China's carbon fiber composite industry reports annual capacity of 4,000 to 5,000 metric tons, while market demand is at least twice as much. But capacity is less of an issue compared to high-end applications, according to experts.

Tang Jianmao, a director at the China Materials Research Society of Beijing, told China's National Business Daily that the capacity will receive a boost during 2011-2015 to meet market demand.

Since carbon fiber has been a hot topic, Tang said, domestic investors have shown a high level of interest in this field. However, money will not necessarily buy technological advancement, he advised.

Currently, there are about a dozen of companies dedicated to carbon fiber composite manufacturing in China. Hunan Oya Carbon Co. Ltd. is one of them.

Oya's general manager Zhou Yujun said his company had 57 million yuan (US$9 million) in 2010 sales, despite the sluggish European market. He expected sales to grow to 80 million yuan (US$12 million) this year and 150 million yuan (US$23 million) in 2013.

The company supplies carbon fiber composites to carmakers like BMW, Lamborghini and Ferrari, as well as aircraft manufacturers.

Its high-value added products for high-end clients are very rewarding, with profitability higher than 80 percent.

Zhou said he hopes the Chinese government will support the development of the carbon fiber industry, which will help other sectors -- such as the booming auto industry - become greener and more competitive.