Hyundai car manufacturing plant construction has been started in Kazakhstan

Foundationstone-layingceremonyofthefutureHyundaiTransKazakhtsanplantwasheldonApril 21 inAlmaty, the press service of the Ministry of Industry and Infrastructure Development of the Republic of Kazakhstan reports.

Accordingtothe agency, theplantwillbeconstructedbyAstanaMotorsCompanyinIndustrialzoneofAlmatycity with the support of the Ministry of Industry and Infrastructure Development of the Republic of Kazakhstan and the Akimat of Almaty.

At the first stage, the plant capacity will be 30 thousand cars; at the second stage, it will be increased up to 45 thousand cars per year. Theprojecttotal investmentswill be KZT 25 billion.700 permanent workplaces will be created. 25 hectares of land with existing infrastructure were allocated by the Akimat for the plant construction.

Theplantincludes welding, painting, assembly, plastic panel production shops and quality control department. Theenterprisewillbeprovidedwiththeadvancedtechnology equipment manufactured in South Korea and Japan.

“The plant will produce a complete lineup of Hyundai cars. The full-cycle production of one of Hyundai cars will be launched at the first stage, later we plan to launch Cretacar production line,” the press service reports.

It is expected that “assembly localization will reach 50% due to collaboration and industrial cooperation with the EEU countries”.

“In the future, it is planned to build car components production plant that will increase the level of localization in Kazakhstan”, the Ministry’s representatives believe.

There are plans to construct production workshops by the end of 2019, and in 2020, the first car will roll off the production line.

Accordingto“KazAvtoProm” Kazakhstan Automobile Industry Union, 8,822 vehicles (including cars, trucks, buses, special vehicles and trailers) worth KZT 56.5 billion were produced in the republic in the first quarter of 2019. Theoutputvolumeinphysicaltermsexceededthelastyear’sindicatorby 29.6%.

Car production increased by 27.9% reaching a value of 8,304 units. 5,049 units (60.8%) of this amount accounted for AZIA AVTO JSC, and 3,255 units (39.2%) weremanufactured by SaryarkaAvtoProm LLP.

Bus output (149 units) increased by6.8 timesin January-March. Also, the production of trucks increased by 15.8%(205 units), trailers– from 94 to 151 units. At the same time, the output of specialized automotive equipment reduced from 19 to 13 units.