How a Chinese business approach saved a glass factory in Kyzylorda

The managers of the Orda Glass LTD glass factory in Kyzylorda, as part of a press tour organized by the Chinese Embassy in the Republic of Kazakhstan, talked with journalists about the prospects for the development of glass production in the country, the agency’s correspondent reports.

“We made adjustments in the technological design, invested funds for the operation of the plant. In 2022, the plant had already completed construction and was put into operation. If not for the Chinese company, the plant would still be standing,” said the administrative director of the enterprise, Zhao Liensui.

The plant is a subsidiary of the China National Glass holding company, which 100% owns the Kyzylorda enterprise, an investment project of the One Belt - One Road initiative.

Until 2017, before the acquisition of the plant by Chinese partners, production was completely stopped. There were conflicts between former shareholders, the scandalous arrest of the former Minister of National Economy of Kazakhstan for repeated receipt of bribes, including $2 million for the patronage of one of the companies participating in the construction of the glass factory. The company was on the verge of bankruptcy, as there was a large amount of debt to suppliers. Now all debts have already been covered.

“We can say that we, as shareholders, invested 2-3 times more in this plant than anywhere else. Before we acquired this plant, the state invested about $50 million. After completion of construction, we returned this amount to the state. Successful commissioning of the plant into operation is the biggest contribution for the Kyzylorda region,” added the plant director.

The plant was first launched on October 9, 2022. The company is the first to produce sheet glass in Kazakhstan.

The plant employs 377 people, 107 of whom are Chinese citizens. Today, a program has been launched under which Kazakhstanis are trained in production technology over three years and promoted through career growth to management positions. Employees will be sent to China to improve their skills.

If the power goes out, local workers don't know what to do. For example, recently the lights were turned off for 40 minutes, which resulted in a loss of 250 million tenge due to the fact that employees did not know what exactly to do. To accurately understand the production principle, a minimum of three years of training is required,” explained the plant director.

The average salary of the company's employees is higher than the average in the Kyzylorda region - 300 thousand tenge.

There are plans to lay off Chinese employees. By 2025, we plan to keep about 50 Chinese in jobs. Their families are in China, they want to work there. Here, their salaries are correspondingly higher, which also affects the cost of production,” the manager shared his plans.

The CNG holding ranks third in glass production in China. Production exceeds the entire total volume of the Russian manufacturer. Glass production exceeds Kazakhstan's demand, so 30 percent of finished products are exported to Uzbekistan, Tajikistan and Russia.

The plans include the production of glass for solar panels. This glass is produced only in China, but if it begins to be produced in Kazakhstan, then export to Europe is possible. Also next year it is planned to produce energy-saving Low-e glass and colored glass. In this future, it is planned to invest another $15 million in the enterprise.

Every day the plant produces 500 tons of sheet glass with a thickness of 3.5 to 12 millimeters. The most powerful Swedish, Italian, German, Turkish and Japanese equipment consumes 1,800 thousand kW per hour. The temperature in the workshops rises to 45 degrees. At the same time, labor is minimized here. It is enough for a person to control the operation of machines and manage installations. According to GOST, the products meet all requirements. Each glass sheet is carefully checked for strength.

Source: https://www.kt.kz