Forging Alliances: Shandong Aipurui’s Industrial Venture in Uzbekistan
In a significant cross-border industrial collaboration, China’s Shandong Aipurui Steel Plate Co. Ltd has unveiled its plans to establish a $120 million steel processing plant in Uzbekistan’s Ferghana region. The project, announced by regional authorities, marks a deepening of Sino-Uzbek economic ties and underscores Uzbekistan’s growing appeal as a regional manufacturing hub.
The facility will be constructed in the Tarakkiyot industrial zone, located within the Toshlok district. Designed to be rolled out in three phases, the plant will focus on producing high-quality processed steel products, catering to both domestic consumption and export demands.
Three-Stage Blueprint for Economic Growth
The initiative is expected to create 500 new jobs, signaling a boost to local employment and skills development. The first operational phase of the steel plant is slated to begin as early as October this year, showcasing the project's rapid implementation timeline.
According to Ferghana Governor Khairullo Bozorov, the venture is “progressing swiftly,” with construction activities actively underway. He emphasized that infrastructure enhancement surrounding the plant is also being prioritized, ensuring long-term sustainability of the zone.
Regional Cooperation in Metallurgy: A Growing Trend
This announcement follows a series of China-Central Asia metallurgical partnerships. Notably, in Kazakhstan, a $161 million joint venture between Qarmet (formerly ArcelorMittal Temirtau) and China’s Xinxing Ductile Iron Pipes Co. is underway to manufacture 200,000 metric tons of high-strength nodular cast iron pipes per year.
Furthermore, Qarmet recently signed a $1 billion strategic cooperation agreement with the China Metallurgical Group Corporation, targeting long-term collaboration in mining and metallurgical industries, a strong indication of China’s growing industrial footprint in Central Asia.
Metal Products & Export Vision
Shandong Aipurui’s Ferghana plant is expected to diversify Uzbekistan’s industrial base, strengthen its manufacturing capabilities, and reduce import reliance. The facility will produce advanced steel plates and metal products, optimized for sectors such as construction, infrastructure, and machinery.
Exporting to neighboring countries and global markets will also be a key focus, leveraging Uzbekistan’s strategic location as a gateway between East Asia, Russia, and Europe.
Industrial Infrastructure & Bilateral Diplomacy
The project is not just an economic undertaking, it also represents a diplomatic and infrastructural alliance. Uzbek and Chinese officials are already exploring joint infrastructure development near the plant site, aiming to establish a fully integrated production ecosystem.
This project aligns with Uzbekistan’s broader goals under President Shavkat Mirziyoyev’s agenda to industrialize rural regions, attract FDI, and modernize transport and utility networks.
Key Takeaways:
• Project: $120 million steel plant by Shandong Aipurui in Ferghana, Uzbekistan
• Location: Tarakkiyot industrial zone, Toshlok district
• Stages: Project will be executed in 3 phases
• Jobs Created: 500
• Launch Timeline: First stage to be operational by October this year
• Product Focus: High-quality processed metal products for domestic & export markets
• Governor Bozorov’s Remarks: Project moving swiftly, infrastructure work underway
• Regional Metallurgical Expansion:
o Kazakhstan’s Qarmet & China’s Xinxing – $161 million ductile iron pipe plant
o Qarmet & China Metallurgical Group – $1 billion long-term cooperation in mining & steel
• Annual Output of Kazakhstan Plant: 200,000 metric tons
• Strategic Importance: Enhances local industry, reduces imports, supports infrastructure
• Diplomatic Implication: Strengthens Sino-Uzbek ties & aligns with Central Asia’s industrial goals
