The agreement aims to facilitate trade, investment and cooperation between the two companies in the high-tech sector
MOSCOW, Oct. 14, 2014 /PRNewswire/ — State Corporation Rostec, Russia’s largest industrial conglomerate comprised of nearly 700 companies, and China Aerospace Science and Technology Corporation (CASC) signed an Agreement for a Strategic Cooperation aimed at facilitating cooperation in R&D and production of electronic components, information technology, communications, automation systems and new materials.
The Agreement was signed by the CEO of Rostec Sergey Chemezov and Chairman of the Board of CASC Lei Fanpei and is one of a number of important bilateral cooperation agreements signed between the two governments and among enterprises. According to the Agreement, both companies will prepare and implement joint projects in Russia, China and in third countries. This cooperation will focus on the civil sector. Rostec subsidiaries, Ruselectronics (a large holding engaged in design and manufacturing of various electronic products and materials) and Russian Telecom Equipment Company (RTEC) are participating in the cooperation on joint design and production of electronic components, information technology, communications and automation systems. RT-Chemcomposite, a leading developer and manufacturer of polymeric composite materials and products, will focus on new materials.
Sergey Chemezov, CEO of Rostec, commented on the cooperation: "Russian and Chinese companies are highly complementary in their competencies, scientific potential and production capabilities. The cooperation provides quality opportunities where the potential of both companies will be fully unlocked to successfully implement projects of global scale. This will allow Rostec companies to increase market share in existing and new markets. Rostec has always attached importance to its cooperation with Chinese enterprises. The Agreement with CASC opens new avenues for economic cooperation and allows for new forms for its implementation."
"Rostec has proved to be a reliable partner for Chinese companies," stressed Chairman of the Board of CASC Lei Fanpei of CASC. "We are interested in strengthening our cooperation with the Russian corporation in a number of areas. This will be beneficial to both parties, because the competencies and technology of Chinese and Russian companies can make a good fit. Potential of cooperation between China and Russia in R&D-intensive industries is vast and fulfillment of this potential will provide additional momentum to a number of areas, including the production of cutting edge electronics."
About Rostec State Corporation
A Russian corporation, established in 2007 with the aim of facilitating the development, production and export of high-tech industrial products for civilian and military application. It includes around 700 organizations, that currently comprise nine holding companies in military-industrial complex and five in civil industries. Organizations of Rostec are located across 60 regions of Russian Federation and export products to over 70 countries. Rostec’s revenue in 2013 was US$32.59 billion, net profit — US$1.25 billion. Tax allocations exceeded US$4.32 billion.
About China Aerospace Science and Technology Corporation (CASC)
CASC is a major aerospace corporation (under direct control of the State Council of the People’s Republic of China) and is one of the ten largest corporations of military-industrial complex of China. CASC also manages China Centre for Resources Satellite Data and Application. Total number of employees is about 180,000. Value of assets — about US$50 billion, annual revenue in 2013 — over RMB143 billion (around US$ 23 billion).