JSC “NC “Kazakhstan Engineering” (“Kazakhstan Engineering”/Company), in order to attract investments in the Company's enterprises and their financial recovery, previously decided to privatize 9 subsidiaries and affiliates.

In the interests of ensuring national security, in August of this year, on the initiative of Kazakhstan Engineering, it was possible to exclude 3 enterprises important for the defense industry from the Comprehensive Privatization Plan: Semey Engineering JSC, Kazakhstan Aviation Industry LLP, Steel Manufacturing LLP. JSC "Semipalatinsk Machine-Building Plant" was also excluded due to the rehabilitation procedure (in accordance with bankruptcy law).

Currently, 5 enterprises of the Company are subject to transfer to the competitive environment: JSC 811 Automobile Repair Plant KI, JSC Petropavlovsk Heavy Machine Building Plant, JSC Munaimash, JSC Tynys, JSC Machine-Building Plant named after. CM. Kirov.

Until the Company completely withdraws from their shareholders (until 2025), it is planned to transfer the existing production of special production at some of them. products to other facilities of the Company.

We note that the Company has revised its approaches to the sale of certain assets and today it is proposed to carry out a phased implementation. At first, no more than 51% of the share will be offered for sale, at the second stage 49%. The Company will begin the second stage of the implementation of enterprises after the implementation by the investor / investors of a set of measures to develop civil production at the acquired factories and improve social conditions for employees of these enterprises.

Full transfer of strategic productions to the competitive environment is not planned.