30 Nov 2021, 12:26
At the government session chaired by the Prime Minister Askar Mamin, issues of the development of the manufacturing industry were considered. Minister of Industry and Infrastructure Development Beibut Atamkulov, Minister of Energy Magzum Mirzagaliyev, Minister of Agriculture Yerbol Karashukeyev, Deputy Chair of the Board of JSC NMH Baiterek Adil Mukhamedzhanov presented their reports.
According to the Minister Beibut Atamkulov, in order to achieve the goal of increasing the growth of the manufacturing industry by 1.5 times by 2025, two main tasks have been set:
- launching new projects in the manufacturing industries within the framework of the Industrialization Map and large investment projects.
- implementing new measures of state stimulation of industry, provided for in the draft law "On industrial policy".
“Following the results of 10 months of this year. the manufacturing industry continues to grow steadily. IFO grew by 5.3% to 13.4 trillion tenge, which exceeds the volume of the same period last year. Positive dynamics is observed practically in all sectors of the industry,” Atamkulov said.
In 2021, the regions, within the framework of the Industrialization Map, are planning to launch 139 projects totaling 1.3 trillion tenge with the creation of 12.7 thousand new permanent jobs. As of November, 83 projects were put into operation for a total of 1 trillion tenge, about 9 thousand permanent jobs were created.
The following key projects have been commissioned:
Until 2025, the Ministry of Industry and Infrastructure Development plans to launch 490 manufacturing projects worth more than 13.3 trillion tenge with the creation of about 102.5 thousand permanent jobs. The largest number of projects is envisaged: in the construction industry — 198, in the mining and metallurgical complex — 119, in mechanical engineering — 72.
In the mining and metallurgical complex, it is planned to implement projects for the production of ferroalloys and semi-coke in the Karaganda and Pavlodar regions with a total investment of more than 166 billion tenge, with the creation of 3,800 jobs.
The gold recovery plant LLP RG Gold is being implemented in the Akmola region with an investment volume of 105 billion tenge. The maximum processing capacity is 5 million tons of ore per year.
In the chemical industry, from a number of key projects, the head of the ministry noted:
- a project for the production of soda ash in the Zhambyl region. Reaching full capacity will ensure the output of 500 thousand tons of products per year, which will fully cover the needs of the domestic market and allow exporting.
- a project for the production of mineral fertilizers and industrial products with a capacity of 1 million tons per year. This production will increase food security and the country's export potential.
In Kostanay and Karaganda regions, 3 export-oriented projects are being implemented for the production of final drives for driving axles and cast iron for trucks, as well as for the production of tires.
In Pavlodar region, the construction of a plant for the production of a forging and bandage complex with a capacity of 100 thousand pieces of locomotive tires and 50 thousand pieces of forged products per year is underway.
In the construction industry, it is planned to launch factories for the production of ceramic tiles with a production capacity of 6 million square meters per year and with a capacity of 3 million sq m per year.
The pharmaceutical industry will launch the production of finished medicines in Nur-Sultan and liquid medicines in Almaty.
In the light industry — in Shymkent, a spinning and weaving mill and a spinning mill are launched as part of the Alliance TPK, and the production of hosiery is also expanding by 2 million items per year.
The tasks set for the development of the manufacturing industry will cover the country's average annual need for more than 50 products worth $3 billion.
“We will 100% cover the internal demand for ceramic tiles, thermal insulation materials, aluminum radiators, laminated chipboard, mineral fertilizers, coke and semi-coke. We will cover the country's demand for sanitary ware by 75%,” Beibut Atamkulov said.
By 2025, the task has been set to increase non-resource exports by 1.5 times. To achieve this indicator, it is planned to launch 180 export-oriented projects in more than 60 countries of the world. Thus, Kazakhstan will become the second largest exporter of ferroalloys.
Every third car produced in Kazakhstan will be export-oriented. At the same time, due to the production of domestic components, the increase in the share of local content will reach 50%. It is planned to release 164 middle and 121 upper processing units at the new production facilities.
