In 2023, the number of operating businesses of chemical industry in the Republic of Kazakhstan was:
- 1,082 businesses with the type of economic activity "Production of chemical industry products" or +13.9% than in 2022;
- 1,470 businesses with the type of economic activity "Production of rubber and plastic products" or -0.1% than in 2022.
Chart 1 - Number of operating chemical industry businesses in the Republic of Kazakhstan for 2019 — 2023
| Production of chemical industry products | Production of rubber and plastic products | |
| 2019 | 738 | 1293 |
| as a % of the previous year | 109,7 | 104,6 |
| 2020 | 810 | 1343 |
| as a % of the previous year | 109,8 | 103,9 |
| 2021 | 852 | 1362 |
| as a % of the previous year | 105,2 | 101,4 |
| 2022 | 950 | 1472 |
| as a % of the previous year | 111,5 | 108,1 |
| 2023 | 1082 | 1470 |
| as a % of the previous year | 113,9 | 99,9 |
Source: Bureau of National Statistics of the Agency for Strategic Planning and Reforms of the Republic of Kazakhstan
The number of small-scale businesses prevails in the industry.
So, in 2023, out of 1082 busnesses with the type of economic activity "Production of chemical industry products", 97% are small-scale businesses, 1.9% are medium-scale, 1.1% are large-scale. Of the 1,470 businesses with the type of economic activity "Production of rubber and plastic products", 98.1% are small-scale, 1.6% are medium-scale, only 0.3% are large-scale.
Many businesses are being unbundled and re-registered as small businesses. An insufficient critical mass of chemical industry businesses remains. The number of large-scale and medium-scales businesses in the industry is not yet significant.
In the segment of economic activity "Production of chemical industry products", the number of medium-scale businesses for 3 years from 2019 to 2021 decreased from 16 to 13. In 2022 and 2023, their number increased In 2023 the number of operating medium-scale businesses amounted to 21 (an increase compared to 2019 +5 businesses).
The following situation is observed for large-scale businesses: if their number has been growing for several years (from 2019 to 2022), then in 2023 the number of large-scale businesses decreased by -1 compared to 2022 (from 13 in 2022 to 12 in 2023).
Graph 1. The number of operating businesses with the type of economic activity "Production of chemical industry products" in the Republic of Kazakhstan for 2019 - 2023
Source: Bureau of National Statistics of the Agency for Strategic Planning and Reforms of the Republic of Kazakhstan
The number of medium-scale businesses, by type of economic activity "Production of rubber and plastic products", has increased over the past five years from 16 in 2019 to 24 in 2023 ( + 8 businesses compared to 2019). At the same time, the number of operating medium-scale businesses in 2022 amounted to 29, or +31.8% more than in 2021 (+ 7 businesses). Thus, the number of medium-scale businesses in 2023 decreased by -5, practically remaining at the level of 2021.
The number of large-scale businesses remains at the level of 2021 (in 2021 and 2023 there were 4 operating large-scale businesses).
Thus, only 2 large-scale businesses have been launched for five years.
Graph 2 - The number of operating businesses with the type of economic activity "Production of rubber and plastic products" in the Republic of Kazakhstan for 2019 - 2023
Source: Bureau of National Statistics of the Agency for Strategic Planning and Reforms of the Republic of Kazakhstan
The necessary conditions for the development of chemical production in the country, given the availability of own raw materials (oil and gas), have not been created. This leads to a small number of large-scale businesses in the chemical industry in the country:
1) "Production of chemical industry products" - in more than half of the regions (55%) of the Republic of Kazakhstan there are no large-scale businesses (in Abai, Akmola, Almaty, Atyrau, West Kazakhstan, Kostanay, North Kazakhstan, Turkestan regions, Zhetisu, Ulytau, Astana);
2) "Production of rubber and plastic products" - in 17 out of 20 (85%) regions of the Republic of Kazakhstan there are no large-scale businesses (in Abai, Aktobe, West Kazakhstan, Zhambyl, Karaganda, Kostanay, Kyzylorda, Mangystau, Pavlodar, North Kazakhstan, Turkestan, East Kazakhstan regions, the regions of Zhetisu, Ulytau, the cities of Astana, Almaty, Shymkent).
