Customs Union Helps Local Industry Expand

UST-KAMENOGORSK – Vostok-Boilers in Ust-Kamenogorsk has been active in the development of the town and the region. Now, with the Customs Union (CU) and further Eurasian economic integration, the company is expanding even more.

The first plant began producing small boilers in 2003. Today, it is involved in the construction of internal and external water and sewer systems, heating pipelines, water tanks and pumping stations, and not only in the regional centre. An increasing number of villagers now have clean drinking water at home through Vostok-Boilers’ systems.

A new Vostok-Boilers plant producing insulated pipes was opened a year ago through the State Programme of Accelerated Industrial and Innovative Development (SPAIID), with a focus on creating environmentally safe products. With the establishment of the Customs Union, the plant has been able to expand production and begin to produce pipes with galvanised coatings. Regional Akim (Governor) Berdybek Saparbayev noted that the new plant should bring additional revenue to the regional budget.

“With the creation of the Single Economic Space, the interaction of the regions reached a qualitatively new level. After all, before joining the CU, our businessmen paid double tax on VAT [value-added tax], which was 30 percent of the cost of production. [After joining the CU] it became much easier to win the markets of Russia and Belarus,” said Plant Director Serik Akberdin.

No less important than the economic advantages, Akberdin said, is the increased awareness of regional producers. Russian and Belarusian consumers now come with proposals for cooperation to the East Kazakhstan entrepreneurs.

“We are also working to improve the proportion of local content. Today, the metal pipes are delivered from Pavlodar and the galvanised cover is supplied by Pavlodar and Karaganda oblasts,” said Akberdin.

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