On April 30, 2025, a new manufacturing facility aimed at supplying Kazakhstan’s railway sector with essential components was officially launched in the city of Ekibastuz with the financial support of Industrial Development Fund JSC. As part of this investment project, the Fund supported the acquisition of state-of-the-art, high-tech equipment.
The event was attended by Rinat Gapparov, Chairman of the Management Board of Industrial Development Fund JSC; Ersayyn Nagaspayev, Minister of Industry and Construction of the Republic of Kazakhstan; Asain Baikhanov, Akim of Pavlodar Region; and Sergey Pavlinger, Chairman of the Management Board of Railways Systems KZ LLP.
“We are systematically implementing industrial projects on a programmatic basis. The commissioning of this new facility, focused on developing the country’s railway industry, is yet another confirmation of that approach. I would like to note that our support for domestic manufacturers includes both assistance in launching new enterprises — as clearly demonstrated by this industrial complex — and the modernization of existing production facilities in the processing and infrastructure sectors. The cornerstone principles of the Fund’s corporate policy are economic efficiency and social orientation, meaning significant increases in tax revenues, the creation of hundreds of new jobs, the emergence of new domestic products, and the growth of Kazakhstan’s export potential,” stated Rinat Gapparov, Chairman of the Management Board of Industrial Development Fund JSC.
The new facility includes a forging and bandage production complex — an enterprise unique to Kazakhstan—aimed at supplying the entire railway sector with domestically manufactured rough locomotive bandages, gear wheel blanks, rough locomotive and wagon axles, and rolled wheel centers. As early as May 2025, the plant will begin mechanical processing of railway wheels; axle production will follow in September, and the manufacturing of bandages and forged components is scheduled to begin in May 2026. The total production capacity of the plant is 160,900 units per year, meeting international industry standards and significantly reducing the country’s dependence on imports. The launch of the facility will create 800 new jobs.
“I would like to express my sincere gratitude to Industrial Development Fund JSC for their comprehensive support in implementing this large-scale project. We can clearly see that the government is making substantial efforts to develop new industrial capacities in our country. As of today, we have already built seven plants in Ekibastuz. We manufacture 127 types of products. In Petropavlovsk, we have established production of 12 types of rolling stock, including passenger units. The government’s policies and the favorable investment climate have enabled us to contribute meaningfully to Kazakhstan’s development and industrialization,” noted Sergey Pavlinger, Chairman of the Management Board of Railways Systems KZ LLP.
On the same day, a ceremonial capsule was laid at the construction site of a future electrometallurgical plant scheduled to launch in 2028. This plant will produce 1 million tonnes of steel annually and create more than 1,000 new jobs.
Another important development milestone is the start of construction on a modern foundry, which will produce up to 20,000 tonnes of cast products per year—more than 50 types of castings. Commissioning of this facility is scheduled for 2026.
It is worth noting that Railways Systems KZ LLP includes facilities in Ekibastuz and Petropavlovsk, specializing in the production of rolling stock and components for railway track infrastructure.
With the commissioning of these new manufacturing units, the company will become Kazakhstan’s first full-cycle railway engineering holding—ranging from steel production to finished goods, including freight and passenger cars, solid-rolled wheels and wheelsets, turnouts, and cast parts.
The launch of the three new plants under Railways Systems KZ LLP is expected to create over 2,000 new jobs, increase tax contributions to the national budget, and strengthen the country’s industrial capacity.
