RUSNANO’s Portfolio Company Russian Quartz Will Significantly Expand Its Presence on the Global High-purity Quartz Market
RUSNANO’s portfolio company Russian Quartz has launched the second phase of its quartz deep enrichment plant. Russian Quartz currently produces more than 3 million tons of quartz concentrate per year. After the second phase is put into operation, the production volume will increase threefold, which will allow the company to occupy 15% of the world market, and in the long term—25%. Thus, Russian Quartz edge out the current market leaders, American companies Unimin and Quartz Corp., and will strengthen its position as a supplier on the global market of high-purity quartz concentrates.
Russian Quartz is a project based at the Kyshtym Mining facility. RUSNANO joined the project in 2011 and invested 562 million roubles in it. In 2013, the Japanese financial and industrial holding company Sumitomo Corporation became a co-investor in Russian Quartz. This is the first project that RUSNANO has implemented in cooperation with a Japanese partner. RUSNANO currently owns 28.69% of the company, the same as Sumitomo Corporation. The remaining share belongs to the company management.
The share of exports in the Russian Quartz’ revenue model amounts to 97%. The main foreign markets are China, Japan and the EU. Buyers include international giants such as SUMCO (Japan), Covalent (Japan), Osram (Germany), Philips (Netherlands), and JNC (China).
Russian Quartz produces high-purity quartz concentrate, which is used in a number of high-tech industries. The uniqueness of the deposit, as well as the company’s specialists’ know-how pertaining to the enrichment and cleaning of the raw material will allow for obtaining the end product of the highest purity. As a consequence, Kyshtym quartz is part of the international technological production chain of microelectronic chips and solar power plant modules.
At the opening ceremony, Chairman of the Board of MC RUSNANO Anatoly Chubais said: “We are opening the second production line of ultrapure quartz at Russian Quartz plant located in Kyshtym. It is a joint project with our Japanese co-investor, the holding company Sumimoto. What does this mean for us and for the economy as a whole? Increased production and the chance to occupy a quarter of the global market. Moreover, we will put pressure on our serious competitors from the USA. We will strengthen our position in global supply chains in the production of electronics, and reinforce our partnership with global giants. Expanding production will bring 400 new jobs to the region.”
“Our company Sumitomo Corporation (Central Eurasia) LLC is very much excited being involved in the development of Russian Quartz, promising export oriented manufacturer of Russia. Sumitomo Corporation Group, which we are representing in CIS region, is a large Japanese trading conglomerate. Being a Trading company we rather concentrated in exporting Japanese products to Russia in the past, but now our ultimate purpose is to be an established Russian Company and contribute a lot to this Country. In this regard, we wish Russian Quartz a great success having constant guidance and co-operation of our reliable and respected Partners, namely Kyshtym Mining KGOK JSC and RUSNANO,” said Keiji Ikemura, President and CEO Sumitomo Corporation (Central Eurasia) LLC.
RUSNANO Joint-Stock Company was founded in March 2011 through reorganization of state corporation Russian Corporation of Nanotechnologies. JSC RUSNANO contributes to implementation of the state policy on the development of the nanotechnology industry by investing directly and through investment funds of nanotechnology in financially effective high-technology projects providing the development of new production facilities in the Russian Federation. Its primary investment focus is in electronics, optoelectronics and telecommunications, healthcare and biotechnology, metallurgy and metalwork, energy, mechanical engineering and instrument making, construction and industrial materials, chemicals and petrochemicals. 100 percent of RUSNANO’s shares are state owned. Thanks to RUSNANO’s investments, there are currently 96 factories and R&D Centers opened in 37 regions in Russia. JSC RUSNANO has profit for the last 4 years.
Management of assets of RUSNANO JSC is carried out by Limited Liability Company established in December 2013, RUSNANO Management Company. Anatoly Chubais is the Chairman of its Executive Board.
Work to establish nanotechnology infrastructure and carry out educational programs is fulfilled by RUSNANO’s Fund for Infrastructure and Educational Programs, which was also established during the reorganization of the Russian Corporation of Nanotechnologies.