The press-conference arranged by the Composite
Holding Company (CHC) took place in Moscow at Company’s office on Wednesday
this week. Company is fairly young, has recently celebrated the 3rd
anniversary, but has achieved a lot for the past 3 years, nevertheless there is
much more to be done.
The objective of the meeting with journalists was to discuss Company’s
achievements and share the view and ideas on the composite market development
and future of the industry in Russia.
Chief executive officer of the Composite
Holding Company, Leonid Melamed, opened the meeting. He introduced his
colleagues who were responsible for various business industries and presented
their sectors achievements in those areas.
Mr.Melamed started his presentation mentioning that the Company manages
some important assets which were established years ago – some of Rosatom enterprises
(as example - plants in Chelyabinsk, Balakovo), as well as plant which was
purchased from Lukoil and few other entities. “We are actively working on
modernization of these plants”, - said Mr.Melamed. Company is building up
vertically integrated organization, at the moment we are producing wide range
of products and materials –ranging from precursor and carbon fiber production to
manufacturing of the products for end-users with significant high-tech
components.
Recently the Company has set up
the Nanotechnology Center of composite materials, which is based on the territory
of “Moskvich”, formerly well known as AZLK. Center was designed to help
manufacturers at start-up stage and provide its equipped base for research,
experimental design, technological, laboratory and certification work. The idea
was to provide very well equipped base and expertise for the companies who have
innovative ideas, but experience difficulties with financial support.
In 2011 there was a decision taken to create
the design department; at the moment colleagues there are actively working on
about 20 new projects.
These days the lack of engineering is a
serious weakness for industry development. There is a huge deficit of engineers
who could design the products based on new innovative materials, lack of
technologists who could create the complete production cycle of the process.
That is why the CHC has initiated the creation of the Engineering Center. “We won
related RUSNANO tender and plan to launch few sections of the Center in 2012”,
- said Mr.Melamed. It was stressed that any innovative company will be able to
use the Center’s services, use the modern equipment and apply for Composite Holding
Company experts’ advice. There are about 20 technologies exist globally with
regard of molding of products with great strength and low weight composites. All these
technologies promised to be available at the Center. CHC closely monitors worldwide
trends in that area and purchases very modern equipment.
There is a construction of the new plant in
Alabuga, Tatarstan, going on at the moment. The Company plans to manufacture
carbon fiber there, which is expected to be very competitive in the global
market. There is 90% of the products produced by Alabuga plant will be
exported. Launch of the plant is scheduled by the end of 2012. The plant is unique
as for the first time Germany has given a permission to purchase their
equipment for such purposes. One of the potential clients for the plant, which
has already expressed the interest, is Airbus. Composite Holding Company
strategy in general is not to spread out the efforts, but to focus on carbon fiber
at the moment and develop itself in that area aggressively in order to become a
world leader.
There is another construction going on in
Dubna, where the Company plans to produce high quality prepregs. There are no
prepregs of such quality in Russian market at the moment and that is a big step
forward.
Answering the questions regarding Company’s
key clients in Russia and market readiness for purchasing innovative materials
and products, Leonid Melamed sadly noted that unfortunately Russian market is
just about 0.4% from the world composite products market and that is extremely
low number and there is a big potential here to grow. In Russia CHC has no
competitors, last year it covered 58% of the Russia’s market, the rest was
imported.
With regard to the key drivers of the world market
for the industry there were following sectors mentioned: aerospace, auto
industry, wind energy sector and, finally, construction and shipbuilding. Until
recently the first driver was aerospace, the world was looking after
competition between Airbus and Boeing. But later in 2011 the situation has
changed following the announcement of big auto producers, as BMW for example,
regarding the work which has been done in special secret laboratories on
creation of new carbon cars. BMW has confirmed that this work has started in
1998. That will require the whole change of all auto production lines in the
industry, not just replacement of simple details. And that promises to become
mass production, comparing to airplanes manufacture. That is huge step forward in
the industry. Markets expect these composite products to transfer to other
industries. Another important driver is wind energy industry development. USA
and Europe subsidize a lot in its development. Construction and shipbuilding
were mentioned as the 3rd world drivers.
But all the above were listed as a world
drivers of the composite industry. The order of the drivers in Russia is a bit
different and there are objective reasons for that. Thus, due to the lack of
high-tech auto and wind energy industries, the main drivers in Russia are
construction and shipbuilding. Depreciation in construction is about 80% and
there is a real need for replacement of old parts by the new carbon parts. Composite
Holding Company’s important objective is to make sure that the new innovative
materials are increasingly used in construction. Technology of objects strengthening
is very interesting – it does not increase object’s weight at all; materials
are very easy to use, complexity of the work process is lower etc. There is a
huge potential for such technology in renovation area, repair works. There is
one more challenge in Russia related to the bridges construction and
maintenance. The trucking industry requirements have been changed significantly
for the past few years, thus there is a big need to strengthen and renovate the
bridges. One of the key challenges in bridge construction is funding as
composite bridges are expensive. At the same time there was a sample
demonstrated to journalists where the bridge capacity was increased from 20 to
82 tons through the use of new materials (comparing to previously used metal
ones), at the same time there was 46% cost saving achieved on materials and
work process. Company’s objective is to go beyond one-time orders for bridge
renovation and construction and develop new mass bridge-building industry.
