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Ruslan Abdrakhmanov

Manufacturing in Almaty and the region: industrial zones, building materials, energy

Near Almaty there's an industrial zone where 151 companies have announced investments of 914 billion ₸, and the fastest-growing sectors are building materials, machine building, logistics, chemicals and waste recycling. Construction drives demand for building materials: in 2025 Kazakhstan completed 20.1 million m² of housing. Manufacturing near Almaty has two bottlenecks: electrical capacity in the south and raw material logistics, so I choose a site based on those two things, not on the price of the land.

What kind of manufacturing is profitable to start in Kazakhstan

Factories that do best have their market nearby and raw materials that are local or easy to bring in. In the Almaty industrial zone, according to akimat (city administration) data cited by Kapital.kz, the fastest-growing sectors are building materials, machine building, transport logistics, chemicals, waste recycling and everyday consumer goods.

The 2026 list shows well what's being launched there right now: heating and water supply equipment, PVC sheet, aerated concrete blocks and ALC panels, household paper products, steel structures for roads and bridges, and a logistics complex. Among the 14 projects launched in 2025 were a car plant and facilities for building materials, feed additives and tyre recycling.

Import substitution: where it actually works

Competing on price with Chinese imports in mass-market goods is hard. Local production wins where the product is heavy, bulky or perishable and expensive to ship: building materials, steel structures, packaging, food, animal feed. Another niche is orders where timing and custom sizes matter, such as windows, doors, made-to-order furniture, or steel structures for a specific construction site. Here a local workshop beats delivery from abroad by weeks.

Industrial zones and SEZs near Almaty

The main site in the city is the Almaty industrial zone in Alatau District. It has 151 companies with announced investments of 914.2 billion ₸. About 376 ha is planned for the third phase of expansion, of which 323 ha has already been bought out. Another five small industrial parks with a total area of more than 22,000 m² are designed for small producers that don't need their own plot.

Almaty also has the Park of Innovative Technologies special economic zone (SEZ), and on the border with China there's the Khorgos – Eastern Gate SEZ. In Almaty Region, according to Kazinform, the authorities are preparing small industrial zones based on existing buildings and have identified sites for industrial parks in 12 districts.

What being in an industrial zone or SEZ gives you

  • Roads, electricity, water and gas brought to the plot boundary
  • Land with the right industrial designation, without a long change of category
  • In an SEZ, tax breaks whose set depends on the zone and the current version of the Tax Code
  • A clear entry procedure: application, contract with the management company, investment commitments

Making building materials: my experience with a concrete plant

In 2019 I launched my own concrete production: Dalila Group TOO, website tasbeton.kz, with our own concrete batching plant in the village of Burundai. Before that I'd spent about four years building turnkey houses, so I knew the market from the buyer's side.

We delivered concrete all over Almaty: from the Eastern Bypass to the village of Abai and from Burundai to Zvezdnaya Polyana, where the upper TAMOS school stands. That's how I learned in practice the main rule of building materials: the winner is whoever can deliver fast, not whoever has cheaper equipment.

In winter construction slows down and demand for concrete falls. I didn't wait for spring and started selling aggregates in 25 kg bags: sand, crushed stone, screenings, expanded clay, as well as gravel and boulders. People bought them both by the truckload and by the bag for apartment renovations, because almost no one sold them in that format. One apartment took 30–50 bags on average. That experience taught me to look for demand where others see a dead season. After the lockdown I sold the project at a good price.

Electricity and logistics for manufacturing in southern Kazakhstan

Energy in the south is in short supply. According to Informburo (September 2026), the southern zone covers about half of its demand from local generation, and the rest comes over lines from the north, which are almost fully loaded. The Ministry of Energy promises to cover all of the country's demand from early 2027, and a nuclear power plant is due to start operating in Almaty Region in the mid-2030s.

In practice this means I request the technical conditions for power capacity before the plot is bought. For production with furnaces, presses or refrigeration, the difference between "capacity is available" and "you need to build a substation" can cost more than the building itself.

