Chemical
Content
Chemical and Petrochemical Industry
R
epublic of Kazakhstan is abundant with natural resources used for the production of chemicals and petrochemicals. There are rich reserves of potassium salt, borates, bromine compounds, sulphates, phosphorites, sulphur pyrites, wallastonite, and feedstock for varnish-and-paint industry. Kazakhstan produces synthetic detergents and soap, mineral fertilizers, coarse microbiological protein, chemical fibers and threads, synthetic resins and plastics. There is a lot of untapped potential for manufacturing of various petrochemical synthesis products, in particular, ethylene, polypropylene, and resin. During the Soviet period, a number of chemical and petrochemical plants were set up in Kazakhstan. Lasting relationships with counterparts from other Soviet republics, who were both on the supply and demand side of the market, were established. Russian scientific centers were the driving research force for the operations of Kazakh petrochemical companies. After the dissolution of the Soviet Union, heavy dependence on the imported raw materials, coupled with the insolvency crisis, initiated a deep recession in the Kazakh petrochemical industry. High transportation costs, insufficient use of local resources, increased competition from abroad made it difficult for the companies to stay in business. However, in recent years the sector gradually started recovering from recession. Kazakhstan enterprises produce chemical fibers and threads, chrome compounds, calcium carbide, plastics and technical resin composites. In 2001, chemical plants increased production of chrome oxide, phosphorus, chlorine, monohydrate serum acid, and natrium triphosphate. North Kazakhstan region produces textolite and getinaks, the output of which was 52.8 and 88.9 tons respectively in 2000. The country also produces plastic packaging. In 2000, around 22 Mln plastic bottles and flasks were made by various enterprises. The government of Kazakhstan supports development of chemical and petrochemical industry. To support the sector and realize the growth potential, in May 17, 2001, the government of Kazakhstan has issued the Program for Revival and Development of Chemical and Petrochemical Industry in the Republic of Kazakhstan for 2001-2002. A longer-term development program (until the year 2010) to bolster oil, gas, and petrochemical sectors of the country will be prepared by the government in 2002. The main objective in the industry is enhancement of existing capacities through introduction of state-of-the-art technologies, better utilization of raw materials, and introduction of new production lines to generate added value in the country and to reduce import dependence on processed plastics, resins and chemical products. To support the industry, the government secured reduced railroad tariffs for chemical and petrochemical products. It encourages foreign investments in the industry, as there is a lot of untapped potential, especially in the petrochemical industry, as large volumes of oil and gas are exported abroad in a crude or unprocessed form. In general, many chemical and petrochemical enterprises face financial difficulties and need additional investments and up-to-date technologies.
Chemical and petrochemical companies
Chemical industry is based on rich resources of phosphorites in southern and western Kazakhstan, utilization of sulphur dioxide produced by metallurgical industry and rich resources of salts in northern and southern Kazakhstan. Out of 110 elements of Mendeleyev’s table, 99 were identified in the country, 78 of which were explored and more than 60 are used in production. Development of chemical industry in Kazakhstan started with Shymkent Santonin Plant, which utilized santonin that grew along Begun and Shayan rivers. Later on, Aralsulphosphate Doing Business in Kazakhstan - 1 Chemical Industry
plant was built in northwestern Kazakhstan, and became a base for the glass industry. Chemical industry is developing in the following directions: · · · · Development of phosphorite reserves and production of phosphorite fertilizers; Utilization of sulphur dioxide of ferrous and non-ferrous metallurgy; Production of petrochemical synthesis products; Development of various salts, etc.
