Shymkent to become transport and logistics hub among Central Asian countries — Alikhan Smailov

As part of a working visit to Shymkent, Prime Minister Alikhan Smailov reviewed a project to develop a regional trade and logistics hub, as well as the activities of a number of large manufacturing facilities.

Thus, the Head of Government visited a modern multifunctional trade and logistics centre (TLC), which provides storage facilities of all classes according to the world standards. 

Alikhan Smailov said that for further development of the TLC it was decided to increase its territory by 136 hectares. In particular, this will significantly contribute to stabilization of prices for socially important food products.

"The expansion of the centre will allow Shymkent to become a transport and logistics hub among Central Asian countries. This will have a positive effect on the development of the country's economy as a whole," said Alikhan Smailov. 

Then the Prime Minister inspected Standard Steel KZ LLP's Lead Waste Recycling Plant to produce non-ferrous metal concentrate. Today the company is capable of producing more than 4,600 tonnes of copper-silver concentrate a year. Upon completion of the second phase of construction, the plant will be capable of producing an additional 20,900 tonnes of zinc oxide annually.

This project, important for the region and Kazakhstan as a whole, is aimed at reducing the environmental impact of industrial operations, the prime minister said. 

"For its full-fledged operation, the city's akimat needs to solve all the issues relating to the supply of production infrastructure. The experience of creating such sites for the development of small and medium-sized businesses should be taken into account by other regions of the republic," he said. 

Alikhan Smailov also inspected the work of a large pharmaceutical company Khimpharm which produces more than 130 kinds of medicines. The project was implemented at the expense of private investments. In 2023 it is planned to invest about $8.4 million more in the development and modernization of the factory research centre.

Prime Minister said that the Head of State has instructed to increase the share of domestic production in the pharmaceutical industry up to 50% by 2025. In this regard, the Government will review some mechanisms of support to stimulate the development of the national pharmaceutical cluster. 

"This will significantly reduce dependence on imports and ensure national drug safety," Alikhan Smailov said. 

The next item on the Prime Minister's work programme was a visit to PetroKazakhstan Oil Products LLP, an oil refinery producing various types of petrol, diesel fuel, jet fuel, liquefied gas, fuel oil and other oil products for the domestic market. 

In 2018, the company underwent extensive modernisation and reconstruction as part of the State Programme for Industrial and Innovative Development. This allowed the plant to introduce international experience in automation and digitalisation, improve production processes, and expand the range and quality of products.

Alikhan Smailov noted that the annual consumption of oil products in the country, especially during the periods of field work and the heating season, is increasing.

"Currently, taking into account the growing needs, the issue of expanding the Shymkent refinery from 6 to 9 million tons is being worked out. This will not only help saturate the domestic market, but will also provide additional employment for residents," he said.

The Prime Minister added that today the government is reforming the fuel market, including shifting all oil refineries from the processing to the marketing principle of work.

"This will enable refineries to directly participate in a single process of production and distribution of oil products, excluding intermediaries," Alikhan Smailov emphasized.

Also, the Head of Government got acquainted with the activities of the plant for the production of aluminum cans by QazALPack LLP, which is able to produce about 500 million units per year in Shymkent.

The enterprise, which has received various types of state support, including loans under the Economy of Simple Things programme, was launched in October 2022. 

The Prime Minister said that the plant is a unique project in Central Asia, and the sales market is capacious and promising. According to him, the enterprise needs to further increase production volumes.

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