In April in Fujian, the sea breeze gently brushes with warmth. At the meeting with Chinese entrepreneurs, expectations flickered in the eyes of Arman Shakariev, Minister of Trade and Integration of Kazakhstan. The blueprint displayed behind him depicts not only a factory, but also the outline of Kazakhstan's industrial future. Shakariev sincerely stated that Kazakhstan needs to deeply root its production capacity in its homeland, and China's partners are possessing the technology and capital to turn this vision into reality.

This profound business conversation ultimately led to a long planned large-scale cooperation plan. Fujian Hengwang Investment Co., Ltd. of China will join hands with Kazakhstan to jointly invest approximately 1.2 billion US dollars to build a comprehensive steel plant with an annual production capacity of 3 million tons in the Jiangbul Oblast of Kazakhstan. This is not only a flow of funds, but also an important reshaping of the industrial landscape in Central Asia.

1.2 billion US dollars to build a modern steel base

This planned large-scale steel project will be located in an industrial park called the "Silk Road" in Jiangbu'er Prefecture. It is not a traditional high-energy consumption factory, but a green short process integrated steel plant that adopts advanced gas based vertical furnace direct reduction iron technology. This design is more in line with local resource conditions and sustainable development concepts.

The total investment of the project is about 1.2 billion US dollars, which is one of the significant single investments in the steel industry in Central Asia in recent years.

In terms of production capacity planning, the total designed production capacity of the factory is 3 million tons per year, but the construction will be carried out in stages. According to the plan, the first phase of the project will be completed by 2027, achieving an annual production capacity of 1 million tons and officially put into operation, gradually increasing to the design capacity thereafter.

In order to ensure the stability of energy supply and control costs, the project will also simultaneously construct a gas turbine power plant with an installed capacity of 350 megawatts in the second phase, thereby achieving energy self-sufficiency.

Layout driven by both resources and markets

Fujian Hengwang Investment's decision to establish a factory in Kazakhstan is driven by thoughtful strategic considerations. Kazakhstan's abundant natural resources and advantageous geographical location constitute a strong attraction.

Firstly, there is a unique resource endowment. The project will make full use of local resources in Kazakhstan, mainly using iron ore from Karaganda, Kostana and other places, combined with local natural gas with price advantages as energy. This resource combination makes short process steelmaking significantly cost-effective compared to long-distance transportation of raw materials or finished steel products from China.

Secondly, there is a vast market space with radiation. Kazakhstan's domestic infrastructure construction and real estate market are in the development stage, and there is a sustained demand for steel. At the same time, the country is located at the center of the Eurasian continent, making it easy for products produced here to be sold to Russia, other Central Asian countries, and even Eastern European markets. This factory will become an important strategic pivot for the internationalization layout of China's steel production capacity.

2500 positions and technological upgrades

For Kazakhstan, the value brought by this cooperation far exceeds mere economic figures.

Minister Shakariev emphasized in the meeting the positive significance of the project for employment and technological progress. When the project is fully operational, it is expected to directly provide approximately 2500 stable job positions. More importantly, these positions will no longer be simple physical labor, but skill based positions that require the operation of modern direct reduction iron equipment. This will cultivate a group of modern industrial workers for Kazakhstan and introduce a complete advanced steel production management system, truly achieving the goal of "keeping production capacity locally".

In the future, this factory will mainly produce wire rods, threaded steel urgently needed in the domestic market of Kazakhstan, as well as strip steel, various angle steels, and section steels used for manufacturing pipelines. These products will prioritize meeting Kazakhstan's domestic construction needs, while surplus production capacity will be exported through international logistics channels such as the China Europe freight train, creating foreign exchange revenue for the country.

With the consensus reached by both parties in Fujian, this steel plant has moved from the planning blueprint to the substantive construction stage. When the first batch of molten steel comes out in 2027, it will become a new milestone in the production capacity cooperation between China and Kazakhstan, and also one of the most solid and powerful witnesses in the process of jointly promoting the docking of the "the Belt and Road" initiative and the "Bright Road" national development strategy.Editor/Yang Meiling