INVISTA Signs Letter of Intent for Site for ADN/HMD/Polymer Plant in China
State-of-the-art facility – the first in Asia – to serve growing nylon 6,6 demand in region
Shanghai, CHINA ( May 9, 2007 ) – INVISTA has signed a letter of intent for investment and transfer of land use rights to build a production complex at the Shanghai Chemical Industry Park that could serve the region's demand for nylon 6,6 intermediates and polymer.
The agreement is the next step for INVISTA as it proceeds with the project it announced in September to construct state-of-the-art facilities in Asia to meet the region's growing demand for adiponitrile (ADN), hexamethylene diamine (HMD), nylon 6,6 polymer, and a variety of specialty intermediate chemicals.
The new, world-scale production complex will deploy INVISTA's advanced, proprietary butadiene-based ADN technology. It would be the first facility of its kind to be built in Asia and would help fulfill the region's demand growth, especially the emerging needs of Chinese consumers.
“Building this new facility is part of our strategy to quickly expand INVISTA's nylon 6,6 intermediates and polymer capabilities globally to serve our growing markets' needs,” said Warren Primeaux, president of INVISTA Intermediates. “This is a significant and unique project; it will be not only the first plant of its kind in Asia but also the first brand-new facility built worldwide in 25 years.”
Engineering and design work has begun for the new complex, which is expected to start up beginning in 2010. Together with existing INVISTA operations around the world, the facility would comprise two-thirds of the world's production capacity of ADN and HMD, the chemical precursors to nylon 6,6 polymer . Nylon 6,6 is the polymer of preference for advanced applications in nylon fiber and engineering plastics.
“Following our September project announcement, in which we expressed our preference for locating the facility in China , we evaluated several sites in Asia . Our work with customers and suppliers confirmed that China possesses great potential. We believe that the construction of a new ADN/HMD plant here will help to sustain the growth momentum in China and the rest of Asia ,” said Primeaux.
Participating in the signing ceremony were Rick Dobzelecki, INVISTA vice president of Intermediates for Asia Pacific, and Liu Xunfeng, vice president of the Shanghai Chemical Industry Park Development Company . After signing the non-binding letter of intent, INVISTA and the Shanghai Chemical Industry Park Development Company will work to finalize details for the transfer of the site.
In addition to this new plant in China , INVISTA is also expanding and improving its current network of facilities in the United States , Canada , Singapore , and Europe . E xpansions of approximately 100 KT/yr previously announced for its ADN and HMD facilities in Victoria and Orange , Texas , U.S.A. , are underway, with completion expected by 2008. INVISTA also is proceeding with expansions at its intermediate chemical production facilities in Wilton , United Kingdom; and Sakra , Singapore .
Rick Dobzelecki (R), INVISTA vice president of Intermediates for Asia Pacific, and Liu Xunfeng, vice president of Shanghai Chemical Industry Park Development Company, sign letter of intent for site for an ADN/HMD/polymer plant at Shanghai Chemical Industry Park .
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Forward-looking information
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