The Minister of Industry and Construction Yersain Nagaspayev reported on measures to develop the chemical and petrochemical industry at the Government session. To date, the share of the chemical industry in the structure of the manufacturing industry is 4.6 per cent. According to him, the industry has a positive impact on the development of such sectors as agriculture, metallurgy and production of construction materials.

At the end of last year, the volume of production in the chemical industry increased by 7.7% and exceeded 1 trillion tenge. The Minister noted that the key enterprises of the industry not only meet domestic demand, but also actively develop export potential. He stressed that over the past five years, the chemical industry has demonstrated stable positive dynamics with annual growth of 5% on average, which was possible due to the systematic work of domestic producers and government support.

He also reported on a number of legislative measures that have had a significant impact on the development of the industry. In particular, thanks to the establishment of exemption from national treatment in public procurement, by the end of 2024, there is an increase in the production of household chemicals, paints and lubricants by 30%. In addition, in order to support local producers, a VAT exemption measure was introduced for raw materials used in the production of pesticides. Also, to regulate the illegal export of subsidised fertilisers, an exclusive right to export ammophos and ammonium nitrate was established. This measure has curbed the illegal export of fertilisers abroad.

The Minister informed that for the first quarter of this year the production volume increased by 12.5% and reached 406 billion tenge. In general, he said, this year production is expected to grow by 5%. This is planned to be achieved by launching new projects, as well as increasing production of certain products: polypropylene by 32%, sodium cyanide by 15%, fertilisers and yellow phosphorus by 13%.

He separately emphasised the important role of the agrochemical industry in ensuring the country's food security. In this regard, one of the key strategic objectives for the period up to 2030 is to fully provide local agrarians with the main types of domestically produced fertilisers. According to the information provided, the total volume of fertiliser output is to be increased to 4 million tonnes by 2030 through reconstruction and implementation of new projects. In addition, it is planned to launch production of new types of fertilisers, including urea, potassium chloride and dicalcium phosphate.

The minister added that one of the promising areas of development is carbon chemistry. Given the country's significant coal reserves, the development of this segment will help move away from the raw materials model of the economy and increase added value. Work is currently underway with major companies such as CHN Energy and East China Engineering and Technology. Also, within the framework of the approved Roadmap for the development of coal chemistry, domestic coal mining enterprises together with scientific institutes are engaged in comprehensive study and implementation of modern technologies to obtain demanded chemical products.

He noted that the rich raw material potential of Kazakhstan creates conditions for the launch of new production facilities in the chemical industry. As of today, 49 projects are being implemented in the industry, the main direction of which is the production of products for the oil and metallurgical industries. In particular, he mentioned that the caustic soda produced in the country is used mainly by domestic processors.

In conclusion, the Minister said that it is planned to attract investments of 4.8 trillion tenge in the chemical industry by 2035.

#Economy #Government session #Industry #Ministry of Industry and Construction

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