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  • New investment agreement between Kazakhstan and China

    On December 11, 2018, an investment agreement was signed allowing the entry of a transnational Chinese state company named CMC (China National Machinery IMP. & EXP. CORP) into the capital of Saryarka AvtoProm. CMC deals with importation and exportation of vehicles. Negotiations and signing of the document were held with the participation of First Deputy Prime Minister Askar Mamin in Astana. The information was announced by the Secretariat of the First Deputy Prime Minister of the Republic of Kazakhstan.

    Askar Mamin noted that this is a strategic project for the domestic automotive industry. It will increase the pace of development of the industry and export potential to enter foreign markets. The project is an important component of Belt and Road Initiative, and is included in the list of Kazakhstani-Chinese cooperation in the field of industrialization and investment.

    Chinese partners plan to increase production in the industry to 100,000 units and the level of localization up to 50%. The development of car assembly production in Kostanay will create new jobs in the automotive 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.

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

    There are plans to manufacture cars under such brands as JAC, ANKAI, HOWO, HANTENG in the framework of the production development strategy from 2019 to 2021

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

    CMC (China National Machinery IMP. & EXP. CORP.) is a major international designer and contractor for project management services and a service provider in the automotive industry. It is a part of Genertec.

    Information source "Общая сумма инвестиций в совместное предприятие составит примерно $1,1 млрд”



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