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Strategy of national success. Nursultan Nazarbayev launched new breakthrough productions

13.12.2011

Дата:10.12.2011

Yesterday the President shared in the ceremony of awarding the winners of "Altyn Sapa" competition in quality, of "Paryz" – in social responsibility and of special prizes of RK President. Business and new breakthrough projects were discussed during the event and there was a national teleconference in which Nursultan Nazarbayev launched new productions. The country’s industrialization is a national idea on Kazakhstan’s new development stage.

Gifts for the Anniversary

  The award ceremony and the teleconference took place in the capital's "Saryarka cycling track" sports complex involving more than 4500 participants.

Projects were showcased in 3D-format. - During the years of Independence our industry has grown nine-fold to $ 82 billion, the President stated, and we are rounding off this year with a $ 180-billion total volume of economy, i.e. $ 11 thousand per resident, an undreamed of figure! We owe such an achievement, nearly the level of developed countries, to all Kazakhstanis’ efforts. Other indicators are pleasing too: non-oil exports of Kazakhstan the size of $ 21 billion, 6-fold grown foreign investment volume surpassing $ 18 billion as of the year 2010.

The AIID state program, he pointed, is not an end in itself. The main thing is for the new economy to work for people’s good. Suffice it to say that the new projects will open 180 thousand permanent jobs.

A large role in this process is played by small and medium businesses, to stimulate which "Business Roadmap 2020" was designed, along with incentives for development of enterprise and reduced inspections into business. This year saw a 30% reduction of administrative barriers.

The President urged to do business, open new businesses to earn money and help the country and the families thereby.

- The world has not yet recovered from the crisis, no one knows what will happen next, but one thing is clear: we must be prepared for various twists and turns, and through our hard work and our unity we will overcome any crisis, as before.

We are working to competitiveness, export of Kazakhstan goods, and hence – their quality improvement. Every year more and more companies take part in "Altyn Sapa" contest for "Best Product of Kazakhstan." Compared with 2006 the number of applicants has increased from three hundred to nearly a thousand.

"Paryz" award, according to the President, also added to building of public-private partnership in social development. The number of applicants has doubled in it. The competitors have implemented about 370 social projects totaling more than KZT119 billion.

- May the coming year be still more successful! By the next landmark on the Independence record, in 2030 we are to finalize "Kazakhstan-2030" Strategy. I wish good luck to all of us on this path, - concluded the President.

Innovations expanding the boundaries

In the second half of this year 162 projects were launched the total sum of KZT 902 billion, 35 thousand jobs opened. On the whole 237 projects will have been completed in 2011 worth KZT 1 trillion to open about 45 thousand jobs.

The new venues of modern high-tech industries appeared yesterday on Kazakhstan's industrialization Map during the nationwide teleconference, in which the regions were showcasing their industrial achievements.

Kostanay region came first. Since the country's sovereignty, industrial output there went 300 times up, agro-output – 112 times. Automotive industry is taking off. Kostanay provides a quarter of locally produced grain and flour. Over two years of the industrial program 38 projects were implemented in the region the sum of KZT41 billion, that created two thousand jobs.

The governor Sergey Kulagin made a performance report on the accelerated industrial-innovative development program (PAIID) in his incumbent region since the year start. The figures are: 28 implemented projects totaling KZT 24.6 billion, a new technology section № 17 at Sokolov-Sarbai ore-dressing production association was shown.

Next on the line was Mangystau region – an industrial leader in the country, evolving into a modern transport and logistics and major industrial and infrastructure hub on the map of Kazakhstan.

From the production site of the new company “Caspian Electronics” the region’s governor Krymbek Kusherbayev announced the launch on SEZ" Seaport "Aktau" territory of a project on building an "Industrial Park", consisting of 11 companies – a JV with "SUN BAO" co.

They will produce first in Kazakhstan tablets, the first batch of which will go to secondary schools. The project took a -800-mn-tenge investment. 280 tablets a day will be assembled.

Aktobe region, next in the live link-up boasts more than 600 large and medium-sized industrial enterprises, and 8.5 thousand small and medium businesses. Over the last two years alone 51 projects were launched on PAIID, says the performance report of the governor Arkhimed Muhambetov. A new gas treatment complex of LLP "Kazakhoil Aktobe" was put into operation during the teleconference.


To the heights of "smart economy"

Next link-up was with the Zhambyl region, formerly specializing in fertilizers production and currently building steel, construction, agriculture, transport, trade, chemical industries. The latter area accounts for 72% of export products.

