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.
Head of State stresses that it is industrialisation that should be the main driver of economic diversification. Accelerated development of the manufacturing sector, and first of all machine building, should be the locomotive in ensuring economic self-sufficiency of Kazakhstan. The state actively supports domestic manufacturers. We are facing important tasks to create a production cycle with a high share of localisation. In addition, in order to improve the efficiency of enterprises, it is necessary to carry out timely modernisation of production," Olzhas Bektenov stressed.
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.
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Olzhas Bektenov introduces new Deputy Minister - Minister of National Economy
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Prime Minister Olzhas Bektenov presented the staff of the Ministry of National Economy to the new head of the department Serik Zhumangarin, primeminister.kz reports.
Olzhas Bektenov thanked Nurlan Baibazarov for his work as Deputy Minister - Minister of National Economy and wished success in future activities.
During the presentation of Serik Zhumangarin, the Head of the Government said that the priority task of the department for the coming period is to fulfil the instructions of the Head of State to ensure dynamic economic growth. Today the economy demonstrates a steady growth trend. It has been instructed to strengthen work on structural changes in the economy, to improve the effectiveness of budget and tax policies and the level of forecasting of budget parameters.
In addition, the Ministry of National Economy needs to pursue a balanced policy of business support and a balanced policy of tariff regulation to ensure economic growth in priority sectors.
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Olzhas Bektenov familiarises himself with metallurgical development and heating season progress in Rudnyi city
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During his working trip to Kostanay region, Prime Minister Olzhas Bektenov visited Rudnyi city, where he familiarised himself with the development of ferrous metallurgy on the basis of Sokolovsko-Sarbai Mining and Processing Production Association (SSMPA), as well as the progress of the heating period on the example of Rudnyi CHPP, primeminister.kz reports.
Prime Minister was informed about the current results of Sokolovsko-Sarbai Mining and Processing Production Association and plans of ERG company for further development. Today SSMPA JSC is an iron ore giant of mining industry of Kazakhstan. Its production capacity reaches 35 million tonnes of ore, 9 million tonnes of concentrates and 8 million tonnes of pellets per year. In addition to domestic markets, products are exported to Russia and China, where over 9 million tonnes of commercial products worth over 371 billion tenge were shipped in the first 11 months of this year.
Here also General Director of ERG in Kazakhstan Serik Shakhajanov presented to the head of the Government the project on construction of the plant aimed at production of hot briquetted iron (HBI) with the degree of metallisation over 90%. The design capacity of the plant will be 2 million tonnes of HBI per year. The volume of investments exceeds 500 billion tenge and 1.1 thousand jobs will be created. The project is planned to be realised by the end of 2028.
A full-cycle metallurgical cluster is being gradually formed in the region. Prime Minister stressed that the project to build a plant for the production of hot-briquetted iron will be an important step to strengthen the industry and competitiveness of the state. Today also approved a major infrastructure project for the construction of the main gas pipeline from the territory of Aktobe region to the city of Kostanay, which will provide the plant with the necessary volume of gas. The Ministry of Energy together with the regional Akimat have been given instructions to facilitate the construction of the plant.
Olzhas Bektenov also visited Rudnenskaya CHPP, which is part of SSMPA. Vasily Novoselov, director of the enterprise, reported on the modernisation and operation of the power plant. Thus, in preparation for the autumn-winter period the main and auxiliary equipment was repaired. The necessary stock of fuel and materials was formed in the warehouse. In order to reduce the impact on the environment the project of automated system of emission monitoring on chimneys is being implemented, which allows to respond promptly to any changes in the technological process in a round-the-clock mode.
Here also the head of the Government was reported on the progress of the heating season in the region. Deputy Akim of the region Berik Tanzharikov reported that the unified electric power system works in normal mode. In total, there are 4 CHPPs and 3 boiler houses with installed capacity of over 100 Gcal/hour in the region. Over the past 3 years, due to the repair of equipment wear and tear of heat supply networks has been reduced from 57 to 45.7%.
