Kazakhstan to attract $11.4 billion for chemical industry


Meiram Baigarin

Kazakhstan to attract $11.4 billion for chemical industryAccelerated development of chemical industry is one of the goals laid out by President Nursultan Nazarbayev in his address to the nation “New decade – New Economic Growth – New Opportunities of Kazakhstan”. Its implementation is a basic condition for the execution of the Strategic Plan-2020.

“For five years the Government should ensure doubling of production and export of metallurgical products and tripling of chemical production”, the presidential message reads.

Though Kazakhstan has large reserves of raw materials for chemical industry, the potential of its development is not used in full. The chemical industry accounts for 1% of the country’s GDP. The production volumes of the industry tend to increase. In particular, the increase in production of phosphorus, sulfuric acid, chrome tanning agent, sodium triphosphate, carbides, mineral fertilizers, pesticides, paints and varnishes, pharmaceuticals, detergents, cleaning pastes, shampoos has been observed since 2000. The annual average growth rate is about 15 percent. However, in accordance with the President’s instructions, the Government must ensure more rapid development of the industry. The structure of the Kazakhstan’s chemical industry is divided into several main branches: mining-chemical, basic chemistry, processing of polymer compounds, organic chemistry and chemistry of polymeric materials. Besides, Kazakhstan has three oil processing plants, which produce gasoline, diesel, fuel oil and other products. Phosphorus, phosphate fertilizers and sodium dichromate are the most widely produced chemicals in Kazakhstan.

At the Government’s sitting held on August 24 First Vice Minister of Industry and New Technologies Albert Rau presented the program of chemical industry development for 2010-2014.

The further development of the chemical industry requires modernization of the existing enterprises, establishment of new competitive chemical productions on the basis of advanced technologies, provision of a resource base, increase in innovation activity, boost of export potential, provision with qualified specialists.

The program offers three main directions of the chemical industry development: production of inorganic chemistry, production of organic chemistry (petrochemicals), production of special chemicals, household cleaning products.

Mr. Rau named a number of major projects belonging to the first direction. One of them is a chlor-alkali plant with capacity of 92,000 tons per year in Pavlodar. It is planned to be launched this year. A sulfuric acid plant with capacity of 180 thousand tons a year will be put into operation in Stepnogorsk, Akmola region, in 2011.

The basis for the development of the chemical industry in the second direction will be created in five years. The work will be carried out within the framework of the program of oil and gas sector development for 2010-2014.

Thus the implementation of the first and second directions will make possible the developing in the third direction. Production of organic and inorganic chemistry will provide raw materials for enterprises producing special chemicals, household cleaning products. This, in turn, will reduce the share of imports of such products, including: explosives, agricultural chemicals, petroleum chemicals and other products.

To implement all these tasks it is planned to attract USD 11.4 billion of investments to the branch.

The volume of chemical production will be increased from KZT 85.5 billion to 221 billion. The exports will increase 2.5 times. The labor productivity will rise by 35-38 percent in comparison with 2009.