Kia to build auto component plant costing $29 mln in Kazakhstan's Kostanai region

ASTANA. Jan 11 (Interfax) - The production of Kia components will be localized in the Kostanay region, said Kumar Aksakalov, the governor of the region.

The cost of the localization project is estimated at 13 billion tenge or $28.7 million at the current rate, Aksakalov said at a meeting with President Kassym-Jomart Tokayev on Thursday.

The governor also informed the president that SaryarkaAvtoProm LLP had launched a 23 billion tenge project for the assembly of 30,000 Chevrolet Onix cars per year.

In August 2023, the Kazakh government formed a partnership with South Korea, launching Kia Qazaqstan. This joint venture 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.

Construction of the Kia manufacturing facility in the Kostanai region started in November 2023. Investment in the project totals 90 billion tenge. The new plant aims to create 1,500 highly paid jobs and will have the capacity to produce 70,000 cars annually.

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 construction of the auto component plant is the next stage of the project.

The completely knocked down assembly (CKD) of Kia's Sportage cars was launched at Allur's automobile plant in the Kostanai region in January 2023.

Allur is a shareholder of SaryarkaAvtoProm LLP, Kazakhstan's largest auto manufacturer, as well as an official distributor, manufacturer, and official dealer of JAC, Ankai, Yutong, Chevrolet, manufacturer of Niva Chevrolet, UAZ, MAN.