Kazakhstan and China to build textile cluster in Turkestan region

Prime Minister of Kazakhstan Olzhas Bektenov and Zhang Qihai, CEO of the Chinese company Xinjiang Lihua – one of China’s top 55 agricultural companies, specializing in the full cycle of cotton processing – discussed the creation of a large cotton and textile complex in the Turan Special Economic Zone in the Turkestan region. The full-cycle project, valued at more than $396 million, is expected to be a key driver of economic growth in the region.

The project involves the launch of an agro-industrial hub with a closed production cycle—ranging from growing cotton on 50,000 hectares to manufacturing finished products such as yarn, fabrics and clothing. The investor plans to construct ten enterprises, including four raw material processing plants near the fields, two advanced facilities for producing drip irrigation systems and four textile factories, including sewing and finishing plants. The project is expected to create more than 3,000 permanent and 1,000 temporary jobs.

Project implementation has already begun, with the Chinese investor launching a PVC pipe manufacturing plant for the cluster’s needs, along with the construction of textile facilities and an irrigation network, including canals and a pumping station. Zhang Qihai praised Kazakhstan’s investment climate and the region’s favorable conditions, stating that the first batches of products are expected to be released in October 2025.

According to Bektenov, the project holds strategic importance due to its role in diversifying the economy and boosting exports.

«The creation of a cotton-textile cluster will help increase the added value of products, develop agricultural production with an emphasis on processing and expand the country’s export potential. The government is ready to provide all necessary support for the project,» he stated.

Meanwhile, the gap between Kazakhstan’s customs statistics (imports from China) and China’s data (exports to Kazakhstan) reached a record high at the end of 2024. For instance, in 2024, China reported exporting $28.1 billion worth of goods to Kazakhstan, while Kazakhstan’s official data recorded only $15.2 billion in imports from China.