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Kazakhstan Temir Zholy to increase local content to $2 billion

11 july 2012, 17:57
0
Photo by Danial Okassov©
Photo by Danial Okassov©
Kazakhstan Temir Zholy intends to increase its local content to 300 billion tenge ($2 billion), Tengrinews.kz reports citing Kazakhstan Vice-Minister of Industry and New Technologies.

“Kazakhstan Temir Zholy is currently a flagship in terms of local content. They show amazing results. We started with 9 billion tenge ($61 million) and now we have already surpassed 30 billion tenge (204 million). Right now Kazakhstan Temir Zholy targets 300 billion worth of local content in procurement,” Sauranbayev said.

He reminded that procurement is divided into goods, works and services. Almost 100 percent of works and services are already performed by Kazakhstan companies for Kazakhstan Temir Zholy. “As for the goods, I think that when we sum up this year and the first halve of the the year we will see at least 70 percent of local content. We hope they will add up around 15 percent next year,” Vice-Minister said.

He also noted such projects as General Electric, Alstam, Talgo and stressed the importance of localization of production after such projects were launched. Especially since these are high-tech production and the Ministry is to establish production of high-tech parts jointly with Switzerland that has a vast experience in high value added production.

“We produce locomotives with companies like General Electric. The total number of parts is around 2,800. Only 500 of them are produced in Kazakhstan. That means that we still have some space for improvement in the parts production,” Sauranbayev said.

He noted that almost all the components for railroads are manufactured in Kazakhstan. “There was an issue with rail-tracks. But we've deal with it and we will start making them in Kazakhstan. That will help us get such big projects as construction of new railroads from the locally-made materials. It is currently at the testing stage. I think that we will get the final answers this year,” Vice-Minister stated.


By Aidana Ussupova

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