SHANGHAI (April 18, 1:55 p.m. ET) — In the midst of the global nylon 12 shortage caused by major supplier Evonik Industries AG's recent explosion, a young Chinese firm made a high profile announcement at Chinaplas of the launch of its 10,000 metric ton per year long-carbon-chain nylon production line.
Shandong Guangyin New Materials Co. Ltd., based in Zibo, Shandong province, said April 18 that it has commenced production on the line, which it said is the first of its kind in China.
“Other companies have much smaller capacity, no higher than 2,000 tons,” said Zhongbo Xu, chief engineer.
Guangyin's products include nylon 12/12, 12/10, MXD12, 6/10 and 6/12. Its parent company Zibo Guangtong Chemical Co. Ltd. had been researching the technology and commercialization of long carbon chain nylon for 14 years before it formed Guangyin in 2010 and established a joint nylon R&D center with China's Academy of Science in 2011.
The company now owns eight patents on related technology. The production line came on stream in February.
The current market condition provides a unique opportunity for Guangyin to quickly build its business, Xu said. About half of the product inquires are from domestic firms, and the other half for export orders, he added.
“The long carbon chain nylon market has been dominated by four international suppliers —- Arkema Group, Evonik, EMS-[Grivory] and Ube [Industries Ltd.], all of which are vertically integrated from feedstock to monomer, polymer and compound,” he said. “Guangyin now has the same setup.”
He noted its nylon products can offer more than 20 percent cost advantage over imported materials.