Industry of Kazakhstan: fuel, chemical, coal, oil

Kazakhstan is one of Russia's leading economic partners. Both states have close historical economic ties, which can be further strengthened by the further integration of states within the framework of the EAEC. Kazakhstan is Russia's most important partner in the exchange of industrial products. What is the specificity of the manufacturing branches of the economy of the Republic of Kazakhstan?

Leading industries of the Republic of Kazakhstan

The industry of Kazakhstan is represented by several leading segments:

- The coal industry;

- metallurgy;

- fuel and petrochemical industry;

- the chemical industry;

- the food industry;

- light industry;

- manufacture of building materials.

Let's consider their specifics in more detail.

Coal industry

The coal industry of Kazakhstan is one of the most large-scale industries not only in the RK, but also in the entire economic space of the EAEC. The country is among the leaders in terms of coal production per capita, as well as in reserves. Its largest reserves are concentrated in Central Kazakhstan, as well as in the North-East of the state. Much of the coal is exported.

In the opinion of experts, the RK suffers some shortage of coals belonging to the category of varietal, most commonly used in the communal sphere, as well as in enterprises where the boiler-houses function. To cover the needs of the country's economy in this type of coal, expansion of production capacities in the corresponding segment is possible. In particular, this may be an increase in the intensity of production in the Pavlodar region. Coals lying here are characterized by a high degree of grade, they are easy to enrich, the costs of obtaining them from the bowels are relatively low.

Metallurgy

Among the leading industries of the Republic of Kazakhstan - non-ferrous metallurgy. Kazakhstan produces excellent quality copper, zinc, titanium, various rare earth metals. Production can be made out in the form of hire. The RK is among the world leaders in copper production, most of it is exported to Western Europe. Kazakhstan is a significant player in the world gold market. There are more than 170 deposits in the country.

The metallurgical industry of Kazakhstan is also developed in the segment of output from iron ore. The RK is among the world leaders in the reserves of the corresponding breeds. At the same time, a large part of the reserves are classified as readily available. The main volumes of iron ore mined in Kazakhstan are exported.

Metallurgy is one of those industries in the Republic of Kazakhstan, in which very close ties are established with Russian enterprises. In many respects this is due to the fact that a significant part of the corresponding communications was established even under the USSR. Between the enterprises of the Kazakh SSR and the RSFSR, in this way, an active exchange of raw materials, metal, and billets was carried out. In many ways, the relevant links are still in effect. There are all prospects for their further strengthening, given that Russia and Kazakhstan are now more likely to integrate economically even more economically within the framework of the EAGE.

Fuel and petrochemical industry

The oil industry of Kazakhstan is another important branch of the economy of the state. The RK produces the widest range of products of the appropriate type - gasoline, diesel and boiler fuel, kerosene for aviation and many other types of petroleum products. This industry is adjacent to the developed petrochemical segment. The country produces various types of plastics, fibers, tires.

The peculiarity of the development of the oil industry in Kazakhstan is that it is an example of successful integration of the state and private enterprises. The fuel industry of Kazakhstan is represented not only by large corporations, but also by small and medium-sized enterprises. Numerous foreign investors also take an active part in the development of the petroleum industry in Kazakhstan. The fuel industry of Kazakhstan remains attractive for businesses from Russia, other EEA states, Western countries.

Mechanical engineering

Mechanical engineering is an example of another important industry of Kazakhstan. The state produces equipment for various purposes, machines, pumps. The enterprises of the machine-building industry of the RK actively interact with foreign investors - Russian, Western, representatives of the EAPC states - for attracting investments. Mechanical engineering in the Republic of Kazakhstan grew at a noticeable pace in the mid-2000s, some decline was in the crisis of 2008-2009. But the difficulties were overcome, and now the corresponding industry is among the stable segments of the state economy.

Mechanical engineering in the RK is a branch that has significant prospects due to the presence of quite large capacities - since the times of the USSR, which are not properly involved. Now the share of the relevant industry in the economy of Kazakhstan is small, it is several times inferior, in particular, to Russian indicators. However, given the successful attraction of investments, a significant increase in the dynamics of the output of machine-building products by Kazakhstani enterprises is possible.

Manufacture of building materials

The production of building materials is another example of a successful industry, which represents the industry of Kazakhstan. The state produces cement, pipes, slate, linoleum, various panels, ceramics and other products. The bulk of the building materials of the enterprise of the RK is produced at the expense of the national resource base.

Release of building materials in the RK - among the most dynamic industries. So, from 2008 to 2013, production of the corresponding type of products in Kazakhstan, according to some data, doubled. The dependence of the RK companies on imports, in turn, decreased. The government and business have identified new benchmarks for the further development of the industry. It is calculated that within the framework of existing innovative programs, support will be provided to the leading enterprises of the segment.

Chemical industry

The chemical industry of Kazakhstan is also significant for the economy of the state. Among its leading segments is the production of phosphorus. According to some estimates, Kazakhstan is among the CIS market leaders in its output. Also in the country there are large enterprises engaged in the production of chrome compounds, paint and varnish products.

