Hyundai Motor Group has commenced the construction of a state-of-the-art manufacturing plant in Kostanay, marking its first major production facility outside South Korea.
The $200mn investment is set to transform the automotive landscape in Kazakhstan, with the plant anticipated to have an annual capacity of 70,000 vehicles upon completion. The project holds promise not only for economic growth but also for employment generation, aiming to provide jobs for approximately 1,500 individuals directly, and around 2,000 more across associated industries.
The development comes on the heels of a meeting between Roman Sklyar, First Deputy Prime Minister of the Republic of Kazakhstan, and Dong-Wook Kim, Executive Vice President of Hyundai Motor Group.
Discussions during the meeting focused on enhancing collaboration between the Kazakh government and foreign investors, particularly in advancing the localization agenda set forth by Kazakhstan's leadership.
Sklyar emphasized the strategic importance of Hyundai's investment, highlighting its potential to spur technological advancement and skill development within the local workforce. He reiterated Kazakhstan's commitment to creating a conducive environment for foreign investment, citing the automotive sector as a cornerstone of the nation's industrial diversification strategy.
Earlier, South Korea has begun efforts to broaden its supply chain by establishing agreements with Kazakhstan. These deals enable South Korean companies to engage in the exploration of essential minerals within Kazakhstan.
The memorandum of understanding, signed on June 12, specifically targets the supply chains of critical minerals. This allows South Korean firms to participate in the search for lithium, chrome, uranium, and rare earth elements in Kazakhstan. This initiative holds significant importance for South Korea, particularly due to its role as a hub for major semiconductor manufacturers and home to Hyundai Motor Group, the world's fifth-largest automaker, which is actively shifting towards electric vehicle production.
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