As part of the implementation of the instructions of the Head of State Kassym-Jomart Tokayev on diversifying the economy and increasing the competitiveness of industrial sectors, the Government has taken a number of measures to modernize existing and create new production facilities, as well as actively attract investment in the industry. For more details, see the review on Primeminister.kz.
Growth in investment in the manufacturing industry
From January to September of this year, investments in fixed capital in the manufacturing sector grew by 34.3%. The main focus is on modernizing existing and creating new production facilities, providing industrial infrastructure, which directly affects the increase in labor productivity and the expansion of export opportunities for Kazakhstani products.
To attract investment, special economic and industrial zones are being actively developed, providing favorable conditions for the implementation of industrial projects.
In 2025, new SEZs were launched in the Aktobe and Kyzylorda regions (a total of 16 SEZs, 61 industrial zones, and 34 small industrial zones). To date, 532 projects have been implemented in SEZs, including 85 with foreign participation, and 449 projects are still in the implementation stage, including 42 with foreign participation. The volume of foreign direct investment in SEZs amounted to about 925.3 billion tenge (US$2 billion).
In January-September 2025, five agreements were signed on investments in the manufacturing sector for a total amount of over KZT 3.1 trillion (USD 6.2 billion). Four more agreements are currently under consideration, covering areas such as ferroalloy production, passenger cars, cement, etc.
In order to ensure the utilization of existing production facilities and stimulate the production of goods not previously manufactured in Kazakhstan, long-term supply contract mechanisms are being actively introduced. Such off-take contracts significantly reduce risks for investors and ensure guaranteed sales of products. By the end of 2024, 898 long-term agreements and off-take contracts worth more than KZT 1 trillion had been concluded. In January-July of this year, 1,035 contracts were signed for a total of 1.179 trillion tenge, which is 1.7 times more than in the same period last year.
Launch of 190 projects in priority sectors
In order to accelerate industrial development in the country, 190 projects in priority industries worth KZT 1.5 trillion are being implemented. Their implementation will create 22,600 new jobs in metallurgy, mechanical engineering, oil and gas chemistry, and the food industry.
The projects are aimed at developing high-tech industries, increasing the depth of raw material processing, strengthening export potential, and expanding the non-resource sector of the economy.
To date, 115 projects worth 838.1 billion tenge have been launched, creating 13,384 jobs. By the end of this year, it is planned to launch 75 projects worth 691.1 billion tenge, creating 9,200 jobs.
The key projects include the following:
1. Kazpoligraf LLP – in-depth localization of the production of drive axle beams in the Kostanay region. The total investment is 78.2 billion tenge, with the creation of 100 jobs. The planned output is 46,000 castings per year.
2. KazTurboRemont Service Center – welding shop for the production of locomotive support beams in the Atyrau region, investment amount – 4 billion tenge, creating 80 jobs. Planned output – 1,000 units per year.
3. Novoishimsky Melkombinat LLP – a plant for the production of combined mixtures in the North Kazakhstan region, with an investment of 1.5 billion tenge and the creation of 35 jobs. Planned output is 750,000 tons per year.
When all projects reach full capacity, their production volumes will amount to about 2.3 trillion tenge, including 0.8 trillion tenge in planned exports and 1.5 trillion tenge in import substitution.
There are also plans to create 5,700 permanent jobs in rural areas and 1,800 in single-industry towns.
The industrialization of the country has made it possible to expand the range of products manufactured. Over the past three years, the production of polypropylene, ferrosilicon, hot-briquetted iron, special coke, household appliances, car tires, and cast components for freight transport has been successfully launched. Production has been established for new types of fertilizers (KazAzot, KazPhosphate), building materials (ceramic tiles, thermal insulation materials, energy-saving glass), oil and gas equipment (Caspi Oil Capital), and medicines.
Focus on deep processing projects
Particular attention is paid to the creation of highly processed manufacturing facilities. On the instructions of the President, breakthrough projects are being implemented in industry aimed at maximizing the use of domestic raw materials and components, as well as developing related industries around large enterprises.
