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For 8 months of 2020, 4.3 thousand new jobs created under Industrialization Map — Ministry of Industry and Infrastructure Development

Tuesday, 15 September 2020, 09:29:31

At a government session chaired by Prime Minister Askar Mamin, Minister of Industry and Infrastructure Development Beibut Atamkulov reported on the implementation of the Industrialization Map projects within the framework of the State Program of Industrial and Innovative Development for 2020-2025.

As noted by Atamkulov, the Ministry of Industry and Infrastructure Development, together with the regions, has formed Industrialization Maps, taking into account the specifics and competitive advantages of regions that cover various industrial sectors. This year in the regions it is planned to commission 206 projects for a total amount of 995 billion tenge with the creation of more than 18 thousand new permanent jobs.

In terms of industries, the largest number of new industries in the agro-industrial complex and food industry — 76 projects, building materials and mechanical engineering — 38 and 19 projects, respectively.

For 8 months of this year, 28 projects were put into operation in the amount of 204 billion tenge with the creation of 4.3 thousand new jobs. In the third quarter, it is expected to launch 14 projects worth over 97 billion tenge. The bulk of the projects (164 projects) will be commissioned in the IV quarter of this year. In general, projects are being implemented on schedule. Current problematic issues are resolved jointly with the regional akimats.

The leaders in terms of investments in launched projects are Karaganda, Aktobe and Almaty regions.

This year, the largest project in Central Asia for the production of technical gases by the company LLP Linde Gas was launched in the Karaganda region. In addition, it is planned to launch 3 furnaces of the ferroalloy plant (LLP YDD Corporation), 80% of which is exported, as well as the modernization of the foundry and the construction of an enrichment plant (LLP Qaz Carbon). It is planned to launch a project for the production of a new type of buses and special equipment (QazTehna LLP) in the monotown of Saran. On July 30, 2020, an agreement was signed between JSC Allur Group of Companies and PJSC Tatneft on the construction of a plant for the production of tires in Saran.

“The implementation of this project will allow meeting the needs of the Kazakhstani market for modern tire products, as well as increasing the localization of automotive production. The commissioning of new production facilities will give the city a new life. As a result, historically, the mining and metallurgical Karaganda region, taking into account its engineering and technical potential, today is becoming a leader in the manufacturing industry,” Atamkulov said.

Among the industries, the machine-building industry is showing good results, its production volumes increased by 16.3% in 8 months of this year.

The automotive sector remains the driver of the industry, providing growth by 51.8%. About 45 thousand cars were produced.

The launch of a plant for the production of passenger cars of the Hyundai brand (Hyundai Trans Kazakhstan LLP) in Almaty with a capacity of 45 thousand units per year will provide a twofold increase in the capacity of the domestic automotive industry.

The implementation of this project will ensure the transition to small-unit assembly of cars with body stamping and painting.

In 2019, 400 thousand discs were produced and exported to Russia, there is a design capacity to produce up to 1 million discs per year.

Since this year, cooperation has begun between the domestic auto industry (JSC Asia-Auto) and the metallurgical company (LLP Vector-Pavlodar) on the use of car disks to increase the localization of the automotive industry.

In the Kostanay region, a large-scale project is being launched to form a large machine-building cluster, where components for agricultural machinery and vehicles will be produced. The industrial complex with an area of ​​38 thousand square meters will be commissioned in December 2020, with an entry to the design capacity next spring.

The business incubator will contribute to the growth of the share of Kazakhstani production by producing more than 1,000 parts and assemblies necessary for agricultural machinery and vehicle manufacturers in the country, which also contributes to the development of new personnel competencies.

Foundry production of components for KamAZ engines will be set up in the industrial zone of the city of Kostanay. Currently, a corresponding investment agreement is being prepared for signing and construction is planned to start in September this year.

“It should be noted that 95% of manufactured products are export-oriented and will ultimately be integrated into the global value chain covering Russia, the CIS, as well as into the German concern Daimler AG. Thus, the region is moving from an agrarian-oriented direction to an industrial-innovative stage of development,” the minister said.

A significant shift has taken place in the electrical engineering sector. Domestic batteries have entered the markets of Italy and the United Arab Emirates this year. At the same time, the internal need for batteries is covered by 65%.

“With cable products, we also cover 65% of the country's market in various industries. It is important to note that cable and wire products, being the 5th redistribution of the metallurgical industry, provide deep processing of metals and the production of high-value products, the need to achieve which was voiced by the Head of State in his message on Sep. 1, 2020,” the minister said.

The need for transformers is covered by 85%.

With the launch of the 5th transformer plant in the city of Petropavlovsk (Alageum Electric LLP), we will ensure the production of another 10 thousand transformers per year, which will allow us to cover the entire range of transformer needs.

85% of the domestic market is provided with electrical measuring devices (Corporation Saiman LLP occupies a 95% share of OTP) and there is a potential for supplies to the countries of Central Asia.

