ASTANA, Kazakhstan, November 13. Construction of a full-cycle plant for the production of Kia cars has started in the Kostanay region of Kazakhstan, Trend reports.
The production capacity of the new plant, where it is planned to create 1,500 high-paying jobs, will be 70,000 cars per year. About $250 million of foreign investment will be invested in the project.
Construction work is expected to be completed in 2024, after which installation of equipment will begin. A pilot launch of the plant will take place in the first quarter of 2025, and the full production cycle will open in the second quarter.
Earlier, the President of Kazakhstan Kassym-Jomart Tokayev and the management of the South Korean company agreed on the construction of the plant.
Speaking at the construction start ceremony, First Deputy Prime Minister of Kazakhstan Roman Sklyar noted that for the first time in history, Kia is making a direct investment in a joint venture and building a plant outside the Republic of Korea.
In turn, President and CEO of Kia Corporation Ho-Sung Song pointed out that Kia fully supports Kazakhstan's industrial policy in terms of increasing the level of local content in the automotive industry.
Kia is already actively working to open a localization center in Kostanay. Here, with the participation of small and medium-sized businesses, they will produce auto components.
Trade turnover between Kazakhstan and South Korea in 2022 amounted to $6 billion. The total investment of Korean companies in the economy of Kazakhstan exceeded $8 billion. Thus, South Korea is among the top 10 major investors in Kazakhstan.
Today, more than 700 Korean companies and joint ventures operate in Kazakhstan.
