Kazakhstan Launches $26.7 Billion Push to Boost Industrial Growth

• Kazakhstan rolls out $26.7B in projects to create 24,600+ jobs and boost exports.
• Focus on auto, mineral processing, and chemical manufacturing.
• New zones and plants aim to cut imports and grow local industry.

Kazakhstan is implementing 17 initiatives aimed at high-value-added production, with a combined investment of 14.3 trillion tenge (US$26.7 billion), anticipated to create more than 24,600 jobs, Prime Minister Olzhas Bektenov stated on July 20, as reported by Kazinform. When fully operational, they are expected to boost exports by six trillion tenge (US$11.2 billion) and cut imports by 1.5 trillion tenge (US$2.8 billion) each year.

The nation has established 16 special economic zones and 55 industrial zones to support industrial enterprises, resulting in the production of over 15 trillion tenge (US$28 billion) in goods and the creation of more than 48,600 jobs. A differentiated strategy implemented in 2024 connects the amount of investment to the level of benefits provided: the greater the investment, the more significant the benefits.

KAZ Minerals Smelting and Mineral Product International will channel raw materials that were once exported (copper concentrate, coal, semi-coke, quartzite) toward local processing. At the same time, KIA Qazaqstan and Astana Motors Manufacturing Kazakhstan are developing supply chains for their new vehicle production facilities.

Included in the projects are the Tengri Tyres tire factory, inaugurated in Saran in July 2024; the Kazakhstan Mobility Engineering multimedia systems plant opened in Almaty in October 2024; the Almaty Autoparts Production seat manufacturing facility, expected to commence in 2025; Vector Pavlodar, a production unit for cast aluminum wheels; and Qarmet, which will manufacture automotive steel.

Bektenov pointed out that manufacturing production has grown by 7.9 trillion tenge (US$14.7 billion) since 2021, while exports of processed products have surged by 45.1% to reach $28.8 billion.

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Between 2023 and 2032, initiatives are underway to upgrade assets, enhance digital operations, perform research and development activities, and establish advanced manufacturing capabilities.

A gas chemical complex has been launched that produces 500,000 tons of polypropylene each year, leading to a drop in imports from 25,000 tons in 2022 to 7,000 tons in 2024. Currently, twelve types of polypropylene are manufactured locally, with five of them having been entirely imported before. Exports have expanded to Türkiye, China, Russia, and the European Union.

Current initiatives encompass the establishment of production facilities for butadiene and its derivatives, polyethylene, polyethylene terephthalate, and terephthalic acid, laying the groundwork for an advanced chemical industry in Kazakhstan.