Import substitution
Reduce dependence on foreign supply and currency transactions.
investment project · Russia
YARN WHICH PROTECTS PEOPLE english version of website
A project to launch woven and knitted yarn production from synthetic and man-made fibres. A modern technology platform, a broad range of compositions and a focus on import substitution.
NOVATEX LLC · indicative launch — Q4 2028 · Data current as of 28.09.2026
1,000tonnes of yarn per year
planned capacity
planned capacity
1,957RUB million
including raw materials
including raw materials
SEZAlabuga SEZ
Republic of Tatarstan
Republic of Tatarstan
Q4 2028Q4 2028
indicative launch
indicative launch
01 · project
A technology platform for the Russian market
More than a new line: an industrial platform for producers of protective fabrics and technical textiles.
The project will launch production in Russia of woven and knitted yarn from man-made and synthetic fibres. Planned capacity is 1,000 tonnes of yarn per year, with room to increase output on the same platform.
The strategic objective is to address demand in the Russian market for aramid and other flame-resistant yarn, much of which is currently imported and used in protective clothing for the energy sector, metallurgy, emergency services and defence.
Modern equipment, consistent raw materials and a broad range of chemical compositions and yarn counts create an assortment for new applications, including flame-resistant curtains, upholstery and other technical-textile solutions.
Broad range
Combinations of aramid, modacrylic, FR viscose, polyester and metallised fibres.
Technical textiles
Protective clothing, flame-resistant curtains, upholstery and other applications.
product framework
Two core references. Room to expand.
02 · products
Products planned for production by NOVATEX LLC
Import substitution in practice: the programme focuses on products that are largely imported and included in the Russian critical-products list.
The planned production will focus on blended single-ply and two-ply yarn made by combining different chemical fibres — synthetic and man-made — including aramid, modacrylic, FR viscose, FR polyester, metallised antistatic and other fibres. The yarn is intended primarily for flame-resistant fabrics and knitted products, including protective clothing for oil and gas, metallurgy, welding, fire safety and other applications.
The planned products are included in the Russian critical-products list under Order No. 672 of the Ministry of Industry and Trade dated 17 February 2026, covering 2026 and the planned period 2027–2028 (product code 13.10.81.001.AG). Other products are included in the OKPD-2 codes for critical components. The source documents should be checked against the current regulatory wording before publication.
Sources: https://bod.frprf.ru/public/documents/perechen-kriticheskojj-produkcii-legkojj-promyshlennosti and https://gisp.gov.ru/nmp/upload/docs/4ce4f42e8b1362416c04a17655e7544230050c4057e8b61d3c2c440cccf7ab50.pdf
Aramid yarn
Two-ply woven yarn 32/2: 93% meta-aramid, 5% para-aramid and 2% metallised antistatic fibre; bobbin weight 1.7 kg (parameters may be adjusted).
Modacrylic / FR viscose yarn
Single-ply / two-ply knitted yarn 35/2: 70% modacrylic, 28% FR viscose and 2% metallised antistatic fibre; bobbin weight 1.7 kg (parameters may be adjusted).
Other yarn compositions
Yarn in various counts and compositions, using aramid, modacrylic, FR viscose, FR polyester, antistatic, polyamide and other fibres.
02 · market
A sizeable import segment with a clear entry point
The market is established: the project addresses a visible import segment and a specific shortage of specialty compositions.
According to The Brainy Insights, the global yarn market may reach USD 57.8 billion by 2030 at a CAGR of 5.9%. According to BusinesStat data commissioned by NOVATEX LLC, imports of synthetic and man-made fibre yarn into Russia in 2024 amounted to 29.9 million kilograms worth USD 145.4 million.
Across four core product categories in the planned production programme, the accessible import volume in 2024 exceeded 7 million kilograms. Equipment flexibility allows the product range to expand without dependence on one narrow application.
29.9million kg
imports into Russia · 2024
imports into Russia · 2024
import dynamics
Total import volume, thousand tonnes
38 77919 3900
2023
2024
2025
2026
2027
Unit: thousand tonnes. Years and values are taken from the “Total” row in the table below.
source data table
Imports of synthetic and man-made fibre yarn into Russia
| Segment, thousand tonnes | 2023 | 2024 | 2025 | 2026 | 2027 |
|---|---|---|---|---|---|
| Man-made fibres | 1 600 | 1 319 | 1 327 | 1 339 | 1 355 |
| Synthetic <85% | 13 779 | 13 254 | 13 294 | 13 359 | 13 433 |
| Synthetic ≥85% | 23 400 | 15 346 | 15 468 | 15 643 | 15 855 |
| Total | 38 779 | 29 919 | 30 089 | 30 341 | 30 643 |
Presentation reference: thousand tonnes. The chart above uses the “Total” row in this table and updates with it.
