Prime Minister Olzhas Bektenov and Li Xuechun, Head of Fufeng Group, discuss new project on deep processing of Kazakhstani agricultural products
Prime Minister of Kazakhstan Olzhas Bektenov discussed with the Chairman of the Board of the Chinese company Fufeng Group Li Xuechun cooperation in the field of agro-industrial complex and coal chemistry, El.kz cites primeminister.kz.
Attention is paid to the issues of long-term investment cooperation with emphasis on deep processing.
Fufeng Group Company Limited is a world leader in the bio-fermentation industry, specialising in the production of amino acids and their derivatives, as well as research and development in this field. The company is the largest producer of monosodium glutamate and xanthan gum in the world.
Fufeng Group's proposal to create a vertically integrated industrial park in Kazakhstan for deep processing of corn, including starch sugar and amino acid fermentation plants, as well as a coal-fired thermal power plant and a wastewater treatment plant, was discussed.
Deep processing of wheat and corn allows to obtain products with high added value such as starch, amino acids, monosodium glutamate and xanthan gum, the price of which is 10-15 times higher than the cost of raw materials. The project will create 1,000 jobs and investments will amount to about $300-350 million.
Li Xuechun stressed the company's readiness to participate in the process of growing crops, provide quality fertilisers and share experience in modern agricultural technologies with Kazakh specialists. The investor also expressed interest in co-operation in the coal-chemical sector.
The Head of the Government of Kazakhstan noted the importance of investment in the agro-industrial complex as part of achieving the goal set by the Head of State to ensure economic growth.
"Kazakhstan seeks to increase the production of products with high added value, and the construction of complexes for deep processing of grain is a priority. This is a strategic direction that allows us to diversify the economy and expand export opportunities. We have everything we need for this: infrastructure, raw material resources and government support measures. The project will be a good example of value-added creation in the agro-industrial sector and introduction of advanced technologies. The Government will provide the necessary support,"Olzhas Bektenov said.
The emergence of such a major player in the Kazakh market as Fufeng Group will contribute to the diversification of agricultural crops, especially in the northern grain-growing regions. Planned by the company conclusion offtake contracts with Kazakhstani farmers will provide guarantees for effective co-operation.
Following the results of the meeting Prime Minister instructed the Ministries of Agriculture, Industry and Construction to urgently start preparing an investment agreement with Fufeng Group.
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