$37 Billion Metals Processing Market to Reach $52 Billion by 2015-RUSNANO Seeks Entry with Microarc Oxidation Nano-Coatings

The volume of metal processing market in 2008 amounted to $34.6 billion, of which about $4.5 billion accounted for accessories and consumables. From 2009 to 2015 the market is expected to grow 6% annually with the total volume exceeding $52 billion by 2015.

The Supervisory Council of the Russian Corporation of Nanotechnologies (RUSNANO) approved the corporation’s participation in the project "Establishing a multifunctional production of porous nanostructured non-metallic inorganic materials". The project, initiated by the Tomsk State University (TSU), is structured in accordance with the federal law № 217 of August 2, 2009.

This law grants the state-funded research and academic institutions the right to create spin-offs for commercializing the results of their research. The TSU’s intellectual property of microarc oxidation technology will be accounted in the chartered capital of the project company in accordance with the law.

The processing lines for applying inorganic non-metallic ceramic coatings on metal surfaces will be the main project’s product. The technology was developed by a group lead by professor Anatoly Mamaev. Engineering and development of equipment was done by Sibspark Ltd.

Microarc oxidation technology provides wear (increasing up to 2-8 times), corrosion and heat resistance, improves decorative properties for aluminum, magnesium, titanium and zirconium components. This paves new ways for using metals and significantly reduces production costs. As the technology is less explosion hazardous and produces no cyanide and nickel/chrome waste, it is environmentally safe.

The micro-arc oxidation (MAO) technique was developed in Russia in the late 1980's. Due to its high energy appetites, MAO coating was more expensive compared to traditional treatments, which prevented its adoption. The research team of the project managed to solve this problem with a brilliant invention. They used intricately designed power sources, which made the method cost-effective. The unique technology is currently at the peak of interest towards technological advancement in the industry worldwide.

The successful implementation of the project will take Russia a step closer to leadership in the global nanotechnology market. The transition of Russian industrial enterprises to MAO technology will greatly raise the quality level of exported products and enable the creation of hi-tech materials that meet the growing needs of the world market.

"Namely the energy efficiency of MAO can provide a large-scale replacement of traditional surface treatment technologies (such as electroplating, anodizing, and many others) for microarc oxidation, allowing for greater hardness together with low-cost production and environmental safety", - said Constantine Demetriou, managing director of RUSNANO.

This opens up broad marketing opportunities for the project. It is expected that processing lines will be implemented in construction, engineering, instrument-making (consumer electronics), automotive and aircraft industries in Russia and abroad. The total budget of the project will be equal $3.4 million (105 million rubles), of which RUSNANO will finance $1.6 million (50 million rubles). The project will be implemented in the city of Tomsk. Its full capacity output starting with 20 processing lines per year is planned to reach within three years.

Russian Corporation of Nanotechnologies Budgets $1.3 Billion for Nanotechnology Projects in 2010, Expects Another $2.1 Billion by 2012

In accordance with the Decree of the Government of the Russian Federation No 1455-r of October 5, 2009 on the Return of Temporarily Free Funds of State Corporations to the Budget of the Russian Federation, RUSNANO transferred $2,177 billion (66,4 billion rubles) to the bank accounts of the Federal Treasury of the Russian Federation.

According to another Decree of the Government of the Russian Federation No 1454-r of the same date, the transfer of RUSNANO’s free funds to the state budget is carried out on a return basis: it is expected that in 2010-2012 these funds will be transferred back to the Corporation.

The remaining funds available to RUSNANO amount to $1,348 billion (41.15 billion rubles), they will be utilized to finance the Corporation’s investment projects in 2010.

These funds are now temporarily placed in the commercial banks, selected by the closed request for proposals, that ended yesterday, on December 15, 2009. 13 banks, which undergone pre-qualification to meet the requirements established by the Ministry of Finance of the Russian Federation and the Corporation, participated in the closed request for proposals. As a result of this procedure, the temporarily free funds are now placed in the following credit institutions: Uralsib, Bank Saint Petersburg, VTB, Nomos-Bank, Bank of Moscow.

RUSNANO is the abbreviated name of the Russian Corporation of Nanotechnologies. The Russian Corporation of Nanotechnologies (RUSNANO) was established in 2007 by the Federal law № 139-FZ to enable Government policy in the field of Nanotechnology.

To accomplish this task, RUSNANO co-invests in nanotechnology industry projects that have high commercial potential or social benefit. Early-stage investment by RUSNANO lowers the risk of its investment partners from the private sector.

RUSNANO participates in building nanotechnology infrastructure, which includes the nanotechnology centers of excellence, business incubators and early stage investment funds. RUSNANO provides scientific and educational programs that are required for its investment projects to succeed, and also supports the popularization of nanoscience and nanotechnology. RUSNANO selects promising spheres for investment based on longer-term foresight created by the leading Russian and world experts.