June 18, 2010 - Singapore - China's Li Heng Chemical Fibre Technologies Limited plans to build a polyamide chip plant alongside its existing facilities in the Binhai Industrial Zone in Changle, Fujian province, the company said late Thursday.
The new polyamide chip plant that will be built at an estimated cost of Yuan 715 million ($105 million) will have a nameplate capacity of 100,000 mt/year. Planning and construction works will commence in the third quarter of this year and completion is scheduled for the fourth quarter of 2011.
"Upon completion of the new PA chip plant, we expect to be self-sufficient in PA chips for production of our nylon yarn products," the company said in a statement on its website. According to that statement, Li Heng's existing 70,000 mt/year polyamide chip plant currently supports 55% of its requirements in 2010 and that percentage will to fall to 40% into 2011.
Li Heng also expects its new polyamide chip plant to aid in the company's cost savings amidst newly imposed antidumping tariffs on imported material.
On April 22, China's Ministry of Commerce finalized antidumping tariffs on imports of polyamide 6 chips, also known as nylon 6 chips, originating from the US, the European Union, Russia and Taiwan for five years. Finalized duties range between 4.2% and 96.5%.
Polyamide or nylon chips, is a polymer produced from caprolactam. It is commonly used in fiber, textile, electronics, automobile, the food product and pharmaceutical sectors.
