Domo Chemicals has announced plans for a polyamide (PA) compounding plant in the Chinese city of Pinghu in Zhejiang Province. The plant will be capable of producing 50,000 tonnes/year of these compounds. Production is expected to commence in the fourth quarter of this year in the Pinghu Dushan port Economic Development District.

Domo Chemicals will invest €12 million ($13.3 million) in the new plant, which will have more than 11,500m² floor space. The company plans to install multiple production lines in the first stage of development, which would offer an estimated capacity of 25,000 tonnes/year. There will be enough additional space available to cope with future demand requirements. The move is in line with the company’s global growth strategy with a strong focus on the Asia Pacific (APAC) region.

Speaking during a video ceremony of the signing, Vice President Global Engineering Plastics, Ludovic Tonnerre stated: “Domo Chemicals has only been operating in China since 2015, but we are growing rapidly. Despite the current coronavirus challenges, we are confident that China will lead the world in embracing a future generation of sustainability and e-mobility solutions.” Vehicle sales plummeted 80% in February in China due to the Covid-19 outbreak.

The new plant is in close proximity to Shanghai and facing the East China Sea. The modern factory will integrate R&D, production, and sales. It will mainly develop and produce modified engineering plastics such as PA 6, PA 66, and high temperature nylon (HTN). These products meet the rising market demand for modified materials for the automotive, electronics and consumer industries.

Fabrizio Cochi, General Manager Asia/Pacific at Domo Chemicals concludes: “When Domo Engineering Plastics started in China, we operated a small plant with two machines, with the aim of supplying our global automotive customers. In 2019, despite the slowdown of the Chinese economy, we were already selling 6,000 tonnes of engineering nylon compounds to diverse local applications. I believe that we are about to enter a period of rapid development in China once today’s hurdles are overcome. We remain strongly committed to China and the APAC region."