Prime Minister of Kazakhstan Olzhas Bektenov met with Zhang Qihai, Chairman of the Board of Directors of Xinjiang Lihua (Group) to discuss progress on a major investment project—the creation of a cotton-textile cluster in the Turkestan region. The project, worth over KZT 200bn ($397mn), is being implemented within the special economic zone (SEZ) TURAN.
The initiative aims to establish a full-cycle cotton agro-industrial complex, spanning cotton cultivation to textile production, including yarn, fabric, and clothing. More than 50,000 hectares have been allocated for cotton farming, with plans to construct ten factories: four for cotton processing, two for drip irrigation systems using modern water-saving technologies, and four textile factories, including sewing and dyeing facilities. The project is expected to create over 4,000 jobs, including 3,000 permanent positions.
Currently, a PVC pipe manufacturing plant has been launched to support the cluster’s irrigation needs, while construction of textile factories and irrigation infrastructure, including a canal network and pumping stations, is underway.
Zhang Qihai highlighted Kazakhstan’s favorable investment climate and the region’s suitability for cotton production. He noted that the first finished textile products are expected to be produced by October this year.
Prime Minister Bektenov stressed the strategic importance of the project in advancing Kazakhstan’s economic diversification and industrialization goals. Turkestan Region remains the country’s sole cotton-producing area, making it a key hub for textile industry development.
"The head of state has set the task of diversifying the economy and attracting investment into the real sector. The creation of this cotton-textile cluster will enhance value-added production, strengthen agricultural processing, and boost Kazakhstan’s export potential. The government will provide the necessary support to ensure its success," Bektenov stated.
Xinjiang Lihua is one of China’s largest cotton industry players, ranking 55th among the country’s 500 largest agricultural enterprises. The company specializes in comprehensive cotton processing, overseeing the full production cycle from seed selection to textile manufacturing.
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