Most of the operating businesses as of 1.01.2024 with the types of economic activity "Production of chemical industry products" and "Production of rubber and plastic products" are registered in cities of republican significance: Almaty (operating businesses of the "southern capital" in their total number in the Republic of Kazakhstan amount to 25.9% and 21.8%, respectively); Astana (12.2% and 12.9%, respectively); Shymkent (11% and 7.3%, respectively).
Also, businesses of these types of economic activity are geographically, to a greater extent, located in the production regions of the country, including oil-producing regions, which is preferable in world practice for the development of chemical industry: in Pavlodar region (6.4% and 6%, respectively); Karaganda region (6.5% and 10.6%, respectively); Almaty region (4.5% and 8.1%, respectively); Aktobe region (4.4% and 3.9%, respectively); Mangystau region (4.8% and 4.3%, respectively); Atyrau region (2.6% and 2.2%, respectively).
For several years, the share of gross value added (hereinafter – GVA) for the "Production of chemical industry products" in the total volume of industrial GVA (GVA is about 1.8%) and for the "Production of rubber and plastic products" (GVA is about 0.7%) is not significant and remains almost at the same level.
Graph 3 Dynamics of the share of industrial GVA in the Republic of Kazakhstan for 2018 – 2022 (in %)
Source: Bureau of National Statistics of the Agency for Strategic Planning and Reforms of the Republic of Kazakhstan
The volume of production of chemical industry products in 2023 amounted to 957.5 billion tenge, which practically remains at the level of 2022 (the growth of the volume index of 2023 by 2022 +0.2%).
The volume of production of rubber and plastic products amounted to 444.1 billion tenge, which is +5% more than in 2022.
Graph 4 Indices of the production volumes of industry and by type of economic activity in the Republic of Kazakhstan for 2019 – 2023 (in % compared to the previous year)
Source: Bureau of National Statistics of the Agency for Strategic Planning and Reforms of the Republic of Kazakhstan
1. In 2023, production in volume terms increased compared to the level of 2022, for example, chemical substances and chemical products: hydrogen fluoride (hydrofluoric acid) – +1.8 times; detergents — +20%; polyurethanes in primary forms — +17.8%; chromium oxide — +4.3%; polymer–based paints and varnishes - +3.8%; carbon dioxide and styrene polymers in primary forms — +3.4% each.
In 2023, there is a significant decrease (-41% compared to 2022) in the production of phosphorus fertilizers, which has not been observed in the last five years from 2018 to 2022. The decrease in phosphorus fertilizers was only in 2018 by 16.9%. This situation will have a negative impact on the supply of phosphorus fertilizers, both within the domestic and world market. Accordingly, the employment of industry workers is decreasing.
Production of cement additives decreased in 2023 compared to 2022 in volume terms – -48.3%; sodium bichromate — -31.1%; putty — -19.2%; sulfuric acid in monohydrate — -7.3%; nitrogen fertilizers -4.9%; ethyl alcohol -4%; etc.
2. Production of rubber and plastic products increased in 2023 for: conveyor belts and drive belts made of rubber – +12.8%; pipes, tubes, hoses and their fittings made of plastics — +5.6%; household items made of plastics – +4.9%.
In 2023, production of plates, sheets, films, foils and strips of plastics decreased -21.9%; pipes, tubes, sleeves and hoses made of rubber (except ebonite) -13%; doors, windows, door boxes and window frames, door sills, shutters, blinds and similar products and their plastic parts — -1.9% , etc.
It should be noted that the incomplete utilization of the production capacities of chemical industry businesses negatively affects their production volumes, which ultimately leads to the replenishment of goods resources through imports from other countries.
For example, businesses producing phosphorus fertilizers were loaded by only 11.6% in 2022. In this regard, the volume of production of phosphorus fertilizers is also decreasing by 41% in 2023. The employment of workers in the industry is also decreasing.
The volume of investments in fixed assets by type of economic activity "Production of chemical industry products" in 2023 amounted to 194.9 billion tenge, which is -34.5% less than in 2022. The share of this industry accounts for 2.4% of the total investment in fixed assets in the industrial sector.
