Production of liquid pumps in Kazakhstan

In Kazakhstan, in 2019, almost 600 thousand liquid pumps were sold for domestic consumption.

Liquid pumps are widely used in areas such as water supply, food processing, chemical industry and household.

Despite the presence in Kazakhstan of companies producing pumps and a sufficient amount of raw materials for production, imports continue to exceed production.

When comparing domestic production and imports, it can be seen that the main resource of liquid pumps is imports, while the production of Kazakhstan in 2019 covered only 2% of the needs of the domestic market, imports exceed production by 51.4 times.

Import covers most of the needs of the domestic market. In 2019, pumps were imported for a total of 721 692 thousand US dollars (586 912 units).

This industry is becoming attractive to investors, as Kazakhstan has a favorable geographic location. By building one pump plant in Kazakhstan, companies can export their goods to other neighboring countries.

At the moment, there is already one pump production plant in Kazakhstan - WILO Central Asia, opened by attracting foreign investment. The German company has invested over 4 million euros in the construction of a plant in the Almaty region.

Kazakhstan also exports liquid pumps. In 2019, liquid pumps were exported in the amount of USD 10 442 thousand (30 319 pcs.).

There are 4 companies producing liquid pumps in Kazakhstan:

1) LLP "Karlskrona LC AB" in the city of Shymkent;

2) LLP "Tselingidromash" in the city of Nur-Sultan;

3) LLP "Ulba-electro" in the city of Ust-Kamenogorsk;

4) WILO Central Asia in Almaty region, p. Bayserke (Investment of the German company WILO = more than 4 million euros).

These companies supply goods to the domestic market, as well as export them.

Despite the presence of 4 pump manufacturing companies, Kazakhstan's imports exceed production by 87.5 times. The volume of production in Kazakhstan is not enough to cover the demand of the domestic market.

The state of Kazakhstan actively supports investors who want to invest in the development of the production of equipment, including liquid pumps. Special economic zones (SEZs) were created, the participants of which are provided with tax benefits (land tax, value added tax (VAT), property tax, land use fee = 0%). Also, participants are exempt from tax duties on raw materials and equipment when imported into the territory of the FEZ. FEZ participants are provided with a free land plot for the term of the FEZ; infrastructure is brought in, and the process of attracting labor is simplified.