Olzhas Bektenov stressed the importance of timely modernisation of utility infrastructure, which ensures uninterrupted operation of strategically important industrial facilities.
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Development of agro-industrial complex and production of agricultural machinery: Olzhas Bektenov checks fulfilment of Head of State's instructions in Kostanay region
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Prime Minister of Kazakhstan Olzhas Bektenov is on a working visit to Kostanay region. The key task was to monitor the progress of implementation of instructions of the Head of State, given in the Address to the people of the country "Fair Kazakhstan: law and order, economic growth, social optimism", primeminister.kz reports.
On the example of a number of enterprises of the agro-industrial complex, the head of the Government familiarised himself with the development of agriculture in the region, deepening of processing and the results of measures to support domestic producers.
This year about 175 billion tenge has been allocated to the development of agriculture in the region, which exceeded last year's figure by 1.7 times. Deputy Akim of Kostanay region Arman Abenov reported that 96 investment projects with the creation of more than 2 thousand jobs are planned to be implemented in the agro-industrial complex until 2027. The total amount of investments will amount to 232 billion tenge. At the same time, in order to develop livestock farming, work is underway on the construction of 6 dairy farms, one of which has already been put into operation. In poultry farming it is planned to launch 2 large poultry farms at a total cost of 60 billion tenge, as a result of which it is expected to increase poultry meat production by 62.5 thousand tonnes per year.
On the territory of Aruana 2010 LLP flour production enterprise the Prime Minister was presented a project on construction of a mill complex worth 3 billion tenge, aimed at increasing the volume of supplies to domestic and foreign markets. Today the enterprise provides production output up to 90 thousand tonnes per year. Expansion of the complex will allow to increase the volume of flour production almost 2 times to 170 thousand tonnes. More than 150 new jobs will be created.
Olzhas Bektenov stressed the need to step up the pace of work to increase the output of competitive agricultural products and deepen processing in accordance with the instruction of the Head of State to bring this indicator to 70%. Today Kazakhstan is among the 10 largest wheat and flour exporters in the world. The Akimat of the region has set a task to assist the Aruana-2010 enterprise in increasing the geography of markets for finished products, as well as working out the issue of improving logistics with the expansion of export routes.
On the example of enterprises of food industry the head of the Government familiarised himself with the implementation of measures of state support of domestic producers.
Prime Minister was informed about plans to modernise one of the largest producers of confectionery products Bayan Sulu JSC. Today the factory produces up to 85 thousand tonnes of products annually. The assortment includes more than 300 items, including waffles, marshmallows, marmalade, toffee, caramel, etc. The new complex Confectionery Capital worth more than 14 billion tenge will allow to produce additional 13 thousand tonnes of products per year, 260 new jobs will be created.
Olzhas Bektenov noted the need to strengthen the promotion of domestic brands abroad, including through digital solutions. Currently, Bayan Sulu products are exported to foreign markets in the CIS and Europe.
During the visit to the dairy plant of MILH LLP Prime Minister familiarised himself with the technological features of production. The enterprise produces up to 60 thousand tonnes of finished products per year. Launch of a new cheese production shop worth 7.2 billion tenge and capacity of up to 10 thousand tonnes will allow to produce up to 20 types of products corresponding in quality to world cheese brands. 35 jobs will be created.
Olzhas Bektenov stressed that in accordance with the order of the President, the Government is implementing a set of measures to support the agricultural sector, including by financing new projects in the direction of subsidies and loans to farmers.
On the basis of the enterprise AgromashHolding KZ Prime Minister was shown the results of work on deepening of localisation in the manufacturing industry. The largest manufacturer of agricultural machinery in Kazakhstan provides production of up to 1 thousand combines, 3 thousand tractors, 300 seeders and 200 platform pickers per year. The company co-operates with leading global manufacturers such as CLAAS, Gomselmash, St. Petersburg Tractor Plant, Lovol, AMAZONE, as well as Kazakhstani machine-building plants.
