BAKU, Azerbaijan, April 10. The Qemtex
worldwide firm plans to enter the TOP 10 powder coating
producers, mentioned CEO of the corporate Alexandr Glukhov in an
unique interview with Pattern along with Chairman of the
Board of Administrators Jandos Temirgali.
– As we all know, your organization started operations in
Kazakhstan and have become the nation’s first powder coating
producer. The corporate grew over time, and Qemtex Chemical
Holding was shaped final 12 months. May you inform us concerning the firm’s
growth and progress?
– Alexandr Glukhov: Our firm in Kazakhstan
was based in 2003, and final 12 months it celebrated its twentieth
anniversary. Initially, it was created as a buying and selling and
distribution firm to promote powder coatings produced by international
corporations in Kazakhstan’s home market.
We had been the primary in Kazakhstan to begin importing and promoting
these merchandise, because the powder coating trade didn’t beforehand
exist within the nation. Over time, we not solely expanded our product
vary by including merchandise from neighboring international locations but additionally pushed
the event of native manufacturing amenities within the design of
polymer-painting workshops, the provision of portray tools, and
the coaching of enterprise groups to work with this kind of
product.
From 2003 to 2015, the corporate developed and expanded,
representing powder coating manufacturers from Turkey and CIS international locations in
the Kazakhstan market. With the creation of a single financial
house, the scenario modified: in 2015, Kazakhstan’s borders opened
up for items from the EAEU member international locations. Russian powder coating
producers started coming into the market immediately, bypassing
distributor networks. This not solely negatively affected product
margins but additionally led to a lower in product high quality within the native
market. The one manner ahead was to create our personal merchandise to satisfy
the wants of the home market.
Thus, in 2015, the Asiacolor model was created — the primary and
nonetheless the one Kazakh model of powder coatings. Initially,
manufacturing was established in China; regardless of intensive expertise
in promoting powder coatings, our workforce had neither the information nor
ample sources to prepare the method of producing these
merchandise.
We approached current producers in China with a transparent
understanding of the precise merchandise we wanted. On the similar time, we
totally managed the standard, parameters, and assortment of products,
which turned extremely wanted in Kazakhstan. In comparison with different
manufacturers’ merchandise that got here from exterior the native market, the
high quality of Asiacolor powder coatings was greater. Furthermore, we
completely knew the calls for of the native market and positioned orders
for merchandise that met our clients’ wants.
We continued to provide merchandise in China for 3 years. Whereas
the workforce was engaged on supplying the Kazakh market with Asiacolor
merchandise, I studied the expertise of powder coating manufacturing.
Since I’ve a bachelor’s in economics and enterprise and am not a
university-trained chemist, I needed to dive into the problem from
scratch. Additionally, no such manufacturing amenities had ever existed in
Kazakhstan, and there was merely nowhere to attract info from.
It was essential to determine cooperation with enterprises in
China, Turkey, and the UAE, the place such manufacturing amenities had been
working and applied sciences had been well-established.
By 2018, it turned clear that our workforce’s gathered information
and expertise had been ample to launch our personal manufacturing. We
relied solely on our in-house workforce; our first manufacturing facility, the Almaty
Powder Coatings Plant, was constructed by the efforts of our Kazakh
specialists alone. Financially, we relied on our personal funds whereas
additionally leveraging authorities assist instruments, which allowed us to
entice investments and launch the primary part of the undertaking.
Paradoxically, the launch of manufacturing coincided with COVID-19
restrictions: the plant opened in December 2019, and by February of
the subsequent 12 months, a lockdown occurred. Although
enterprises and companies world wide had been frozen, our plant
not solely survived that troublesome interval however even closed the 12 months
with a revenue, and the subsequent 12 months we greater than doubled our
gross sales.
To at the present time, the Almaty Powder Coatings Plant stays the one
revolutionary powder coating manufacturing enterprise within the nation,
driving the trade in Kazakhstan. In any case, as manufacturing
continues to develop and mature, we forge forward in gaining
expertise, creating applied sciences, and making a major
scientific and technical contribution to the trade. Getting into the
worldwide enviornment turned a logical continuation of the
enterprise’s growth. In 2023, we began building of the
Qemtex plant within the UAE.
– How was the choice made to maneuver from the native to
the worldwide market? And why was it determined to find the brand new
manufacturing facility within the UAE?
– Alexandr Glukhov: We had gathered
vital potential: scientific, technical, and monetary, and we
realized we had been able to assembly the wants of shoppers exterior
of the home market. Nevertheless, being localized in Kazakhstan, we
didn’t have the chance to enter the worldwide market,
primarily as a result of the nation is landlocked, which is a serious
logistical barrier. Subsequently, the choice was made to construct a
second plant overseas.
