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GSFC expanding nylon 6 capacity in India

By: Satnam Singh

October 24, 2012

CALCUTTA, INDIA (Oct. 24, 2 p.m. ET) — State-owned Gujarat State Fertilizers & Chemicals Ltd. of Baroda, India, is expanding its nylon 6 capacity, manufacturing the engineering resin under the brand name Gujlon.

“We have the largest capacity of … nylon 6 in the country and we are further expanding by doubling the manufacturing capacity at our Baroda plant,” said a GSFC official at Indplas’12, held Oct. 5-8 in Calcutta.

The company is investing about $40 million to build a new plant adjoining the existing facility. The expansion will increase GSFC’s capacity for the material to 66 million pounds annually. The main raw material for nylon 6 is caprolactam, which is available from captive capacity.

The plant should begin operating in 2014, the official said.

GSFC cited a widening demand-supply gap in nylon 6 availability in the country. Total annual demand is estimated at around 88 million pounds. While GSFC currently meets much of that demand, the rest is imported.

The company also is targeting the increasing size of the automobile industry and growth in the fishing industry in southern India.