Kazakhstan’s Manufacturing Industry Revamps to Boost Local Production
Kazakhstan’s Manufacturing Industry Showing Signs of Growth and Progress
The manufacturing industry in Kazakhstan is on the rise, with significant changes and improvements being made to boost domestic production. The Kazakh government has placed a strong emphasis on key sectors such as mechanical engineering, petrochemistry, advanced metal processing, and the automotive industry.
From January to June, the sector’s growth reached an impressive 105.1%. Manufacturing now ranks third in terms of gross domestic product (GDP) contribution, following mining and trade, with a substantial 13.3%.
Legislative changes have been instrumental in fostering partnerships between manufacturing enterprises and large mining companies. This has led to 25 agreements being signed to ensure the domestic processing of primary aluminum and copper raw materials.
In mechanical engineering, plans are in place to expand the railway cluster by diversifying the product line for railway transport. The goal is to increase the share of local products in railway engineering to 50% by 2030.
The oil and gas engineering sector has also seen developments, with new production lines for parts of oil and gas equipment being established. The country is set to launch the production of shut-off valves, pumps, compressor equipment, and more.
The automotive industry is transitioning to a more complex level of vehicle assembly, aiming to increase the share of small-node assembly to 50% by 2027. In construction, domestic manufacturers are meeting the market’s demands for basic construction materials, with plans for new projects to further enhance local content in the industry.
The Kazakh government is actively supporting domestic manufacturers by prioritizing their products in public procurement. Over 4,000 domestically produced items, including those from various sectors like light industry, mechanical engineering, and food products, are being acquired on a priority basis to stimulate local production.
With these initiatives and ongoing efforts to support the manufacturing industry, Kazakhstan is on track to further strengthen its position in the global market and boost economic growth.
