Kazakhstan’s Qarmet, formerly known as ArcelorMittal Temirtau, has signed a series of agreements with Chinese companies to drive industrial growth in the country. The deals, announced during a Kazakh-Chinese investment roundtable in Shanghai, are collectively valued at $2.5bn, with $1.9bn earmarked for Qarmet’s projects.
A key part of these agreements is a partnership with China’s Xinxing Ductile Iron Pipes Co. to construct a plant in Kazakhstan for producing high-strength spheroidal graphite cast iron pipes. The plant, with an annual capacity of 200,000 tons, will support housing and infrastructure projects across Kazakhstan. This $161mn project aims to boost local production capabilities and reduce dependence on imports.
Additionally, Qarmet has entered a long-term cooperation agreement worth $1bn with China Metallurgical Group Corporation, targeting the mining and metallurgical sectors. This collaboration includes initiatives to modernize Kazakhstan’s mining operations and enhance local production.
In another significant agreement, Qarmet partnered with China’s ACRE Coking & Refractory Engineering Consulting Corporation on a $649mn project to modernize coke production and advance coal chemistry in the country. This initiative aims to increase efficiency and expand Qarmet’s production capacities.
Furthermore, Qarmet will team up with Nanjing Fiberglass Research & Design to establish a $30mn plant for producing mineral insulation from blast furnace slag in Temirtau. The facility is expected to yield 100,000 tons of mineral insulation annually, contributing to Kazakhstan’s sustainability goals by utilizing industrial byproducts.
These agreements align with Qarmet’s broader strategic plans to ramp up steel production. The company expects to increase steel output to 3.5mn tons by 2024, following a projected 3.2mn tons this year. In line with this growth, Qarmet aims for a 13% rise in steel production and a 10% increase in iron ore concentrate output, reaching 10mn tons. However, coal production is expected to decrease by 2%.
Trade between Kazakhstan and China reached $33bn in the first nine months of this year. Kazakhstan is working to expand trade in 180 product categories, aiming to add an estimated $1.6bn in value. Key areas for growth include metallurgy, petrochemicals, food, machinery, and construction. The agricultural sector has also flourished in 2024, with trade rising by 5.8% as Chinese consumers show increasing demand for Kazakhstan’s organic and eco-friendly agricultural products.
