Automotive industry demonstrates the highest growth dynamics in machine building industry of Kazakhstan – Sklyar

Over the years of industrialization program implementation in the machine building industry of the Republic 114 projects were implemented, – advised Roman Sklyar – the Minister of industry and infrastructure development of the Republic of Kazakhstan when speaking at the VII forum of Kazakhstan machine builders, which is held today in Nur-Sultan city.

“Machine building is one of the most important and most complicated industry branches from technological point of view. Development thereof ensures stability of agricultural, energy, metallurgical, transport and other key sectors of the economy. Creation of one job in the machine building industry entails creation of five-six jobs in related industries”, – said Roman Sklyar – the Republic of  Kazakhstan Minister of industry and infrastructure development when opening the forum.

According to his words over the years of industrialization program implementation 114 projects were implemented in the machine building industry of the Republic. Production of such new types of products as locomotives, transformers, communication equipment, optical devices, production of electronic parts, production of electrical lighting equipment were set going.

“Automotive industry and railway machine building were created from the scratch, agricultural, electrical, mining and oil and gas machine building were significantly upgraded and strengthened” – noted the speaker.

With the purpose of stimulating market players the country government provided VAT preferences, developed programs of privileged crediting and leasing, measures for support of product export. Industrial cooperation program was launched.

Large transnational corporations from Global 2000 list were involved in development of the industry such as Alstom, General Electric, CMC-JAC Motors, Hyundai and other” – underlined Roman Sklyar and added that producers succeeded in extending the current release of products for export, which include motor vehicle products, bearings, fans, accumulators, transformers, locomotives.

Electrical and technical products of Schneider Electric on the basis of Silumin-Vostok capacities, ventilation equipment of  LG Electronics on the basis of Almaty ventilation factory LLP capacities are manufactured in the Republic.

With the purpose of developing cooperation relations the Program of joint actions was adopted by Kazakhstan and Russian Federation in April of current year. This program stipulates cooperation in a row of joint projects with Kamaz PJSC, Petersburg tractor factory JSC and other.

In April of the current year the corner stone of a new factory “Hyundai Trans Kazakhstan” LLP for production of  Hyundai brand passenger cars was laid. Within frames of cooperation with Chinese partners it is planned to launch factoried for production of tyres and engines, which will give start to development of  automotive parts base in the Republic of Kazakhstan.

“According to results of  2018 the machine building production volume has for the first time risen beyond 1 trillion of  KZT. In 2019 the high dynamics of  growth persisted,” – advised the Minister and added that since January to August of the current year “the production growth volume was 118%”.

According to his data the motor road vehicle construction branch demonstrates the highest growth dynamics among sub-industries of  machine building. As of  today all categories of motor road vehicles are being produced in Kazakhstan. 167 models of motor road vehicles are assembled including 39 passenger cars models, 22 world brands. According to the words of the Minister the transition took place from semi-knocked down to completely knocked down assembly of motor road vehicles. For example, technological operations in welding and painting of car bodies were implemented. Since 2010 the production volumes grew 8 times: from 4 000 units in 2010 to 32 000 units in 2018. Share of automotive industry in total volume of machine building industry reached 19,2% compared with 4% in 2010.

Over 8 months in 2019 the production volume in motor car construction industry grew by 56,5%. Also electric machine building sector is characterized through the most stable production dynamics and more in-depth localization of  production compared with other industry sectors. In railway, agricultural, mining and oil and gas machine building of Kazakhstan the domestic enterprises produce electric locomotives, locomotives, wagons, all-rolled wheels, tractors, multi-purpose machines, agricultural vehicles, different equipment for petroleum servicing companies and mineral resources users.

By decree of the Prime-Minister in June 2019 the Road map was approved for development of machine building industry in the Republic of  Kazakhstan for the period of  2019-2024. This Road map stipulates single-point measures for support of machine building enterprises and a row of tasks to be completed.

“We hope that under conditions of successful cooperation between the government and business the planned objectives will be achieved and machine building industry of Kazakhstan will receive a fresh inflow of ideas for further development”, – said the Minister.

We remind that VII Forum of  Kazakhstan machine builders is taking place today – the 13th of September 2019 in Nur-Sultan city in EXPO Congress Hall. The organizing entities of the Forum are the Republic of  Kazakhstan Ministry for industry and infrastructure development, Union of  Kazakhstan machine builders with support of Kazakhstan government. General partner is Samruk Kazyna National Welfare Fund JSC.

Forum theme: “Machine building industry is a driver of Kazakhstan industrialization!”.

About 1000 delegates, directors of  leading Kazakhstan and foreign machine building enterprises, representatives of central and government authorities, quasi-state sector, development institutes, business associations and large consumers of machine building products are participating in the Forum.

In the course of  Forum it is planned to consider such current issues as development of domestic machine building potential, problems of  Kazakhstan content development in oil and gas sector, difficulties when implementing of international standards into production, possibilities of attracting long-term financing for appropriation of new products for oil and gas companies and etc.