Kazakhstan and China Advance Steel Plant Construction
Prime Minister Olzhas Bektenov and Zeng Zhaoqiang, Chairman of the Board of Fujian Hengwang Investment, finalized an agreement on Feb. 27 to construct a large-scale metallurgical plant in the Jibek Joly Special Economic Zone in Kazakhstan’s Zhambyl Region.
The project, a key outcome of the Kazakh-Chinese investment roundtable held during Bektenov’s official visit to China in November 2024, involves a $1.2 billion investment from Fujian Hengwang Investment. The plant is projected to create 2,500 jobs in the region.
Construction is scheduled to commence in April, with an initial production capacity of 1 million tons of steel by 2027. The first phase requires an investment of 160.2 billion tenge (US$318 million). By 2029, the plant is expected to reach its full capacity of 3 million tons, supported by an additional 312.8 billion tenge (US$621.1 million) in funding.
The plant will utilize Kazakhstan’s natural resources, including natural gas and iron ore sourced from the Karagandy, Kostanai, and Ulytau Regions, as well as lime. Its product line will feature wire rods, reinforcement bars, strip steel for pipe production, and various profile steels.
A second phase of the project will see the construction of a 350-megawatt (MW) gas turbine power plant, requiring an investment of 201.3 billion tenge (US$399.7 million) to meet the metallurgical facility’s energy needs. The facility will adopt Direct Reduction Iron (DRI) technology, designed to enhance product quality and strengthen the global competitiveness of Kazakhstan’s metallurgy sector.
“This is a significant project for us. It will help enhance Kazakhstan’s export capabilities. The government fully supports your plans and will ensure all necessary support for their implementation,” he said.
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