In October 2019, Prommashkomplekt LLP produced more than 10 thousand wheels, and it is planned to produce about 30 thousand more wheels for the railway by the end of the year. At the same time, it is worth noting that the first batch was launched only a few months ago. Taking into account the increase in demand and orders for the finished products of the plant, the company signed an agreement for the supply of raw materials, in particular round continuous cast billets, with Pipe Metallurgical Company PJSC (TMK) in the amount of up to 65 thousand tons annually. The company's products are focused not only on the Kazakhstan market and the CIS countries, but also there is an increased interest from consumers abroad. For example, American Corporation General Electric plans to buy locomotive wheels from Ekibastuz manufacturer.
Negotiations with General Electric are still underway, so it's too early to talk about the details of the deal. Nevertheless, it is gratifying that there is a demand for products, our product is certified and can be used throughout the entire area of the 1520 gauge standard. I think this is an indicator that we have successfully occupied a vacant niche, and now we only need to develop the company's capacity and establish communication with our key consumers: manufacturers of rolling stock, car repair depots and workshops, as well as owners of rolling stock",
Recall that the complex for the production of railway wheels in Pavlodar region was launched in 2018. The project was built "from scratch", so its cost was more than KZT 54 billion. Most of the funds, namely KZT 36 billion, were provided by the Development Bank of Kazakhstan (DBK, "subsidiary" of Baiterek Holding) in the form of a loan for a period of 19 years with an interest rate of 7% per annum. The production start of this particular plant was eagerly awaited in the DBK for several reasons. First, the amount of investment from the state budget is not small. Secondly, the significance of the project for the country's economy is even more essential than its cost. Commissioning and reaching full production capacity means that the plant replaces imports from outside and covers demand in the domestic market, increases the export potential of the republic and at the same time increases competitive productivity in comparison with similar productions in neighboring countries. Currently, the company employs about 800 people, but as soon as the plant reaches its design capacity, the number will increase to 1,100 people.
We are glad that another significant project funded by the Bank is increasing production and now the railway wheels that are manufactured in Ekibastuz are competing in the world market. Until recently, Russian and Ukrainian companies were considered key players in the region, however, the technical equipment of the new complex allows the Kazakh "newcomer" to produce 2 times more wheels, while at a reduced cost, in comparison with factories from neighboring countries",
The development of the machine-building industry is a key indicator of the technological level of the industry and it largely determines the competitiveness of the national economy through a large impact on the development of related industries. This was repeatedly emphasized in the government of the country, where close attention is paid to the volume of production of enterprises in the manufacturing sector. In this part, Prommashkomplekt LLP contributes and opens new vectors for the development of Pavlodar region. According to the latest data from the press service of the Prime Minister of the Republic of Kazakhstan, since the beginning of this year, enterprises in the processing sector of the region provide almost 12% of the national volume of processing, and the machine-building industry has grown by 5.3%.
