NCE RK "Atameken" states: if the state does not support the industry, it will disappear

The deputy head of the Secretariat of the Committee of the manufacturing industry of the National Chamber of Entrepreneurs of Kazakhstan "Atameken" Batyrbek Aubakirov told about the problems of the packaging industry.

"The packaging industry is closely connected with the food industry. However, in Kazakhstan there are no target programs to support the packaging industry. Each industry has a certain profile ministry, while there is no for the packaging industry. Packing is used in the food industry, in the construction, in the chemical, and light industries. However, there is no single body that would support the whole packaging industry in Kazakhstan. No one specifically does it", - he said.

According Aubakirov, "Atameken" discussed the matter with the Ministry of Agriculture and the Ministry of Investment and Development, however, none of the authorities take responsibility for the packaging industry. "It is logical that, in the first place, it should be the Ministry of Agriculture, as 70% of the total package – is food packaging. By giving grants and subsidies to producers of agricultural products, the Ministry should also support companies that produce packaging for these products. The problem is that we have comprehensive support. If some problem comes to NCE, we resolve it, but the general problems is unresolved ", - he added.

The expert said that there are 4 factories operating in Kazakhstan, which produce the glass containers - a company "SAF", LLP "EvroKristall", LLP "Dostyk" and LLP "Aynek". After the devaluation of the Russian ruble in 2014 "Dostyk" and "Aynek" stopped their production. "Glass Company "SAF" experiences huge problems today, because Russian producers got hold of the most part of the Kazakhstani market. The company "EvroKristall", which was launched in Shymkent in late 2014 also experiences serious pressure from the Russian manufacturers who use dumping in pricing. However, it works on the territory of the special economic zone, so it has advantages due to government support measures", - he said.

Aubakirov said that a common problem throughout the packaging industry - is the lack of raw materials. The second is the lack of staff. mainly foreigners work in our major companies.

The representative of the Committee said that now all of the business community is waiting for the launch of the first integrated gas chemical complex in Atyrau, which will provide raw materials for manufacturers of plastic packaging.

"Before the creation of the Customs Union, our manufacturers of plastic packaging used to buy raw materials at the cheapest prices from different sources (South Korea, the UAE, Saudi Arabia). After creation of CU, the Russian side lobbied the elevation of the rate of customs duty on the import of polymer raw materials into the territory of the EAEU. Thus, our consumers of polymeric raw material are artificially forced to buy raw materials from Russian producers", - he said.

At the same time, according to Aubakirov, Russian factories do not have time to close their own needs, so they sell to Kazakhstan leftovers. Plus - the price of raw materials for Kazakhstan is higher than for their own consumers.

"In this regard, we are working on the possibility of formation one big order for Kazakhstan in order to simplify the purchase of raw materials and its availability for Kazakhstani processors", - he said.

The representative of "Atameken" concluded that Kazakhstan should work out concrete measures of state support for the packaging industry.

"In a week we will hold a meeting of the subcommittee for the packaging industry, where we will meet with large consumers of glass containers. We intend to work with them on the overall concept of support. For example, the state helps to enterprises producing alcoholic beverages. If you get help, you should help someone whose products you buy. Maybe we'll do as follows: we will concentrate our efforts on supporting producers of alcoholic beverages, who, in turn, will pull up domestic producers of glassware", - he said.

The expert also noted that another important question that requires an immediate solution - a pulp and paper industry, which also does not have enough raw materials. There are two issues: production of office paper and corrugated paper.

"As for office paper, the company “ Kagaz Shahary” plans to launch a plant for the production of paper from the technical hemp with the support of NCE RK "Atameken". is It is planned to plant about 50 hectares of land with the industrial hemp in the South Kazakhstan region. Seeds have been already imported", - he said.

There are no raw materials for the production of corrugated paper in Kazakhstan, according to Aubakirov, because the Russian recyclers get hold of it. Ukraine and other countries buy most of the waste paper from Russian. "In this regard, member-states of CU plan to introduce a ban on the export of scrap paper in third countries, which are not members of EAEU", - he said.