The short version: East Kazakhstan wants an auto complex able to build up to 80,000 vehicles a year, backed by at least 110bn tenge of investment. For now, though, it is a memorandum, and construction is some way off.
The Kazakhstan–China Investment Forum in Almaty on 25 September ended with ten signed documents. One was signed by regional governor Nurymbet Saktaganov with the Kazakh-Chinese joint venture East Motors Corporation. Kazakh Invest listed it as a high-tech, full-cycle vehicle manufacturing complex, and the governor's press office later released more detail.
According to the region, the plant would make passenger cars, special vehicles, trucks and engines. Production is to grow in steps: DKD/SKD assembly first, then CKD, then welding, body treatment and painting, and finally full-cycle assembly. At design capacity it could turn out up to 80,000 units a year.
Capital spending after the preparatory phase is set at no less than 110bn tenge. Around 150 jobs are planned at launch and at least 500 permanent ones at full capacity. Localisation is to rise gradually to 50% and beyond. Besides Kazakhstan, the target markets are the Eurasian Economic Union, Central Asia and other countries.
Rules related to this news
There are gaps. Public materials do not name the Chinese carmaker involved, and give no construction start date, launch year or specific site. What was signed at the forum is memorandum-level, not a final investment decision, so the numbers may change.
For Chinese carmakers and parts suppliers, the second half of the plan is the interesting part. Moving from SKD to welding and painting would create local demand for body parts, interiors, wiring harnesses and coatings. Companies that want in should watch for updates from the regional government and Kazakh Invest.
Vehicle assembly in Kazakhstan has grown fast in recent years, with Chinese brands already in Kostanay and Almaty. East Kazakhstan sits close to the Chinese border, which helps on logistics. Whether the complex ever reaches 80,000 units depends on its partners and its order book.
Sources:
Kazakh Invest, https://invest.gov.kz/ru/media-center/press-releases/v-almaty-s-uchastiem-glavy-gosudarstva-prokhodit-investitsionnyy-forum-kazakhstan-kitay/
Caravan.kz, https://www.caravan.kz/news/v-vko-investirujut-110-mlrd-tenge-v-sozdanie-avtomobilnogo-proizvodstva-polnogo-cikla/
Baq.kz, https://rus.baq.kz/v-vko-budut-sozdany-kompleksy-po-vypusku-avtomobiley-i-po-pererabotke-othodov-320046282/
F16.kz (citing the regional governor's press office), https://f16.kz/ru/novosti/v-vostochnom-kazahstane-postroyat-avtozavod-za-110-mlrd-tenge/
Key facts
- The government of East Kazakhstan Region and the Kazakh–Chinese joint venture East Motors Corporation signed documents for the automotive complex project on September 25.
- The project plans to produce passenger cars, special-purpose vehicles, trucks, and engines, with annual capacity of up to 80,000 units at full output.
- After the project's preparatory stage ends, capital investment will be no less than 110 billion tenge.
- The localization rate is planned to be increased in stages to 50%; at initial production there will be about 150 jobs, and after reaching full capacity no fewer than 500 permanent jobs.
- The project is currently still at the memorandum stage; the Chinese partner, start date, and plant site have not yet been announced.
- In addition to supplying the Kazakhstani market, the products also target the Eurasian Economic Union, Central Asia, and other overseas markets.
FAQ
What is the current status of the automotive complex project in East Kazakhstan Region?
It is still at the memorandum stage. Documents were signed on September 25 at the Kazakhstan–China Investment Forum in Almaty; this is not a final investment decision.
What are the project's investment amount and production capacity?
After the preparatory stage is completed, capital investment will be no less than 110 billion tenge, with annual capacity of up to 80,000 units at full output.
What vehicle types is the plant planned to produce?
The plan covers passenger cars, special-purpose vehicles, trucks, and engines. Production will gradually transition from DKD/SKD major-component assembly to CKD knocked-down assembly, then add welding, painting, and final assembly lines.
What are the localization rate and employment plan?
The localization rate is planned to be increased in stages to 50%, and then further; at initial production there will be about 150 jobs, and after reaching full capacity no fewer than 500 permanent jobs.
Have the Chinese partner and start date been announced?
Public materials do not name the Chinese partner automaker, nor do they provide the start date, year of production launch, or specific plant site.