Today 33 pharmaceutical enterprises produce 922 types of medicines. The volume of production in the pharmaceutical industry increased by 34.1%. Since the beginning of the pandemic, the volume of production of personal protective equipment has increased 10 times due to the introduction of 10 new projects.

Thus, to date, domestic enterprises fully meet the internal demand for reusable protective suits (504 thousand pieces per month) and medical gloves (330 thousand pieces per month), as well as for medical masks (1.2 million pieces per month).

As part of the implementation of the Comprehensive Plan for the Development of the Pharmaceutical and Medical Industry for 2020-2025, it is planned:

First. Increase in the volume of production of the pharmaceutical industry by 2 times (from 92 billion to 184 billion tenge).

Second. Increase in the volume of export of medicines by 2 times to $116 million.

Third. Ensuring an increase in the production capacity of enterprises producing disposable masks from 1 million to 2 million pieces per day.

Fourth. Ensuring an increase in production capacity for protective suits from 500 thousand to 1 million pieces per month by the first quarter of 2021.

One of the most important tasks set by the Head of State is import substitution and bringing Kazakhstani content in housing construction to 90%.

To meet the needs of the construction market, 38 investment projects worth 126 billion tenge are being launched this year.

In this industry, the key projects in 2020 are the bulk block house building plant in Nur-Sultan (ModeX Astana LLP), as well as a number of large projects in the production of building materials.

In general, the implementation of projects in the production of building materials will reduce the share of imports by 15% and increase the share of local content in housing construction to 90%.

According to Atamkulov, upon reaching the full capacity of the projects of this year, their production volumes will amount to over $3 billion. At the same time, a quarter of the manufactured products will be exported, this is about $800 million.

15 projects are launched in single-industry towns with an investment volume of more than 132 billion tenge with the creation of about 1 thousand permanent jobs.

77 projects worth 376 billion tenge will be launched in rural areas with the creation of 5.8 thousand permanent jobs.

In addition, it is planned to release new types of products that were not previously produced in Kazakhstan, namely, fuel assemblies, 7 types of cable products, new types of mining and road equipment, new types of composite coagulants, gas analyzers, free-flow reinforced concrete pipes of smaller and larger diameters and new types of fertilizers.

“Successful implementation of the Industrialization Map projects will allow us to enter a qualitatively new trajectory of the manufacturing industry development, ensure the self-sufficiency of the national economy by saturating the domestic market and exporting,” Atamkulov said.

Akim of the Karaganda Region Zhenis Kassymbek noted that over the years of industrialization since 2010, within the framework of the Industrialization Map, 92 projects have been introduced in the region, worth 353.2 billion tenge, with the creation of 7.4 thousand jobs.

The implementation of the projects made it possible to increase the volume of production by 3.1 times, labor productivity — by 1.5 times, investments in fixed assets — by 2.5 times.

In addition, new import-substituting products were created, such as steel ropes, filters for internal combustion engines, barite concentrates, ball valves, pre-insulated pipes, refractory materials, ferrosilicon, rubber-metal linings of mills for concentrating plants, long products and others.

“Currently, 45 large investment projects worth 2 trillion tenge are being implemented in the region, with the creation of 13 thousand new jobs, including 27 Map projects within the third five-year plan. For the remaining projects, work is underway to include them in the Map,” the akim of the Karaganda region informed.

As for the current year, 6 out of the planned 12 investment projects have already been launched. These are:

  • Altynalmas gold recovery plant at the Dolinnoye deposit worth 46 billion tenge;
  • production of technical gases, Linde Gas, worth 27.5 billion tenge. This is the second plant of Dutch investors who plan to implement stage 3 in the future;
  • cartridge plant, 27.3 billion tenge of investments;
  • wholesale and logistics center in Karaganda, 24 billion tenge of investment, 2000 new jobs created;
  • solar power plant in Agadyr village. This is the second stage of the KazSolar LLP project implementation together with the German investors Solarnet / Goldbek Solar;
  • service center for the maintenance of large-sized equipment Hitachi Construction Machinery.

By the end of the year, 6 more projects are planned to be launched:

  • modernization of the foundry and construction of an enrichment plant for Qaz Carbon worth 12 billion tenge;
  • production of rubber-metal linings for mills for mining and processing enterprises of the region, Polymet Solutions Corporation;
  • ferrosilicon production plant YDD Corporation 3 furnace worth 34 billion tenge;
  • feedlot for 10,000 heads and a dairy farm for 400 heads;
  • Yutong plant for the production of buses, quarry and road construction equipment in Saran, worth 22.1 billion tenge;
  • production of car tires with a capacity of 3.5 million tires per year.

It is also planned to create an industrial zone and a business incubator (Ready Built Factory). The functioning of the industrial zone in the future will create opportunities for the development of SMEs, including the production of components and component base.

