Astana Motors will produce components for Hyundai cars in Almaty.
The other day in Seoul, as part of the official visit of the government delegation of Kazakhstan to Korea, Astana Motors signed an agreement with Youngsan Glonet Corp. Ltd. on granting the right to manufacture car seats using Youngsan technology and with Motrex Co Ltd., with the right to manufacture multimedia devices using Motrex technology.
At the contract signing ceremony, the chairman of Motrex Co Ltd. Mr. Lee Hyung Hwan thanked the Kazakh government and Astana Motors for their interest in cooperation and stressed that the Kazakh automotive industry is developing rapidly, and Motrex Co Ltd., in turn, has high hopes for the prospects for joint work on the production of multimedia in Kazakhstan.
“We are pleased to supply components for the production of Motrex multimedia systems for small-scale production at the Hyundai Trans Kazakhstan plant and subsequently for other Kazakhstani enterprises,” - said Mr. Lee Hyung-hwan.
Chairman of Youngsan Glonet Corp. Ltd. Mr. Park Yong Boom noted that the production of car seats will be an important step in the development of the Hyundai Trans Kazakhstan plant and the automotive industry in Kazakhstan in general.
“Today we signed a contract with Astana Motors and will continue to make more efforts to implement a project for the production of automotive components in Kazakhstan,” Mr. Park Yong Bum emphasized.
According to Artur Miskaryan, director of the automotive market monitoring and analysis agency, the creation of capacities for the production of auto components is a logical stage in the “growing up” of the automotive industry in any country in the world, which directly depends on the market capacity.
“The fact that new production facilities are emerging now, when the number of cars produced has exceeded 100, shows that, despite all the difficulties in the world market, the Kazakh auto industry continues to develop according to all the laws of the industry. It is clear that the localization of automotive components, on the one hand, requires a certain investment potential and regulatory stability. On the other hand, this process always entails the creation of new, skilled jobs, the growth of tax deductions, and, most importantly for the consumer, is the stabilization of prices,” – Arthur Miskaryan commented on the news about the localization of auto components in Kazakhstan.
He also added that in recent years, the domestic automotive industry has shown a consistently positive trend in both sales and production.
“Global and Kazakh market players are adapting to new working conditions, revising business models, and rebuilding logistics. Over the past year, 124 new cars were sold in Kazakhstan and more than 100 cars were produced, thus, in 2022, production in the country increased by almost a quarter.”
Recall that at present Astana Motors is at the design stage of construction on an area of more than 10 hectares in the Almaty Industrial Zone of a complex of factories for the production of car seats, polyurethane mats, wheel arch liners, mudguards and multimedia systems for Hyundai cars. The launch of the enterprises is scheduled for early 2024.
Investments in the construction of the production complex of auto components will amount to about 6,8 billion tenge, including about 0,9 billion tenge for the organization of multimedia production, up to 4,3 billion tenge for a plant for the production of car seats and order 1,6 billion tenge for an enterprise for the production of floor mats, fender liner, mudguards. The area of industrial premises - more than 7,7 thousand sq. meters. About 90 jobs will be created at the enterprises.