Olzhas Bektenov during the tour of the enterprise paid special attention to the need to increase the localisation of agricultural machinery production in order to support domestic producers. This is necessary for the renewal of the agro-industrial park.
The Government pays special attention to deepening localisation in the manufacturing industry and stands firmly on the position of economic patriotism, the main task of which is to support the domestic commodity producer. For this purpose, the Government has made appropriate amendments to the Rules for subsidising agricultural machinery. Thus, when purchasing domestically produced machinery, the interest rate is subsidised up to 6%. At the same time, the possibility of subsidising imported analogues of machinery produced in Kazakhstan is excluded. At the same time, domestic agricultural machine-building enterprises need not only to increase production volumes, but also to continue the process of modernisation of technical equipment, improving quality in accordance with advanced developments and market needs," Olzhas Bektenov stressed.
The Government has allocated over 100 billion tenge for the preferential leasing programme, which started in 2024. During the year, agrarians purchased 22,000 units of modern equipment, which accounted for 5.5% of the renewal of the agro-industrial fleet.
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Presidents of Kazakhstan, Guinea-Bissau visit AIFC
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Head of State Kassym-Jomart Tokayev and President of Guinea-Bissau Umaro Sissoco Embaló, who is paying an official visit to Kazakhstan, have visited the Astana International Financial Centre, Kazinform News Agency learned from the Akorda press service.
Renat Bekturov, the Governor of the AIFC, informed the guests about the AIFC’s structure and the areas of its activity. He said that investments, green and Islamic financing, as well as training personnel for financial sector could be priority areas of the two countries’ cooperation on the AIFC platform.
According to him, the volume of investments attracted through the AIFC has reached $14 billion, $6.7 billion of which are portfolio investments on the Astana International Exchange. More than 3,400 companies from 85 countries including six companies from the African continent have been registered at the AIFC.
The presidents of Kazakhstan and Guinea-Bissau were informed about activity of the AIFC Court - Central Asia’s first judicial system based on the norms and principles of case law, as well as about operation of the International Arbitration Centre and Green Finance Centre. The heads of state also got familiarized with the activity of Astana Financial Services Authority (AFSA) and the peculiarities of the AIFC’s regulatory framework.
Umaro Sissoco Embaló arrived in Kazakhstan on December 18 for an official visit at the invitation of Kassym-Jomart Tokayev.
The two presidents adopted a joint statement, after which they held a briefing for mass media.
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Olzhas Bektenov: Time zone decision based on very deep scientific research
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During his working trip to Kostanay region Prime Minister of Kazakhstan Olzhas Bektenov visited the plants, where meetings with the management and staff of the enterprises were held. Prospects of socio-economic development of the region, building human resources capacity, solving infrastructural problems were discussed, primeminister.kz reports.
Attention was also paid to the issue of a single time zone. According to the speakers, the issue of introducing a single time zone was previously raised by the residents of Kostanay region, as the previous time zone did not correspond to the natural time. Thus, the decision to switch to a single time zone facilitated daily life processes. In this regard, the participants of the meeting spoke in favour of a single time zone.
Prime Minister Olzhas Bektenov in his conversation with residents drew attention to the fact that the positive impact of natural time on the health and well-being of citizens has been scientifically proven. In 2017, a group of American scientists was awarded the Nobel Prize for the study of human circadian rhythms, which confirmed that it is most beneficial for health to live in accordance with natural time. On the basis of this work and other scientific research in 2022 the Barcelona Declaration was adopted, signed by scientists and statesmen from more than 80 countries.
The Head of the Government thanked the residents of Kostanay region and all Kazakhstanis for understanding and support of this important decision.
