Kazakhstan's Qarmet plans to launch automotive steel production by 2028

ASTANA. July 21 (Interfax) - Kazakhstan plans to launch production of automotive-grade steel at the Qarmet steel works in 2028, followed by series production of body panels in 2029, Allur Group chairman Andrey Lavrentyev said.

Lavrentyev said a priority for the auto industry was to develop a full-cycle stamping operation for passenger cars using Kazakh steel.

"We are working on a cross-industry project involving Qarmet, Allur, Kia Qazaqstan and other manufacturers to link metallurgy and automotive production into a single chain, similar to bus production in Saran, which already uses Qarmet steel," Lavrentyev told a government meeting on Tuesday.

In 2028, Qarmet plans to start producing automotive sheet steel that meets carmaker requirements, with series production of body panels to follow in 2029, he said. The planned capacity is at least 100,000 bodies per year, with Kazakh steel content of at least 75%.

"For the metallurgy sector, the project will create long-term industrial demand for high-value processed products, including from abroad. For automakers, it will reduce dependence on imported body panels and significantly increase domestic value added," Lavrentyev said.

Kazakh Prime Minister Olzhas Bektenov said this project was of strategic importance for the industry.

"Honestly, it's surprising that over the decades, and given our opportunities, we have not established automotive steel production in the country. So we support this project as a whole, as well as the major Qarmet modernization program. This has created a major synergy between steel companies and the automotive industry," he said.

Qarmet, formerly ArcelorMittal Temirtau, is an integrated steel and mining company owning Kazakhstan's largest steel plant - the Karaganda Metallurgical Plant in Temirtau. In 2023, ArcelorMittal Temirtau was acquired by Allur co-owner Andrey Lavrentyev for $286 million and renamed Qarmet.