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U.S. Company John Deere Launches Agricultural Machinery Production in Kazakhstan

American agricultural machinery giant John Deere has officially launched production in Kostanay, Kazakhstan, marking a milestone in the country’s strategy to localize industrial output and reduce reliance on imports. The new manufacturing line is based at the Agromash plant’s localization center and reflects the Kazakh government’s broader policy to support domestic manufacturing and develop the machine-building sector. A key driver behind this initiative was the government’s recent decision to end subsidies for imported tractors and combines, creating momentum for localized production. The agreement with John Deere, widely recognized as a global leader in agricultural equipment, emerged as a flagship example of this new direction. By partnering with Agromash, Kazakhstan’s largest machinery manufacturer, the venture will produce self-propelled, trailed, and mounted equipment adapted to local agricultural conditions. Local production is expected to help farmers modernize their equipment more affordably. Through a government-backed preferential leasing program with an annual rate of just 5%, supported by 120 billion tenge in allocated funds, over 3,200 farmers will be able to purchase new domestically produced machinery this year. “Kazakhstan's agricultural producers now have access to machinery on favorable terms. This not only simplifies modernization efforts but also boosts the development of the agricultural sector,” the government noted. Agromash President Dinara Shukizhanova credited the country’s economic reforms for making the collaboration with John Deere possible. The initiative is expected to generate jobs, introduce advanced technologies, and prioritize the training of a new generation of engineers and technical specialists. John Deere’s official representative in Kazakhstan, Eurasia Group, will handle sales, service, and implementation of digital agricultural solutions. Over the next five years, three modern service centers will be established across the country to support digitalization in agriculture. These hubs will offer technical support and training for agronomists, mechanics, engineers, and IT professionals, reinforcing the efficient use of modern equipment. In addition to John Deere, the Agromash plant currently produces agricultural machinery under the ESSIL, LOVOL, and DEUTZ-FAHR brands. With an annual production capacity of up to 5,000 units, Agromash supplies machinery nationwide, supported by a regional network that spans major agricultural areas from Almaty to Ust-Kamenogorsk. Deere & Company, the parent corporation behind the John Deere brand, is a U.S.-based multinational manufacturer of agricultural, construction, and forestry equipment, as well as diesel engines and heavy-duty transmissions. The localization of John Deere production not only reinforces Kostanay’s position as Kazakhstan’s leading hub for agricultural machinery but also represents a strategic move toward technological sovereignty, innovation, and a strengthened domestic agro-industrial sector.

