Kazakhstan is stepping up efforts to strengthen its domestic textile industry through a major new partnership with China, announcing plans for a $360 million vertically integrated cotton-textile cluster designed to reduce import dependence and build a full-cycle manufacturing ecosystem.
The initiative was discussed during a high-level meeting between Kassym-Jomart Tokayev and Zhang Qihai, chairman of Xinjiang Lihua. The project aims to transform Kazakhstan’s southern region into a key textile production hub by integrating cotton cultivation, processing, and finished goods manufacturing under a single industrial framework.
At the core of the plan is the development of a comprehensive value chain that spans from raw cotton farming to the production of textiles, garments, and nonwoven materials. This integrated model is expected to enhance efficiency, improve quality control and position Kazakhstan as a more competitive player in regional and global textile markets.
Initial groundwork for the project is already underway. Two cotton-processing facilities have been commissioned, marking the first phase of industrial development. In the coming years, the project will expand to include manufacturing units for home textiles, apparel and nonwoven fabrics, sectors that are experiencing rising demand across both domestic and export markets.
A significant component of the initiative involves scaling up cotton cultivation. The project plans to expand farmland to approximately 52,000 hectares, supported by modern agricultural practices.
Authorities and project partners have emphasized the use of digital technologies and water-efficient systems such as drip irrigation to address the resource-intensive nature of cotton farming while improving yields and sustainability.
President Tokayev has highlighted the strategic importance of the cluster, noting that it will play a dual role in advancing both agriculture and industrial manufacturing. He underscored the need to incorporate smart technologies, including artificial intelligence, to optimise production processes and resource management. Workforce development has also been identified as a priority, with a focus on training local talent to support the growing industry.
The economic impact of the project is expected to be substantial. The first phase alone is projected to create more than 4,000 jobs, contributing to employment generation and regional development in southern Kazakhstan. By fostering industrial growth and enhancing local capabilities, the initiative aligns with the country’s broader strategy to diversify its economy beyond traditional sectors such as oil and gas.
Industry analysts view the project as part of a wider trend among emerging economies seeking to move up the textile value chain. Rather than relying heavily on imported fabrics and finished goods, countries are increasingly investing in integrated production systems that allow for greater control over supply chains and improved resilience against global market disruptions.
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The collaboration with a Chinese partner also reflects deepening economic ties between Central Asia and China, particularly under broader regional connectivity and industrial cooperation frameworks. With China’s extensive experience in textile manufacturing and technology deployment, the partnership is expected to bring both technical expertise and investment to Kazakhstan’s developing sector.
If successfully implemented, the cotton-textile cluster could significantly reduce Kazakhstan’s reliance on textile imports while boosting export potential. By combining agricultural expansion with industrial processing and manufacturing, the project is poised to create a more self-sufficient and competitive textile ecosystem.
As global supply chains continue to evolve, Kazakhstan’s move to establish a technology-driven, vertically integrated textile hub signals its ambition to become a notable player in the international apparel and textile industry, while supporting sustainable growth and economic diversification at home.
