There is much to strive for: the export potential of East Kazakhstan region will be increased

There is much to strive for: the export potential of East Kazakhstan region will be increased

As part of a three-day working visit to the East Kazakhstan region, the heads of Export insurance company KazakhExport and development Bank of Kazakhstan JSC visited a number of production facilities and held meetings with representatives of 13 companies in Ust-Kamenogorsk and Semey. They discussed issues of promoting Kazakhstan's products for export with local entrepreneurs, told about state support measures, and opportunities for deliveries to foreign markets.

Today, there are about 30 large export-oriented production facilities in the region, whose products are delivered to more than 90 countries around the world. The main consumers of Kazakh goods are China – 32.3%, Russia-22.6%, Turkey-17.7%, Uzbekistan-3.5%. The export of East Kazakhstan region in January-June 2020 amounted to more than $1.36 billion. and it has the potential for further growth.

Among the companies that actively use state support tools, the manufacturer of unrefined vegetable oil, meal and cake is PK Sey – Nar LLP. The company supplies more than 60% of its products abroad to China, Uzbekistan, and Tajikistan. Two years ago, the company, through KazakhExport, insured a Bank loan received for the purchase of raw materials for the manufacture of unrefined vegetable oil produced for export. Currently, PK Sey-Nar is expanding its production capacity and implementing an investment project for the construction of the Altyn Shyghys oil processing plant in the Glubokovsky district of the East Kazakhstan region.

Electric equipment from JSC "Kamont"is in great demand among foreign buyers. The production base of the enterprise, which produces complete switchgears and substations of medium and low voltage, includes procurement, painting and Assembly shops, technological lines and modern machine tools, which allows the domestic exporter to compete in foreign markets. The company supplies finished products to Russia. Since 2018, the volume of obligations assumed by KazakhExport under the contracts of this exporter has amounted to 6.6 billion tenge.

Not only domestic producers of goods, but also Kazakhstani service providers can benefit from state support. Kazgiprotsvetmet LLP has been exporting design services for several years. Within the framework of three export contracts, the company insured the risk of non-payment by a foreign buyer and replenished its working capital. The direction in which the exporter works is considered very promising. Complex technological and construction design of enterprises of non-ferrous and ferrous metallurgy, gold mining, machine-building, chemical and other industries is in demand all over the world.

The region has something to interest importers from near and far abroad: agricultural products, confectionery, packaging materials, buses, agricultural and cargo equipment, self-propelled and non-self-propelled vessels, pipeline fittings, technological equipment for various industries.

At meetings with the heads of Ust-Kamenogorsk industrial valve plant JSC, Ust-Kamenogorsk flour mill LLP, vertex Vostok LLP, Ust-Kamenogorsk oil extraction complex LLP, Ust-Kamenogorsk technological equipment plant LLP, Qazaq Astyq Group LLP, Daewoo Bus LLP, SemAZ LLP, Semey shipbuilding and ship repair plant LLP, Kazpoligraf LLP, "kondiz" and others discussed topical issues of opportunities and expansion of export geography.

- The export potential of the region is large. We visited a number of industrial facilities in East Kazakhstan region, some of the enterprises have been entering foreign markets for a long time, some are taking their first steps, and there are those who are just thinking about exporting. Our task is to help everyone, explain how the tools work, find the right one, calculate the risks, and assist in finding potential buyers, "says Ruslan Iskakov, Chairman of the management Board of kazakhexport ESC JSC.

In his Address, the President of Kazakhstan outlined priority areas of development, including doubling the export of agricultural products, maintaining broad "horizontal" measures to support industry, identifying key export priorities, and significantly expanding the tools of support measures. For small and medium-sized businesses in the region, this is an opportunity to increase production and expand the range of goods and services, and strengthen their position in foreign markets.

 

Kazakhexport Export insurance company JSC (part of Baiterek national insurance COMPANY JSC) is a subordinate organization of the Ministry of trade and integration of the Republic of Kazakhstan that promotes the export of non-primary goods and services.

The mission of kazakhexport Export insurance company JSC is to support the growth of exports of non-primary goods, works, and services in priority sectors of the economy and to develop the practice of financial, insurance, and non-financial support for Kazakhstani enterprises.