Kazakhstan to Build $1.35 Billion Fertilizer Plant in Mangistau

Kazakhstan will begin construction of a major fertilizer plant valued at $1.35 billion, under an investment agreement recently approved by the government. The project aims to boost domestic fertilizer production and reduce the country’s reliance on imports. Strategic Industrial Partnership The facility will be built in the Mangistau region under a joint venture between Kazakhstan’s national gas company QazaqGaz and Turkish construction firm ESTA Construction. The new company, Qazesta Fertilizers Ltd., will oversee the project, which is expected to benefit from Mangistau’s favorable logistics for export across the Caspian Sea. The plant is designed to produce up to 700,000 tonnes of urea and 42,000 tonnes of ammonia annually. Construction is scheduled to take three and a half years, creating an estimated 3,000 jobs during the building phase and 400 permanent positions upon completion. Officials say the project will support the development of Kazakhstan’s gas chemical industry and contribute to import substitution. Currently, the country produces three types of fertilizers, ammonium nitrate, ammophos, and ammonium sulfate, but domestic output meets only half of the 3.2 million tonnes required to satisfy national demand. Challenges in Fertilizer Use and Production Kazakhstan’s limited fertilizer use has drawn concern from analysts. According to Energyprom.kz, citing UN Food and Agriculture Organization (FAO) data, nitrogen fertilizer application has not exceeded 4.0 kg per hectare since 2000, and dropped to just 2.4 kg in 2022. In contrast, Uzbekistan applied 187.2 kg per hectare that year, while Russia applied 17.6 kg. Phosphate fertilizer usage in Kazakhstan was similarly low at 1.33 kg per hectare, compared to 5.91 kg in Russia. Domestic fertilizer production also declined in 2024. Total output fell by 9.3% to 367,500 tonnes. Production of nitrogen fertilizers dropped by 11.4% to 345,500 tonnes, while phosphate fertilizer output rose by 47.1% to 22,000 tonnes. Despite the gains, national supply still lags behind farmers’ needs. Import Dependency and Export Growth Kazakhstan remains dependent on foreign supplies of nitrogen fertilizers, with imports accounting for 57.8% of the market. In 2024, imports rose by 7.3% to 472,300 tonnes. Meanwhile, exports of nitrogen fertilizers nearly doubled to 214,400 tonnes. Phosphate fertilizers, however, are largely produced domestically, with imports making up just 1.2% of supply. Kazakhstan’s largest fertilizer export destinations in 2024 included Brazil (187,600 tonnes), Poland (92,500 tonnes), Ukraine (87,600 tonnes), and Russia (67,400 tonnes). However, declining global prices led to a 13.5% drop in export revenue, despite only a 1.1% decrease in volume. Global Market Dynamics Geopolitical factors continue to shape global fertilizer markets. Sanctions imposed on Russia and Belarus in 2022 initially triggered shortages and price spikes, although some restrictions were later eased to mitigate food security risks. In 2024, U.S. imports of Russian fertilizers rose by 20% to $85.5 million. At the same time, the European Union is weighing new duties on fertilizer imports from Russia and Belarus, a move that has drawn criticism from European agricultural associations concerned about rising input costs. In this shifting global context, Kazakhstan’s expanded fertilizer capacity could enhance its role as a regional...

Kazakhstan Looks to Reduce Dependence on Feed Imports

On March 12, Kazakhstan’s Deputy Prime Minister, Serik Zhumangarin, met with executives from Hungary’s UBM Group, which plans to build three plants in Kazakhstan to produce 48,000 tons of premixes and 300,000 tons of compound feed annually. The project also includes the establishment of a laboratory and a training center. According to the Kazakh government’s press service, the project aims to reduce Kazakhstan’s reliance on imported compound animal feed, which currently exceeds 250,000 tons per year. Zhumangarin emphasized that ensuring local livestock farmers have access to high-quality, domestically produced feed is a strategic priority for lowering meat production costs. He also reiterated Kazakhstan’s broader goal of meeting at least 90% of domestic food demand with locally produced goods, particularly essential food products. The UBM Group project will involve the construction of facilities in the Kostanay and Karaganda regions, as well as in Almaty. In the Karaganda region, a business partner and construction site have already been selected. In Kostanay and Almaty, local partners have been identified, but final decisions on construction sites are still pending. To expedite the process, Zhumangarin instructed local administrations and the Ministry of Agriculture to allocate land plots by the end of March, allowing the investor to begin earthworks in the second quarter of this year. The entire construction project is expected to be completed within two years.

Kazakhstan Seeks Cooperation with South Korea in Lithium Production

Kazakhstan is ready to expand collaboration with South Korea in the exploration, extraction, and processing of lithium, a strategically vital resource for high-tech industries and sustainable economic development. This was stated by Nurgali Arystanov, Kazakhstan’s Ambassador to the Republic of Korea, during the Investment Dialogue on Critical Minerals between Korea and Kazakhstan, held in Seoul on February 28, according to the Kazakh Foreign Ministry. The event, organized with the support of the Korea Institute of Geoscience and Mineral Resources (KIGAM), brought together leading Korean companies, including Hyundai Development Company, POSCO International, and LX International, as well as scholars from Seoul National University and Pusan National University. KIGAM President Lee Pyeong-Koo encouraged Korean companies to increase investments in Kazakhstan, emphasizing the country’s significant potential in the development of critical minerals. During the event, researchers presented findings on the Bakennoye lithium deposit in the East Kazakhstan region. In March 2024, The Korea Times reported that KIGAM had discovered a lithium deposit in eastern Kazakhstan, in an area previously mined for tantalum. Since tantalum is often found alongside lithium and cesium, KIGAM began studying the site in May 2023 at the request of the Kazakh government. The deposit is estimated to contain resources worth $15.7 billion, according to Kazakh data cited by KIGAM.

