28.04.2025, 22:00 126766

Central Asia's first seamless pipe plant likely to be built in Kazakhstan

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Kazakhstan's Deputy Prime Minister - Minister of Foreign Affairs Murat Nurtleu held a meeting with Stefano Manfredi, General Director of the Spanish company TUBACEX IBF Kazakhstan, Kazinform News Agency learned from the press service of the Kazakh MFA.

The sides discussed the issue of establishment in Kazakhstan of the first seamless pipe plant in Central Asia, producing pipes from stainless steel and nickel alloys. The project aligns with Kazakhstan’s strategic priorities to develop a high-tech industry and expand import substitution potential in the metallurgical sector.

Minister Nurtleu emphasized that the Kazakh Government is ready to provide comprehensive support for the implementation of the investment project, noting that the launch of the new plant will make a significant contribution to strengthening the country’s industrial sector and creating new jobs.

Founded in Spain, TUBACEX specializes in the production of seamless stainless steel and nickel alloy pipes for the energy, oil and gas, and petrochemical sectors. Today, the company operates 24 production plants and 14 service centers worldwide. Since 2022, TUBACEX IBF Kazakhstan has been successfully operating in Atyrau, specializing in the production of pipeline connectors and actively participating in production localization processes.

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13.06.2025, 09:26 45141

Growth of Investment in Industry: Implementation of Presidential Directives on Industrial Development

President Kassym-Jomart Tokayev, in his Address to the Nation titled "The Economic Course of a Fair Kazakhstan," emphasized the priority of accelerated industrial development and the creation of high-value-added clusters. In accordance with the instructions of the Head of State, the Government is taking measures aimed at increasing added value and forming a sustainable production base, primeminister.kz reports.

The key areas include industrial development, modernization of production, support for the construction and housing sectors, as well as the efficient exploitation of natural resources.

Investment in Mechanical Engineering

Mechanical engineering plays an important role in the development of the economy. Today, more than 4,000 enterprises operate in Kazakhstan, including 66 large, 105 medium, and 3,998 small businesses. Major industrial centers and specialized productions are located throughout the country.

As part of the Comprehensive Plan for the Development of the Mechanical Engineering Industry for 2024-2028, measures are provided for the modernization, expansion of existing and creation of new productions, as well as ensuring priority and affordable financing for SMEs.

Measures to attract investment in the industry have been strengthened. According to the Ministry of Industry and Construction, in 2023, 115 billion tenge of capital investment was attracted to mechanical engineering. In 2024, this figure more than doubled and reached 282 billion tenge. In the first quarter of 2025, the volume of attracted investment reached 55 billion tenge, compared to 33 billion tenge during the same period in 2024.

The attraction of investment and an active policy of production localization provide prerequisites for the sustainable development of Kazakhstan’s automotive industry. Thus, in 2025, an increase in vehicle production to 149,000 units is expected.

Growth is supported by the implementation of several major projects in the industry. One significant facility is the multi-brand plant in Almaty - Astana Motors Manufacturing Kazakhstan, where it is planned to produce vehicles of the CHANGAN, GREAT WALL MOTOR (under the Haval and Tank brands), and CHERY marques. The investment volume for the enterprise is 202 billion tenge, and its projected capacity is 120,000 vehicles per year. More than 3,600 new jobs will be created. The plant will act as a driver for the development of related industries, including component production.

In addition, a project for the construction of the KIA Kazakhstan plant is being implemented in Kostanay. After commissioning, the enterprise will produce 70,000 vehicles per year and provide 1,500 jobs. The total investment in the project will amount to 90 billion tenge.

Following these projects, the production of car seats "Almaty Autoparts Production" has already been launched in the Almaty industrial zone. The investment in the first phase amounts to 4 billion tenge, and the enterprise’s capacity is 100,000 seat sets per year. The products are used in the assembly of the Hyundai Tucson and will soon be used for the Hyundai Santa Fe, and will also be supplied to the KIA and Astana Motors plants.

