Thailand's Ube Chems halts capro exports to feed own nylon plant

19 January 2011 05:43  [Source: ICIS news]

SINGAPORE (ICIS)--Thailand-based Ube Chemicals (Asia) has halted exports from its 110,000 tonne/year caprolactam plant, as output will be fully earmarked for captive use of its expanded nylon plant and for domestic sales, a company source said on Wednesday.

Ube Chemicals (Asia) is the merged Thai Caprolactam and Ube Nylon (Thailand) - subsidiaries of Japan's Ube Industries.

It stopped caprolactam exports since late last year, when its new 50,000 tonne/year engineering nylon 6 plant in Rayong started up, which effectively raised its nylon capacity to 75,000 tonnes/year, said the source.

Caprolactam is the main feedstock for nylon production.

Ube Chemicals (Asia) is the sole caprolactam producer in Thailand, with annual exports to China pegged at around 24,000-35,000 tonnes, according to China Customs data.

Meanwhile, the company hopes to ramp up to full production at its 110,000 tonne/year caprolactam plant this week after a minor turnaround, the company source said.

The plant was shut for about a week in the second week of January, the source said.

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By: Junie Lin

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