Kazakhstan and China Plan $1.2 Billion Steel Plant with 3 Million Ton Capacity

Kazakhstan and China are advancing plans for a major joint venture: the construction of a metallurgical plant in Kazakhstan with an annual capacity of up to 3 million tons of steel. The project, valued at approximately $1.2 billion, was a key outcome of discussions during the visit of Kazakhstan's Minister of Trade and Integration, Arman Shakkaliyev, to China's Fujian province.

The investment is being negotiated with the Chinese company Fujian Hengwang Investment. The proposed plant is expected to create around 2,500 jobs and will target both the domestic Kazakh market and export channels.

Beyond the steel plant, the talks focused on localizing several other industrial productions in Kazakhstan. Agreements are being developed with textile firm Jinyuan to launch yarn production and develop deep processing facilities. With Weihua Heavy Machinery, plans are underway to establish production for lifting equipment and engineering centers.

Further discussions involve Shenda Electric for organizing the production of transformers and other electrical products, and Jinlun Hi-tech Fiber for projects in synthetic fibers and chemical processing.

Minister Shakkaliyev emphasized the strategic importance of partnering with specific Chinese provinces like Fujian, a major industrial and export hub. "We work with provinces, not with China as a whole," he stated. "Through its ports, Kazakh products can access southern China and ASEAN countries."

According to trade data, the trade turnover between Kazakhstan and Fujian province reached about $522 million in 2025.