[Ferro-Alloys.com] The global economy is struggling to bear the brunt of the pandemic, with business people in particular suffering, most of whom have never been able to regain pre-quarantine positions and performance. However, there has been a slowdown not only in production but also in consumption. According to expert data, quarantine measures related to coronavirus around the world have already had a greater impact on business than the 2008 financial crisis. Nevertheless, there are exceptions - those who have managed not only to “revive” their assets, but also to multiply them. YDD Corporation LLP, for example, is launching the third furnace of its high-quality ferrosilicon plant.
According to the founders E. Nigmatulin, D. Kemertelidze and Z. Appaz, such a success lies in the effective structuring of business processes, timely optimization of the transport logistics scheme, competent construction of production cycles and sales policy.
The capacity of the third furnace is 85.5 MVA, with its commissioning the total production capacity of the ferroalloy plant of YDD Corporation LLP will increase by 30% to 180 thousand tons per year.
- Today is a significant day for the YDD Corporation team, as this is the first time, we have launched the furnace without the help of foreign specialists. That is why I would like to express my gratitude to our employees, partners and contractors who were able to implement the plans to increase the plant's productivity. This once again proves that the plant employs highly qualified specialists who are capable of to bring Made in Kazakhstan goods to an international level. The products of the plant meet the highest international quality requirements. And during the pandemic, we managed to expand the geography of sales to 15 countries and develop the export potential of the Republic of Kazakhstan. Currently, the plant exports its products to more than 37 countries. Today the main sales markets are Japan, South Korea, Europe, America, etc., - highlighted Erlan Nigmatulin, the founder of YDD Corporation LLP.
- Current production volumes have been managed to keep during the first wave of Covid-19 pandemic, due to the company's shareholders, who have been creating all the necessary conditions from the shift work schedule to the rotational work.
“We are pleased that, regardless of the situation around the world, the furnace has been launched as planned. Karaganda Ferroalloy Plant is a message to the global investment community about the opportunities of Kazakhstan economy and the investment climate held by the leadership of the Republic of Kazakhstan. I have had the opportunity to work in different countries around the world, including Europe, where traditionally, the investment climate is considered attractive. However, nowhere else in the world have I seen such a well-thought-out and functional government service for investors”, - commented David Kemertelidze, the founder.
- “The pandemic has been a real test for the population, especially during the state of emergency. It is good to know that in such challenging times we managed to create additional jobs for the people of Karaganda. The launch of the third furnace will undoubtedly give a positive impetus to the region and will have a positive multiplier effect”, - said Zharmukhamed Appaz, the founder of YDD Corporation LLP.
- The share of the Kazakhstani part in the project is more than 95%, the construction of the high-tech plant is financed by Development Bank of Kazakhstan JSC (DBK, a subsidiary of Baiterek Holding), one of the country's main financial institutions specializing in the assessment and structuring of large investment projects.
“YDD Corporation's plant is a key and exemplary project of DBK, high payment discipline of the borrower is exemplary, all payments for services are made on time in line with schedule. Despite the negative consequences of the pandemic and the global slowdown in production, the plant is launching the third furnace and increasing production capacity. This step has a positive impact on the economic and social development of the region. If we speak about a national scale, such high-tech production of ferrosilicon develops the export potential of the republic - this is crucial for us,” - said Abai Sarkulov, Chairman of the Management Board of DBK.
The founders of YDD Corporation LLP - Erlan Nigmatulin, David Kemertelidze and Zharmukhamed Appaz - showed their civic initiative and high consciousness at a difficult time for all and were among the first to provide charitable assistance and support to their compatriots, substituting their reliable shoulder for the state. The Company has allocated KZT 100 million to the Karaganda Regional Fund established to support the state actions in emergency conditions. In July, 100 oxygen concentrators, pulse oximeters and Enoxaparin were donated to Karaganda region hospitals for treatment of coronavirus patients. In August, 10 cars were donated to mobile groups of polyclinics for treatment, transportation and monitoring of patients at the pre-hospital stage and equipped with emergency suitcases.
We remind, that the plant of YDD Corporation LLP launched in July 2019. The main direction is production of high-quality, high grade ferrosilicon (FeSi75), which is used in the production and alloying of steel, iron alloys to improve mechanical and corrosion resistance of ferrosilicon metals. The plant's production capacity is 180 000 tons per year. The plant has been built using the latest technologies and the production process is fully automated. The total construction cost of YDD Corporation plant amounted to approximately USD 92 million. The project was implemented entirely at the expense of private funds of Kazakhstan and European investors, with attraction of DBK loan financing within the State Program of Industry and Innovative Development (KZT 24.1 billion for 11 years at 8.9% per annum).