Poland's Grupa Azoty investing $104 million in new nylon 6 plant

Richard Higgs
EUROPEAN PLASTICS NEWS

Published: May 23, 2014 10:45 am ET
Updated: May 23, 2014 10:49 am ET

Related to this story

Topics Materials, Materials Suppliers, Europe

Polish chemicals producer Grupa Azoty SA is investing almost 77 million euros ($104.9 million) to boost its plastics capacity with the construction of new plant with a capacity of 80,000 metric tons of nylon 6 per year, to be in service by 2016.

The new unit will be built alongside the group’s existing 45,000 metric tons per year capacity nylon 6 plant at its plastics division complex on a 8.6-acre site at the SEZ in Tarnów, Poland. The project is part of overall group investment of over 110 million euros ($149.9 million) to expand both its fertilizer and plastics segments creating 110 jobs, Azoty officials said in an announcement.

Azoty decided to boost its nylon 6 output in response to growing demand in Poland for plastics from the automotive and other sectors employing structural fibers.  In the future, the group plans “to focus more on downstream products by increasing production volumes of higher value-added plastics,” explained new group CEO Witold Szczypiński.

Azoty is responding to demand from small and medium sized firms in Poland for locally sourced nylons and composites. The group aims to become a key regional supplier of these ‘semi products,’ it said. 

There will also be a shift in export markets for the plastics division from Asia to Europe, he added. Global growth for polyamide today stands at around 3.5 percent a year.

Another factor behind Azoty’s investment is the consolidation of its production of the nylon intermediate caprolactam following a sudden change in the global market for the product.

Last year, the group, along with other European producers suffered a substantial loss on its caprolactam production. The Polish group recorded a 17 percent drop in sales of the feedstock product in 2013, which tipped its plastics divison into the red to the tune of 26 million euros ($35.4 million).

In the past, the caprolactam producer has exported the product to China but overcapacity there is reported to have flooded the market, and Azoty is said to have dropped plans to build a plant for the feedstock there.

Grupa Azoty, Europe’s fifth ranked producer of nylon 6, is understood to have a caprolactam production capacity of 170,000 metric tons per year. The plastics division product portfolio also includes polyoxymethylene (POM), nylon 6/6, polypropylene and PBT. It also operates another subsidiary, ATT Polymers in Guben, Germany.


Comments

Poland's Grupa Azoty investing $104 million in new nylon 6 plant

Richard Higgs
EUROPEAN PLASTICS NEWS

Published: May 23, 2014 10:45 am ET
Updated: May 23, 2014 10:49 am ET

Post Your Comments


Back to story


More stories

Image

Akro-Plastic buying German subsidiary from Metabolix

October 24, 2014 3:32 pm ET

Akro-Plastic GmbH, a Niederzissen, Germany-based plastic compounder, has purchased the assets of Metabolix Inc.'s subsidiary in Germany.    More

Image

Automation firms join forces, look to automotive for future growth

October 24, 2014 2:43 pm ET

Hoping to ease the way for automation in some specialized areas of automotive plastics like laser cutting of door panels, a German robot maker and an ...    More

Image

German export sales strong, push for energy savings continues

October 24, 2014 12:34 pm ET

Germany is the engine that drives the European economy — and when it comes to the plastics industry, German machinery is a potent force, an...    More

Image

Arburg expands presence in China

October 24, 2014 11:34 am ET

German machinery maker Arburg GmbH + Co KG has expanded its office in Shenzhen, China, making it the company's first competence center for automation ...    More

Image

BASF pre-tax earnings rise, but will miss financial targets for 2015

October 24, 2014 10:16 am ET

BASF SE has raised its expectations for pre-tax earnings in 2014 but warned that it would not hit its financial targets for next year.    More

Market Reports

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 million dollar plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events