102 projects for over KZT1.3trl were launched as part of Industrialization Map in 2018

26 March, 2019 16:42

The year 2018 resulted in a 4.1 per cent growth in the manufacturing industry, the Ministry of Industry and Infrastructural Development’s report on implementation of the national industrial-innovative development programme of Kazakhstan for 2015-19 says.

At the end of 2018, manufacturing output grew by 4.1%, with major growth points came from machine building (+14.1%), oil refining (+8.8%), the chemicals industry (+8.1%), the light industry (+4.4%) and metallurgy (+2.2%). The leading regions in the manufacturing industry were the Mangystau region (112%), Eastern Kazakhstan (111.5%), Western Kazakhstan (111.4%), the Aktobe region (108.8%) and the city of Nur-Sultan (previously called Astana) (108.1%). Oil and gas equipment manufacturing made up KZT53.4bn (volume index – 90.3%), meanwhile machine building output was KZT1074.2bn in 2018.

Results of 2018

102 projects for a total of over KZT1.3trl put into use;

Around 13.3 thousand permanent workplaces created as part of the Industrialization Map.

Plans for 2019

Growth in the manufacturing industry not less than 104%;

Around 120 projects for KZT1.1trl with creation of 20 thousand permanent workplaces planned.

In metallurgy, a plant to produce ferrosilicon in the Karaganda region (for KZT30.6bn YDD Corporation LLP), a plant to produce steel spiral pipes in Almaty (for KZT33bn Asia Steel Pipe Corporation LLP) will have been launched by the end of the year.

It is planned to increase vehicle manufacturing from 32 to 60 thousand units this year.

This year utilization of KZT500bn allocated to promote exports (for 2019 – KZT187bn) has started. To deal with problematic issues in the mentioned sectors, roadmaps to develop machine building, the metallurgy and coal industry are drawn up and will be adopted. It is planned to offset transport costs of at least 150 companies exporting final products with a low added value by 2022.

The concept of the third five-year period of industrialization was adopted in 2018, with the industrial policy keeping continuity and will focus on stimulating competitiveness of the manufacturing industry in internal and external markets.

The national programme of industrialization based on the concept will be elaborated until the end of 2019.

Targets (2020-2025) in the manufacturing industry:

1.7-fold real growth in labor productivity

2.3-fold growth in exports of processed commodities

2-fold real growth in investments in fixed capital

Economic complexity index (Harvard) – 55th place (from 84th)

2.3-fold growth in the number of active enterprises

Reconsideration of sectoral priorities in favor of supporting effective producers in all sectors of the manufacturing industry will take place.