New $150 Million Wood Processing Plant to be Built in Kazakhstan's North

The government of Kazakhstan has approved a major investment agreement for the construction of a large-scale wood processing plant in the North Kazakhstan region. The agreement was signed between the Ministry of Industry and Construction and the company Ultradecor Trading Kazakhstan.

The project, valued at 70 billion tenge (approximately $150 million), is scheduled for implementation between 2026 and 2028. Upon completion, it is expected to create at least 160 permanent jobs, boost domestic timber processing, increase output of finished goods, and strengthen the industrial capacity of the region.

The new facility will have an annual production capacity of about 600 cubic meters of particleboard (chipboard) and up to 20 million square meters of laminated particleboard (Laminated Chipboard).

The investment agreement includes key provisions for supporting the local economy. It mandates the use of goods, raw materials, work, and services from Kazakhstani producers. Furthermore, the investor is obligated to supply at least 50% of its finished products to the domestic market.

Once the plant reaches 80% of its designed capacity, it is projected to export up to 60 thousand cubic meters of finished products annually. The deal also includes commitments for social support in the region and establishing a system for continuous staff training and professional development.

The implementation of this project is seen as a significant step forward for Kazakhstan's wood processing industry. It aims to increase local content in manufacturing, expand employment opportunities, and bolster the export potential of the country's processing sector.