Until 2025, the volume of production of upper processing products will total 2.7 trillion tenge, which will give an increase to existing production by 2 times, exports of $1.6 billion with an increase of 65.3%. The volume of production of medium-tech products will total 2.1 trillion tenge, exports $2 billion, which will increase production by 12.5% and exports by 14.3%. This will allow to establish the production of immune preparations and medicines, sanitary ware, auto components, household appliances, railway engineering products, paints and varnishes, building materials, and mineral fertilizers in Kazakhstan.
To ensure sustainable development of the manufacturing industry by increasing the production of competitive products and moving away from the raw material development model, a draft law "On industrial policy" has been developed. According to the instructions of the Head of State, the bill must be adopted by the end of this year.
The main novelties of the draft law:
In general, in 2025, due to the implementation of new projects and the introduction of new measures, the following will be provided:
In 2021, it is planned to produce 190 thousand tons of oil and gas chemical products — Mirzagaliyev
Minister of Energy Magzum Mirzagaliyev reported on the work being done to develop the manufacturing industry in the fuel and energy sector.
“After the completion of the modernization of oil refineries, there is an increase in the volume of production of oil products. For 10 months of this year the volume of production of petroleum products amounted to 11.3 million tons, or 109% compared to the same period in 2020. The plan for the production of petroleum products for 2021 is 13.1 million tons, or 105% by 2020,” Mirzagaliyev said.
At the same time, a number of measures are planned to further increase production, both in the short and medium term. So, this year, the modernization of the bitumen production unit at the Aktau bitumen plant will be completed, which will increase the production capacity from 400 to 450 thousand tons per year.
In addition, private investors are implementing projects for the construction of oil refineries in the Turkestan region, which are planned to be completed in 2023:
- LLP Standart Petroleum & Co with a processing capacity of 2 million tons of oil;
- LLP Standard Resources with a processing capacity of 100 thousand tons of coal to produce synthetic oil with further production of petroleum products.
At the Pavlodar oil refinery, until 2025, a project will be implemented to reconstruct a hydrotreating unit with the integration of a dewaxing unit, which will produce 160 thousand tons of winter diesel fuel, which has not been produced before. Thanks to the implementation of the above measures, the volume of production of petroleum products by 2025 will increase by 2.2 million tons and will amount to 15.3 million tons, and the volume of attracted investments will amount to 148.5 billion tenge.
For January-October of this year production of liquefied petroleum gas amounted to 2.6 million tons or 100.3% over the same period in 2020. This year, production of liquefied petroleum gas is expected to reach 3.2 million tons, or 100% by 2020. More than 60% of the main consumption of liquefied petroleum gas in the domestic market is accounted for by motor vehicles. Since 2019, the number of vehicles switched to liquefied gas increased by 2.2 times by 2021 and reached more than 310 thousand units.
To increase the production of liquefied gas, it is planned to implement 3 projects:
1. A low-capacity gas processing plant in Aktau with a capacity of 60 thousand tons per year, for an investment of 1.5 billion tenge. Completion date — before the end of the current year.
2. Construction of a new gas processing plant in the city of Zhanaozen with a capacity of 900 million m3 of gas, worth 147 billion tenge. The construction completion date is 2023. The plant will produce commercial gas in the amount of about 760 million m3, liquefied gas in the amount of 232 thousand tons and pentane-hexane fraction in the amount of 82 thousand tons.
3. This year, the construction of a gas processing plant at the Kashagan field with a capacity of 1 billion m3, worth 380.8 billion tenge, has begun. The planned completion date is 2023. The plant will produce 800 million m3 of commercial gas, liquefied gas — 119 thousand tons, condensate — 35 thousand tons, sulfur — 212 thousand tons.
Thanks to the implementation of the above projects, the volume of liquefied gas production by 2025 will increase by 300 thousand tons and will amount to 3.5 million tons, and the volume of attracted investments will amount to 530 billion tenge. At the same time, the production of commercial gas will be increased by 1.5 billion cubic meters.
For 10 months of this year the volume of production of petrochemical products amounted to 147 thousand tons or 48% over the same period last year. The plan for 2021 is 190 thousand tons, or 53% to the level of 2020.