Another important area for the composite
materials application is construction of roads. There is a special product
“Fiber”, which is actively used for these purposes. There were few roads made
with that product in some regions – as Ulyanovsk, Saratov, Tver and Kaluga
regions, Khabarovsk and some others. The product has demonstrated extremely
good characteristics and there is big potential for its use.
Still there is a lot to be done in
construction industry in order to promote the new technology. And CHC regularly
arranges training seminars for builders, designers, engineers. There were few
strategic sessions hold for Rosatom. There were special educational programs
developed for students in order to grow the future experts for the industry.
Shipbuilding was mentioned as another key
driver for the industry. The appropriate division has recently been set up in
the Composite Holding Company, but there is serious work going on old materials
replacement by the new composite ones in that sector. Comparing to the traditional
materials the new ones are unique and superior in quality at times. There is a
new technology for ships furnishing by innovation materials. The demand here
depends a lot on State order for military defense. With the focus of recently appointed
Mr.Rogozin, there is a big expectation for the State order execution
improvement, including significant increase of composite materials usage. CHC actively
cooperates with all design Bureaus and factories building ships in Russia, work
very closely with United Shipbuilding Corporation, trying to participate in
Federal Programs. A lot of work is going on, but, unfortunately, there is
nothing that Company could demonstrate just yet.
No doubt that aerospace sector stays significant
for the composite industry. The main CHC’s partner is United Aerospace
Corporation. But there are few serious international competitors in that area.
Obviously the Company is the only supplier in military sector. There are few interesting
projects in Roskosmos where CHC also plans to participate actively.
The
pipeline is one more important industry driver in Russia - both in oil and gas
and Housing and Communal services. There is a big need for pipelines
modernization – strengthening the pipes by composite materials and manufacture
of pipes using innovative technology.
There is also big demand for innovation
materials and products in nuclear industry and the Company works a lot in that
area. Special program was developed for composite materials application in that
sector. The program is split into 2
parts – R&D and use of carbon fiber at the reference facilities. The aim of
the program is obvious – the application of new innovative materials for
outmoded and wracked facilities. All the Rosatom entities are involved in such
program. The work has been finished at 2 facilities to date. There is a plan to
cover 50 more facilities by end of 2012. The benefits of the new materials use are
absolutely clear – reduction of construction work duration, cost of renovation,
and increased resistance of the facilities to various impacts. At the same time
such experience can be successfully deployed in other areas. But there is a
need for serious tests of materials in terms of their application where contact
with nuclear matter exists. Thus, the Company considers it as a long term task
for the next 10 years.
The main focus in transport sector is on
Russian Railways and their demand for new trains. CHC has developed the needed
design documentation for the completely new train made for 90-95% of such
composite material as fiberglass. Now the challenge for the project
implementation is funding. There are also some projects in work with KAMAZ and
Avtovaz.
As key factors which restrain the industry
from the fast development the lack of competition and existing corruption were
mentioned. “Unfortunately it is not possible to change the situation in one day
as our economy was focused on monopolism for a long time. Nevertheless
Composite Holding Company is actively working on the situation, communicating
the issues and offering ideas to the country government”, - said Mr.Melamed. There are some other important factors which
slow down the industry growth were listed: high costs of new innovative
materials versus traditionally used ones as steel and aluminum; deficit of engineering
staff who have skills to work with composite materials (but at the same time it
was mentioned that Company works very closely with few leading institutions such
as Moscow State University, Bauman institute, High School of Economics and some
other in order to solve the problem with resources); lack of specific
documentation; certain industries lagging; legislation imperfection; long (up
to 2 years) certification process and tests cycle (at the same time it was
stated that the certification is not mandatory, although it is a business
practice and demanded by most of the clients).
But the benefits of innovative products and
huge potential for the industry growth are absolutely obvious. Country will
only win from the economic efficiency point of view, consumption volume
perspectives, industry openness to innovations. Composite materials industry may,
for sure, be considered as one of the key instruments, which is able to help
the country in the near future to achieve declared aim to make people’s lives
better, take the country to the next level. There is a lot to be done in order
to resolve above mentioned issues, but considering other countries experience
that is a doable task, and we should start immediately and do everything
possible to move much faster. Russia can make a breakthrough, but the clear focus
and support are needed in order to make it happen.
