Turkey to invest $550 million in sugar production in Kazakhstan

The Turkish company Omtis Ortadoğu Makina is going to build a new sugar plant in the Aktobe region, Kazakhstan. The project costs about $550 million, according to the regional administration’s press service.

The memorandum on cooperation was signed by Eraly Tugzhanov, the governor of the Aktobe region and Ibrahim Gultekin, founder of Omtis Ortadoğu Makina, a company well-known for its expertise in sophisticated engineering projects.

«The company is ready to invest $550 million in the plant with a capacity of 330,000 tons of sugar per year. It is expected that 180 jobs will be created,» said the regional administration.

New sugar production capabilities in West Kazakhstan are part of a broader strategy initiated by President Kassym-Jomart Tokayev that aims to provide the country with domestic sugar. In October Tokayev said that the share of domestic sugar in the market will be increased from 7% to 43% by 2026.

The regional authorities are highly interested in the construction of this new sugar plant because Kazakhstan and the Aktobe region in particular are dependent on sugar imports.

In turn, Serik Zhumangarin, minister of trade and integration believes that Kazakhstan should produce about 400-500 thousand tons of sugar a year to cover all its needs. To achieve this goal, the country has to develop its current sugar plants and build new ones.

Omtis Ortadoğu Makina was established in 1996 as a sub-contractor for the construction of industrial facilities in Bursa. In 2000, the company moved to Ankara. Since 2013 it has been engaged in the construction of petrochemical and chemical plants, power plants, industrial pipelines, asphalt and concrete plants and others.