If investments in the type of activity "Production of chemical industry products" have been constantly increasing annually from 2019 to 2021, then in 2022 and 2023 investments in this type of activity are decreasing annually.
The volume of investments in fixed assets by type of economic activity "Production of rubber and plastic products" amounted to 101.4 billion tenge in 2023, or +6.5% more than in 2022.
Investments in this type of activity account for 1.2% of the total investment in fixed assets in industry.
Investments in the type of economic activity "Production of rubber and plastic products" show a tendency to increase their volume annually, especially a significant increase in the volume of investments in this type of activity is observed in 2021 (+ 3.9 times increase in the volume of investments in 2021 compared to the level of 2020).
Graph 5 Indices of the volume of investments in fixed assets by type of economic activity "Production of chemical industry products" and "Production of rubber and plastic products" for 2019 — 2023 (in % compared to the previous year)
Source: Bureau of National Statistics of the Agency for Strategic Planning and Reforms of the Republic of Kazakhstan
The actual number of employees on average for January-December 2023 was:
- for the "Production of chemical industry products" - 20.5 thousand people, which is +15.8% more than in January-December 2022;
- for the "Production of rubber and plastic products" - 5.7 thousand people, or +14.6% more than in the same period of 2022.
The average monthly nominal salary of one employee for January-December 2023 was:
- for the "Production of chemical industry products" - 402,572 tenge, or +12% more than in January-December 2022;
- for the "Production of rubber and plastic products" - 280,710 tenge, or +24.8% more than in the same period of 2022.
Chart 2 Dynamics of labor indicators for 2019 — 2023
| 2019 | 2020 | 2021 | 2022 | 2023 | |
| The actual number of industrial workers, thousand people | 626,6 | 608,5 | 607,6 | 613,8 | 629,8 |
| in % to the corresponding period of last year | 100,6 | 97,1 | 99,8 | 101,0 | 102,6 |
| the actual number of employees by type of economic activity "Production of chemical industry products", thousand people | 16,4 | 16,6 | 18,1 | 17,7 | 20,5 |
| in % to the corresponding period of last year | 102,6 | 101,4 | 108,7 | 98,1 | 115,8 |
| the actual number of employees by type of economic activity "Production of rubber and plastic products", thousand people | 2,9 | 3,7 | 4,1 | 5,0 | 5,7 |
| in % to the corresponding period of last year | 88,5 | 127,3 | 111,8 | 121,4 | 114,6 |
| The average monthly nominal salary of one industrial worker, tenge | 257 580 | 284 615 | 325 467 | 416 225 | 494 025 |
| in % to the corresponding period of last year | 110,2 | 110,5 | 114,4 | 127,9 | 118,7 |
| the average monthly nominal salary of one employee by type of economic activity "Production of chemical industry products", tenge | 197715 | 220287 | 268672 | 359438 | 402572 |
| in % to the corresponding period of last year | 112,7 | 111,4 | 122,0 | 133,8 | 112,0 |
| the average monthly nominal salary of one employee by type of economic activity "Production of rubber and plastic products", tenge | 165507 | 171504 | 178572 | 224889 | 280710 |
| in % to the corresponding period of last year | 115,0 | 103,6 | 104,1 | 125,9 | 124,8 |
Source: Bureau of National Statistics of the Agency for Strategic Planning and Reforms of the Republic of Kazakhstan
Analysis of data on the formation of a resource base related to the chemical industry shows that resources are formed, to a large extent, at the expense of local production in the Republic of Kazakhstan.
For example, in January-December 2023, the resources of sulfides (64.7% of the total resources of this product), carbides (88.2%), sulfuric acid (78.9%), phosphorus, oxides and hydroxides of chromium (100% each) are replenished by production in Kazakhstan.
Resources for highly processed goods with high added value continue to be imported from other countries.
So, if significant amounts of phosphorus fertilizers (by 98.6%), paints and varnishes based on polymers (60%) are produced from resources extracted in the Republic of Kazakhstan, then the resources of toothpaste, cleaning paste, automobile tires (100% each), ethylene polymer in primary forms (98.2%), styrene polymer in primary forms (93.2%), detergents (89.8%), other amino resins (74.7%), soaps and surfactants (69.1%), etc. are formed due to their import from other countries.