Investments Kazakh Invest production Investment Projects EHG Non-ferrous metals Industrial park

Chinese Company to Invest Over $12 Billion in Kazakhstan’s Non-Ferrous Metals Sector

China’s East Hope Group (EHG), a global leader in aluminum and silicon production, plans to invest more than $12 billion in a large-scale non-ferrous metals production and processing project in Kazakhstan. The project was discussed last week during a meeting between Yerzhan Yelekeyev, Chairman of the Board of Kazakh Invest, and Changjun Meng, General Director of EHG. According to Kazakh Invest, EHG plans to build a large industrial park in Kazakhstan, incorporating advanced technologies in non-ferrous metallurgy. The facility will focus on deep metal processing and the production of finished goods for export to the European Union, Central Asia, and China. The project is expected to create up to 10,000 jobs at various stages of implementation. According to Changjun Meng, EHG has already registered a subsidiary in Kazakhstan, which will serve as the project's main operational center. The company has completed preliminary geodetic and hydrogeological studies of land plots across several Kazakh regions and plans to begin a detailed site assessment in the near future. Yelekeyev pledged comprehensive government support for the investment project, emphasizing its significance for Kazakhstan’s industrial sector. "Attracting major strategic investors like East Hope Group opens new opportunities for Kazakhstan," Yelekeyev stated. "We see this project not only as a large investment but also as a way to introduce advanced technologies, create new jobs, and localize production. It will strengthen Kazakhstan’s position in the global non-ferrous metals supply chain and significantly expand finished product exports." EHG has expressed its readiness to sign an investment framework agreement with Kazakhstan’s Ministry of Foreign Affairs and the Ministry of Industry and Construction, marking a significant step forward in the project’s development.

Kazakhstan’s Alageum Electric to Build Transformer Plant in Kyrgyzstan to Boost Power Grid

Alageum Electric, the largest transformer producer in Kazakhstan and Central Asia, plans to build an electric transformer manufacturing plant in Kyrgyzstan. The project was discussed on January 29 during a meeting in Kazakhstan between Kyrgyzstan’s Minister of Energy, Taalaibek Ibrayev, and the founder of Alageum Electric, Saidulla Kozhabayev. According to the Kyrgyz Ministry of Energy, Kozhabayev confirmed his readiness to cooperate on the plant’s construction. A memorandum of cooperation has been signed between the Ministry and Alageum Electric, and construction could begin this year. During his visit, Minister Ibrayev toured Alageum Electric’s production facilities to observe the transformer manufacturing process. Transformers are a critical component of Kyrgyzstan’s aging power distribution grid, which struggles to handle surging electricity consumption during the cold winter months. Increased reliance on electric heating in winter often overloads grid infrastructure, forcing power distribution companies to switch users to alternative feeders. This results in temporary outages lasting one to two hours. The Ministry of Energy explains that such measures are necessary to prevent critical equipment, such as expensive transformers, from failing. For example, a 220 kV transformer with a capacity of 250 MW costs $1.5 million and requires 150 days for manufacturing and delivery, followed by one to one and a half months for installation. Collaboration with Alageum Electric will enable Kyrgyzstan to begin domestic production of much-needed transformers at lower costs while modernizing the country’s power distribution grid. The initiative is expected to improve energy infrastructure resilience and reduce dependency on imported equipment.