The United Arab Emirates turned that nation — the biggest
international logistics hub and a really perfect place to seek out extremely certified
specialists in varied industries from completely different international locations. Since
we deliberate to provide merchandise not just for the native market however
additionally for export to different international locations, the UAE turned out to be a
logical place for us to begin working within the worldwide
house.
– What merchandise do your enterprises presently produce,
and in what volumes?
– Alexandr Glukhov: Our manufacturing capability in
Kazakhstan is 1,500 tons per 12 months. We meet the wants of native
producers, so the vast majority of our merchandise include
industrial coatings, primarily for the development and electrical
engineering industries. Firms that produce steel merchandise for
the native market, reminiscent of radiators and heating units, are
vital shoppers of our merchandise.
The enterprise within the UAE will produce a a lot wider vary of
merchandise. It is because we plan to promote not solely within the native
market but additionally work with clients from different international locations, and the
wants for powder coatings fluctuate in every area. On this regard, the
new plant within the UAE will home a contemporary laboratory and R&D
middle.
Additionally, within the United Arab Emirates and several other different international locations in
the Center East area, there may be presently a surge in demand for
coatings because of the building increase and the event of
manufacturing amenities. Shoppers want architectural and facade
coatings and coatings for aluminum profiles, and we plan to satisfy
this demand. As well as, we’re additionally desirous about extra area of interest
areas, reminiscent of coatings for family home equipment and the automotive
trade. In Kazakhstan, such merchandise will not be manufactured, whereas
right here, within the Center East market, these industries exist, and the
demand for high quality coatings for them is excessive.
– What’s going to the product quantity be on the new UAE Qemtex
plant? And what markets is it targeted on?
– Jandos Temirgali: The undertaking within the United
Arab Emirates is split into two phases. The primary stage, which is
already in its ultimate part, includes the manufacturing of 4,500 tons
of merchandise per 12 months. Within the second stage, which we plan to launch
by the top of this 12 months, we plan to develop manufacturing to 10,000
tons per 12 months. The choice to separate the launch of manufacturing into
two phases was made for a smoother market entry. We plan to begin
with a comparatively small quantity with the goal of understanding the
specifics of the market, making the mandatory changes, and
implementing them within the second stage to reduce dangers.
Total, the entire quantity of merchandise produced by the enterprise
will depend upon the implementation of our international technique. We have now
the potential to extend manufacturing on the UAE plant to twenty,000
tons per 12 months.
Though the enterprise is situated within the GCC area, we don’t
plan to remain inside this “framework.” We view the UAE undertaking as a
international export-oriented enterprise, aimed toward opening consultant
workplaces worldwide. We’ll produce merchandise right here and set up
connections with shoppers based mostly in all kinds of areas with
completely different preferences and requirements, whether or not in Europe, North
America, or Asia.
– Which markets are of specific curiosity to the
holding firm and are necessary provide factors? Are there any
Central Asian international locations amongst them, significantly Kazakhstan and
Azerbaijan, and the way a lot of a precedence are these
markets?
– Alexandr Glukhov: At this stage, the markets
of specific curiosity to us are, in fact, the markets the place we
are localized. In Kazakhstan, we have now formed the powder coatings
market and stay the strongest participant in it.
We’re additionally very desirous about working with Azerbaijan.
Kazakhstan and Azerbaijan presently have wonderful relations and
robust commerce ties. Expertise exhibits that our international locations are rising
nearer, so the Azerbaijani market could be very interesting to us. We’ll
undoubtedly think about it, and now we have now already entered that market
by way of our undertaking in Kazakhstan.
For the Qemtex plant within the UAE, the GCC market the place we’re
beginning operations is engaging, however our plans are a lot broader.
When it comes to growth, we’re targeted on the US market, as this
area is a hub for trade progress and we see great potential
there.
Although it’s a very complicated market with completely
completely different guidelines and requirements, we’re not intimidated. We plan to
set up a analysis middle in the USA that can examine
and develop merchandise particularly for this market. We’re additionally
desirous about Europe. Sooner or later, we plan to arrange a analysis
middle in Italy and localize manufacturing there. We go the place our
product is most in demand and worthwhile.
– How do you intend to deal with competitors within the GCC
market? In any case, in contrast to the Kazakhstan market, competitors within the
powder coatings trade is excessive right here.
– Jandos Temirgali: Firstly, we’re
not solely targeted on the home market. Qemtex is open to
working with your complete world, and all of the circumstances for this are
accessible right here. For instance, giant enterprises with vegetation in
completely different international locations world wide are normally aimed toward working
with native shoppers.
We, alternatively, are taking the other strategy: we do
not have the duty of putting your complete order throughout the area.
Nevertheless, we have now a robust scientific base and a multinational workforce,
which incorporates specialists within the powder coatings area from
Kazakhstan, Italy, Turkey, India, and Saudi Arabia with as much as 30
years of expertise within the trade. This permits us to provide a
product that’s tailored to the necessities of particular areas
world wide, no matter the place our manufacturing amenities are
situated.
