Orzax Makes Major Production Move into Central Asia

Orzax, Turkey's leading dietary supplement brand, has laid the foundation for a new production facility to be built in the TURAN Special Economic Zone in Turkistan, Kazakhstan, as part of its global growth strategy. The facility, which will be implemented in accordance with GMP (Good Manufacturing Practice) standards, will increase Orzax's export capacity while enabling it to reach surrounding markets, particularly in Central Asia, on more competitive terms.

The foundation-laying ceremony was attended by Turkistan Region Governor Koşerov Nuralhan Oralbayuly, Orzax Board Chairman Pharmacist Selman Alimoğlu, Orzax Kazakhstan General Director Nurettin Aktaş, government representatives, business partners and media.

Strategic investment supported by strong incentives
The investment, carried out with financing support from the European Bank for Reconstruction and Development (EBRD), will benefit from comprehensive incentives offered by the TURAN Special Economic Zone in Turkistan.

Built on 100 hectares of free land, the facility will enjoy corporate tax and VAT exemptions for 15 years, as well as property and land tax advantages, social security employer contribution incentives and customs duty exemptions on imported machinery, equipment and raw materials. Additionally, through state logistics support and Kazakhstan's competitive energy costs, a cost advantage of approximately 30 percent on water, natural gas and electricity expenses is targeted.

Majority of production destined for export
The new facility will function not only as a regional production center but also as Orzax's global export hub.

While 85-90 percent of production is planned to be exported to international markets, particularly Central Asia, East Asia, Far East and CIS countries, the remaining 10-15 percent will be supplied to Kazakhstan's domestic market.

Thanks to Kazakhstan's free trade agreements in force with 12 countries, Orzax aims to increase its competitive strength by reaching target markets with customs advantages.

36 million boxes initially, 80 million boxes as target
In his comments on the investment, Orzax Board Chairman Pharmacist Selman Alimoğlu stated:

"This facility, whose foundation we have laid in Turkistan, will be one of our most important strategic investments to increase Orzax's global competitive strength and profitability. With an investment of approximately USD 40 million, our facility will initially operate with an annual production capacity of 36 million boxes. In the coming period, we aim to increase this capacity to 80 million boxes.

In the first phase, we are targeting USD 100 million in revenue. With the completion of capacity increases, we anticipate our facility will reach annual revenues and export volumes of USD 180 million. The energy cost advantages offered by Kazakhstan, tax incentives, social security employer support and duty-free access to 12 countries will significantly reduce our production costs. This investment will further strengthen our position in emerging markets, particularly in Central Asia, East Asia and CIS countries. Upon reaching full capacity, our facility, which will provide direct employment to approximately 500 people, will be one of the important centers of Orzax's global growth."

Will also host new production lines
The facility, which has an expansion area of 100 hectares, will not be limited to dietary supplement production in the future. In the coming period, pharmaceutical, cosmetic and new active ingredient production lines are planned to be integrated into the facility.

With its high production capacity, logistics advantages and proximity to emerging markets, the facility is aimed to play an important role in Orzax's long-term sustainable growth and internationalization strategy.