Large reserves of phosphorite ores and existing regional demand for phosphorite fertilizers determined development of phosphorite industry in southern and western Kazakhstan. Chemical plants were built to develop phosphorite reserves in Karatau and Aktobe. Karatau phosphorite field was discovered before the WWII, and Karatau Mining Plant and Taraz Superphosphate Plant were built to develop the field. New fields were discovered later, hence, concentrating mill in Zhanatas, and the second plant “Karatau” were built in the region. Two mining plants: mining union “Karatau” and Zhambyl Superphosphate Plant formed a chemical unit ChemProm. Shymkent-based plant “Fosfor” also utilizes Karatau phosphorites, and is also one of the largest production plants in Central Asia. ChemProm and KazPhosphate NDFZ are the largest phosphate producing plants. In 2000, 15.4 thousand tons of phosphate were produced in the country. 12.4 thousand tons of soap, detergents and detersives were manufactured, mostly in South Kazakhstan. Karaganda region produces serum and hydrochloric acid. “Promplastmassa” plant in Stepnogorsk makes polyvinylchloride pipes. The annual production stands at 2,250 tons of pipes and 1,200 tons of profile systems. Aktau plastic plant operates in the Western Kazakhstan. Technological process allows for the production of ethylene, ethylbenzene, styrene, shockproof crystallized polystyrene, and foaming polystyrene. OJSC Stroyplastmassa is located in Karaganda, Central Kazakhstan. The plant specializes in the production of polyethylene pipes, protective helmets, high-pressure polyethylene tarp, and domestic plastic goods. A company Himvolokno is located in Kostanay, North Kazakhstan. It has the equipment capable of producing the following chemical products: polyamide fiber or phenylone used in the production of filters, work clothes, and paper; phenylone thread; polymer tape cohesive used in aircraft and rocket production, insulating materials and paper manufacturing. The company is currently looking for an investor. Zavod Polypropylene is located in Atyrau, West Kazakhstan. The plant has equipment to produce polypropylene, hey-binding propylene cord, woven polypropylene sacks, and plastic consumer goods. Currently, the management is working on the expansion of the plant’s capacity. SaranResinotechnica is located in the Central Kazakhstan. It is one of the largest rubber plant in the Soviet Union, and produces mechanical rubber goods, including frost and heat resistant conveying belts, extra high tensile belts of rubber mixtures, heat-proof conveyer belts, firm and special rubber-rope hoses, rubberized billows, etc. Pharmaceutical industry, mainly represented by ChemPharm plant, located in the Southern Kazakhstan region, produced medicine for more than 2 bln tenge in 2000. Plant’s product range includes more than 140 different drugs.
Doing Business in Kazakhstan
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Chemical Industry
R
epublic of Kazakhstan is abundant with natural resources used for the production of chemicals and petrochemicals. There are rich reserves of potassium salt, borates, bromine compounds, sulphates, phosphorites, sulphur pyrites, wallastonite, and feedstock for varnish-and-paint industry. Kazakhstan produces synthetic detergents and soap, mineral fertilizers, coarse microbiological protein, chemical fibers and threads, synthetic resins and plastics. There is a lot of untapped potential for manufacturing of various petrochemical synthesis products, in particular, ethylene, polypropylene, and resin. During the Soviet period, a number of chemical and petrochemical plants were set up in Kazakhstan. Lasting relationships with counterparts from other Soviet republics, who were both on the supply and demand side of the market, were established. Russian scientific centers were the driving research force for the operations of Kazakh petrochemical companies. After the dissolution of the Soviet Union, heavy dependence on the imported raw materials, coupled with the insolvency crisis, initiated a deep recession in the Kazakh petrochemical industry. High transportation costs, insufficient use of local resources, increased competition from abroad made it difficult for the companies to stay in business. However, in recent years the sector gradually started recovering from recession. Kazakhstan enterprises produce chemical fibers and threads, chrome compounds, calcium carbide, plastics and technical resin composites. In 2001, chemical plants increased production of chrome oxide, phosphorus, chlorine, monohydrate serum acid, and natrium triphosphate. North Kazakhstan region produces textolite and getinaks, the output of which was 52.8 and 88.9 tons respectively in 2000. The country also produces plastic packaging. In 2000, around 22 Mln plastic bottles and flasks were made by various enterprises. The government of Kazakhstan supports development of chemical and petrochemical industry. To support the sector and realize the growth potential, in May 17, 2001, the government of Kazakhstan has issued the Program for Revival and Development of Chemical and Petrochemical Industry in the Republic of Kazakhstan for 2001-2002. A longer-term development program (until the year 2010) to bolster oil, gas, and petrochemical sectors of the country will be prepared by the government in 2002. The main objective in the industry is enhancement of existing capacities through introduction of state-of-the-art technologies, better utilization of raw materials, and introduction of new production lines to generate added value in the country and to reduce import dependence on processed plastics, resins and chemical products. To support the industry, the government secured reduced railroad tariffs for chemical and petrochemical products. It encourages foreign investments in the industry, as there is a lot of untapped potential, especially in the petrochemical industry, as large volumes of oil and gas are exported abroad in a crude or unprocessed form. In general, many chemical and petrochemical enterprises face financial difficulties and need additional investments and up-to-date technologies.
