China’s company to invest $20m to build a TV sets assembly plant in Kazakhstan

ASTANA (TCA) — China’s HKC Corporation Limited’s shareholders visited the Industrial Zone of Kostanay in Kazakhstan and met with the Akim (governor) of Kostanay region Arkhimed Mukhambetov. HKC, one of China’s top five manufacturers of monitors and television sets, intends to build an assembly plant in Kostanay, Kazakh Invest National Company for Investment Support and Promotion reported on August 3.

The volume of planned investments at the initial stage is estimated at $20 million, and the planned capacity of the plant is 3 million units per year.

“The advantage of Kostanay for us is its close location to Russia and other CIS countries. We have big plans for this project and we want to look deep into the matter before launching it,” said the Vice President of the company Li Jin. “Our main goal now is to reach the global level. We have an assembly plant in Holland, which produces 2 million TV sets per year. The plant we are going to build in the CIS will have a capacity of 3 million TV sets per year.”

According to Chinese investors, the project involves creation of 500 jobs. Employees of the future plant will be recruited from among the local population. In addition, HKC Corporation Limited intends to participate in the dual training program for college students in the region.

Governor Mukhambetov supported the idea of launching a plant for production of TV sets in Kostanay and expressed hope for further cooperation. He reminded that a number of joint projects with Chinese companies are already being implemented in Kostanay region. For example, there is a project for production of cars and a comprehensive agro-processing project.

“We offer investors the territory of the industrial zone. We are already implementing 11 projects here. Most importantly, when compared with the Russian Federation, while we have the same rates for corporate tax, which is 20%, our VAT rate is lower than in Russia by 6%. They have 18%, and we have 12%,” said Mukhambetov. “We are ready to cooperate with your company. The market of electronics, where your company is operating, is a free niche in Kazakhstan. Most of electronics in our country, which is about 90%, is imported. Your project will allow to satisfy the demand for electronics not only in our country but in Russia as well. We are open to mutually beneficial cooperation and guarantee all-around support.”

As for the Kostanay’s Industrial Zone, it is almost finished today. Utility networks have been built, and a railway siding and motor roads are under construction.

“A plant for production of tractors and a plant for production of building materials are already being built here, and there is a project with China for deep processing of wheat which will be exported to China. As for HKC, they plan to produce TV sets and computers. I think everything will be set ready very soon, and we may launch the plant in 2019,” said the Deputy Akim of Kostanay region Meirzhan Myrzaliyev.

At the end of the meeting, the parties agreed to create a working group for the project and develop a road map for its implementation.

Sergey Kwan

TCA

Sergey Kwan has worked for The Times of Central Asia as a journalist, translator and editor since its foundation in March 1999. Prior to this, from 1996-1997, he worked as a translator at The Kyrgyzstan Chronicle, and from 1997-1999, as a translator at The Central Asian Post.
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Kwan studied at the Bishkek Polytechnic Institute from 1990-1994, before completing his training in print journalism in Denmark.

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