FEI deal opens up Russian market

The Pilot Scientific and Technical Center of Excellence for Nanotechnology Development was opened last week in Moscow to provide a research center for Russian scientists, both industrial and academic, working in nanotechnology.

FEI sold two electron microscopes to the new research center. The company's Russian sales agent also supplied the center with a dual-beam scope.

While this is not an unusually large sale for Hillsboro-headquartered FEI, the deal is extremely important, said finance chief Ray Link.

"It's like having a customer display center at the highest possible level in Russia," he said. "People will be using our tools and then going back to their companies and universities," and presumably recommending FEI tools for their own operations.

The center is the most recent evidence of Russia's commitment to nanotechnology development. It is estimated that Russia will have invested more than $400 million in nanotech by next year -- a big increase for the country, though still less than the United States, where government agencies have spent at least $2.6 billion over the past two years on nanotech research.

But Russia is one of the top five global leaders in nanotech, along with the United States, China, Japan and Switzerland, said Mark Modzelewski of the NanoBusiness Alliance.

Nanotech investments in Russia, China, India and Brazil are growing very quickly, outpacing growth rates in Europe, Japan and the United States, which have been the leading regions for nanotech development.

The presence of FEI tools in Russia's top nanotech research center is a great recommendation for sales to other national and academic research centers, Link said. Besides Russia, FEI has sold its tools to national research centers in India and Brazil.

Worldwide, government nanotech development is expected to reach $5 billion this year. For the first time, private corporate investment is expected to outpace government investment, reaching an estimated $6 billion this year, worldwide.

Source: The Portland Business Journal