16 January 2004 01:03 [Source: ICIS news]
SALVADOR, Brazil (CNI)--Dutch fibres group Acordis is advancing plans to expand its polyester tyre yarn production in Brazil on the strength of an improving South American market, CNI was informed Thursday.
Antonio Saraiva, general manager of Cobafi, Acordis’ Brazilian subsidiary, said the project at Camacari in northeast Brazil was put on hold for several months because of a downturn in the market.
"But now we have all the right conditions to get approval for the project," he told CNI.
Acordis has rekindled the project following improvements in South American demand, boosted by a trend among tyre manufacturers to transfer production from the US to lower-cost locations in South America and Asia, he said.
Acordis is expected to give its final approval for the project in mid-February, and the new capacity is expected onstream in fourth quarter this year, Saraiva said.
The size of the expansion has not yet been defined, but Cobafi’s tyre yarn capacity at the Camacari chemicals complex is expected to rise by some 40% to 10 000 tonne/year from 7000 tonne/year.
Saraiva estimates the investment cost, including modernisation of the yarn-to-fabric conversion facilities, at some Euro5.8m ($7.3m). The modernisation work is already underway and is expected to be completed in April or May, he said.
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections