ASTANA, Kazakhstan, May 5. Kazakh President Kassym-Jomart Tokayev and Chairman of the Board of Xinjiang Lihua Zhang Qihai discussed the implementation of a vertically integrated cotton-textile cluster with a full production cycle, Trend reports via the press service of the Kazakh president.
During the meeting, Tokayev was informed that the project would significantly reduce Kazakhstan’s dependence on imports and supply the domestic market with competitive locally produced goods.
Zhang Qihai noted that several facilities have already been commissioned, including two cotton processing plants. In the coming years, the company plans to launch facilities for the production of nonwoven materials, home textiles, and clothing.
The project is expected to expand cotton cultivation areas to 52,000 hectares through the use of innovative digital technologies and drip irrigation systems. At the first stage, direct foreign investment in the cotton cluster is estimated at around $360 million, while more than 4,000 jobs are expected to be created.
Tokayev emphasized the importance of the cluster for the development of the agro-industrial and light industry sectors in southern Kazakhstan.
The president also highlighted the need for broad application of water-saving technologies and supported the introduction of smart digital solutions and artificial intelligence, given the high resource intensity of cotton farming.
The cluster project is being implemented in Kazakhstan’s Turkestan region and includes establishment of up to 10 production facilities covering cotton cultivation and primary processing, yarn and textile manufacturing, as well as the production of drip irrigation systems and related materials.
The project’s initial investment volume was estimated at $450 million, but in December 2025 Kazakhstan and Xinjiang Lihua confirmed plans to increase total investment to $600 million due to the expansion of the production program and scaling up of capacities.
