Agricultural hub for grain processing to be established in Kostanay

KOSTANAY. KAZINFORM - The construction of an agricultural hub for the deep processing of cereals and oilseeds will be launched in Kostanay region in 2019. Within the framework of the memorandum with Shanxi, all products will be exported to China within 10 years, Director of Bio Grain LLP Dina Utebayeva told the regional administration, Kazinform correspondent reports.

The agricultural hub is a joint project of the Kazakh company BioGrain and China's Marine Bunker. The total cost of the project is $300 million. BioGrain and Shanxi have already signed a memorandum (off-take contract) for the exports to China.

"We will purchase materials from local farms: 600,000 tons of 3rd-grade grain, 120,000 tons of oilseeds, 750,000 tons of 4th and 5th-grade grain," said Dina Utebayeva. "The project covers the construction of an elevator storing up to 600,000 tons of grain and a flour-milling facility having a capacity of 600,000 tons. (...) All finished products will be exported to China.".

According to Ms. Utebayeva, the new enterprise plans to employ 500 people, including 20 Chinese process engineers, 380 local people, and send 100 people to study in China. The plant is expected to be built within 2.5 years.

The head of the enterprise said they intend to start construction in April-March 2019. It also depends on the time needed for the issuance of permits by the local executive agencies. The company has already resolved the financial issue.