Domestic manufacturers exported nearly $3 billion worth of engineering products. These are the figures for the first nine months of last year. Growth compared to the same period was 47%, according to a correspondent from 24KZ. The Association of Kazakhstan Machinery Industry intends to increase this figure. The President of the country gave instructions to support and develop the domestic manufacturing industry, including machine building, in his 2019 Address. During this time, the sector has shown tremendous growth in production volume – threefold.

For a couple of years now, the Saran plant has been meeting the country's bus needs. Of course, the deficit is still impressive. But the very fact that transport assembled at a domestic plant is rolling across Kazakhstan is a source of pride.

Zharas Isabekov, small assembly workshop foreman:

— The small assembly method is a complete cycle, with all components and assemblies being assembled from scratch. There are around 8,000 components in the small assembly workshop. This bus is one of the most comfortable. It has pneumatic suspension and independent front suspension, which allows passengers to travel in greater comfort.

Kazakhstanis are also looking forward to a new car manufacturing plant in Kostanay. At the same time, a huge transport and logistics complex and localization center are being built there. They will move from small-scale assembly to the production of auto components for mechanical engineering. This is another victory in the development of mechanical engineering and the manufacturing industry as a whole.

Meyram Pshembaev, Chairman of the Association of Kazakhstan Machinery Industry:

— Mechanical engineering products account for a large share of global exports. In developed countries such as the US, Japan, South Korea, and Germany, these products account for up to 50-60% of exports. The driving force behind progress is, first and foremost, machine building, followed by petrochemicals, with all other industries participating in the final production process.

Our country has all the prerequisites to become the driving force behind the economy in this sector.

For example, the roadmap for the development of mechanical engineering, launched back in 2019, was implemented ahead of schedule. The five-year plan was completed twice as fast. The adoption of the industrial policy law and the creation of the Industrial Development Fund played a major role in this. Manufacturers received benefits and even tax breaks. All this led to a threefold increase in engineering production over four years.

Meyram Pshembaev, Chairman of the Association of Kazakhstan Machinery Industry:

"Kazakhstan has never produced diesel locomotives. Today, we manufacture electric locomotives in partnership with General Electric and Alstom, and we are now moving into joint production of passenger cars with the Swiss company Stadler, as well as KIA, Daewoo, and Scoda in the automotive industry. Manufacturers such as the German company Class, which produces tractors and combine harvesters, have entered the country. The machine-building industry encompasses 37 sectors, including oil and gas, mining, and defense.

All these industries will experience a new wave of development with the implementation of the Comprehensive Plan for Mechanical Engineering, which has been outlined step by step until 2028. It must be acknowledged that the target indicators are also quite ambitious – to bring production volumes up to 11 trillion 3 billion tenge. Obviously, this means growth in labor productivity and investment. However, in order to achieve the export volume target, radical measures will have to be taken, according to the economist. According to Zhangeldy Shimsikov, the unequal opportunities of EAEU manufacturers will simply “crush” domestic ones.

Zhangeldy Shimsikov, economist:

"We simply need to suspend our membership for a while. I have said many times that when the Eurasian Union's draft laws were being adopted, all the projects were prepared exclusively by Russian research institutes. We have lost our own economic benchmarks, and we may face secondary sanctions.

In the meantime, the Association of Kazakhstan Machinery Industry and the relevant ministry are doing everything they can to protect manufacturers through legislation. The Parliament is currently considering amendments regarding the supply of raw materials, mandatory purchases from local manufacturers, and another package of tax incentives.

Authors: Dinara Zhanbatyrova, Ruslan Aliyev, Botagoz Zhumanova