According to the Kazakhstani media recently reported that Kazakhstan's only factory producing glass containers and other products - "SAF" glass products company called on Kazakhstan Ministry of Industry and Trade to carry out import investigations of glass containers, limiting the amount of imports, and safeguarding the interests of domestic companies.
According to statistics of the Kazakhstan Customs, Russia and China are the countries that export glass containers to Kazakhstan.
The general manager of the company said that the import of large quantities of foreign cheap glass containers and the lack of support for ethnic enterprise policies have caused the loss of the market share of similar products in the country. The current operating conditions of the company have deteriorated and the production scale has been reduced, and some employees have been dismissed. . If you continue to maintain production, you also need to apply for preferential policies to relevant departments, including cancellation of various energy and municipal fees that need to be paid in advance, and reduce the relevant tax rate; due to raw materials, energy, and labor costs for glass bottles and cans imported from countries such as Russia and China. Such links are lower than the local products in Kazakhstan. The price of domestic products is only 6-8 tenge (1 US dollar for 150 tenge) to be competitive, but this is already lower than the factory's production cost; Russian-made glass containers 56 % was exported to Kazakhstan. On the Russian market, 20 factories had closed down due to the drop in the price of glass containers; if there were no impact from the import dumping price, Kazakhstan’s production would go up.
According to the “SAF†factory, its operating rate is only 45%, and more than half of its production capacity is idle. In the history, the highest operating rate of factories reached only 74%. Its production capacity can fully meet the domestic market demand for 60% of glass bottles, cans and other products. At present, the market share of glass containers is: 30% for reusable glass bottles and cans; 20% for domestic-made glass bottles and cans; and 50% for imported glass bottles and cans. Imported products compete with the domestic products for the market, not because the domestic can not produce, just because the price of foreign products is lower.
According to statistics, in 2008 Kazakhstan's total import volume of colorless glass containers was 81,000 tons, and the import volume was 44.2 million US dollars. Compared with 2006, the two indicators increased by 36% and 82.6% respectively. Of which, China imported 19,400 tons and the amount was US$1.6 million.
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