07ASTANA1117, KAZAKHSTAN: PAVLODAR CHEMICAL PLANT SOLD

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Reference ID Created Released Classification Origin
07ASTANA1117 2007-04-26 10:53 2011-08-30 01:44 UNCLASSIFIED Embassy Astana

VZCZCXYZ0016
RR RUEHWEB

DE RUEHTA #1117 1161053
ZNR UUUUU ZZH
R 261053Z APR 07
FM AMEMBASSY ASTANA
TO RUEHC/SECSTATE WASHDC 9268
INFO RUEHMO/AMEMBASSY MOSCOW 1401

UNCLAS ASTANA 001117 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR SCA/CEN (M. O'MARA) AND ISN/CTR (E. CAMERON) 
 
E.O. 12958: N/A 
TAGS: PARM PREL CBW CWC KZ
SUBJECT: KAZAKHSTAN: PAVLODAR CHEMICAL PLANT SOLD 
 
1. The Pavlodar Chemical Plant was sold at auction on March 
26 to Bazalt PV for 1.5 billion tenge ($13 million).  All of 
the plants assets - the buildings on the plant's territory, 
equipment and transport, and the Bylkyldak retention lake - 
were sold as one lot.  Little is known about Bazalt PV.  In 
response to press inquiries, neither the bankruptcy 
administrator nor the Pavlodar Oblast Department for Industry 
were able to provide any information about Bazalt's 
activities.  The company has not yet announced whether it 
will resume chemical production at the plant. 
 
2.  The auction marked a third attempt to sell the Pavlodar 
Chemical Plant after it declared bankruptcy in 2005.  Each of 
the first two auctions attracted only one bidder because of a 
requirement that all bidders possess a phosphorus 
pentasulphide handling license.  Three bidders participated 
in the third auction after the handling license requirement 
was dropped. The two losing bidders challenged the legality 
of the auction, claiming that Bazalt submitted its tender 
documents after the deadline for auction registration.  On 
April 19, a Pavlodar Oblast court dismissed the claim of the 
losing bidders. 
ORDWAY

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