en.Wedoany.com Reported - The Ministry of Trade of Kazakhstan stated that China's Fujian Hengwang Investment Company plans to build a large steel plant in Kazakhstan, with an investment of approximately $12 billion (about 8.26 billion RMB), and an annual production capacity of 3 million tons of steel.
This overseas plant construction investment by Fujian Hengwang Investment Company is a significant step in its international expansion strategy. The steel plant project underwent a series of feasibility studies and adjustments from initial contact to final confirmation. In May 2024, the Shymkent city government of Kazakhstan and Fujian Hengwang Investment Company signed a memorandum of understanding, planning a steel plant project with an annual capacity of 5 million tons and an investment of $1.75 billion, to be completed in three phases over five years. On January 13, 2025, the Fujian Provincial Development and Reform Commission filed for record the "Fujian Hengwang Investment Co., Ltd. capital increase for the first phase of the Yonggang steel production line project of $7.5 million," which at the time specified the "final destination: Astana, Kazakhstan." The first phase involved building a 1 million ton steel production line. In February 2025, the project plan underwent a major adjustment. The factory location was changed from the initial Shymkent city to the "Silk Road" Industrial Park in the Zhambyl Region, and the project scale was correspondingly adjusted to 3 million tons. Construction is planned to start in April 2025, with the first phase of 1 million tons to be operational by 2027, reaching full production of 3 million tons by 2029. Concurrently, the second phase of the project includes the construction of a 350MW gas turbine power plant. On July 10, 2025, the Fujian Provincial Development and Reform Commission issued a change notice, adjusting the "final destination" to "Zhambyl Region, Kazakhstan" and making arrangements for the split of the capital transfer route.
The steel plant will utilize raw materials from Kazakhstan, including natural gas, iron ore from the Karaganda, Kostanay, and Ulytau regions, as well as limestone. The plant's product range is diverse, covering wire rods, reinforcing bars, strip steel for pipe making, as well as angle steel and section steel. Once fully operational, the plant is expected to create 2,500 jobs and supply steel to both domestic and international markets.
During his visit to China, Kazakhstan's Minister of Trade and Integration, Arman Shakkaliev, also discussed potential projects with several companies. These include cooperation with Jinyuan Textile Company to build a spinning mill; cooperation with Weihua Heavy Industry Machinery Company to establish a lifting equipment manufacturing and engineering center; cooperation with Shenda Electric Company to produce transformers and electronic products; and cooperation with Jinlun High-Fiber Company to undertake synthetic fiber and chemical processing projects.
From a corporate perspective, Fujian Hengwang Investment's overseas plant construction will help it expand into international markets, secure overseas resources, and enhance its competitiveness. From an industry perspective, this project will promote cooperation between China and Kazakhstan in the steel sector, optimize the layout of the global steel industry supply chain, and have a certain impact on the international steel competitive landscape.
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