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Participants of forum-exchange of subcontracts in Kazakhstan to focus on Apple, Toyota

Business Materials 24 August 2018 12:52 (UTC +04:00)
The second forum-exchange of subcontracts has been launched Astana, where large Kazakh enterprises are looking for suppliers among domestic producers.
Participants of forum-exchange of subcontracts in Kazakhstan to focus on Apple, Toyota

Baku, Azerbaijan, Aug. 24

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The second forum-exchange of subcontracts has been launched Astana, where large Kazakh enterprises are looking for suppliers among domestic producers, "Kazinform" reported.

This refers to the direct negotiations both between customers and suppliers and between suppliers themselves to establish cooperation on the manufacture and supply of articles, components parts, assembly units and parts.

"We all know the examples of successful subcontracting – these are Apple and Toyota companies. They have more than 50,000 suppliers of component parts. This tool is very effectively used in those companies," said Dmitry Usov, Deputy Chairman of the Management Board, National Agency for Development of Local Content "NADLoC".

He said the subcontracting exchange is developing quite successfully in Russia. Some 35 regional centers are functioning currently. More than 200,000 positions are presented in the system, and about 4000 electronic trades are held on its platform daily. The amount of transactions is more than 93 billion rubles (about 460 billion tenge).

Today, 40 potential customers and about 200 potential manufacturers participate in the exchange held in Astana. In particular, such large companies as "Corporation Kazakhmys" LLP, "Eurasian Group" LLP, "Kazzinc" LLP, "ArcelorMittal Temirtau" JSC, "Tengizchevroil" LLP, "Karachaganak Petroleum Operating B. V." JSC, "CNPC - AktobeMunayGaz" JSC, "Samruk-Kazyna Contract" LLP and others are among the customers.

Timur Nurashev, Deputy Chairman of the Committee for Industrial Development and Industrial Safety of the Ministry of Investments and Development of Kazakhstan said the exchange solves the issues of import substitution.

"This tool solves such issues as import substitution in such industries as engineering, chemistry, production of building materials, light industry. If we take the figures, at the end of 2017, the share of local content in the procurement of subsoil users, national and systemically important companies was 21.3 percent for light industry, 9 percent - for mechanical engineering, 27.5 percent- for chemical industry and 23.5 percent - for the production of construction materials. Thus, we have a significant potential for domestic producers in the domestic market," he said.

He said the ministry is currently working with systemically important large enterprises over development of a mechanism of interaction with domestic producers.

"In 2017, we signed tripartite agreements between the ministry, the National Chamber of Entrepreneurs of Kazakhstan and systemically important large enterprises. There are 4 such enterprises i.e. "ArcellorMittal Temirtau", ERG, "Kazakhmys"and "Kazzinc" companies. The list of products that are the subject of constant annual purchase by these enterprises was defined in this agreement. Thus, a very large volume of the potential for substitution of these products purchased from third countries has shaped up. As a matter of fact, if we can properly organize work with these enterprises, we will be able to create a fairly stable demand for dozens of our producers. We will continue this work during the current year," he concluded.

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