KPI Becomes Market Leader in Kazakhstan’s Polypropylene Industry
Kazakhstan reduces import dependence by launching local production, creating jobs for regional specialists
SIBUR is completing the process of acquiring a controlling stake in Polymer Production LLP.
Polymer Production LLP was established in 2012 to implement a project for the production of polymer products in the Atyrau region in 2012. The plant was commissioned in 2015.
In December 2023, a 100% stake in the authorized capital was transferred from the previous owners - the Samruk-Kazyna Ondeu LLP (99.9%) and the management company of the Taraz Chemical Park SEZ (0.1%) to KMG.
KMG and SK Ondeu, commented on the deal as a consistent measure to consolidate petrochemical assets in KMG. This implied the transfer of 100% of the stake in Polymer Production in favor of the national company. At the same time, the main activity is the production of polymer products from polypropylene of KPI LLP. KPI is managed by KMG, so the transfer of Polymer Production in favor of the national company ensures synergy of projects within the framework of petrochemical cluster in the Atyrau region.
According to Polymer Production's financial statements for 2022, as of December 31, 2022, the company had an accumulated loss of 27.59 billion tenge, a capital deficit of 6.02 billion tenge, and liabilities of 12.1 billion tenge (including 9 billion tenge of long-term and 2.05 billion tenge of short-term loans; as of December 31, 2022, the company had 11.05 billion tenge of loans from SK Ondeu). In addition, in 2022, the manufacturer received 1.19 billion tenge in financial assistance (793 million tenge in 2021). It also follows from the document that 3.3 billion tenge were contributed to the company's authorized capital in 2022.