Kazakhstan, Chinese firm plan $360 mn integrated cotton-textile hub

06 May '26
2 min read
Xinjiang Lihua's chairman Zhang Qihai with Kazakhstan's President Kassym-Jomart Tokayev
Pic: President of the Republic of Kazakhstan

Insights

  • Kazakhstan plans a $360 million cotton-textile cluster with China's Xinjiang Lihua to build a full-cycle production ecosystem and reduce import dependence.
  • The project will expand cotton farming to 52,000 hectares using digital and water-saving technologies, create over 4,000 jobs and support growth in textiles, garments and nonwoven production.
Kazakhstan is advancing plans to build a vertically integrated cotton-textile cluster with China’s Xinjiang Lihua, with an initial investment of $360 million aimed at boosting domestic production and reducing import dependence.

Kazakhstan's President Kassym-Jomart Tokayev met Zhang Qihai, chairman of Xinjiang Lihua, to discuss the project, which will establish a full-cycle production ecosystem spanning cotton cultivation to finished textile and apparel output.

According to project details shared during the meeting, several facilities, including two cotton-processing plants, have already been commissioned. The company plans to expand operations in the coming years by launching production of nonwoven fabrics, home textiles and garments.

The initiative will also support expansion of cotton cultivation to 52,000 hectares, using digital technologies and drip irrigation to improve efficiency and sustainability.

The first phase of the project is expected to generate more than 4,000 jobs, contributing to industrial growth and employment in southern Kazakhstan.

Tokayev emphasised the strategic importance of the cluster for both agriculture and manufacturing, calling for a strong focus on training local workforce. He also highlighted the need for water-saving technologies and backed the use of smart digital solutions and artificial intelligence, given the high resource intensity of cotton farming.

The project is expected to strengthen Kazakhstan’s textile value chain, enhance competitiveness of domestic products and reduce reliance on imports by building an integrated, technology-driven production base.

Fibre2Fashion News Desk (CG)

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