Small and medium businesses are growing fast in the region. The "Super Farm" company has built a new medical devices production.

The governor Kanat Bozumbayev’s progress report says that in the years of independence a strong industrial base has developed in the region. The volume of production in the manufacturing sector has grown 11 times in the 20 years. By 2015 the volume of non-commodity exports is to be brought up to 36%, labor productivity –to go 1.5 times up.

The design capacity of the pharmaceutical plant launched by "Super Farm" LLP in Aisha Bibi rural district, the only one of the kind in CIS, making disposable medical clothes, is 15 million pieces a year. Local raw material is used in production to make the wares more affordable. And since this is the only plant in CIS, it is possible to take up the vacant niches in the neighboring countries’ markets.

The next link was with Karaganda region, where in the years of Independence the GRP has grown 585 times to reach KZT 2 trillion. From coalmining province it has evolved into a powerful industrial center of Kazakhstan. Produce of the industrial giants - JSC "Arcelor Mittal Temirtau", "Kazakhmys", "Silicium Kazakhstan" is well known and in world demand today. Within the two years of the new industrialization program productions were launched of specialized agro-aircraft, panel radiators, plastic pipes, LED lamps.

And recently, "Arcelor Mittal Temirtau" commissioned a new generation blast furnace to upscale the whole process of iron and ferroalloys smelting.

With the commissioning of the plant of LLP "Sary Kazyna" the country's copper belt capabilities expand - production of 99.99% copper. The plant was built in the village Konyrat, and in the next year the production capacity is to be 10 tons of copper per year. It gave work to 210 local residents.

The oblast governor Serik Akhmetov says by 2015 more than 20 major new enterprises are be put into operation in Karaganda region to open about four thousand jobs. The hydrometallurgical plant of LLP "Sary Kazyna" is a start to other new industries in processing of technogenic mineral formations with low base metals content.

Economics of Kyzylorda region has always been considered mainly resource-based, but its structure has changed of late, largely thanks to the breakthrough projects. Today Kyzylorda boasts rapid development of oil and gas, uranium industry, the construction industry.

In the link-up the region presented the country’s largest and first in the south sulfate plant built by JSC "NAC "Kazatomprom" in Zhanakorgan district in cooperation with foreign partners to annually produce 500 tons of 98 percent sulfuric acid for the needs of nuclear industry, to be used in underground leaching in uranium extraction. The production worth is KZT 32 billion 497 million, and local content in it is 58%.

 The region’s governor Bolatbek Kuandykov stressed that thanks to the PAIID the traditionally agricultural region is now firmly on industrial development track.

World technologies and domestic feedstock

East Kazakhstan is another industrial giant that linked up to the teleconference. It hosts main non-ferrous metal businesses – Ulbinsk metallurgy works, "Kazzinc", Ust-Kamenogorsk Titanium-Magnesium Works, large engineering plants - the company "Sam-AZ", "Daewoo Bus Kazakhstan." The company JSC "Asia Auto" set up assembly of more than 20 models of cars. With the Nuclear Technology Park and the Institute of Nuclear Physics East Kazakhstan is developing into a center of HT knowledge-driven industries.

Yesterday during the teleconference Semipalatinsk leather and fur factory was launched, upgraded on PAIID to enable the oldest companies in the region to produce new kinds of competitive import-replacing products, reduce manual labor. The reconstruction was carried out with the support of Kazakhstan Development Bank, the size of the loan is KZT 3.3 billion.

West Kazakhstan region, that over 20 years of Independence saw a 12 times growth of output in the manufacturing sector, has solved the energy shortage problem, developing engineering, transport industry, shipbuilding and construction materials production.

The site for the meeting online was Karachaganak gas condensate field, which is understandable: in hydrocarbon reserves, it is considered a largest in the world. And in terms of innovation Karachagak sets the pace of technological progress. Other industries are developing in the region.

The governor Baktykozha Izmukhambetov’s progress report says that on the 2010-2013 industrialization program 29 projects have been implementation worth over KZT 250 billion. This year 11 new productions were commissioned, one of which is gas treatment unit on Chinarev field.

Almaty region marked the Day of industrialization by commissioning of a large meat-processing complex of LLP "Bayserke-Agro" in Talgar district. As reported by the oblast governor Ansar Musakhanov, this year in Zhetysu 10 productions were commissioned that are on the regional map of industrialization. Among them is assembly of Hyundai trucks and buses , development of industrial batteries in "Kaynar-AKB" LLP, a greenhouse by the eponymous LLP the area of 3.65 hectares.

