BAKU, Azerbaijan, Sept.22
Trend:
The roadmap on Kazakhstan’s machine-building industry for 2019-2024 is being fulfilled ahead of schedule, the Vice Minister of Industry and Infrastructural Development of the country Marat Karabayev said at the IX Forum of Kazakh Machine-Builders, Trend reports.
“If we look at the points of this roadmap, to date, 48 points have been implemented, and nine are being implemented. In this regard, since the main measures have been fulfilled ahead of schedule, now the re-approval and updating of this roadmap is underway,” Karabayev noted.
The vice minister spoke about the three main results of the roadmap’s implementation.
“The first is the development of a bill on industrial policy, which is under consideration by the Mazhilis [lower chamber of the country’s parliament] and reflects many of the issues raised by entrepreneurs and industrial workers,” he pointed out. “The second result is the creation of the Industrial Development Fund. The fund is functioning and it will provide long-term lending at a rate of 3 percent or more. The third result is the provision of raw materials for domestic machine builders. This mechanism has been developed, provided in the bill, and now is functioning in a pilot mode.”
Presently, according to Karabayev, the roadmap is being updated. Over the years of industrialization, more than 1,500 projects have been implemented, more than nine trillion tenge ($2.1 billion) have been attracted to the country's economy, and over 200,000 new jobs have been created.
“Of this number, nearly 360 projects worth over 450 billion tenge ($1.05 billion) account for the machine-building industry. All sectors of the processing industry grow on average at the level of six-seven percent per year, whilst in machine building in 2020 there was a growth of 16 percent. This year, compared to last year, the growth in this industry made up 24 percent,” he further said.
“Machine-building is the most dynamically developing sector of the processing industry - its share rose by 5 percentage points, from 9 to 14 percent. The volume of production in the mining and metallurgical complex is more than five trillion tenge ($12 billion), and one third part of this volume accounts for machine-building industry - last year it amounted to 1.8 trillion tenge ($4.2 billion),” he noted.
“From the machine-building segments, the greatest growth accounted for the automotive industry - last year 75,000 cars were produced, and this year the production of 100,000 cars is planned. Of the 93,000 cars sold in Kazakhstan in 2020, 67,000 are domestically produced. One third of the new cars purchased are of Kazakh production,” the vice minister also noted.
He informed that last year, over 8,000 cars were exported, this year it’s planned to export 15,000, and in 2022 – 30,000 cars. Work is underway to localize production in all machine-building segments. A localization center has been created in Kostanay region, where more than 2,000 items of parts for agricultural machinery are produced.
As Karabayev pointed out, the plans for the sector include the creation of tire production, foundry, and production of bridges. The established enterprises are export-oriented and will supply products within the global chain to KamAZ enterprises. Large projects have also begun for stamping parts, automotive glass and the production of cabins for agricultural machinery.
According to him, rapid growth has been also recorded in the electrical industry (by 28 percent for the first seven months of 2021), while the volume of production amounted to 130 billion tenge ($300 million). The fourth transformer plant, also oriented to foreign markets, was launched in the North Kazakhstan region.
Indicators of the railway engineering increased by 50 percent for seven months of this year, and the volume of production amounted to 150 billion tenge ($350 million), added Karabayev.
