DSM to start up China’s biggest PA6 plant in July

16 April 2008 15:51  [Source: ICIS news]

SHANGHAI (ICIS new)--DSM Engineering Plastics plans to start up China’s biggest polyamide (PA6) plant in July, a company executive said late on Wednesday.

 

Located in Jiangyin in the eastern province of Jiangsu, the plant had a nameplate capacity of 50,000 tonnes/year, said Dai Jiaqing, DSM’s south China regional manager.

The unit would get its feedstock caprolactam from a DSM joint-venture company in Nanjing, Dai added.

 

“PA6 is mainly used in food packaging in China,” he said, adding the new plant would reinforce DSM’s leading role in the engineering plastics business.

 

Meanwhile, there were plans to expand DSM’s compounding capacity for engineering plastics at the Jiangyin site by 50% to 55,000 tonnes/year, Jan Waninge, the company’s sales and marketing director, told ICIS news.

 

“We expect global revenue from DSM engineering plastics to increase 10% this year and Asia-Pacific will remain a fast growth engine at [a] 22-25% rate,” he said.

 

China was a very important market with sales retaining an annual two-digit increase, Jos Goessens, global president of the Netherlands-based DSM Engineering Plastics said.

 

“Products from China are mainly supplied to east Asia. However, with the rising raw materials costs, we have to make the production process more efficient while passing part of the cost pressure to our customers,” he added.

 

($1 = €0.63)

 

By: Judith Wang
+65 6780 4359

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