KazakhExport in media
HOW CARS ARE MADE IN KOSTANAY?
How does SaryarkaAvtoProm live today - the only automaker in Kazakhstan, which provides the market with all segments of equipment: from cars, light and heavy commercial vehicles to buses?
As far as 15 years ago, it was hard to believe that tens of thousands of Hyundai, JAC, Ssang Yong, Iveco and Peugeot cars, wheeled on the roads of our country, would be made in Kostanay, in the shops of the former diesel plant, which had been never put into operation.
After the collapse of the USSR, the production for 20 thousands of licensed Doits engines per year was discontinued at 85% of readiness. Some time ago, the “industrial hope” of the Kostanay Oblast, the construction of which was defended at the very “top” by Nursultan Nazarbayev, was a pitiful sight in the early 2000s.
Ninety ths. sq.m. in complete desolation, the expensive equipment was looted, the wind was blowing in the shops, until Agromashholding came there. In 2003, some equipment was restored, the building and workshops were put in due form and very soon they started producing some components, pumps for agricultural machinery engines. Further - more: assembly from vehicle sets of complete harvesters and other four-wheel vehicles furrowing a virgin soil. A bit later, facilities of SaryarkaAvtoProm were arranged in those workshops, they started assembling cars using the SKD technology (the English word: semi knocked down - semi-assembled). In the wake of the growth of the market, some ambitious production plans began to arise there by purchasing high-tech equipment for welding and body painting. It was at that time when the Company clearly understood that one could not get very far on a single screwdriver assembly of cars.
At present, 1500 persons are employed by the Kostanay engineering cluster. It produces all Hyundai cars represented in Kazakhstan, Chevrolet Niva, Peugeot as well as Iveco and JAC buses and trucks for the whole cycle. At the end of last year, the labor productivity amounted to KZT 121,6 mln. per worker. In 2017, 5912 cars were made there, almost three and a half times more than the year before last. Over 11 months of the then current year, the company produced 10704 cars in the amount of KZT 71,8 bln. The export direction and official dealers appeared in the EAEU countries and Tajikistan.
- In 2017, we exported cars amounting to more than 500 mln. KZT. Over 10 months of 2018, it was exported more than for the entire last year, in the amount of KZT 693 mln. From 2017 to the present, with the assistance of KazakhExport, the Company has been engaged in sending cars to Tajikistan under a contract for supply of 1000 JAC cars for a total amount of KZT four bln.” - comments Syrym Semeibayev, Director of SaryarkaAvtoProm LLP.
The Company acknowledges that several years ago, using the CKD production (the total cycle) of Nomad and Toyota Fortuner, there was a lot of difficulties but the Company would have not achieved much without the project.
We are the only ones in Kazakhstan who can weld and paint present-day cars, and we have excellent equipment and a professional team! - says the company management.
It was the transition to a small-scale production and the potential of the enterprise that allowed us to attract investors, who took a completely different look at the Kazakhstan auto industry.
New opportunities came to the Company together with an investor from the Celestial Empire - the State Company Genertec-China National Vehicles Import and Export Corporation (CMC)!
The turnover of the giant CMC Company exceeds $25 bln. a year, and, of course, they saw their prospects in SaryarkaAvtoProm, despite the time not being the best for the Kazakhstan car market. In 2017, the Chinese invested more than $20 mln., 17 of which were used for the purchase of additional equipment, the reconstruction of the welding shop and the assembly line for integrated body cars. The first benefit of cooperation is the complete production cycle of JAC S3 Crossover.
Currently, using the Japanese OBARA Equipment, a JAC S3 Crossover body is welded from 50 parts, after which it is painted on the modern automated line using YASKAWA MOTOMAN robots. This makes JAC S3 the most “localized” car in the country. No one has ever been so close to the full production of cars in the country like Saryarka AvtoProm. They succeeded in achieving a deep level of localization in the Enterprise in the minibus segment too. Iveco School Bus, or popularly called “schoolchildren”, has 51% of the Kazakhstan content.
At present, it is the highest percentage of commercial vehicles produced in the country. The work on preparing for the production of electromobiles and transport vehicles based on alternative fuel sources is on fast-forward. In general, the Enterprise faces the task of setting up an automobile production with a high export potential. To increase the localization and to obtain an export access is what fits in the Kazakhstan’s fourth industrial revolution.
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