Kazakhstan to transit to complete automobile production cycle
By Aynur Jafarova
In perspective, Kazakhstan will transit from assembly of cars to the full production cycle with a high localization level.
Kazakh Deputy Prime Minister and Minister of Industry and New Technologies Asset Issekeshev made this statement at the 1st Forum of Kazakh Machinery Constructors, Trend news agency reported on Wednesday.
"Last year, domestic enterprises produced over 19,000 cars. This is 6 times more than in 2010. In 2012, for the first time Kazakhstan became the exporter of automobile products," Issekeshev said.
He recalled that the Kazakh government developed a strategy for development of the automobile industry in the country, which will be created almost from scratch.
According to him, the automobile industry enterprises' future task is increasing the output of motor cars and commercial vehicles, as well as the localization of production.
"Automobile manufacturers have received credits and leases from state institutions worth more than $10 billion tenge and the first line of painting and welding will be installed by the end of the year. And in 2017??? are going to increase the localization up to 50 percent," Issekeshev said.
However, according to Issekeshev, Kazakhstan is still a major importer of machinery building products.
"With the huge potential of production of goods with high added value, Kazakhstan remains a major importer of machinery building products," Issekeshev said.
According to him, machinery building goods amount to $17.8 billion or 40 percent of the country's total imports.
"The volume of domestic production has only recently exceeded $4 billion," Issekeshev said.
According to him, given Kazakhstan's conditions, there would be a long-term demand for machinery building products for the oil and gas, mining and metals, energy and agricultural sectors.
"In addition to traditional exports of transformers and condensers, oil and gas armatures, accumulators, we develop new export routes and new types of products. We have adjusted industrial supply of batteries in China, commercial motor transports, X-ray equipment, water meters, electricity and household and electrical products to the countries of the Customs Union," Issekeshev said.
During the implementation of the state program of forced industrial-innovative development, production volume of machinery building has more than doubled - from 300 to 657 billion tenge. It is planned that the volume of production will exceed one trillion tenge by 2015.
High growth and development of the industry has been observed during the first quarter of this year as well (a 121.3 percent increase). Production of electronic and optical products grew by 15 percent, and production of vehicles almost doubled (up 196 percent).
Director General of the Kazakh Machinery Building Plant "Belkamit" Pavel Beklemishev said that one of the main reasons hindering the development of oil and gas machinery building industry in Kazakhstan is the policy of "double standards".
Speaking at the round table on the topic "Oil and gas machinery building" which was held within the 1st Forum of Kazakh Machinery Constructors, Beklemishev also mentioned that foreign investors operating in the oil and gas sector in the country adhere to this policy.
"Foreign investors often set tough requirements for Kazakh producers' equipment, however they are loyal to the goods of their own producers," Beklemishev added.
According to him, his company received an order for the production of equipment for the Atyrau Refinery. A reconstruction project is being implemented.
"We received an order to produce equipment worth $5 million, while the project itself is worth more than $1 billion," he said.
He stressed other reasons preventing Kazakh producers' joining major oil and gas projects are the lack of the necessary information from the oil companies and the inertia of Kazakh producers.
"Belkamit" joint venture manufactures equipment for the oil and gas producing, oil and gas processing companies, as well as nuclear, energy, metallurgy, construction, and food industries.