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Astana, Kazakhstan • 13 November, 2023 | 10:31

Kia to Invest $250 Million in Building a Manufacturing Plant in Kazakhstan

The plant is set to produce 70,000 vehicles annually

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Construction of a full-cycle Kia automobile manufacturing plant has commenced in Kostanay, with the official launch ceremony attended by the First Deputy Prime Minister of Kazakhstan, Roman Sklyar, and the Akim of the Kostanay Region, Kumar Aksakalov, QazMonitor reports citing the press service of the Akimat of the Kostanay region.

The new plant, set to create 1,500 high-paying jobs, will produce 70,000 vehicles annually with a foreign investment of approximately $250 million.

During his address, Roman Sklyar highlighted that for the first time in its history, Kia is making a direct investment in a joint venture and factory construction beyond South Korea.

The construction of a full-cycle Kia automobile manufacturing plant in Kostanay can truly be considered a breakthrough high-tech project for the machine-building industry. This project will have a real multiplicative effect, elevate the level of training for the new generation of engineering and technical personnel, and significantly accelerate the transition to the next stage of localization development.

Roman Sklyar, First Deputy Prime Minister of Kazakhstan

The plant is scheduled for completion in 2024, with a pilot launch in Q1 2025 and full-scale production commencing in Q2 2025.

In a video address, Kia's President and CEO, Ho-Sung Song, expressed pride in contributing to Kazakhstan's economy, envisioning the plant as a vital space for citizens, university graduates, and engineers to gain valuable work experience.

The South Korean company expressed full support for Kazakhstan's industrial policy to boost local content in automobile manufacturing. Kia is actively engaged in the establishment of a localization center in Kostanay, collaborating closely with small and medium-sized enterprises to produce automotive components.

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