In the same series is a modern meat processing complex "Bayserke-Agro" worth KZT 1.3 billion to produce about 10 types of block meat and sausage products. In the current year on PAIID a dairy was built and another meat processing complex to add to the food belt around Almaty.

The venue of live link-up with Almaty was the subway station "Alatau". The mayor of Almaty Akhmetzhan Yesimov reported 28 implemented projects totaling KZT 258 billion, The most significant of which is the subway, the construction of the century for Kazakhstan. On the day of its launch Nursultan Nazarbayev became an honorary passenger of its first train along with other guests, including foreign ones.

Astana – the driving force of economy, was a participant of the teleconference too. In the 20 years the production volume in the capital has reached KZT 112 billion, the attracted investment over the last year exceeded KZT 400 billion. Over the past two years 6 projects were implemented on the PAIID worth KZT 16 billion.

Before noon yesterday another industrial facility was launched in Astana - a "Talgo" passenger railway carriages manufacture

The regionsgains

 Pavlodar region meets the Independence anniversary with good indices in labor productivity in manufacturing - $102 thousand per person. The region accounts for over 40% of the country's electricity, about 67% of all the produced coal. It wields a high development potential. 5 thousand JVs and home productions were set up there. The volume of industry went 256 times up to make KZT 844 bln. Foreign trade turnover exceeded $3.5 billion. In PIID frames 31 projects totaling KZT 123 billion were launched in the past two years that opened more than 3 thousand jobs. All in all, the region’s governor Bakytzhan Sagintayev says, by 2016, 168 projects will have been carried out to bring KZT1 trillion and open 10 300 new jobs.

The region largely contributes to the country’s energy independence, which is very important for the fast growing national economy. With the same end a new unit and boiler were installed at TPP-3 of JSC "Pavlodarenergo".

The next was Atyrau region, whose industrial production volume increased by 44% to make KZT 3 trillion 120 billion, 42% of which is thanks to non-primary sector. In the 20 years 130 businesses opened to give employment to 30 thousand people. Rubber and plastic products alone were produced the sum of KZT 4 billion 290 million, 22 projects were implemented during the 2 years of the industrialization map.

Nursultan Nazarbayev launched production of chemicals for the oil industry of LLP "Rauan Nalko", built in just over a year, the capacity of 4700 tons per year that will employ about 200 specialists.

According to S. Biljalov, North Kazakhstan oblast governor, 20 projects worth KZT 18 billion entered on the Industrialization map have already been commissioned. He promised to further develop the food industry, ensuring food security in the region.

The South-Kazakhstan region known for rapid development of a cotton-textile cluster presented continental quilts. LLP “Shymkent-Cashmere” was the third enterprise built in the premises of the free economic zone “Ontustik” fully on investors’ money.

Operated at full capacity the factory will employ 272 people and help settle many problems of local livestock farms, for it will process mainly local raw materials. Currently there are 4 million sheep in the South Kazakhstan region, so the company will have plenty of stock.

South Kazakhstan governor Askar Myrzakhmetov said that small and medium-sized businesses in the region were briskly developing. This year alone under the PAIID more than 1.5 thousand SMBs were created in the oblast giving job to 14.5 thousand people and 28 major projects were implemented. The program helped tap the region’s wealth and potential.

In the near future the grain and tourist region of Aqmola will become the center of new agricultural technologies. A factory making chemicals for plant protection “Astana - NAN Chemicals” was built in Stepnogorsk. The breakthrough project is made by world standards. The oblast governor, Sergey Dyachenko linked up right from its premises.

He said that under PAIID 43 projects were implemented worth 647 billion tenge. All the new productions put into operation make finished products and effectively tap production capacity. - Today we present the factory producing 15 million liters of pesticides and herbicides needed to increase grain yields. Production capacity will displace imports and satisfy the needs of not only the region but also throughout the country. 20% of production goes for export to Central Asia and Russia, - he added.

Nursultan Nazarbayev congratulated on the opening of the factory and said that pesticides were necessary for high yields.

Megaprojects the country takes pride in

Over 20 years of independence the economic and social life in Kazakhstan has changed essentially. Due to accelerated industrialization strategies, businessmen performed most ambitious projects, thousands of Kazakhstanis were taught new professions and got permanent jobs. Hundreds of new industries are boosting the national economy.

Soon the first in the CIS Moynak high-pressure hydropower station the capacity 300 million cubic meters of water on the Charyn River will be put into operation. It will supply the south of Kazakhstan with energy and stop its imports from Kyrgyzstan providing energy independence from the Central Asian United Energy System.

