ASTANA, Kazakhstan, November 1. Kazakh Invest discussed the possibility of implementing new projects for the production of original South Korean components for "KIA" in Kazakhstan, Trend reports.
Daulet Saktaganov, the Foreign Representative of "KAZAKH INVEST" in the Republic of Korea, met with Nam Chun Sik, Director of the Procurement Department at "KIA Qazaqstan." They discussed the potential for producing various automotive components for KIA vehicles in Kazakhstan.
The conversation included exploring partnerships with South Korean companies "SJG Sejong" and "Seoyon E-Hwa," both of which are original manufacturers of seating systems, bumpers, and mufflers for KIA cars.
Company representatives expressed their interest in investment
projects in Kazakhstan, emphasizing the strategic importance of
localizing automotive component production. These initiatives are
expected to create new jobs, facilitate technology transfer, and
bolster the local economy.
Saktaganov expressed optimism about the success of these
collaborative efforts and highlighted the Kazakh government’s
commitment to providing comprehensive support, including through
investment contracts.
"By the end of 2023, Kazakhstan produced over 148,000 vehicles, a 30 percent increase from the previous year. New automotive plants will open in the next three years, increasing the production capacity to 350,000–450,000 vehicles annually. The Head of State has emphasized the need for increased localization and the shift toward producing automotive components. The establishment of production facilities for these components in Kazakhstan presents new opportunities for both our country and our South Korean partners. We believe these initiatives will strengthen economic ties and foster the development of the automotive industry," Saktaganov stated.
A full-cycle plant for KIA vehicle production is under construction in Kostanay. This new facility will have a capacity of 70,000 vehicles per year and create 1,500 high-paying jobs, with total investments around $200 million. This project marks KIA's first direct investment in a joint venture and a factory outside the Republic of Korea.