03 · location
Alabuga SEZ — infrastructure and industrial environment
The location offers more than floor space: logistics, talent, support measures and an industrial ecosystem.
The production site is planned for the Alabuga Special Economic Zone, an industrial-production SEZ in the Republic of Tatarstan. The location combines road and rail logistics, an SEZ customs post, workforce infrastructure and proximity to Kazan.
Residents may benefit from support measures and tax incentives. NOVATEX LLC obtained resident status on 25 January 2023 following reviews by the SEZ and economic-development authorities. Launch timing and financing sources require confirmation under the current schedule.
Logistics
Road and rail connections and an SEZ customs post.
Talent
An education centre and training for engineering and production roles.
Support
SEZ residency and industrial-project support measures available under the applicable framework.
08 · status and support
SEZ residency and industrial support measures
Status and support instruments must be updated together with the financing schedule.
On January 25, 2023, the limited liability company NOVATEX, after undergoing an examination by the special economic zone of the industrial-production type “Alabuga”, as well as by the Ministry of Economic Development of the Russian Federation (the Ministry of Economy of the Republic of Tatarstan), and after the Expert Council supported the project of LLC NOVATEX, obtained the status of a resident of the special economic zone of the industrial-production type “Alabuga”. The benefits of a SEZ resident that are particularly attractive to LLC NOVATEX
The rates of import VAT and duties on equipment imported into the territory of a special economic zone, as well as, under certain circumstances (accounting and other documentary records), on raw materials that are subsequently processed within the territory of the special economic zone, are 0%. Residents of the SEZ are provided with guarantees from the Russian state in accordance with Federal Law No. 116-FZ dated July 22, 2005.
There is a possibility that LLC “NOVATEX” may lose its status as a resident of the special economic zone of the industrial and manufacturing type due to failure to meet the production launch deadlines caused by delays in obtaining funding. If LLC “NOVATEX” loses its SEZ resident status, it will be necessary to re-prepare the documentation, have the application approved by the expert council, and sign a new agreement with the Ministry of Economy of the Republic of Tatarstan and the SEZ.
This also requires confirmation of the investor’s funding sources or co-financing, as well as financing under a structure involving a loan from the Industrial Development Fund (949 million rubles at 5% or 3% if a bank guarantee is obtained for the entire amount including interest).
For the FRP, the bank, and also for the Expert Council of JSC “SEZ PPP ‘Alabuga’” and the Ministry of Economic Development of the Russian Federation (the Ministry of Economy of the Republic of Tatarstan) to make a decision not to revoke the special economic zone resident status/to reinstate the special economic zone resident status for NOVATEX LLC, it will be necessary to provide data on the legal entities providing financing/co-financing and guarantees, including before undergoing the main expert reviews to make new decisions. Funding may be confirmed by an account statement, contractual documentation obligating to provide funding in the amount and within the timeframe required by the project’s schedule, and, upon agreement, other forms of confirmation that may be acceptable to the FRP, the bank, experts of JSC “SEZ PPP ‘Alabuga’”, and the Ministry of Economic Development of the Russian Federation (the Ministry of Economy of the Republic of Tatarstan). In some cases, it is permissible to agree with the FRP on other methods of confirmation.
The NOVATEX LLC project to organize the production of woven and knitted yarn from synthetic and artificial fibers has successfully passed the FRP’s expert reviews three times, received approval from the expert council, and signed three loan agreements for 949 million rubles, with the principal debt payment deferred for 3 years; the first loan agreement was for a 1% interest rate, and the subsequent ones were for 3%. In addition, the company obtained bank decisions to provide a bank guarantee for the entire loan amount with interest of up to 1,070 million rubles at a 2% rate, as well as bank loans. For example, in the decision of the credit committee of Alfa-Bank JSC, effective until April 2025, in addition to the decision to provide a bank guarantee in the amount of 1,070 million rubles for NOVATEX LLC, it was decided to provide loans in the amount of 225 million rubles (150 million rubles of which for 60 months at preferential rates under the programs PP 1764+Pskov also provides for an additional credit limit in excess of 225 million rubles for an additional 200 million rubles in the draft amendments to the bank’s decision in force at that time.
Profit-tax incentive
SEZ residents benefit from a reduced profit-tax rate: 2% for five years, then 7% for five years, followed by 15.5%, without an increase.
0% import duty and VAT on equipment
Import VAT and customs duty rates for equipment brought by an SEZ resident into the special economic zone are 0%, subject to the required customs and other procedures.
Other SEZ-resident incentives
Exemption from property tax; exemption from land tax; zero transport-tax rate.
04 · technology
Designed for different compositions and yarn counts
One technology platform can scale with the product range and the market.
The spinning-production design is at an advanced stage. Zones are separated by aramid and other compositions and by process stage: fibre preparation, twisted-yarn production, steaming and downstream treatment.
