Kazakhstan Targets $3.7 Billion in Output from 180 New Projects in 2024

ASTANA – Kazakhstan plans to initiate 180 projects by the end of 2024, with investments totaling about 1.4 trillion tenge (US$2.9 billion) and creating approximately 17,400 new jobs, the Prime Minister’s press service reported on July 24. Once fully operational, the key projects will generate goods worth nearly 1.8 trillion tenge (US$3.7 billion), including 400 billion tenge (US$843 million) for export and 1.4 trillion tenge (US$2.9 billion) for import substitution.

In the first five months of 2024, Kazakhstan’s metallurgical production grew by 54.2%, driven by increased output of ferroalloys, raw aluminum, raw lead, and refined copper. Photo credit: gov.kz

Among these projects is EkibastuzFerroAlloys, a ferroalloy plant in the Pavlodar Region, which will create 800 jobs with a 92.4 billion tenge (US$194 million) investment and an annual capacity of 240,000 tons of ferrosilicon. The factory in the Kostanay Region will produce cast iron components for trucks, providing 360 jobs with a 78.2 billion tenge (US$164 million) investment and an annual capacity of 45,000 tons. 

Zhetysu Wolfram company will develop the Boguty tungsten ore deposit in the Almaty Region, investing 135 billion tenge (US$284 million) to create 350 jobs and achieve an annual production of 3.3 million tons of ore and 10,000 tons of concentrate. 

The factory in the Almaty Region will produce thermal insulation materials, offering 220 jobs with a 43.9 billion tenge (US$92.6 million) investment and an annual output of 1.4 million cubic meters of rock wool and 400,000 cubic meters of polymer insulation. The factory will manufacture springs for rolling stock, creating 51 jobs with a 1.1 billion tenge (US$2.3 million) investment and an annual capacity of 298,500 springs.

Steel industry: Kazakhstan tightens scrap metal regulations

In the first five months of 2024, Kazakhstan’s metallurgical production grew by 54.2%, driven by increased output of ferroalloys, raw aluminum, raw lead, and refined copper. The country remains a major exporter of both ferrous and non-ferrous metals. Export revenues are improving the trade balance and boosting foreign currency reserves, with metallurgical exports rising by 8.3% to $4.7 billion in the first four months of 2024.

The number of metallurgical enterprises has significantly increased, intensifying competition. According to the data from the Kazakh Bureau of National Statistics, 442 companies operate in the country’s metallurgy sector, 26 of which are large-scale. The industry employs around 85,600 people.

Significant regulatory changes include new legislative acts for scrap metal collection and processing. The government has established authorities for issuing second-category permits and has tightened export controls to support domestic markets, including a ban on exporting ferrous scrap and non-ferrous metal waste.

Chemical industry: surge in investment

From January to May 2024, Kazakhstan’s chemical industry investments reached 68.4 billion tenge (US$144 million). The increase is due to new projects in technical silicon production, hydrogen peroxide, and liquid nitrogen. Nine new small enterprises opened in the first half of the year, with major investments focused in the Pavlodar (38.2%), Zhambyl (18.6%), Atyrau (18.4%), Turkistan (10.3%), and Mangystau (7.4%) Regions.

Coal industry: regulation and market support

Significant measures have been taken to regulate and support the country’s coal industry. A new government decree provides exclusive licenses to coal mining and processing enterprises, and companies affiliated with them, issued to 16 companies so far. This move aims to meet domestic coal needs, particularly for the heating season.

The country requires 8.6 million tons of coal for the heating season, including for residential and communal use. Plans are underway to adjust the list of companies with exclusive export rights.

Non-ferrous metallurgy: strengthening international cooperation

Kazakhstan’s non-ferrous metallurgy sector advanced in the first half of 2024, particularly through international collaboration. The Ministry of Industry and Construction has signed memorandums of understanding with the Chinese Ministry of Commerce and the South Korean Ministry of Trade, Industry and Energy to deepen cooperation in this sector. Amendments to technical regulations are being developed to improve industry standards.

Machinery industry: investment and modernization

Kazakhstan’s industrial production reached 814.4 billion tenge (US$1.7 billion) in the first half of 2024. The sector produced 62,435 vehicles, including trailers, 57,055 passenger cars, and 1,090 buses. All automotive plants have transitioned from large-component to small-component assembly with advanced welding and painting technologies.

The government has removed transformers and electrical substations from the national procurement regime and expanded the list to almost 16,000 machine engineering products. These steps aim to stimulate domestic production and support local manufacturers.

The government is significantly focusing on railway industry development and modernization. Extending tax and customs duty exemptions for railway projects aims to bolster industry growth and competitiveness.

In June, a protocol was signed to establish a testing R&D center for the elevator industry with a grant from South Korea of about $7.53 million. This project aims to foster innovation and enhance product quality.

In cooperation with the Eurasian Economic Commission, a decision was made to temporarily reduce import customs duties on certain goods, improving conditions for producing electrical engineering products in Kazakhstan.

Building materials and furniture: growth and investment

Regulations now exempt various building and insulation materials from national procurement rules to support local producers. 

The furniture industry’s production increased to 31.2 billion tenge (US$65.8 million) in the first four months, up 130.4% from last year. Investments in this sector totaled 1.6 billion tenge (US$3.3 million).

Light industry: major developments and new projects

In February, the government introduced a two-year exemption from national procurement rules for light industry goods to support local manufacturers. The light industry was included in the priority list for investment projects under the 2023-2029 development concept.

Azala Textile company has secured long-term contracts worth 2.6 billion tenge (US$5.4 million) with major construction and transport companies. 

Light industry production reached 95.7 billion tenge (US$201 million) in the first half of 2024, with an 11.5% increase in clothing production.

Light industry product exports totaled $67.3 million in the first quarter, marking a 69% increase from the previous year. Key markets for these exports include Russia, Türkiye, and China.

Over the past six months, investments in light industry capital reached 4.2 billion tenge (US$8.8 million), with significant increases in clothing production investments by 6.7 times to 1.3 billion tenge (US$2.7 million) and leather production by three times to 94 million tenge (US$198,312).


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