BAKU, Azerbaijan, June 24. Kazakhstan has increased localization in railway engineering production to 35-40% in certain product categories.
This was published by the press service of the Kazakh government in a press release following a cabinet meeting on June 16.
"Currently, the localization rate for certain product categories has already reached 35-40%," Industry and Construction Minister Yersaiyn Nagaspayev said.
According to him, work is ongoing to further increase domestic content through cooperation with local suppliers, development of new components, and establishment of joint ventures.
Additionally, the minister noted that production of rolling stock increased by more than 9% over the past five months, while output in certain segments rose by up to 1.7 times.
The press release noted that the sector’s growth reflects both rising investment inflows and the gradual development of domestic industrial capabilities within Kazakhstan’s railway manufacturing ecosystem.
For reference, Kazakhstan’s railway engineering sector is structured around several major industrial hubs developed in partnership with leading global manufacturers. The key enterprises include the Lokomotiv Kurastyru Zauyty (LKZ) locomotive plant in Astana, operating in cooperation with U.S.-based Wabtec, which focuses on the assembly and servicing of mainline freight locomotives adapted for regional railway conditions.
Another major facility is the Alstom Kazakhstan Engineering plant, which produces and maintains electric locomotives under cooperation with France’s Alstom, supporting both freight and passenger rail operations. In addition, the Stadler Kazakhstan plant in Astana manufactures passenger railcars and commuter trainsets in partnership with Switzerland’s Stadler Rail, contributing to the modernization of the country’s passenger rolling stock.
Overall, the sector is developing in tandem with the implementation of large-scale rolling stock modernization programs carried out by the national operator, Kazakhstan Temir Zholy, which continue to stimulate demand and contribute to greater localization in manufacturing and maintenance.
