ASTANA – China National Machinery Import and Export Corporation (CMC) held negotiations and signed an agreement on the intention to acquire 51 percent of common shares of Kazakh carmaker AllurGroup.
“The deal has a great importance not only for our enterprise, but for the entire domestic auto industry. A new level of partnership confirms the fact that the Kazakhstan automobile industry is an attractive investment sector and demonstrates a high potential for stable development,” said a member of the AllurGroup board of directors Yuri Tskhai.
During the negotiations, it was noted that the AllurGroup, due to the presence of small-scale production, welding, painting, a high level of localisation and implemented technologies, is an attractive enterprise for foreign investors and has a high development potential.
“For the Kazakh side, the partnership with the state-owned Chinese company, together with the solution of the financing tasks, will bring a real transfer of modern technologies and introduction of the newest production methods. With the help of the Chinese partner, the Kostanai enterprise can significantly deepen the localisation of production, load and expand production equipment, introduce the latest technologies, improve technological processes, produce modern cars at the facilities of SaryarkaAvtoprom with the lowest expenditure and maximum efficiency,” according to the statement of AllurGroup.
The President of CMC Wang Xusheng said that it is a great honour for the company to become a partner of the leading automobile company of Kazakhstan.
The AllurGroup includes production sites of Agromashholding and SaryarkaAvtoProm and theAllurAuto dealer and distribution network. The sites manufacture the first Kazakh SUVs SsangYong Nomad and Toyota Fortuner, as well as various models of SsangYong, Peugeot, JAC, Hyundai and commercial vehicles from Iveco and JAC.
AllurGroup not only assembles, it is also an official distributor of the brands SsangYong, Peugeot, Iveco and JAC in Kazakhstan. AllurAuto is also the official dealer of Mitsubishi, Suzuki and Ford cars.