“Astana Motors” deepens localization of Hyundai car production
In 2022, Hyundai Trans Kazakhstan, an Astana Motors subsidiary, will launch CKD production of Hyundai Tucson.
On August 17, 2021, during the official visit of the Kazakh delegation chaired by Kassym-Jomart Tokayev, the President of the Republic of Kazakhstan, to South Korea, Astana Motors and Hyundai Motor Company (South Korea) signed a Memorandum of Cooperation. According to the Memorandum, Hyundai Motor Company transferred to Astana Motors the right to set up CKD production of Hyundai Tucson in Kazakhstan. The Hyundai Trans Kazakhstan plant in Almaty already manufactures Hyundai Accent by welding and painting car bodies. Thus, Hyundai Tucson will be the second CKD-produced model of Hyundai Trans Kazakhstan.
Equipment supplies from South Korea to Kazakhstan for setting up an CKD production line for a new model at the Hyundai Trans Kazakhstan plant will start shortly.
Mass CKD production of Hyundai Tucson will start in Q2 2022. Hyundai Trans Kazakhstan plans to produce six thousand Hyundai Tucson cars annually for the domestic market and for export to CIS countries.
At the meeting with the South Korean party in Seoul, Beknur Nesipbayev, General Director of Astana Motors, expressed his gratitude to the leaders of the two states for their vote of confidence, as well as to Hyundai Motor Company, as a leading global car manufacturer, for its machine building experience shared with the Kazakh enterprise.
"We are expected to accomplish an important mission and take big responsibilityfor the success of our common business. We have already mastered Hyundai Accent production by welding and painting. Our new goal is to master Hyundai Tucson production by welding and painting so as to deepen the Kazakh share of production," Beknur Nesipbayev said.
He also added that Astana Motors had discharged its obligations to build the Hyundai Trans Kazakhstan plant and launched a new plant in full scope at the scheduled time. Currently, the enterprise provides about 640 jobs. The plant still continues to hire employees as production is extended. Astana Motors pays special attention to forming a professional staff school and invests in advanced training of skilled workers.
"At the ceremony of opening the Hyundai Trans Kazakhstan plant, Korean engineers noted that, by investing in production, the business invested in its own country and became a real patriot. Therefore, we learn from our Korean colleagues not only new technologies but also new philosophy," Beknur Nesipbayev, General Director of Astana Motors, emphasized.
It should be recalled that on October 15, 2020, Almaty saw a full-scale launch of the Hyundai Trans Kazakhstan plant, with shops for car body welding and painting, plastic part painting, vehicle assembly, and a warehouse for CKD production components.
After the launch, the enterprise produced over 20.5 thousand cars, with 10.6% of them exported to Belarus and Uzbekistan.
The total investment in the project exceeds 28 bln tenge. Thirty percent of the investment (over 8 bln tenge) is the own funds of Astana Motors, and 70% (20 bln tenge) is a loan from Development Bank of Kazakhstan JSC and Industrial Development Fund JSC.
The project has been implemented with support from the Ministry of Industry and Infrastructure Development of the Republic of Kazakhstan, the Investment Committee of the Ministry of Foreign Affairs of the Republic of Kazakhstan, and the Almaty Akimat.
