When exports are like clockwork: oilseed processing plant expands thanks to ECA
It is planned to launch a new refining workshop at Altyn Shyghys in 2025.
The largest oilseed processing enterprise in East Kazakhstan, Altyn Shyghys LLP, has modern equipment and uses innovative technologies. But the key to the success of any enterprise, first of all, is the stable sale of its products. The Export Credit Agency of Kazakhstan JSC (ECA), the National Institute for the Development and Promotion of Non-primary Exports, helps him in this.
Waste-free production
From sunflower seeds to sunflower oil, fuels and even components for dietary supplements, this is exactly what the present and future of Altyn Shyghys LLP looks like. Founded in 2019, the creamery is now firmly on its feet and has more than 400 employees. And together with the contractors involved in maintenance and repair, about 1,500 people are employed.
Production here is practically waste-free. The company was initially designed taking into account promising areas, from the production of bioadditives to biodiesel. Today, it is equipped with the latest automated equipment, which allows it to produce up to 1,400 tons of products per day, and by the end of the year it is planned to increase the capacity to 1,800 tons.
Pavel Pisarenko, Director of Production, says that the technological process at the plant is a permanent conveyor. Sunflower seeds are peeled, dried, passed through the husk and pressed before they receive oil. For example, fuel pellets are produced from the husk, and a by–product of oil extraction production, meal, is also sold.
"Oil production is only one direction in the process. After getting pure fat, you can go further in any direction, for example, to produce dietary supplements, even biodiesel. There are plenty of opportunities, and during the construction of the plant we tried to take all this into account, thinking ahead. Therefore, today we have the most modern equipment, maximum automation of all processes, which allows us not to keep a huge staff," says Pavel Pisarenko.
Protection, guarantees and confidence in the transaction
All the company's products – unrefined sunflower oil, meal and other products – are aimed at export to China, Uzbekistan, Iran and other countries. The management of the creamery notes that it was possible to become a significant player in the foreign market thanks to the support of the Export Credit Agency of Kazakhstan.
It is no secret that one of the main risks for exporters is non-payment for the supplied products or services from foreign partners. ECA's tools help protect Kazakhstani exporters from such risks.
ECA actively supports Kazakhstani manufacturers and service providers in foreign markets by providing insurance financial measures to support exports. It also checks the reliability of a foreign buyer. It has international representative offices in neighboring countries.
"The Export Credit Agency of Kazakhstan is a company that has been with us from the very beginning. It is she who makes it possible to check foreign importers, which helps to reduce risks and losses for Kazakhstani businesses. This is a guarantee of our security, the certainty that everything will be legal and reliable. The support from ECA has played a significant role in ensuring the financial stability of our company. We use such a tool as letter of credit insurance and financing of foreign buyers, which helps us to work with a much wider range of customers, increasing the volume of supplies," says Pavel Pisarenko.
The agency also helps in raising working capital. For example, the creamery was given the opportunity to obtain credit lines on optimal terms, which greatly facilitated the process of modernization and expansion of capacities.
In order to increase exports and enter new markets, the Export Credit Agency of Kazakhstan insures letters of credit and finances a foreign buyer. If there is a shortage of working capital, it helps attract working capital to cover EKA, including loans, advances, and factoring. Due to this, production is being modernized and the company's capacity is being increased, as well as the export potential is being expanded.
A reliable partner in everything
In 2025, the company plans to launch a new refining workshop with a capacity of 500 tons per day, which will allow the production of refined bottled oil for sale on the domestic market and increase exports of highly processed products.
The company actively cooperates with foreign specialists and trains local personnel. The extraction shop is equipped with modern automatic control and safety systems, ensuring high productivity and safe working conditions.
"Thanks to the Export Credit Agency of Kazakhstan, we work only with trusted global suppliers of equipment and implement redundant systems for uninterrupted production. In general, I believe that the risks of Kazakhstani business entering the international arena can be minimized thanks to a wide range of ECA tools and services," says Pavel Pisarenko.
Altyngul Tulegenova, Regional Manager of the Export Credit Agency of Kazakhstan, said that the Agency provided support to Altyn Shyghys LLP in the amount of 33 billion tenge, of which 8 billion were allocated for investment purposes. These funds allowed the company to attract debt financing for the construction of a modern oil extraction plant. The remaining 25 billion tenge was provided to replenish working capital, which contributed to a significant increase in the exporter's production.
The company was provided with insurance coverage to obtain financing for the replenishment of working capital for the implementation of export projects.
"In other words, the Agency provides the bank with protection against the risk of non-fulfillment of exporters' obligations under the loan agreement, which allows exporters to obtain loans if there is a lack of collateral. In this case, the ECA insurance coverage acts as collateral,"
Altyngul Tulegenova says.
She noted that the Agency's main priority is to support enterprises producing high–value-added products. ECA provides assistance to all companies seeking to enter foreign markets. They plan to double the volume of insurance in the coming years – up to 1.2 trillion tenge.
«Clearly, this project in the East Kazakhstan region is evidence of effective interaction between public and private structures, which has a positive impact on the socio-economic development of the region, as well as on improving the business climate and strengthening Kazakhstan's position in the international arena," the ECA concluded.
It should be recalled that ESA recently launched the exporter's personal account, an online platform for domestic exporters to submit digital applications and agree on the terms of the contract. The project was implemented as part of the instruction of the Head of State on large-scale digitalization of public administration. This integrated approach significantly speeds up the processing of applications, increases the efficiency of interaction and minimizes time costs for exporters. All stages are available in the exporter's personal account - online.kazakhexport.kz and on the main page of the Agency's official website – www.kazakhexport .kz