The main reason for the failure to achieve the planned targets is the disruptions in the supply of electricity to the Atyrau Refinery in January of this year, which led to emergency shutdowns of technological units, incl. for the production of benzene and paraxylene. In this connection, the planned production of benzene and paraxylene was reduced 5 times from 264 thousand tons to 55.3 thousand tons.
At the same time, in 2021, 2 projects for the production of petrochemical products were introduced, these are:
- a plant for the production of octane-enhancing additives for gasoline with a capacity of 57 thousand tons / year (cost 11 billion tenge);
- a plant for the production of industrial gases with a capacity of 57 million m3 of nitrogen and 34 million m3 of dry compressed air.
In 2022, it is planned to commission a polypropylene plant with a capacity of 500 thousand tons / year.
Today construction and installation work is underway, the overall progress of the project is 96%.
In addition, by 2025, it is planned to complete the construction of two plants:
- a plant for the production of polyethylene terephthalate in the Atyrau region with a capacity of 430 thousand tons per year.
- a plant for the production of methanol in the West Kazakhstan region with a capacity of 130 thousand tons per year.
The implementation of the above projects will increase the volume of oil and gas chemical products to 2 million tons by 2025, and the amount of attracted investments will amount to 1.2 trillion tenge. It is also planned to implement a number of large projects in the petrochemical industry, in particular for the production of polyethylene and butadiene.
For the polyethylene project, agreements have been signed today on the basic terms of cooperation of PJSC Sibur. According to the project, butadiene in May of this year the Agreement on joint implementation of the project was signed with PJSC TATNEFT as a strategic partner. The feasibility study of the project is being developed. The implementation of these projects will allow attracting about $8.6 billion to the economy of Kazakhstan.
Since 2009, Kazakhstan has been ranked first in the world in terms of the volume of extracted natural uranium. Today, Kazakhstan is interested not only in the production and supply of natural uranium, but also in the production and sale of uranium products of a higher value added. To this end, it is envisaged to create a vertically integrated complex of the nuclear fuel cycle.
Thus, on the basis of the Ulba Metallurgical Plant Joint-Stock Company, projects have already been implemented for the production of uranium dioxide powders with a capacity of 317 tons, the processing of scrap with a capacity of 155 tons and the production of fuel pellets with a capacity of 400 tons. In addition, this year, NAC Kazatomprom JSC jointly with its Chinese partner China General Nuclear Power Company has implemented a project to build a plant for the production of finished nuclear fuel for fuel assemblies on the basis of the Ulba Metallurgical Plant with a capacity of 200 tons.
The Ministry is carrying out a number of measures and initiatives to develop mechanical engineering.
This year, the International Center for the Development of Oil and Gas Engineering was created. The main goal of the center is to localize the production of goods by 3 large operators for the oil and gas industry of the Republic of Kazakhstan, in particular by opening new production facilities, as well as expanding the capabilities of existing domestic producers.
This year, the share of purchases of 3 large operators Tengizchevroil LLP, Karachaganak Petroleum Operating BV and North Caspian Operating N.V. in the total volume of purchases by subsoil users is more than 70%, or about 3.8 trillion tenge.
At present, on the recommendation, the center has focused on the analysis and localization of three product groups:
- shut-off valves (valves);
- electrical equipment;
- instrumentation and automation.
A Direct Investment Fund for Local Content Development has also been established. The Chevron company, as part of its reinvestment obligations to the republic, is allocating funds in the amount of $248.5 million for the development of local content.
“Investments will be made in three areas of technology and IT, production of basic goods and assembly of certain types of equipment for the oil and gas sector and environmental protection. As of today, the Fund has already been registered on the site of the Astana International Financial Center. An electronic portal for receiving applications is being developed,” added the head of the Ministry of Economy of the Republic of Kazakhstan.
Thus, in the manufacturing industry, it is planned to implement 14 projects totaling 5.6 trillion tenge.
