Kazakhstan, Iran to build $285-mln glass plant in Kyzylorda
ASTANA. Sept 9 (Interfax) - JSC Investment Fund of Kazakhstan and Iran's Kaveh Flat Glass Co., which belongs to the Kaveh Glass Industry Group, signed an agreement on the creation of a joint venture (JV) for the construction of a plant for the production and processing of plate glass in Kyzylorda in the south of Kazakhstan.
The cost of construction will amount to 52 billion tenge or about $285 million, JSC National management holding Baiterek said.
This project will be implemented by the new project company, Orda Glass, whose shareholders are JSC Investment Fund of Kazakhstan [with a 49% stake in the company] and the strategic investor, Kaveh Float Glass Co. [51%], the holding said in a statement released during a Kazakh-Iranian business forum in Astana on Tuesday.
Shareholders are financing about 30% of the project's cost or $85.2 million, and 70% or $198.7 million will be borrowed. The Bank of Development of Kazakhstan is being considered as a source of funding, the statement said.
The construction of the enterprise on the territory of a new industrial zone in Kyzylorda will begin in October 2014. The launch of operations is scheduled for Q3 2017. The plant's capacity will amount to 197,000 tonnes of products a year.
Kaveh Glass Industry Group was founded in 1985 and is a major producer of flat industrial glass and dishes.
The official exchange rate on September 9 was 182 tenge/$1.
