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Chinese acquire Russian factories

Chinese investors are considering expanding their presence in the Russian textile industry.  The move is expected to take place through Chinese financing of new production facilities within Russia and the relocation of existing China textile plants to Russia.

A key focus of the plant transfers would be Siberian and Russian regions bordering China – the two countries share a huge land frontier, the world’s sixth longest. One benefit for Chinese textile manufacturers is that they can escape tightening China environmental regulations, which have forced the closure of many non-compliant factories.

The interest of Chinese investors in the Russian textile industry is associated with huge benefits for Russia and will allow new technologies to be brought to the industry and an increase in the level of its productivity. The majority of workers at these plants will be Chinese.

Chinese investors plan to own plants producing a wide range of textile products in Russia. And they want to create backward and forward linkages through the acquisition of Russian companies, enabling them to make textile supplies and clothing within Russia, making use of Russian fiber and cotton processing capacity.

Chinese investors are acquiring textile plants and setting up industrial facilities not only in Russia but also in other countries of the world.