China Petrochemical Development Corp (CPDC, 中石化) yesterday said that its new polyamide (6) plant in China’s Jiangsu Province is to begin production by the end of this year.
“That would boost the company’s annual [polyamide (6)] capacity to 136,000 tonnes from 36,000 tonnes this year,” CPDC chairman Lin Ko-ming (林克銘) said at a news conference in Taipei.
polyamide (6), also known as PA6, is used in a wide range of products, such as textiles, lightweight plastics car components and food packaging film.
CPDC, the nation’s only supplier of caprolactam, is also building a new innovation center in Kaohsiung’s Ciaotou District (橋頭).
The facility is to conduct research and development of specialty chemicals in the next three to five years as part of the company’s plan to manufacture engineering plastics, Lin said.
This is in line with the company’s long-term strategy to pursue vertical integration, as caprolactam is a key material in the production of polyamide (6) and engineering plastics, he said.
It would also help the company build a better product portfolio by reducing its reliance on caprolactam and acrylonitrile, which account for about 60 percent and 30 percent respectively of total sales.
The company aims to lift revenue contribution from polyamide (6), which offers higher profit margins, to more than 10 percent, the company said.
In addition, CPDC is aiming to expand its presence in India through an alliance with state-run CPC Corp, Taiwan (台灣中油) and several local petrochemical manufacturers.
“Our investment policy for the Chinese market appears to be too conservative compared with our peers, but I think this time we will not fall behind [in India],” Lin said.
With an eye on Southeast Asia’s rapidly growing property markets, the company is evaluating the feasibility of launching land development projects in the Philippines, Indonesia and Vietnam.
CPDC is a major unit of the Core Pacific Group (威京集團), which is also involved in the real-estate and shopping mall business, including the Core Pacific City Mall (京華城).
The company yesterday gave a positive business outlook for the first half of this year, saying fluctuations in global chemicals prices should not be as drastic as the same period last year.
Caprolactam prices are expected to hover at about US$2,000 per tonne in the first half, while acrylonitrile prices are forecast to stay near US$1,900 per tonne, CPDC president Janson Yu (余建松) told the Taipei Times.
This story has been updated since it was first published.
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