06 March 2013 16:56 [Source: ICIS news]
LONDON (ICIS)--Poland's Zaklady Azotowe Pulawy (ZAP) and its owner, chemical producer Zaklady Azoty Tarnow (ZAT), are less likely now than they were a year ago to go ahead with the construction of a caprolactam (capro) plant in either China or Taiwan, ZAP said on Wednesday.
“In theory, there is still the possibility that this investment could go ahead, and we still have contact with Chinese partners interested in a joint venture, but today's market environment is not conducive to an investment decision,” ZAP added in an update on its investment outlook.
If constructed, the plant would face stiff competition, with 600,000 tonnes of new capro capacity brought onstream in China during the past year alone, the company said.
Another negative factor was the rise in cost of feedstock benzene that was seen during the second half of last year, it added.
ZAP and ZAT, Poland's only capro producers, havebeen examining the potential for constructing a capro plant with a capacity of 80,000-120,000 tonnes/year in either China or Taiwan since 2011.
The current capro capacities of ZAP and ZAT are 70,000 tonnes/year and 101,000 tonnes/year, respectively.
ZAT has switched to using Grupa Azoty – the name of a group it is forming having acquired a majority stake in ZAP – as a brand name.
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