206 projects worth US$2.3 billion to be launched in regions of Kazakhstan
A large-scale project to establish a large engineering cluster is expected to be launched in Kostanai region, Kazakh Minister of Industry and Infrastructure Development Beibut Atamkulov announced today, on September 15, at a government meeting. He said that the business incubator will increase the share of domestic production in Kazakhstan. The plans include the production of more than 2,000 parts and components needed for the production of cars and agricultural machinery.
“Currently, a corresponding investment agreement is being prepared for signing, and the construction is planned to begin in September this year. The production complex with an area of 38,000 square meters will be commissioned in December of this year achieving the planned capacity as early as next spring. The business incubator will facilitate the development of new competencies,” Atamkulov said.
He stressed that 95 percent of the output will be export oriented.
“Ultimately, it will be integrated into the global value chain covering Russia, the CIS, and also the German automotive corporation Daimler AG. Thus, the region is moving from an agrarian-oriented direction to an industrial and innovative stage of development,” Atamkulov said.
Currently, the relevant ministry, together with the regions of Kazakhstan, is also working on industrialization maps that will cover various industries. The work is carried out taking into account the specifics of each area and its competitive advantages.
“A total of 206 projects amounting to 995 billion tenge (US$2.3 billion) are planned for the regions of the country this year. More than 18,000 new permanent jobs will be created. In terms of sectors, the largest number of new productions, or 76 projects, will be launched in the agro-industrial complex and food industry. 38 and 19 projects will be launched in the sectors of building materials and mechanical engineering, respectively,” Atamkulov stated.
In addition, he announced at the government session the results of the work done over the past eight months. Atamkulov said that, during this period, 28 projects were completed for a total of 204 billion tenge (US$478.8 million), which helped create 4,300 jobs.
“14 projects worth more than 97 billion tenge (US$227.6 million) are expected to be launched in the third quarter of the year. Most of the projects (164) will be introduced in the fourth quarter. Overall, the work is proceeding according to schedule. Current problematic issues are being addressed together with the governors’ offices of the regions,” Atamkulov concluded.
In terms of investments in projects, the leaders are Karagandy region, Aktobe region and Almaty region.