The Ministry of Industry and Information Technology (MIIT) published the 12th Five-Year Plan for the new materials sector, targeting total output value of two trillion yuan by 2015, with annual growth rate of more than 25 percent, reports Xinhua.net, citing the ministry.

The new materials industry recorded total output value of more than 650 billion yuan in 2010, an increase of 20 percent from 2005.

According to the plan, major new materials enterprises will have to set aside five percent of their annual revenue on research expenses.

China intends to create 10 leading new materials enterprises possessing core competitive advantages, with sales revenue of more than 15 billion yuan, and another 20 major companies with sales revenue of more than five billion yuan.

The country aims to achieve the industrialization and economies of scale in the carboform, titanium alloy, corrosion resistant steel, energy storage materials, semiconducting materials, butyl rubber, and makrolan sectors.

During the five-year period, China will focus on the development of the special metal functional materials, high-end metal structure materials, advanced polymer materials, new non-metallic inorganic materials, high-performance compound materials, and frontier new materials sectors.

According to an insider at the MIIT, China has insufficient capabilities in the areas of new materials research and innovation, and faces difficulties in rolling out related applications.