Materials firm Domo Chemicals GmbH plans to build a nylon compounding plant in Zhejiang, China.
Leuna, Germany-based Domo will invest 12 million euros ($13.4 million) in the new plant, which will have annual production capacity of around 110 million pounds.
In a March 13 news release, officials said that the move "is in line with [Domo's] global growth strategy with a strong focus in the Asia Pacific region." The company signed a new factory project with the PingHu DuShan Port Economic Development District on Feb. 20. Production is expected to begin in the fourth quarter of this year.
The new plant will have almost 37,000 square feet of floor space. Domo plans to install multiple production lines at the first stage of development, which would offer an estimated capacity of around 55 million pounds per year. Officials said that the plant will have additional space for future demand requirements.
"Domo Chemicals has only been operating in China since 2015, but we are growing rapidly," Ludovic Tonnerre, global engineering plastics vice president, said in a video ceremony at the signing. He added that despite current coronavirus challenges, officials "are confident that China will lead the world in embracing a future generation of sustainability and e-mobility solutions."
The new plant will integrate research and development, production and sales. It will mainly develop and produce modified engineering plastics such as nylons 6 and 6/6 and high-temperature nylon. Officials said that these products meet rising market demand for modified materials for the automotive, electronics and consumer industries.
Domo also will be investing in new air and water treatment technologies, and in the reduction of water and energy consumption at the new plant.
"I believe that we are about to enter a period of rapid development in China once today's hurdles are overcome," Asia Pacific General Manager Fabrizio Cochi said. "We remain strongly committed to China and the APAC region."