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Pavlodar exporters are helped to find clients and insure transactions

About a third of the country's manufacturing industry is accounted for by enterprises of Pavlodar region. The region industrial complex is represented in all its diversity but to a greater extent it is focused on metallurgy, metal processing, mechanical engineering, power generation, oil refining products, construction materials and food industry.

 

Many projects have been launched as part of the program of industrial and innovative development, about 70 new types of products have appeared, more than 35% of which are export-oriented. Moreover, countries of Central and Eastern Asia as well as Eastern and Central Europe are interested in these products.

Local businessmen are establishing foreign relations: some are just getting acquainted with this new field, while others have already started plowing, and more experienced ones are already harvesting. However, pandemic has complicated the economic situation, and introduction of restrictive measures has affected business development. Even the leading producers of the region faced difficulties and had to reduce production volumes. Local entrepreneurs discussed all these problems and ways to solve them with representatives of the export insurance company KazakhExport during B2B meetings. 

Thus, the largest enterprise that produces more than 17 thousand items of cable and wire products, JSC "Kazenergokabel", successfully sells it both on the domestic market and abroad, exporting it to the Russian Federation and Uzbekistan. Export credits under these transactions are insured by KazakhExport, total value of transactions from insured export contracts amounted to more than $1.5 million. 

The manufacturer plans to cooperate with a new client from Uzbekistan. Since goods will be delivered with deferred payment, Kazenergokabel intends to insure the transaction. In addition, the management of plant noted their interest in increasing a limit on pre-export financing.

KSP Steel LLP is the first Kazakhstan enterprise for production of seamless steel pipes for the oil and gas industry, founded in early 2007. To promote their products on foreign markets

the plant has been using state support instruments since 2018. During this period, KazakhExport financed transactions for the major exports of seamless steel casing, firing, tubing strings and couplings to the Russian Federation for a total amount of more than KZT 13 billion. Volume of pre-export financing provided for 2018-2020 amounted to KZT 18.9 billion.

Now company notes a decrease in production volumes in the industry. Management of the plant intends to take advantage of the state support through trade financing technique for new contracts. This will enable to make a deal with new clients from Azerbaijan and Tajikistan, with whom negotiations are currently underway on cooperation. 

One of the largest enterprises of domestic railway engineering is Format Mach Company LLP. Company exports its products to Russia. The manufacturer is implementing a project for development of large and medium-sized as well as shaped casting which involves two stages. Today company is the only manufacturer in Kazakhstan of medium – sized car casting - rightholder for these products supply both to domestic market and railway enterprises of the CIS and Baltic countries. All products produced by the plant for the railway are certified, including by the Railway Equipment Registry of Russia. 

At the end of September, KazakhExport approved loan insurance to company through the JSC Development Bank of Kazakhstan in the amount of KZT 1 billion, received with the purpose of replenishing working capital for purchase of raw materials on production of railway cars consumables, with the subsequent export of finished products to the Russian Federation.

Alloyed aluminum from "Giessen Haus" LLP is also successfully sold in Russia, Belarus and Uzbekistan, while "RTF PVL" LLP sells coal coke to Uzbekistan. Representatives of the food industry – "Molkom" LLP and "Rubikom" LLP – sell their dairy and meat products to Russia. It is planned to enter the Chinese markets as well.

There are also a number of promising enterprises in Pavlodar region that are just planning to conquer foreign markets. "Ansa Silicon" LLP intends to produce metallic silicon and microsilica for export to the Russian Federation, the USA and EU countries. "Pavlodar-Soda" LLP plans to supply Russia and China with soda ash as well. "Stalmontazh" LLP, which produces cranes and metal structures, currently has no exports but the company has a potential to enter Russia and the CIS countries.

In general, entrepreneurs of the Pavlodar region are interested in exporting with the state support via insurance of transactions and loans. During the visit to the region, KazakhExport representatives studied problems faced by local producers and outlined measures to support export-oriented businesses.