ASTANA – Kazakhstan is intensifying efforts to develop its chemical industry, aiming to diversify its economy and enhance self-sufficiency in agricultural and industrial sectors, said Minister of Industry and Construction Yersaiyn Nagaspayev during a May 5 government meeting.
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As of today, Kazakhstan’s chemical sector contributes 4.6% to the manufacturing industry and has a positive impact on the development of such industries as agriculture, metallurgy, and the production of building materials, reported the Prime Minister’s press service.
Last year, the production volume exceeded 1 trillion tenge (US$1.9 billion). Key products include fertilizers, pesticides, phosphates, chromium compounds, calcium carbide, polypropylene, paints, household chemicals, automotive chemicals, and lubricants.
Major enterprises such as KazAzot, Kazphosphate, Kaustik, and Atyrau oil refinery play pivotal roles in meeting domestic demand and expanding export potential. Over the past five years, the industry has demonstrated a stable growth trend, averaging an annual increase of 5%.
According to Nagaspayev, the government has implemented several measures to support the sector, including the exemption of raw materials for pesticide production from VAT to support local manufacturers, the establishment of exclusive export rights for ammonium phosphate and ammonium nitrate to prevent illegal exports, and to stabilize prices.
In January-March, chemical production increased by 12.5%, reaching 406 billion tenge (US$785 million). The ministry projects a 5% growth for the year, driven by new projects and increased production in polypropylene, sodium cyanide, fertilizers, and yellow phosphorus.
Ensuring food security is the country’s strategic priority. By 2030, Kazakhstan aims to fully meet domestic demand for nitrogen, phosphorus, and potassium fertilizers through domestic production.
Planned fertilizer production includes 1.5 million tons of ammonium phosphate, 800,000 tons of urea, 700,000 tons of potassium chloride, and 300,000 tons of dicalcium phosphate, covering 80% of national needs.
Kazakhstan is exploring coal chemistry as a promising sector, leveraging its substantial coal reserves. Collaborations with CHN Energy and East China Engineering aim to develop ammonia and urea production facilities.
Domestic coal mining enterprises are also partnering with scientific institutions to produce fertilizers, absorbents, nanomaterials, and diesel fuel.
Today, 49 projects are being implemented in the chemical industry. By 2035, investments in the industry are expected to reach 4.8 trillion tenge (US$9.3 billion).
