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094% of DBK financing has been disbursed within expansion of railway wheels production capacities in Pavlodar region



   

PRESS RELEASE

21 July 2016                                        Astana

94% of DBK financing has been disbursed within expansion of railway wheels production capacities in Pavlodar region

Within the project of railway wheels production capacities expansion (hereinafter – the Project) powered by Prommashkomplect LLP (PMK, Ekibastuz) as at 7 July 94% of financing provided by Development Bank of Kazakhstan JSC (hereinafter – the Bank, DBK), a subsidiary of Baiterek Holding. In June of c. y. the Bank made a decision to increase the limit for financing the project from 30 billion to 36 billion KZT, the loan period is up to 19 years. Financing of the project by DBK has been started in July 2015.

The project is planned to be completed in the latter half of missioning of the new production engineered by Relart SA company that will increase a capacity of PMK from 75 000 to 200 000 units per annum, create more than 400 jobs, bring the production localization level from 15% to 50%.

“Long-term credit facilities provided by the Bank within the PMK project were used to procure equipment, construction and installation activities and precommissioning works. The project is implemented in accordance with the approved schedule”, – said Deputy Chairman of the Board of DBK Abai Sarkulov.

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Currently at the construction site of the railway wheels production complex assembling works on re-gasification station installation has been started, shipment of crane equipment, machine tools and accessories for the roll shop, compressor units is carried out. In total about 4000 tons of high-tech equipment from Austria, Germany, the Czech Republic and Poland will be delivered to PMK by the end of 2016. Installation of automated production lines will reduce production costs in average by 10%, thus quality and geometrical parameters of produced wheels will be significantly improved.

Once the enterprise reaches a full production capacity, up to 40% of the manufactured products will be supplied to domestic market, mainly for the needs of Kazakhstan Temir Zholy JSC, the remaining 60% will be exported to Iran, Azerbaijan, Russia and Turkmenistan. PMK products are designed for high-speed rolling stock, passenger and freight transportation, locomotive fleet.

The PMK project is being implemented within the State Program of Industrial-Innovative Development of the Republic of Kazakhstan for 2015-2019 (SPIIR-2). To finance GPIIR-2 projects the Bank has been allocated 75 billion KZT from the National Fund. As of 7 July this year the first tranche has been fully disbursed, in total as of the specified date BRK financed seven projects at the amount of 153.95 bln KZT, including the National Fund and own funds of DBK: introduction of LTE/GSM/UMTS networks across the territory of the Republic of Kazakhstan (Altel JSC), creating a railway wheels production complex in Pavlodar region (Prommashkomplekt), construction of Rail and Beam plant in Aktobe (Aktobe Rail and Beam Plant LLP), gasification of five inhabited locations in Kyzylorda region (KazTransGas Aimak JSC), modernization of the mineral fertilizers manufacture plant in Mangistau region (KazAzot LLP), production of K5 eco-class motor fuels (Condensate JSC), construction of a sodium cyanide production plant with a capacity of 15000 tons in Karatau (Talas Investment Company LLP).

АО «Банк Развития Казахстана» (БРК) - национальный институт развития по модернизации и развитию несырьевого и инфраструктурного секторов экономики Казахстана, созданный в 2001 году. БРК входит в структуру АО «Национальный управляющий холдинг «Байтерек». Основные направления деятельности: развитие производственной инфраструктуры и обрабатывающей промышленности, содействие и привлечение внешних и внутренних инвестиций в экономику страны. БРК выступает одним из крупнейших инвестиционных операторов государственных программ индустриально-инновационного развития.