Rostec State Corporation and Beijing Petrochemical Engineering Company (BPEC) have concluded a memorandum of cooperation. On behalf of Rostec, the memorandum was signed by State Secretary Maxim Vybornykh. Within the framework of the cooperation, the joint venture (JV) for the localization of state-of-the-art liquefied natural gas (LNG) technologies on the State Corporation facilities will be created, and Rostec will have a controlling interest in it.
The agreement meets the goals set in the May Decrees of the President of the RF on import substitution and the creation of high-tech work places. Moreover, the joint venture corresponds with the main Rostec strategic imperative, which is the growth of ruble revenue by 17%, including through an increase in civilian products sales due to the formation of holdings that compete successfully in global markets for high-tech products and have a significant share in them.
Beijing Petrochemical Engineering Company is part of the fourth largest oil and gas company in China and has over 60 patents in the field of oil and gas processing, petrochemicals and LNG technologies with A class certificates.
"The cooperation with BPEC is a clear example of globalization and the adoption of successful foreign experience in the interests of our country's industry. At present, Rostec facilities are already manufacturing products related to LNG technologies. The creation of the JV will allow the expansion of LNG infrastructure in the RF, including the launch of pilot projects in particular regions. And most of the financing will be provided by the Chinese side," said State Secretary of Rostec State Corporation, Maxim Vybornykh.
Rostec facilities also produce equipment for liquefied natural gas transportation and storage. Engineering is conducted for the manufacturing and supply of gas and energy equipment for the construction and reconstruction of FEC facilities and the modernization of the gas and energy equipment (gas turbine TPP). Gas turbine engines developed at Rostec facilities are also manufactured with the provision of post-sale services, as well as gas turbine power units for the generation of electric and heat energy. In addition, a high-capacity gas turbine power plant that is very environmentally friendly has been developed for the world's first gas turbine locomotive powered by LNG.
KAMAZ and AvtoVAZ, which are part of the State Corporation, also develop and manufacture automobiles running on natural gas motor fuel.
The further development of the products directly depends on the presence of natural gas motor fuel in the domestic market and on the construction of LNG infrastructure, which is currently in need of active development.
Rostec State Corporation is a Russian corporation that was established in 2007 to facilitate the development, production and export of high-tech industrial products designed for civilian and military applications. The Corporation comprises over 700 organizations that are currently part of 11 holding companies operating in the military-industrial complex and 3 holding companies working in civilian industry, as well as 80 directly managed organizations. Rostec's portfolio includes well-known brands such as AVTOVAZ, KAMAZ, Kalashnikov Concern, Russian Helicopters, VSMPO AVISMA, UralVagonZavod, etc. Rostec companies are located in 60 constituent entities of the Russian Federation and supply products to more than 70 countries. In 2016, the consolidated revenue of Rostec amounted to 1 trillion 266 billion rubles, while the consolidated net income and EBITDA amounted to 88 and 268 billion rubles respectively. In 2016, the average salary in the Corporation was 44,000 rubles. According to Rostec strategy, the main objective of the Corporation is to ensure that Russia has a technological advantage in highly competitive global markets. Rostec's key objectives include the introduction of a new techno-economic paradigm and the digitalization of the Russian economy.
