China's Shougang launches new EAF & DRI projects in Kazakhstan

In September 2024, its subsidiary Beijing Shougang International Engineering Technology Co. (BSIET) signed an engineering design contract for the first phase of the project (1 million t/y) with South China's Fujian Hengwang Investment Co. (Fujian Hengwang), and they partnered with Tangshan Cishi Metallurgy Technology-trade Co. to jointly build a 960,000 t/y hydrogen-based shaft furnace DRI plant, according to the release.

Both projects are located in South Kazakstan's Zhambyl region, Mysteel Global has learned. "They are expected to create over 1,000 jobs and generate steady tax revenue, providing a new boost to the country's economic growth," Shougang said.

As part of the preparatory work, BSIET and Fujiang Hengwang already conducted an on-site inspection in Zhambyl region last October and held in-depth discussions with local design institutes and environmental assessment firms.

The launch of these projects not only marks another significant step forward for China's steel industry in the international market but also contributes to the global transformation of the steel sector, Shougang highlighted. Therefore, once completed, the projects will enhance Kazakhstan's competitiveness in the global steel industry, it believed.

As a core technology member of Shougang Group, BSIET has been driving technological innovation in recent years, successfully undertaking and completing hundreds of overseas projects in regions such as South Asia, Southeast Asia, Africa, and South America, according to the latest release.

These projects will also serve as a model for international cooperation under China's Belt and Road Initiative – a global development strategy aimed at promoting infrastructure construction, trade, and cultural exchange between countries in Asia, Europe and Africa, Shougang maintained.

Written by Anthea Shi, shihui@mysteel.com

Edited by Alyssa Ren, rentingting@mysteel.com