Production Volume in Mechanical Engineering Amounted to 553 Billion Tenge
Mechanical engineering is one of the most dynamically developing sectors of Kazakhstan’s economy.
Over the years of the state industrialization program, the volume of production in the sector almost tripled and amounted to nearly one trillion tenge in 2018.
In the first half of 2019, the indicator grew by almost 13.5 per cent to 553 billion tenge. This year another 10 production facilities worth 54 billion tenge will be launched.
According to Kazakh Foreign Vice Minister, Amaniyaz Yerzhanovthe production of transformers increased by 21% in 2018.
Meanwhile, the production of cables and optical fibers grew by 80%, electric batteries raised by 20% and lamps increased by nine times.
The growth was facilitated by an increase in export deliveries to the Commonwealth of Independent States, mainly to Russia.
There is growth in the agricultural machinery sector. The growth of production was facilitated by state support measures, such as exemption from value-added tax on the sale of products.
Another incentive will be the Roadmap for the Development of Mechanical Engineering for 2019 until 2024.
Under the document, the country plans to adopt the Bill on Industrial Policy. Thus, the country develops preferences that will allow domestic enterprises to actively modernize production.
Moreover, a fund for the development of industry will be created in Kazakhstan.
Investments in engineering, including construction, commissioning, launching and selling products require a very long time.
Chairperson of Union of Mechanical Engineers of Kazakhstan, Meiram Pshembayev said that the fund will finance projects of the manufacturing sector, including engineering, and the interest rate will be estimated at 1 to 4%.
Research and development, introduction of innovations, new technologies and export-oriented production will be financed with the 1% interest rate.
The roadmap aims to increase production by two times. If it is successfully implemented, the export of mechanical engineering products will increase by 30%.