China is set to expand its industrial footprint in Kazakhstan with the construction of a major steel plant worth $1.2 billion, designed to produce up to 3 million tons of steel annually.

The project will be implemented in partnership with Fujian Hengwang Investment and is expected to create around 2,500 jobs, The Caspian Post reports via Kazakh media.

The facility will supply both domestic demand and export markets, strengthening Kazakhstan’s industrial base.

Kazakh Minister of Trade and Integration Arman Shakkaliyev highlighted the strategic importance of cooperation with China’s Fujian province, a key industrial hub. He noted that Kazakh exports could gain better access to southern China and ASEAN markets through the region’s ports.

Trade turnover between Kazakhstan and Fujian reached approximately $522 million in 2025, reflecting growing economic ties. At the same time, discussions are underway to localize additional production projects, including textile manufacturing with Jinyuan, lifting equipment with Weihua Heavy Machinery, transformers with Shenda Electric, and synthetic fibers with Jinlun Hi-tech Fiber.

China already ranks among the top five largest investors in Kazakhstan, with total investments reaching $26 billion. Major financial institutions such as Industrial and Commercial Bank of China are also exploring new financing opportunities exceeding 1 billion yuan for industrial and agricultural projects.

Meanwhile, China remains the leading source of foreign labor in Kazakhstan, with over 5,400 Chinese citizens currently working in sectors such as construction and agriculture, according to official data.