“We Choose Kazakhstan’s One” program is called to promote home market of goods and services

  The day before the forum Chief of Staff of Kazakhmys PLC Serik Turdaliyev gave an exclusive interview to Kazinform. He told about the company's strategy on expansion of purchasing by domestic manufacturers and answered questions concerning the antirecessionary measures.

 At the beginning of the year Akimat of Karaganda region held activities on the Kazakh content increase. As a result the regional manufacturers signed more than 400 contracts with the national companies and strategic enterprises for the supply of their goods and services. How is Kazakhmys involved in implementation of this program? How much did the share of the domestic enterprises increase in the volume of purchases of your company?

    As you know Kazakhmys Group heads a number of township-forming enterprises in several regions including Karaganda oblast. To date the goods and services produced by Kazakh enterprises make up 74.4% in the amount of purchases of Kazakhmys. We are striving to increase this index further. The dynamics of such growth largely depends on such forums as we hold today and on small and medium businesses ready for cooperation with our company. As a commercial company we are interested in high quality and competitiveness of goods and services we buy. Thus we always try to prefer a domestic producer to a foreign one.

 Today we mostly use goods and equipment of Karaganda, Zhezkazgan, Temirtau and Balkhash manufacturers. Their quality is highly competitive with foreign analogs. The program "We choose Kazakhstan's one" should give a new impulse to the development of the domestic market of goods and services, growth of market competitiveness, production innovations, improvement of quality and increase of range of products.

 Kazakhmys Group will take part in construction of Balkhash Thermal Power Plant. It is the first energy project based on the principles of state-private partnership. What is the company's interest and share in this project?

The Group bought 5% of shares of "Balkhash Thermo Power Plant" JSC. This project takes into account all demnds of our enterprises, located in the region. Future production of electric energy at the Balkhash Plant will allow to reduce expenditures and increase the security of energy supply of "Kazakhmys" enterprises working in the region. The quality of provision of the local population with electricity will increase as well. We believe that the cooperation of "Kazakhmes" Group and the Kazakh Government in the construction of the Balkhash Thermo Power Plant promotes development and strengthening of the national energy sector.

Does the corporation plan to take part in realization of any other strategic projects?

Participation in the realization of other strategic projects remains the top priority of the Group, and our specialists examine all opportunities in this direction.

Today almost all large companies, including "Kazakhmys" Corporation, conduct work on diversification of business. Do you plan any other steps on this direction? Can you tell about the program on reduction of expenditures of the company?

I have already said that the diversification of business and development of possible large projects are the main part of our long-term strategy.  The Group took essential steps on diversification of the business last years. But in 2008 due to the turn in the market the program on reduction of company's expenditures was developed. Task on preservation of finances and protection of profitability was set before the Group for 2009. This provides protection of interests of our members. 

How do you appreciate the antirecessionary measures taken by our Government? Do Kazakh manufacturers of the material sector need any other support of the Government?

Of course, every crisis is unique and the economy of every country is unique as well. In this regard there is no a universal way for Government to take antirecessionary measures. Some measures are more effective, the others are less. It is important that the Government did not stay aside in the crisis. And the positive results of its activity are obvious.

Do you agree with the opinion that the crisis in Kazakhstan has reached its bottom?

I am not sure if we have the proper authority to comment the crisis's bottom in the Kazakh or world economy. Our work is to produce metals and electricity.

Thank you for the interview.