2019-24 road map: Kazakh machine-building output tripled over last year – Industry Ministry

Machine-building has played an integral part in the first and second 5 years of the State Program for Industrial and Innovational Development. According to the Industry and Infrastructural Development Ministry, machine-building production tripled and exceeded 1 trillion tenge in 2018. 128 projects worth 367 billion tenge are under way, with 10 projects valued at 54 billion tenge slated for introduction this year.

Amaniyaz Yerzhanov, the Kazakh Vice Minister of Industry and Infrastructural Development, outlined that the Kazakh enterprises increasingly engage in introducing new modern technology.

Following 2018, there was a 21% growth in transformers produced within Kazakhstan, an 80% rise in fibre-optic cables, and a 20% increase in electronic accumulators, and a 9% growth in lamps.

Agricultural machinery is represented by several local enterprises engaged in assembling farm machines and tractors. They are AgromashHolding, SemAz LLP, Kazakhstan’s Agro-Innovational Corporation.

“Since 2018 there has been an increase in the agricultural machinery thanks to the State support measures, providing for the budgetary funds for lease financing combines and other domestic machinery,” the vice minister said.

Despite a decrease in the production, active development can also be spotted in railway machinery during the recent years of industrialization.

There has been a considerable increase in mine drilling equipment thanks to an increase in drilling machines making up 73% of the machine-building industry, working on meeting the demands of systematically important and oilfield services companies and subsoil users across the country.

“There is a potential in oil and gas equipment manufacturing due to import substitution. The output in oil and gas equipment manufacturing stood at 55 billion tenge in 2018, or 5% of the machine-building industry,” the vice minister announced.

Amaniyaz Yerzhanov emphasized some systematic problems facing the machine-building industry, they include low competitiveness, the lack of high value-added products and skilled personnel.

The Kazakh Government has elaborated and adopted the 2019-24 road map on developing the machine-building industry focusing around 57 measures in a bid to boost this industry.

Meiram Pshembayev, the Deputy of the Mazhilis of the Kazakh Parliament, Chairman of an association of legal entities “The Union of Machine Builders of Kazakhstan”, stressed the active and dynamic development in the machine-building industry, an import decrease and an increase in the number of enterprises.

He also outlined that there is the demand for the products within and outside of the country.

“Over 1000 projects have been implemented during the years of industrialization, including 100 projects in the machine-building industry which contribute to the Kazakh economy,” he stated.

The Union of Machine Builders of Kazakhstan with the Minister of Industry and Infrastructural Development has developed the 2019-24 road map on machine-building based on three pillars, including the adoption of the Industrial Policy Law, the creation of an Industry Development Fund under the Ministry of Industry and Infrastructural Development, and the introduction of tax preferences for enterprises in an effort to upgrade the existing capacities and increase exports of the domestic enterprises.

Adlet Seilkhanov