Monday, October 27, 2014

[ Rs.36,296,93,450.00 Or 2.5 Billion Rubels Technical Textile Plant in Russia.]

BTK Holding, one of Russia’s largest producers of 
technical textiles and apparel, owned by Russian billionaire 
Taymuraz Bolloev,is commissioning a new large-scale facility 
for the production of technical textiles in Russia.

The new plant is located in the city of Shahty (Rostov region), 
and it is estimated that 2.5 billion rubles will have been 
invested by the time the facility opens.

Russian billionaire Taymuraz Bolloev © BTK Holding.

A date for the completion of the plant is unclear at this 
stage but the company has already completed preparatory works 
for the launch of the 120,000 square metre production facility, 
which already employs more than 1000 people.
Most modern and high-tech production facilities

According to Viktor Evtuhov, Russia’s Deputy Minister 
of Industry and Trade, after its full commissioning the
new plant will become Russia’s most modern and high-tech 
production facilities in the domestic technical textiles 
industry. It was built on the site of the Soviet Shahtinskii 
silk and cotton mill, which was one of the largest producers 
of textile products in Europe during the 1970-1980s.

According to Taymuraz Bolloev, the planned new plant will 
have a good technological infrastructure and operate more than 
250 units of modern equipment, which were purchased in Italy, 
Denmark, Germany, Switzerland and France. The EU sanctions 
on the imports of machinery to Russia, including those for 
the textiles and technical textiles industries has not 
affected the company, as it was able to complete 
all the purchases of required equipment before the beginning 
of the sanctions war between Russia and Western countries.

He has also added that the new plant will focus on the 
production of high-tech synthetic textiles, and fabrics, 
the demand for which has significantly increased in Russia 
in recent years. The capacity 
of the plant will be in the range of 5-6 million meters 
per year, with the possibility of increasing volumes 
during the next few years.

According to analysts of the Russian Union of Entrepreneurs 
of Textile and Light Industry, at present the domestic 
technical textiles industry remains practically undeveloped.

According to BTK’s initial plans, the new plant should 
have focused on the production of nonwovens fabrics from 
synthetic fibres, which were to have ‘smart fabrics’ 
properties during the second stage of the technological 
chain. However, later it was decided that the new plant 
would also focus on the production of synthetic fibers, 
as well as heat retainers.

BTK Textiles expects that its new products will be sold 
both on the domestic and foreign markets.
Undeveloped domestic technical textiles industry

According to analysts of the Russian Union of Entrepreneurs 
of Textile and Light Industry, at present the domestic 
technical textiles industry remains practically undeveloped, 
with local production currently meeting only15% of domestic 
consumption of technical textiles.

However, there is a possibility that the launch of the 
new complex will allow the current market situation to 
significantly improve.

Viktor Evtuhov comments: "By 2025, the level of consumption 
of technical textiles in Russia is expected to grow by 
3-5 times, so the commissioning of the new plant will
contribute to this growth and will allow to establish 
regular supplies both to the domestic market and abroad.”

Victor Evtukhov also said that the government plans to
provide a number of incentives to BTK and in particular
to provide subsidies for the purchase of raw materials.

At the same time the government has also given BTK the
opportunity of stable sales of its production on the 
domestic market, as the company has been appointed a 
sole supplier of uniforms for the Russian army.

According to Taymuraz Bolloev, the planned new plant 
will have a good technological infrastructure and operate
more than 250 units of 
modern equipment, which were purchased in Italy, Denmark, 
Germany, Switzerland and France.

In addition, according to Teimuraz Bolloev, the company 
is currently in talks with some leading companies from 
the automotive, medical and construction industries about
supplying them from its new production facility.

Bolloev said that the demand for technical textiles from 
the domestic automotive industry alone exceeds 200 million 
metres of fabrics.Demand will be high

BTK believes that the demand for its technical textiles
will be high and it will be competitive with imports, 
which are currently supplied to Russia on a large scale. 
This is despite numerous calls from the Russian Association 
of Textile and Textile Producers to impose a ban 
on them as part of the sanctions war with Western countries.  

Instead of this, the government plans to accelerate the 
fight against illegal imports of technical textiles to Russia.

According data from the Russian Federal Customs Service, 
the biggest volumes of illegal imports are currently 
supplied from Kazakhstan and Kyrgyzstan as well as China.  
Entire cluster is possible

At the same time BTK has not ruled out the possibility of the 
establishment of an entire cluster on the territory of the new 
plant through the attraction of foreign investors from some 
related industries. As part of these plans, the company has 
already started talks with Japanese YKK, one of the world’s 
largest producers of zips about the establishment of a joint
venture.Further large-scale production of technical textiles

In the meantime, BTK is not the only Russian company, which
plans to establish large-scale production of technical 
textiles. Several days ago the National Investment and 
Finance Corporation (NIFC), one of Russia’s largest 
investment corporations, has announced the establishment 
of the large cluster for the production of textile 
and technical textile products in the Russian Ryazan region.

The new cluster will be established on the basis of a local 
spinning and weaving factory, located in Korablino and 
the total volume of investments in the project is estimated
at 5 billion rubles (US$150 million).  

BTK is not the only Russian company, which plans to 
establish large-scale production of technical textiles.

According to NIFC, the new factory will produce up to 
3.65 million linear metres of technical fabrics, to 
process up to 5000 tons of cotton and to produce more 
than 2.5 million linear meters of textile 
wall coverings.

Payback period of the project is 4 years and the new 
textile clusterwill create more than 1000 new jobs.

Established in 1962, Korablinsky textile factory 
currently remains one of the oldest producers of 
fabrics in Russia.

In the meantime, the Russian government has already 
welcomed both projects and has also announced its 
plans for the provision of support for the establishment 
of other similar projects in the industry.According to
Denis Manturov, Russia’s Minister of Industry and Trade, 
as part of these plans the government has not ruled out the
possibility of the establishment of a special fund, which 
will provide cheap loans to domestic producers of industry 
equipment and technical textiles for the expansion of their
production facilities.
See more at: http://
www.innovationintextiles.com/btk-holding-to-establish
-one-of-russias-largest-technical-textiles-plant/
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