Russian technology group (Rostec) will sign a strategic cooperation agreement with China North Industries Corporation (NORINCO) and China Southern Industries Corporation (CSGC)
The 20th regular meeting of the heads of Chinese and Russian governments will be held in Beijing on December 17 this year. The Russian Technical Country Group plans to sign a strategic cooperation agreement with China North Industries Corporation and China Southern Industries Corporation during the meeting.
Russian Prime Minister Dmitry Medvedev and Chinese Premier Li Keqiang will attend the signing ceremony of the agreement. This cooperation will promote the establishment of a cooperation mechanism between Russian and Chinese enterprises and jointly develop technical cooperation in trade, investment and high-tech fields.
The two sides plan to develop mutually beneficial and win-win projects in Russia and China as well as in third-party countries. Business representatives believe that priority areas of cooperation in the future include the production of high-precision machine tools, electrical equipment, automotive parts, optical instruments and materials, and medical equipment.
The cooperation between the companies of the Russian Technical Country Group and China has been long-standing and covers many fields. The cooperation between the Russian technology countries and Chinese partners in the fields of electronics, aerospace science, industry, and technology is fruitful. The cooperation projects include the development of mining infrastructure in the Far East, Russian technology-chemical engineering and composite materials holding company (RT-Chemcomposite) to participate in China’s chemical industry technology upgrading project, KAMAZ and Volga Automobile Manufacturing (AVTOVAZ) procurement Auto parts made in China.
The Russian technology group, the Russian group, was established in 2007 to promote the development, production, and export of high-tech industrial products for civilian and military use. It consists of 663 organizations, of which there is currently nine defense industrial complex holding companies, six in the civil industry, and 32 directly affiliated companies. The Russian Technical Group’s products include Volga Automobile Manufacturing, Camas, Russian Helicopters, and ASMMA-VASMA. The Russian Technical Country Group has organizations in 60 parts of the Russian Federation and its products are exported to more than 70 countries around the world. In 2014, the Russian technology country group revenue reached 964.5 billion rubles.
Russia’s technology group (Rostec) ranks among the world’s top 100 ordnance manufacturers
Eleven Russian companies, including companies under the Russian Technology Group, are among the top 100 ordnance manufacturers in the world in 2014. The Stockholm International Peace Research Institute (SIPRI) has released the status of world ordnance production and sales.
The report pointed out that despite the severe economic situation, Russia continued to expand its sales of ordnance products in 2014. In the top 100 list, the number of Russian companies increased from 9 to 11, accounting for 10.2% of total annual sales.
High Precision Systems, the first high-tech company to enter the rankings, ranked 39th. United Instrument Manufacturing Corporation ranks among the top 100 and ranks 24th.
Experts at the Stockholm International Peace Research Institute believe that Russian Helicopters holds 23 and United Engine Corporation ranks 38th. Radio electronics technology KRET ranks among the top 45 in the top 100 list.
“Russian companies have raised their military expenditures and ordnance exports to the highest level. There are currently 11 Russian companies in the top 100 list, and their imports in 2013-2014 have increased by 48.4%” – Stockholm International Peace Research Institute Senior researcher Simon Wessman introduced to the Tass news agency.
The Stockholm International Peace Research Institute also pointed out that the sales of military technology products of the world’s top 100 ordnance manufacturers have fallen for four consecutive years. Sales for 2014 were $401 billion, a decrease of 1.5% from 2013. This situation is mainly due to the decrease in sales of companies in North America and Western Europe, while at the same time, sales of companies from other regions in the top 100 list have increased.
Andre Kropov: We have focused on the Russian project
Russian technology-business development companies plan to focus on supporting assets of interest in the Indian, Chinese and Japanese markets, and Andrei Kropov, director of the investment division of the Russian technology group (Rostec), introduced to Bloomberg Businessweek.
The Russian Technology-Business Development Corporation was established in 2014 to improve asset management and promote the development of a promising business direction with various financial instruments. According to Andrei Kropov, in 2016, its assets under management could grow by 50% to more than $1.5 billion. “As a result of the sanctions, we have ended our active search for international projects because sanctions have limited our project financing,” said Andrei Karpov. – Therefore, we focus on Russian projects.”
At the same time, according to its introduction, the Russian Technical Country Group will continue to develop international projects that have already begun.
Andrei Karpov pointed out that the group will work to reduce the dependence of the Russian economy on the composition of raw materials. Therefore, the Russian Technical Country Group plans to attract foreign partners through the raw material project to enter the Asian market. In addition, the Russian technology-business development company has negotiated with China Shenhua Energy Co. to develop coal mines in Amur and cooperated with India’s Global Steel Holding Ltd to build ammonia products in Yakutia. Urea production plant, the project value is 1.6 billion US dollars. The preliminary calculation of the plant capacity is more than 1 million tons of urea, which is planned to be sold to India.
According to Andrei Kropov, the coal project includes the construction of power stations and the sale of electricity to China to replace the export of coal. According to its introduction, China Shenhua Energy Company believes that China’s northeast region will face coal shortage within five years, and the cooperation project with the Russian technology country group is very timely.
The Russian Technical Country Group plans to jointly produce rare earth mines in the Yakut Tomtor mine in 2019 with the ICT Group of Russia. The Russian Technical Country Group holds project voting rights, and East Industrial Group valued the project in 2013 at $1 billion. Due to the depreciation of the ruble, the value of the project fell to about 500 million US dollars, Andrei Kropov introduced. The production of rare earth ore can meet the demand for rare earth ore in the manufacturing process of wind turbines and hybrid vehicles in Russia. The group also plans to export its products to Japan, and if it does, it will also export to China, said the general manager of the Russian technology-business development company.
Despite the sanctions, the Russian Technical Country Group still has multiple projects abroad. A consortium led by the Russian Technical Group of Companies, including Tatneft and GS Engineering & Construction Corp, won a bid for a U.S. refinery $3 billion construction project. The first phase of the refinery will begin in 4 years when it will process 30,000 barrels of oil per day.