New production of tractors is planned to be launched in Kostanay

The delegation of the Kostanay region led by the akim of the region A.B. Mukhambetov is on a working trip to Beijing (PRC).

The delegation of the Kostanay region, together with JSC "GC" Allur Group", Holding Company "Atey Group" and JSC "KazAzot" held a series of meetings with Chinese companies on the implementation of joint investment projects.

As it is known, at present the Chinese state-owned SMS Company (China NationalMachinery Imp. & Exp. Corp.) is working on the issue on the entering into the adssets of the GK AllurGroup JSC. Region management and the management of the Chinese company had discussed the actual status and near-term plans for completion of the process of entering of the CMC into Allur Group. Final completion of he process is planned to perform in October, this year.

Another meeting with the management of JSC "Agromashholding KZ" - a subsidiary of JSC "GC" Allur Group" was held with the Chinese YTOGroup Corporation. The company is interested in creating a new production of tractors in Kostanay, with a focus on the market of the CIS countries.

YTO Group Corporation, a subsidiary of TNK of "Sinomach" Corporation (No. 334 in FortuneGlobal 500), was founded in 1955. One of the largest machine builders and manufacturers of tractors, agricultural, construction and other machinery in China and worldwide.

Earlier, within the framework of the China-Kazakhstan Business Council held in Beijing from July 6 to 9, 2018, "Agromashholding KZ" JSC signed a Memorandum of Cooperation on the organization of the assembly production of YTO tractors in Kazakhstan. The company plans to visit the region in the near future.

In addition to the projects in the field of mechanical engineering, Chinese companies are also interested in implementing projects for deep grain processing in the Kostanay region.

One of such projects is being actively studied by the Kazakhstani Company "BioGrain" LLP together with Chinese partners - Myande Group Co., Ltd. and BeijingMunicipal Construction Group Co., Ltd. The executives of these companies assured of the imminent start of a mega project in the region amounting to $ 300 million. The project is planned to be implemented on the territory of the Industrial Zone in Kostanay.

The second is a project for the production of pentamethylenediamine DN5 (nylon) in Kazakhstan with a production volume of 500,000 tons and processing of wheat and maize with a volume of 2.3-2.5 million tons per year. The cost of the project is preliminary estimated at 2-2.5 billion dollars. . On the Chinese side, the project partners are Cathay Industrial Biotech Ltd and CITIC Construciton Co. Ltd. The partner from the Kazakh side is JSC KazAzot. CITIC or the Chinese International Investment Corporation for Property Management (CITIC GROUP, China International Trust and Investment Corporation) is one of the largest public investment corporations in China.

At the meeting, the region's management presented the investment opportunities, including economic potential and government support measures. The Chinese side, taking into account all opportunities and a favorable investment climate, expressed its intention to implement this project in the Kostanay region.

The delegation will continue with the working visit to China until the end of this week. It will meet with SANY GROUP Co. Ltd., SINOTRUK Limited International and Hanteng Auto Co. Ltd. Ltd. In Beijing and it will also visit the TV production plant of HKC Corporation Limited in Hefei, Anhui Province.

Let us remind that the management of the HKC Corporation Limited Company visited Kostanay region in early August this year to discuss issues related to the implementation of the project to create a plant for the production of TVs in Kostanay with further plans for exports to the CIS countries.