Russia plans to attract Chinese investors to the domestic nonwovens industry during the next several years, which is expected to take place through the sale of some of the country’s leading nonwovens enterprises to Chinese business and the provision of territories for the establishment of nonwovens production facilities, that will be operated by the Chinese capital, according to recent statements of an official spokesman of the Russian Association of Nonwovens Producers, a public association that unites Russia’s leading nonwovens producers.

According to Denis Manturov, Russia’s Minister of Industry and Trade, a person, who is responsible for the development of nonwovens industry the Russian government, the attraction of Chinese investors into the Russian nonwovens industry is associated with huge benefits for Russia, as will allow to bring new technologies to the industry and to increase the level of its productivity.

According to analysts of the Russian Association of Nonwovens Producers, as part of the plans of Chinese investors is establishing a control over the Russian nonwovens enterprises, which are mainly located in the Siberian and Urals region of the country.

According to  Manturov’s spokesman, as part of the plans of Chinese investors is the production of all the main types of nonwovens in Russia with the further supplies to the local and Chinese markets.
Russian analysts believe that China’s interest in the development of nonwovens in Russia is primarily caused by internal problems of the Chinese nonwovens industry.

According to analysts from the department of Oriental Studies of the Russian  Higher School of Economics, in recent years the development of the Chinese nonwovens industry has significantly slowed down, which is mainly due to the decline of the demand from the major consuming industry, caused by the ongoing stagnation of the country’s economy. However, in recent months the demand has started to recover.

In the meantime, the forthcoming Chinese expansion has already been criticized by Russian nonwovens producers.

According to analysts from the Russian Association of Nonwovens Producers, the expansion of Chinese investors to Russia will not be associated with the arrival of any new technologies, as Chinese producers are focusing on the production of simple nonwovens, based on their own experience.

In addition, sales of the domestic nonwovens plants to Chinese business, according to Russian analysts, may pose a threat to the entire Russian nonwovens industry.

According to analysts of the Nonwovens Association, the expansion of Chinese producers posed a threat to the entire Russian industry, as, the government may transfer up to 20 Russian large-scale nonwovens plants to Chinese investors  under the unfavorable terms in the most developed regions of the country.

Analysts also believe that the majority of future production of these plants will be supplied to China, while the volumes supplied to the domestic market will be insignificant. In addition, the majority of jobs on the new production facilities will be provided to Chinese workers.

Russian producers are also unhappy with the plans of the state to provide huge tax benefits to Chinese investors, and in particular the reduction (or complete lifting) duties on the exports of Russian nonwovens and technical textiles to China.

According to producers, there is a possibility that some of the Russian nonwovens plants may be transferred into Chinese ownership, as a compensation for their participation in the large-scale oil and gas projects in Russia and the provision of loans by Chinese banks.

As part of Chinese investors’ plans, during the next 10 years up to 30 investment projects will be implemented in the Russian nonwovens and technical textile industry, that will require the use of about 10,000 pieces of equipment and about 50,000 Chinese workers.