JSC "Industrial Development Fund financed the construction of a plant for the production of forging and bandage products in the city of Ekibastuz
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JSC "Industrial Development Fund financed the construction of a plant for the production of forging and bandage products in the city of Ekibastuz

JSC "Industrial Development Fund financed the construction of a plant for the production of forging and bandage products in the city of Ekibastuz

13.07.2022

The Kazakhstan Association of Railways Systems KZ in Ekibastuz, Pavlodar region is waiting for a new round of development. On July 11, at the site of LLP "Railcast" it was announced the start of the project for the production of forging and bandage products.

This project was presented to President Kassym-Jomart Tokayev on November 4, 2021 during his working trip to Pavlodar region, and now its practical implementation has begun.

"Strong production is one that does not depend on single customers. As the experience of wheel production has shown, the main moderator is the market. Having worked in this area for a sufficient amount of time, we clearly understand how and what will be implemented. Over the past 30 years, no one has created anything like this For Kazakhstan, this enterprise is a unique project: modern technologies used in production make it possible to produce products with a quality superior to existing analogues.For the enterprise, a quality management system has been developed that meets international standards, with the introduction of elements of Industry 4.0, which will be integrated into production in the process its launch and the plant reaching its design capacity,” says  Sergey Pavlinger, founder of the Railways Systems KZ association. – I am not afraid to say that the state provides us with unprecedented support: direct long-term financing in national currency, subsidizing interest rates, exemption from duties and VAT on equipment purchased under the project, as well as a soft repayment period of the loan. These are very important things for us."

From left to right: Kokrekbaev Marlen Karimovich, Skakov Abylkair Baktybaevich, Pavlinger Sergey Vladimirovich

The implementation of the project became possible thanks to state support and the result of the work of the Kazakh-German working group on trade and economic cooperation.

The new enterprise will create 366 new jobs. The first 100 will appear before the full-scale launch in 2024. Particular attention in the process of project implementation will be paid to the training of personnel from among Kazakhstani youth, a training program for young specialists is planned. The railway association also plans to build a steel plant with a capacity of up to one million tons of steel per year.

Akim of Pavlodar region Abylkair Skakov took part in the process of launching the construction of the plant  . Akim added that the complex will expand the production potential of the region.

From left to right: Aidapkelov Nurbolat Sergalievich, Pavlinger Sergey Vladimirovich

"Through such projects, it is planned to diversify the economy of Ekibastuz and reduce the city's dependence on the fuel and energy complex. Now a solid foundation is being created for the local railway association. Proof of this is the fact that 73 percent of the superstructure of the tracks is produced in Ekibastuz," Abylkair Skakov emphasized.

The new production specializes in the production of three product groups:
  • draft tires and rings for locomotives;
  • gears, wheel centers and deformation tools;
  • draft locomotive and wagon axles, forged products.

The enterprise noted that the production capacity is 88,000 rough tires for locomotives, 27,000 blanks of large gears and more than 9,000 forged products per year. The final indicators are 160,900 items worth 46.5 billion tenge. The production capabilities of the plant are provided with the most modern automated equipment. The project, the total investment in the production of which is 73.2 billion tenge, is being implemented with the support of the Industrial Development Fund.

"Today, the implementation of an important project has begun: it is export-oriented. Today, it is a unique plant with a full production cycle, which has no analogues in the EAEU space. We hope that the project is being successfully implemented. The Industrial Development Fund provides financing for the purchase of modern equipment. Equipment in mainly from Europe, is high-tech and meets all the necessary standards. The project is one of the largest in the portfolio of the DBK group," said  Nurlan Baibazarov, Chairman of the Board of the Industrial Development Fund JSC.

The main objectives of the project implementation are to meet the needs of enterprises of the Republic of Kazakhstan and increase the country's export potential, since more than 70 percent of the production volume is export-oriented. Among other things, it is planned to actively implement a corporate social responsibility program: encouraging the voluntary relocation of young professionals to a region with a high potential for socio-economic development, as well as building housing for young professionals.

The company has also developed an action plan for environmental protection and environmental safety. The implementation of this project in the current difficult world situation proves that the Republic of Kazakhstan is the basis of stability and a calm investment climate.

For reference:  The Railways Systems KZ Association was established in the Republic of Kazakhstan in 2012. Railways Systems KZ today unites five innovative industrial enterprises producing a wide range of products for railway transport. The enterprises employ over 2.2 thousand people.

The enterprise was created with the support of the state program of accelerated industrial and innovative development (FIID) of the Republic of Kazakhstan. The amount of private investment in the project amounted to 110 billion tenge.

The association includes:

  • LLP "Prommashkomplekt" - production of solid-rolled wheels for railway transport;
  • LLP "RWS Wheelset" - production of railway axles, formation and assembly of wheel sets;
  • LLP "PROMMASH.KZ" - production of turnout products;
  • LLP "RWS Binding" - production of all fastening elements of the superstructure of the track;
  • LLP "RWS Concrete" - production of reinforced concrete beams and sleepers.
Source:  https://tengrinews.kz/article/zavod-vyipusku-kuznechno-bandajnyih-izdeliy-zapustyat-1805/