Kazakhstan signs localization deals with global farm machinery makers

Currently, eight major enterprises operate in the country, producing more than 8,000 tractors and 1,200 combines annually

Kazakhstan has signed a number of agreements with international agricultural machinery manufacturers to localize production in the country, Trend reports via the Kazakh government.

The agreements were reached following a meeting between Prime Minister Olzhas BEKTENOV and executives of global agricultural machinery companies from Europe, Canada, and the US.

The multilateral agreements are aimed at localizing the production of agricultural machinery in Kazakhstan based on the facilities of a localization center in Kostanay. The deals were signed between AgromashHolding KZ, Eurasia Group AG, and global manufacturers including Väderstad Group, Dewulf, Lindsay Corporation, Amity Technology, Frans Vervaet B.V., Kuhn Group, and Brandt.

During the meeting, Bektenov noted that more than 130,000 tractors, around 30,000 combines, and over 200,000 units of trailed and mounted equipment are currently in operation across Kazakhstan’s fields. The fleet renewal rate reached 6.5 percent last year, with a target to increase it to 10 percent annually.

To support this goal, the government has introduced a comprehensive system of measures, including subsidies covering up to 30% of machinery purchase costs, reduced loan and leasing burdens, and concessional financing at 5% for domestically produced equipment.

According to Bektenov, over the past two years, sales of locally produced machinery have increased by 35%, from 7,700 to 10,400 units, with demand shifting toward more complex and high-tech equipment. Currently, eight major enterprises operate in the country, producing more than 8,000 tractors and 1,200 combines annually, while the share of domestically produced machinery in the local market has reached about 90%.

Photo: Government of Kazakhstan.

SHARE YOUR OPINION AND DISCUSS THE ARTICLE ON OUR TELEGRAM CHANNEL!