Qarmet, Kazakhstan's largest steel producer, plans to begin producing automotive-grade sheet steel in 2028 and manufacturing mass-produced automotive body panels in 2029.
Speaking at a government meeting, Allur Group Chairman Andrey Lavrentyev said the company is working on a cross-industry project involving Qarmet, Allur, Kia Qazaqstan and other manufacturers. Lavrentyev stated that the project aims to integrate the metallurgical and automotive industries into a single production chain, adding that the priority is to establish a fully integrated stamping process for passenger vehicles using Kazakhstan-produced steel.
Under the plan, Qarmet will begin producing automotive-grade sheet steel in 2028 that meets the quality and technical requirements of automakers. One year later, the company will manufacture mass-produced automotive body panels using this steel. The project aims to establish an annual production capacity of at least 100,000 vehicle bodies and increase the share of domestically produced steel used in vehicles to at least 75%.
Lavrentyev said the investment would create long-term demand for high value-added products in the metallurgical sector, while significantly increasing domestic value added for automakers by reducing dependence on imported body panels.
Kazakh Prime Minister Olzhas Bektenov also expressed support for the project, stating that it is noteworthy that the country has not yet established automotive steel production despite its long-standing potential. Bektenov said the initiative, together with Qarmet's modernization program, would create strong synergies between the steel and automotive industries.
Qarmet, which operates the Karaganda Metallurgical Complex in Temirtau, is Kazakhstan's largest integrated steel and mining company. The company has operated under the Qarmet name since ArcelorMittal Temirtau was acquired by Allur co-owner Andrey Lavrentyev for $286 million in 2023.
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