KAZAKHSTAN ENERGY WEEK – 2023
VMP Astana Plant: A Kazakhstani Manufacturer with Global Quality Standards
Interview conducted by Petroleum with Mikhail Vakhrushev, President of the VMP Research & Production Holding
– Mr. Vakhrushev, last year, your holding company, VMP, inaugurated a paint and coatings manufacturing plant in Astana, Kazakhstan. The company has been a successful operator in Russia for many years. Can you share insights from your experience in the Russian market?
– The VMP Research & Production Holding has been a stable market leader in the Russian paint and coatings industry for over 30 years, specializing in long-term protective solutions for metal and concrete. We design and manufacture high-quality coatings that are comparable to international counterparts, making VMP products highly sought after in major construction projects both in Russia and abroad. Our product range currently includes over 130 items, encompassing anti-corrosion materials for all operating environments, fire-resistant compounds, and polymer floor coatings.
We have extensive experience applying our coatings in projects for major companies such as Gazprom, Rosneft, Transneft, Lukoil, Sibur, Evraz, Roscosmos, RusHydro, Novatek, and many others.
– Why did VMP choose Kazakhstan as the location for its new manufacturing facility?
– The company has been operating successfully in the Republic of Kazakhstan for many years. We have supplied materials to the country, and they have proven to be extremely effective in the Kazakhstani market. The demand was consistently growing; we increased sales volumes and accumulated experience interacting with local companies, which eventually led to the decision to build a plant. The new manufacturing facility in Astana is a significant milestone in the strategic development of our holding company. We have come closer to our clients in Kazakhstan, and a year after the plant's opening, I can confidently say that the decision to build it was timely and beneficial for both the holding and our Kazakhstani partners.
– What challenges did you encounter during the construction of the plant? Was there any support from Kazakhstan’s governmental structures or business representatives?
– The Astana plant was constructed during the pandemic, which led to difficulties in sourcing construction materials. Nonetheless, the facility was completed on schedule.
We received valuable assistance from Astana's local government authorities in the construction of our infrastructure networks. Our facility was promptly connected to water supply, sewage, and electrical grids. Furthermore, VMP Astana was included in the roadmap of a program designed to support small and medium-sized businesses.
The plant is strategically located in Astana's Free Economic Zone, giving us additional advantages. In turn, we have initiated a unique manufacturing operation in Kazakhstan, creating jobs, paying taxes, and supplying the market with protective coatings that meet international standards.
– How do you assess the plant’s performance in its first year?
– The plant was inaugurated in August of the previous year, and within just six months, we reached our targeted annual production capacity of 5,000 tons. Recently, we set a record by producing 22 tons of product in a single day.
Additionally, we have fully staffed both the production and management teams. The leadership of the enterprise is composed of 90% Kazakhstani citizens.
The plant has fully met our expectations, and we are confident that our operations in Astana will continue to expand.
– Could you speak on the current product range and quality control measures?
The product assortment manufactured at the Astana plant currently includes over ten items. Our production capabilities can adapt according to market needs, and the plant is well-equipped for this.
We have carried over our high manufacturing standards to this new facility. As with our other production sites, we produce materials that adhere to international quality standards and implement rigorous quality control at all stages of the production process.
Our internal Quality Control lab tests both raw materials and finished products. This ensures dual quality control in compliance with the parameters outlined in our regulatory documentation. Each batch of products is accompanied by a quality certificate. The Quality Control lab is equipped with state-of-the-art European technology, and our staff undergo continual training and internships at VMP's head office.
– Since our journal caters to professionals in the oil and gas industry, could you elaborate on how your plant's products are utilized in this sector?
– Our products are already being used in several major projects in Kazakhstan. Anti-corrosion coatings are widely employed by oil and gas companies to protect storage tank farms and metal structures at production facilities. Additionally, fire-resistant materials from VMP Astana are in high demand within the industry.
Currently, we are undergoing certification and accreditation with major oil and gas companies, such as Tengizchevroil, North Caspian Operating Company, and Karachaganak Petroleum Operating. Our materials have also successfully passed laboratory testing at KazMunayGas Engineering. Furthermore, our products have been included in the ABC-4 costing database, which allows project institutes in the Republic of Kazakhstan to use locally sourced materials in their designs.
Beyond this, we also manufacture products for export to the Russian Federation, the Republic of Uzbekistan, and other countries.
– Could you share any significant or interesting events that have occurred at the plant with our readers?
– August 19 marked the one-year anniversary of our Astana plant. The facility ramped up to its designed capacity very quickly and continues to grow. We are currently awaiting the arrival of new Italian equipment, which will enable us to expand our product range. We are also planning to construct an additional warehouse on the plant premises, allowing us to produce and store more products. This will also facilitate targeted storage of materials for our clients for specific periods.
- What sets VMP Astana apart from its competitors, in your opinion?
– Our products hold an Industrial Certificate, verifying that VMP Astana is a Kazakhstan-based manufacturer. Additionally, our materials are certified under the CT KZ standard, confirming their production in Kazakhstan. This offers our products certain advantages over foreign paint and coating materials.
Given our plant's location within Kazakhstan, we can provide clients with the required materials on a short timeline. Therefore, our advantages include quick delivery periods and well-established logistics. Depending on the order, we can manufacture specific products within one to two weeks and deliver them promptly to the site.
We also provide technological support throughout the project lifecycle. Our service technologists will oversee the correct preparation and application of VMP materials, check subcontractor compliance on the client’s premises, offer consultations, provide assistance, and aid during the acceptance process. Proper adherence to technological procedures not only extends the lifespan of the materials but also reduces maintenance costs.
– Could you discuss your future plans? What strategic objectives do you have? Will VMP be expanding its market presence in Kazakhstan and other countries?
– At our Astana plant, we plan to broaden our product range. We anticipate that our materials will be used in projects by international companies operating in the Kazakhstan market.
VMP Holding already has extensive experience in supplying paints and coatings to projects in other countries. Our products are utilized in India, Turkey, Azerbaijan, Belarus, and other nations. Currently, we are seeing increased interest in VMP Astana's materials from companies in Uzbekistan, Kyrgyzstan, and Turkmenistan.