Textile production in Kazakhstan shows stable growth

Kazakhstan Materials 25 January 2021 13:11 (UTC +04:00)
Textile production in Kazakhstan shows stable growth

BAKU, Azerbaijan, Jan. 25


The share of textile production in the light industry production of Kazakhstan amounted to 55 percent or 71 billion tenge in 2020, which is 18 percent higher than in 2019, Trend reports citing the Ministry of Industry and Infrastructure Development of Kazakhstan.

The growth in the sector of textile production was got by increasing the volume of cotton fiber by 18 percent, cotton fabrics by 59 percent, and fabrics made of synthetic and artificial threads by 85 percent.

In textile production, the main share is occupied by such regions as Shymkent (25 percent or 17.7 billion tenge) and Turkestan region (31 percent or 31 billion tenge), said the ministry report.

“Traditionally, cotton is grown in the Turkestan region, as a result of which the main cotton processing enterprises are concentrated in this region. In addition, among natural textile fibers, cotton fiber is the largest group in terms of production in the country,” the report reads.

According to operational data, the production of cotton fiber in 2020 increased by 18 percent and amounted to 74,626 tons, domestic enterprises processed about 10,000 tons.

Kazakhstan’s export over the first 11 months of 2020 amounted to 51,893 tons or $68.5 million. The main countries for the supply of products are Latvia, Turkey, and China.

According to domestic enterprises that process cotton fiber, it is planned to process about 14,000-15,000 tons of cotton fiber in 2021.

On the part of the state, support for textile industry enterprises is provided within the framework of systemic measures aimed at the manufacturing industry, such as promoting product exports, stimulating increased labor productivity, promoting goods in the domestic market, implementing the Unified Business Support, and Development Program ‘Business Road Map 2020’. Also, as part of the development of the ‘Economy of Simple Things’, preferential lending is provided (no more than 6 percent).

Today, in the textile industry there are 4 enterprises: TPK Alliance (formerly Utex JSC, Melange JSC), AZALA Textile LLP, AZALA Cotton LLP, which can process cotton fiber.

Of the 4 textile enterprises, one is located on the territory of the Ontustik FEZ (AZALA Cotton LLP), which enjoys a special tax regime, as well as a favorable tariff for utilities (gas, water, electricity).

At the moment, the Ministry is working to include textile enterprises TPK Alliance (formerly Utex JSC, Melange JSC) and Azala Textile LLP in the subzones of the Ontustik FEZ.