01.11.2024, 12:03 140011
Olzhas Bektenov and GE HealthCare head discuss project implementation on creation of medical equipment production in Kazakhstan
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Prime Minister Olzhas Bektenov within the framework of the Kazakhstan Round Table on Global Investments held a meeting with the Regional President of GE HealthCare Costas Deligiannis. The progress of implementation of the previously signed agreement on the organisation of production of high-tech diagnostic medical equipment GE HealthCare in Kazakhstan was considered, primeminister.kz reports.
GE HealthCare, a subsidiary of the American transnational conglomerate General Electric, is one of the world leaders in the production of medical equipment, pharmaceuticals, as well as the implementation of digital solutions and data analytics systems.
The participants of the meeting discussed issues of localisation of production of advanced medical diagnostic equipment, plans to create a production site and the National Archive of Clinical Images in Kazakhstan. At the first stage of localisation it is planned to produce ultrasonic diagnostic devices and computer tomographs of the latest generation with further expansion of the range of equipment. The centralised archive of medical images will allow to create a Unified Digital Health Space, which will ensure security and proper storage of patients' medical data.
Olzhas Bektenov emphasised that one of the priorities of the Government is the creation of high-quality, accessible and modern medical infrastructure. The importance of introducing digital solutions in healthcare, modernisation and quality equipment of hospitals, training of qualified personnel was highlighted.
In turn, Kostas Deligiannis informed about the company's plans to expand its presence in the Kazakhstan market. Medical institutions of the country, including leading clinics, already uses more than 3 thousand units of GE HealthCare equipment. More than one hundred mammographs have been installed in the regions within the framework of the state oncological programme. At GE HealthCare sites 6 thousand Kazakhstani specialists have been trained.
At the end of the meeting, the parties confirmed their intention to cooperate closely in improving the healthcare system of Kazakhstan.
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01.11.2024, 15:05 139766
Olzhas Bektenov and Li Xuechun, Head of Fufeng Group, discuss new project on deep processing of Kazakhstani agricultural products
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Prime Minister of Kazakhstan Olzhas Bektenov discussed with the Chairman of the Board of the Chinese company Fufeng Group Li Xuechun cooperation in the field of agro-industrial complex and coal chemistry. Attention is paid to the issues of long-term investment cooperation with emphasis on deep processing, primeminister.kz reports.
Fufeng Group Company Limited is a world leader in the bio-fermentation industry, specialising in the production of amino acids and their derivatives, as well as research and development in this field. The company is the largest producer of monosodium glutamate and xanthan gum in the world.
Fufeng Group's proposal to create a vertically integrated industrial park in Kazakhstan for deep processing of corn, including starch sugar and amino acid fermentation plants, as well as a coal-fired thermal power plant and a wastewater treatment plant, was discussed.
Deep processing of wheat and corn allows to obtain products with high added value such as starch, amino acids, monosodium glutamate and xanthan gum, the price of which is 10-15 times higher than the cost of raw materials. The project will create 1,000 jobs and investments will amount to about $300-350 million.
Li Xuechun stressed the company's readiness to participate in the process of growing crops, provide quality fertilisers and share experience in modern agricultural technologies with Kazakh specialists. The investor also expressed interest in co-operation in the coal-chemical sector.
The Head of the Government of Kazakhstan noted the importance of investment in the agro-industrial complex as part of achieving the goal set by the Head of State to ensure economic growth.
Kazakhstan seeks to increase the production of products with high added value, and the construction of complexes for deep processing of grain is a priority. This is a strategic direction that allows us to diversify the economy and expand export opportunities. We have everything we need for this: infrastructure, raw material resources and government support measures. The project will be a good example of value-added creation in the agro-industrial sector and introduction of advanced technologies. The Government will provide the necessary support," Olzhas Bektenov said.
The emergence of such a major player in the Kazakh market as Fufeng Group will contribute to the diversification of agricultural crops, especially in the northern grain-growing regions. Planned by the company conclusion offtake contracts with Kazakhstani farmers will provide guarantees for effective co-operation.
Following the results of the meeting Prime Minister instructed the Ministries of Agriculture, Industry and Construction to urgently start preparing an investment agreement with Fufeng Group.
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01.11.2024, 10:01 140266
Olzhas Bektenov discusses plans for further localisation of railway engineering in Kazakhstan with CEOs of US and French companies Alstom and Wabtec
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Prime Minister Olzhas Bektenov within the framework of the Kazakhstan Round Table on Global Investments met with heads of major international companies - world leaders in the railway engineering industry, primeminister.kz reports.
