A textile mill built by China's Xinjiang Lihua group in Turkestan region is now one of the showcase projects named by Kazakhstan's Ministry of Industry and Construction in its review of special economic zones. The plant, operated by Turkistan Tokyma LLP, sits in the Turan SEZ. Its first phase started in December 2025 and currently provides 430 permanent jobs. Once at full design capacity, it is expected to turn out 11,400 tonnes of yarn, 47.3 million square metres of fabric, 2 million bedding sets and 4 million quilts a year.
The ministry published its review on October 9. Officially, Kazakhstan has 18 SEZs, four of them set up in 2025-2026. Across the zones, 561 investment projects have been implemented, 11.5 trillion tenge invested and 15.9 trillion tenge of output produced, of which 1.1 trillion was exported, with more than 38,000 jobs created. Few companies got a separate mention. Besides the polypropylene complex in Atyrau and the gold refinery in Astana, two Chinese-backed projects were named: the Lihua mill and Fufeng group's corn deep-processing plant in the Jibek Joly SEZ in Zhambyl region.
Details of the Lihua project were released by the Turkestan regional akimat at the launch last December. The mill covers 42 hectares, construction began in 2024, and the investment is 86.2 billion tenge. At that time the plan was to finish the remaining three phases by December 2026 and add roughly 2,000 more jobs. So the end of this year is a checkpoint. No updated official schedule could be found so far.
The mill is only one piece of Lihua's plans in Kazakhstan. On December 30, 2025, Kazakhstan's Foreign Ministry and Kazakh Invest met the company's management. According to the official readout, the cotton and textile cluster covers up to 10 production facilities, from cotton growing and ginning to spinning, weaving, drip-irrigation tape and related materials. Investment was initially estimated at 450 million US dollars, and at the meeting Lihua said it intended to raise it to 600 million. By then a PVC pipe plant and two cotton gins were already running in the Turan SEZ, and equipment was being installed at the spinning mill. The ministry expects the cluster to create more than 4,000 jobs. Note that the 600 million dollars is an intention for the whole cluster, while 86.2 billion tenge refers to the single mill; the two figures should not be added together or converted into one another.
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For Chinese companies, the case offers a few takeaways. First, in light industry Kazakhstan wants the full chain: official statements keep stressing that local cotton should become finished goods, not just be partly processed. Second, SEZ incentives and infrastructure matter: at the end of last year the Turan SEZ hosted 28 large projects worth 211.8 billion tenge. Third, investment figures often shift as projects move forward, so due diligence should separate intentions, signed agreements and money actually spent.
Suppliers of equipment, dyes and trims looking to enter Kazakhstan's textile chain may want to follow the progress of Lihua's next phases. Specific SEZ entry conditions and tax treatment should be confirmed against Kazakhstan's SEZ legislation and in written replies from the zones' management companies.
Sources:
Kursiv, https://kz.kursiv.media/2026-10-09/lngr-special-economic-zones-production/
National Business, https://nationalbusiness.kz/news/v-turkestane-zapustili-hlopkoviy-agropromishlenniy-kompleks-565a4a/
Kazinform, https://cn.inform.kz/news/zhongguogongjiangduide6-85aa05/
Key facts
- Kazakhstan currently has 18个 special economic zones, including 4个 newly established in 2025到2026年.
- Special economic zones across Kazakhstan have hosted a total of 561个 investment projects, attracting 11.5万亿坚戈 in investment and generating cumulative output valued at 15.9万亿坚戈.
- Phase I of the Түркістан тоқыма textile factory invested in by 新疆利华 in the Turan Economic Zone commenced operations in 2025年12月 and currently provides 430个 permanent positions.
- Once fully completed, the textile factory will produce 1.14万吨 of yarn and 4730万平方米 of fabric annually.
- According to 突厥斯坦州政府, the textile factory occupies 42公顷, construction began in 2024年, and investment amounts to 862亿坚戈.
- As of the end of last year, the Turan Economic Zone had 28个 major projects with a combined value of 2118亿坚戈.
FAQ
Where is this textile project located, and who is investing in it?
The project is named Түркістан тоқыма and is located in the Turan Economic Zone in Kazakhstan's Turkestan Region. It is being financed and built by 新疆利华（集团）.
What is the project's current progress?
Phase I commenced operations in 2025年12月 and currently provides 430个 permanent positions; under the plan at the time, all remaining phases were to be completed before 2026年12月.
What will the project's production capacity be at full capacity?
By design, once fully built, the project will produce 1.14万吨 of yarn and 4730万平方米 of fabric annually, as well as 200万套 of bedding sets and 400万条 quilts.
What is the scale of the investment?
突厥斯坦州政府 disclosed that investment in the textile factory totals 862亿坚戈. The total investment figure for the 利华 cotton textile industrial cluster was raised from an initial estimate of 4.5亿美元 to the 6亿美元 figure stated at the meeting. The two figures cover different scopes and cannot be directly added together or converted into one another.
What does this project mean for Chinese investors?
The Kazakh side is seeking a complete value chain in light industry, with an emphasis on processing local cotton into finished products on site. The economic zone's incentives and infrastructure are important conditions for implementing the project. During due diligence, it is advisable to distinguish between expressions of intent, agreements, and investment already completed.