For 10 months of 2021 the volume of food production in the country increased by 3.6% — Karashukeyev noted
In his speech, Minister of Agriculture Yerbol Karashukeyev informed that for 10 months of this year. the volume of food production in the country increased by 3.6% and amounted to 1.8 trillion tenge.
“During the reporting period, the volume of investments in fixed assets of food production increased by 5.9% and amounted to 81.8 billion tenge,” said Karashukeyev.
According to him, in kind for 10 months of this year, increased production of cereals by 5.3%, starch products by 18.7%, fruit and vegetable juices by 2.8%, dairy products by 5%, butter by 9%, sugar by 2.6 times. At the same time, the production of flour decreased by 4.5%, vegetable oil by 3%, sausages by 0.4%.
In this year in the field of agricultural products processing, 29 projects were put into operation, incl. for meat processing 6 projects with a total capacity of 34 thousand tons, for milk processing — 10 projects with a total capacity of 96 thousand tons due to modernization and construction, for processing oilseeds 3 projects for 530 thousand tons and for deep processing 1 project for 200 thousand tons. tons of wheat processing per year, for the production of pasta and cereal products 3 projects with a total capacity of 23.5 thousand tons.
“Today, there are about 100 projects in the pool of investment projects — these are new processing projects that will provide additional growth in production and, accordingly, an additional volume of exports, which will ultimately help achieve the goal of increasing the export of processed products,” Karashukeyev said.
Export for 9 months of this year amounted to $950.5 million. The growth in exports amounted to 2.4%. An increase is observed in dairy products by 2%, pasta — by 37.4%, sunflower oil — by 11.7%.
The share of export of processed products in the total export of agricultural products is 37%. This level should be doubled to 70% by increasing production volumes and removing barriers to exports.
As the Minister further noted, the main directions of export are traditional sales markets: the EAEU member states, the countries of Central Asia, Afghanistan, as well as Europe.
To stimulate the attraction of investments in the agricultural processing industry, within the framework of the national project, all government support measures have been retained, such as investment subsidies to reimburse part of the costs, interest rates on leasing and loans to agribusiness entities, subsidizing the costs of processing enterprises for the purchase of raw materials.
"In general, as a result of the implementation of the national project, it is planned to increase the volume of food production by 1.5 times in five years, as well as attract up to 700 billion tenge of investments to the industry, which will additionally provide jobs for up to 7 thousand people," said Karashukeyev.
Baiterek Holding will continue to increase the volume of support in the manufacturing sectors of the economy — Mukhamedzhanov
Baiterek Holding is the key financial operator of the Government for the implementation of government programs aimed at supporting non-resource sectors of the economy. As Adil Mukhamedzhanov, deputy chairman of the board of JSC NMH Baiterek, noted in his report, the holding is implementing such programs as the state program of industrial and innovative development, the See also the national export strategy.
“This year, the holding has ensured through support instruments an inflow of investments into non-resource sectors of the economy for more than 2 trillion tenge. Of these, about 850 billion tenge were directed to support the processing sectors of the economy,” Mukhamedzhanov said.
According to him, broken down by industry in the structure of financing projects in the manufacturing industry, the main share is occupied by metallurgy, food industry and mechanical engineering. As of Nov. 1, 2021, 4 projects in the manufacturing industry were financed in the amount of 44.3 billion tenge through the support of DBK within the framework of the SPIID implementation.
By placing funds in second-tier banks for 10 months of this year. 12.9 billion tenge was mastered for 19 projects. In order to purchase vehicles from domestic automakers, borrowers were financed for a total of 16.9 billion tenge. In the direction of "support for domestic exporters", support was provided in the amount of 102.8 billion tenge for 14 projects.
Within the framework of direct lending to DBK from its own funds, in the period from January to November 2021, 4 projects in the manufacturing industry were financed in the amount of 52 billion tenge. Until the end of this year. full development is planned for approved projects in accordance with the planned values for 2021. Thus, the total amount of DBK's support for projects in the manufacturing industry for 10 months amounted to about 229 billion tenge.