With the President of the French company Alstom for Africa, Middle East and Central Asia Andrew Deleoni discussed plans for further localisation of production and launch of new investment projects.
Alstom is a key investor in the country's railway industry. For 10 years the company has invested about €120 million in construction, technology transfer and training of Kazakhstani specialists. More than 1 thousand people have been provided with jobs. Seven production bases have been opened, including "Electrovoz Kurastyru Zauyty" in Astana, where passenger and heavy-duty electric locomotives are produced.
The French company has started construction of four maintenance centres for electric locomotives, creating over 450 new jobs. The total amount of the project is €50 million, and the opening of the first service centre in Shu is scheduled for early 2025.
The plant has successfully won its niche in the Kazakhstan and CIS markets. The demand for the manufactured products has increased taking into account the growth of container transportations from East to West. Today, the enterprise occupies about 30% of the railway engineering sector of the Republic of Kazakhstan in terms of production volumes.
The head of Alstom Andrew Deleoni declared about support of investment policy of Kazakhstan and emphasised that created in the country conditions for business promote expansion of production capacities. Attention was also paid to the prospects of expanding cooperation aimed at developing the industrial and transport and logistics potential of Kazakhstan, including discussion of partnership with KTZ.
During the meeting with Rafael Santana, President of the American company Wabtec, the issues of introducing ‘green’ technologies in the railway industry were discussed. The company is a long-term investment partner of Kazakhstan and is developing localisation of locomotive production in the country.
Locomotive Kurastyru Zauyty is a leader in transport engineering in Central Asia. The plant produces freight, passenger and shunting locomotives, which not only meet the needs of the domestic market, but are also exported to such countries as Azerbaijan, Tajikistan, Turkmenistan, Kyrgyzstan, Mongolia and others. Over 800 jobs have been created at the plant. Employees undergo on-the-job training in the USA with subsequent participation in regional and global projects. In June this year, a new engineering centre was opened in Astana, where work is underway on the production of "green" locomotives using alternative energy sources. In total, the company intends to invest about $200m in the development of new products using alternative fuels over the next 10 years, starting in 2027.
The Head of State in his speech at the meeting of the Foreign Investors Council noted Kazakhstan's focus on strengthening the country's position as a key Eurasian transit hub. Special attention is paid to the development of the transport and logistics sector, infrastructure renewal and localisation of machine building in our country. We highly appreciate business initiatives aimed at localising production and are ready to support such companies. The implementation of such projects will allow Kazakhstan to become a hub for the production and modernisation of locomotives and integrate into the global supply chain," Olzhas Bektenov said.
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29.10.2024, 21:27 141911
Agricultural machinery production is forecast to grow to 300 billion tenge in 2025
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9 out of 10 purchased tractors and combines are assembled in Kazakhstan. This was reported at the Government session by the President of the Union of Industrial Investors Kairat Yelamanov, primeminister.kz reports.
According to him, the annual output of agricultural machinery is 263 billion tenge, forecasted to grow to 300 billion tenge in 2025.
The agricultural machinery industry produces tractors and combine harvesters at 8 enterprises, which already fully meet the annual demand of farmers for this equipment. More than 20 more enterprises are engaged in production of trailed and mounted agricultural machinery and equipment. Import dependence in this area is annually decreasing. As of today, welding, cutting, cutting, bending and painting operations are performed for each model of tractors, combines, as well as for mounted and trailed agricultural machinery. Welding and colouring of tractor cabs, as well as manufacturing of plastic parts for body elements of energy-intensive tractors have been mastered ahead of schedule. Next year, the manufacturers plan to master the production of grain hoppers, inclined chambers, choppers and combine harvester cabs.
The country's largest agricultural machinery localisation centre in Kostanai annually produces 25,000 units, assemblies, components and spare parts for agricultural machinery and automotive industry.
The decision to subsidise farmers when purchasing domestic agricultural machinery this year is already achieving an effect: the interest of foreign manufacturers in localisation will have a positive impact on the growth of production and increase the range of agricultural machinery. Now we are conducting substantive negotiations with foreign manufacturers on localisation of previously imported equipment at the existing sites. This will increase both production volume and jobs in 2025. It is planned to localise AMAZONE sowing machinery, ZOOMLION tractors, SAMPO combines.
Next year, it is planned to allocate 200 billion tenge for preferential leasing of agricultural machinery for farmers at 4-5%. If even half of the funds were allocated in Kazagrofinance JSC from January, before the beginning of sowing works, and the second half in June, before the beginning of harvesting works, then two industries in the country - agro-industrial complex and agricultural machinery - would be guaranteed to work for the development of the country's economy," Kairat Yelamanov said.
