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Why global companies are moving production to Kazakhstan - and what it means for people

Issued at 2026-01-12



For many years, Kazakhstan was largely viewed through one lens: oil, raw materials, pipelines and transit across Eurasia, DKNews.kz reports.

But by the early 2020s, this narrative began to change. Increasingly, multinational corporations stopped seeing Kazakhstan as merely a sales market and started building factories, expanding production and integrating local suppliers.

Step by step, the country is transforming into a regional industrial platform with clear export ambitions.

From consumer market to manufacturing base

By 2025, the Kazakh economy clearly shows signs of structural transformation.

With global supply chains being reshaped amid geopolitical uncertainty, companies are diversifying their production geography — and Kazakhstan is emerging as a hub capable of serving:

  • the domestic market
  • Central Asia
  • the Eurasian Economic Union
  • neighbouring regions

Manufacturing output is expected to grow by around 6% in 2025, with a target of 6.2% in 2026.

Processing industries are gradually becoming the backbone of economic growth, reducing reliance on raw material exports.

Metals, machinery, chemicals: growth across core sectors

Metallurgy remains one of the key engines of manufacturing. In 2026, growth of around 3% is projected as new enterprises reach full design capacity.

In ferrous metallurgy, output of ferroalloys, steel, pig iron and flat rolled products is expected to rise. In non-ferrous — gold, copper, aluminium and zinc will expand.

Mechanical engineering is growing even faster: +13.4% planned for 2026, including:

  • +17% in passenger vehicle production
  • +5% in agricultural machinery

The chemical industry is also on an upward trajectory: +7%, driven by new capacities for sulphuric acid, sodium cyanide, hydrogen peroxide and liquid glass.

Trade and agriculture shift toward value-added growth

Total trade turnover in 2026 is targeted at KZT 92.4 trillion (+6.5%).

Agriculture is also moving deeper into processing:

  • food products: +9%
  • beverages: +9.3%

That strengthens both added value and export potential.

Policies laying the foundation for industrialisation

This transformation is not accidental.

It stems from reforms aimed at:

  • improving the investment climate
  • modernising industrial zones
  • increasing regulatory predictability
  • creating special economic zones and tax incentives
  • streamlining approvals

Kazakhstan offers political stability, proximity to major markets and a regulatory framework familiar to global investors — making the country attractive as an additional or alternative production base.

Real examples: from Mars to pharma and cars

  • Mars is localising production in the Almaty region through a new pet food plant: over KZT 88.8 billion in investment, capacity up to 100,000 tonnes per year.
  • Khan Tengri Biopharma will build a complex in the Alatau SEZ: 27 medicines, investment exceeding KZT 103 billion, with export potential.
  • A full-cycle KIA plant launched in Kostanay: over USD 270 million, oriented toward both domestic demand and export.
  • Wabtec expands localisation and opens an engineering and technology centre in Astana — transferring technological expertise into the local ecosystem.

Localisation becomes visible — especially in metallurgy

ERG increased the share of goods and services sourced from Kazakh suppliers to 60% in 2024 (up from 48%). Special focus — mono-industrial towns.

Meanwhile, Qarmet is implementing large projects:

  • a section rolling mill to fully replace imports in construction metallurgy
  • a casting and rolling complex producing hot-rolled steel up to 1,850 mm wide

These initiatives help lower costs, reduce energy consumption and expand Kazakhstan’s range of high-value steel products.

Building the investment pipeline

Today, Kazakhstan’s industrialisation agenda is backed by a strong project portfolio:

  • 20 major projects with foreign participation
  • worth around KZT 5.7 trillion
  • creating more than 11,000 jobs

Plus nine multilateral projects worth about USD 2.4 billion.

Most new plants are designed with export orientation from the start — generating jobs not only in factories, but also in logistics, engineering and related services.

The bigger picture: an emerging industrial hub

Challenges remain — particularly technology upgrades — but the trajectory is clear.

Growing localisation, new plants, rising exports and the presence of global corporations show that Kazakhstan is steadily integrating into global and regional value chains.

By attracting multinational manufacturers and building production capacity, the country is reinforcing its position as one of Eurasia’s emerging industrial hubs.


Source: DKN World News



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