Russian-Chinese co-operation: New industrial investments in South Ural

The company "Composite Group Chelyabinsk", engaged in the development and production of composite building materials and specialised equipment for their production, signed an agreement with three Chinese partners.

An agreement on the establishment of a joint venture for the production of composite reinforced building materials was signed with the company "Beihai Haosuen New Material Technology". Components and parts will be manufactured in Chelyabinsk, which will then be delivered to China for the production of finished products.

A memorandum of understanding was signed with the company "Weihai Jinfen Electronics" on the establishment of a joint venture in China for the production of composite anchors, mine supports and other composite reinforcing materials based on the technology and equipment of the South Urals company.

An agreement was signed with the company "Jiangsu Bayer Machinery" on the establishment of a joint venture for the development and production of third-generation machine lines for the production of composite reinforcement based on the technological documentation of LLC "Composite Group Chelyabinsk".

The projects will be realised over several years with a total investment of 137.5 million yuan (about US$19 million). The first line at one of the plants is scheduled to be operational in 2024 and the other two in 2025. Between 2027 and 2030, the total end-product target of the three production facilities is expected to increase to 450 million yuan (approximately USD 62.3 million). According to the agreements, the Russian side will hold a 70% stake in the joint ventures, while the Chinese partners will hold a 30% stake.

In addition, FORENERGO PO, represented by Y.M.E.K. JSC, signed an agreement with Linyi City Jinhao Line Fitting Co., Ltd. to build a new Russian-Chinese joint Russian-Chinese foundry named FORENERGO-LIT in Yuzhnouralsk. Construction will start this summer and be completed in 2025. The new plant will be part of the holding's programme for full import substitution in the production of glass insulators. Project cost will be approximately $11 million and the number of employees is planned to be around 70 people.

The new plant will have the capacity to produce 4,200 tonnes of products per year for glass insulators and line fittings, with plans to increase this capacity to 6,000 tonnes per year.