There is a new movement in China to produce carbon fiber domestically. According to a local report, Zhongfu Shenying Carbon Fiber Co., Ltd just started the primary construction of the project for polyacrylonitrile (PAN)- based carbon fiber manufacturing, with an annual production capacity of 3,000 tons at Lianyungang Economic & Technological Development Zone (Jiangsu). It is scheduled for completion by the end of 2008. Zhongfu Shenying Carbon Fiber Co., Ltd is a new company jointly established by Lianyungang Yingyou Group Co., Ltd., Jiangsu Aoshen Group Co., Ltd. and China Composites Group Ltd.

The total amount of investment for this project, which is due for completion by the end of 2010, is 3 billion yuan, and it is expected to become the biggest carbon fiber production base in China with 10,000 tons capacity.

Carbon fibers have been used in a wide variety of industries such as air/space, military, traffic and medical. China anticipates greater demand for carbon fiber for wind turbine generator material, which is categorized as a priority development incentive item of the textile area in the 11th Five-Year Plan.

Japanese companies are currently accounting for most PAN-based carbon fiber production around the world, but the degree of completion of Chinese PAN-based carbon fiber technology and how well it can be applied to commercial manufacturing in the future have been attracting a great deal of attention.