“The implementation of these projects will become an additional catalyst for the development of the economy not only in Saran, but also in the region. Investments will amount to 150 billion tenge. The volume of production of the city by 2025 will increase almost 6 times, and the volume of the machine-building industry in the region will double. The implementation of the State Program of Industrial and Innovative Development will give the monotown a multiplier effect: improving the living conditions of the population, developing infrastructure and housing construction. In general, special attention is paid to the work on the implementation of the Industrialization Map and is under my personal control,” Kassymbek said.

Akim of Pavlodar region Abylkair Skakov, in turn, informed that for 2020-2025 a total pool of 44 investment projects worth 1.4 trillion tenge has been formed in the region. It is planned to create about 10 thousand new jobs. To date, 31 projects are underway.

“This year, it is planned to launch 14 projects worth 41.7 billion tenge, 560 jobs will be created. 5 introduced projects are being implemented with foreign participation,” he said.

The main areas of projects being implemented this year:

  • mechanical engineering — 3 projects for 17.4 billion tenge;
  • Agro-industrial complex — 1 project for 10.5 billion tenge;
  • Chemical industry — 5 projects for 2.9 billion tenge;
  • building materials — 2 projects for 3 billion tenge;
  • data centers (mining) — 3 projects for 10.8 billion tenge.

The key projects of this year are projects in the field of mechanical engineering and mining.

In order to further strategic development of Pavlodar region as a large industrial region, we plan to implement new industry clusters on the basis of existing metallurgical and chemical industries.

The successful implementation of this development strategy will increase the volume of industrial production in the region and create a center for high-tech and science-intensive industries (metallurgy — Aluminum and Copper clusters; chemical industry — Petrochemistry and Coal chemistry).

Within the framework of the Industrialization Map, a number of major strategic projects are being implemented in the region, such as:

  • a plant for the production of technical silicon, Canarax;
  • plant for the production of soda ash, LLP Pavlodar-Soda;
  • complex for the production of liquefied hydrocarbon gases and polymers, LLP Neftekhim LTD;
  • plant for the production of hot-dip galvanizing, LLP ROSSDORKOM KZ.

“In general, the implementation of current investment projects will increase the volume of industrial production in the region by 15%, create 2,760 jobs and provide 12.3 billion tenge of annual additional tax deductions. In terms of further development of the Map, we support the proposals voiced by ministry,” Skakov said.

Akim of Kostanay Region Archimed Mukhambetov noted that during the implementation of the State Industrialization Program in the region, 92 projects were put into operation for the amount of 157 billion tenge, with the creation of more than 6 thousand new jobs.

"It is worth noting that due to the implementation of the Program, there is an increase in the region's indicators, so the IFO of the manufacturing industry of the region for 8 months of this year (January-August) amounted to 119.9%," the akim of the Kostanay region said.

As part of the third five-year plan of the Program (2020-2025), 13 projects are being implemented worth more than 400 billion tenge and the creation of 3.8 thousand jobs.

In particular, 2 projects are envisaged in the engineering industry aimed at increasing the level of production localization.

At the site of AgromashHolding KZ JSC in 38 thousand square meters, a business incubator project is being implemented, worth 11.2 billion tenge and creating 1,500 jobs.

The main goal of this project is to increase the localization of production in mechanical engineering by attracting component manufacturers, including foreign ones. For example, the Austrian company, Pötinger, was involved to organize the production of seeding complexes, as well as the Russian company Riat is supposed to organize the production of plastic parts and seats for automotive and agricultural machinery.

The main range of products planned for localization: car kits, seats, plastic parts, harnesses and wires and other products.

The launch of the project is scheduled for the end of 2020, and in 2021 it is planned to localize 2,291 parts in mechanical engineering.

“Another project that I would like to highlight separately is a project for the production of cast iron with the participation of the Russian company KAMAZ. The project of the joint venture LLP KamLitKZ, worth about 80 billion tenge and the creation of 600 jobs, is planned to be implemented on the territory of the Industrial Zone of Kostanay. The capacity of the project is about 40 tons of castings per year, while more than 90% of products will be exported to the KAMAZ plant in the Russian Federation. It is planned to start construction of the plant at the end of the month,” Mukhambetov informed.

Work is also underway to include 6 projects in the field of agro-industrial complex, energy and mechanical engineering in the amount of 36 billion tenge in the Entrepreneurship Support Card.

  • Wind power plant with a capacity of 50 MW in the Kostanay region.
  • Construction of a feedlot for 5,000 head of cattle and a breeding reproducer for 2,500 heads, worth 3.6 billion tenge.
  • Construction of an elevator, a feed mill and a mill complex in Arkalyk.
  • Tire processing plant in Rudny.
  • Oatmeal production.
  • Broiler meat production.

To date, construction and installation work is being actively carried out. Completion of the work is planned in the IV quarter of this year. Work on the implementation of projects and attracting investors to the Industrialization Program is under special control.

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