Kazakhstan and Iran are to build a flat glass plant in Kyzylorda, southern Kazakhstan.

The agreement has been signed by the Investment Fund of Kazakhstan (a subsidiary of National Management Holding Baiterek) and Kaveh Glass Industry Group, an Iranian glass manufacturer.

Kazakhstan's share in the project will be 49%, while the Iranian company will have the controlling 51% stake.

The project cost is estimated at $284 million. The funding will be provided by the shareholders and through a loan. The shareholders will provide 30% of the amount - about $85.2 million with the remaining 70% - $198.7 million - from loans.

The construction of the new plant in the newly created industrial zone of Kyzylorda is to begin in October 2014.

Commissioning is scheduled for the third quarter of 2017.

The plant will produce products that comply with the European quality standard: flat glass (197.1 thousand tons per year), toughened glass sheet (3,700 tons per year), mirrors (3 million square meters per year), windows (7,700 tons per year) as well as energy-saving glass with magnetron sputtering (11 million square meters per year).

The plant will employ more than 300 people.

It is expected that 70% of all the products will be sold on the Kazakhstani market.