The development of the automotive industry is part of the industrial development strategy being implemented by the Government on behalf of the President. In order to create high-tech clusters and support related sectors, a pool of 17 investment projects has been formed, 9 of which totaling 6 trillion tenge are being supervised by the Ministry of Industry and Construction.

Other segments of mechanical engineering are also showing investment growth:

bearing and valve manufacturing - investment growth of 49.8%, from 21.1 to 31.7 billion tenge;
computers, electronics, and optical equipment - growth of 51.8%, due to the expansion of household electronics production at Silk Road Electronics and investments in instrumentation;
repair and installation of machinery and equipment - increase of 11.2%;
electrical equipment manufacturing - growth of 9% due to investments in transformers and cable-conductor products.

Mechanical engineering and the automotive industry are becoming some of the priority areas for Kazakhstan’s economic development. Increasing the share of local production, supporting related industries, and attracting large investors are forming a sustainable industrial foundation for long-term growth.

New Projects for the Development of the Chemical Industry

Kazakhstan’s chemical industry represents a developing segment of the industrial sector. The country produces more than 240 types of chemical products in various areas, with agrochemicals occupying a key position. The agrochemical sector accounts for 22.5% of the total volume of production and serves as the main growth driver for the entire industry. This is due to the increase in global demand for agricultural products, caused by population growth, food security concerns, and the need to intensify agriculture.

From 2019 to 2024, 1.7 trillion tenge in investments-mostly private-was made into the chemical industry. Since the beginning of 2025, investment in the sector has amounted to 50.7 billion tenge, including 2.6 billion from public funds and 48.1 billion from private sources. This indicates growing trust and interest from investors.

There are 1,093 enterprises operating in the chemical industry, of which 12 are large, 21 are medium, and 1,060 are small enterprises-demonstrating the dominance of small producers and the potential for consolidation and modernization.

As part of the President’s Address to the Nation, the implementation of major production facilities has begun, such as the urea plant - LLP "KazAzot Prime" and the potassium fertilizer plant - PC "QazaqKalium Ltd."

Projects for the development of potash and phosphorite deposits are actively being implemented. Key investors include SRPM (Chelkar deposit in West Kazakhstan Region). In the field of phosphorites - LLP "Eurochem-Karatau" (NPK), LLP "Sozak-Phosphate," and LLP "Kazphosphate."

In 2024, Kazakhstan exported 205 types of chemical goods. The main importer countries of Kazakhstani chemical products were China, Russia, and Vietnam.

The sector has a multiplier effect on the economy-it is closely integrated with the mining and metallurgy complex, the production of acids, catalysts, paints and varnishes, chemical reagents, and fertilizers. Mutual support between these sectors enhances industrial cooperation and improves the quality of end products.

Modernization of the Mining and Metallurgical Complex and Control Maps

One of the key areas is ensuring the technical sustainability and modernization of the largest enterprises of the mining and metallurgical complex (MMC). A list of enterprises having a significant impact on socio-economic development has been formed. It includes 24 ferrous and non-ferrous metallurgy facilities, each employing an average of more than 500 workers. In addition, 26 enterprises engaged in the extraction of metallic ores with over 250 employees each have also been included.

For the purpose of systematic monitoring, special control maps have been developed. These cover the technical condition, modernization and expansion of production, as well as fire safety, industrial safety, labor protection, and environmental protection.

These maps have been sent to relevant government bodies, and the data collected already serves as the basis for decision-making on the modernization of the industry.

Construction and Housing Policy: Digitalization, Affordable Housing, and Infrastructure Modernization

A top priority in the development of the construction sector is the creation of a Unified Digital Ecosystem that covers all stages from urban planning to commissioning of facilities. Its launch will improve efficiency and transparency in the sector, as well as simplify interaction between developers and government agencies. The new portal will operate on a "one-stop shop" principle, ensuring seamless transitions between systems through the egov.kz platform. This approach will allow users to navigate between systems without the need for repeated logins and to receive design and expert review services in one place.

