Kazakhstan signs $2.5bn strategic agreement with John Deere

The document was signed by Yersaiyn Nagaspayev, Kazakh Industry and Construction Minister; Timur Onzhanov, Deputy Chairman of the Board of Baiterek National Managing Holding; and Dinara Shukizhanova, President of AgromashHolding KZ, along with the representatives of Eurasia Group AG, as well as Csaba Lejko, CEO of John Deere Walldorf International GmbH. 

The agreement provides for the expansion of John Deere agricultural machinery production in Kazakhstan, the development of maintenance infrastructure, the supply chain for spare parts, and the implementation of digital technologies. The project also includes the training of engineering and technical personnel for the industry.

The total volume of industrial cooperation over the next five years is estimated at 2.5 billion US dollars.

The new agreement will significantly expand production capacity and strengthen the technological base of Kazakhstan’s agricultural machine building industry. Kazakhstan reaffirms its readiness to provide full support for the implementation of this project within the framework of the state’s industrial policy, stated Yersaiyn Nagaspayev.

It was noted that the industrial cooperation project between John Deere and AgromashHolding KZ was launched this May. To date, 292 units of equipment worth 37.6 billion tenge have been produced. The strategic agreement consolidates plans for further increases in production volumes and the localization of key components.

Dinara Shukizhanova, President of AgromashHolding KZ, said that this long-term cooperation will enable Kazakhstan to gain highly qualified engineers and become a partner of the world’s largest agricultural machinery manufacturer.

We are building a very strong partnership with Kazakhstan, helping its agriculture sector produce the highest-quality food in the most efficient and environmentally friendly way. That is why Kazakhstan is a very important market for us, said Csaba Lejko.

John Deere is investing heavily in Kazakhstan, with retail outlets across 14 regions, as well as maintenance training centers and spare parts stores. The company has invested over 90 million US dollars in equipment.

It continues to invest and support Kazakhstan in the digitalization of the agricultural sector. The implementation of cutting-edge technologies helps Kazakhstan’s agro-industrial complex produce the best equipment for the industry locally, fostering technological advancement and sustainable growth.

As part of its investment in human capital, the company’s dealerships employ more than 600 highly qualified and well-paid specialists. These are professionals who have received education and continue to improve their skills both in Kazakhstan and abroad.

Csaba Lejko emphasized that the C5+1 meeting highlights how important Central Asia and Kazakhstan are - not only for John Deere, but also for the U.S. government.

He expressed his wishes for Kazakhstan to continue developing its economy, which is actively supported by the government, and for Kazakhstani farmers to have access to the world’s advanced technologies.

As reported, President Kassym-Jomart Tokayev arrived in Washington, D.C., for an official visit. The Head of State will participate in the C5+1 Summit.

Kassym-Jomart Tokayev began his visit with a meeting with U.S. Secretary of State Marco Rubio and other representatives of the Administration of President Donald Trump.

Kazakhstan and the United States signed a Memorandum of Understanding on cooperation in the field of critical minerals.

On the same day, the Head of State met with members of the U.S. House of Representatives – Jimmy Panetta, Carol Miller, Bill Huizenga, and Sydney Kamlager-Dove. Kassym-Jomart Tokayev also received Chairman and CEO of Chevron Corporation Michael Wirth, as well as held talks with Senator Steve Daines of the U.S. Republican Party, and Csaba Lejko, president of John Deere CIS and Central Asia.