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Chinese company Genertec invests $ 1.1 billion in Kazakhstan's auto industry

12 December 2018 14:55 (UTC+04:00)
Chinese company Genertec invests $ 1.1 billion in Kazakhstan's auto industry

By Abdul Kerimkhanov

The total investment of a Chinese company in Kazakhstan's auto industry will be approximately $ 1.1 billion.

In Astana, an investment agreement was signed on the entry of a transnational Chinese state company for the import and export of SMS vehicles (China National Machinery IMP. & EXP. CORP), a member of Genertec (China General Technology Group), into the capital (51 percent of the share) of the largest Kazakhstan automaker LLP Saryarka AvtoProm.

The first deputy prime minister of Kazakhstan, Askar Mamin, during the signing of the document noted that this is a strategic project for the domestic automotive industry. He added that it will increase the pace of development of the industry and the export potential for entering foreign markets. As he said, the project is an important component of the Silk Road Economic Belt program and is included in the list of Kazakhstani-Chinese cooperation in the field of industrialization and investment.

As part of the development of the joint venture, the partners plan to increase production volumes in the industry to 100,000 vehicles and localization level to 50 percent. The development of car assembly production in the city of Kostanay will create new jobs in the automotive industry.

Genertec Chairman Lu Yimin noted that the joint project will significantly deepen the localization of production, expand the brand portfolio, introduce the latest technologies. Component suppliers will be selected on the territory of Kazakhstan and the Eurasian Economic Union, and work will continue to ensure quality service for cars to consumers.

China National Machinery Import & Export Corporation (CMC) was founded in 1950. It was one of the major foreign trade corporations affiliated to the former Ministry of Foreign Trade and Economic Cooperation (the predecessor of the Ministry of Commerce). As New China’s first large-scale state-owned foreign trade company specialized in import and export of mechanical and electrical products as well as international engineering contracting business, CMC had always been the main channel of machinery and electrical products trade during various historical periods in China’s economic construction and development. Its total business revenue had reached $100 billion. Therefore it had made historic contributions to the nation’s economy and the establishment of the national industrial system.

In 1998, CMC became a founding member and wholly-owned enterprise of China General Technology (Group) Holding Ltd. (Genertec), which is an important backbone state-owned enterprise under the direct supervision of the central government.

China General Technology (Group) Holding – Genertec – is an important backbone of state-owned enterprises system, directly administered by the central government. Genertec is specialized in three sectors, including pharmaceutical industry, technical consulting and advance manufacturing, trade and engineering contracting. With sound capacity, full credentials and renowned reputation built in over 50 years, most of the key subsidiaries have played significant role in China’s relevant industries or industry segments and made great contribution to economic construction and social development.

At present, with more than 45,000 employees, Genertec has 58 overseas organizations and 32 domestic subsidiaries among which three are listed in Shanghai stock market, eight branch offices in Europe, three Research and Development Centers and has formed steady trade and cooperative relations with more than 100 countries and regions.

With a turnover of more than $24 billions in 2017, and assets of more than $18 billions, Genertec is one of the leading State Owned Enterprises in China and in 2014 was ranked for the first time within the Global Fortune 500.

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Abdul Kerimkhanov is AzerNews’ staff journalist, follow him on Twitter: @AbdulKerim94

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