Integrated Leather, Gelatin & Wool Processing Opportunity

An investment opportunity to establish a modern industrial processing platform for cattle and sheep hides, leather, gelatin feedstock and wool products in Kazakhstan. Kazakhstan has a substantial livestock base, extensive pasture resources and an established supply of raw hides and wool. The opportunity is designed to capture additional value by moving from the export and sale of raw materials toward higher-value processed leather, gelatin raw materials and finished wool products. The project is supported by growing international demand and Kazakhstan’s strategic access to major markets across China, Europe and Central Asia. KEY INVESTMENT HIGHLIGHTS US$17M indicative investment requirement 16.9% target IRR US$3.1M NPV 6.05-year simple payback Significant domestic livestock and raw-material base Kazakhstan has approximately 180M hectares of pasture, of which only around 30% is currently utilized Approximately US$7B of livestock production generated in 2024 Opportunity to process cattle hides, sheep/goat skins and wool Multiple downstream products with higher value-added potential Strong international demand from China, Italy, Vietnam, India, the United States and European markets Export duties on hides and wool abolished from April 2025 Government program supports development of agricultural product processing Potential investment subsidies of up to 25% for hide and wool processing Potential livestock-related subsidies of up to 50% Strategic opportunity to establish a modern processing complex in an underdeveloped segment of Kazakhstan’s agro-industrial sector MARKET OPPORTUNITY The global market for processed leather, hides and wool remains substantial, with established international trade flows. Global Export Markets — 2024 Cattle Hide Products Approx. US$12.7B Sheep & Goat Skin Products Approx. US$4.4B Major importing markets include: China Vietnam Italy Indonesia USA India Germany Kazakhstan’s geographic position provides potential access to both Asian and European buyers, while growing domestic processing can reduce reliance on exports of lower-value raw materials. RAW MATERIAL BASE Kazakhstan benefits from extensive livestock and pasture resources supporting a long-term domestic raw-material supply. The country has: Approximately 180M hectares of pasture Significant cattle and small-ruminant production Established cattle and sheep farming traditions Large agricultural and feed resources Potential to increase hide and wool collection and processing efficiency A key market opportunity is the modernization of the fragmented hide-collection and processing ecosystem through centralized procurement, modern processing technology and higher-value downstream production. VALUE-ADDED POTENTIAL The project offers significant value creation through deeper processing. Cattle Hides Raw Hide → Tanned Leather → Finished / Processed Leather Indicative value uplift per tonne: Raw hides: ~US$378 Tanned leather: ~US$700 Processed leather: ~US$3,614 Wool Raw Wool → Combed Wool Yarn → Retail Wool Products Indicative value uplift per tonne: Raw wool: ~US$253 Combed wool yarn: ~US$763 Retail wool yarn: ~US$1,150 The downstream processing model provides an opportunity to capture substantially more value from Kazakhstan’s existing agricultural raw-material base. PROJECT ECONOMICS Metric Indicative Investment Requirement US$17M NPV US$3.1M IRR 16.91% Simple Payback 6.05 years Discounted Payback 8.72 years The project model indicates progressive profitability during the operating period, with indicative gross profit reaching US$10.3M and net profit reaching US$6.8M by 2035. GOVERNMENT SUPPORT & INCENTIVES The project aligns with Kazakhstan’s agricultural-processing development priorities. Available support mechanisms may include: Investment incentives and tax preferences Agricultural investment subsidies Up to 25% reimbursement of investment costs for hide and wool processing Up to 50% livestock-related subsidies Support for wool collection equipment Potential customs and tax preferences subject to eligibility Government support for the establishment of additional hide and wool processing facilities Kazakhstan’s 2024–2028 agricultural product processing program specifically identifies hides and wool as priority processing areas and targets the development of additional processing projects. STRATEGIC INVESTMENT RATIONALE The opportunity combines abundant agricultural resources, established livestock production, strong international demand and significant downstream value creation potential. A modern processing platform could address several structural gaps in the market: Raw Material Availability → Extensive livestock and pasture resources Collection Infrastructure → Opportunity to consolidate fragmented supply Modern Processing → Limited availability of advanced tanning and wool-processing facilities Value Addition → Significant uplift from raw materials to finished products Export Potential → Access to major international leather and wool markets TRANSACTION OVERVIEW Project: Integrated Leather, Gelatin & Wool Processing Location: Kazakhstan Raw Materials: Cattle Hides / Sheep & Goat Skins / Wool Investment Requirement: US$17M Indicative IRR: 16.91% NPV: US$3.1M Simple Payback: 6.05 years Target Markets: Kazakhstan / China / Europe / Central Asia / International Investment Stage: Development Opportunity Status: Confidential — Qualified Investors Only All financial, market and production figures are indicative and subject to detailed feasibility studies, market conditions, technical validation and independent due diligence. Parameter / Metric Conservative (Downside) Moderate (Base Case) Aggressive (Upside) Gross Initial Capex US$19.5M (+15% cost overrun) US$17.0M (Baseline) US$16.0M (-6% procurement optimization) Govt. Capex Reimbursement 10% (US$1.95M net subsidy) 15% (US$2.55M net subsidy) 25% (US$4.00M maximum statutory) Net Equity/Debt Capex Outlay US$17.55M US$14.45M US$12.00M Collection & Tannery Utilization 65% capacity at maturity 80% capacity at maturity 95% capacity at maturity Finished Leather Yield Bias toward semi-finished (wet blue / crust) Balanced mix (wet blue & finished) Maximized finished leather & retail yarn Mature Gross Revenue (2035) US$21.5M US$31.2M US$44.8M Mature Gross Profit (2035) US$6.2M US$10.3M US$15.6M Mature Net Profit (2035) US$3.4M US$6.8M US$10.9M EBITDA Margin at Scale ~20% ~27% ~31% Project IRR 10.4% 16.91% 23.8% Project NPV (@ 12% WACC) -US$1.2M US$3.1M US$9.8M Simple Payback Period 8.2 years 6.05 years 4.4 years Discounted Payback Period >11.0 years 8.72 years 6.1 years Legal Notes The information contained in this business listing is provided for informational purposes only and does not constitute an offer to sell, a solicitation of an offer to buy, or a recommendation of any security, business, or asset by MergersCorp M&A International or its affiliates. All financial data, operational metrics, and business details concerning the 60-year-old corrugated packaging and eco-logistics manufacturing business have been provided solely by the seller or third-party sources and have not been independently verified by MergersCorp M&A International. Prospective buyers are strongly advised to conduct their own independent due diligence, accounting, financial, legal, and regulatory audits before entering into any binding agreement or transaction. MergersCorp M&A International makes no representations or warranties, express or implied, as to the accuracy, completeness, or reliability of the information provided herein and accepts no liability for any direct, indirect, or consequential losses resulting from reliance on this listing. Access to detailed company documentation, financial statements, and confidential negotiations is strictly contingent upon the execution of a Non-Disclosure Agreement (NDA) and the provision of verifiable Proof of Funds (POF) + Buy Side Fee Agreement. The post Integrated Leather, Gelatin & Wool Processing Opportunity appeared first on MergersCorp M&A International.

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