China to Construct Wheat Processing Plant in Kazakhstan's Akmola Region

China’s Dalian Hesheng Holdings Group Co., Ltd. plans to build a vertically integrated industrial park for the deep processing of wheat in Kazakhstan’s Akmola region. The project was discussed on December 18 during a meeting between Kazakhstan’s Prime Minister Olzhas Bektenov and a delegation from the Chinese company, The Caspian Post reports citing foreign media.

Investments in the project will total $500-$800 million for the initial phase, with an additional $1 billion planned for the second and third phases. The plant will process 1 million tons of wheat annually during the first phase, with capacity increasing to 3 million tons per year in subsequent phases. The initiative is expected to create approximately 2,000 jobs. Construction is set to begin in the second quarter of 2025.

The project will also include the construction of a coal-fired thermal power plant and a coal chemical complex capable of producing 150,000-400,000 tons of liquid ammonia annually.

Prime Minister Olzhas Bektenov underscored the importance of enhancing wheat processing and expanding the production of high-value-added products. He directed government agencies to expedite the signing of an investment agreement with Dalian Hesheng Holdings.

Kazakhstan has significant potential in deep grain processing, harvesting 16-17 million tons of grain annually. More than 260 different high-value-added products, such as bioethanol, gluten, and animal feed, can be derived from processed grain.

The Times of Central Asia previously reported that Chinese company Myande Group signed a memorandum of cooperation in July for the construction of a wheat processing plant in Kostanay. That facility will produce amino acids, bioethanol, gluten, animal feed, and wheat bran, further bolstering Kazakhstan’s grain processing sector.

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