Economic Cooperation - The Times Of Central Asia

Viewing results 1 - 6 of 216

Automobile Industry

Car Multimedia System Plant Launched in Almaty

The opening ceremony of the Kazakhstan Mobility Engineering Plant took place on October 30 in Almaty, Kazakhstan’s largest city. The new production facility is part of Astana Motors, Kazakhstan’s major automobile distribution and manufacturing company. In April last year, Astana Motors signed a memorandum of cooperation with South Korea’s Motrex Co Ltd., receiving the right to produce multimedia devices in Kazakhstan using the Korean partner's technology. The plant was launched in September 2024, and the first batch of its audio and video multimedia systems has already been delivered to the Hyundai Trans Kazakhstan plant for installation on Tucson and Elantra cars. Speaking at the opening ceremony, Minister of Industry and Construction of Kazakhstan, Kanat Sharlapayev, emphasized that multimedia systems are high-precision production requiring first-class specialists' competencies in digital technologies. “Our key goal is to create a production cycle with a high share of [production] localization [inside Kazakhstan]. And we will make maximum use of domestic raw materials and components. That is why Kazakhstan Mobility Engineering is important for the country.” Motrex CEO Junseon Kim also stressed the importance of local production: "Our goal is to closely cooperate with our partners to increase local production of components and leadership in the assembly of multimedia devices. The partnership will allow us to respond quickly to local needs, create jobs, and support Kazakhstan's economic growth." The Kazakhstan Mobility Engineering plant is part of the Astana Motors Engineering Technopark, constructed in the Industrial Zone of Almaty to produce automobile components. The technopark will also open a car seat manufacturing plant, a rubber and plastic products manufacturing plant, and a logistics hub. Its products will be supplied to the Hyundai Trans Kazakhstan plant and other automobile plants in Kazakhstan. Astana Motors has also signed a memorandum with Sanico Electronics, a South Korean manufacturer, to obtain the right to produce motherboards and cases for multimedia systems. In other news, Kazakhstan’s national company, Kazakh Invest, and KIA Qazaqstan discussed projects to produce original South Korean auto components for KIA cars in Kazakhstan. The parties considered cooperating with South Korean companies SJG Sejong and Seoyon E-Hwa, the original manufacturers of seats, bumpers, mufflers, and other components for KIA cars. Representatives of the companies expressed interest in implementing investment projects in Kazakhstan, emphasizing the strategic importance of localizing the production of automotive components in the country. A full-cycle plant to produce KIA cars is currently under construction in Kazakhstan’s Kostanay. The new plant will cost about $200 million and have a production capacity of 70,000 vehicles annually. This project is KIA's first direct investment in a joint venture to construct a plant outside Korea. At a government meeting on October 29, Minister of Industry and Construction Sharlapayev said that from January to September 2024, Kazakhstan produced more than 82,000 cars.

WTO

Turkmen Business Prepares for WTO Integration

Ashgabat recently hosted a two-day seminar on Turkmenistan's prospects for joining the World Trade Organization. The event, organized by the Ministry of Finance and Economy and the International Trade Center (ITC), brought together representatives of the country's private sector and government agencies. ITC international experts Daria Karman, Alyson Hook, and Nurlan Kulbatyrov shared practical integration experience into the global trading system with the participants. Special attention was paid to Kazakhstan, whose path to the WTO can serve as an illustrative example for Turkmenistan. Among the key topics of discussion were the need to adapt legislation to international standards, reform trade policy, and modernize mechanisms for regulating foreign economic activity. For Turkmen entrepreneurs, accession to the WTO opens access to world markets and creates favorable conditions for increasing exports. However, this will require a significant increase in local enterprises' competitiveness and the introduction of modern production technologies. According to the event organizers, the active discussion of integration processes testifies to Turkmen business's serious attitude toward international cooperation. Such seminars are part of Turkmenistan's comprehensive preparation for accession to the WTO. In the future, this should create additional incentives for entrepreneurship and increase the country's export potential. Representatives of government agencies and the business community actively participated in the seminar, which confirmed Turkmenistan's interest in deepening integration processes and expanding international trade cooperation.

Banking

Italian Bank to Enter Kazakhstan Market

An Italian state bank, Cassa Depositi e Prestiti, plans to establish a new credit line in Kazakhstan, as announced by Edmondo Cirielli, Italy’s Deputy Minister of Foreign Affairs and International Cooperation. Cirielli made the announcement during his meeting with Arman Shakkaliyev, Kazakhstan’s Minister of Trade and Integration, on October 29 in Astana. Cirielli stated: "We are confident that our relations will only strengthen in the trade and economic sphere. Kazakhstan occupies a key position in Central Asia and connects Europe with the region. We plan to open a credit line of our state bank, Cassa Depositi e Prestiti, in Kazakhstan.” Minister Shakkaliyev noted that Italy is Kazakhstan's third-largest trading partner among European Union countries. In 2023, trade turnover between the two countries amounted to $16.1 billion, 7.8% more than the previous year. Exports from Kazakhstan to Italy reached $14.8 billion, and imports stood at $1.2 billion. In January-August 2024, bilateral trade increased by 33%, reaching $13.8 billion, with Kazakh exports rising by 36% to $12.9 billion. Astana hosted the 9th Kazakh-Italian working group meeting on economic and industrial cooperation on October 29. Deputy Minister of Foreign Affairs Edmondo Cirielli headed the Italian delegation. The meeting focused on increasing the transportation volume along the Trans-Caspian International Transport Route, which will create additional opportunities for bilateral trade. The parties also confirmed their interest in developing the transport and logistics sector. Kazakhstan proposed expanding cooperation in the agricultural sector, including fruit and vegetable growing and grain processing and expressed its readiness for long-term partnerships with Italian grain processors and the supply of high-protein wheat to the Italian market. Italian companies were encouraged to invest in Kazakhstan's renewable energy sector and the Khorgos Special Economic Zone, strategically located on the Kazakh-Chinese border.

