Kassym-Jomart Tokayev visited the Hyundai Trans Kazakhstan car manufacturing plant

Hyundai Trans Kazakhstan (a subsidiary of Astana Motors) is a strategic facility for development of the domestic car industry, which will allow to fill the Kazakhstan’s market with new cars and ensure their export to CIS countries.

The project is implemented by the Ministry of Industry and Infrastructure Development of the RK as well as by the Almaty Akimat.

The plant area is 34 thous. sq. m on 25 hectares in the Industrial Zone of Almaty. The plant capacity at the first stage is 30 thous. cars per year, at the second stage — up to 45 thous. per year. The investments totaled over 28 billion tenge, of which 30% are own funds of Astana Motors and 70% are loans raised from Development Bank of Kazakhstan JSC and BRK-Leasing JSC.

Car assembly plants contribute significantly to the economic growth and diversification, raise the level of the country’s innovative development and ensure growth of professional personnel. Hyundai Trans Kazakhstan will create about 700 jobs and boost development of associated industries. The cost of one job is 40.1 million tenge. As the global experience shows, machine engineering has a multiplicative effect on development of associated industries, improves population employment and thus ensures the country’s competitiveness in general. According to the estimates, one job at the plant produces up to 15 jobs in associated industries (service, sales, logistics, insurance, banking, marketing, manufacture of car parts).

“Despite the crisis brought on by the coronavirus pandemic and the tenge exchange rate volatility, we have completed the plant construction as scheduled — in eighteen months. This April, the plant already started manufacturing cars by means of major components assembly. On October 15, the enterprise is commissioning the shops for cars manufacture by means of minor components assembly. We fulfil all our obligations in full, and early next year we are going to offer on the market the first cars manufactured by minor components assembly”, pointed out the Astana-Motors President Nurlan Smagulov.

Going forward, Astana Motors plans to build a car part manufacturing plant. Thus, the company will achieve the set objectives for development of the domestic car industry — ensuring over 51% localization.

Hyundai Trans Kazakhstan plant includes welding, painting, assembly, plastic part painting shops and a car parts warehouse. The enterprise makes use of advanced equipment manufactured in South Korea: Hyundai Motor Company, Obara, Korea Hoist, Durr Korea, Korea Tech, Hyundai Rotem, etc. Hyundai Trans Kazakhstan meets the requirements of Hyundai Motor Company and has certification documents from such well-known companies as VCA (UK), RDW (Netherlands) and TÜV Rheinland Korea, which certify world-class plants in Europe, US and Asia. The plant has been built in compliance with all environmental standards. The painting shop is equipped with air and water filtration systems.

Let us remind that the ceremony of time capsule burial in the foundation of the future plant in Almaty took place on 21 April 2019 and was attended by South Korean Minister of Trade, Industry and Energy Mr. Sung Yun-mo, President for Strategy at Hyundai Motor Company Mr. Young Woon Kong and Minister of Industry and Infrastructure Development of the Republic of Kazakhstan Mr. Roman Sklyar, who is now Deputy Prime Minister of the Republic of Kazakhstan.