JSC National Company Kazakhstan Engineering

By the decision adopted by the Government in 2010, the military-industrial complex (MIC) of the country was transferred to the Ministry of Defense (MOD). It was necessary to virtually rebuild the whole system, structure of the defense industry of the country, centered on the national company "Kazakhstan Engineering". The company had about 30 different enterprises, factories, various design offices, of which 17 specifically specialize in the manufacture of military products. During this brief period of time, the Ministry of Defense, through the placement of State Defense orders, managed to significantly raise the level and condition of not only economic, but also industrial and technological of the defense enterprise. The State Defense order inspired release of new products for military use.

For the period of time 2010-2012, the total consolidated income of all enterprises within the NC "Kazakhstan Engineering" rose to 50 billion. Productivity per worker has grown from 2 million to 10 million. That is, by many measures, for the 2-3 year period there are five-time increase in all these indicators.

NC Kazakhstan Engineering produces 60% civil and 40% military products. And MOD, together with other State bodies, directs a lot of work on modernization of the Defense industrial complex enterprises. In only the three years since 2010, approximately 15 billion tenge were invested to upgrade the technology base, to buy new equipment to produce contemporary products, or produce the same products, with higher quality with high productivity. Kazakhstan Engineering appears in the new high-tech enterprises. In 2012 it opened a factory to produce helicopters within the company, to the finishing stage to be the construction of factory for the production of optoelectronic devices. Work was under way in 2013 on the construction of aircraft technical service center in Astana, and a number of other enterprises that will have a significant impact on the level of technological content of the Defense industrial complex.

Kazakhstan Engineering national company signed several contracts totally worth $1.8 billion dollars at KADEX-2012 Fair in Astana, Tengrinews.kz reports, citing Kazakhstan Ministry of Defense press-office. “Representatives of Kazakhstan Ministry of Defense held about thirty meetings with foreign delegations and armament companies' top managers. Protocols of intent outlining the nearest plans and prospects of the new military-technical cooperation were signed as the result of these meetings. (…) Kazakhstan Engineering National Company signed over $1.8 billion of long-term contracts to be implemented until 2020 with world leading armament companies,” according to the Ministry’s press-release.

In particular, the company signed a treaty with Ukrspetsexport, Ukrainian state company that deals with export and import of military equipment and services, on joint production of BTR-4 (8x8 wheeled armored personnel carrier). Kazakhstan engineering signed a Memorandum of Understanding with Cessna Aircraft Company on Cessna Grand Caravan 208B maintenance. The company also reached an agreement with Turkish OTOKAR Otomotiv ve Savunma Sanayi A.S. on production and maintenance of Cobra wheeled armored vehicle. A Memorandum of Understanding was signed between Eurocopter Kazakhstan Engineering and Kazakhstan Aselsan Engineering. The agreement will make it possible to equipment EC-145 helicopters with additional avionics: night vision devices and thermal imaging devices.

Kazakhstan Engineering company signed a Memorandum of understanding with Korean STX Offshore & Shipbuilding Co., for joint construction of a shipbuilding and repair yard in Kazakhstan's part of the Caspian Sea using the South Korean company’s cutting-edge shipbuilding technologies. The company also signed Protocols of Intent with MBDA France SAS (France) and Indra Sistemas S.A. (Spain) on construction of a coastal antiship missile system for Kazakhstan's Navy. The company is negotiating purchase of technology and equipment (rotary line) from Luganskiy Ammunition Factory to set up production of infantry ammunition in Kazakhstan.

It is possible that Kazakhstan will start producing its own gunpowder as well. This was agreed upon by Kazakhstan's Armed Forces' Chief Directorate of Ammunition, Alma DK JSC and Kazan State Gunpowder Factory (Russia). Besides the powder production it is expected that Kazakhstan will start producing powder charges for 125-millimeter practice projectile on the base of Alma DK JSC in Arys town. There is an agreement between Kazakhstan Chief Directorate of Ammunition, Kazakhstan Engineering and Splav Federal State Unitary Enterprise (Russia) to set up certification procedures for maintenance and upgrading of Grad Multiple Artillery Rocket System and to increase its destruction range from 20 kilometers to 40 kilometers.

Two strategic agreements signed in October 2010 established the framework for Eurocopter’s creation of a 50/50 joint venture in Kazakhstan to assemble EC145 helicopters, along with the sale of 45 of these locally-assembled aircraft for government missions in the country. The first accord is a framework agreement between Eurocopter and Kazakhstan Engineering to create a 50/50 joint venture to assemble and customize EC145s in Kazakhstan. The agreement also includes the development of local maintenance and training activities to support EC145 operations throughout the new customs union zone created this summer by Kazakhstan, Russia and Belarus and the entire Central Asian region. The second accord is a memorandum of understanding (MOU) – signed with Eurocopter, its parent company EADS and the Kazakhstan Ministry of Defence to confirm its intention to purchase 45 EC145 helicopters in the next 6 years.

The Eurocopter Kazakhstan Engineering joint venture. This effort has seen the assembly and delivery of an initial six EC145s for the Kazakh Ministry of Defense and Ministry of Emergency Situations from a framework contract for 45 of these twin-engine medium-size helicopters. In Kazakhstan, the full complement of 45 EC145s covered by the Kazakh government’s framework agreement will be built and customized by the 50/50 Eurocopter/Kazakhstan Engineering joint venture at Astana, with their completion targeted for 2016. Eurocopter Kazakhstan Engineering also will develop local maintenance and training capabilities to support EC145 operations in the country, as well as across the region’s new regional customs union zone, and throughout Central Asia. Additionally, the organization will oversee sales activities for these areas.