Government • 14 April, 2020

Production in machine industry grew by 30.4%

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At the Government session chaired by Prime Minister Askar Mamin, the results of the country's socio-economic development and the implementation of the republican budget for January-March 2020 were examined. The Minister of Industry and Infrastructure Development Beibut Atamkulov reported on the current situation in industry and the energy sector, primeminister.kz says.

In the first quarter of 2020, industrial production amounted to 105.8%, including mining — 105%, manufacturing — 108.8%. Positive volumes of industrial production persist in 15 regions.

According to the minister, in the mining sector, the output of non-ferrous ores increased by 8.1%. There is a positive trend in iron ore production, an increase of 22.2%.

“The volume of coal and lignite production amounted to 100.2%. In manufacturing, growth was 8.8%. In ferrous metallurgy, the production volume amounted to 101.5%,” Atamkulov said.

Due to the coronavirus infection pandemic both in the country and in other countries of the world, as well as the current situation on the metal market and redistribution of export potential, ArcelorMittal Temirtau JSC and the ERG Group of Companies are considering alternative sales markets in order to ensure production stabilization and continuous implementation manufactured products.

In the engineering industry, production increased by 30.4% due to an increase in volumes:

- vehicles, trailers and semi-trailers by 69.5%;

- machinery and equipment not included in other categories by 20.7%;

- electrical equipment by 17.8%;

- production of other vehicles by 53.6%;

- repair and installation of machinery and equipment by 6.2%;

- computer production by 9.6%.

According to the minister, in the pharmaceutical industry, production grew by 32.2%, in light industry — by 14.2%, textiles — by 12.3%, leather and related products by 18.9% and clothes by 14.7%. Currently, in the framework of the program “Economy of Simple Things,” a number of normative legal acts and systemic measures are being taken to develop the industry.

For the transport complex, the physical volume index for the 1st quarter of 2020 amounted to 98.7%.

According to Atamkulov, the spread of the coronavirus COVID-2019 has an impact on the transport industry, in particular, to prevent the spread of coronavirus in Kazakhstan have been stopped:

  • passenger bus transportation (including city passenger bus transportation);
  • passenger trains;
  • regular air services.

Also, quarantine of some enterprises affects transport and logistics, as they reduce the volume of deliveries and orders for transportation.

The physical volume index for construction in January-March 2020 amounted to 111.7%. Positive dynamics are observed in 16 regions. The leaders are Karaganda, West Kazakhstan, Atyrau, Turkistan and Akmola regions.

“According to the results of the 1st quarter of 2020, 2,642 thousand square meters of housing were commissioned, which is 96.4% of the same period in 2019. The volume of housing commissioned by the annual plan was 18.7%. A total of 21,069 houses were commissioned in the republic,” Atamkulov concluded.

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