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Valuable investor enters Kazakhstan auto industry

First Deputy Prime Minister Askar Mamin negotiated and attended the signing of an investment agreement on entering into capital (51 percent of shares) of the largest Kazakhstani automaker SaryarkaAvtoProm LLP of a transnational Chinese state company for the import and export of CMC vehicles (China National Machinery IMP. & EXP. CORP ), a member of Genertec (China General Technology Group), reported the Prime Minister press service.

 

 

Askar Mamin noted that this is a strategic project for the domestic automotive industry, which will increase the pace of development of the industry and export potential to enter foreign markets. The project is an important component of the Silk Road Economic Belt program and is included in the list of Kazakhstan-China cooperation in the field of industrialization and investment. As part of the joint venture development, partners plan to increase production volumes in the industry to 100,000 units and localization level to 50 percent. The development of car assembly production in Kostanay will create new jobs in the automotive industry.

 

Genertec Chairman Lu Yimin noted during the negotiations that the joint project will significantly deepen the localization of production, expand the brand portfolio and introduce the latest technology. Component suppliers will be selected on the territory of Kazakhstan and the EAEU, work will continue to ensure the quality service of cars for consumers. The total investment in the joint venture will be approximately 1.1 billion dollars.

 

In the framework of the production development strategy, it is planned to manufacture cars under the brand JAC, ANKAI, HOWO, HANTENG in conjunction with the Chinese partner and investor in 2019-2021. The signing ceremony was also attended by Ambassador of China to Kazakhstan Zhang Xiao, Minister for Investment and Development Zhenis Kasymbek, Chairman of the Board of Baiterek Holding Aydar Arifkhanov, Chairman of the Board of Development Bank of Kazakhstan Bolat Zhamishev, Bank of China International President Song Jinshan.

 

Genertec (China General Technology Group) is a Chinese state-owned conglomerate covering engineering, pharmaceuticals, engineering, construction and real estate, as well as technical consulting. The annual turnover of the company is 31 billion dollars. Export investment portfolio – 180 billion dollars. SMS (China National Machinery IMP. & EXP. CORP.) Is a major international designer, contractor for project management services and a service provider in the automotive industry, is part of Genertec.

Source: www.tengrinews.kz