Kazakhstan is cementing its status as a key industrial hub in Central Asia, according to a press release from AGROMASH. With the participation of Kazakhstan’s Prime Minister Olzhas Bektenov, a major agreement was signed: seven global technology leaders from Europe, Canada, and North America will localize the production of agricultural machinery at the AGROMASH plant in Kostanay.

Industry leaders have become new partners of Kazakhstani machine builders: Väderstad, Dewulf, Lindsay Corporation, Amity Technology, Vervaet, Kuhn Group, and Brandt Agricultural Products. The projects will be implemented using the production facilities of the Localization Center in Kostanay. As the company notes, the multilateral agreement has brought together the efforts of AGROMASH and Eurasia Group AG, the Ministry of Industry and Construction of the Republic of Kazakhstan, the Ministry of Agriculture of the Republic of Kazakhstan, and the national investment holding “Baiterek.”

Prime Minister of Kazakhstan Olzhas Bektenov emphasized that the growing needs of the agricultural sector are creating a stable and predictable market for agricultural machinery. More than 130,000 tractors, approximately 30,000 combine harvesters, and over 200,000 units of towed and mounted equipment are in operation across the country’s fields. Meanwhile, the fleet renewal rate stood at 6.5 percent at the end of last year. The target is to increase this figure to 10 percent annually. To this end, the government has established a comprehensive system of support measures, including subsidies covering up to 30 percent of equipment purchase costs, reduced burdens on loans and leases, and the provision of preferential financing at 5 percent for domestically produced equipment.

"Kazakhstan’s President Kassym-Jomart Tokayev pays special attention to the development and enhancement of the agricultural sector’s technological potential. Increased production volumes, higher yields, and expanded exports are raising the bar for farmers’ technical equipment. Therefore, we view the modernization of equipment, its affordability, and the promotion of domestic manufacturers as fundamental conditions for the sector’s further development. Kazakhstan’s partnership with leading foreign manufacturers is characterized by sustainable mutual benefit and is focused on long-term cooperation. The government is ready to create conditions for new production facilities, providing support for projects at all stages—from localization to entry into foreign markets,” said Olzhas Bektenov.

Eurasia Group AG also reported that the successful experience of working with the John Deere brand served as a catalyst for attracting new investors. As market participants note, the establishment of facilities for these seven giants at the Localization Center will create a unique machinery manufacturing cluster.

"The consistent industrial policy of the Head of State and the government has laid the foundation for trust. First, market leader John Deere entered the country, and this success sent a powerful signal: today we see other global players following in its footsteps at a rapid pace. We are adopting new technologies, implementing advanced standards, improving the qualifications of our technical specialists, and are ready to provide farmers with high-tech machinery manufactured in Kazakhstan," says AGROMASH Plant President Dinara Shukizhanova.

The collaboration between Eurasia Group AG and AGROMASH is aimed not only at expanding production but also at making global innovations accessible to Kazakhstani farmers.

"The market is transforming: following John Deere, seven more legendary brands are entering Kazakhstan. Our goal as an integrator of cutting-edge solutions in agriculture is to provide farmers with a complete technology chain. Localizing production within the country will reduce delivery times and give farmers the opportunity to fully take advantage of government support, making the world’s best technologies accessible to every farm,” noted Sergey Glocke, Chief Operating Officer of Eurassia Group AG.

AGROMASH is confident that the signed agreements open a new chapter in the history of Kazakhstan’s machine-building industry and strengthen our country’s position on the global industrial production map.

Source: tengrinews.kz