Chemical and petrochemical companies
Chemical industry is based on rich resources of phosphorites in southern and western Kazakhstan, utilization of sulphur dioxide produced by metallurgical industry and rich resources of salts in northern and southern Kazakhstan. Out of 110 elements of Mendeleyev’s table, 99 were identified in the country, 78 of which were explored and more than 60 are used in production. Development of chemical industry in Kazakhstan started with Shymkent Santonin Plant, which utilized santonin that grew along Begun and Shayan rivers. Later on, Aralsulphosphate Doing Business in Kazakhstan - 1 Chemical Industry
plant was built in northwestern Kazakhstan, and became a base for the glass industry. Chemical industry is developing in the following directions: · · · · Development of phosphorite reserves and production of phosphorite fertilizers; Utilization of sulphur dioxide of ferrous and non-ferrous metallurgy; Production of petrochemical synthesis products; Development of various salts, etc.
Large reserves of phosphorite ores and existing regional demand for phosphorite fertilizers determined development of phosphorite industry in southern and western Kazakhstan. Chemical plants were built to develop phosphorite reserves in Karatau and Aktobe. Karatau phosphorite field was discovered before the WWII, and Karatau Mining Plant and Taraz Superphosphate Plant were built to develop the field. New fields were discovered later, hence, concentrating mill in Zhanatas, and the second plant “Karatau” were built in the region. Two mining plants: mining union “Karatau” and Zhambyl Superphosphate Plant formed a chemical unit ChemProm. Shymkent-based plant “Fosfor” also utilizes Karatau phosphorites, and is also one of the largest production plants in Central Asia. ChemProm and KazPhosphate NDFZ are the largest phosphate producing plants. In 2000, 15.4 thousand tons of phosphate were produced in the country. 12.4 thousand tons of soap, detergents and detersives were manufactured, mostly in South Kazakhstan. Karaganda region produces serum and hydrochloric acid. “Promplastmassa” plant in Stepnogorsk makes polyvinylchloride pipes. The annual production stands at 2,250 tons of pipes and 1,200 tons of profile systems. Aktau plastic plant operates in the Western Kazakhstan. Technological process allows for the production of ethylene, ethylbenzene, styrene, shockproof crystallized polystyrene, and foaming polystyrene. OJSC Stroyplastmassa is located in Karaganda, Central Kazakhstan. The plant specializes in the production of polyethylene pipes, protective helmets, high-pressure polyethylene tarp, and domestic plastic goods. A company Himvolokno is located in Kostanay, North Kazakhstan. It has the equipment capable of producing the following chemical products: polyamide fiber or phenylone used in the production of filters, work clothes, and paper; phenylone thread; polymer tape cohesive used in aircraft and rocket production, insulating materials and paper manufacturing. The company is currently looking for an investor. Zavod Polypropylene is located in Atyrau, West Kazakhstan. The plant has equipment to produce polypropylene, hey-binding propylene cord, woven polypropylene sacks, and plastic consumer goods. Currently, the management is working on the expansion of the plant’s capacity. SaranResinotechnica is located in the Central Kazakhstan. It is one of the largest rubber plant in the Soviet Union, and produces mechanical rubber goods, including frost and heat resistant conveying belts, extra high tensile belts of rubber mixtures, heat-proof conveyer belts, firm and special rubber-rope hoses, rubberized billows, etc. Pharmaceutical industry, mainly represented by ChemPharm plant, located in the Southern Kazakhstan region, produced medicine for more than 2 bln tenge in 2000. Plant’s product range includes more than 140 different drugs.
Doing Business in Kazakhstan
- 2 -
Chemical Industry
