The timetable for Fujian Hengwang Investment's steel plant in Kazakhstan's Zhambyl region is now set out in environmental impact filings: a first phase of 1 million tonnes a year is due to start in 2027, a second phase is to be completed by 2029, and total capacity will then reach up to 3 million tonnes of steel products a year. The site is in the Jibek Joly special economic zone in Shu district, and the project company is Yonggang Central Asia Iron and Steel LLP.
The details come from the environmental impact assessment scoping conclusion and impact report published this year, which the mining industry portal Qazba reviewed on 22 September. Construction is planned for 2026–2029, with operations designed to run for at least 25 years.
Who is investing
The ownership chain matches in Kazakh and Chinese documents. An outbound investment filing notice published on 11 May by the Fujian Provincial Development and Reform Commission shows Fujian Hengwang Investment, via Yonggang Iron and Steel Group registered in Astana, adding $30 million in capital to Yonggang Central Asia Iron and Steel in Zhambyl, to pay for factory buildings and steel structures. According to Qazba, the LLP's sole owner is Yonggang Iron and Steel Group Co., Ltd., registered at the Astana International Financial Centre on 25 June 2024 and owned by Fujian Hengwang.
On 27 February 2025 the prime minister's office reported a meeting between Olzhas Bektenov and Fujian Hengwang chairman Zeng Zhaoqiang about this 3 Mt plant. When the prime minister visited Zhambyl region on 17 April 2025, construction had already begun, and the project was described as funded from the investor's own resources.
Process and products
The environmental filings describe a full production chain: iron ore preparation and beneficiation, pelletising, gas-based direct reduced iron (DRI), electric arc furnace steelmaking, refining and continuous casting, then rolling. Main products are rebar, merchant bars, sections and strip, for the domestic market and for export.
Some specific figures: electric arc furnace No. 1 taps 90 tonnes per heat in a cycle of about 72 minutes, for 549,000 tonnes of liquid steel a year. Combined gas demand for both phases is about 987 million cubic metres a year, including an on-site power plant. The government's February 2025 statement said the second phase includes a 350 MW gas turbine power plant, with iron ore to come from the Karaganda, Kostanay and Ulytau regions.
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Reading the investment figures
The numbers differ between documents. Statements in February and April 2025 put total investment at about $1.2 billion: 160.2 billion tenge for phase one, a further 312.8 billion tenge for phase two, and 201.3 billion tenge for the 350 MW power plant. A statement on 16 June 2025 said an investment agreement had been signed and gave total investment as $756 million. The Chinese filing notice puts phase one at $96 million, of which $63.5 million has been filed so far.
The filed amount is the capital a Chinese company registers for outbound investment, so it is not directly comparable with the project total cited by the Kazakh side. Taken together, the figures point to phased funding; the final amount will become clearer as more information is published.
Progress and jobs
After the Zhambyl regional governor's site visit on 8 April 2026, it was reported that the rolling and casting shops were under construction and transport links were being worked on. The government's June 2025 statement mentioned 1,500 temporary workers during construction and more than 2,500 permanent staff after launch, with at least 90% of employees planned to be local.
What it means for business
For suppliers of metallurgical equipment, electric arc furnaces and DRI units, rolling mills, steel structures, construction contractors, and companies handling ore and steel logistics, the project now has a clear process route and phased schedule. Equipment installation, commissioning and the power plant still lie ahead, so the timeline may shift.
Sources:
Official website of the Prime Minister of Kazakhstan (27 February 2025), https://primeminister.kz/en/news/3-million-tonnes-of-steel-capacity-metallurgical-plant-to-be-built-in-zhambyl-region-olzhas-bektenov-discusses-project-implementation-plans-with-fujian-hengwang-investments-chinese-management-29748
Official website of the Prime Minister of Kazakhstan (17 April 2025), https://primeminister.kz/ru/news/olzhas-bektenov-oznakomilsya-s-realizatsiey-novykh-masshtabnykh-investitsionnykh-proektov-v-zhambylskoy-oblasti-na-sez-jibek-joly-29943
Official website of the Prime Minister of Kazakhstan (16 June 2025), https://primeminister.kz/ru/news/realizatsiya-investproekta-kak-stroitsya-novyy-zavod-po-proizvodstvu-stali-v-zhambylskoy-oblasti-30164
Qazba, https://qazba.kz/metallurgiya/too-yonggang-central-asia-iron-and-steel-planiruet-zapustit-v-2027-godu-pervuyu-ochered-metkombinata/
Fujian Provincial Development and Reform Commission, https://fgw.fj.gov.cn/zfxxgkzl/zfxxgkml/yzdgkdqtxx/202605/t20260512_7146931.htm
gurk.kz (Zhambyl governor's site visit), https://gurk.kz/news/v-se-z-jibek-joly-zhamby-lskoj-oblasti-realizuyutsya-klyuchevy-e-industrialny-e-proekty
Key facts
- Fujian Hengwang is building an integrated steelmaking complex in the Jibek Joly Special Economic Zone in Shu County, Jambyl Region, Kazakhstan.
- The first phase is designed to produce 1 million tonnes of steel products annually and is planned to start operations in 2027.
- The second phase is scheduled for completion by 2029, bringing total annual steel production capacity to up to 3 million tonnes.
- The project will use natural gas-based direct reduction and electric arc furnace steelmaking technologies.
- Documents from the Office of the Prime Minister of Kazakhstan disclose two figures for the project’s total investment: USD 1.2 billion and USD 756 million.
- The project plans to employ 1,500 temporary workers during construction and more than 2,500 long-term workers after operations begin.
FAQ
Where is Fujian Hengwang’s steel project located?
The project is located in the Jibek Joly Special Economic Zone in Shu County, Jambyl Region, Kazakhstan, where a fully integrated steelmaking complex is under construction.
When will the project start operations, and how many phases will it have?
The environmental impact assessment documents state that the first phase is planned to start operations in 2027, while the second phase is scheduled for completion by 2029. The construction period is from 2026 to 2029. Equipment installation, commissioning, construction of supporting power stations, and other activities may still result in adjustments to the schedule.
What technologies and products will the project use?
The project will use natural gas-based direct reduction and electric arc furnace steelmaking technologies. Its main products will include reinforcing bars, sections, special sections, and strip steel.
Why do different figures appear for the project investment?
According to reports released by the Office of the Prime Minister of Kazakhstan in February and April 2025, the project’s total investment was approximately USD 1.2 billion, while a report dated June 16 put it at USD 756 million. The amount filed with the Fujian Provincial Development and Reform Commission reflects the Chinese side’s funding commitment and is not calculated on the same basis as the total project investment announced by the Kazakh side. The final investment will depend on subsequent public disclosures.
What are the project’s employment plans?
According to a June 2025 report from the Office of the Prime Minister of Kazakhstan, the project plans to employ 1,500 temporary workers during construction. After operations begin, it is expected to provide more than 2,500 long-term jobs, with local employees accounting for at least 90%.