The issue of tractor exports remains important, he said. However, the problem is the non-integrated systems of electronic passports of self-propelled machines between Kazakhstan and Russia. Data exchange is already taking place with Belarus.
Another, no less promising area of industry is the production of household appliances. The main enterprises of the new industry are located in the cities of Saran and Almaty. This year about 200 thousand units of household appliances have been produced at the capacities of three enterprises. It is planned to increase the volumes by the end of the year.
This year's amendments to the Tax Code on VAT allowed us to establish a clear procedure for the sale of products along the entire chain from the manufacturer to the end customer. We managed not only to attract the world's leading companies for production, but also to reduce the price for buyers of equipment. At the moment we have already mastered operations on moulding of plastic parts of TV sets and water heaters, billetting, welding, enamelling and painting of parts of ovens, washing machines, cookers and hoods, as well as manufacturing of packaging," Kairat Yelamanov said.
In the coming years, it is planned to master the production of printed circuit board and stamping of metal products.
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29.10.2024, 15:39 143761
Prime Minister instructs to strengthen domestic machine building support and increase shares of Kazakhstani products in EAEU market
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During the Government session chaired by Prime Minister Olzhas Bektenov considered measures to support Kazakh manufacturers to meet the needs of the domestic market and increase export potential for the development of mechanical engineering, primeminister.kz reports.
Today the market capacity of machine-building products of Kazakhstan is estimated at $31.6 billion, of which 16% falls on the share of domestic production.
The Prime Minister noted the significant potential for growth of the machine-building industry and significant prospects for export development.
We should adhere to economic patriotism to actively buy our Kazakhstani products, promote them in foreign markets," Olzhas Bektenov emphasised.
At the moment, the total volume of imports of engineering products in the market of the Eurasian Union is about $141 billion. Kazakhstan already exports batteries, transformers, cables, locomotives, cars and buses - there are opportunities to increase the share of domestic production in the EAEU market.
Head of the Government drew attention to the situation in a number of sectors of machine building and voiced measures to help solve pressing issues. For example, in the agricultural sector, with the wear of machinery at 76%, the actual rate of renewal is 5%, while the norm is 6-8%. In order to support domestic producers of agricultural machinery, subsidies for imported analogues were excluded this year. In addition, a differentiated approach to subsidising the leasing interest rate has been introduced, whereby the interest rate for local producers is significantly lower. These measures help deepen localisation and accelerate the modernisation of the fleet with domestic equipment.
The level of depreciation of railway equipment is estimated at 55%. In 2024, a mechanism of affordable leasing financing was launched, thanks to which production increased 1.5 times. Olzhas Bektenov noted the need to meet the needs of carriers in full, first of all, at the expense of domestically produced equipment. Head of the Government stressed that it is important to stimulate the launch of new projects for the production of both finished products and components and spare parts.
To support domestic producers Prime Minister instructed the Ministries of Industry and Finance to strengthen control over the fulfilment by contractors of the requirements for domestic share in works and services. Today, despite the removal of a number of machine-building goods from state procurement, facts of purchase of imported products, hidden in the list of purchases, are recorded.
Also, the Samruk-Kazyna Fund, one of the largest consumers of products of domestic machine-builders, has set a task to increase the share of local content in the holding's purchases up to 89 per cent by the end of 2025. Olzhas Bektenov instructed to more actively use the mechanism offtake and long-term contracts, providing for counter obligations of business in order to ensure a multiplier effect for economic growth.
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23.10.2024, 14:13 139411
Kazakhstan has possibility of increasing grain supplies to Asian countries
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Deputy Minister of Trade and Integration Kairat Torebayev reported on Kazakhstan's export potential in cereals at the Government session chaired by Prime Minister Olzhas Bektenov, primeminister.kz reports.
He said that Kazakhstan's export potential for cereals is estimated at 12 million tonnes, of which 7-7.5 million tonnes is wheat, barley - 1.4 million tonnes, corn - 300 thousand tonnes. For oilseeds, the potential is estimated at more than 1 million tonnes.
Kazakhstan will continue deliveries to the markets of Central Asia and Afghanistan, it is about 4.2 million tonnes. In general for cereals exports to China amounted to 1.43 million tonnes in 2023, showing growth of 5.5 times year-on-year," Kairat Torebayev said.
Deputy Minister also noted that wheat exports to China increased significantly, reaching 538.8 thousand tonnes in 2023, which is almost 15 times higher than the previous year.
This demonstrates the possibility of increasing supplies to China and Asian countries to 1.6 million tonnes of wheat. It is important to work through the issue of delays at the border due to the requirements of Chinese authorities, as well as complex conditions such as licences and quotas for imports of Kazakh grain in China," Kairat Torebayev added.
