Kazakhstan is in need of aluminum of high value added

@Delovoj Kazahstan

Aluminum is the most common metal on earth and the most important raw material used in industry.

Kazakhstan ranks 12th in the world in terms of bauxite reserves (365 million tons), from which aluminum is produced.

But to date, even with huge reserves of bauxite, Kazakhstan imports processed aluminum products. Thus, in the period from January to October 2020, imports of aluminum packages in value terms amounted to 32.4 million US dollars (which is 6.1% less than the same period in 2019), aluminum wire by 20.2 million US dollars (+11.5%), metal structures by 18 million US dollars (+14.2%).

The reason is the lack of capacity for domestic production.

The only producer of primary aluminum in the country is JSC "Kazakhstan Electrolysis Plant" (KEP).

According to KEZ, in 2019, the company produced more than 263 thousand tons of primary aluminum. About 90% of the products are exported. The main buyers are Turkey, Greece, Uzbekistan and Georgia. At the same time, KEZ has overcome an important production stage-it has produced more than 2.5 million tons of primary aluminum since its launch.

The organization of production in Kazakhstan of products of the highest processing takes a long time and requires significant costs (high transport costs for export, lack of qualified specialists and technologies). However, it fully pays for itself, taking into account the economy's need for aluminum products.

The organization of production of components and parts for the world giants of mechanical engineering and electronic industry is promising in the territory of the Republic of Kazakhstan. As well as components for the products of developing industries: IT products, electric vehicles and green technologies, in the production of which aluminum components also play a significant role.

Providing Kazakhstan with its own production of high-grade aluminum is necessary, since our country is already actively exporting products, the share of which is occupied by aluminum parts (imported):

- Passenger cars-car exports for 10 months of 2020 amounted to 98 million US dollars (5,422 units), which is 2.7 times more than for 10 months of 2019,

- Parts of rolling stock-exports for 10 months of 2020 amounted to 88.9 million US dollars, an increase of 82.3% by 10 months of 2019.