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German CLAAS to launch a plant in Kazakhstan

CLAAS, one of the world's largest producers of agricultural machinery, today signed an Agreement on Industrial Assembly with the Ministry of Industry and Infrastructure Development of the Republic of Kazakhstan.

Industrial cooperation between Kazakhstan and Germany was initiated by the Head of State K. Tokayev at the working meeting with the Chairman of the Supervisory Board of the CLAAS Group C. Claas-Muehlhaeuser as part of the working trip of the Head of State to Germany in December, 2019. Following the visit, a special working group was created to work with German business under the leadership of the Deputy Prime Minister of the Republic of Kazakhstan Roman Sklyar.

The Investment Committee of the Ministry of Foreign Affairs of the Republic of Kazakhstan, the Embassy of the Republic of Kazakhstan in Germany, NC KAZAKH INVEST JSC and the Ministry of Agriculture of the Republic of Kazakhstan were in charge of the development of the project to organize the agricultural machinery assembly in the territory of the Republic of Kazakhstan.

CLAAS is the flagship of the global agricultural machinery industry and the largest European producer of agricultural machinery. The entry of a well-known German company into Kazakhstan is a landmark event for all domestic farmers who have long needed affordable equipment of high capacity.

Taking into account the global pandemic, the Agreement was signed via video communication. The Vice-Minister Amaniyaz Erzhanov endorsed the document on behalf of the Ministry, the German side was represented by Mr. Nils Roych, the Regional CEO for Eastern Europe and the CIS of CLAAS.

The new plant will be located in North Kazakhstan region. The first stage will settle the assembly of the TUCANO harvester there, including installing specialized equipment and training of technical personnel.

The project will be implemented jointly with the official representative of CLAAS in Kazakhstan, ST-Agro company. The volume of investments in the regional economy will amount to about KZT3.4 billion, with the German company's own funds as the source of funding. The initial stage will create about 200 new jobs.

“We, on behalf of CLAAS, express our recognition to the Government of Kazakhstan and the country's Embassy in Germany for diplomatic support in the implementation of the planned bilateral project in the field of agricultural engineering. We see great potential in the Republic of Kazakhstan and therefore we intend to build long-term, fruitful and mutually beneficial cooperation” Mr. Nils Roych emphasized.

The Agreement will help the company gradually increase the localization of components, as well as engage in technical training for further development of production.

Upon reaching the design capacity, the enterprise will assemble up to 200 units of agricultural machinery (harvesters, tractors and seeding complexes) per year, which will qualitatively improve the situation with updating the machine and tractor fleet in the Republic of Kazakhstan.

CLAAS is among such world-famous agricultural machinery producers implementing assembly projects in Kazakhstan, as PÖTTINGER, LOVOL, BUHLER, Rostselmash, St.Petersburg Tractor Plant, MTZ, Gomselmash, etc., and it fully complies with the country's import substitution program, covering all the needs of farmers.

It should be noted that this work was carried out due to the verified industrial policy of the state in terms of the development of the agro-industrial complex of Kazakhstan.