Radici plans new nylon uses

Friedrichshafen, Germany — Radici Group is focused on new applications for its nylon resins, and officials don't seem concerned about a global shortage of feedstocks used to make nylon 6/6.

The Bergamo, Italy-based materials firm is enjoying double-digit sales growth so far in 2018, Davide Preti, the company's Nordic and Eastern European regional sales manager, said at an Oct. 17 press event. Erico Spini, global marketing manager, addressed new growth opportunities for the firm, which derives around half of its plastics sales from the automotive market.

For electric vehicles, Spini said that the introduction of hybrid and fully sized electric vehicles is creating opportunities for Radici's nylon 6/6, 6/10 and 6/12 materials to be used in recharger plugs, sockets and high-voltage system components.

Demand for electrical vehicles is expected to grow, especially in Europe, where new carbon dioxide emission standards will be in place by 2021.

In the water market, Spini said that global construction growth of 3 percent annually is lifting demand for Radici nylon resins in heating systems, fittings and water distribution and filtration uses. Plastic materials are looking to replace metal in these areas, with advantages of lower cost, no corrosion, better insulation properties and improved environmental impact, he added.

For appliances, Spini said Radici sees new applications in power module housings, while in the solar industry, its materials are being used in photovoltaic converter housings.

Overall, Spini said that Radici "wants to introduce more engineering plastic specialties" to compete with metal and with safety features to meet market needs.

"Industries are asking us not only to provide material to replace metal, but to make them more reliable and with a high level of safety," he said.

And even though many nylon 6/6 makers are struggling with short supplies of adiponitrile feedstock, Spini said that Radici hasn't been affected much by these supply chain problems. Many materials firms have had to reduce their own production, extend lead times or delay shipments to customers because of the shortage. Spini said that Radici hasn't had to take those steps, even though it's a buyer of ADN.

"We've worked with our existing customers and suppliers," he said. "We've been approached by customers looking for other materials, but it's difficult to replace 6/6 with [nylon] 6 on existing tools.

"On engineered components, you have to do a lot of testing and meet a lot of standards," Spini said. "It's not something you do overnight."

Radici employs around 3,000 worldwide. Earlier this year, the firm said it's invested in a new extrusion line at its production unit in Suzhou, China. That line is expected to increase material production there by 22 million pounds annually by the end of the year. The new line is needed because of increased demand from the Chinese automotive sector.

In India, Radici officials earlier said that the firm is considering an acquisition to meet growing demand in that country. They said the acquisition could be finalized later this year or in early 2019. Radici has worked with a toll compounder in India since 2013.