RWS KZ Expands Industrial Capacity and Develops Kazakhstan’s Largest Manufacturing Cluster

RWS KZ (Railways Systems KZ), one of Kazakhstan's largest railway engineering holdings, is implementing a range of promising investment projects aimed at developing the domestic metallurgical industry, railway engineering and the production of high-tech products for the energy sector. Sergey Pavlinger, CEO of RWS KZ Holding, presented the projects during the official visit of Nurlibek Mashbekovich Nalibayev, First Deputy Prime Minister of the Republic of Kazakhstan. The new projects will mark the next stage in the development of the RWS KZ industrial ecosystem and will enable the holding company to consistently expand its production chain – from metallurgical raw materials and steel to finished products for railway infrastructure, transport engineering and thermal power generation.

One of the holding company's largest projects will be the construction of an electrometallurgical plant. Investment in the project will amount to approximately KZT 950 billion. The plant will have a production capacity of 1 million tonnes of liquid steel per year. The new facility is expected to create around 1,650 jobs. The plant will manufacture a wide range of metallurgical products, including blooms, billets, rounds, channels and beams.

“The implementation of this project will not only expand our production capacity but will also lay the foundation for Kazakhstan's sovereign industrial ecosystem. We are completing the production chain from raw materials to finished wheels and railcars, which will enable us to increase the output of high-value-added products and significantly reduce dependence on imports in key segments of metallurgy and mechanical engineering,” said Sergey Pavlinger, CEO of RWS KZ Holding.

Another strategic area of RWS KZ Holding's development will be the construction of a direct reduced iron complex with an annual production capacity of 1.5 million tonnes. Investment in the project is estimated at KZT 750 billion. The facility is expected to create around 1,000 jobs. The production complex will specialize in direct reduced iron in the form of metallized pellets (DRI) and hot briquetted iron (HBI).

According to Sergey Pavlinger: “Direct iron reduction technology involves producing metallurgical raw materials from iron ore pellets using natural gas and can reduce carbon dioxide emissions by up to 60% compared with conventional technologies. Establishing our own metallurgical production will be the final stage in creating a sovereign full-cycle ecosystem. This step will ensure Kazakhstan's technological independence and provide a powerful impetus for the development of domestic metallurgy, industry and energy.”

Hot briquetted iron is a highly demanded product on the international metallurgical market and is used as a high-quality raw material for steel production. The implementation of the project will create additional opportunities to develop Kazakhstan's export potential and establish a modern metallurgical production chain within the country.

A separate area of the RWS KZ investment program will be the establishment of production of pipeline assemblies for thermal and nuclear power plant systems. The facility will have an annual production capacity of 3,000 tonnes. Around 340 jobs are expected to be created at the new facility. Investment will amount to KZT 30 billion. Sergey Pavlinger noted: “Products for the nuclear industry and thermal power sector will be manufactured in Kazakhstan. We will be able to produce specialized assemblies and steel structures. We already have agreements to manufacture components for nuclear power plants in India and Egypt. The engineering documentation is currently being developed.”

The implementation of the project will enable Kazakhstan to develop expertise in manufacturing high-tech components for the energy sector and expand the range of domestically manufactured industrial products.

RWS KZ places particular emphasis on the development of human capital and social infrastructure. A total of 3,000 new jobs will be created at the new enterprises. More than 100 professions are currently represented across the company's enterprises, while approximately half of the holding company's employees are specialists under the age of 35.

A report presented to Nurlibek Mashbekovich Nalibayev, First Deputy Prime Minister of the Republic of Kazakhstan, noted that RWS KZ implements housing programs for employees, supports labor dynasties and employees' families, and develops a system for training engineering and technical specialists. The holding company's future projects include the construction of a corporate technical college offering education in four specialties: Mechanical Engineering, Automated Production Management Systems, Metallurgy, and Construction of Buildings and Structures. The company also plans to establish a corporate class for school students with advanced study of specialized subjects.

The holding company is also implementing projects to construct a corporate kindergarten, residential buildings and a hotel and restaurant complex. The implementation of the RWS KZ investment program will contribute to the further industrialization of Kazakhstan, the development of domestic mechanical engineering and metallurgy, the creation of new production facilities and jobs, and the development of modern social infrastructure in the regions where the holding company operates.