Kazakhstan's steel sector has witnessed a significant transformation with the rise of Qarmet, previously known as ArcelorMittal Temirtau. Under the leadership of General Director Vadim Basin, the company has reported an impressive 14% increase in steel production in the first nine months of 2024, amounting to 2.6 million metric tons. This upward trend marks a renewed commitment to productivity and efficiency in the steel manufacturing process, showcasing Qarmet’s potential as a key player in the industry.
In May 2024, Qarmet achieved its highest monthly production in five years, producing a remarkable 330,000 metric tons of steel. This milestone not only underscores the company’s operational capabilities but also signals a strategic shift in its production methods and resource management. The ramp-up in production aligns with Kazakhstan's ambitions to enhance its domestic steel output and compete more effectively on the global stage.
The company has also made strides in coal extraction, reporting a 2% increase that brought production to 4.7 million metric tons. This is essential as coal is a critical input for steel production, and maintaining a steady supply is vital for operational continuity. Additionally, Qarmet's concentrate production surged by 17% to a total of 2.3 million metric tons, indicating a robust response to market demands and a focus on improving production efficiency.
The transition from ArcelorMittal ownership to local control has been pivotal for Qarmet. In late 2023, the Kazakh government terminated its cooperation with the international steel giant due to a series of accidents at the metallurgical plant, which tragically resulted in employee fatalities. This decision reflects a broader commitment to ensuring safety and accountability in the workplace, aiming to prevent further incidents and enhance operational standards.
The new owner, Andrei Lavrentiev, who is also a co-owner of the Kazakh automaker Allur, acquired Qarmet and other former ArcelorMittal assets for $286 million. His acquisition is seen as a strategic move to revitalize the steel production landscape in Kazakhstan. Lavrentiev has pledged to invest over $3 billion into the plant, signifying a long-term commitment to enhancing its operational capacity and technological advancements.
This substantial investment is expected to not only bolster production capabilities but also create numerous jobs and stimulate economic growth in the region. Lavrentiev’s plans likely include modernizing equipment, upgrading safety protocols, and expanding product lines to meet both local and international demands. The focus on sustainability and innovation will be crucial as the steel industry faces increasing pressure to reduce its environmental footprint.
As Qarmet navigates this new chapter, it stands poised to become a cornerstone of Kazakhstan’s industrial landscape. The company’s achievements in production and commitment to investment signal a promising future, highlighting the potential for local enterprises to thrive in a competitive market. This resurgence marks a significant shift towards greater autonomy and self-sufficiency in Kazakhstan’s steel industry, with Qarmet leading the way.
