AKIPRESS.COM - Kazakhstan and Iran are going to build a plant for production and processing of flat glass in Kyzylorda, southern Kazakhstan, Baiterek Holding said.

The agreement has been signed by Investment Fund of Kazakhstan (a subsidiary of National Management Holding Baiterek) and Kaveh Glass Industry Group, the largest manufacturer of glass products in Iran and throughout the Middle East.

Kazakhstan's share in the project will made 49 percent. And the Iranian company, the project's strategic investor, will get the controlling 51 percent stake.

The project cost is estimated at 52 billion tenge ($284 million). The funding will be provided by the shareholders and through obtaining loan. The shareholders will provide 30 percent of the amount - about $85.2 million - and the remaining 70 percent - $198.7 million - will come from loans.

The construction of the new plant in the newly created industrial zone of Kyzylorda is to begin in October 2014. Commissioning is scheduled for the third quarter of 2017. The plant will produce products that comply with the European quality standard: flat glass (197.1 thousand tons per year), tempered glass sheet (3,700 tons per year), mirrors (3 million square meters per year), windows (7,700 tons per year) as well as energy-saving glass with magnetron sputtering (11 million square meters per year).

It plant will employ more than 300 local professionals.

It is expected that 70% of all the products will be sold on the Kazakhstani market. The rest will be exported, mainly to the countries of the Customs Union (Russia and Belarus) and Central Asia (Uzbekistan, Kyrgyzstan, Turkmenistan and Tajikistan).