Minister of Industry Pleased with 2011 Results, Outlines Plans for 2012

Feb 07. MFA

Minister of Industry Pleased with 2011 Results, Outlines Plans for 2012The Ministry of Industry and New Technologies in the past year focused on the implementation of the State Programme for Industrial and Innovative Development and ensuring the seven percent growth of the gross domestic product (GDP), Minister Asset Issekeshev said last week as he summed up the country’s industrial development in 2011 and outlined objectives for 2012 at an extended meeting of the Ministry’s board held on February 2. First Deputy Prime Minister Serik Akhmetov attended the meeting.

According to Issekeshev, industrial production in the past year compared to 2010 grew 103.5 percent. The volume of production in the metallurgical industry reached KZT 1.9 trillion with the growth compared to 2010 of 106.5 percent. In machine building, the volume of production equalled about KZT 500 billion registering the growth of 116.8 percent. In chemical industry, these indicators reached KZT 143 billion and 121.5 percent respectively.

As for nuclear industry, Issekeshev said the volume of uranium mining amounted to about 19,000 tonnes in 2011. To promote this field, the government has approved a Programme for nuclear industry development for 2011 – 2014, with the prospect of up to 2020. In addition, the country signed and approved four international agreements on cooperation in peaceful uses of nuclear energy with China, India, France, and Canada.

With respect to electric power industry, the Minister said at the end of 2011 electricity production amounted to 86.2 billion kWh, while consumption equalled 88.1 billion kWh.

“There have been major shifts in the industry, as systematic measures to attract investment have been taken. In 2011, the Ministry signed agreements with energy organizations on the implementation of investment commitments for a total investment of KZT 135 billion,” the Ministry’s press service informed.

Since May 2009, the Ministry introduced a new mechanism in the electricity tariffs and so-called “marginal rates.” As a result of the new pricing mechanism, total investment in recovery, reconstruction, and modernization of power generating in 2009-2011 amounted to KZT 310 billion. A total of 580 MW were imposed within the marginal rates.

Attraction of investment has always remained a priority issue for the Ministry. In the first three quarters of 2011, Kazakhstan’s economy attracted US $ 15.6 billion, which is 12 percent more than in the same period in 2010 (US $ 13.9 billion). Among this, investment in the processing industry amounted to US $ 2.3 billion, which is 58 percent more than during the same period in 2010, Issekeshev said.

To improve the investment climate and support investors, the government has approved a national plan to attract investment. The plan stipulates significant procedural and visa concessions, provides for the creation of favourable conditions for investors’ stay in the country, as well as ensures support for them both at central and regional levels.

At present, the Ministry is conducting negotiations with 209 foreign investors from 42 countries, including 136 technology leaders from 28 countries. In 2011, Kazakhstan attracted three foreign companies from the list of Global-2000. These include Lanxess AG (Germany), Marubeni Corporation (Japan), and Sumitomo Corporation (Japan), Issekeshev said.

He went on to cover the results of the work within the country’s Industrialisation Map.

“Within the map of industrialization, a total of 609 projects worth KZT 9.6 trillion are being implemented with the creation of about 400,000 jobs. Within the past two years, a total of 389 projects worth KZT 1.8 trillion were launched under the Industrialisation Map, which created more than 90,000 jobs. In 2011, the country commissioned 237 projects worth KZT one trillion that opened 45,000 new work places. All projects included in the Industrialisation Map are offered state support. Financial support worth more than KZT one trillion has been given to 200 projects,” the Ministry’s press service said.

In his address, the Minister also told about activities to modernize existing enterprises, reform the normative framework of the industrial policy, and the existing support for innovation.