In order to further stimulate development of machine building industry the Executive team with the Ministry for industry and infrastructural development of the Republic of Kazakhstan has developed different types of support to foreign manufacturers desiring to develop local content in production and to place factories in Kazakhstan.
Vice-minister for industry and infrastructural development – Amaniyaz Yerzhanov – at the forum of OEM (original equipment manufacturer) local content development in goods explained: “Machine building industry in the whole world ensures competitiveness of economy and has multiplication effect on linked industries – one job in the machine building industry creates 7-8 jobs in linked industries. In 2010 the output of machine building industry was 376 billions 200 millions of KZT, whereas in 2018 we for the first time crossed the mark of one trillion of KZT. As of the end of 8 months we have products manufactured for 771 billions of KZT in the current year”.
In order to further stimulate development of machine building industry the Executive team with the Republic of Kazakhstan Ministry for industry and infrastructural development has developed different types of support for foreign manufacturers, which desire to develop local content in production and to place factories in Kazakhstan.
«First of all, this is implementation of tax preferences for machine building enterprises in exchange for quantitative obligations. It will allow to attract new investors and to provide enterprises with additional means for modernization and replenishment of turnover capital, also it will ensure additional growth of production output by 80-100 billions of KZT. Second, improvement of institutional environment for comprehensive development of the industry, which means adoption of the law “On industrial policy” and creation of the Industry development Fund of the Republic of Kazakhstan”, – said the vice-minister.
All these measures are applicable not only to OEM, but to domestice businessmen as well, who plan production for the needs of oil and gas industry. According to the public official the formation of vertical chain of creating added value from raw materials to finished products will allow to increase opportunities of domestic manufacturers as well as it will allow to apply emphasized support measures more expediently, for example, exemption from payment of value added tax and sale of raw materials to domestic manufacturers at privileged prices. Also the public official explained that government support will be strengthened through financing of production of individual types of machine building products within frames of ensuring long-term trade and ensuring liquidity for resolving the problem of affordable credit provision.
The Executive team for ensuring development of oil and gas machine building industry created with the Republic of Kazakhstan Ministry for energy and Ministry for industry and infrastructural development found out in the import of operators the reserve for provision of workload to domestic machine building enterprises. Now they work on the issue of providing off-take contracts to the manufacturers, which agreed to develop local content in production in Kazakhstan.
All forum participants agreed that only in case of close cooperation of state authorities, operators and machine building enterprises it is possible to develop machine industry in Kazakhstan.