Turkish company to invest $1.3 billion in fertilizer plant in Kazakhstan

A new $1.3 billion fertilizer manufacturing plant will be built in Kazakhstan by ESTA Construction, according to the government’s press service.

After negotiations with ESTA Construction CEO Mustafa Toprak, Prime Minister Olzhas Bektenov instructed the cabinet to sign an investment agreement with the Turkish company within two weeks.

The plant will be built in the Mangystau region, near the port of Kuryk, to streamline the export of fertilizers across the Caspian Sea. The new facility will produce up to 700,000 tons of carbamide and 42,000 tons of ammonia per year. This will reduce Kazakhstan’s dependence on imported fertilizers and provide the country’s farmers with high value-added products.

During the project’s implementation phase, more than 3,000 jobs will be created. Once the facility is fully operational, it will provide permanent employment for 400 people.

Although ESTA Construction is widely considered a Turkish company, operating in nine countries, it is headquartered in Moscow. Among its well-known projects are OKO Tower in Moscow, Krasnodar Stadium, Gagarin International Airport in Saratov and several projects implemented for Uralkali and Rusagro.

Currently, Kazakhstan produces three types of fertilizers: ammonium nitrate, ammophos and ammonium sulfate. However, domestic manufacturers supply only 56% of the demand, producing 1.8 million tons of fertilizers out of the 3.2 million tons needed.

To support farmers, Kazakhstan’s government subsidizes up to 60% of fertilizer costs. In March 2024, authorities introduced an advanced subsidy mechanism, transferring funds to fertilizer manufacturers in advance. This measure is expected to lower product costs. Last year, the country allocated $93.5 million for this purpose. This year, the government has set aside $70.5 million to continue subsidizing fertilizer costs.