Temirzhan Kairatovich, are there any new projects and productions that are planned to be implemented?

Let me remind you that NC Kazakhstan Engineering JSC is a machine-building holding company, some of whose factories can carry out defense orders. In this part, the main thing for us is to meet the needs of customers. That is, to produce and deliver what our customer asks for.

Modern and well-equipped factories can produce a wide range of products - from civilian to military. I won’t list all the production plans for this year, just a few examples:

• JSC "PZTM" won tenders for the supply of equipment for the oil and gas industry - these volumes will be completed in the next few months. In addition, work continues to create modern solutions for the needs of military customers. The first samples of a transport-charging machine were produced.
• JSC Ural Plant Zenit continues work on the production of a multifunctional vessel for the needs of the Naval Forces of the Armed Forces of the Republic of Kazakhstan. The appropriate infrastructure will be prepared for launching the vessel in Uralsk. This is a big and significant project.
• Last year, JSC Plant named after. Kirov" 3,559 units of personal computers were assembled and supplied based on the results of government procurement - similar work will continue this year. Orders for the repair of communications equipment, UAVs and others will also be completed.
• Our cartridge plant (Steel Manufacturing LLP) successfully produces pistol cartridges of 9x18 mm and 9x19 mm calibers. Work is underway to launch a production line for rifle cartridges of 5.45x39 mm and 7.62x54R calibers. The plant has already successfully produced a cartridge case for 5.45x39, and tests of the cartridge are being completed.
• Kazakhstan Aselsan Engineering LLP will continue to produce professional digital radio stations of DMR Tier III standards, as well as communication systems and IP telephony.

In addition, there are big ambitious plans. For example, a shipyard project on the Caspian Sea together with our Turkish partners. Everyone knows about the significance of this project.

The complete transformation and improvement of the work of the KAI aviation plant, the development of the Aviation Training Center (ATC) Zholaman will allow the creation of an aviation technical center in Astana.

An important step towards national security and development of the defense industry is our initiative to assemble small arms and artillery weapons together with our technology partners from Turkey and Serbia. By the middle of the year we will show a prototype of the mortar.

Our own projects for the production of SHAGALA-M UAVs, KARACUS copters, as well as the licensed assembly of UAVs with our partners from China should bear the first fruit this year.

The FPV kamikaze drone prototype is ready. We are conducting tests. By the way, we produced some of the UAV parts on 3D printers. The development of additive manufacturing in the holding is also a priority this year.

What measures are being taken by the Company as part of the implementation of the Government resolution on the privatization of quasi-state property?

At the end of 2020, the Government approved the Comprehensive Privatization Plan until 2025, within the framework of which the Company, in accordance with the established procedure, is working to transfer its assets into a competitive environment. In 2023, the implementation of the Comprehensive Plan was 80%, but by 2024 we strive to fulfill the plan by 100%.

At the same time, the internal plan for restructuring assets and optimizing the structure of the Company’s assets provides for the sale of 3 more assets, of which 2 were sold in 2023 and 1 asset is planned for sale this year.

This year we will continue to fulfill all the privatization tasks that the Ministry and the Government set for us.

What steps is the Company taking to implement sustainable development (ESG) principles?

In today's world, all organizations recognize the importance of integrating sustainability and responsibility into their operations. ESG principles have become the guiding principles for our Company, striving not only for financial sustainability, but also for creating a positive impact on the environment and society.

To achieve the strategic goal in the Sustainable Development Policy, we have defined goals, objectives and principles covering economic, environmental and social aspects. In this way, we are gradually adapting the activities of our enterprises to their sustainable development through the integration of the principles of sustainable development into everyday business processes and corporate decisions.

One of the elements of the Company’s environmental responsibility is its annual participation in city cleanup days and tree planting. Goals for the efficient use of energy and water resources are guidelines for us in 2024 throughout the holding.

The economic component at this stage is the Company’s focus on fully repaying its old debt obligations in order to provide financial support to the enterprises of the entire holding on the best terms.

The social component is a priority for the entire Holding. As an example, to strengthen cohesion, team spirit and support a healthy lifestyle, we hold sporting events and tournaments among all organizations in our industry. Also, depending on the season, there is skiing, hockey, running and so on.

At the same time, the Company is actively striving to develop the state language, to implement opportunities to provide ongoing charitable assistance, and to annually train its employees.

In 2024, the program for implementing ESG principles in subsidiaries and affiliates will be more active. We are focused on establishing common standards and approaches to sustainable development across the entire corporate portfolio.

With this approach, we not only build a sustainable business, but also invest in social well-being and environmental sustainability, creating an enabling environment for long-term success in a dynamic and competitive business world.

What about safety and health?

We are committed to creating a safe and healthy working environment for our staff and eliminating the possibility of any risk in the field of safety and health. Our business model is gradually transforming, improving the current occupational health and safety management system. As an example, in 2023 there were completely no emergencies or injuries among employees of the Group of Companies, which indicates the positive impact of the current rules and regulations, as well as the measures taken in this direction. This year we will continue to develop and improve this area, setting the same goal for ourselves - zero accidents and injuries.

I would also note that the Company adheres to the principle of zero tolerance for the use of alcoholic beverages by employees while performing their duties or affecting the performance of duties. This year we will approve an anti-alcohol policy. As you may have noticed from the publications, employees share a desire to maintain a healthy lifestyle.

What actions are currently being taken to pay off the debt?

As I said earlier, one of the urgent tasks is to pay off the old loan from the People's Bank. Over the past year, we reduced the debt to the bank and Samruk-Kazyna from 23.5 billion tenge to 9 billion tenge.

At the moment, we are taking comprehensive measures to properly fulfill our obligations and close old debts.

What work is being done in terms of personnel development? What are the plans for employees in 2024?

Personnel development is imperative to improve professional and personal competencies. This is, for example, honing skills, developing their personal qualities, which they will be able to apply in the future in the work process.

I would like to note that in order to assess professional skills, certification was successfully carried out, at which all employees confirmed the level of proficiency in their professional skills.

This year, special attention will be paid to the process of adaptation and integration of new, young employees into the work environment through mentoring, providing them with the necessary support and their further active involvement in the corporate culture and values ​​of the Company.

I set a goal for myself - to nurture and develop young technical personnel for the future of our holding.

Interviewed by Kamilla Ormanbetova.