A 9-km diversion tunnel with 500 meter level differences creates powerful water pressure. As a result, consumption of water resources is only a quarter of a cubic meter per second per 1 MW of power, which is 15 times more efficient than any other hydroelectric plant.

The managing director of JSC Samruk-Energo, Esbergen Abitaev reported to the President on completion of the construction. “The Moynak HPP will provide the entire southern region with electricity”, - he said.

President Nursultan Nazarbayev congratulated the region on the construction of this long-awaited facility, which will effectively fill the shortage of electricity.

A most important historical event was the opening of the International Center for Transfrontier Cooperation “Khorgos”, which is to become the largest trading business, transport and logistics hub by 2016. It will integrate Kazakhstan into the global transportation network and provide new transport links between Asia and Europe.

“Khorgos” is the largest Kazakh-Chinese project, the first in the world visa-free territory for citizens of RK and PRC. It already has 29 facilities built. Its operation will increase traffic freight along a new railroad line Zhetygen - Korgas, the construction of which, according to a Kazakhstan Temir Joly vice-president Eric Sultanov, was completed on schedule. 2 055 people will be working there, a residential village Nurkent was built for railroad men and servicing staff of the International Centre.

Nursultan Nazarbayev said that railway construction was always essential for any state. Independent Kazakhstan has built 1 300 kilometers of railtrack, including 390 km from the Chinese border to Almaty, which means new jobs and opportunities, freight traffic growth, economic development. Khorgos will grow into a large city for doing business, the President added.

In 2009 the governments of three states resolved to construct a railway line Uzen - the state border with Turkmenistan and complete and commission it record short time. It was put into operation on the day of the TV link-up. This is a window to international seaports cut through by our independent republic.

It will link Kazakhstan and central regions of Russia with Turkmenistan and Iran, the Persian Gulf, South and Southeast Asia. The annual trade flows in this area is estimated by experts at 8-10 million tons.

The head of state frequently says that railways are boosting economy. They should connect the country with all the regions. The completed project will not only complement road transportation but also give jobs to Kazakhstanis.

A new station Bolashak with modern infrastructure for customs and border services and social facilities has been already built there, Uzen station was expanded and modernized, the railway line is fully provided with electricity, fiber-optic communication.

The project worth 61.7 billion tenge is operated by JSC “NC “KTZ”, its vice-president Yermek Kizatov said that the new railroad would expand export and transit potential of Kazakhstan. More than 2 000 workers laid 146 kilometers of the road, built seven new stations and sidings, 86 man-made structures, 4 bridges. The line is fully ready for use.

Social priority

 Kazakhstani businessmen have been developing along with the country and over 20 years have turned into bold external market players from inexperienced entrepreneurs. Many domestic enterprises are committed to the so-called principle of social responsibility. Their partnership with the government is stepping up, one of the steps is a corporate social responsibility contest “Paryz” established by the head of state in 2008.

The mission of this noble undertaking is to form and increase corporate social responsibility to further improve the welfare of Kazakhstanis. Among selection priorities is a new model of doing business aimed at the development of infrastructure, expansion of social services. Another criterion is care of social well-being of staff. In 2011 the three original categories - Best collective agreement, Best Social Project and Best socially responsible business were complemented by nomination “Contribution to environmental protection”.

It is encouraging that each year the number of companies meeting Paryz requirements increases. Over four years of its existence, 1 661 applications from all regions of the country have been submitted for the contest. 109 businesses were recognized best of the best. This year, 610 companies claimed the right to receive prizes.

The names of socially responsible companies were announced on the Industrialization Day. Grand Prix “Paryz” 2011 went to LLP “Tengizchevroil” (Atyrau region). The President handed a gold figurine to Tim Miller, TCO general director. In 2010 TCO allocated 2 billion 9 million tenge for the program “Igilik” and the bulk of these funds went to the reconstruction of water supply systems in Kulsary. This year, TCO allocated 116 million tenge for social investment programs to improve the quality of health care, education and training in the Atyrau region.

These actions should be an example for other companies. The awarding ceremony was also attended by Prime Minister Karim Massimov and Cabinet members. The “Best social project of the year” nomination was won by JSC “NAC “Kazatomprom” (Astana) and LLP “Kazakhturkmunai” (Aktobe), “The best collective agreement” by LLP “JV “Kazgermunai” (Kyzylorda region) and LLP “Krendel” (Pavlodar region), “The Best socially responsible company” by JSC “Ivolga-Holding” (Kostanai region) and “Abzal&C” (Kyzylorda region), “Contribution to environmental protection” by LLP “PetroKazakhstan Oil Products” (South Kazakhstan) and LLP “Kublei” (West Kazakhstan).