On logistics Almaty has an advantage: the rail bypass around the city, highways to Bishkek, Khorgos and Astana, and proximity to China for importing equipment and raw materials.

Example: how much a workshop needs to sell to break even

An illustrative example with assumptions, not data from a real workshop. A paving tile workshop in rented premises. Fixed monthly costs: rent, wages, electricity, equipment maintenance and loan payments of about 6 million ₸. After raw materials, each square metre of tiles leaves roughly 1,500 ₸.

Break-even point: 6 million ₸ / 1,500 ₸ = 4,000 m² of tiles a month. In winter tile sales almost stop, so in summer the workshop has to sell noticeably more to cover the year. Before buying a production line, I'd check who you'll actually sell to, and how much, within your delivery radius.

How to choose a plot or workshop for manufacturing

  • Land category: industrial, with no need for rezoning
  • Allocated power capacity and the cost of increasing it
  • Gas: for dryers, furnaces and heating the workshop it's cheaper than electricity
  • Truck access and space for turning and unloading
  • Sanitary protection zone: noisy and dusty production can't be placed next to housing
  • Staff: transport to the workshop and a labour pool nearby
  • Distance to customers: for heavy, cheap goods every kilometre eats into the margin

Risks of manufacturing projects: what to watch

  • Power shortages in the south: a connection can take months and cost a lot
  • The tenge exchange rate: equipment and some raw materials are imported
  • Seasonality in building materials: revenue falls in winter while costs stay
  • Price competition with imports from China
  • Environmental requirements and sanitary protection zones limit the choice of plot
  • Investment commitments in an industrial zone: if you don't meet them, the plot can be taken back
  • Staff: skilled workers and process engineers have to be found and trained

I'll find an industrial plot or workshop

Describe your production, the power capacity you need and the volume of raw materials. I'll find plots in the industrial zone or near highways, request the technical conditions and check access and documents before the deal.

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Questions and answers

What kind of manufacturing is profitable to start in Almaty?

In the Almaty industrial zone, the fastest-growing sectors are building materials, machine building, logistics, chemicals, waste recycling and everyday consumer goods. Production with its market within delivery range and local raw materials tends to be more profitable.

How do you get into the Almaty industrial zone?

You apply to the zone's management company with a business plan, get approval and sign a contract with investment commitments. The zone currently has 151 companies, and about 376 ha is being prepared for expansion. Confirm the procedure and terms with the zone operator.

Can a foreigner start a manufacturing business in Kazakhstan?

Yes. Usually you open a TOO (a Kazakh limited liability partnership), which can own or lease industrial land and buildings. The registration procedure is described in the guide to opening a TOO.

Is there enough electricity for a factory near Almaty?

Southern Kazakhstan currently covers about half of its demand from local generation. Capacity for a specific plot needs to be confirmed with technical conditions before purchase, otherwise you may need your own substation.

Is it profitable to produce building materials in Kazakhstan?

There is demand: in 2025 the country completed 20.1 million m² of housing. But the market is seasonal and depends on logistics. At my concrete plant I covered the winter dip by selling bagged aggregates, so before buying equipment I advise working out delivery and a plan for winter.

What tax breaks are there in Kazakhstan's SEZs?

SEZ participants get tax breaks and ready infrastructure, but the specific set depends on the zone and the current version of the Tax Code. A tax adviser checks the terms for your project.

Sources
  1. Kapital.kz: 11 new industrial projects worth 12.6 billion tenge to launch in Almaty, 04.07.2026
  2. Zakon.kz: a new industrial zone opens in Almaty Region, 09.2025
  3. Kazinform: small industrial zones planned in Almaty Region
  4. Informburo.kz: the Almaty blackout as a warning, will Kazakhstan have enough electricity, 22.09.2026
  5. Kapital.kz: Kazakhstan completed 20.1 million m² of housing in 2025
  6. Bizmedia.kz: in 7 years the Middle Corridor (TITR) grew traffic almost fivefold (bypass line around Almaty), 10.03.2026
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