(Yicai Global) April 26 -- State-owned China CAMC Engineering and Kazakhstan Bio Grain have struck a EUR217 million (USD242 million) agreement to build a crop processing complex in the Central Asian nation.

The facility, in Kazahstan's Kostanay Industrial Park, includes grain silos, a grease workshop and flour and fodder production lines, the Beijing-based firm said in a statement yesterday, when the pair penned the deal.

The contract still needs approval from the Chinese and Kazakhstani governments and further funding before construction, which will last three years, can begin, the statement said, adding that whether and when the project can actually go ahead remains to be seen.

The agreement is the first between the two companies, the firm added, saying the deal will not affect its independence. The contract value equates to over 16 percent of its CNY10.2 billion (USD1.5 billion) revenue last year and is expected to boost income and profit over the next three years.

Building the plant will also help CAMC be a part of the Belt and Road Initiative and offer opportunities to explore the Central Asian market, according to the statement.

Editor: James Boynton