Within the framework of SMEs for 10 months of 2021, within the framework of the IHL in the manufacturing industry, the Damu Fund supported 2,058 projects with a total loan amount of 247.8 billion tenge through subsidizing the interest rate, through a guarantee instrument signed contracts on 917 projects for a total amount of loans 42.2 billion tenge. Through conditional placement programs, 165 projects were supported for a total amount of 87.2 billion tenge. Thus, the total amount of support for SME projects in the manufacturing industry amounted to 377.2 billion tenge.
As part of lease financing, the Industrial Development Fund financed projects totaling 100.1 billion tenge as of Nov. 1, 2021, while the plan for the current year is 229.5 billion tenge.
“At the moment, in the direction of ‘Leasing export-oriented projects’ 4 projects are at the stage of approval. By the end of this year, it is planned to fully develop projects in accordance with the planned values for 2021,” Mukhamedzhanov said.
In the field of export support for KazakhExport companies, as of Nov. 1, 2021, insurance obligations were taken in the amount of 116.9 billion tenge. For 73 projects with a plan of 200 billion tenge, pre-export financing was supported, for 6 projects for more than 13.1 billion tenge with a plan of 5 billion tenge and trade financing, taking into account the involved own funds of second-tier banks, for 12 projects amounted to 12.7 billion tenge with a plan of 32.1 billion tenge.
“Until the end of this year, the holding plans to use the funds allocated to support the manufacturing industries in full, and in the coming years, the Holding will continue to increase the volume of support to the manufacturing sectors of the economy,” Mukhamedzhanov said.
As akim of Kostanay region Arkhimed Mukhambetov said in his speech, one of the basic sectors of the region's economy is the processing industry. Following the results of 10 months of this year. products for 876.5 billion tenge were produced, the physical volume index was 113.5%. The growth of the industry was ensured by an increase in the production of mechanical engineering, the metallurgical industry and food products.
“The manufacturing sector has been demonstrating stable production growth over the past 10 years, for example, in the period from 2010 to 2020. the volume of production in total increased,” said the head of the region.
The volume of production in the automotive industry is actively increasing, new brands and models are being mastered. In the period from 2017-2020. car production increased 10.2 times and amounted to 60,000. For 10 months of this year produced 44,115 with an increase of 44.3%, of which 6,231 vehicles were exported.
Along with the automotive industry, agricultural engineering is also developing. So, following the results of 10 months of this year. the number of tractors produced increased by 63.9%, combines by 14.2%, reapers by 14.8%.
In order to further develop the manufacturing industry, it is planned to implement a number of investment projects in the region, including in the field of mechanical engineering. So, on the territory of the Industrial Zone, projects are being implemented with the KAMAZ company, with a total cost of more than 160 billion tenge and the creation of about 700 jobs.
At the same time, together with the KAMAZ company, another project is under development aimed at deepening the localization in the production of axle cases. In addition, on the territory of the Industrial Zone next year, together with the Minsk Tractor Plant, the production of cabins for Belarus tractors will be launched, and in cooperation with the Russian company Luidor, the production of municipal equipment will be launched.
Taking into account the active development of agricultural machinery in the region, AutoRecycling LLP is building a plant for the utilization and processing of agricultural machinery. In the field of agricultural machinery, on the basis of AgromashHolding KZ JSC, a Localization Center has been launched, thanks to which it is planned to increase the level of localization of machine-building enterprises and move away from the import of auto components.
In the long term, SaryrkaAvtoProm LLP jointly with UzavtoSanoat JSC and General Motors is planning to establish production of Chevrolet Nexia cars by small-knot method, as well as stamping production of body parts for these cars.
In addition, there are a number of promising projects in the field of the agro-industrial complex. For example, the Olzha Agro agricultural holding will build 7 dairy farms with a total number of 10,200 head of cattle and a plant for the production of baby food and dairy products with a capacity of 240 tons of finished products per day.
Meat production projects are actively developing in the region. This year, 2 large meat processing complexes were launched in the region, with a total processing capacity of about 28 thousand tons of meat per year.
In Arkalyk, Aluminstroy LLP is building a grain processing elevator, which also includes a feed mill and a mill complex.
