The Kentau Transformer Plant expands the export geography thanks to KazakhExport
Kentau Transformer Plant JSC, which is a part of Alageum Electric Holding Company, has obtained a pre-export financing on favorable terms to the amount of KZT 825 mln. with the assistance of KazakhExport. Now the enterprise carries out an intensive work to enter the markets of Iran, Pakistan, Mongolia, Georgia and Armenia.
According to some representatives of AlageumElectric, having obtained the said pre-export financing with the assistance of the Export Insurance Company “KazakhExport”, the plant acquired a competitive advantage in foreign markets, namely, the possibility of granting a delay in payment when entering into export contracts. By means of it, negotiations started on the entrance to new markets.
“Support from KazakhExport is of great importance to our Holding Company. Thanks to KazakhExport, our foreign trade operations are protected from the risk of non-performance of financial obligations under international agreements. During the cooperation with KazakhExport, we have managed to enter the markets of Russia, Tajikistan, Afghanistan, Turkmenistan and Kyrgyzstan. The pre-export financing is the possibility to obtain the financing to purchase components to produce export goods that will allow reducing a cash gap in the granting of a delay in payment to foreign counterparties”, - say the representatives of Alageum Electric.
Moreover, the specialists of the largest electrotechnical company of Kazakhstan highly appreciate such tool of KazakhExport as an export-trade financing, which implies the financing of foreign counterparties acquiring Kazakhstan goods. “All these support tools stimulate the growth of the export potential of our plant”, Alageum Electric states.
The demand for products of the Kentau Transformer Plant remains unchanged and increases in the countries of Asia and the post-Soviet space. Domestic general-service transformers are not inferior to the leading CIS producers in terms of the performance, the quality or the price. Equipment under the Kentau Transformer Plant trade mark operates reliably in Kyrgyzstan, Uzbekistan, Tajikistan, Russia and Turkmenistan. The dealer network and service centers are set up in the Russian Federation.
We remind that one of the main tools of KazakhExport - the pre-export financing affords an opportunity to domestic companies to increase export deliveries by simultaneously receiving working capital at a reduced interest rate. For this service, the exporter sells its goods to the importer with the term of a delay in payment. To minimize risks, the exporter insures in KazakhExport the risk of non-payment by the importer for the delivered goods at the end of the delay in payment. Then the exporter should apply to its bank with an application for working capital. After the agreement between the bank and KazakhExport, the Export Insurance Company makes a conditional bank deposit in this bank, whereafter the bank grant a loan to the exporter for replenishment of working capital at the reduced interest rate. The exporter purchases raw materials, and produces and delivers goods to the importer, and pays an insurance premium. Having received money for the sold goods, it repays the loan. If for some reason or other the importer fails to perform its obligations, KazakhExport makes an insurance payment to the exporter.
To use the above-mentioned and other tools, please contact the call-center by 8 (727) 250 00 21. You can also find additional information on the website: keg.kz.
