Daumer Chemical to invest in polyamide compounding plant in China
Daumer Chemical has announced plans to build a polyamide (PA) compounding plant in Pinghu, Zhejiang Province, China. The plant will be able to produce 50,000 tons of polyamide compounds per year. Production is expected to start in the fourth quarter of this year at the Pinghu Dushan Port Economic Development Zone.
Daumer Chemical will invest 12 million euros ($13.3 million) in the new plant, which will have a floor area of more than 11,500 square meters. The company plans to install multiple production lines in the first phase of the development, which is expected to have an annual capacity of 25,000 tons. There will be enough available space to meet future demand. The move is in line with the company's global growth strategy to focus on the Asia Pacific region (APAC). Ludovic Tonnerre, vice president of
Global Engineering Plastics Division, said at a video ceremony of the signing ceremony: "Daumer Chemical has only been operating in China since 2015, but we are growing fast. Despite the current coronavirus challenges, we are confident that China will lead the world in embracing the next generation of sustainable and electric mobility solutions." Car sales in China plunged 80 per cent in February due to the outbreak.
The new factory is next to Shanghai and faces the East China Sea. The modern plant will integrate research and development, production and sales. It will mainly develop and produce modified engineering plastics, such as PA6, PA66 and high-temperature nylon. These products meet the growing market demand for modified materials in the automotive, electronics and consumer industries.
Fabrizio Cochi, General manager of Daumer Chemical Asia Pacific, concluded: "When Daumer Engineering Plastics was established in China, we operated a small factory with two machines designed to supply our global automotive customers with products. In 2019, despite the economic slowdown in China, we have already sold 6,000 tons of engineered nylon compounds for multiple local uses. I am confident that once today's obstacles are overcome, we will enter a period of rapid development in China. We remain firmly committed to China and the Asia-Pacific region."