The structure of exports of chemical enterprises in the Republic of Kazakhstan is such that in it the products of inorganic chemistry are predominant, characterized by low indicators of the technological limit. Also, Kazakhstan's tangible dependence on imports of chemical products remains. It is dominated, in turn, high-tech products - fertilizers, detergents, plastics. Thus, the chemical industry in Kazakhstan has a significant potential for modernization. In particular - in the aspect of import substitution.

Food industry

The food industry of Kazakhstan is among the most dynamic segments of the country's economy. The prevailing share in the structure of the relevant industry belongs to the processing of grain, the production of milk, bread, meat processing, the cultivation of fruit and vegetable products, the activities of fat-and-oil enterprises. Significant requirements of the RK for food imports remain. This can predetermine the prospects for further growth of the relevant segment as an instrument of import substitution.

The government of the country also plays a significant role in the development of the food industry in Kazakhstan. Thus, the Kazakh authorities have developed large-scale programs to support national producers. Primarily, this is subsidizing, reducing interest rates on corporate loans, facilitating the acquisition of fixed assets. It is expected that during the implementation of the initiative, several trillion tenge will be invested by government agencies in support of businesses. It is also planned to adjust a number of provisions of the tax legislation in order to optimize the interaction between the enterprises of the food industry and the state in the context of budgetary allocations.

Light industry

Kazakhstan's light industry is also developed. It is mainly represented by enterprises operating in the cotton segment. Studies show that the needs of the domestic market of the RK far exceed the current dynamics of output of light industry goods. Approximately 90% of the corresponding products in Kazakhstan are of imported origin. At the same time, in order to solve the tasks of import substitution, it is necessary, as economists note, to ensure the highest level of competitiveness of the industry. Resources for this, of course, there is. The matter is that the light industry of the Republic of Kazakhstan is characterized by a high level of equipment with modern equipment supplied by the world's leading brands, while in many other segments of the industry the depreciation of the corresponding funds is quite large.

The noted problem characterizing some manufacturing segments of the economy of the Republic of Kazakhstan, however, does not remain without attention of the government and business, it is being solved - along with other difficulties that characterize the industry of Kazakhstan.

Let's consider this aspect, as well as the prospects for further development of Kazakhstan's manufacturing industries.

Problems and prospects of industry in Kazakhstan

Above we noted that the industry of Kazakhstan in many segments is characterized by a rather high level of depreciation of funds. This problem is recognized by the business community and the state, measures are being developed for its effective resolution. Another complexity that characterizes the production branches of the Republic of Kazakhstan is the relatively low capacity utilization. This affects primarily the productivity of labor. The overall level of technological efficiency of industrial enterprises in the Republic of Kazakhstan is assessed as inferior to advanced industries in Western countries.

The noted problems are planned to be solved within the framework of a number of large-scale initiatives - such as, for example, the government program "Productivity 2020". It is aimed both at supporting existing businesses and opening new industries. Through this program, companies representing various industries in Kazakhstan can benefit from government support. To do this, they need to show that they, firstly, have a development strategy, and secondly - the desire and resources that can ensure compliance of activities with the state's tasks of modernizing the economy.

Tasks for the development of industry in Kazakhstan

The Government of the Republic of Kazakhstan faces a number of urgent tasks, without the solution of which the effective development of industry in Kazakhstan is not easy. Let's study their specifics.

First of all, the government should form a long-term policy in the field of industry, which should be based not only on the initiatives of the authorities, but also on business and the scientific community. This line of activity should be aimed at structural modernization of industrial enterprises operating in the Republic of Kazakhstan.

Another important aspect of industrial development in Kazakhstan is technological modernization. It is assumed that it will be held simultaneously at several dozen largest enterprises. The current course of modernization, possible difficulties in its implementation will be analyzed, and the program "Productivity 2020" will be adjusted based on the data received. A significant role in the implementation of this area of activity will be played by scientific institutions.

Modernization of Kazakhstan's industry also requires the training of new personnel - especially in the field of management. The competence of management is one of the key factors for the success of any enterprise. High-tech fixed assets - this is only one of the conditions. It is also important that at the head of the firm there are responsible and highly professional managers. Similarly, the issue of the training of qualified personnel is also in the field of directly production sites at enterprises. Required experienced competent engineers capable of ensuring effective use of updated funds. We need qualified specialists to perform specific production tasks.

For successful implementation of the "Productivity 2020" program in the Republic of Kazakhstan, consolidation and effective allocation of financial resources are necessary. The budgetary burden on the state in this aspect should be reasonable, therefore, private businesses - working in the RK, in Russia and other countries of the EEMP, Western countries, should also be attracted as investors.

Many researchers believe that the modernization of the industry of the RK will also require further improvement of the legislative and legal framework regulating the activity of enterprises in the relevant sphere. It can concern the most various aspects of business activity - the conclusion of civil-law agreements, contracts with foreign partners, investment contracts, intellectual right, etc.

Experts expect that the authorities of the RK will ensure the development of industrial potential not only in the traditionally industrial regions of the country, but also in other parts of it, where so far the concentration of industrial enterprises is relatively small, but the potential for building new facilities is high. Thus, it is expected that not only the industry of Central Kazakhstan will develop, but also enterprises in the regions, which are still lagging in terms of the number of industrial facilities and the volume of their products.