Schneider Electric: How much taxes did the company pay in Kazakhstan

One of the world leaders in the area of power equipment production has almost 25 years work experience in Kazakhstan. In accordance with the company data it executed the first projects on the territory of the Republic by having supplied uninterrupted and guaranteed power supply equipment to KRAMDS bank and Republic of Kazakhstan National bank in the period from 1993 to 1996.

During these years Schneider Electric “have been making significant contribution into development of industry, ensuring operability of main industrial, cultural, administrative and infrastructural facilities of Kazakhstan including residency of the Republic of Kazakhstan president, main airports, motor roads highways, metallurgical, oil and gas enterprises” and etc.

However its branch in Kazakhstan – Schneider Electric LLP – the company opened only after 10 years – in 2004. Today the enterprise performs large scope of work for such oil and gas operators as Tengizchevroil LLP and Karachaganak Petroleum Operating (KPO).

At the forum recently held in Atyrau concerning increasing of local content in original equipment production the oil and gas sector director, head of Schneider Electric power systems department in Kazakhstan – Rakhim Alipov – told, what kind of contribution the company is making in local content development.

According to him as of today the company has its offices in the cities of Almaty (head office), Nur-Sultan and Atyrau. Total number of LLP employees is 90 persons, 95% of whom are local citizens. One of the large projects in the field of local content development we can consider establishment of KazMunaiGasAutomatika joint venture jointly with KazMunaiGas NC JSC in 2015, which aims at development of industrial automation.

“In December 2018 KMGA opened production and assembly of pressure transmitters with 50% local content”, – says Rakhim Alipov.

In the field of technology transfer the company launched along with InfraEnergo LLP the production of CH switchgear, where local content share was 55%. In production of HH switchgear along with Electroservice production firm LLP the local content level reached 60%.

As Schneider Electric representative advised the company along with Tengizchevroil plans to open a training center in Atyrau in the current year. TCO personnel, employees of regional enterprises as well as students within frames of social programs will be trained in this center.

We remind that Kazakhstan-France educational center for energy, electric equipment and automated systems maintenance – Schneider Electric – was established in 2010 on the basis of Kazakh National Research Technical University named after K. Satpaeyv; 400 students study at this center annually.

According to Учёт.kz data Schneider Electric LLP paid 1 billion 89 million KZT of taxes in 2018. Over the previous year the company transferred to the state treasury around 820 millions of KZT. Whereas starting from 2013 annual payments of the enterprise increase by 100 or 200 millions of KZT.