German plastics pipe and profiles extruder Funke Kunststoffe plans to invest €18m in the construction of a PVC profiles production plant in Kazakhstan.
Funke, of Hamm-Uentrop, Germany, recently reached agreement with Kazakhstan’s national export and investment agency Kaznex Invest for the 25,000 tpa capacity unit which will be built in the industrial zone of the Kazakh capital Astana, reported the agency. In a second stage of its Kazakhstan project, the German processor aims later to invest €20m to construct a further plant in the country, this time to produce PVC pipe and moulded fittings. That scheme is due to be completed by 2013, according to Kaznex Invest. Work on construction of the profiles plant, which is 100% funded by Funke, is set to begin on a 10 hectare site by this April. The unit is destined to employ 150 while the project’s second phase should add a further 200 jobs. Sixty per cent of the plant’s production is expected to be exported to Russia, with 30% going to the domestic market and the remaining 10% being sold in Central Asia, the Kazakh agency said. The fact that the Astana project is 100% foreign funded indicates the “high confidence in the investment climate of Kazakhstan and the efficient running of the government”, said Marhabbat Balgabaev, European regional director of Kaznex Invest.