Poland’s Grupa Azoty ‘has scrapped east Asia capro project’

09 July 2013 13:23  [Source: ICIS news]

LONDON (ICIS)--The largest Polish chemical group, Grupa Azoty, has scrapped plans to build caprolactam (capro) production capacity in China or Taiwan but is exploring the alternative of building up its capro and/or polyamide 6 (nylon 6) output in Poland, a company source said on Tuesday.

Grupa Azoty was put off by a large-scale increase in China’s capro capacity, with some 600,000 tonnes/year brought on stream in the country last year alone, the source added.

The source confirmed the project would not go ahead, shortly after Grupa Azoty CEO Pawel Jarczewski announced the state-controlled group had started work on a long-term investment plan.

The plan, to be readied within two or three months, should identify investment priorities, Jarczewski said.

The potential project to construct capro capacity in China was originally conceived as a joint venture between Zaklady Azoty Tarnow (ZAT) and Zaklady Azotowe Pulawy (ZAP). However, at the start of this year ZAT took over ZAP, following on from its takeover and consolidation of other Polish chemical producers, and launched the Grupa Azoty group, with ZAP as a subsidiary.

ZAT has a capro capacity of 101,000 tonnes/year, while ZAP’s capacity stands at 70,000 tonnes/year. No other company in Poland produces capro.

By: Will Conroy
+44 20 8652 3214

AddThis Social Bookmark Button

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.

Printer Friendly

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