 Manufacturing |
Manufacturing is also an important industrial
branch in Kazakhstan. Much of the country's manufacturing
is centered on refining ores, creating petrochemicals,
and processing agricultural products. Other sectors
include heavy engineering works, which produce
machinery and machine tools, and light manufacturing
such as the production of textiles. During the
first half of the year 2000 the gross output of
the manufacturing industry amounted 369 billion
tenge, which indicates a 19.4 % increase compared
to the previous year.
Not less than 12 percent industrial production
growth at the end of 2002 is planned. According
to the evaluation of the Agency of the Republic
of Kazakhstan on statistics, the annual oil and
gas extraction volume will make 45 mln tons, industrial
production volume - 2190 mln tons, fine copper
production- 418.10 thousands tons, metal zinc
production - 285 thousand tons, ferroalloy production
- 1180 thousands tons.
In general, the main factor stipulating high rates
of growth of the Kazakh economy are the world
economy growth and, primarily, favorable international
market conditions for oil, gas, ferrous and non-ferrous
metals, as well as increased effective demand
of households and enterprises. There are also
stimulating factors, such as the import substitution
policy and protection of domestic producers from
unfair competition. The largest influence on the
production increase in the Kazakhstan manufacturing
industry was the economic growth in Russia and
in other CIS-countries.
"We have project of exploration of copper,
ore, zinc, magnesium, lead, and other mineral resources.
We are planning to explore 468.000 tons of copper
concentrate where 422.000 tons will be pure copper.
We also have projects connected with ferro metals,
gold, silver, phosphor, chrome and others. These
are the main goods that bring revenues to Kazakhstan.
Besides, oil and gas, our Ministry is responsible
for the production of electricity, chemical industry,
geological problems, and the use of natural resources.
We are also responsible for aerospace industry (the
Baikonur Space Center) as well as for the nuclear
activity and uranium industry. In nuclear and uranium
questions we work closely with American and Russian
colleagues," Minister
of energy and mineral resources said, Mr. Shkolnik.
Kazakhstan produces approximately 12000 tons of
polystyrene and by the end of the year is planning
another 6000 tons polystyrene and 15000 tons of
styrene. There are two polypropylene plants in
Aktau and Atyrau.
Kazakhstan exports 97% of goods and only 3% is consumed
in Kazakhstan. It is planned to export to China,
India, and Pakistan. Most of the goods go to Russia,
Turkey, Spain, Holland, and Italy, France. Kazakhstan
is also working with Uzbekistan, Kyrgyzstan, Byelorussia,
and Ukraine. "Today, we are gradually increasing
the production. We are trying to get back our markets
in Russia, Ukraine, and Byelorussia. We are using
only 50% of our capacity. Our first products were
those that could be easily sold. Today, we are trying
to bring back the production of styrene. We also
deal with the development of oil industry of Aktau,"
President of Aktau plastic masses plant, Mr. Gerasimov
said.
In line with the governmental Programme for Mechanical
Engineering Development, in 2000-2003 the focus
will be on manufacturing machinery for the fuel
and energy sector, agriculture, mining, railway
rolling-stock, cars and consumer goods. For the
Programme to be implemented, an investment of
about $300 million from foreign sources will have
to be attracted to the sector.
Launching the domestic commercial manufacture
of oil and gas equipment is becoming a priority
in the light of the large-scale projects currently
in operation on the Caspian shelf, and therefore
this sector is receiving the undivided attention
of the Kazakh government.
The country has a sound industrial base for manufacturing
tractors and agricultural machines. This sector
is being prioritized. Unfortunately, Kazakhstan
has no capacity for manufacturing wheeled tractors,
combine harvesters and other complex agricultural
machines, hence the persisting dependence on imports,
which exceed $1 billion annually. At the same
time, the potential of many Kazakh facilities
is largely underused.
Agricultural products account for about 30% of the
processing sector's output, with foodstuffs forming
up to 90%. Although the development of Kazakhstan's
food industry over the past decade has generally
been rather uneven, in 2000-2001 there was a distinct
increase in the output of the majority of foodstuffs.
