The government of Kazakhstan has approved the conclusion of an investment agreement between the Ministry of Agriculture and the Turkestan Cotton Agro-Industrial Complex LLP for the cultivation and processing of cotton in the southern Turkestan region.
The project will establish a full production cycle—from growing cotton to producing yarn, fabric, and finished garments.
The project’s investor is Xinjiang Lihua (Group) Co., Ltd., one of China’s largest companies specializing in the cultivation and deep processing of cotton. The total investment is expected to exceed 200 billion tenge (close to $400 million).
The project will build Central Asia’s largest cotton growing and processing complex on 60,000 hectares of irrigated land in the Otyrar district and the town of Arys, with more than 1,400 permanent jobs.
The project includes the construction of 196 pumping stations with drip irrigation systems, three transformer substations, an integrated fertilizer supply system, and the acquisition of modern agricultural machinery from leading global manufacturers.
The project will also build a polyethylene processing line for the production of drip tape and flexible pipes, which will reduce dependence on imported drip irrigation systems.
Kazakhstan annually produces 70,000-75,000 tons of cotton fiber and exports approximately 85% of the total volume. The new facility will increase the share of deep cotton processing inside the country and expand the production of finished textile products with high added value, thereby increasing export potential.
