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22nd October 2014, Russia

BTK Holding to establish one of Russia’s largest technical textiles plant

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 cluster will 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.

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