The decision was made on the basis of very deep scientific research, which was conducted not only in Kazakhstan, but also abroad. In 2017, a group of American scientists was awarded the Nobel Prize for the study of human circadian rhythms. And in this study, scientists proved that it is best and healthier for a person when he lives in his natural time. That is why now progressive countries of the world are striving for transition to the natural time zone. For Kazakhstan, the natural time zone is the one we live in now, UTC+5. Earlier, you know, we were in a different one - UTC+6. At one time, the country was transferred to a time zone that is not natural for us. Now, on the contrary, we have aligned the time to the solar cycles. I realise that the transition to a single time zone can be uncomfortable for some people. The organism gradually gets used to it. This decision has been made. If there are any inconveniences in the regions, we need to work with infrastructure, lighting, organisation of flexible schedules, which is allowed by our labour laws. All these issues will be further resolved," Prime Minister stressed.
During the meeting with the staff of the plant the issues of working conditions and other measures of support in anticipation of the upcoming Year of working professions, announced by the Head of State.
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Olzhas Bektenov checks implementation of President's instructions on industrial development at Kostanay region's industrial zone
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Prime Minister of Kazakhstan Olzhas Bektenov during his working trip to Kostanay region got acquainted with the industrial potential of the region. Fulfilment of the President's instructions, voiced in the Address, on development of high conversion and increasing the level of localisation was checked, primeminister.kz reports.
The Head of the Government was informed that for 11 months of this year the volume of industrial production in Kostanay region reached 2.5 trillion tenge, the share of manufacturing industry exceeded 72%. This year 6 industrial projects worth 124.7 billion tenge were implemented in the region, 1,301 jobs were created.
Olzhas Bektenov familiarised himself with the technological process and the company's plans to build a new plant aimed at the production of steel billets at Caspian Steel QZ. The capacity of the existing plant is 450 thousand tonnes per year. Thus, for 10 months of this year 311.4 thousand tonnes of rolled steel and 10.9 thousand tonnes of scrap metal were produced. The plant's products cover domestic needs and are sold on foreign markets. Since the beginning of the year, 112.6 thousand tonnes of small section rolled steel products worth more than 32 billion tenge have been exported.
The estimated capacity of the new steel billet plant is 1 million tonnes per year. Alexander Kim, director of Caspian Group, said that $650m is planned to be invested in the project. During its operation, the plant will employ 600 people, and another 400 jobs will be created in contractor organisations. It is planned to use electric arc furnaces of the latest generation, which minimise environmental impact within the framework of global transition to ‘green’ economy. It is noted that the implementation of the project will allow localising the production of rebar rolled products with an increase in the domestic content in the final product up to 99%. At the same time, the share of manufacturing industry in the region will increase by 12.3%.
Olzhas Bektenov noted the significance of the investment project and emphasised the need to form a belt of small and medium-sized businesses around large industrial production facilities.
The President has clearly set a task for the Government - to find new sources of economic growth. Each region has its own strengths and we strive to maximise the potential where we will get a concrete increase in the economy of the region, the country and in general in the work to improve the welfare of the people. The path of economic patriotism we have chosen is bearing fruit in the form of new domestic factories and production facilities, which in turn are developing a layer of SMEs around them. All this allows us to increase self-sufficiency of the domestic economy and create productive jobs," Head of the Government said.
Olzhas Bektenov got acquainted with the development of ferrous metallurgy at the plant KamLitKZ which is a key manufacturer of cast iron castings for trucks with a capacity of 45 thousand tonnes of castings per year. The Prime Minister was informed that the main technological process covers the full cycle of production of automotive components and ensures compliance of products with international quality standards. In 2025 it is planned to launch the second plant with capacity of up to 75 thousand products per year, which will apply advanced technologies of precision stamping.
Today, Kostanay region is the country's leader in the machine-building sector. Prime Minister was informed about the pace of development of automobile industry in the region on the territory of the industrial zone, where a plant for production of Kia cars is being built. The total cost of the project is estimated at $200 million, of which about 80% are direct foreign investments. The launch of the enterprise is scheduled for 2025, today the works on the construction of the main production building, the foundation, as well as the installation of steel structures have been completed. Head of the Government was informed about plans to establish paint and varnish production, including all types of polymer coatings, which will ensure a higher level of localisation. The full design capacity of the plant is up to 70 thousand cars annually. The plant's products will be manufactured using the small-assembly method. The production will be equipped with 68 robots. The launch of the plant will create 1.5 thousand new high-paying jobs.
