivate local agricultural manufacturers to increase the sowing of sunflower seeds, flax seeds, and rapeseed. The launch of the plant will create an additional 217 jobs and boost the production and export of products to 300 thousand tons per year. It will increase the share of processing in the region from 30% to 60%.

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The export amount of the Maslo-Del Company is steadily growing: in 2015, the export of products amounted to 2.44 billion tenge, in 2020 – 10.16 billion tenge, in January-August 2021 – 11.48 billion tenge. Since 2015, exports have increased more than 5 times. After the plant is launched, exports are expected to increase 2 times more compared to the current level. The increase in production will have a positive effect on tax revenues to the budget; it is expected to be about 1.2 billion per year.