INDUSTRIALIZATION IN KAZAKHSTAN

INDUSTRIALIZATION IN KAZAKHSTAN

Kazakhstan’s Industrialization program resulted in the establishment of 1,250 factories representing both oil extraction and non-resource-based production sectors. 500 billion Tenge were allocated for the manufacturing industry development based on the Kazakh President’s instruction. The preference was given to production facilities operating in both Kazakh and foreign markets. The manufacturing industry grew more than three times since the start of the Industrialization program. In 2017, the industry’s capacity totaled almost 9.5 trillion Tenge.   

 The Oil-Well Cement Manufacturing Plant in Kyzylorda region is a successful project in Kazakhstan’s manufacturing industry. The enterprise was launched in December in partnership with Chinese investors. The plant is expected to produce up to 1 million tonnes of cement per year. The plant’s output is used in construction, oil and gas and uranium industries.

Meanwhile, more than 30 large investment projects are being implemented in Karagandy region. The projects include solar power plant, cathode copper manufacturing plant, machine-building plant and gold extraction factory which were successfully upgraded. These projects are planned to attract 470 billion Tenge in Kazakhstan’s economy. Last year’s results showed that the regional manufacturing output totaled more than 2.5 trillion Tenge, which is 250 billion Tenge higher than in 2017.

ARMAN NURMAGANBETOV, DEPUTY HEAD, MANUFACTURING DEPARTMENT:

-Based on our plans, the manufacturing industry will grow by 4.5% or 2.7 trillion Tenge in 2019 due to the steel and copper production. We are set to produce more than 4 million tonnes of steel in 2019 and increase the copper production by 50,000 tonnes from last year. Our large investment projects are expected to reach the designed capacity this year. We are also planning to attract 500 billion Tenge of investments.  

The car manufacturing industry is also showing positive results. In seven years of the Industrialization program, the production has grown by 2.5 times. Every second car or truck in Kazakhstan was manufactured at local plants. For example, a car manufacturer in Kostanay produced more than 12,000 cars worth 80 billion Tenge in 2018. About 90% of the cars assembled in Kostanay were purchased by Kazakh citizens. The plant exported their output worth more than 1 billion Tenge to (countries, such as) Russia, Kyrgyzstan and Tajikistan. A test consignment was shipped to Belarus. The Kazakh enterprise is planning to establish a partnership with Azerbaijan. In 2019, the plant in Kostanay is expected to assemble more than 20,000 cars and export 1,500 of its production.

SERGEI MOGILATOV, DEPUTY DIRECTOR FOR TECHNICAL DEVELOPMENT, CAR MANUFACTURING PLANT:

-We will expand the sales markets of our output. However, our main export market is the Russian Federation. Large Russian cities such as Chelyabinsk and Yekaterinburg are just 170 kilometers away from us. 

Over the recent years, Kazakh manufacturers started producing more than 500 types of new products, which was never produced previously. 50 types of manufactured items are exported to 110 countries, such as China, Russia, as well as the Central Asian and European countries.