The government plans to invest £20m to encourage UK manufacturers to use high-tech carbon fibre-based composite materials to boost competition with international rivals.
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The strong, lightweight materials can used to make electronic devices such as mobile phones, aircraft components and sports equipment.
The government funding will go to manufacturers that make use of the materials in new products, particularly those made in high-volume using automated production lines.
According to employers organisation the CBI, businesses need to adapt quickly to meet the opportunities offered by new technology such as composite materials.