DSM Nanjing Chemical Co., Ltd (DNCC), jointly owned by DSM, Sinopec Nanjing Chemical Industry Company and Jiangsu Guoxin Group, today announced that it has started the expansion project to double its caprolactam capacity to 400 kt, making it the largest caprolactam plant in the world. The investment will be approximately USD300 million.The new facility is to be located at the existing DNCC manufacturing site in Nanjing Yanjiang Industrial Development Zone and is expected to come on stream in Q3 of 2013 and be operating at full capacity in 2014.
As the raw material for the synthetic fibre polyamide (Nylon 6), caprolactam has a wide range of applications in engineering plastics, films, textiles, carpets and tyre cords. The expansion is in order to meet the continued strong demand for caprolactam in all application segments in High Growth Economies, especially in Asia-Pacific. Sustainable and innovative solutions are an integral part of the production process of the new facility. With these innovative technologies, the facility will reduce energy consumption by 30% while doubling capacity from 200 kt to 400 kt per year.
Ed Sheu, President and CEO of DSM Fibre Intermediates, commented: “DSM Fibre Intermediates is leveraging its unique competence in sustainability and innovation to address the opportunities in China. Together with our joint venture partners, we are well positioned to further accelerate our growth with this expansion.”
Yuan Jianning, Sinopec Nanjing Chemical Industry Company Executive Board Member, commented: “Sinopec Nanjing Chemical Industry Company will take this opportunity to buildthe world’s largest caprolactam plant in capacity together with DSM. In the context of the Twelfth National Five-Year Plan, we are speeding up our development in terms of orientation with people andthe environment, improving our technology and focusing on upgrading the industry.”
Weiming Jiang, President of DSM China, said: “This investment, in conjunction with the relocation of DSM Fibre Intermediates’ global headquarters from Europe to Shanghai, shows our great commitment towards the High Growth Economies. It perfectly fits our strategy – DSM in motion: driving focused growth. This will definitely contribute to DSM’s 2015 target of doubling its sales in China compared to 2010 to over USD3 billion.”
Li Chunguang, Deputy General Manager of Sinopec, commented: “The new facility marks further co-operation by both parties and is another milestone of our successful long-term partnership with DSM. With our joint efforts, we continue to commit and contribute to a low carbon and sustainable chemical industry in China.”
