Domo Chemicals GmbH, a Germany-based materials manufacturer announced its plans to build a nylon compounding plant in Zhejiang, China in a move to increase its focus on the Asia Pacific region.
The new plant will be capable of producing 50,000 ton of sustainable and innovative engineered nylon compounds each year, the company said in a statement.
The company signed a new factory project through “cloud contract” with PingHu DuShan port Economic Development District on February 20, 2020.
Production is expected to commence in the fourth quarter of this year.
Domo Chemicals will invest EUR12 million ($13.4 million) in the new plant, and the company plans to install multiple production lines at the first stage of development, which would offer an estimated capacity of 25,000 ton per year.
According to the company, the new plant will mainly develop and produce modified engineering plastics such as nylon 6, nylon 6.6 and high temperature nylon for the automotive, electronics, and consumer industries.
Fabrizio Cochi, general manager Asia-Pacific at DOMO Chemicals said, “In 2019, despite the slowdown of the Chinese economy, we were already selling 6,000 tons 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.”