AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
According to a press release dated 7 August 2015, the Development Bank of Kazakhstan JSC ("DKB", a subsidiary of 'Baiterek' Holding) financed an export operation of Ust-Kamenogorsk Titanium Magnesium Plant JSC ('UKTMP') at the amount of 7 billion tenge (ca. million 37.8 million USD). The state support is allocated under advantageous conditions within the framework of "Nurly Zhol" -- the State Programme for Infrastructural Development for 2015 -- 2019 (related GTA Report No. 10937).
The state financing is to be used for production of alloys and ingots produced by UKTMP and their subsequent sale to large European companies (no specific destinations disclosed). However, the internet page of Kaznexinvest reports that the "ingots and alloys after processing will be used for the construction of the European aircraft company Airbus". Airbus is headquartered in France. Its final assembly production locations are used for identification of the affected trading partners.
'Today our entity is one of the producers of titanium ingots for aerospace industry. 100% of UKTMP products are exported to industrially developed countries. Kazakhstan titanium accounts for about 11% of the world market of this metal, and over 17% in the aerospace industry. Financial support, provided by the state, Baiterek Holding enables the plant to receive 'cheap' long-term funds through DBK and complete all the tasks related to creation of innovative production assigned by the Head of the state', -- said the President of UKTMP JSC Mrs Assem Mamutova.
The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets, and from foreign subsidiaries.
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