Deputy Minister also noted that with increasing global demand and decreasing harvests in a number of countries, the market of the European Union countries, such as Italy, Latvia, Spain, is interesting.
To Turkey and Middle East countries the export potential is almost 1 million tonnes of wheat.
It is important to restore supplies to the Iranian market, for barley we are now seeing dynamics, issues of trade financing and logistics will be worked out. Work will be intensified to promote the brand of Kazakh wheat in new markets such as: Pakistan, Indonesia, Brazil, Malaysia, where import growth is predicted," Kairat Torebayev emphasised.
The Ministry together with the Food Corporation prepared country offers (offers) with indication of logistic routes and export prices. Negotiations were held and preliminary agreements were reached on the markets of Armenia - 600 thousand tonnes, Italy - 1 million tonnes. Negotiations on exports to North African countries are underway - 200 thousand tonnes.
In general, given the policy to increase the level of complexity of exported products, it is important to pay attention to grain processing. This in the long term can be a solution to many export problems," Kairat Torebayev explained.
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23.10.2024, 13:01 139001
Grain transportation rates to remain at 1.2-1.3 million tonnes monthly until the year end – Ministry of Transport
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Transport Minister Marat Karabaev reported on the readiness for the transport of grain of the new harvest at the Government session, primeminister.kz reports.
According to him, since September began increased transportation of grain cargoes by railway transport. Transported 1.05 million tonnes of grain with an increase of 24% compared to last year, of which 867,000 tonnes were exported, and 186,000 tonnes - within the country.
There was a 28% growth in traditional directions of Central Asian countries. Transportation in the direction of Iran through the port of Aktau resumed, the volume for September was 140 thousand tonnes.
For October we forecast grain transportation in accordance with the needs at the level of 1.25 million tonnes, which is 26% more than in October last year. Until the end of the year, the rate of increased grain transportation in the volume of 1.2-1.3 million tonnes will be maintained on a monthly basis. There are reserves of throughput capacities in export directions of Central Asia," the Minister said.
11.8 thousand grain carriers, including 6 thousand suitable for export, 16 thousand covered wagons for the transport of milling products, as well as for the transport of grain to China, including under export contracts of Prodkorporatsiya are involved in transportations. There is a sufficient fleet of traction resources - the national operator has 1,621 locomotives. In the current year, 185 units were purchased, including 20 shunting locomotives.
There is a special headquarters on the site of the Ministry of Transport, where prompt response measures are taken.
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23.10.2024, 12:57 139181
Ministry of Agriculture: record sugar beet harvest expected in 2024
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The results of the harvesting campaign were considered at the Government session chaired by Prime Minister Olzhas Bektenov. The total harvesting area of agricultural crops this year totalled 23.3 million hectares, of which 16.7 million hectares are occupied by cereals and leguminous crops, primeminister.kz reports.
Minister of Agriculture Aidarbek Saparov noted that the harvesting of grain crops in the country has been completed, harvesting of maize for grain continues. Harvested 16.6 million hectares of grain and leguminous crops, which is 99.7% of the total harvested area. With an average yield of 16 c/ha, 26.5 million tonnes of grain have been threshed, up from 17.1 million tonnes last year.
High yields have been achieved due to favourable weather conditions and, of course, the results of proper application of agro-technologies, namely through the use of quality seeds, mineral fertilizers and effective plant protection," the minister said.
In the southern regions, high yields are observed in Kyzylorda and Turkestan regions, as well as in Zhetisu. Among the main grain-growing regions, the highest figures are in North Kazakhstan region: the average yield was 18.6 c/ha. In Akmola region the yield was 14.1 c/ha, and in Kostanay region - 14 c/ha.
In these regions, even medium-sized farms, strictly observing agrotechnical measures, received above-average yields. For example, in Zhambyl region of North Kazakhstan region the farm Ak-Zher 210 LLP obtained wheat yield of 42.5 c/ha, in Kostanay region Sarykol Agro LLP - 40 c/ha, and in Akmola region Svobodnoye LLP - 35 c/ha.
However, in the same regions there are farms that do not follow agro-technologies: they use poor quality seeds, do not apply fertilisers and poorly apply plant protection products, relying only on good weather conditions. As a result, their indicators were much lower than the average for their region. For example, in Kostanay region, Agro Zher LLP in Mendykara district got 5 c/ha of wheat, and in Akmola region, Donskoy Agro LLP in Zharkainsky district got 5.4 c/ha.
