Investment Projects - Sandwich Panel Manufacturing

Construction of a sandwich panel manufacturing facility in Astana with export potential.

(NACE: 24.33 Cold forming or folding).

GLOBAL MARKET

Demand for sandwich panels is growing every year. Recently, the popularity of these building materials has increased significantly. Sandwich panels with aluminum cladding showed a growth of 13.4%, while polystyrene-based sandwich panels increased by 15.8%.

REGIONAL MARKET

In the market of the Republic of Kazakhstan, there is a stable growth in the import of sandwich panels. The total supply volume across the country is increasing: aluminum-clad sandwich panels grew by 4.34 times, and polystyrene-based sandwich panels increased by 54.2%. Exports also show growth, confirming high demand for this building material.

MANUFACTURERS

There are 17 companies producing sandwich panels in Kazakhstan, of which 5 are located in Astana, including:

• LLP “Shymkent QZPanel”

• LLP “Astana QZPanel” (Astana)

• LLP “Karaganda Sandwich-Panel”

• LLP “ECO Panel-2050”

• LLP “Kazakhstan Plant of Enclosing Structures”

• LLP “Paneltech”

• LLP “YDA Panelsan”

• LLP “Profland-RT”

• LLP “KazTeplant”

• LLP “Metal Profile”

• SPP Plant (Astana) – one of the market leaders, producing up to 30,000 m² of panels per month

• LLP “PolymerMetall-T” – manufacturer of sandwich panels, metal tiles and corrugated sheets

• LLP “Tekhol” – more than 30 years on the market, producing up to 500,000 m² of panels per year

• LLP “Smart Group” (Astana) – producing up to 2,000,000 m² of panels per year

• “TRITON Roofing” – production in Karaganda, sales in Karaganda and Astana

• BMG Holding – leading panel manufacturer in Almaty, specializing in PIR-panels

• LLP “STYNERGY” – producing Z-LOCK panels based on basalt and polystyrene.

RAW MATERIAL BASE

• Aluminum – JSC “Aluminum of Kazakhstan” (Pavlodar), alumina production – 1.4 million tons/year. Kazakhstan Electrolysis Plant produces primary aluminum.

• Galvanized steel – JSC “Qarmet” (Temirtau), capacity of 4 million tons/year. Steel coil production – LLP “Steel Production” (Kostanay), LLP “KMK Investment” (Karaganda).

• Polystyrene – LLP “POLIKHIM-Kazakhstan” (Almaty), producing EPS, XPS.

• Mineral wool – “TechnoNIKOL” (Karaganda), LLP “Termolife” (Shymkent).

• Polyurethane foam (PUF) – no large specialized producers in Kazakhstan, possible import.

• Adhesives – limited domestic production, main components (polyurethane, epoxy, acrylic) are imported.

• Paints and coatings – partially produced in Kazakhstan (LLP “Kazakhstan Paint Company”, LLP “Alina Paint”), but specialized coatings (PVDF, polyester) are mostly imported.

POTENTIAL SALES MARKETS

In 2023, the total import volume of aluminum-clad sandwich panels amounted to about USD 1.3 billion, and polystyrene-based sandwich panels – about USD 760 million from neighboring and nearby countries.

The combined import volume of aluminum-clad and polystyrene-based sandwich panels in 2023 amounted to about USD 2 billion.

COMPETITIVE ADVANTAGES

• Opportunities for import substitution and export development.

• Government support measures for investors and businesses.

• Availability of raw materials.

• Advantageous strategic location.

GOVERNMENT SUPPORT MEASURES

Investment Preferences

• Exemption from customs duties (0% up to 5 years on imports);

• Tax benefits (VAT, CIT, land tax, property tax – 0%);

• In-kind grants (land plots, buildings and structures, etc.);

• Attraction of foreign labor (FLS).

Support through JSC “Kazakhstan Industry and Export Center QazIndustry”

Partial reimbursement of costs to industrial and innovative activity entities:

• improving labor productivity and developing territorial clusters;

• promoting domestic processed goods in foreign markets;

• promoting domestic processed goods, works and services in the domestic market.

Economy of Simple Things

• Subsidies (NB RK base rate + 4.5%, final borrower’s rate 7%) with no limit on the amount;

• Guarantees (up to 50% for loans up to 1 billion KZT, and up to 30% for loans over 3 up to 5 billion KZT).

Support for SMEs (www.damu.kz)

• Maximum loan amount: up to 3 billion KZT

• Subsidy rate: final borrower’s rate 8%–10%

• Purpose: investments, working capital replenishment, refinancing.

Support for SMEs and Large Businesses (www.damu.kz)

• Maximum loan amount: up to 15 billion KZT

• Subsidy rate: final borrower’s rate 8%–10%

• Purpose: investments.