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Chinese Firm to Invest $400M in Kazakhstan’s Cotton Sector

Astana (TDI): Chinese company Xinjiang Lihua (Group) Co., Ltd. has announced to invest about $400 million to establish a cotton-textile cluster in Kazakhstan’s Turkestan region.

The announcement was made by Zhang Qihai, Chairman of the Board of Directors of Xinjiang Lihua, during a meeting with Kazakhstan’s Prime Minister Olzhas Bektenov.

The mega investment project will be implemented within the TURAN Special Economic Zone, located in southern Kazakhstan.

The plan envisions a vertically integrated cotton agro-industrial complex, from cultivation to the production of finished textile products, including yarn, fabric, and clothing.

Over fifty thousand hectares of land have been allocated for cotton cultivation.

The project also includes the establishment of ten factories.

Two of these will manufacture drip irrigation systems using latest water-saving technologies.

Read More: China Supports Hydrogen Innovation Center in Kazakhstan

Four others will process cotton near the fields. The remaining 4 companies, including garment, dyeing, and finishing factories, will produce the final textile products.

The total investment crosses 200 billion tenge (nearly $398 million), and the cluster is likely to create three thousand permanent jobs in the region.

Read More: Kazakhstan, China to Boost Trade, E-Commerce

To support the project’s requirements, a plant for producing polyvinyl chloride pipes has already been launched, and construction of the textile factories is underway.

Xinjiang Lihua is also developing an irrigation system, including a canal network fed by a dedicated pumping station.

Kazakhstan

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