Kazakhstan’s automotive industry is entering a new stage of development. Astana Motors, together with partners from South Korea and the United States, plans to localize the production of aluminum wheel rims in the country. The project goes beyond the construction of a new plant – it is aimed at reducing import dependence and positioning Kazakhstan as a regional producer of automotive components, DKNews.kz reports.
On February 4 in Astana, a trilateral memorandum was signed between Astana Motors, the US-based company Open Element, and South Korea’s Hands Corporation to establish a joint venture. The signing ceremony took place at the Government House of the Republic of Kazakhstan and was attended by First Deputy Prime Minister Roman Sklyar, Deputy Minister of Foreign Affairs Alibek Kuantyrov, and the founder of Astana Motors, Nurlan Smagulov. The memorandum was signed by Astana Motors CEO Beknur Nesipbayev, Chairman of Hands Corporation Seung Hyun Chang, and founder and CEO of Open Element Mustapha Akkari.
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Not Assembly, but a Full Technological Cycle
The project предусматривает the construction of a modern plant in Kazakhstan for the production of aluminum wheel rims. This will be the country’s first facility of its kind with a full technological cycle, including the transfer of advanced engineering and manufacturing solutions.
Such a format allows Kazakhstan to move to a new level of localization in the automotive industry. The joint venture is expected not only to produce finished components but also to contribute to the development of related industries and the formation of a sustainable automotive components ecosystem.
Why Kazakhstan Was Chosen
According to foreign partners, Kazakhstan was selected as an investment location due to a combination of economic and strategic factors. The country is demonstrating steady growth in vehicle production while still remaining highly dependent on imported automotive components. This creates an objective need for localization.
An additional advantage is the availability of raw materials and a developed aluminum sector, making local production of aluminum wheels economically viable and competitive.
Korean Expertise and Global Reach
Hands Corporation is one of the world’s leading manufacturers of aluminum wheel rims. Founded in 1972, the company ranks among the world’s top six producers and holds more than 60 percent of the South Korean market. Its production facilities are located in South Korea, China, and Morocco, and its clients include major global automakers.
“We have proven technologies, scale, and experience working with global original equipment manufacturers. Kazakhstan has become the next logical step in expanding our manufacturing presence,” said Hands Corporation Chairman Seung Hyun Chang.
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The US Partner’s Perspective
Open Element specializes in the localization and scaling of automotive component manufacturing. For the company, Kazakhstan represents a market with long-term industrial potential.
“At Open Element, we build intelligent manufacturing supply chains where technology, human capital, and long-term demand converge. Kazakhstan offers exactly this opportunity – a market with real industrial depth and ambitions for scaling. Partnership with Astana Motors gives this concept momentum: the company’s leadership in the automotive sector, existing production capacities, and strong demand form the foundation for a sustainable, globally competitive, and future-oriented project,” said founder and CEO Mustapha Akkari.
From Domestic Demand to Export Markets
At the initial stage, the plant’s products will be supplied to Astana Motors’ automotive factories. In the future, the project is expected to expand deliveries and work with other automotive manufacturers in the EAEU and CIS markets.
“At the first stage, the plant’s output will be focused on meeting the needs of Astana Motors’ automotive plants. Going forward, the project is designed to expand supplies and cooperate with other automotive industry players in the EAEU and CIS countries,” said Astana Motors CEO Beknur Nesipbayev.
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A Step Toward an Automotive Components Hub
The large-scale aluminum wheel production project is part of Kazakhstan’s long-term strategy to transition from an assembly-based model to the role of a major producer and supplier of automotive components, not only for the domestic market but also for regional markets.
Experts note that initiatives like this are shaping a new industrial profile for Kazakhstan’s automotive sector and strengthening the country’s position in global manufacturing value chains.
