Chinese Companies Increase Investment in Kazakhstan's Cotton Industry to $6 Billion
2026-02-09 10:22
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Wedoany.com Report on Feb 9th, Against the backdrop of advancing agricultural modernization and industrialization in Central Asia, Chinese enterprises are participating in regional industrial development through capital investment. Xinjiang Lihua (Group) Co., Ltd. recently decided to increase its total investment in the cotton textile cluster project in the Turkistan region of Kazakhstan to $6 billion, marking the project as a key initiative for the integrated development of local agriculture and light industry.

News released by Kazakhstan's national investment company shows that Xinjiang Lihua has raised its investment from the originally planned $4.5 billion to $6 billion. This decision was confirmed during a working meeting on December 31, 2025, between representatives of relevant Kazakh government departments and Xinjiang Lihua. Officials stated that the increase in investment mainly stems from the further expansion of production facilities and project scale.

The Turkistan region is a major cotton-producing area in Kazakhstan, and local cotton cultivation has maintained a stable scale in recent years. This industrial cluster project is planned to cover the entire industrial chain from cotton cultivation, primary processing to spinning, textiles, and drip irrigation system production, with plans to build approximately 10 production facilities. Currently, the PVC pipe manufacturing plant located in the Turan Special Economic Zone has commenced operations, and all facilities are expected to be completed and operational in the first quarter of 2026.

The project is expected to create over 4,000 local jobs and, through a high proportion of localized production, help solidify the regional industrial base. The Kazakh side stated that the promotion of modern agricultural technologies such as water-saving irrigation provides stable and scaled raw material support for downstream processing industries, promoting industrial upgrading in major cotton-producing regions.

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