Manufacturers discuss perspectives of pulp and paper industry in Kazakhstan

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Trends and problems in the development of the pulp and paper industry were discussed by manufacturers during the First Forum “Development of the Pulp and Paper Industry and Packaging Industry in the Republic of Kazakhstan”.

About 300 enterprises operate in the production of paper and paper products, and the economy of the industry is growing from year to year. In 2018 production increased by 5% compared with 2017 and amounted to more than 52 billion tenge. For four months of 2019, the volume of production amounted to 21 billion tenge, which shows a positive trend of 106%.

“Today, the pulp and paper industry is one of the leading branches of the forest complex, which unites technological processes for the production of pulp, paper, cardboard and paper products. However, the economic potential of the country's forest sector remains untapped. The decisive position in the development of the forest sector of the economy belongs to the pulp and paper industry. Only mills of the pulp and paper industry involve the entire biomass of wood into production and manufacture products with high added value,” Zhanseit Tuymebayev said.

Remind that at the beginning of the year Kazakhstan has imposed a ban on the export of recycled paper, cardboard, waste paper for two years. According to entrepreneurs, this amendment has increased the workload of enterprises.

“Thanks to the ban, our company was not only able to secure its market, but also began to export in small quantities to Central Asia. Our company has a full cycle from the production of raw materials to paper and cardboard products. Papermaking and packaging is a costly and expensive process. At the same time, the problem remains the cost of logistics and lack of qualified personnel, including welders, fitters,” director of Kompaniya-V LLP Vadim Dolgopolov said.

In turn, deputy chairman of the Board of Atameken NCE RK Kuanysh Bishimov stressed that the next step in the development of industry is to increase the export potential.

“The industry has a dynamic of growth, and we would like this growth to be substantial. The ban on the export of waste paper was the impetus for production of pulp in the country. Paper product exports amounts to 20 million dollars, its import amounts to 400 million dollars. This is the potential to open new and modernize existing enterprises. Currently, the National Chamber is cooperating with the Samruk-Kazyna Fund, large subsoil users in import substitution to provide support to manufacturers,” Kuanysh Bishimov stressed.

In addition, Kazakhstan has begun work on the production of pulp from technical hemp. Thus, according to chairman of the Committee for Industrial Development and Industrial Safety of the MIID RK Kanat Baitov, it takes the manufacturers 25 years to wait for the growth of trees and only then they can produce products, while hemp grows within 100 days.

“As of today, our enterprises work on imported raw materials and waste paper, and technical hemp can increase the volume of raw materials. In 2018 cellulose was extracted from technical hemp in Japanese laboratories. Now we are trying to sow hemp, it will be profitable,” Kanat Baitov said.

On the basis of the Association of Packers of the Republic of Kazakhstan, it is planned to create a center for design and packaging solutions. According to the director of the Association Batyrbek Aubakirov, the Center will help entrepreneurs to rebrand and create a completely new packaging for export products.

Remind that the Forum was held as part of the 21st Kazakhstan International Exhibition “Food, Drinks, Ingredients, Packaging and Equipment for the Food Industry” (“InterFood Astana”), which is a traditional meeting place for foreign and domestic experts in the food, processing and packaging industry.