Government considers issues of machine building development and measures to support domestic production

At the Government session chaired by Prime Minister Olzhas Bektenov considered the development of mechanical engineering. On the situation in the industry reported the Minister of Industry and Construction Kanat Sharlapayev, with reports were made by representatives of industry associations such as the Union of Machine Builders Meiram Prshembayev and industrial investors Kairat Yelamanov, Kazakhstan Automobile Union Anar Makasheva, primeminister.kz reports.

According to the results of 2023, the share of mechanical engineering in the GDP structure reached 1.9%. There is an increase in production volume, positive dynamics of investment attraction. For 9 months of the current year, about 108.2 billion tenge was invested in Kazakh projects, which exceeds the volume for the same period last year by 2.2 times.

One of the key issues of the sector is modernisation of equipment. Prime Minister noted that in the machine building industry wear and tear of equipment reaches 40%. Only in the railway industry until 2030 is expected to decommission more than 800 worn-out passenger cars. According to the Union of Industrial Investors of Kazakhstan, about 76% of agricultural machinery needs renewal.

The head of the Government emphasised that in order to achieve the goals set by the President on diversification of the economy, it is necessary to actively use the potential of domestic machine building and introduce new technologies.

The need to introduce digital technologies at enterprises in accordance with global trends of robotisation and automation of production cycles was noted.

Today in the automotive industry is working on the formation of cluster production. This approach stimulates the development of related industries and opens up new opportunities and prospects for the entire sector.

About 50 enterprises operate in the oil and gas machine building industry. The volume of production reaches $160 million, while the volume of imports exceeds $1.6 billion. Prime Minister drew attention to the tenfold difference and the need to reduce the gap. The International Centre for Oil and Gas Machine Building has been established to assist in the creation of new domestic production facilities. Projects on localisation of products of such international companies as Honeywell, PetrolValves, Wika have already been successfully implemented. The Head of the Government noted the need to expand the powers of the Centre to guarantee the conclusion of long-term contracts of international operators with Kazakhstani enterprises.

Head of the Government instructed the Ministries of Industry, Finance, National Economy and Holding "Baiterek" to provide additional funding for projects in mechanical engineering within the framework of already approved financial and economic feasibility studies. Olzhas Bektenov emphasised that machine-building enterprises should be provided with loans at a preferential rate to renew fixed assets and launch production of new types of goods.

Also, the Ministry of Industry should keep constant monitoring of the implementation of projects in the automotive industry and promptly resolve emerging issues, to expand exports.