“The sphere of renewable energy sources is becoming a promising direction for the region. In the Kostanay region, a wind power station Ybyray with a capacity of 50 MW is being built. This wind farm is the first for the region, but not the last. So in the city of Arkalyk it is planned to build 2 more wind farms with a capacity of 50 to 100 MW,” added Mukhambetov.
Also, the possibility of building a solar power plant with a capacity of 20 MW, worth 20 billion tenge, is being considered.
Work on the development of the manufacturing industry is carried out on an ongoing basis and is under the special control of the regional akimat.
Since the beginning of this year, the Aktobe region has seen steady growth rates in the manufacturing industry. So, according to the results of 10 months, the volume of the manufacturing industry amounted to 650 billion tenge, an increase of 10.2%. In general, according to the regional akim Ondasyn Urazalin, growth is observed in all sectors.
“By the end of the year, the volume of the manufacturing industry will amount to 750 billion tenge, or the physical volume index will reach 105%. We have the necessary reserves for this. The growth was ensured due to the post-pandemic economic recovery and an increase in the volume of state support within the framework of state programs,” the head of the region said.
So, this year, 157 projects worth 24.6 billion tenge were implemented under state programs, which is 2 times more compared to 2020.
Over the past 5 years, the share of the manufacturing sector in the industrial structure has increased from 28 to 37.4%. This confirms that the region is moving away from dependence on raw materials. Today, there are about 1,000 enterprises in the region's manufacturing industry, employing more than 16 thousand people.
This year with the creation of 500 jobs, it is planned to launch 9 new investment projects worth 14 billion tenge. To date, 5 projects have been implemented, work will continue in this direction. In general, until 2025 in the manufacturing industry with the creation of more than 6,400 jobs, it is planned to implement 35 large investment projects worth 850 billion tenge.
Thanks to the implementation of the above-mentioned projects of the manufacturing industry, it is planned to increase labor productivity by 1.6 times, export volume by 1.9 times, IFO investments in fixed assets by 2.3 times and expand the range of goods.
As the Akim of the Karaganda region Zhenis Kassymbek said, the volume of export of the manufacturing industry in January-August 2021 amounted to $3.7 billion with an increase of 1.5 times.
“The products of the region are exported to more than 40 countries of the world. The main products of processed export are metals and metal products: flat rolled products, refined copper, chemical products, construction materials, as well as mechanical engineering products and components. By the end of the year, the volume of exports is expected to reach $5.2 billion with an increase of 33%, or $1.3 billion,” the head of the region said.
The positive dynamics of growth in processed exports will continue due to the stable operation of the backbone enterprises — ArcelorMittal Temirtau and the Kazakhmys Corporation, whose share is about 90% of the total export volume. And also due to launched and planned to launch new export-oriented projects.
So, over the years of industrialization since 2010, 68 projects have been implemented in the manufacturing industry, incl. 20 export-oriented. The largest of them are export-oriented:
- the project for the production of shut-off valves, Böhmer Armatura;
- production of refractory materials, Seven Refractories Asia;
- production of steel ropes and wire, Kaz - Metiz;
- YDD Corporation ferrosilicon production plant;
- ferroalloy plant KazKarbon.
Also in the period from 2021-2025 in the manufacturing industry, it is planned to implement 32 investment projects worth 604.3 billion tenge with the creation of more than 8 thousand jobs, incl. 14 export-oriented.
Zhenis Kassymbek noted the largest, strategically important for the region:
- production of automobile tires jointly with the Russian company Tatneft;
- plant for the production of special coke, Shubarkol Komir, and others.
“Also, enterprises of the region are provided with state support aimed at increasing the export of domestic processed products,” said Kassymbek.
For 10 months of 2021, through the QazTrade Trade Policy Development Center, regional enterprises received reimbursements for the costs associated with the delivery of goods in the total amount of 427.3 million tenge.
Through KazakhExport, export contracts in the amount of 5.5 billion tenge were supported and insured.
Work on the development of manufacturing sectors, incl. to increase export potential will continue.