Flagships of domestic production

The Presidential “Altyn Sapa” (gold quality) contest is not only prestigious; it shows that the quality of goods and services meets international standards, for the contest is patterned on the European Quality Award, and criteria are consistent with the CIS award for achievements in quality products and services.

An expert commission thoroughly assesses the role of company management, policy and strategy for quality, consumer evaluation of products and services. Altyn Sapa challenges companies to improve the quality of goods and services, introduce modern management practices to meet international standards and saturate the country’s market with high quality and competitive products.

The contest was first held in 2006 and over this time the number of participating enterprises, which are not ashamed of their products is steadily increasing.

During 6 years 785 companies were contenders for the award. This year, 232 companies contended in two categories – SMB entity and large business entity and in three nominations -Best Company for production purposes, Best company producing consumer goods, Best service provider.

In 2010 the head of state established two more special prizes in addition to Altyn Sapa -Industrial breakthrough and Innovative breakthrough. Its winners are best in the country companies in terms of export orientation, productivity, innovation, with highest indicator of gross value added.

Yesterday the President awarded the board chairman of Kazzinc, Nikola Popovic for Industrial breakthrough. The company has invested more than $ 800 million in its electrolytic copper smelter plant, the full capacity of which is 75 thousand tons of cathode copper per year.

A special prize “Leader of industrialization” was given to Kazakhstan Railways; Nursultan Nazarbayev congratulated its chairman Askar Mamin on the company’s innovation portfolio of more than 14 projects that are underway together with world leaders in engineering.

The “Best Company for production purposes” is LLP Kaynar-AKB from Almaty region (large business) and LLP Amitech Astana from the capital city (SMB). The high quality of goods produced by JSC “Kostanai Flour Mill” and LLP “Production and Commercial Firm “Kazakhstan Texti Line” (Almaty region) is confirmed by the award in “Best enterprise producing consumer goods”. JSC “Halyk Bank of Kazakhstan” (Almaty) and “Research and Production Company “Ergonomics” (Karaganda region) were awarded prizes in the category “Best service provider”.

These contests give a powerful impetus to domestic companies to create new high-tech industries and lift the national economy onto a higher level.

Astana facilities and projects

The same day, President Nursultan Nazarbayev took part in a ceremony for opening the country’s first plant to make Tulpar-Talgo passenger railway cars in Astana. The head of JSC “NC “KTJ”, Askar Mamin shared on main technical characteristics of the plant, plans of localization and development of high-speed passenger traffic. The new production will help reduce twice the travel time on interregional destinations.

The head of state noted that the plant Tulpar-Talgo was a wonderful gift for the Independence Day and by 2015 its cars would be used throughout Kazakhstan to significantly increase efficiency of our transportation system.

The plant was built together with Spanish partners. Its planned capacity is 150 passenger cars a year, its worth is 8.8 billion tenge. The plant will produce 18 -, 12 -, 10-seater coaches, as well as 6-seaters for passengers with disabilities. The average cost of a car varies from 700 to 800 thousand euros depending on the modification. They are adapted to climatic conditions of Kazakhstan, and their structural speed exceeds 200 km per hour. The first trains will run from Almaty to Petropavlovsk, Almaty to Aktobe, Astana to Kyzylorda and back and on other popular routes.

According to Tulpar-Talgo general director Stanislav Podavets, technical supervision will be performed by Spaniards to ensure compliance with European standards, the local staff was trained at Spanish factories and the company plans to create 366 new jobs to operate at full capacity.

President Nursultan Nazarbayev also visited a new office complex “Emerald block” on the Water-Green Boulevard of the capital. The buildings have 37 and 45 floors, the total area is 112 330 square meters. The center meets all the requirements of modern business life of the city. It provides comfortable offices and easy parking, transparent walls and roof do not cut light flows filling a three-story lobby space. The new business center can accommodate simultaneously more than 15 thousand people. Latest technologies were employed in the construction of the “Emerald Block”. The facility’s architecture has many unique features: from the 32nd floor, the area of each subsequent floor grows and at the top the building is asymmetrical deviating by 15 meters.


                                                                             

                                                                      Rysty Alibekova, Asel Mukanova, Mariam Turezhanova, Vladimir Kuriatov, Zhiger Abenov

                                                                                                                                           Photo: Sergey Bondarenko, Bolatbek Otarbaev

 

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