Kia starts building new $250 mln car plant in Kazakhstan's Kostanai

ASTANA. Nov 13 (Interfax) - Kia has started to build a new car plant in Kostanai, north Kazakhstan.

Kazakhstan's government s announced the beginning of the construction of an integrated automobile manufacturing facility. "The new plant, with around $250 million in foreign investment, aims to create 1,500 highly paid jobs and will have the capacity to produce 70,000 cars annually," the government said.

The construction is expected to be completed by 2024, followed by the installation of equipment. The pilot launch of the plant is slated for the first quarter of 2025, with full production commencing in the second quarter.

"The establishment of a full-cycle Kia car production plant in Kostanay represents a groundbreaking achievement in high-tech mechanical engineering. This project is expected to yield a substantial multiplier effect, elevate the training standards for the upcoming generation of engineers and technicians, and advance localization in the industry," First Deputy Prime Minister Roman Sklyar said at the launch ceremony.

Kia is establishing a center in Kostanai to produce automobile parts, collaborating with local small and medium businesses. During a visit in January 2023, Kazakhstan's President Kassym-Jomart Tokayev initiated a new Kia Sportage production line at the Allur automobile plant, underscoring the importance of expanding industrial ties and developing the engineering sector.

Additionally, in August, the Kazakh government formed a partnership with South Korea, launching the Kia Qazaqstan joint venture which will oversee the construction of a new Kia manufacturing facility in Kostanai. This initiative represents the beginning of Kazakhstan's first automotive localization center and a step forward in training specialized technical personnel.