The main equipment was selected after reviewing European and Asian plants and optimising the process chain. The project supply includes installation, commissioning, warranty terms, consumables and initial spare parts.
Fibre preparation
Separate lines and process stages for different compositions and end uses.
Twisting and steaming
Production of single-ply and two-ply yarn.
Quality control
Equipment, consumables and service included in the project supply.
06 · financing
The deal structure follows the project's actual funding need
The figures below are indicative as of the update date, not a promise of financial performance.
The project considers full or partial financing, co-financing with the Industrial Development Fund and a bank, the acquisition of an equity interest and a contribution to the company's property. The specific structure depends on the amount and form of financing, guarantees, timing and the parties' agreements.
Under full financing, the indicative pre-launch cost is RUB 1,606.3 million; including raw materials for two launch quarters, the figure is RUB 1,957 million. The combined structure includes an indicative RUB 949 million IDF loan; rate, guarantee and timing terms require a new assessment.
financing structure
Financing volume table
| Required planned investment | Previously invested by NOVATEX LLC and the group | Other planned financing | Partner / co-investor funds contributed to company assets; indicative repayment period through dividends under six years | Equity participation |
|---|---|---|---|---|
| RUB 1,957 million | RUB 39 million | — | RUB 1,957 million* | Contractual terms (see above), from 50% for the investor |
| — | RUB 39 million | RUB 949 million — IDF loan at 5% or 3% with a bank guarantee at 2%; principal repayment starts in year four | from RUB 741.2 million (RUB 1,091.8 million including raw-material purchases), subject to timing shift* | 50.01% current NOVATEX LLC beneficiaries and up to 49.99% for the investor |
| — | RUB 39 million | RUB 949 million — IDF loan at 5% or 3% with a bank guarantee at 2%; principal repayment starts in year four | Lower investment when combined with loans, but debt service, timing, lending programmes, limits, security and additional leverage must be considered | 70% current NOVATEX LLC beneficiaries and from 30% for the investor |
* The amount may be adjusted after the design and working documentation is ready; funding may be provided within one or two launch quarters for raw-material purchases.
05 · financial model
Key financial-model indicators
Launch budget, NPV, IRR and payback periods are indicative calculations.
NOVATEX LLC has received three approvals from the Industrial Development Fund (IDF) and signed loan agreements for RUB 949 million for 60 months. The previous loan agreement signed by NOVATEX LLC with the IDF, at an annual rate of 3% and with a 36-month principal-payment deferral, expired on 28 June 2025. The agreement required a bank guarantee. The decision of Alfa-Bank JSC to issue a RUB 1,070 million bank guarantee for 61 months at an annual rate of 2% expired on 5 April 2025 when the extended decision expired.
Therefore, if investor financing is combined with the IDF loan, a new application and a new IDF review will be required. If the IDF decision is positive, a new IDF loan agreement at 3% is expected, secured by an irrevocable, unconditional bank guarantee covering the full amount including interest and extending at least one month beyond the term.
The project's main planned financial indicators as of 30 July 2026, including previously incurred costs and a combined structure with a RUB 949 million IDF loan to NOVATEX LLC and RUB 1,091.8 million from the investor(s), are considered normal for industrial investment projects in Russia. The indicators may change if planned exchange rates change.
FULL BUDGET
INCLUDING RAW MATERIALS1,957RUB million
BEFORE LAUNCH
EXCLUDING RAW MATERIALS1,606.3RUB million
IDF
LOAN949RUB million · indicative
CO-INVESTOR
REFERENCE1,091.8RUB million · scenario
15.4%IRR
1,427.9NPV, RUB million
6.60Simple payback period, years
6.79Discounted payback period, years
Financing option
Under full financing of the NOVATEX LLC spinning-production project, the main advantages are faster decision-making and transaction execution, less dependence on banks and funds, and the possibility of returning the investment through dividends or by returning funds contributed to the company's property without increasing its charter capital; the structure requires separate legal and financial documentation.
The investor receives a larger equity participation than under partial financing. Other financing structures may also be considered.
09 · full-financing roadmap
Roadmap for full investor financing
Under full financing by the investor of RUB 1,957 million before production launch, funds are earmarked as described in the relevant section. Funds may be provided in stages under a schedule with tolerances incorporated into the transaction documents.
Key stages
Deal · launch · scale-up
7 checkpointsProposed sequence of actions for the investment transaction
01 · stage
Expression of interest in the NOVATEX LLC investment project
Confirm the investor's interest after the response and discussions; define the parties' objectives and tasks for the joint project, find compromises and reach the main agreements.
01
02 · stage
Initial negotiations and transaction structuring
Jointly define the main terms, implementation timeline, sequence of actions, working group and people responsible for structuring the transaction.
02
03 · stage
Legal basis of the “LEGAL” transaction and structuring
Prepare the legal rationale and the most efficient mechanics in terms of legal compliance and minimising the cost of providing funds, including where the funds are non-refundable.
