Both parties will reportedly invest over US$500 until 2025. 

The plan is to create a vertically integrated company to produce carbon fiber based polymer composite materials, including raw materials, semi-products, finished goods. The first step is to establish a joint venture aimed at composite materials production and trading, including technical fabrics and prepregs. This joint venture will be established in Shenyang, Liaoning, China, before the end of 2014. 

Further steps will be made in 2015-2016 and include the joint development of carbon fiber reinforced plastics-based finished goods, as well as raw materials such as PAN-precursor and PAN based carbon fiber. The companies will also invest in facilities and equipment to produce these products.  They suggest that over 1000 jobs will be created in Russia and China.

New developments

"The strategic alliance of two companies will stimulate new developments of composite materials to raise demand in China and Russia and win a significant share of that business in PRC and Russia in future," said Leonid Melamed, general director of Composite Holding Company.

"As expected, we will develop composite business jointly and will win up to 20% of future market of carbon fiber based composite materials in China (at least 7000 tons of forecasted 35000 by 2020-2025),” said Mr Zhang Jie, board of directors chairman of China Hi-Tech Group Corp.

The Chinese carbon fiber and composite materials market is reportedly the largest in the world, at 20 per cent. The world market covers 50,000 tons of carbon fiber based composite materials while the Chinese market consumes over 10,000 tons of carbon fiber based polymer composite every year. It has been predicted that the level of consumption of composite materials in China will grow up to 35,000 tons per annum by 2020-2025.