BAKU, Azerbaijan, January 23. The global industry is undergoing a profound structural transformation, driven by the forces of digitalization, sustainability, and shifting geopolitical dynamics. Industrial firms are swiftly integrating technologies such as artificial intelligence, the industrial Internet of Things, robotics, and big data analytics to enhance productivity, lower costs, and mitigate the challenges posed by a shortage of skilled labor. Simultaneously, the sector grapples with environmental concerns, fragmented global supply chains, and increasing geopolitical risks.
In recent years, Turkmenistan's industrial sector has demonstrated consistent growth, a trend attributed to both government initiatives aimed at developing processing industries and the strong performance of key specialized enterprises. From January to November 2025, the sector surpassed its planned targets by 5.2%. Notably, the Ministry of Industry and Construction achieved 109.2% of its projected output, while the Ministry of Energy exceeded expectations with 110.7%. Leveraging its abundant energy and raw material resources, Turkmenistan continues to build upon these assets to expand its processing sector.
A particularly significant development within the country's industrial landscape is the notable increase in the production of construction materials and textiles. Between January and June 2025, cement production saw a nearly 50% rise, while the output of rebar and other metal structures surged by more than 58% compared to the same period in 2024. Furthermore, cotton yarn production grew by 22.6%, and the output of cotton fabrics increased by 27.3% year-on-year.
At the same time, the chemical industry remains a key component of the country’s industrial complex. The largest enterprises under the state conglomerate Turkmenhimiya exceeded their planned targets for the period from January through November 2025 by 5%. Japanese companies play an active role in the development of Turkmenistan’s chemical sector. For example, the construction of a new urea and ammonia production complex in the Kiyanly area, valued at more than $1.3 billion, is being implemented under an agreement between Turkmenhimiya and the Japanese companies Mitsubishi Heavy Industries, Ltd., and Mitsubishi Corporation. Another major Japanese industrial company, Kawasaki Heavy Industries, recently told Trend about its active presence in Turkmenistan. A company representative noted that “We are primarily focused on modernizing industry, but we aim to use our solutions to expand activities into other sectors as well.”
In the context of transitioning to zero-waste production, the country has highlighted an initiative by President Serdar Berdimuhamedov at the 2024 BRICS summit, where he supported the concept of a circular economy, aiming to keep materials and products in the production cycle for as long as possible while minimizing waste and pollution. The importance of this initiative was also noted by Hiroyuki Tsubaya, Chairman of the Japan-Turkmenistan Committee on Economic Cooperation, during his meeting with Turkmenistan’s Ambassador to Japan, Atadurdy Bayramov, on January 21, 2026, in Tokyo.
In recent years, Turkmenistan has established a comprehensive legislative framework to regulate its industrial sector. The Law on State Support for Small and Medium Enterprises, enacted in 2009, introduced incentives to foster the growth of small and medium-sized industrial enterprises. In 2010, the Law on the Union of Industrialists and Entrepreneurs of Turkmenistan was adopted, while the 2014 Law on Foreign Economic Activity paved the way for enterprises to access international markets. Looking ahead to 2026, key priorities include implementing quality control measures in construction, advancing building materials and textile production, expanding the private sector, and boosting export deliveries.
Today, Turkmenistan’s industrial sector is characterized by a mix of operational production capacities, modernized enterprises, and new projects aimed at increasing output and enhancing product quality. Moving forward, the sector's success will hinge on the ability of enterprises to adapt to evolving global trends, integrate advanced technologies, improve energy efficiency, and diversify their product offerings. This will, in turn, strengthen Turkmenistan's competitiveness in both domestic and international markets, ensuring the sustainable long-term growth of the industrial sector.