Nuclear Energy

Kazakhstan’s Energy Ministry Discusses Nuclear Plant Construction With South Korea

From October 22 to 25, a delegation from Kazakhstan led by Energy Minister Almasadam Satkaliev visited South Korea. As part of the visit, meetings were held with representatives of leading Korean energy companies and government agencies. The key topics of the talks were cooperation issues in the nuclear power industry. In addition, at the meeting with the South Korean Minister of Trade, Industry, and Energy, they discussed opportunities to expand cooperation in the oil and gas sector and renewable energy. Satkaliev also met with the management of major Korean companies, including Doosan Enerbility, Korea Hydro & Nuclear Power (KHNP), Korea Electric Power Corporation (KEPCO), Korea National Oil Corporation (KNOC), and Samsung C&T. During the talks, the parties considered the prospects of Korean companies participating in an international consortium, which Kazakhstan is studying as a model for implementing the project to build a nuclear power plant. As the minister specified, the final decision on this issue is expected in 2025. Negotiations with Doosan Enerbility concluded with the signing of a memorandum of understanding. This document provides for studying opportunities to localize the Korean company's operation in Kazakhstan and establish a representative office of the plant in Astana. Now, Doosan Enerbility cooperates with Kazakhstan to construct a gas turbine power plant with a capacity of 1000 MW in the Turkestan region. In addition, the company, together with KEPCO KPS, is conducting a technical audit of Kazakhstan's energy infrastructure to reduce emissions and extend the life of the equipment. After the October 6 referendum, in which Kazakhstanis supported the construction of the first nuclear power plant, President Kasym-Jomart Tokayev proposed the creation of an international consortium to implement the project. He emphasized that this project requires the participation of the world's leading companies with modern technology and experience to ensure the safety and efficiency of construction. Russia's Rosatom, South Korea's KHNP, France's EDF, and China's CNNC are considered potential participants. These companies are expected to work together to transfer technology and attract investment, which is particularly important for Kazakhstan as it seeks to reduce energy dependence and strengthen the country's energy security. Construction of the plant is planned to begin on the shores of Lake Balkhash and be completed by 2035. A final decision on the structure of the consortium is expected by 2025.

Tourism

Turkmen-Iranian Tourism Festival Held in Ashgabat

The Second Turkmen-Iranian Tourism Festival united representatives from the two states' tourism industry, cultural figures, and craftsmen. The opening ceremony was held in the Exhibition Hall of the Academy of Arts of Turkmenistan in Ashgabat. During the ceremony, visitors familiarized themselves with Iran's rich tourism potential, saw the works of Iranian craftsmen, and evaluated the proposals of Turkmen tourist companies. The festival's business program included a professional conference. Experts discussed the prospects of bilateral cooperation and new opportunities for increasing tourist flow between the countries. The organizers paid special attention to the cultural component of the event. The festival is designed to strengthen cultural ties between Turkmenistan and Iran and create a platform for the development of joint tourism projects. Earlier, the Academy of Arts of Turkmenistan exhibition hall hosted the opening of the Turkmen-Iranian Specialized Exhibition of Fashion and Clothing. The visitors could experience the latest achievements in Turkmenistan and Iran's fashion and textile industries. The first Turkmen-Iranian Tourism Festival was held in October last year. Visitors familiarized themselves with unique items of traditional folk crafts, handmade art products, national heritage, and modern trends of Turkmen and Iranian art masters.

International Cooperation

Daewoo To Invest $730 Million in Turkmenistan

South Korean company Daewoo Engineering & Construction has won a tender to build a fertilizer plant in Turkmenistan. The project is estimated to cost a trillion won (about $730 million). According to the company, the new plant will be located in Turkmenabat, 450 km east of Ashgabat. It will have an annual capacity of 350,000 tons of phosphate fertilizer and 100,000 tons of ammonium sulfate, and will include additional auxiliary facilities. After the completion of the main contract, final data on the contract's value and implementation terms will be published. The company has stated that implementing the project will allow Daewoo E&C to strengthen its presence in Central Asia and expand its activities in the petrochemical and agricultural sectors, infrastructure, and urban projects. In the future, the company intends to offer environmentally friendly technological solutions to further cooperate with Turkmenistan. Daewoo E&C noted that winning the tender was possible thanks to the support of the South Korean government, including during the official visit of President Yun Seok Yeol to Turkmenistan in June. The company's Chairman, Jeong Won-ju, also met with the Chairman of the People's Council of Turkmenistan, Gurbanguly Berdimuhamedov, in November 2022 during his visit to South Korea. The two sides signed a memorandum of understanding, cementing an agreement on close cooperation. Jeong Won-ju has visited Turkmenistan three times since then, which helped strengthen ties and successfully conclude negotiations. Daewoo E&C is aiming to become a leader in the global EPC (engineering, procurement, and construction) market. “We strive to participate in projects that contribute to a sustainable future,” a company representative stated. Turkmenistan is implementing several major projects with the participation of South Korean companies. Hyundai Engineering has agreed with state-owned Turkmengas to expand the Galkynysh gas field. This project includes the construction of a fourth gas desulfurization facility, making it the largest in the country's history. Korean companies have also been actively constructing and developing an oil refinery in Kiyanly. Projects to create “smart cities” are also being discussed.