KIA, Seyong EHWA to localize auto components production in Kazakhstan

ASTANA. April 23 (Interfax) - South Korean automaker Kia plans to create a production of auto components in Kazakhstan, Kazakh President Kassym-Jomart Tokayev's press service said following a meeting between Tokayev and Kia Corporation President Ho-sung Song.

"Ho-sung Song informed about the ongoing work to attract global suppliers of auto components. In particular, an agreement of intent has been signed with the Korean company Seyong EHWA [global supplier of auto components for Kia] on the construction of an auto components plant in Kazakhstan," the press service said.

Tokayev welcomed Kia's decision to localize the production of auto components in Kazakhstan, and said local specialists would need to be trained for the sector to develop.

Ho-sung Song also told Tokayev about the construction progress at the full-cycle car production plant in Kostanay, which will be completed before the end of this year. The project will require more than 90 billion tenge of investment. It will create 1,500 permanent jobs. Design capacity of the plant will be 70,000 cars per year, while 50,000 cars will be assembled by the CKD method, that is, with a higher share of local content.

The Kia Qazaqstan joint venture was created in August 2023. It was anticipated that the full production cycle at the new Kia plant would begin in 2025.

Kia cars have been assembled in Kazakhstan since 2021 at the Allur Group's SaryarkaAvtoProm plant in Kostanay.

The CKD assembly of the Kia Sportage was launched at the Allur automobile plant in the Kostanay region in January 2023 in a ceremony attended by Kazakhstan's president.