Doing business here

Industry
The volume of engineering market is $ 14.7 billion, of which 80-85% is import. Niche projects
  • Zhezkazgan copper plant
  • Kazakh electrolytic plant
  • Karaganda Electromash
  • Production of oil and gas equipment
  • Production of mining equipment
  • Production of mobile drilling rigs
  • Production of transformers
  • Production of combines
  • Production of tractors
  • Automobile production
  • Production of lead batteries
  • Production of cabling and wiring products
  • Production of locomotives
  • Production of passenger cars
  • Casting and mechanical and engineering plants
  • Machinery and repair plant
Engineering is one of the most prospective sectors of the Kazakhstan economy
The volume of the machine-building market for 2010-2017 million dollars. USA
There is a significant import substitution potential in the engineering market, whose share during the last five years has been confidently at the level of 80-85% Main importing countries Percents
  • Russia
  • China
  • USA
  • Germany
  • Italy
  • Other countries
Attractive cost of the main factors of production
Main factors of production
  • Russia
  • South Korea
  • Malaysia
  • Kazakhstan
  • China
  • Poland
  • Germany
  • Turkey
  • Water Cents per cubic meter
  • Russia
  • South Korea
  • Malaysia
  • Kazakhstan
  • China
  • Poland
  • Germany
  • Turkey
  • Gas Cents per cubic meter
  • Russia
  • South Korea
  • Malaysia
  • Kazakhstan
  • China
  • Poland
  • Germany
  • Turkey
  • Electricity Cents per kWh
  • Russia
  • South Korea
  • Malaysia
  • Kazakhstan
  • China
  • Poland
  • Germany
  • Turkey
  • Salary in the manufacturing industry, per hour
  • Russia
  • South Korea
  • Malaysia
  • Kazakhstan
  • China
  • Poland
  • Germany
  • Turkey
Source: the Financial Times Limited 2016 (latest available information), expert evaluation
Availability of qualified specialists

In 2014, the engineering sector employed 88 thousand people. In Kazakhstan there is a scholarship of the President of the Republic of Kazakhstan "Bolashak" for training students in top 200 universities of the world

9thousand graduates

Graduates of technical fields (electrical engineer, mechanical engineer, etc.)

Priority subsectors for investments
Electrical equipment
Cables
Agricultural Equipment
Mining and oil production equipment
Agricultural Equipment Dynamically growing market of agricultural equipment in the Republic of Kazakhstan, million USD Sgtr:
  • Fact: -1,2%
  • Forecast
  • Average annual import share: 76%
  • Regulatory
  • The actual
  • Local production

The need for agricultural equipment in the Republic of Kazakhstan (2017-2019), units

Tractors

Wear/equipment in Kazakhstan, % (2016)

Tractors 154 162 units.
Harvester
  • Regulatory
  • The actual
  • Local production

Processor 46 573 units.
  • A new technique
  • old appliances
  • The absence of significant competition from local manufacturers
  • Currently in Kazakhstan there is only Assembly plant;
  • In 2016 the total capacity of the five local producers amounted to 2 100 900 tractors and harvesters per year
  • State support of agriculture:
  • Subsidizing of fee rate on leasing of agricultural machinery and credit for agriculture
  • To ensure the access of agricultural producers to financial resources, machinery and technological equipment on lease basis
  • Providing a comprehensive support to export-oriented enterprises sector
  • Reimbursement of costs associated with the promotion of products for export, trade financing and insurance (50%)
Tractors

Tractor production-oriented import substitution on the domestic market of Kazakhstan, and also export to Russia

  • Key drivers
  • The planned increase in agricultural land in Kazakhstan and consolidation of the agricultural producers
  • A high need of updating of Park of agricultural machinery (a depreciation of more than 80%)
  • State support of agricultural producers with the purchase of new equipment
  • Duty-free access to a vast market of the Russian Federation
Cables

The production of a wide range of electrical cables, focused on import substitution in the domestic market of Kazakhstan

  • Key drivers
  • High need to upgrade depreciated equipment for power transmission
  • Planned investments in the modernization of the electric power industry
  • The absence in the market of Kazakhstan production capacities of international players
Business opportunities The current market
The volume of the market of Interest
  • Import
  • Local production

The main countries –importers Russia, China

~450 million $ Market volume kanellopoulou products

The potential of the market by 2020
given the needs to upgrade of transmission lines by 2020, the expected volume of the market of cable-Explorer products will be about $ 500 million. USA

Business opportunities

Investment in modernisation and construction of electrical networks from 2016 to 2030 is estimated at ~ $ 11 billion, including: backbone network – $ 3.5 billion. United States, in the distribution network – 7.5 billion $ 2. The total length of overhead power lines, which is about 25 thousand km

The planned reduction of wear of equipment for the transmission and distribution of electricity
  • Requires replacement
  • Does not require replacement
Prospects of development of production of mining and oil - extraction equipment:

The presence of a huge resource base of metals, which contributes to cheaper production of the basic components of oilfield equipment – spare parts and components

Another important factor is the relatively cheap cost of electricity

  • Projects expansion of current oil fields will increase the need for oil producing equipment:
  • The expansion of the Tengiz field in the period 2017-2021., ~37 - 40 billion $ investment
  • The expansion of Karachaganak, ~ $ 4.5 billion investment

In the conditions of unfavorable market conjuncture of oil and mining industries, companies reduce the cost of purchasing new equipment and focus on increasing efficiency and the repair of existing, which is a favorable factor for the development of maintenance engineering

The dynamics of the growing market of mining and oil - extraction equipment in the Republic of Kazakhstan. million $ Sgtr:
  • Fact: -3,7%
  • Forecast: 7,7%
  • Average annual import share: 65%
The dynamics of the growing market of mining and oil - extraction equipment in the Republic of Kazakhstan. million $

Dynamically growing market of electric power equipment in Kazakhstan, mln $

Sgtr:
  • Fact: -4,6%
  • Forecast: 7,7%
  • Average annual import share: 51%
Install the application:
1) Open the website in Safari
2) Click save
3) Add to home screen