Fulfilling orders from different international locations and having the
alternative to discover ways to work in these areas is a superb
incentive for us. Subsequently, we plan to provide about 30% of our
merchandise on the Qemtex plant for the GCC market, whereas the bulk
will likely be for patrons from different areas.
But when we speak about competitors with native producers in
normal, I do not suppose anybody on this market will face
difficulties. Fairly, this market presently requires rather more
powder coatings than are being produced. There’s a noticeable
development of rising demand for powder coatings, not solely within the Center
East area but additionally worldwide.
Within the GCC area, the UAE and Saudi Arabia have turn out to be drivers
of market progress. Demand for merchandise is rising within the USA,
Europe, the Pacific area, and Latin America. This is because of
varied causes: each the rise in building quantity and
particular person industries the place high-quality coatings are required, as
nicely as a rising curiosity in powder coatings as an environmentally
pleasant, practical, and extra sensible answer for producers
than conventional liquid coatings.
I’m additionally assured that if an enterprise produces a
high-quality product at applicable market pricing, then there
gained’t be issues with gross sales, even in aggressive circumstances.
– The corporate allocates substantial sources to the
analysis and growth of latest applied sciences. May you inform us
about this space?
– Jandos Temirgali: As a part of our undertaking in
the UAE, we have now shaped a workforce of specialists who will likely be engaged in
analysis, and I can say that our laboratory, which we will likely be
launching within the UAE within the close to future, will likely be among the many high
three main laboratories for this kind of product within the area.
Sooner or later, we plan to open two extra fashionable analysis facilities in
the USA and Italy to develop new merchandise and enhance current
ones, which can make Qemtex merchandise more and more accessible to
clients whereas sustaining their high quality and adapting them to
particular markets and industries.
One might say that by investing vital sources in
analysis and growth, we wish to produce merchandise that nobody
else does. However in all seriousness, the powder coatings trade is
not solely rising but additionally actively creating. It requires the
implementation of latest applied sciences to adapt coatings to particular
buyer wants.
For instance, a producer wants to provide a sure amount
of merchandise inside current manufacturing volumes and particular
technical circumstances. A typical powder coating can’t meet this
requirement; it must be tailored or modified for the buyer.
One other instance is when a producer plans to provide merchandise
that can not be polymerized beneath commonplace curing parameters. A
particular answer is required to allow this.
There are numerous examples like these, and we encounter
comparable requests commonly: to provide coatings for merchandise with
complicated chemical preparation, for particular weather conditions, for
thinner ornamental surfaces, for decreasing vitality prices in
manufacturing, and so forth. Fulfilling such requests from shoppers is
solely attainable if the corporate has a robust scientific basis and
an revolutionary analysis middle. That is why we have now and can proceed
to take a position substantial sources in analysis and growth and
improvements within the trade.
– Immediately, corporations have began to concentrate to
environmental safety in manufacturing and recycling. What measures
is Qemtex taking on this course?
– Jandos Temirgali: Qemtex prioritizes
environmental friendliness and sustainable growth. Our new
plant within the UAE is being in-built compliance not solely with native
environmental laws but additionally with the strictest worldwide
environmental requirements.
We have now zero emissions, and our manufacturing is 100% recyclable.
The one waste we generate is cardboard bins and polyethylene, however
we ship even that for recycling in return for brand new cardboard and
polyethylene packaging. We’re happy with our 100%
eco-friendly, zero-waste manufacturing.
– In conclusion, inform us concerning the holding’s plans for
2024 and past. Are there plans to construct new factories and develop
geographically? What investments will likely be directed towards
implementing these tasks?
– Jandos Temirgali: Within the third quarter of
2024, we plan to launch the enterprise within the UAE. On the finish of
2024, we’ll begin the second part, which must be accomplished by
mid-2025. By that point, we plan to open consultant workplaces in
the USA and Europe and improve the manufacturing capability of the
enterprise in Kazakhstan to three,000 tons per 12 months.
In 2025, we’ll start implementing tasks within the USA and
Mexico. We’re presently actively negotiating with native
authorities and choosing areas for these tasks. The overall
capability of the 2 enterprises in North America will exceed 40,000
tons per 12 months. Our largest R&D middle will even be situated in
the USA, and we plan to finish the development of each
amenities in 2027.
Between 2027 and 2028, we plan to open a facility in Europe with
a analysis and growth middle in Italy. Total, within the subsequent
5 years, we intend to extend our international presence to 4 to
5 enterprises with areas in North America, Europe, and
Asia.
The overall funding for these tasks will exceed $100
million, and in 5 years, the entire annual capability of the
amenities will surpass 70,000 tons per 12 months.
Our strategic plan is to turn out to be one of many high 10 international
corporations within the manufacturing of powder coatings throughout the subsequent
seven to eight years. We’re assured that these plans are
achievable, as we have now assembled a workforce able to tackling recent
challenges.