03
04 · stage
Powers and responsibilities of the parties
Define each party's powers, the approval procedure for key decisions and the parties' responsibilities.
04
05 · stage
Transaction structuring
Structure the transaction and prepare the contractual, governing and regulatory documents and amendments to them.
05
06 · stage
Execution of transaction documents
Execute the contractual, governing and regulatory documents of NOVATEX LLC with the investor's entities, including any amendments.
06
07 · stage
Funding provided and operations begin
The investor transfers the funds; production launch and operations proceed under the agreed schedule.
07
10 · co-financing roadmap
Roadmap for combined investor financing (co-financing)
Key stages
Deal · launch · scale-up
12 checkpointsProposed sequence of actions for the investment transaction
01 · stage
Expression of interest in the NOVATEX LLC investment project
Confirm the investor's interest after the response and discussions; define the parties' objectives and tasks for the joint project, find compromises and reach the main agreements.
01
02 · stage
Investor and investor-entity documents
Provide the requested information about the investor entities providing financing in exchange for an equity interest and sign the documents permitting use of the information in submissions to the IDF and banks, including bank guarantees or loans where applicable.
02
03 · stage
New NOVATEX LLC application to the IDF and, if required, to a bank
NOVATEX LLC submits new applications to the Industrial Development Fund and banks, completes preliminary and financial and legal assessments, and confirms compliance with IDF and bank requirements. The investor provides documents on its legal entities and ultimate beneficial owners when requested by NOVATEX LLC.
03
04 · stage
Initial negotiations and transaction structuring
NOVATEX LLC and the investor jointly define the main terms, implementation timeline, sequence of actions, working group and people responsible for structuring the transaction.
04
05 · stage
IDF review, new stages and document submission
NOVATEX LLC takes the application through the IDF intake and comprehensive review, including the financial model, business plan, assumptions, letters and supporting documents. The bank reviews project documents and investor documents through its credit, risk, legal and other teams.
05
06 · stage
Legal basis of the “LEGAL” transaction and structuring
Prepare the legal rationale for the transaction between NOVATEX LLC and the investor's entities, selecting efficient mechanics for legal compliance and minimising the cost of providing funds, including where the funds are non-refundable.
06
07 · stage
IDF expert council and bank credit committee approval
NOVATEX LLC's application is considered by the IDF expert council. If approved, the parties begin signing a RUB 949 million loan agreement: 3% when a bank guarantee is provided to the IDF, or 5% without a bank guarantee. The principal-payment deferral follows the terms of earlier NOVATEX LLC agreements with the IDF. Where a bank guarantee is used, the bank credit committee also reviews the transaction.
07
08 · stage
Preparation to sign the IDF and bank agreements
Complete the remaining IDF checks, including legal-clearance reviews; prepare and submit the project and company documents; sign the IDF loan agreement; and prepare the bank documentation where the bank participates in the structure.
08
09 · stage
Powers and responsibilities of the parties
Define the powers of NOVATEX LLC and the investor, the approval procedure for key decisions and the parties' responsibilities. This stage may be completed earlier.
09
10 · stage
Transaction structuring
Structure the transaction between NOVATEX LLC and the investor and prepare the contractual, governing and regulatory documents and amendments. This stage may be completed earlier.
10
11 · stage
Execution of transaction documents
Execute the contractual, governing and regulatory documents and any amendments to them.
11
12 · stage
Funding for the NOVATEX LLC yarn-production project
The investor entities provide funds to NOVATEX LLC; the parties sign agreements with the bank, including guarantees from investor entities. If the bank does not participate, guarantee documentation is signed with the IDF. The bank issues the guarantee, it is submitted to the IDF, the IDF funds are received, and the project then follows the NOVATEX LLC schedule from equipment prepayment through the remaining stages.
12
12 · current situation
A well-prepared project with a decision window
The long-term site and prepared solutions are in place; the next requirement is agreed financing.
The presentation states that the long-term lease runs until 31 December 2054 and that the rent burden was temporarily reduced from 1 July 2025. The indicative investor decision date was 1 September 2026, subject to preparing an IDF application. The indicative launch is Q4 2028.
The project is positioned as an import-substitution initiative ready for further work with the IDF, the Ministry of Industry and Trade, the Ministry of Economic Development, the Chamber of Commerce and Industry, the SEZ and banks. All dates and statuses require confirmation against current documents.
12 · contacts
Contact details for enquiries
Project lead for the production of woven and knitted yarn from synthetic and man-made fibres.
Timur Olegovich Andreev — CEO and co-founder of NOVATEX LLC.
Mobile: +7 (985) 725-22-22 · Telegram: @timurandreev77 Mobile: +7 (901) 725-22-11 Email: at@novatex.pro
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