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Republic of Kazakhstan “Ontustyk” SEZ. A Competitive Base for Textile Investment. Turkey. Pakistan. India. A strategic location in Central Asia. Stable business conditions. Political and Social Stability Trade partners – 175 countries Forthcoming affiliation in World Trade Organization
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Republic of Kazakhstan“Ontustyk” SEZ A Competitive Base for Textile Investment
Turkey Pakistan India A strategic location in Central Asia
Stable business conditions • Political and Social Stability • Trade partners – 175 countries • Forthcoming affiliation in World Trade Organization • Kazakhstan entered Customs Union with the countries of Eurasian Economic Community (The Republic of Byelorus, Kyrghyz Republic, Russian Federation, Republic of Tadjikistan) • Free trade agreement with EU countries in textile trade • Long-Term State support - Regulatory basis - Safety - Infrastructure (necessary state and other organizations, engineering services) • Developed banking sector - Local Banks have operating agreements with International banks - Accounts in Foreign currency - Local currency fully convertible - Computer banking is available • Global support: EBRD, ADB, World bank, others.
Modern textile mills of Kazakhstan • Joint Stock Company «UTEKS» is a textile factory processing 6 thousand tons of cotton fiber annually .Product range: Combed cotton yarn. • Joint Stock Company «MELANGE» : textile plant producing 5 thousand tons of yarn annually. Product range: Ready cotton fabrics, terry towel materials, home textile. • «Kazakh Russian Textile Alliance» LLP : joint venture with Russian holding processing 7,8 thousand tons of cotton fiber annually. Production capacity is 45 million m2 of fabrics. Product range: Gray cotton yarn and terry towel fabrics. • «Nimex Textile» LLP – textile factory processing 12 thousand tons of cotton annually. Product range: blended cotton yarn and fabrics.
Resource base • Availabilityof local cotton • Proximity to regional cotton producers • Low energy costs • Availability of water supplies • Low labour cost • State Institutes of Higher Education preparing specialists of textile industry
Logistics • South • Kazakhstan • - a strategic location in Central Asia • easy access to regional raw material • availability of auto and train networks • international airports • - reputable national carrier • Established logistics • - Russia, Turkey, ЕU and USA
LogisticsRail ways Delivery term to Baltic ports – 2 weeks Average cost - 65$/ton
Logistics International airways Tashkent – Rome– 6h 50 min (4652km) Almaty – Amsterdam – 7h 25min (5252km) Astana – Istanbul - 6h 10 min (3422km) Almaty – Istanbul – 6h 10min (3924km) Tashkent – Istanbul – 5h 15 min (3364km) Almaty – Beijing – 4h 40min (3272km) Tashkent – Beijing – 5h 25min (3933km)_ Almaty – Seoul – 5h 30min (4208km) Tashkent – Seoul – 6h 25min (4871km) Shymkent – Astana - 2h 40min (1450km) Shymkent – Almaty – 1h 40min (730km) Shymkent – Tashkent – 1h 30min (120km) Astana – Moscow – 3h 35min (2272km) Almaty – Moscow – 4h 35min (3104km) Shymkent – Moscow – 4h (2734km) Astana – Frankfurt – 5h 55min (4298km) Almaty – Frankfurt – 6h 55min (5085km) Tashkent – Frankfurt – 6h 35min (4688km) Airways Highways
Cotton-Textile cluster Made up goods Fabric finishing and dyeing Fabric production Yarn production Cotton- fiber Raw- cotton
Cotton-Textile cluster • The law of RK “On Cotton Industry Development” • Cotton research institute • Highest quality seeds production plant • Cotton quality rating laboratories equipped by the system of HVIsystems • Ginning plants • Transportation-logistic centers, warehouses, terminals for cotton and textile products logistics • Development of new areas under crop for cotton growing • State Institutes of Higher Education preparing specialists of textile industry • “Ontustyk” Special Economic Zone
Special Economic Zone “Ontustyk” • 200 Hectares near Shymkent (South Kazakhstan) reserved for textiles • Advantageous tax laws • Free Customs Zone • Infrastructure, engineering services • State support
“Ontustyk” SEZPreferential conditions for 25 years SEZ territory Republic of Kazakhstan territory Corporate Income Tax 0% 30% VAT 0% 13% Property Tax 0% 1% 0% from18,8 $/hectare Land Tax Customs Duties Exemption up to 25% Administrative support Managerial Board SEZ Tax Authority SEZ Customs Authority Infrastructure Budget Taxation and Customs Support Infrastructure
“Ontustyk” SEZ Additional manufactures
“Ontustyk” SEZ Infrastructure objects • Gas utilities Gas pipe line of high pressure 6-12 кg/cm2, capacity is 10,3 million m3/month • Telecommunication lines Optic fiber telecommunication lines and automatic telephone station for 250 phone numbers
“Ontustyk” SEZ Infrastructure objects • Automobile road and bridge over Badam river Length is 2 km, dual highway
“Ontustyk” SEZ Infrastructure objects • Two railways Two railways with dead-ends tracks from Tekesu station, length is 4 km.
“Ontustyk” SEZ Infrastructure objects • Electric power substation Electric power substation 220/10 Kw with high voltage line 220 kW, capacity is 90 Mwt/hour
“Ontustyk” SEZ Infrastructure objects • Water supply and sewerage system • Two lines of waterways, diameter - 500 mm, water supply capacity is 1,5 mln m3/month, sewerage system capacity is 1,05 mln m3/month.
“Ontustyk” SEZ Infrastructure objects • Inside automobile roads • Inside engineering networks and communications Inside lines of waterways, inside electric power supply is provided by electric power substation 220/10 Kw on the territory of SEZ “Ontustyk”, the length is 5 km), telephony (automatic telephone system for 250 phone numbers, the length is 2 km), gas utilities (diameter of gas pipe is 200 mm, total length is 5 km)
“Ontustyk” SEZ Infrastructure objects • Additional facilities for customs post Automobile customs post, railway customs post, scale platform, customs examination platform, shed
“Ontustyk” SEZ Service Facilities • Business center • Integrated service and technological center • Temporary storages and terminals that supply the logistics of the cargo • Certification centers • Bank departments • Service companies (repair and maintenance of textile • equipment, spare parts delivery, training centers) • Service companies (deliveryof dyes, chemicals, • accessories, etc.) • Energy suppliers • Aid posts • Fire station
Requirements for the investors • Manufacture of cotton productsusing • not less than 30% of local raw material • Vertically organized companies • High quality products • Modern technology • new machinery • machinery with operation life not less than 10 years • Strong Market plan(established market, use of brand) • Investments in technical know-how and constant training of the staff
«Ontustyk»SEZ - prospects • Prolongation of “Ontustyk” SEZ period till 2030 • Extension of “Ontustyk” SEZ area up to 1000 hectares • Inclusion of additional types of activity in SEZ territory
Thank you for attention! Welcome to Special Economic Zone «Ontustyk»! State Authority «Ontustyk» Special Economic Zone Directorate 160802, Republic of Kazakhstan, South Kazakhstan oblast, Sairam region, Lenger highway, 7km. Tel./fax: +7 (7252) 922-002 www.textilezone.kz E-mail: info@textilezone.kz