Industrial development of Pavlodar region

Pavlodar region is one of the largest industrial and economically developed regions of Kazakhstan. And it is not by chance, because coal, nickel, gold, copper, zinc and lead reserves are concentrated on its territory. The region has a fairly advantageous geographical position due to the fact that it is located next to the largest CIS market – the Russian Federation, bordered on the north by the Omsk Region, on the northeast by Novosibirsk and on the east by the Altai Territory.

 

The volume of the gross regional product of the region in 2021 amounted to 3,625.3 billion tenge and has grown 1.5 times over the past 5 years (Figure 1). The share of the manufacturing industry in the total volume is 31.1% or 1,128.7 billion tenge.

Figure 1. Gross regional product, billion tenge

As of January 1, 2022, there are 13,643 operating legal entities in the Pavlodar region, including 13,300 small, 252 medium-sized and 91 large enterprises. Of the total number of operating enterprises, 991 belong to the manufacturing industry (945 small, 28 medium and 18 large enterprises), which is 7.2% of the total number of enterprises.

The volume of industrial production in the region by the end of 2021 amounted to 2,726.5 billion tenge, including 1,740.7 billion tenge – manufacturing industry, whose share in total industrial production reached 63.8% (62.6% in 2020) (Figure 2).

 

Figure 2. The share of the manufacturing industry, in %

In terms of export volumes, Pavlodar region is on 2nd place among other regions of Kazakhstan and occupies 13.1% of the share. In recent years, the nomenclature of regional exports has been replenished with the following products: aluminum, aluminum car wheels, seamless pipes, polypropylene, polypropylene bags, chlorine, calcined coke, cathode copper, railway engineering products. The market for these goods is Russia, China, Tajikistan, Kyrgyzstan.

Since the beginning of industrialization, 107 projects worth 1,068.3 billion tenge have been put into operation in the framework of the Industrialization Map and Entrepreneurship Support Cards in the Pavlodar region, 10 thousand permanent jobs have been created. The largest number of commissioned projects is located in Pavlodar – 59 projects, Ekibastuz is the leader in terms of investments – 529.1 billion tenge. Of the projects introduced, the manufacturing industry includes 80 projects totaling 486 billion tenge, 6,937 permanent jobs were created. At the same time, the largest number of projects were introduced in metallurgical production – 17 projects or 21%, the production of coke and refined petroleum products is the leader in terms of investment – 222.7 billion tenge or 45.8%.

 

In the perspective of the region until 2025, a common pool of 42 investment projects worth 3.1 trillion tenge has been formed, with the creation of more than 10.7 thousand permanent jobs. As of today, 38 projects are under implementation. This year it is planned to launch 4 projects worth 5.8 billion tenge. The main areas of projects being introduced in the region in 2022 are the construction industry, chemical industry and oil refining. Thus, the enterprises plan to establish the production of flat glass, epoxy compound and additives for light petroleum products with the creation of 132 permanent jobs.