ASTANA, Kazakhstan, February 27. Chinese company Fujian Hengwang Investment is throwing its hat in the ring with a project to set up a metallurgical plant in the Zhambyl region of Kazakhstan, Trend reports.
Prime Minister of the Republic of Kazakhstan, Olzhas Bektenov, met with Chairman of the Board of one of China's leading metallurgical companies, Fujian Hengwang Investment Co., Ltd., Zeng Zhaoqiang.
The progress of the agreements made during the Kazakhstan-China Investment Roundtable, held during the working visit of the Prime Minister of Kazakhstan to China in November 2024, was discussed.
The main topic of the meeting was the implementation of the project to construct a steel mill with a capacity of 3 million tons of steel in the special economic zone Jibek Joly in the Zhambyl region. The total investment amount from the Chinese investor is estimated at $1.2 billion. As part of the project, 2,500 jobs will be created.
According to the investor’s plans, the production capacity in the first stage in 2027 will reach 1 million tons of steel, with an investment of 160.2 billion tenge (approximately $320.4 million). By 2029, production will increase to 3 million tons, with additional investments of 312.8 billion tenge (approximately $625.6 million). The plant will use Kazakhstani raw materials: natural gas and iron ore, extracted in the Karaganda, Kostanay, and Ulytau regions, as well as limestone. As a result, the enterprise plans to produce a wide range of products, including wire rod, rebar, and strip steel for pipe production, as well as angle and profile steel.
As part of the second phase of the project, a gas turbine power plant with a capacity of 350 MW will be built to meet the needs of the metallurgical plant, with an investment of 201.3 billion tenge (approximately $402.6 million).
Bektenov articulated that this initiative will serve as a pivotal milestone for the advancement of indigenous metallurgy, augmenting production capabilities, and amplifying the nation’s export potential.
"This project is significant for us. It is an important direction that allows us to expand the export opportunities of our country. For the accelerated implementation of investment projects, the Investment Headquarters operates under the Government of Kazakhstan. The government fully supports your plans and will provide the necessary assistance for their implementation," emphasized the Prime Minister.
The plant will implement direct reduction iron (DRI) technology, which will ensure a high iron content in the products—over 90 percent—and enhance the competitiveness of Kazakhstan’s metallurgy.