20 September 2010 16:26 [Source: ICIS news]
(Adds paragraphs six through nine. Thirteenth paragraph updated with confirmation that Rhodia Polyamide's force majeure is still in place.)
LONDON (ICIS)--RadiciGroup will invest around €10m ($13m) in new spinning lines for nylon (polyamide) 6 and 6,6 solution-dyed bulked continuous filament (BCF) yarn at its plant at ?xml:namespace>
The investment is an effort to bolster RadiciGroup's market position in the quality-flooring sector, and the new lines will come into operation in the middle of 2011, the company said in a press release.
The Casnigo plant's nameplate capacity currently stands at around 32,000 tonnes/year of BCF yarn, a company source confirmed.
The new lines will increase the plant's nameplate capacity by around 2,000-3,000 tonnes/year and will replace some existing capacity, the source added.
“This is an industry that requires flexibility, quality and customisation capabilities from all operators. Thanks to the new production lines at the Casnigo site and the vertical integration of our nylon 6,6 production chain, which is a hallmark of our group, we will be in the best position to meet these requests,” said RadiciGroup vice-chairman Maurizio Radici.
The news follows Invista’s announcement in June that it intends to halt flooring operations at its plant at
The company was aiming to cease production at the Ostringen site by the end of 2010 and to halt flooring-related operations at
According to a separate RadiciGroup source, Invista’s planned plant closures had created space for new players to enter the carpeting market.
“This year’s announcement by Invista saying that they’re going to shut down the Ostringen plant – carpet is not a big market, but there is space for a new player,” said the source.
The European nylon 6 market has been in tight supply due to difficulties in sourcing the feedstock caprolactam, according to market sources.
Buyers and sellers said that this was because caprolactam prices in
Nylon 6,6 has been in tight supply since the fourth quarter of 2009 because of market consolidation during the global economic downturn of 2008 and 2009. This has led to increased lead times for virgin polymer of around three months for most accounts.
Further tightening the nylon 6,6 market was Rhodia Polyamide's ongoing force majeure, which the company declared in October 2009. A company source confirmed the force majeure is still in place.
Nylon 6,6 demand remained strong due to high consumption from the automotive sector, which has been driven by exports to
($1 = €0.77)Please visit the complete ICIS plants and projects database
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|