The construction of
a Kia plant with a production capacity of 70,000 vehicles per year has
commenced in Kostanai. The South Korean company will invest about $250 million
in this full-cycle facility. Construction work at the plant is expected to be
completed next year, with car production slated to start in 2025. This
large-scale project for the region and the country was initiated as part of the
close cooperation between Kazakhstan and South Korea. Moreover, the
construction of the enterprise will serve as a significant example for future
joint investment projects between the two countries across all sectors of the
economy, according to Kazakh First Deputy Prime Minister Roman Sklyar, who,
alongside governor of the Kostanai region Kumar Aksakalov, attended the
construction start ceremony.
“In January of this
year, Kazakh President Kassym-Jomart Tokayev personally attended the launch of
small-scale Kia Sportage car production in the city of Kostanai, emphasizing
the importance of expanding industrial cooperation further. This marks a
historic moment, as KIA Corporation, for the first time in its history, makes a
direct foreign investment in a joint venture and plant construction outside of
South Korea. And this country is Kazakhstan,” Sklyar said.
“The Kostanai
government provides us some very good incentive for our CKD project. And also,
Kostanai has enough facilities and possibility for parts supplying and making
good quality of the car. Therefore, KIA decided to come here and make a
successful history with Kazakhstan government in Kostanai. We would like to
make this Kostanai as Mecca of automotive industry in Kazakhstan,” Kim Dae-Ki,
Director General of Kia Qazaqstan plant, said.
