Development of mechanical engineering in Kazakhstan: Strategies, achievements and prospects

Development of mechanical engineering in Kazakhstan: Strategies, achievements and prospects

16.11.2024 18:13:22 4035

On October 29, 2024, Kanat Sharlapayev spoke at a meeting of the Government of Kazakhstan, who presented a strategy for the development of the country's engineering industry. During his speech, he stressed the key aspects for increasing the competitiveness of Kazakh products on the world market, the importance of innovation and digitalization, as well as the need to attract foreign investors and localize production.
The main directions of the industry development
Institutional support: The development of the machine-building industry is carried out in accordance with the Law "On Industrial Policy" (2021) and the Comprehensive Plan for 2024-2028. The main objectives are to increase competitiveness, access to finance, technology introduction, personnel development, increase local content and export support. The goal is to double production by 2028.
Industry status: Mechanical engineering occupies 20% of the manufacturing industry and has a significant multiplier effect: one workplace in the industry creates up to 7-8 jobs in related industries. In 9 months of 2024, investments amounted to 124 billion tenge, the growth doubled.
The main sectors of mechanical engineering
Automotive industry: Major projects are underway with the CHANGAN, HAVAL, KIA and Geely brands. By 2025, it is planned to produce up to 90 thousand cars per year. The emphasis is on deepening the localization of production, in particular, the production of car seats and multimedia systems.
Railway engineering: Production of locomotives, freight and passenger cars has been established. In 2025, the production of passenger cars "Stadler Kazakhstan" with a capacity of 100 units per year will be launched. The plans include the modernization of the carriage fleet, reducing the wear and tear of which reaches 55%.
Agricultural engineering: In the last 5 years, production has increased 4 times. Large investors (Amazone, Zoomlion) have been attracted, and the production of components is developing. The localization center in Kostanay contributes to the development of infrastructure.
Electrical engineering: Exports of products (transformers, batteries) continue to grow. Measures have been introduced to support the sector, including the priority of public procurement and access to raw materials. Work is underway to produce energy-efficient transformers and industrial batteries.
Oil and gas and mining and metallurgical engineering: Production growth is 35% and 15%, respectively. Work is underway to amend legislation to support long-term contracts in the industry, and international investors are being attracted to introduce promising technologies.
Cluster development
The clusters in Ekibastuz and Saran demonstrate the success of economic diversification and job creation. It is planned to expand the cluster approach to other sectors.
For the further growth of the industry, it is important to strengthen support through long-term contracts, improve access to financing (the need is 600 billion tenge), and support innovation.

Source : https://www.gov.kz/memleket/entities/mps/press/news/details/873275