Zaklady Azotowe Tarnow mulls buying polyamide 6 producer

04 September 2009 12:33  [Source: ICIS news]

PRAGUE (ICIS news)--Zaklady Azotowe Tarnow (ZAT) is considering purchasing a Europe-based polyamide 6 producer instead of increasing its own capacity, as the financial crisis has brought about new acquisition possibilities, the Polish company said on Friday.

The company’s plan to spend zloty (Zl) 175m ($60.5m, €42.3m) on building a “polyamide II” facility, which would add 55,000 tonnes/year to its existing polyamide 6 capacity of 22,750 tonnes/year, would remain indefinitely postponed until it reaches a decision on a possible acquisition, ZAT said.

ZAT added that it was also considering new options regarding its proposed construction of a new polyoxymethylene (POM) plant, which would add 80,000 tonnes/year to its existing 14,000 tonnes/year capacity.

A possible POM joint venture in Russia was now being considered along with a venture in the Middle East, ZAT said.

Earlier on Friday, ZAT reported a second-quarter net loss of Zl0.4m, compared with a net profit of Zl14.2m in the same period a year earlier.

The company’s management expected the financial outlook to only improve in the first half of next year, with its caprolactam and construction plastics segments still suffering from slowdowns in end-user industries, such as automobiles and electronics.

ZAT said it was shifting its caprolactam and construction plastic exports to Asia, but the premium on available European prices was decreasing.

($1 = Zl2.89/€1 = Zl4.13)

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By: Will Conroy
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