There are such cases in all regions. In this regard, I ask regional akims to pay special attention to explanatory work with farms, especially with those who do not follow the technology and rely only on the weather. Although the Government has created all conditions, starting from preferential financing and ending with diesel fuel. In addition, it is important to properly inform agricultural producers about counter obligations, which are introduced from 1 January 2025 and are aimed at increasing the volume of gross agricultural output," the Minister said.
Taking into account the completion of grain harvesting, agricultural machinery has been redeployed to the harvesting of oilseeds. Harvesting has been carried out on the area of 1.9 million hectares, which is 66% of the harvested area, gross harvest of oilseeds is 2.1 million tonnes with an average yield of 10.7 centners per hectare. The gross harvest of potatoes was 2.8 million tonnes with a yield of 236 c/ha. Vegetable crops were harvested 3.8 million tonnes with a yield of 309 c/ha. A record sugar beet harvest is expected this year. The crop has been harvested from an area of 10 thousand hectares, or 40%, with a yield of 540 c/ha; 549 thousand tonnes have been harvested. 432 thousand tonnes of sugar beet were delivered for processing. Rice harvesting was completed in full; yield was 57 c/ha, 562 thousand tonnes were harvested. Cotton was harvested from an area of 74 thousand hectares, or 69%, with a yield of 25 c/ha; 185 thousand tonnes were harvested.
Due to observance of agro-technologies on cotton, in particular due to use of modern systems of drip irrigation, the farm of "Turkistan makta agroөnerkәсіptіk keshenі" LLP in Turkestan region received high yield of 60 centners/ha, which is 2.5 times higher than the average yield in the region. Such experience should be massively spread among all cotton growers of Turkestan region.
The issue of preservation of new crop remains extremely important. The total storage capacity of grain in the republic is 30 million tonnes. Acceptance of grain to bread-receiving enterprises continues; 57% of the accepted grain corresponds to the 3rd class. Last year the share was 35 per cent.
Akimats of regions need to ensure round-the-clock acceptance of grain due to the need to bring grain to them for delivery to Prodkorporatsiya, export shipments and movement to other regions. All necessary conditions have been created for the work of elevators in round-the-clock mode. Thus, along with 362 thousand tonnes of discounted diesel fuel allocated for harvesting, 68 thousand tonnes of discounted diesel fuel have been additionally allocated for grain drying. In addition, 22 thousand tonnes of gas have been allocated for grain drying units operating on liquefied gas," Aidarbek Saparov said.
Prodkorporatsiya set purchase prices for wheat under the forward purchase programme depending on quality indicators. Taking into account the prolongation of last year's obligations and the terms of forward purchase of the current year, about 1.2 million tonnes of grain are expected to be delivered to the resources of Prodkorporatsiya. At the moment, only 239 thousand tonnes or 24% have been received. Akimats of regions should ensure control over timely delivery of grain to Prodkorporatsiya until 1 November.
The amount of funds allocated this year allowed to purchase all necessary material and commodity values for harvesting. On the instructions of Prime Minister and based on the requests of agrarians, the financing of applications for 2025 will begin in December 2024. This will ensure timely preparation for spring field work and will allow to start the new season without delays.
Given the high harvest, it is necessary to take effective measures for its marketing.
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22.10.2024, 20:38 167066
Kazakhstan to export domestic vehicles to Afghanistan
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Kazakhstan is to look into the possibility of exporting domestic vehicles to Afghanistan on the proposal of the Afghan side, Deputy Prime Minister Serik Zhumangarin said during the Kazakhstan-Afghanistan Business Forum, Kazinform News Agency correspondent reports.
There are plans to localize and open dealer centers to service vehicles in Afghanistan.
Another topical issue on the agenda of our cooperation is the implementation of joint projects in Afghanistan on geological exploration as well as extraction and processing of solid mineral resources, said Zhumangarin.
Kazakhstan held talks with ERG Exploration, Kazakhmys Barlau, Kazatomprom, engaged in a full cycle of geological exploration prospecting, discussing the realization of joint projects in extraction of copper, iron and gold.
Our country stands ready to share its competences and expertise and to send its exploration companies to create a sustainable mining sector in Afghanistan, said the Kazakh Deputy Prime Minister.
Earlier it was reported that the trade turnover between Kazakhstan and Afghanistan reached 330.7 million US dollars in 8 months of the present year, with Kazakhstani exports amounting to 316.5 million US dollars.
Flour and wheat account for over 80% of the total exports of Kazakhstan to Afghanistan. In its turn, Kazakhstan imports mineral waters, fruits and spices from Afghanistan. Kazakh Deputy Minister Tasszhurekov pointed out that the countries can increase the mutual trade turnover to up to 1 billion US dollars through a close cooperation between their businesses.
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