Kazakhstan’s Manufacturing Production Volume Reaches $48.7 Billion in 2023

ASTANA – Kazakhstan’s manufacturing sector showed positive dynamics in 2023, with production value reaching 21.6 trillion tenge ($48.7 billion), Minister of Industry and Construction Kanat Sharlapayev said at an April 29 government meeting in the Mazhilis, a lower house of the Kazakh Parliament.

Photo credit: Viewpoint Systems

The growth was driven by a 38% increase in the woodworking sector, 25.4% – in mechanical engineering, 12.2% – in the light industry, and 6.1% – in the construction industry.

The volume of investments in fixed capital grew by 11.2% compared to the previous year, totaling 1.7 trillion tenge ($3.8 billion). Exports of manufactured goods amounted to $25.3 billion last year.

Sharlapayev underscored the key goal of the industrial policy, enacted in 2021, which aims to shift away from reliance on raw materials and toward greater emphasis on domestic processing.

The law’s goal in industrial policy is to strengthen Kazakhstan’s industrial capacity, enhance its competitiveness, and reduce import dependence. Last year, following an analysis of the achieved outcomes and identified challenges, the country adopted an updated concept for the development of the manufacturing industry for the following six years.

This strategic document entails measures to boost industrialization, improve the investment climate, and create conditions for attracting domestic and foreign investment in key sectors.

Sharlapayev mentioned adopting a comprehensive plan for developing the rare and rare earth metals industry for 2024-2028, envisaging a 40% increase in investment and production volume.

“As specific results, I would like to note the agreements concluded on the joint development of lithium deposits with the German company HMS Bergbau, ($500 million), processing of secondary raw materials with the British company Maritime House, and rare earth, critical metals with the American company Cove Capital,” the minister said.

The mechanical engineering sector experienced a 24.9% growth in the first quarter of the current year, and the automotive industry is taking ongoing measures to shift towards more complex vehicle assembly processes.

Automakers are committed to escalating the proportion of complete knockdown to 50% of total production by 2027. This year, the aim is to achieve approximately 20%, followed by 30% next year, and further advancing to 40% by 2026.

Production in the chemical industry grew by 11.4% from January to March.

Sharlapayev spoke about plans to implement 12 investment projects in the light industry this year, valued at approximately 23.4 billion tenge ($52.7 million), with the creation of 720 permanent jobs.

He recalled 170 investment projects launched in 2023, generating over 12,000 jobs. For the current year, a list of 180 projects totaling 1.5 trillion tenge ($3.3 billion) has been compiled, creating nearly 18,000 permanent jobs.

From 2025 to 2027, 621 investment projects are planned, resulting in 4.86 trillion tenge ($10.9 billion) in investment and the creation of over 61,500 jobs.

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