Kazakh PM discusses with Zhang Qihai, head of Xinjiang Lihua, cotton-textile cluster worth over 200 billion tenge
Prime Minister of the Republic of Kazakhstan Olzhas Bektenov met with the Chairman of the Board of Directors of the Chinese company Xinjiang Lihua (Group) Co., Ltd. Zhang Qihai, El.kz cites primeminister.kz.
The progress of the investment project to create a cotton-textile cluster on the territory of the special economic zone TURAN in Turkestan region was considered.
The project is aimed at forming a cotton agro-industrial complex with a full cycle of production from cotton cultivation to the production of finished textile products in the form of yarn, fabric, clothing, etc. The project is aimed at creating a cotton agro-industrial complex with a full cycle of production. Over 50,000 hectares of land have been allocated for sowing, and ten factories are planned to be built, including four for cotton processing near the sowing areas, two for the production of drip irrigation systems using modern water-saving technologies, as well as four textile factories, including a garment factory and a dyeing and finishing factory. Total investment is over 200 billion tenge. More than 4,000 jobs will be created, 3,000 of which will be permanent.
To date, to meet the needs of the cluster, a plant for the production of PVC pipes has been commissioned, and construction of textile factories has begun. The investor is constructing irrigation infrastructure (a network of canals and a pumping station).
Chairman of the Board of Directors of Xinjiang Lihua (Group) Co., Ltd. Zhang Qihai noted the favourable investment climate in the country and the climatic features of the region that are favourable for the project. Zhang Qihai said that from October this year it is planned to launch the first production of finished products.
Prime Minister Olzhas Bektenov emphasised the significance of the project and the importance of the cluster approach in the development of the economy. Turkestan region is the only region of Kazakhstan where cotton is grown.
"The Head of State has set a task to diversify the economy and attract investment in the real sector. The creation of a cotton-textile cluster will help to increase the added value of production, develop agricultural production with a focus on processing and build up the country's export potential.Thegovernment on its part will provide the necessary support,"Olzhas Bektenov said.
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