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| The Union of Mechanical Engineers of Kazakhstan reacted with bewilderment to media reports regarding domestic manufacturers of agricultural machinery. This information is untrue and damages not only the reputation of an entire industry of domestic manufacturers, but also discredits the state policy of industrialization as a whole. Even more puzzling is the fact that last year, when visiting the AgromashHolding JSC plant, the leadership of the Ministry of Agriculture, on the contrary, noted the high degree of localization and organization of production. Quote: “We will only work with people like AgromashHolding” (you can read about it here). Machine-building enterprises of Kazakhstan produced products totaling 2019 billion tenge in the first half of 553 alone. As for agricultural machinery, a whole range of agricultural machinery is produced in Kazakhstan. The Lisakovsky enterprise Don Mar produces grain harvesters, which are almost 100% localized in the Republic of Kazakhstan. The Kostanay enterprise AgromashHolding has 90% localization in the produced seeders, over 40% in the produced combines and up to 100% in the produced components and assemblies (carts for reapers, pick-ups, counterweights for tractors, wear parts, feeder chamber, pulleys, etc. ). SemAZ LLP produces MTZ tractors, the Kokshetau enterprise KAIK produces seeding complexes, trailers, balers, attachments and other implements, AVAGRO has launched the production of sprayers, etc. More than 2500 permanent jobs have been created in the agricultural machinery industry alone, and this does not count how many additional jobs the industry creates through the multiplier effect in related industries. The Union of Mechanical Engineers reminds that manufacturers of tractors and combines in Kazakhstan have signed an agreement on industrial assembly, which imposes mutual obligations on localization on agricultural machine manufacturers in exchange for preferences. In case of failure to comply with localization requirements, enterprises are obliged to return all received government preferences. Machine builders in Kazakhstan are constantly working to increase the localization of spare parts and components in order to increase competitiveness and create additional jobs in their production, while the agricultural machine builders do not receive the subsidies in question. Subsidies are given to farmers who purchase domestically produced equipment, and are 2 and sometimes 3,5 times less than for similar imported equipment. Thus, we would like to emphasize once again that there is no priority in subsidizing domestic equipment over imported equipment. |
| Union of Mechanical Engineers of Kazakhstan |