China's Xinjiang Lihua to increase investments in cotton cluster in southern Kazakhstan to $600 mln

ASTANA. Jan 12 (Interfax) - China's Xinjiang Lihua (Group) Co., Ltd has decided to increase investments in the creation of a cotton and textile cluster in the Turkestan region in southern Kazakhstan from $450 million to $600 million, the Kazakh Invest national company's press service said.

The project expansion was discussed at a working meeting of Kazakh Deputy Foreign Minister Alibek Kuantyrov, Kazakh Invest Board Deputy Chairman Madiyar Sultanbek and Xinjiang Lihua General Director Xu Jie on December 31, 2025.

"Project investments were initially estimated at $450 million, yet the intention to increase the overall investment to $600 million was confirmed at the meeting due to the growing production program and the scaled-up facilities," the press service said.

Larger investments reflect long-term plans of the investor in Kazakhstan, Xu said at the meeting. The company has decided to expand the project and to increase the overall investment to $600 million, it views Kazakhstan as "a key platform for developing production with an export potential."

The project envisages a full production cycle with up to ten facilities, from growing and initial processing of cotton to production of yarn, textile products, drip irrigation systems and related materials.

According to Kazakh Invest, a PVC pipe manufacturing plant has been commissioned in the Turan special economic zone, two cotton gins are operational, installation of equipment at a spinning mill is nearing completion, and drip tape production equipment is being installed as part of the project. All facilities will be fully commissioned in the first quarter of 2026.

The project is expected to create over 4,000 jobs and to lay a stable industrial base with a high share of localization in the Turkestan region.

According to the Kazakh Agriculture Ministry, cotton accounts for 15.9% of the cultivated area in the Turkestan region, the center of domestic cotton production. In 2025, 144,500 hectares were sown with this crop, 50,000 hectares of which with drip irrigation.

Some 428,000 tonnes of raw cotton were harvested in 2025, with an average yield of 29.6 centners per hectare, which was the highest amount in 18 years. That was achieved through the active implementation of water-saving technologies that ensure water conservation and increase yields.