The volume of construction materials production in Kazakhstan increased by 38.7% in nine months

The volume of production of construction materials in Kazakhstan in January-September 2021 amounted to 641.7 billion tenge, which in nominal terms is 38.7% higher than the same period in 2020 (462.6 billion tenge), the press service of the Kazakhstan Industry and Export Center "QazIndustry" JSC of the Ministry of Industry and Infrastructure Development of the Republic of Kazakhstan reports.
For 9 months of 2021, the construction materials industry provided 2.5% of industrial production and 5.4% of manufacturing production.
The index of physical volume of production in January-September 2021 amounted to 110.1%. The growth in physical terms is observed for the following products: refractory products (+70%); non-refractory ceramic bricks (+56%); Portland cement (+18.3%); slag wool, silicate mineral wool and similar mineral wool (+48%); construction solutions (+38.7%), gypsum (+66.4%); stone processed for monuments, decoration and construction (+55.7%), etc.
The decrease in the volume of output of goods in kind was shown by: ceramic facing bricks (-8.5%), slabs, tiles and similar products made of cement and concrete or artificial stone (-8.9%), prefabricated concrete structures (-10.6%), commercial concrete (-10.4%).
Exports of construction materials products in January-August 2021 increased by 5.7% compared to the same period in 2020 and amounted to $143.0 million. In physical terms, the volume of exports decreased by 6.9% to 1,414.4 thousand tons, while for the same period last year it was at the level of 1,519.8 thousand tons. The main top export countries are Uzbekistan, Russia and Kyrgyzstan.
The import of construction materials to the domestic market in January-August 2021 amounted to $873.3 million, showing an increase of 24.1% compared to the same period in 2020. In physical terms, the volume of goods amounted to 2,728 thousand tons, an increase of 37.9% compared to 8 months of 2020 (1,979 thousand tons). The main top importing countries are Russia, China and Turkey.
In January-August 2021, the volume of the construction materials market in Kazakhstan amounted to $ 2,242 million, where the share of domestic producers accounts for 61%, the share of imported products - 39%.
Today, there are 2,184 enterprises operating in the construction industry of Kazakhstan, the main share of which (95%) belongs to small businesses.
The republic produces construction materials in almost all segments of the industry.
The industry provides 61% of the domestic market, however, the main share belongs to basic goods with low added value - cement, concrete, construction mortars, lime, etc.
The largest production volumes in value terms are in the Karaganda and Almaty regions, as well as the cities of republican significance Nur-Sultan and Shymkent.
The main reserve for the growth of the production of domestic materials in the industry is the state construction programs.
Thus, as part of the implementation of the state program "Nurly Zher", active construction of the housing sector has been underway since 2021 with the commissioning of up to 103 million square meters by 2025. Active housing construction is carried out not only in Nur-Sultan (21.4 million m2), but also in the regions.
In January-September of this year, the volume of construction work amounted to 3,648.9 billion tenge, which is 9.7% more than the same period in 2020. An increase in the volume of construction work was observed in all regions of the republic.
A significant increase in construction work was noted in Akmola, Mangistau regions and Almaty (by 1.2 times), in Atyrau, West Kazakhstan, Kostanay, Turkestan, Zhambyl, Almaty, East Kazakhstan regions, in Shymkent and Nur-Sultan (by 1.1 times). For 9 months of 2021, the total area of new facilities put into operation amounted to 12,196.6 thousand square meters. m.
Currently, the plants have satisfied the demand for cement by more than 92%, the domestic market is fully provided with domestic concrete and reinforced concrete products. Strong Kazakhstani players operate in all these segments - Standard Cement LLP, Kokshe – Cement LLP, Kazakhcement LLP, Temirtas-1 LLP, ABK-Maksat LLP, etc. Almost everywhere in construction and repair, only Kazakh drywall and dry building mixes are used (Knauf Gypsum Kapchagai LLP, Zhambylgips LLP, Alina Holding LLP).
Less developed are the production of thermal insulation products, ceramic bricks, paint products, etc. Thus, the Kazakhstan market is provided: by 60% - in bricks, by about 57% in paints and varnishes based on polymers, by 31% - in thermal insulation products.
Goods of complex processing, namely materials for finishing, remain import-dependent. To organize production, it is necessary to provide a raw material base, which can be achieved by organizing the activities of both mining and processing plants and the development of polymer chemistry.
QazIndustry experts believe that this will have a positive impact on the competitiveness of the industry. In their opinion, the organization of the production of complex goods will provide the domestic market with products with high added value and in the future will allow entering the export markets of the macroregion.
At the moment, a number of projects are being implemented, with the involvement of foreign investments aimed at import substitution of the segments under consideration.