These initiatives have been selected as part of a program to diversify the economy and stimulate the competitiveness of the manufacturing industry. Among them are the KIA Qazaqstan (Kostanay region) and Astana Motors Manufacturing Kazakhstan (Almaty) automobile plants, as well as projects in metallurgy, chemistry, petrochemistry, and the food industry:
Projects in other key sectors – metallurgy, chemicals, petrochemicals, tourism, agriculture, and food processing – are continuing to be implemented:
1. Metallurgical cluster of Mineral Product International LLP (Pavlodar region).
2. Hot briquetted iron production plant SSGPO JSC (Kostanay region).
3. Modernization of the Qarmet plant (Karaganda region).
4. Copper smelting plant KAZ Minerals Smelting LLP/NFC (Abai region).
5. Yertis hydrometallurgical plant (Pavlodar region).
6. Butadiene and its derivatives production plant, Butadiene LLP (Atyrau Region).
7. Polyethylene terephthalate (PET) production plant, KMG PetroChem LLP (Atyrau Region).
8. Second stage of the Shymkent Oil Refinery, KazMunayGas National Company JSC (Shymkent).
9. KazAzot Prime LLP ammonia and urea production plant (Mangistau region).
10. Potash salt enrichment and production complex of Qazaq Kalium Ltd (West Kazakhstan Region).
11. Multifunctional tourist area of Astana Tourism LLP (Astana).
12. Comprehensive development of “Warm Beach” (Mangistau region).
13. Integrated agro-industrial complex for deep processing of wheat and peas (Astana).
14. Plant for deep processing of grain and wheat Qostanai Grain Industry LLP (Kostanay Region).
15. Integrated gas chemical complex Silleno LLP/KMG PetroChem LLP (Atyrau Region).
New generation metallurgy using the example of hot briquetted iron production
In addition, the development of “green” metallurgy is among the important areas of focus. For example, a large-scale “green” metallurgy project is being implemented in the Kostanay region. Eurasian Resources Group (ERG) has begun the next phase of construction of a hot briquetted iron (HBI) plant in Rudny, signing a strategic contract with a consortium of Primetals Technologies Austria GmbH (Austria) and Midrex Technologies Inc. (USA).
The plant, with a capacity of 2 million tons of HBI per year, will be one of the largest new metallurgical facilities in Central Asia. Production will be based on MIDREX Flex direct iron reduction technology, which reduces the carbon footprint by more than 50% compared to traditional blast furnace processes.
The investment in the project exceeds KZT 650 billion, and commissioning is scheduled for 2029. Over 1,000 jobs will be created.
The implementation of the project will enable Kazakhstan to enter the global steel industry market with competitive deep processing products and will serve as an example of the introduction of environmentally friendly technologies in domestic industry.
Petrochemicals – a new driver of industrial growth
Petrochemicals is also one of the most dynamically developing sectors of industry. In 2024, petrochemical production reached 540,000 tons, which is 150.5% higher than in 2023.
A major step for the sector was the signing of the industry's first investment agreement for the construction of a methanol production plant. In addition, a roadmap for the development of the oil and gas chemical industry for 2024-2030 has been approved, and a new law “On the Oil and Gas Chemical Industry” is being drafted, which is planned to be adopted in 2026.
Based on the planned volumes, 590,000 tons of oil and gas chemical products are expected to be produced by the end of this year.
In the first nine months of this year, production amounted to 477,200 tons, or 115.8% of the same period last year (412,200 tons).
Synergy between science and production
At the same time, large domestic companies are actively building cooperation with scientific organizations, striving for deeper technological progress and the creation of competitive solutions in domestic and foreign markets.
KMG PetroChem and the National Academy of Sciences of Kazakhstan under the President of Kazakhstan signed an agreement on cooperation in the field of introducing domestic urea into the agro-industrial complex. The document is aimed at scientific verification of future urea production and a comprehensive assessment of its effectiveness.
Under the agreement, the Academy of Sciences conducts laboratory and field research on soils and plants, and prepares scientific reports and practical recommendations. In 2025, trials have already begun in various agroclimatic zones of the country, covering about 600 hectares of cropland.
The results will make it possible to increase crop yields, strengthen export potential, and provide Kazakhstani farmers with effective domestically produced fertilizers.
In this way, the government is working to develop highly processed industries, increase industrial competitiveness, and create new jobs.