China to Construct Wheat Processing Plant in Kazakhstan

China’s Dalian Hesheng Holdings Group plans to establish a vertically integrated industrial plant for the deep processing of wheat in Kazakhstan’s Akmola region.

The project was discussed at a meeting between Kazakhstan’s Prime Minister Olzhas Bektenov and a Chinese company delegation, The Caspian Post reports, citing the Kazakh government's website.

The initial phase of the project will involve an investment of $500-$800 million, with total investments expected to reach $2.8 billion over three phases. The plant will process 1 million tons of wheat annually in the first phase, increasing to 3 million tons in later phases. The initiative will also create around 2,000 jobs, with construction slated to begin in the second quarter of 2025.

In addition to the wheat processing plant, the project will include a coal-fired thermal power plant and a coal chemical complex capable of producing up to 400,000 tons of liquid ammonia annually.

Prime Minister Bektenov highlighted the importance of improving wheat processing and producing high-value-added products, instructing government agencies to accelerate the signing of the investment agreement with Dalian Hesheng Holdings. Kazakhstan, with its annual wheat harvest of 16-17 million tons, has significant potential in deep grain processing, including the production of bioethanol, gluten, and animal feed.