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Thus,
in 2000 the production of milk and cream increased
by more than 19,200 tonnes, flour by 478,900 tonnes,
sugar by 51,200 tonnes, bread by 118,900 tonnes,
and macaroni by 5,200 tonnes, as compared to 1999.
This growth was facilitated by the governmental
Import-Substitution Programme for the light and
food industries in 2001-2003, which has set rehabilitation
and accelerated development of the food industry
and upgrading technologically or technically obsolete
facilities, improving product competitiveness
through ensuring better quality, wider range,
and cost/price cutting and development of manufacture
of raw materials and food supplements for the
food industry, and supplying high-quality foodstuffs
to the domestic market.
More
than 25% of the overall volume of manufacturing
industry comes to agricultural products processing.
A
considerable increase is observed in production
of the following kinds of foodstuff: meat, poultry
sub-products, canned meat, cooked and canned fish,
fruit and vegetable juice, vegetable oil, margarine
products, cheese, flour, sugar, chocolate and
other kinds of confectionery products, sparkling
wine (9.2 times), champagne (2.7 times) and vodka
(1.2 times). The food industry of the country
also includes production of sausage products,
dairy products, macaroni products, mayonnaise,
cognac, beer, cigars and cigarettes.
Kazakhstan is currently experiencing stable developmental
dynamics in its textile and sewing industry. It
produces fabrics, bed-linen, carpets, hosiery,
outer clothing, hats and headwear, accessories,
fur clothes, knitted items, etc.
The
country increased the production of leather, leather
items and footwear by 18.6%. High production rates
of leather and footwear from polymeric materials
contributed to the overall increase in the industry
output.
Kazakhstan
increased production of wooden construction materials
and lumber (1.9 times), with the overall industry
output of 117.6% to the index of the previous
year. Various types of timber, railway and tram
ties, fiberboard, doors, window frames, plinths,
joiner items, construction materials, wooden containers
are among major products of the country's wood-processing
industry.Kazakhstan produces wallpaper, paper
boxes, cardboard and non-corrugated boxes and
bags, notebooks and other types of paper stationary.
The
volumes of the industry output increased by 16.5%,
primarily thanks to the growth in production of
phosphorous, oxides of chrome, chromic anhydride
and sodium dichromate, which constitute 70% of
the industry output.
Other products: chromic hardener, fluid chrome,
sulphuric acid, phosphoric thermal acid, nitrogen,
phosphoric mineral and chemical fertilizers, polymeric
dyes and lacquer, medicine. The government provides
support to the chemical and petrochemical industries
in a variety of forms, including reduced railway
rates, loans, and assistance in identifying potential
investors. A number of companies have come under
the trusteeship of foreign companies, which has
had a positive impact on their production and
financial performance.
At present, petrochemical companies such as Aktausky
Polimer (AKPO), Polipropilen, Karagandarezinotekhnika
and Shymkentshina, being endowed with the necessary
potential, are seeking additional investments
to overcome problems in manufacturing various
products. Mutually beneficial co-operation with
international partners in this area is therefore
of paramount importance for Kazakhstan. With an
injection of foreign capital and technology, the
domestic petrochemical industry will become capable
of offering competitive products to both domestic
and international markets.
The
country's chemical industry has always relied
on locally produced mining and chemical raw materials.
The largest phosphorite processing companies are
Karatau, Khimprom, Nodfos, Fosfor, Inderbor, Alga
Chemical Plant, Shymkentshina.
The
state of mechanical engineering is the key index
of a nation's industrial power. In
Agricultural machinery, process and electrical
equipment, heavy engineering, and the defence
industry largely represent Kazakhstan, this sector.
There are also a number of repair companies serving
the transportation sector.
Manufacturing of non-metal mineral products made
122.1% of the previous year index due to the increase
of production rates of ceramic tiles, construction
bricks, cement, lime, concrete construction materials,
roofing slate, which make up 75% of the industry
line.
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