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Car recycling in Kazakhstan to cost $425 million

24 june 2014, 19:43
Scrap metal reception "center" ©AKAB
Scrap metal reception "center" ©AKAB

Introducing recycling of used cars in Kazakhstan requires $425 million and about five years, Tengrinews reports citing an opinion of the president of the Association of Kazakhstan Auto Business (AKAB) Andrey Lavrentiyev. The concept of the project has already been developed and presented to the Ministry of Environment and Water Resources of Kazakhstan.

The problem of utilization of cars is very pressing for Kazakhstan. In 2013, First Vice-Minister of Industry and New Technology Albert Rau said that there were 3.5 million cars in Kazakhstan, with 2 million of them being over 18 years old. "In 5 years from now we will have around 2.5 million of these old cars," he said.

Lavrentiyev added that in the coming years the domestic market could reach the sales of 300,000 new cars per year amounting to $6 billion. 40 percent of these cars would be produced by Kazakhstan-based enterprises.

It is not the first time that AKAB calls to create a proper car recycling system in Kazakhstan to replace the virtually non-existent one. In 2013, AKAB studied the condition of the ferrous scrap metal reception centers in the country. They later said: "Well, of course no one expected to see here even a trace of a factory; but the sight of the “center” was shocking! A huge dump of rotting metal: reinforcement fittings, wheels, car carcasses, pipes. A 'Terminator cemetery'! One can shoot a post-apocalyptic movie right there."

Photo of the scrap metal reception "center" ©AKAB

AKAB also found that car recycling the way it existed in Kazakhstan did not prevent hazardous and explosive waste from being released into the environment – lead, acids, mercury compounds, technical fluids, fuel gases were not properly dealt with.

Besides, the scrap metal centers the AKAB surveyed did not practice an actual utilization of cars. All they were interested in was metal carcasses: "Do what you will with the rest," they said.  

In March this year Lavrentiyev said that it was likely that the utilization system would be put on proper tracks this year, but admitted that none of the state authorities had agreed to initiate the project. "We only need to figure out who will initiate it," he said, it can either be the central government or a local administration of the region where the problem is especially grave. 

So far there are still neither the legal framework, nor any car utilization centers in Kazakhstan.

Writing by Dinara Urazova, editing by Tatyana Kuzmina

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