The Prime Minister of Kazakhstan, Olzhas Bektenov, discussed cooperation in the agro-industrial complex and coal chemistry with the chairman of the board of the Chinese company Fufeng Group, Li Xuechun. The conversation focused on issues of long-term investment collaboration, emphasizing deep processing, as reported by Kazpravda.kz citing the press service of the government of Kazakhstan.
Fufeng Group Company Limited is a global leader in the bio-fermentation industry, specializing in the production of amino acids and their derivatives, as well as in research and development in this field. The company is the largest producer of monosodium glutamate and xanthan gum in the world.
The proposal from Fufeng Group to establish a vertically integrated industrial park in Kazakhstan for deep processing of corn was discussed. This park would include factories for producing starch sugar and fermenting amino acids, as well as a coal-fired power plant and a wastewater treatment facility.
Deep processing of wheat and corn allows for the production of high value-added products such as starch, amino acids, monosodium glutamate, and xanthan gum, the prices of which exceed the cost of raw materials by 10-15 times. The project is expected to create 1,000 jobs, with an investment volume of approximately $300-350 million.
Li Xuechun emphasized the company's readiness to participate in the cultivation of agricultural crops, provide quality fertilizers, and share expertise in modern agritech with Kazakh specialists. The investor also expressed interest in collaborating in the coal chemistry sector.
The head of the government of Kazakhstan highlighted the importance of investments in the agro-industrial complex in achieving the goals set by the head of state for economic growth.
“Kazakhstan aims to increase the production of high value-added products, and the construction of deep processing complexes for grain is a priority. This strategic direction allows for the diversification of the economy and the expansion of export opportunities. We have everything necessary for this: infrastructure, raw material resources, and support measures from the government. The project will serve as a good example of creating added value in the agro-industrial sector and implementing advanced technologies. The government will provide the necessary support,” noted Olzhas Bektenov.
The emergence of a major player in the Kazakh market, such as Fufeng Group, will contribute to the diversification of agricultural crops, especially in the northern grain-producing regions. The company’s planned conclusion of off-take contracts with Kazakh farmers will ensure guarantees for effective collaboration.
Following the meeting, the Prime Minister instructed the ministries of agriculture, industry, and construction to urgently begin preparing an investment agreement with Fufeng Group.
