1. Construction of plant for production of farm machinery and aggregates
Astana, 2017

2. Project idea
The productive capacity of the enterprise is estimated at the level of 500 tractors and aggregates per year at the initial stage and up to 3,000 units when reaching the maximum project capacity.
Construction of premises of the tractor plant with the installation of necessary equipment for «Complete Knock Down» assembly in order to organize the production of agricultural machinery and aggregates in the Akmola region, near Astana.
Equipment and component supplier – polish company «FARMER».

3. Background of the project creation
Kazakhstan annually sows about 16 million hectares of planted area. More than tractors, 90,000 of seeders, 340,000 units of groundcare machines and 44,000 harvester-threshers are annually participating in the field and agricultural work.
Equipping of the agricultural production in the Republic of Kazakhstan with machinery is characterized by negative dynamics. About 93% of the park are tractors with a useful life of more than 10 years.
The share of imports of foreign agricultural machinery is 90%, 10% is covered by the production of Kazakhstan machinery.
The Republic of Kazakhstan needs more than 5 thousand items of wheeled-cultivating tractors per year.

4. Project advantages Strategic goals
Reliable partner – polish company «FARMER», which has more than 120-year history;
Qualified personnel;
High quality of products;
Wide assortment;
High demand for production.
In terms of the second stage of the project implementation, it’s planned to open a service center for machinery maintenance.
It’s planned to open such centers in the all regions of Kazakhstan.

5. Production Front loader and manipulators Tractors
Herbage processing line
Fertilization machinery
Tractor trailer
Municipal machinery

6. Production Technological line for briquetting straw - LTBS
Machinery for chemical treatment of plants

7. Project implementation schedule
Arrangements/Month
2017
2018
II qua.
III qua.
IV qua.
I qua.
Business-plan elaboration
Solving the problem of financing
Acquisition of land
Construction designing
Construction of processing department
Advance payment for equipment, delivery, installation
Territory fencing and accomplishment
Purchase of components
Recruitment of staff
Start of production
The start of production is planned for the second quarter of 2018.

8. Market review
Total sown area of agricultural crops in the RK, thousand hectares, excluding fallows
Area of agricultural land in Kazakhstan, million hectares
Source:/Agency for Statistics of the Republic of Kazakhstan

9. Market review
Structure of tractor parks in the Republic of Kazakhstan based on service life,%
Number of manufactured tractors, units
Source:/Agency for Statistics of the Republic of Kazakhstan

10. Imports review The share of Russia, Belarus and China in imports of
Tractor imports dynamics to Kazakhstan, un.
Attached equipment imports dynamics to Kazakhstan, un.
The share of Russia, Belarus and China in imports of
agricultural machinery in the Republic of Kazakhstan is 64%.

11. Project management structure
Project partner – polish company «FARMER»:
- Equipment supply;
- Component supply.
Financing organization:
- Polish people’s bank;
- Lending.
Project initiator - ТОО «EQS. European Quality Service KZ»:
- Marketing;
- Organization of plant construction;
- Organization of the production process;
- Production control;
- Logistics.
Product consumers:
- Agricultural enterprises ;
- Peasant agriculture;
- Utility organizations;
- Construction firms.

12. Project cost Total cost of project - 140 mln. USD.
Necessary funds
Sum
Share
mln. $
Capital investment 98
70%
Incl. Land parcel 3 2%
Processing department 15
11%
Equipment, Repair centers in 16 regions 70
50%
Other (accomplishment, fencing) 10 7%
Working capital 42
30%
Incl. Work stock, material (components + delivery) 32
Leasing company
Total
140
100%
Total cost of project mln. USD.
Project financing is planned to be carried out at the expense of own funds and borrowed capital.
Loan profile
Un. of. measure.
Value
Interest rate % 5%
Loan period
years
10,0
Grace period for payment of interests
mon. 12
Grace period for payment of principal debt

13. Socio-economic importance of the project
From the economic point of view the project will contribute to the :
organization of new tractor production in the Akmola region;
further development and strengthening of domestic industrial production;
import substitution;
increase in the gross regional product of the Akmola region;
receipt of taxes and other deductions into the Akmola region budget.
Among social impacts it’s necessary to mark :
satisfaction of organizations' demand for quality products (tractors, attached equipment, front loaders, etc.);
creation of 58 new workplaces, that will allow employees to receive a stable income.

14. Thanks for your attention!