At the site of one of the leading automobile enterprises of Kazakhstan ‘SaryarkaAvtoprom’ Prime Minister inspected production facilities and familiarised himself with the peculiarities of technological processes of car assembly on a full cycle. General Director of the plant Syrym Semeibayev said that in 2024 the volume of output is planned to reach 90 thousand cars. The production line is represented by such brands as JAC, Kia, Chevrolet, Jetour, Hongqi, Skoda.
The plant has a unique ‘Operational Response Centre’, which is an innovative platform combining physical and digital security. One of the key advantages of the centre is the use of teachable artificial intelligence, which allows the system to adapt to changes and introduce new analytical approaches. This is the first such project in Kazakhstan, aimed at increasing labour productivity and creating a comfortable working environment for employees. In addition, it was noted that the car plant is working to deepen localisation. In the industrial zone is under construction Localisation Centre with an area of 30 thousand square metres.
The enterprise pays special attention to the development of technical personnel. For this purpose, specialised areas of industrial training have been organised in all shops: over 1.2 thousand specialists have undergone it for 11 months of this year.
The Head of the Government noted that the expansion of production should be accompanied by parallel work on the training of qualified personnel and attracting young people to the implementation of industrial projects. The effective mechanism is vocational education, as well as the platform of the championship on skills WorldSkills Kazakhstan. Olzhas Bektenov also noted the importance of introducing digital solutions into production processes, aimed at increasing the efficiency of enterprises and the volume of products.
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Kazakhstan Handed Over CICA Chairmanship to Azerbaijan
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Republic of Kazakhstan officially handed over the chairmanship in the Conference on Interaction and Confidence Building Measures in Asia (CICA) to the Republic of Azerbaijan at the Seventh meeting of the Council of Foreign Affairs Ministers, press service of the Kazakh MFA reports.
At the event Kazakh Deputy Prime Minister - Minister of Foreign Affairs Murat Nurtleu summarized the results of Kazakhstan’s four-year CICA chairmanship, noting the key achievements of the organization during this period.
In particular, special attention was paid to the transformation process launched following the Sixth CICA Summit held in October 2022 in Astana. According to the Transformation Roadmap, adopted in September 2023, the Kazakh chairmanship has developed and launched the consideration process of the draft Charter of the Conference. In the mentioned period Kazakhstan has initiated the formation of three new advisory bodies - Think Tank Forum, Council of Eminent Persons, CICA Fund.
In his speech, Minister Nurtleu outlined foreign policy priorities of the Republic of Kazakhstan in the fields of transit and transport connectivity, development of information and communication technologies and climate change.
Kazakh Foreign Minister confirmed that Kazakhstan is committed to further development of CICA and stated his confidence that the Conference, keeping in mind its unique format and geography, has serious prospects and bright future.
At the meeting, the Ministers adopted a number of documents, including a Statement on the 25th anniversary of the Declaration on the Principles guiding relations among Member States, Decision on Modalities of implementation of confidence building measures and an updated Catalog of Confidence Building Measures, as well as launched a Partner Network of Leading Universities of the Member States.
Following the event, Member States highly evaluated Kazakhstan’s CICA chairmanship, noting the significant progress in institutionalization of the Conference.
The event was attended by the heads of foreign affairs offices of the Member States and observer countries, including the ministers of Azerbaijan, China, Pakistan, Bangladesh, Sri Lanka, Tajikistan, Uzbekistan, as well as representatives of nine international organizations, including the UN, the International Organization for Migration, the League of Arab States, the Turkic Parliamentary Assembly, the Economic Cooperation Organization, the Shanghai Cooperation Organization, the EEC, and the UN Office for Drugs and Crime.
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