Modernisation increases Kazakh defence industry productivity

ASTANA – The Kazakh defence industry has grown steadily as a result of modernisation and management changes, the Ministry of Defence and Aerospace Industry press service reported Oct. 25.

Photo credit: Kazakhstan Engineering national company.

In the past year, machine and technological equipment were renewed at military-industrial factories. Labour productivity reached $52.6, a 60-percent increase in 2017 compared to $32.7 in 2016. The figure is 2.4 times higher than the average level in mechanical engineering.

The military-industrial complex currently includes more than 40 enterprises providing in excess of 8,000 jobs. Founded in 2003, Kazakhstan Engineering units have more than 20 machine-building enterprises.

New methods of production technology and competent management contributed to the results.

A 40-percent increase in production assets is expected at the Petropavlovsk Heavy Engineering and Kirov plants. The hike would allow increasing localisation and producing new types of goods, including lifting units and cementing control systems.

One of the most important tasks implemented by the ministry was modernising enterprises and systematising domestic defence industry development, said military-industrial department head Marat Karabayev.

More than 100 jobs will be created and approximately one billion tenge (US$2.7 million) in tax deductions are expected annually. Productivity will increase 1.5 times.

“Development of military equipment provides new opportunities for the development of high-tech technologies used in other spheres,” he added.

Photo credit: Kazakhstan Engineering national company.

According to forecasts, military and civilian goods production will increase manufacturing by 40 percent by 2021.

Highly qualified personnel are necessary to develop advanced weapons systems, the officials say.

The salary growth rate that will outpace the increase in labour productivity could become one of the conditions to attract new specialists. Experienced personnel in the military-industrial complex will ensure further growth in labour productivity and breakthrough technologies in this area.

Kazakhstan Engineering is currently working to execute the Digital Kazakhstan programme. The company introduced digital production processes, expanded the range of manufactured goods using new technologies and set measures to develop export-oriented items.

With the support of the design bureau, the Kazakhstan Paramount Engineering plant is able change equipment design to fit customer’s specially assigned tasks. The automated systems are also put into operation at other plants. The company plans to introduce the enterprise resource planning (ERP) system to keep detailed records for the central office and optimise production works.


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