A consortium of Xinjiang Sanbao Industrial Group and Inner Mongolia Wanjiang Investment plans to build an electrolytic aluminium smelter with capacity of 300,000 tonnes a year in Kazakhstan's eastern Abai region, along with a 1 GW wind farm to power it. The smelter part is put at about $1 billion. Construction is scheduled to start in March 2027 and finish in December 2028. For now the parties have signed an agreement; no work has begun on site.
The documents were exchanged on 25 September at the Kazakhstan–China Investment Forum in Almaty, with the Abai regional administration signing for the Kazakh side. The same consortium signed a second agreement with the region for a particleboard plant in the city of Semey. According to the forum results published by Invest in Almaty, both documents were among the 10 key agreements exchanged that day. The forum produced around 50 commercial documents worth more than $8.2 billion in total, with those 10 accounting for $5.4 billion.
The smelter's technical plan
According to Kursiv and the regional outlet Abai Aqparat, the project includes an electrolysis shop, anode assembly and anode crushing shops, and supporting infrastructure. It is to use 630 kA electrolytic cells and energy-saving electrolysis technology. Chinese industry portal Shanghai Metals Market (SMM) describes it as a "green power aluminium" project, with the 1 GW wind farm supplying clean electricity across the whole production process, and calls the signed document a cooperation framework agreement.
Aluminium electrolysis uses enormous amounts of power, so electricity price and supply reliability go straight into production cost. Putting the wind farm and the smelter in one agreement makes sense. But the wind farm's own construction schedule, any energy storage, and how it will connect to the grid have not been disclosed so far.
The Semey particleboard plant
The second project is designed to produce 2 million particleboard sheets a year. Investment is $172 million, fully funded by the investors, with implementation planned for 2027–2028. The plant is expected to create 120 permanent jobs once running, plus 80 temporary jobs during construction.
Rules related to this news
The feedstock is unusual: mostly burnt and substandard timber from areas hit by forest fires, windfallen trees and other wood residues. Kursiv notes specifically that no healthy trees will be felled for the project. Output is aimed at the Kazakh market and exports to other Central Asian countries.
Where the $1.5 billion figure comes from
Many outlets headline "$1.5 billion for two plants", but they count it differently. Kursiv's text gives $1.5 billion for both projects, while its headline says $1.6 billion. Abai Aqparat attaches $1.5 billion to the smelter-and-wind-farm agreement and lists the particleboard plant's $172 million separately. This article uses only the figures every source agrees on: about $1 billion for the smelter and $172 million for the particleboard plant. The overall total should be checked against later official disclosures from the regional administration or the investors.
What it means for business
For companies in aluminium processing, electrolysis and electrical equipment, wind power construction and building-materials trade, these projects now have concrete capacities and timelines and are worth tracking. Still, feasibility studies, approvals and financing sit between an agreement and groundbreaking, so the schedule may shift. The next things to watch are whether the regional administration and the consortium name a project company, a site and the wind farm's specifications.
Sources:
Kursiv, https://kz.kursiv.media/2026-09-25/svan-dva-krupnyh-zavoda-za-15-mlrd-postroyat-kitajskie-investory-v-oblasti-abaj/
Abai Aqparat (018.kz), https://018.kz/ru/11049-v-oblasti-abaj-realizujut-dva-krupnyh-investicionnyh-proekta.html
Shanghai Metals Market (SMM), https://news.metal.com/newscontent/104134985-inner-mongolia-and-xinjiang-firms-to-invest-1b-in-kazakhstans-green-aluminum-smelter-project
Invest in Almaty, https://almaty.invest.gov.kz/media-center/press-releases/v-almaty-s-uchastiem-glavy-gosudarstva-prokhodit-investitsionnyy-forum-kazakhstan-kitay/
infohub.kz, https://infohub.kz/ru/article/kitaiskie-investory-postroiat-zavody-v-oblasti-abai
Key facts
- The government of Abai Region, Kazakhstan, signed a project agreement with a Chinese corporate consortium.
- The electrolytic aluminum plant in Abai Region is planned to have an annual capacity of 300,000 tonnes and involve investment of about USD 1 billion.
- The supporting wind power station is planned to supply clean electricity throughout the aluminum plant's entire process.
- The Abai Region aluminum plant is planned to start construction in March 2027 and be completed in December 2028.
- The Semey particleboard plant is planned to have an annual capacity of 2 million sheets and involve investment of USD 172 million.
- The Abai Region aluminum and wind power project and the Semey particleboard plant have not yet started construction.
FAQ
How large is the aluminum project in Abai Region planned to be, and what power source will support it?
The project plans to build an electrolytic aluminum plant with an annual capacity of 300,000 tonnes, paired with a 1 GW wind power station to supply clean electricity throughout the aluminum plant's entire process.
How are the investment and schedule for the aluminum plant arranged?
The aluminum plant involves investment of about USD 1 billion, with construction planned to start in March 2027 and completion in December 2028. The project is still at the agreement stage.
What other building materials project does the same consortium have?
The consortium also plans to build a particleboard plant in Semey with an annual capacity of 2 million sheets, involving investment of USD 172 million, planned for implementation from 2027 to 2028.
Have the two projects already started construction?
Construction has not yet started. Between the agreement and the start of construction, there are still steps such as feasibility studies, approvals, and financing, so the timetable may be adjusted.
What is the total investment of the two projects?
Relevant reports use inconsistent statistical bases for the combined amount of the projects. The itemized amounts are about USD 1 billion for the aluminum plant and USD 172 million for the particleboard plant; the total amount is subject to subsequent official disclosure by the Abai Region government or the investor.