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Chemical industry – is capital-intensive industry, requiring "long" money

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Actual questions of development of the chemical industry were discussed at the meeting of the subcommittee of the manufacturing industry of NCE RK "Atameken"

The agenda included three issues: a report on the implementation of the Plan of activities of the Subcommittee for 2016; preparation of roadmaps of the industry development and the creation of regional clusters; problematic issues of the industry.

The report on the first question was submitted by the Executive Director of the Association of Legal Entities "Kazakhstani Union of Chemical Industry" Srym Zholaev. According to the Statistics Committee of MNE, on the 1st of September of the current year in the country were registered more than 500 enterprises of the chemical industry, including the operating ones - more than 300, actively operating ones - 277.

The speaker drew attention to the problems of consolidation of enterprises of chemical industry and the lack of objective information on topical issues arising in the normal course of enterprises’ operation.

Deputy Director of the Industrial and Investment Policy Department of NCE Murat Davletov presented the current situation on the process of development of the Roadmap of the industrial development and regional clusters. NCE proposed to include the relevant paragraphs in the Action Plan of the second five year plan of SFIID.

Roadmaps of chemical industry development must be presented in the first quarter of 2017. On the issue of funding of the project, according to Davletov, no understanding with state authorities has been yet reached.

Deputy general director of LLP "KazAzot" (Aktau) Takhmina Nagumanova, commenting on the issue, stressed the need to clarify the size of the budget priority sectors within the framework of these programs, because the chemical industry is a capital intensive industry, requiring "long" money.

With regard to regional clusters, then, according to Murat Davletov, their introduction and development in the years 2018-2019 was included in the preliminary budget in the amount of 1 billion 800 million tenge. It is expected to create 6 pilot clusters. the The draft rules for selection of regional industrial clusters, designed by the Kazakhstani Institute, greatly simplifies the procedure of selection of enterprises, however, raises questions of procedure transparency.

During the discussion of problematic issues of the industry, the president of the Association of Kazakhstani producers of remedies Boris Tsoktoev stated the need to return the priority pesticide subsidies for domestic agricultural producers.

Starting from this year, the Ministry of Agriculture of RK subsidizes the purchase of Kazakhstani and imported herbicides at the same rate - in the amount of 50% of the cost. Boris Tsoktoev emphasized the illogic of such a policy: Kazakhstan production is cheaper, the quality is satisfactory, market coverage and capacities of domestic production of herbicides covers the country's needs.

In turn, the representative of the company "KazAzot" Takhmina Nagumanova reported that the participants of this niche market so far managed to defend its position. Today, subsidies are made on the basis of the principle 50 to 30.

Support Program, stressed Nagumanova, ensures a cumulative effect, when a parallel industry also receives a guaranteed volume of orders. And the appeal of the Ministry of Agriculture and Ministry of National Economy on need to comply with WTO rules, the deputy director of LLP "KazAzot" considers unfounded - no country is subsidizing foreign production of the pesticide, as Kazakhstan does it.

Other matters of import substitution remain problematic, some of which can be removed with the introduction of non-governmental standards, which do not contradict to WTO and the EAEU rules and presents a clear tool to support domestic producers, as stated by the general director of the institution "Industry Standards Institute" Erkin Duyseev.

LLP "Kazphosphate" focused on the conservation of electricity prices in 2017 at the level of 2016 - 6.40 KZT / kWh; high rates of mineral extraction tax and the revision of the method of calculation of MET. The company also asked to assist in resolving the issue of providing irrigation water for farmlands of SKR RK 2016-2017 growing seasons in years and the schemes of external commodity exchange of electricity between the Kyrgyz Republic and the operators - consumers of exchange electricity in Kazakhstan.

JSC "Aktobe plant of chromium compounds" concerned about the unusual rise in prices for chrome ore by more than 80%, which can cause a sharp decline in production volumes, and in the negative scenario - stop production of chromium salts.

JSC "Orica Kazakhstan" (Ust-Kamenogorsk), JSC "Caustic" (Pavlodar), "Astana Nan" also voiced sharp questions in their areas.

Managing Director - Director of the Department of manufacturing industry of NCE Nurlan Sakuov noted that the dialogue platform of the Subcommittee of chemical industry allows to discuss openly the status quo of the industry.

Following the meeting, the chairman of the Committee of manufacturing industry of NCE Duman Kydyrbaev stressed the need for more detailed study of problematic issues for a more effective resolution of them.

 


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