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Information on prospective types of economic activities in Kostanay region

Production of agricultural machinery. Annually in the Republic of Kazakhstan for agricultural needs over 5 thousand units of agricultural machinery are acquired, 90% of which falls on imported items. The import consists of high quality European and American machinery as well as less expensive Chinese and Korean analogues. At present the agricultural machinery produced by such enterprises as Agromashholding, Agrotechmash, and DonMar do not cover the needs of the region. The project specifies creation of a joint venture or acquisition of licenses from the world producers on the assembly of separate types of agricultural machinery (about 1500-2000 units per year). 

Production of road building machinery. The annual need for such machinery constitutes about 16 thousand units of machinery, only 30 units of which is produced in Kazakhstan. As evidenced by this statistics, there is an obvious need for such machinery. 

Production of auto components and agricultural spare parts. One of the main conditions for production of auto components and agricultural spare parts is to ensure commercially viable production capacities under the condition of producing the minimum threshold for different auto components.

Production of machine tools and equipment. The priority sectors – consumers of machine tools and equipment include:

  • Processing of metal (machine tools for processing of metal);
  • Production of foodstuffs and drinks (equipment for the food industry);
  • Public catering (equipment for restaurants and cafes);
  • Trade (trading equipment and refrigerating appliances).

Assembly of household appliances. At present the assembly of household appliances is conducted only in Almaty, where household appliances of the LG mark are assembled. However, the internal production volumes (TV sets, washing machines and machines for drying clothes, refrigerators and freezers) satisfy only 26% of the total demand. Kazakhstan annually imports more than 1.2 million TV sets, 370 thousand washing machines, 500 thousand refrigerators. Hence, there is an opportunity to create an enterprise for assembly of household appliances by attracting such trademarks as Samsung, Indesit, Bosch, Biryusa, etc.


Production of disposable tableware and plastic packaging. With regard to bothplastic tableware and packaging, the main market share is occupied by imported items, that is, import accounts for 60% of the market for disposable tableware and 85% of the market for plastic packaging. Despite the lack of raw materials in the region, the output could be oriented towards reducing the cost of the finished goods by economizing on transportation expenses, customs duties and etc.  

Making soap and detergents. The project specifies creation of an enterprise producing soap and detergents of already existing trademarks by establishing a joint venture. This will enable to increase the share of domestic output in the overall consumption volume of detergents.


Production of paint and varnish products. About half of paint and varnish products consumed in Kazakhstan is imported. Only three domestic enterprises operate in this market. This allows creating a domestic enterprise producing these products.


Production of dry construction mixes. Annually we observe increasing consumption levels of dry construction mixes. It should be noted that large Kazakhstan producers are already operating at full capacity (like, for instance, Alina) and in case of the continuing trend towards increasing volumes of construction and therefore consumption of dry construction mixes they will not be capable of fully satisfying the growing needs. The cement of such mines as Shekubaevskoe and Novoilyinoskoe could be used as the principal component.

Production of ceramic tiles. Imported ceramic tiles account for 95% of the market. Development of domestic production of ceramic tiles is mainly impeded by a shortage of ceramic clay. Nonetheless, these raw materials are found in Kostanay region (kaolin-quarts-field spar ores of Bisembaevskiy mine, Denisovskiy rural district).


Production of sawn timbers. Only 1% of Kostanay region is covered in forests, which makes it impossible to prepare sawn timbers. However, the need in sawn timbers constitutes about 75 thousand cubic meters. Very often sawn timbers are imported into the region in already finished form bearing a considerable share of added value. In this case, the project incorporates the use for processing of imported unprepared timber (round wood) from Russia.


Production of fertilizers and means of protecting plants. Kostanay region is an agrarian area, which determines the demand for protection of grown crops and gathering stable harvest in the long term. The market size of all kinds of fertilizers constitutes 410-460 thousand tons per year, 70% of which is of foreign provenance.


Production of means for protecting plants is carried out by 9 domestic companies, the output level constitutes 2.4 thousand tons. At the same time, the import volume of all types of the means for protecting plants in 2011 was about 17-18 thousand tons.


Deep processing of grain. Although the consumption of the products derived from deep processing of grain is not too big in Kazakhstan, nonetheless, the international practice shows that these very products are the basic ingredients for producing many types of foodstuffs, including confectionery, drinks and so on. Furthermore, the products derived from deep processing of grain have a lower production cost and, accordingly, a lower price, which reflects positively on the finished goods, such as starch with a further production of glucose and fructose syrup as well as dry wheat gluten.


Production of cheese. Only 10% of the cheese consumed in Kazakhstan is of domestic origin, the rest 90% is imported, first of all from Russia, Ukraine, and European countries. The available raw materials base allows creating a corresponding enterprise and thus substitute for some portion of the imported items in the market for cheese.


Production of ketchup and mayonnaise. Over 45% of the sauce products consumed in Kazakhstan is produced abroad. Despite the shortage of the raw materials it is possible to launch a corresponding production line through purchase of separate ingredients and thus produce the finished product. Such production mode is a widespread practice by majority of large international producers.


Production of groats. Despite the present diversity of groats on supermarket’s shelves there is a possibility of partial import substitution as well as a big export potential, largely into the countries of Asia and East (Uzbekistan, Turkmenistan, Kyrgyzstan, etc.).


Creation of the A class logistics center. According to the transport strategy of Kazakhstan until 2015 it is not planned to create a transport and logistics center in Kostanay inasmuch as the Northern region as a whole is covered by the functioning transport and logistics centers in Astana and Aktobe region. However, goods turnover indicators within the framework of the executed export and import operationsas well as internal conveyance of goods testify to the need for creation of a distribution center. This will, first of all, enhance the attractiveness of Kostanay in the eyes of foreign suppliers and will also allow raising the quality of storing the products produced in the region, which in the end will reflect positively on their consumer characteristics. Moreover, Kostanay being situated on the international highway Astana-Ekaterinburg (Russia) has an advantageous geographical location. The area of storage facilities (warehouses) within the logistics center is planned to constitute about 20-25 thousand square meters.