Poland's ZAT, ZAP may pull plug on East Asia capro plant project

28 December 2012 17:19  [Source: ICIS news]

LONDON (ICIS)--Polish chemical producers Zaklady Azoty Tarnow (ZAT) and Zaklady Azotowe Pulawy (ZAP) are “soberly assessing” whether to pursue plans to build a caprolactam (capro) plant in either China or Taiwan with market research indicating the installation's output could face strong Chinese competition, a ZAT source said on Friday.

“New capro plant launches expected in China mean that this investment will not be easy to pull off in a profitable way,” the source said.

“We must take another look at things and decide whether to carry on or perhaps expand our capro capacity at home instead,” he added.

ZAT and ZAP, Poland's only capro producers, have since 2011 been examining the potential for constructing a capro plant with a capacity of 80,000-120,000 tonnes/year in either China or Taiwan using their own patented technology.

ZAT and ZAP's current capro capacities are 101,000 tonnes/year and 70,000 tonnes/year, respectively.

The two companies plan to merge early in the new year to create Grupa Azoty.

ZAT already uses Grupa Azoty as a brand name.

By: Will Conroy
+44 20 8652 3214

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