Kazakhstan-China Partnership: A Wheat Deep Processing Plant to Be Built in Kostanay

04.07.2024

A plant for the deep processing of wheat, Qostanay Grain Industry, will be launched in the Kostanay region. The new facility will provide permanent employment for 600 residents of Kostanay.

This agreement was reached within the framework of the Kazakhstan-China Business Council. A four-party memorandum was signed between the regional authorities, the investor, the company providing equipment and engineering services, and the business founders—these include the Akimat of Kostanay Region, Baiterek Venture Fund (a subsidiary of Qazaqstan Investment Corporation), the Chinese company Myande Group, and the agricultural holding KazFoodProducts, which owns the new enterprise.

The launch of the new plant is expected to not only provide employment for the region’s residents and generate income for the state budget, but also positively impact food security and export potential, as well as contribute to the development of the agro-industrial complex.

The capacity of the new Qostanay Grain Industry plant will be 430,000 tons of deep wheat processing per year. The plant will produce amino acids, bioethanol, gluten, animal feed, and wheat bran. The plant is scheduled to launch in 2027.

"This memorandum reflects the country's commitment to the development of innovative and environmentally sustainable production facilities. The qualifications of engineering and technological specialists in the region will be enhanced. The construction of the Qostanay Grain Industry plant will contribute to the further development of other industrial enterprises and wheat producers in the region," said the Akim of Kostanay Region, Kumar Aksakalov.

Furthermore, within the framework of the memorandum, a project is planned to increase the production capacity of the AsiaAgroFood plant, a leader in the deep processing of wheat and corn in Almaty Region, from 200 to 300 tons per day. This agreement will have a positive impact on resolving social issues that arose last year for farmers in the region regarding the sale of corn.

"Based on the four-party memorandum, we plan to increase the production of starch syrup to 33,000 tons per year. This will create opportunities for new jobs, and Kazakhstan’s confectionery companies will be fully supplied with domestic starch syrup. We are pleased to launch such large-scale agricultural projects in close cooperation with the Akimat of Kostanay Region, Baiterek Venture Fund JSC, and Myande Group Co., Ltd.," said the CEO of KazFoodProducts, Alikhan Kairatbek.

The parties expressed confidence in the successful implementation of these projects, which will contribute to the development of the agricultural sector and strengthen the region’s economic stability.

As part of the Kazakhstan-China Business Council, several documents on the economy, investments, and trade were signed, strengthening the strategic ties between the two countries. Clearly, such agreements demonstrate the readiness of both nations for long-term partnership and set a new benchmark for economic prosperity.

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