ASTANA — Kazakhstan’s manufacturing industry has experienced changes, including improved legislation, reduced administrative hurdles, preferential financing and new tools to boost domestic production. The Kazakh government prioritizes mechanical engineering, petrochemistry, advanced metal processing and the automotive industry.
Photo credit: gov.kz
The sector’s growth was 105.1% from January to June. According to the Prime Minister’s press service on Aug. 20, manufacturing ranks third in terms of gross domestic product (GDP) contribution after mining and trade, with 13.3%.
Legislative changes allowed manufacturing enterprises and large mining companies to ink 25 agreements ensuring the domestic processing of primary aluminum and copper raw materials.
The mechanical engineering industry plans to expand the railway cluster by ensuring the full product line for railway transport and main lines at current manufacturing facilities, ranging from tiny products to freight gondola cars. Implementing these projects will increase the share of local products in railway engineering to 50% by 2030.
In oil and gas engineering, the production of parts for pumps and compressors, cranes, valves, and fittings for pipelines, tanks and cisterns has been established. Soon, the country will launch the production of shut-off valves, pumps, compressor and hydrocyclone equipment, and screw pump systems and expand the production of oil and gas equipment.
The automotive industry is gradually moving towards a more complex level of vehicle assembly. Automakers are fulfilling their commitments to gradually increase the share of small-node assembly to 50% of the total production volume by 2027.
In the construction industry, domestic manufacturers currently cover the domestic market’s needs for basic construction materials: 100% for concrete, 93.7% for cement, and 98.3% for dry construction mixes. By 2029, 170 new projects, including the production of sanitary ware, floor coverings, fiber cement panels, wallpaper, ceramic tiles, facing bricks, thermal insulation, roofing and facade materials, are planned. This will increase the share of local content in the construction industry to 85%.
The Kazakh government takes measures to support domestic manufacturers and load the available capacity of domestic enterprises. As for public procurement, exemptions from the national regime have been established for over 4,000 domestically produced items, which would be acquired on a priority basis from local producers. They include items from the light industry, mechanical engineering, chemical, metallurgical, building, and furniture sectors, as well as food products.