In addition, work is underway to improve housing policy. The main focus is on providing housing to socially vulnerable groups, including large families, low-income citizens, and rural residents. One of the key tools is the Nauryz mortgage program, launched to expand access to housing. It offers a preferential interest rate of 7% for socially vulnerable groups and 9% for all others. Eligibility requires that the applicant and their family members have not owned housing in the past five years. The program applies to both primary and secondary housing markets, with the government subsidizing the interest paid to Otbasy Bank while the funds themselves are attracted on market terms.

As of June 1, 2025, 11,324 loans totaling 297.5 billion tenge had been issued under the Nauryz program. This marked an important step in addressing the housing needs of thousands of Kazakhstani families, especially large and low-income ones.

Additionally, the Baqytty Otbasy program (formatted as 2-10-20) provides loans at 2% interest for up to 20 years with a minimum down payment of 10%. Between 2019 and 2024, this program enabled 7,043 large families to acquire housing. Another 23,152 families received rental housing without the right of purchase. In 2025, the plan includes providing 1,028 large families with rental apartments and issuing 390 new mortgage loans.

The state housing and utilities development program Nurly Zher for 2020-2025 has served as the foundation for a systematic approach to resolving housing issues. The document establishes principles for targeted assistance based on citizens' social status and income levels, which made it possible to build a "housing accessibility ladder." It also envisions the development of the private rental housing institution using REIT (Real Estate Investment Trust) mechanisms. This will help expand private capital participation in housing construction and increase the supply of affordable housing.

Since 2020, under the Nurly Zher program and since 2023 under the Housing and Utilities Infrastructure Development Concept for 2023-2029-and in accordance with the Procedure for Carrying Out Capital Repairs of Common Property of Condominium Facilities-capital repairs of common property in multi-apartment residential buildings (MARBs) have been conducted.

A total of 45.6 billion tenge was allocated from the republican budget alone to repair 1,018 buildings. In total, since 2020, 2,055 MARBs have been repaired. In 2023, 73 buildings were repaired at a cost of 2.4 billion tenge, and in 2024, 233 buildings were repaired at a cost of 13.7 billion tenge. For 2025, local executive bodies have submitted applications to repair 363 MARBs, including the replacement of 248 elevators.

Special attention is given to providing housing in single-industry towns, district centers, and rural areas. Programs such as Otau, Asyl Meken, and Nauryz are being implemented for this purpose. In particular, the Asyl Meken program, launched in pilot mode in 2024, allows rural residents to purchase ready-built housing or build new homes on preferential terms. These initiatives also allow the purchase of housing in the secondary market, which is especially relevant for regions with limited new construction.

To improve urban planning quality and create a modern living environment, the Ministry has developed a methodological document titled "Standard for Comprehensive Urban Development." It envisions the introduction of unified approaches to the planning of residential areas, development of social and engineering infrastructure, and the creation of a comfortable urban environment.

The comprehensive implementation of these measures not only meets the population’s housing needs but also stimulates the development of the construction sector, promotes employment growth, and strengthens regional infrastructure.

Geology: Strategic Exploration of Mineral Resources

Geological exploration of Kazakhstan’s territory continues. According to the instruction of the Head of State, by the end of 2026, the geological and geophysical coverage of the country is planned to reach 2.2 million square kilometers. As of 2024, the coverage area reached 2,014.4 thousand square kilometers.

As a result of the work carried out in 2024, 38 sites with high potential for the extraction of solid minerals and hydrocarbons were discovered. For the completed projects of the past year, the total mapped area amounted to 104.4 thousand square kilometers. The total funding for this work for 2024-2026 is 22.8 billion tenge, of which 7.6 billion tenge is allocated for 2025 and 7.8 billion tenge for 2026.

In 2025, regional-scale 1:200,000 projects are being implemented, including:

deep geological mapping - 14 sites,
geological-mineragenic mapping - 7 sites,
additional hydrogeological studies - 19 sites.

