Industry

Industry

Mechanical engineering

Each year, the need in 4 times exceeds the possibilities of local production Every year, half of engineering products imported Other products Import of engineering products Average annual $ billion
A large part of imports comes from Russia and China 51% China 26% Korea Engineering products, consumer goods 22% Italy 21% Germany Engineering products (machines) 94% Russia Metals and Engineering products are most of the goods America 1,9 Countries outside the EEU 1,3 Africa 0,2 Australia and Oceania 0,1 Asia 13,0 Europe 6,9 the EEU countries 15,0 2019 ($ billion)
In Kazakhstan, 16 thousand manufacturing enterprises and 1 thousand in engineering (ccea 26-30)
Priority for the development of products
Electrical equipment
Oil and gas equipment
Auto industry
Other machine, equipment, machines
From the point of view of accessibility:
  • - raw materials
  • - competencies
  • - technologies
  • - stable demand
  • - competitive environment
  • - logistics
Agricultural Equipment
Dynamically growing market of agricultural equipment in the Republic of Kazakhstan, million USD
Average annual rate of growth:
Fact: -1,2%
Forecast
Average annual import share: 76%
The need for agricultural machinery in the Republic of Kazakhstan (2017-2019), units
Tractors
Harvester
Regulatory: -1,2%
Actual: -1,2%
Local production: -1,2%
State support for agriculture:
  • Subsiding of interest rates on agricultural equipment leasing and credit provision for agriculture;
  • Providing access for the agricultural producers to the finance, technology and technological equipment on a leasing basis;
  • Providing comprehensive support to export-oriented enterprises of non-resource-based sector of the economy;
  • Reimbursement of costs associated with the promotion of products for export, trade finance and insurance (up to 50%).
Tractors

Production of tractors, oriented on import substitution in the domestic market of Kazakhstan, and export to the Russian Federation

Key drivers
  • The planned increase in agricultural land in Kazakhstan and the consolidation of agricultural producers;
  • High need of updating the agricultural machinery fleet (wear of more than 80%);
  • State support for agricultural producers when buying new equipment;
  • Duty-free access to the large market of the Russian Federation.
Cables

Production of a wide range of electrical cables, oriented on import substitution in the domestic market of Kazakhstan

Key drivers
  • High need of upgrading worn equipment for power transmission;
  • Planned investments in the modernization of the electricity industry;
  • The lack of production facilities of international players in the market of Kazakhstan,
Expected investment
current market
The volume of the market Percentage
  • Import
  • Local production

Main importing countries are Russia, China

$450 million The volume of the market of cabling and wiring products is

Market potential by 2020
Due to the consideration of the need of upgrading power transmission lines, by 2020 the expected volume of the market of cabling and wiring products will amount about $ 500 million

Expected investment
Investments in the renewal, modernization and construction of electrical grids from 2016 to 2030 are estimated at $ 11 billion, including: main grids - $ 3.5 billion, transmission grids - $ 7.5 billion. The total length of overhead power transmission line is about 25 thousand kilometers
Planned decrease of wearing of equipment for transmission and distribution of electricity
  • requires replacement

  • does not require replacement
Prospects for the development of mining and oil production equipment:
Availability of large metals resource base, which contributes to the cheaper production of basic components of oil production equipment - spare parts and complete units.
An important factor is the relatively cheap cost of electricity.
Projects on expanding current oil fields will increase the need for oil production equipment:
  • Expansion of Tengiz field during the period of 2017-2021, about $ 37-40 billion investment;
  • Expansion of Karachakanakskoye field, about 4.5 billion USD of investment.
In the unfavorable market conditions of the oil and mining industries, companies reduce the cost of purchasing new equipment and concentrates on increasing the efficiency and repair of working equipment, which is a favorable factor for the development of engineering maintenance service.
Dynamics of growing mining and oil production equipment market in the Republic of Kazakhstan, million USD
Average annual rate of growth:
Fact: -3,7%
Forecast: 7,7%
Average annual import share: 65%
Power equipment
Dynamically growing market of power-generating equipment in Kazakhstan, $ million
Average annual rate of growth:
Fact: -4,6%
Forecast: 7,7%
Average annual import share: 51%
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