Chinese Construction Company Establishing Plant In Primorsky Krai

Russia’s Far East and Arctic Development Corporation (FEDC) has stated that SBM LLC (Vladivostok) is to create an industrial complex for producing metal structures in Primorsky Krai, which will include a metal structures plant, an industrial park for tenants, and storage sites for finished products.

According to the Russian Unified State Register of Legal Entities, SBM LLC was registered in December 2024. It manufactures concrete products for use in construction and is owned by three Chinese nationals. A total of 60% of the capital is owned by Sun Chunhui, who is also a co-owner of Green Energy LLC, a manufacturer of electric batteries.

Under the agreement with the FEDC, the project will be implemented as part of the Primorye Advanced Development Territory, with investment amounting to ₽1.16 billion (US$14.7 million). This Far East region of Russia borders China.

The project will be implemented in three stages. The launch of the plant, designed to produce more than 3,000 tonnes of structures per year, will take place in 2028. Up to 45% of total production will be frame structures for industrial and warehouse buildings.

Foreign investment into Russia has been booming, mainly from Asian companies, who see opportunities both in replacing exited Western investors and also in taking advantage of Russia’s changing supply routes towards Asia in the face of Western sanctions. The Russian Far East now attracts about 30% of all foreign direct investment into Russia, with companies such as China’s SBM getting on that trend by supplying this growth market with construction materials.

Russia is also facilitating this investment, with the region developing an additional ten industrial parks in the Far East, as well as launching a Far East Stock Exchange.