The development of the mineral resource base is actively supported by private investment. Between 2018 and 2024, approximately 424 billion tenge was invested in geological exploration of solid minerals. In 2024 alone, investment volume reached 99.1 billion tenge, and in 2025, it is projected to grow to 106 billion tenge.

Under current regulations, individuals may carry out geological exploration under a simplified three-year license. The licensing system involves a one-time fee to the state-a signing bonus of 50 MCI-specific minimum work requirements, and no exclusive rights to the site. Geological or geophysical surveys, as well as exploration and assessment of groundwater, are permitted. The geological data remains the property of the subsoil user, with mandatory reporting to the Geology Committee of the Ministry of Industry and Construction. According to legislation, the confidentiality period for the data is five years.

From 2019 to 2024, 306 licenses were issued for geological exploration, 55 of which were granted in 2024.

In short, state and private initiatives in the field of geological exploration are forming a solid foundation for Kazakhstan's long-term economic growth, the development of the mining industry, and the expansion of the country’s mineral resource potential.

At the same time, the issue of staffing the sector is under constant supervision. Active efforts are underway to promote the profession of geologist. The departmental award "Honored Geologist" has deservedly been elevated to the status of a state award.

To attract schoolchildren to geology, the Zhas Geolog Corporate Foundation is active. The annual field olympiad "Young Geologist" has become a true training ground for future specialists in the geological field. The Zhas Geolog Foundation actively cooperates with all regions and works on developing the youth geologist movement for participation in national gatherings and international competitions.

Workforce Training for Industrialization

In the context of technological transformation and accelerated industrialization, the training of personnel capable of supporting the growth of high-tech industries is gaining particular relevance. For this purpose, Kazakhstan is forming a new system of professional education and skills development.

In 2025, eight new professions are to be introduced, including 3D printing engineer and robotic painting systems operator. Pilot implementation will take place in Almaty and Kostanay. In parallel, 60 professional standards are being developed using artificial intelligence, covering 336 professions across eight industries, including mechanical engineering.

To enhance the qualifications of engineering and technical personnel, an internship program is being introduced at foreign enterprises with 50% co-financing from the republican budget and 50% from the enterprises themselves. This facilitates the adoption and adaptation of advanced practices to Kazakhstan’s conditions.

Programs are also being developed to provide affordable housing for attracting and retaining professionals in the regions. Under a corporate program with Otbasy Bank, 122 enterprise employees received housing over the past two years, improving social infrastructure and the appeal of jobs.

To address the shortage of skilled workers in Kazakhstan’s chemical industry, specific measures are being implemented. For instance, in universities such as Satbayev University, KazNU, KazNITU, and in colleges like Taraz Chemical and Technological College, the number of state educational grants for training specialists in the chemical sector has been increased.

Dual education programs have been introduced in 536 colleges across the country in cooperation with industrial enterprises such as Kazphosphate LLP, KazAzot JSC, and Talas Investment Company LLP. Under these programs, students undergo internships with guaranteed employment upon graduation.

In addition, some enterprises cover the costs of training their specialists. For example, Talas Investment Company LLP has already employed 240 university and college graduates, of whom 150 were trained at the company’s expense. Training centers are being established at factory sites, including Kazphosphate, for training and retraining operators and technologists. Under the Bolashak program and direct international partnerships, engineers are being trained in high-tech sectors, including automation, chemical safety, and environmental monitoring. All these measures aim to build a sustainable workforce capable of supporting growth and modernization in the chemical sector.

There is also an increase in the number of university graduates in geology-related fields. While 1,224 specialists graduated in 2022, more than 3,000 completed degrees in mining and geology by 2024. Notably, 98% of graduates are employed in their field. Additionally, 3,000 jobs have been created under the state geological exploration projects.

Geological exploration is being implemented with stable momentum. The discovery of new promising sites confirms the high return on investment in state geological exploration. As a result of the work carried out, geological maps are being updated and refined, potential deposits identified, investment attractiveness improved, geological exploration operations optimized, and risks reduced.

This information may not be reproduced without reference to Kazakhstan Today. Copyright of materials of News Agency Kazakhstan Today.

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