(Yicai Global) June 28 -- Two Chinese companies have agreed to jointly invest CNY800 million (USD121 million) over the next three years on a carbon fiber project, boosting production in China to meet the country's increasing demand for ultra-strong building materials.

Chemical Fibre and Jinggong Group, a steel structures builder headquartered in Zhejiang province, aim for large-scale production, enabling the partners to become industry leaders, the former said in a statement yesterday.

Carbon fiber is five times as strong as steel, but much lighter. The polymer is mainly used in wind power generators, pressure vessels, rail transit, drones, and robots. China imported 80 percent, 16,000 tons, of its needs last year. Demand is expected to surge to 50,000 tons by 2025.

Under the deal, Jinggong will provide technical support, while Jilin province-based Chemical Fibre will run the production base, which should be ready by the end of this year.

Editor: Emmi Laine