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Kazakh PM Olzhas Bektenov meets Central Asia head of PepsiCo: Kazakhstan localises food industry production

Kazakh PM Olzhas Bektenov meets Central Asia head of PepsiCo: Kazakhstan localises food industry production
Фото: primeminister.kz 14.06.2024 12:15 608

Prime Minister Olzhas Bektenov held a meeting with the President of a large transnational corporation in the food industry PepsiCo in Central Asia, Russia, Belarus, Caucasus David Manzini, El.kz cites primeminister.kz.

The key issue was the implementation of agreements reached between the Head of State Kassym-Jomart Tokayev and the President of PepsiCo Ramon Laguarta. The project of construction of the plant of salty snacks in Almaty region, including such as "Lays" crisps, was discussed. To date, private foreign investment of $160 million has already been allocated for a full-scale new plant for the production of snacks. 

It is important to note that localisation of production and transfer of innovative technologies will allow to move to a new level of deep processing of Kazakhstani agricultural products. 

The project is expected to become the largest in Central Asia. The plant is scheduled to be launched in 2026 and its capacity will be up to 16,000 tonnes of finished products per year, with a further increase to 21,000 tonnes from 2027. Finished products will be supplied to the Central Asian market and beyond. Up to a thousand people will be employed during the construction phase, and the project itself is planned to create about 350 skilled jobs.

David Manzini said that during the project implementation the company intends to buy mainly local raw materials. The work on conclusion of contracts with Kazakhstani farmers on delivery of test batches of potatoes is carried out. In plans to purchase up to 50-66 thousand tonnes of potatoes in 2026-2030 with further increase. Taking into account the manufacturability of the processes, a high level of conversion will be ensured, and the latest advanced methods will make it possible to comply with the principles of environmental sustainability. For example, waste from the new plant will be 100% recycled and utilised.

The company is interested in realising the project as soon as possible. The favourable investment climate created in Kazakhstan allows already now to work out the next stages of the project development, which will be followed by further investments of PepsiCo in the modernisation of the plant to produce a wider range of products. 

Head of the Government Olzhas Bektenov emphasised the importance of the project for the development of agriculture, increasing the income of Kazakhstani farmers and strengthening the economy as a whole, as such large-scale investment initiatives meet the goals set by the President of the country to diversify the economy. Along with the importance of the project for the food industry and agribusiness, the construction of the plant will have a multiplier effect on related industries: transport, logistics, packaging and processing of agricultural products.

"The USA is one of the most important investment partners of Kazakhstan. Kazakhstan is interested in long-term co-operation with such strategic investors as PepsiCo. We are committed to honouring our investment protection obligations and are ready to provide the necessary support," Olzhas Bektenov emphasised. 

The plant is included in the pool of priority investment projects, which are under special control of the Government. In total, according to the results of the first quarter of this year, the pool consists of 704 projects worth 32 trillion tenge with the creation of 122.5 thousand jobs.

Following the results of the meeting, the parties confirmed their intention to expand interaction and build long-term co-operation on the implementation of new projects that contribute to increasing the food potential of Kazakhstan. 

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