Yersayin Nagaspayev, Minister of Industry and Construction of the Republic of Kazakhstan, reported on key projects currently underway in the country’s manufacturing sector during a government meeting.

He stated that, as part of implementing the President’s directives on economic diversification, the Ministry is conducting systematic work with a focus on deep processing of basic raw materials and the development of localized production. The manufacturing sector demonstrates high growth rates annually. Since 2024, the sector’s share has exceeded that of the mining industry, leading to structural shifts between sectors. This growth is driven by the development of the metallurgy, machine-building, chemical, construction materials, rubber and plastics, and light industries. The mechanism of “securing domestic raw materials,” enshrined in law, has facilitated cooperation between domestic manufacturers and raw material suppliers.

“A striking example of such cooperation is the Kainar-AKB plant.” It purchases lead from KazZinc at a preferential price, and the batteries produced are supplied to both the domestic market and for export. In addition, domestic enterprises manufacturing electrical equipment use metals produced by Kazakhmys and the Kazakhstan Electrolysis Plant. “Qarmet’s products are supplied to Silk Road Electronics for the production of household appliances, as well as to railcar manufacturing enterprises, providing them with the necessary rolled metal,”— noted Yersayin Nagaspayev.

According to the ministry, agreements on raw material supplies have also been concluded between metallurgical enterprises and cable factories. In addition, favorable investment conditions created at the legislative level have contributed to the growth of electrical machinery production. As a result, production volumes have increased at the “Silk Road Electronics” plant in Saran and the “Almaty turmystyq tehnika” plant in the Almaty region. Last year, production of Samsung appliances began on the production line at the “Silk Road Electronics” plant. By the end of this year, it is planned to produce approximately 440,000 units of household appliances.

In the ferrous metallurgy sector, as part of the implementation of the Head of State’s directives, “Qarmet” is carrying out a comprehensive modernization program aimed at restoring the plant’s operations and increasing steel output to 5 million tons. This modernization program provides the impetus for a transition to deeper steel processing. Today, various steel grades with numerous different characteristics are already being supplied to the market.

The QazTehna plant serves as a concrete example of this. The plant uses the country’s first hydraulic stamping press to produce various metal components for bus bodies made of 08KP galvanized steel, which is manufactured at the Qarmet plant. Further development of new steel grades as part of modernization opens the door to new market segments. For example, stamping and high-strength steel enable the localization of production of components for the automotive industry. Weather-resistant steel and structural steel contribute to the expansion of production of railway cars and containers.

“Last year, the automotive industry showed record growth, accounting for more than 41% of the machinery manufacturing sector. More than 171,000 vehicles were produced, of which 159,000 were passenger cars. Two new high-tech production facilities were launched—a multi-brand plant in Almaty featuring the Chery, Haval, and Changan brands, and the Kia Qazaqstan plant in Kostanay,"—added Yersayin Nagaspayev.

According to him, the launch of such plants provides an additional impetus for the localization of auto parts production. For instance, last year an auto parts technology park was launched in the Almaty Industrial Zone, where production of multimedia systems for cars and car seats has been organized.  In Saran, the Tengri Tyres plant has established production of automobile tires. In Kostanay, KamLitKZ has organized the production of cast iron castings using modern technologies and automated systems for precision casting. Additionally, the company Allur has begun construction of a center for the localization of auto component production. In addition, over the next three years, new projects for the localization of automotive components will be launched, such as:

• exhaust systems;
• heating, ventilation, and air conditioning (HVAC) systems;
• brake and fuel lines;
• plastic interior and floor covering parts;
• 5. final drives and drive axle beams for trucks.

The agricultural machinery sector also continues to show steady positive growth. Year-end growth stood at 30.4%, driven in part by a 32.9% increase in tractor and combine harvester production. Today, domestic manufacturers supply up to 90% of the domestic market. The country has 10 tractor manufacturing plants representing 12 brands, as well as more than 20 enterprises producing mounted and towed equipment with a total annual capacity of up to 35,000 units. Last year, production of agricultural machinery by the American brand John Deere was localized, which made it possible to launch the production of new types of high-performance equipment.

“In addition, last November, during the Head of State’s visit to the U.S., a strategic agreement was signed with John Deere to localize the production of over 3,000 units of equipment, establish service centers, and develop digital technologies in the agricultural sector.

This year, following John Deere, partner brands from Europe and Canada are expected to join the localization effort," — said Yersayin Nagaspayev.

It was noted that in railway engineering, there is a trend toward the formation of clusters uniting manufacturers of components and finished equipment. For example, a cluster of enterprises specializing in the production of finished railway equipment, parts, and other components has been formed in Ekibastuz. In the Atyrau region, the company “TexolTrans” has begun production of freight cars and tank cars with a capacity of 6,000 units.

In addition, KazTurboRemont LLP has launched the production of locomotive support beams. In Astana, the production of passenger cars has begun at the Stadler Kazakhstan plant with an annual capacity of 100 units. Work is underway to localize and launch new production facilities for open cars, spare parts, and large-scale railcar castings.

The glass industry is also a prime example of cluster formation and production diversification.  By the end of last year, output had grown by 17%. The industry’s development strategy is based on attracting anchor investors to create a stable raw material base for small and medium-sized business projects in the field of deep processing. Today, thanks to direct contracts with Orda Glass LLP, the uninterrupted operation of enterprises producing mirrors, fiberglass, and ultra-thin glass is ensured.

Promising niches have also been identified, and an active search for investors is underway to develop them in the segments of automotive glass, glassware, and thermal insulation materials. The minister spoke about the high potential of the domestic rare metals sector for economic diversification and the creation of high-tech manufacturing facilities.

Currently, domestic products are export-oriented and are used by leading global manufacturers in the aviation and marine industries, as well as in aircraft engines, electronics, and electric vehicles. Over the past two years, the range of products manufactured in Kazakhstan has been expanded to include new items such as technical selenium and high-purity manganese sulfate monohydrate, which are used in the renewable energy sector. This year, a production line capable of producing 15 tons of gallium per year will be commissioned.

During the Head of State’s visit to Japan last December, ERG and Mitsubishi Corporation signed an off-take contract for the supply of this metal. Additionally, plans are underway to launch production of refined antimony with a capacity of 2,400 tons. A pilot batch of concentrate has already been successfully processed. Thus, Kazakhstan appears to be one of the key countries in the midstream segment of the mining and metals industry.

“As part of the Head of State’s directive, 17 key projects have been selected that will determine the further development of the manufacturing industry. The Ministry is currently working on 9 projects. Two of them were launched last year—these are the previously mentioned automobile production projects. Work on the remaining projects continues.  The full launch of all 9 projects will generate $7.3 billion in production, which will reduce import dependence and expand export potential in mineral fertilizers, metallurgy, and automotive manufacturing,” — emphasized Yersayin Nagaspayev.

The minister added that the proposed measures are aimed at developing processing industries, industrial cooperation, and the production of goods with higher added value.  The Ministry will ensure the practical implementation of these approaches and monitor the achievement of target indicators. 

Source: primeminister.kz