Vegetable Oil Company Managed to Develop Extra Manufacture. How?
Shymkentmay JSC is known as one of the largest enterprises in the oil and fat industry of Kazakhstan. The plant has produced tons of liters of vegetable oil for nearly 80 years of its operations, gradually expanding its range and adding to cotton oil, its first product, other types of oil-bearing crops – sunflower, soya bean, safflower and colza. Shymkentmay has found its loyal consumer on this market long ago.
Meanwhile, several years ago, having switched to a method of non-waste production, the plant has arranged output of laundry soap using oleochemicals, more precisely distilled fatty acids (DFAs) resulting from wastes of physical oil refining. This step has allowed make the enterprise more environmentally friendly almost minimizing its production wastes.
Shymkentmay has extensive development plans in this direction and it was necessary to replace equipment so that the facility would cope with tasks assigned for the future.
Sberbank Kazakhstan, a long-time business partner of the plant, helps it with upgrade. Within the joint project, in the near future it is planned to upgrade a DFA unit where the bank contributes up to 90% of the project cost valued at almost USD 1 million. The project is carried out within interbank lending program.
Not oil alone…
Shymkentmay has extensive production experience in soap making, it learns and introduces new formulations. The company is proud that they produce an environmentally safe product using only vegetable and natural raw materials. Absence of artificial bleaching agents and synthetic fragrances make its soap a hypoallergic product which provides for its safe use in households and in cosmetology.
Inspired by success which the product has among the population, the company has decided to expand this range and soon additionally to laundry soap it launched production of soap containing coconut oil. Today, Shymkentmay JSC produces Khozyayika (Housewife) branded soap with 65% and 72% fat content and also FRESHKO 72% coconut oil laundry soap which is hardly distinguished from cosmetic soap. Aesthetic appearance, pleasant fragrance and simultaneously high disinfecting properties have right away made that product a favorite. However, perfection has no limit. The plant has decided to upgrade its production line.
New technologies will allow obtain an intermediary product with improved quality characteristics which correspondingly will improve quality of the end product and will also boost capacity, cut consumption of energy resources and processing losses in the course of DFA processing. The company has already received relevant financing from Sberbank.
The company has no doubts that the newly launched project will be a success since almost a decade of cooperation with the bank has proved its solvency.
Selection based on reliability
- As early as in 2012 our company has picked Sberbank as a partner since it has extensive relations with major banks of the world and also has accumulated vast experience of work with clients and partners engaged in different sectors of economy which allows the bank to cover all our inquiries very fast, says Daniyar Adirbekov, Director of Shymkentmay JSC
He maintains that successful project implementation depends not only on efforts of the team but also on efficiency and teamwork in cooperation of all the partners: suppliers of raw materials, producers of equipment, project and construction and assembly companies and of course financial establishments.
For Shymkentmay JSC sustainable position on the market of oil and fat industry and also upgrade and expansion of its fixed assets are paramount questions, therefore we have opted for Sberbank as our financial partner in projects as it has sound positions on the market of the country. High reliability and financial stability of SB Sberbank Kazakhstan JSC guarantees our success in implementation of the assigned tasks. Sberbank always helps us choose cooperation alternatives which are the most suitable and advantageous for us even if for the bank itself such alternatives are more difficult for implementation, adds head of the vegetable oil plant.
At the start of cooperation, annual turnover of the company was below 10 billion KZT. Due to a credit facility opened by the bank to replenish its floating assets the company has managed to double its revenues for 8 years. Along with that, the financial institute provides the company with a necessary limit for replenishment of floating assets which has doubled for that period.
In 2012, Sberbank supported the vegetable oil plant in a large-scale project, first of such scope for the company, when it financed together with DBK JSC construction of a new shop of continuous refining that was launched in early 2016. That project has eliminated disproportion in technologic chains of the plant and evened out productivity of workshops throughout the vegetable oil production, significantly improved competitive strengths of oils as compared to similar products from major foreign and several local producers.
Later, another successful project was implemented for procurement and startup of a gas piston station. Today, Shymkentmay has set to a next investment stage with support of Sberbank. Longstanding spotless positive credit history, absence of tax debts and serious and thoroughgoing attitude towards discharge of its obligations feature the plant as a reliable business partner.
Export vector
Quality of Shymkentmay products was highly evaluated by both domestic and foreign consumers. Today, the company gets nearly 70.5% of its revenues from exports, which is 6% more in a previous period.
Lending has also allowed the company expand its sales geography and boost its export volumes. In this direction, the plant gets pro-active assistance from Sberbank to receive support within the program of pre-export financing in joint projects with DBK and export insurance agency KazakhExport JSC sharing all the risks of the intricate oil and fat industry.
Since Shymkentmay is one of the largest producers of products from oil bearing crops in Kazakhstan, lending for pre-export operations of the enterprise on the whole boosts export potential of the agricultural sector of Kazakhstan.
Today the company concentrates sales of its products mainly in southern region: cities of Shymkent, Turkestan, Taraz, Almaty, Saryagash town and also Turkestan Region and Almaty Region. List of countries importing products of the Kazakhstan’s producer includes Russia, Uzbekistan, Tajikistan, China, Iran, Afghanistan, Kyrgyzstan and Turkey.
Last year, the company produced 32,000 tons of vegetable oils, 6,800 tons of laundry soap, 94,000 tons of fodder.
The plant has set extensive plans for advanced processing of vegetable oils with further support from Sberbank.
Source: https://www.zakon.kz/5059870-kak-maslopererabatyvayushchemu.html
