Kazakhstan to launch 170 new projects in food industry, machine building and metallurgy this year

Development of manufacturing industry of Kazakhstan considered at the Government session chaired by Prime Minister of Kazakhstan Alikhan Smailov. 

As reported by the Minister of Industry and Construction Kanat Sharlapaev, at the end of 2022 the industry took 13.4% of the GDP of the country, which is the third indicator in terms of contribution to the economy after trade and mining. The dynamics in terms of production volume is also positive: last year, 21.1 trillion tenge worth of products were produced, which is 2.2 times more than five years ago.

At the same time, over the past 8 months, the volume of production in the manufacturing industry amounted to 14 trillion tenge with an increase of 3.1% compared to the same period of the previous year. In terms of industries, the machine-building industry showed a strong dynamics of 28.1% due to the production of motor vehicles (+42.2%), machinery and equipment (+22.5%), as well as electrical equipment (+34.3%). In the light industry, the growth of 19.8% is due to the production of textiles (+35.9%), while in the chemical industry - at the level of 3.1% due to the production of ammophos (+44.8%).

The Minister emphasized that there are about 20 thousand enterprises in the industry, which provide more than 613 thousand permanent jobs. As part of the implementation of the President's Address, measures will be taken to deepen processing and provide enterprises of the manufacturing industry with raw materials, the formation of basic infrastructure, the implementation of large and strategic investment projects, as well as providing the market with a sufficient amount of preferential financing.

Nurbolat Aidapkelov, First Deputy Chairman of the Board of the National Management Holding "Baiterek" JSC, also made a report on measures to develop the manufacturing industry.

Prime Minister emphasized that according to the results of 8 months in Akmola region there is a decrease in investment in manufacturing industry by 70%, in Aktobe region and Ulytau region there is a decrease in production by 18%. Akims of the regions Marat Akhmetzhanov, Askhat Shakharov and Berik Abdygaliuly made comments.

Having listened to the speakers, Alikhan Smailov reminded that in his Address to the Nation, the Head of State defined the most important task to form a strong industrial framework of the country. The manufacturing sector is the basis for successful industrial development of any state.

"Within the framework of the Industrialization Map, 170 projects in the food industry, construction industry, machine building, metallurgy and other sectors are planned to be commissioned this year. This will create about 12.5 thousand permanent jobs," Prime Minister said.

He added that by order of the President a list of the largest projects for the creation of clusters of high processing in a number of priority areas is already being prepared. In particular, in oil, gas and carbon chemistry, deep processing of metals, uranium industry, machine building, production of auto components, fertilizers, etc.

"This work will involve the maximum use of domestic resources, as well as the potential of off-take contracts," Alikhan Smailov emphasized.

As the Prime Minister noted, projects on production of butadiene and polyethylene are at the stage of realization. At the same time, the International Centre for Development of Oil and Gas Engineering carries out effective work on localization of production of international companies and technology transfer. Thus, a number of new projects have already been launched to produce gas detectors, pumps and pressure sensors.

According to him, a high share of localization and transfer of modern technologies will also be ensured in the defense industry. At the same time, the Defense Industry Complex Development Fund will be specially created by the end of the year to support domestic enterprises.

Along with this, on the instructions of the Head of State, a draft Comprehensive Plan for the development of the machine-building industry is being prepared.

"Its implementation will allow to increase production in this sphere more than 2 times, increase exports almost 3 times and investments in fixed assets 1.5 times," Alikhan Smailov said.

This year the Roadmap for the development of light industry will also be updated. It will provide for such measures as compensation of investment costs in the creation of textile production and support for domestic producers in government procurement.

"In general, all the main directions and tasks for the development of the manufacturing sector have already been outlined. Now it is necessary to ensure their active implementation," Prime Minister emphasized.

In conclusion, he outlined the need to develop new approaches to the introduction of innovative technologies at enterprises, the mechanism of priority provision of large projects with infrastructure and resource reserves, as well as to intensify work to attract investment.

#Alikhan Smailov #Government session

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