Russia's KuibyshevAzot Joint Stock Co. plans to grab a share of China's market for nylon 6 compounds through its new Shanghai joint venture, KuibyshevAzot Engineering (Shanghai) Co. Ltd.
``We can be very competitive in the China market because of the lower price of feedstock in Russia,'' said General Manager Roman Meytis.
KuibyshevAzot JSC, based in Togliatti, Russia, inaugurated a 45,200-square-foot plant at the end of March. The facility is a joint venture with He Ye Trading Co. Ltd. of Shanghai. The two companies have been business partners for 20 years. KuibyshevAzot is the controlling shareholder of the facility.
KuibyshevAzot Shanghai plans to acquire 15.4 million pounds per year of nylon 6 resin from its parent to produce other engineering compounds. The company's main product is a glass-fiber-reinforced nylon with a flame-retardant additive. But the joint venture also can produce polyethylene, polypropylene and other compounds.
With two Berstorff extrusion lines currently working, the facility can produce 21.8 million pounds per year, and plans to expand to four extrusion lines during the next 24 months.
The firm's compounding joint venture in Moscow, with Moscow-based Polyplastic Group, has given KuibyshevAzot experience with automotive and appliance customers, which are two of China's fastest-growing users of engineering plastics.
KuibyshevAzot employs more than 5,000 and produces ammonia, nitrogenous fertilizer, caprolactam and nylon at its 32 million-square-foot site in Togliatti.