Large investor enters Kazakhstan automobile industry

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December 11, 2018, in Astana, First Deputy Prime Minister Askar Mamin negotiated and attended the signing of an investment agreement on sharing the capital (51%) of the largest Kazakhstani automobile manufacturer SaryarkaAvtoProm by a transnational Chinese state company for the import and export of China National Machinery IMP. & EXP. CORP, a member of Genertec.

Askar Mamin noted that this is a strategic project for the domestic automobile 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 Kazakhstani-Chinese cooperation in the field of industrialization and investment.

Genertec (China General Technology Group) is a Chinese state-owned conglomerate covering machine building, pharmaceuticals, engineering, construction, and real estate, as well as technical consulting. The company's annual turnover is $31 billion. The export investment portfolio is $180 billion.

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.

As part of the development of the joint venture, the partners plan to increase production in the industry to 100,000 cars and the level of localization of up to 50%. The development of car assembly production in Kostanay will allow creating new jobs in the automobile 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, and work will continue to ensure the quality service of automobiles to consumers.

The total investment in the joint venture will be approximately $1.1 billion.

Together with the Chinese partner and investor, in the framework of the development strategy of production in 2019-2021, it is planned to produce cars under the brand JAC, ANKAI, HOWO, HANTENG.

The signing ceremony was also attended by Ambassador of China to Kazakhstan Zhang Xiao, Minister for Investments and Development Zhenis Kassymbek, Chairman of the Board of Baiterek Holding Aidar Arifkhanov, Chairman of the Development Bank of Kazakhstan Bolat Zhamishev, President of the Bank of China International Song Jinshan.

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