A major Kazakhstan wheat processing plant is set to transform the country’s grain industry. An Investment Agreement for the project “Construction of a Grain Deep-Processing Plant in the Akmola Region” was signed in Astana between the Government of the Republic of Kazakhstan and Asia Altyn Dan LLP, with the participation of the Dalian Hesheng Holdings Group Corporation. Furthermore, upon completion of its first phase, the plant will rank among the largest facilities of its kind in Kazakhstan and Central Asia. Moreover, it will boast an annual processing capacity of 1 million tons of wheat. The Press Service of the Ministry of Agriculture of the Republic of Kazakhstan announced this milestone.
Kazakhstan Wheat Processing Plant: First Phase Production Targets
According to the project initiator — Yu Yufei, Deputy Chairman of the Board of Dalian Hesheng Holdings Group — the first phase of the project involves the following planned outputs:
- Up to 500,000 tons of monosodium glutamate (MSG)
- Approximately 300,000 tons of high-value wheat gluten
- Animal feed and related by-products
Furthermore, Asia Altyn Dan LLP will implement the project within the investment zone of the Arshaly District in the Akmola Region. This location makes it strategically well-positioned for raw material access and logistics.
“For our company, Kazakhstan is a strategic partner possessing high agricultural potential and a favorable investment climate. We are confident that the realization of this project will serve as an example of successful international industrial cooperation, ensure the production of competitive, world-class goods, and open up new opportunities for accessing global markets,” the investor noted.
Advanced Bio-Fermentation Technology Behind the Project
The Ministry of Agriculture noted that the project holds strategic significance. This is because of the collaboration with Dalian Hesheng Holdings Group — a company possessing unique bio-fermentation technology. Specifically, this technology can process up to 100% of the starch contained in grain. Traditional approaches, in contrast, utilize no more than 50% of the starch. Therefore, this method ensures maximum efficiency in raw material processing.
Moreover, the company brings over 40 years of experience in the deep processing of wheat and corn. Consequently, this expertise will contribute to enhancing the competitiveness of Kazakhstani products on global markets.
Mutual Obligations: Investor Commitments and Social Infrastructure
The Agreement outlines mutual obligations for both parties. Specifically, the investor commits to the following responsibilities:
- Establishing a continuous training system for Kazakhstani specialists
- Ensuring that at least 40 local employees undergo annual professional development and advanced training
- Supporting social infrastructure, including the construction of a sports complex
- Participating in education, culture, grassroots sports, and youth policy projects
In return, the Government of the Republic of Kazakhstan will provide the necessary support for the project. This includes granting tax and customs preferences, as well as other state support measures in line with established legislative procedures.
Kazakhstan’s Strategic Goal: 70% Processing Share and Global Top 10
“The Head of State has set the objective of increasing the share of agricultural product processing to 70%, as well as breaking into the top ten leading nations globally in terms of the production and export of deep-processed grain products within the next 10 years. We are consistently transitioning from a raw-material-based model to an economy characterized by deep processing and high added value. Currently, three deep-grain processing facilities are operational in Kazakhstan, boasting a combined capacity of 510,000 tons and producing starch, gluten, molasses, bioethanol, and other products. The implementation of this project will not only enable the processing of significant volumes of wheat but also facilitate the creation of new export niches and the introduction of advanced technologies,” stated Aidarbek Saparov, Minister of Agriculture of the Republic of Kazakhstan.
According to the Ministry of Agriculture, six major projects are currently underway in Kazakhstan. Together, they aim to increase the share of agricultural product processing and promote deep-processed grain products on global markets. Furthermore, these six projects have a combined capacity of 5.8 million tons and a total value of 4.0 billion US dollars.
Source: Zerno On-Line (Russia)
