Taiwan’s CPDC resumes contract caprolactam supply to Li Peng-report

15 August 2012 07:49  [Source: ICIS news]

SINGAPORE (ICIS)--Taiwan’s China Petrochemical Development Corp (CPDC) has decided to resume contract supply of caprolactam (capro) to Li Peng Enterprise after a previous cancellation, a company source said on Wednesday.

Li Peng is the largest nylon maker in Taiwan, with an annual production capacity of 400,000 tonnes, according to ICIS data.

CPDC has cancelled its contract supply of capro to Li Peng since February this year as the latter had breached the agreement by taking 80% less volumes than contracted in November 2011, according to earlier report from ICIS.

Taiwanese newspapers reported on Wednesday, quoting CPDC general manager Wang Keshun, that the company’s issue with Li Peng was resolved and that there will be no changes in the terms, pricing formula and volume of the supply contract.

Details of the reconciliation contract will be confirmed on 16 August after a meeting between the two companies, Wang was quoted as saying.

CPDC accounts for around 15% of Li Peng’s capro supply, according to market players.

Additional reporting by Junie Lin.

By: Dolly Wu
+65 6780 4359

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