Almaty Autoparts Production plant
Photo by: Astana Motors

Today, Kazakhstan’s Astana Motors and South Korean auto parts maker Youngsan officially launch mass production of car seats at a new plant in the Industrial Zone of Almaty. The initial joint investment in the localization project totaled KZT 4 bln.

The opening ceremony was attended by Azamat Panbayev, Chairman of the Industry Committee of the Ministry of Industry and Construction of the Republic of Kazakhstan; Alisher Abdykadyrov, Deputy Akim of Almaty; Park Jong-Bum, Chairman of Youngsan; and Nurlan Smagulov, founder of Astana Motors.

In December 2024, the company produced a pilot batch of seat foam cushions, completed certification and was approved by Hyundai Motor Company (HMC, Republic of Korea) as a supplier of components for the production of Hyundai cars.

As compliance with international standards and the skill level of its employees were confirmed, the company entered into an industrial assembly agreement with the government for seat production.

Almaty Autoparts Production plant
Photo by: Astana Motors

“Astana Motors strengthens its market position as a manufacturer. We thank the Head of State, the Government of Kazakhstan and the Akimat of Almaty for their support of the industrial sector. The President noted the important role of private investors in the development of the country’s economy and emphasized that reasonable mutual obligations should be assumed by the plants to preserve jobs and upgrade production. We understand the full extent of our commitments and are moving towards our goal of localizing most of car components and starting to process raw materials in order to be less dependent on external factors, to cultivate a generation of qualified engineers and to promote the development of small and medium enterprises (SME). We also thank Youngsan for the trust, technology and experience that they share with us, and we believe in the success of our collaboration,” emphasized Beknur Nesipbayev, CEO of Astana Motors.

Chairman of Youngsan Park Jong-Bum in turn thanked Astana Motors “for their strong energy and unwavering belief in the Kazakhstan’s industry, along with its continuous efforts that have created new opportunities for cooperation and development.”

“We see the results of our work based on the solid foundation created between Astana Motors and Youngsan. This is only the first step. In line with the rapid changes in the automotive industry in the world and the CIS, we will constantly work in this direction. I would like to emphasize that we need continuous support from the government of Kazakhstan in terms of infrastructure and many other areas to support the automotive industry. I am also happy to see all young engineers at our plant. These engineers are the future of the Kazakhstan’s industry,” said Park Jong-Bum, Chairman of Youngsan.

Founder of Astana Motors Nurlan Smagulov and Chairman of Youngsan Park Jong-Bum
Photo by: Astana Motors

The capacity of Almaty Autoparts Production is 100,000 car seats per year. The plant has already started production of car seats for CKD assembly of Hyundai Tucson at Hyundai Trans Kazakhstan. In the near future, the plant will start producing seats for Hyundai Santa Fe.

Almaty Autoparts Production plans to supply seats to the multi-brand plant Astana Motors Manufacturing Kazakhstan (due to open in Q2 2025), as well as to other automobile plants.

Astana Motors has reached agreements with the Chinese companies Chery Automobile and Great Wall Motor Company (GWM) to use car components made by Almaty Autoparts Production for the production of the Chery Tiggo 2 Pro, Haval Jolion and Tank 300 at Astana Motors Manufacturing Kazakhstan.

Almaty Autoparts Production have launched technological operations for the production of foam seats.

Almaty Autoparts Production plant
Photo by: Astana Motors

In 2026, the plant will enter the second stage of localization, which includes sewing seat upholstery from supplied raw materials. The enterprise will invest an additional KZT 720 mln to build and equip sewing workshops, as well as train personnel.

Almaty Autoparts Production, with an area of production facilities of 4,850 sq. meters, has an automated line for the production of foamed polyurethane products (seat foam cushions). The line includes a pouring robot, a conveyor with mold carriers and heating units, and a roller vacuum crusher.

To produce seats, the plant uses equipment, raw materials and components from the Republic of Korea, including liquid raw materials for the production of seat foam cushions; inserts, as well as components such as frames, seat upholstery, plastic elements.

The plant has 65 employees. At the second stage of its development Almaty Autoparts Production will introduce a seat upholstery workshop and increase the number of personnel to 95. The plant employees were trained by experienced specialists from Youngsan and, together with Korean engineers, installed and adjusted the equipment.

Astana Motors established an automobile cluster in the Industrial Zone of Almaty, including Hyundai Trans Kazakhstan, Astana Motors Manufacturing Kazakhstan, a logistics hub and a technology park for the production of car components.

Hyundai Trans Kazakhstan plant
Photo by: Astana Motors

Astana Motors will continue to expand production and deepen the localization of cars and car components. In particular, the Company plans to introduce the production of the heating system, ventilation and air conditioning systems, mufflers (exhaust system) and floor coverings.

Source: forbes.kz