Kazakhstan and China to build steel pipe plant in Almaty

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ALMATY (TCA) — A plant for the production of large-diameter welded steel pipes will be constructed in Almaty by the end of this year. The relevant investment contract was signed with the support of Kazakh Invest National Company for Investment Support and Promotion, within the framework of which the Chinese investor (a subsidiary of CNPC) jointly with Kazakhstan partners will invest USD 50 million in the project and will create more than 300 permanent jobs in the region. The total cost of the project is USD 100 million, Kazakh Invest said on April 12.

This plant will be located on an area of 18.3 hectares in Industrial zone of Alatau district of Almaty. Construction of the high-technology plant will allow to ensure 70% import substitution of pipe products imported to Kazakhstan.

The investor notes that up to 1000 temporary jobs will be created in the region during the construction period and more than 300 permanent jobs will be created after the launch of the plant.

It is planned that the plant will supply up to 100 thousand tons of high quality pipe products per year. These welded pipes are designed for the transportation of oil, gas, water and petroleum products, and will be used in mining, chemical industry and in energy field. It is also planned to produce anti-corrosion coatings.

“We plan to launch the plant in December 2018. Currently, an active construction phase is being implemented. In the future, it is planned to expand production up to 150 thousand tons per year,” Radzhan Nurmukhambetov, Communications Adviser of Asia Steel Pipe Corporation LLP, said.

The diameter of steel pipes will be from 355 to 1420 mm.

This project was included in the National Industrialization Map of Kazakhstan and in China’s Belt and Road Initiative.

Implementation of the project for the production of welded steel pipes was made possible following the meeting of Kazakhstan President Nursultan Nazarbayev and the Chairman of the People’s Republic of China Xi Jinping in 2014, within the framework of which the Program of Complex Strategic Cooperation in oil and gas industry was signed between Kazakhstan’s national oil and gas company KazMunaiGas and China’s CNPC.

Sergey Kwan

TCA