• Move in line with global growth strategy focused on Asia Pacific
  • Zhejiang will produce 50,000 tonnes of nylon compounds annually longer term
  • Plant in transportation port area of DuShan Pinghu city

Domo Chemicals has announced plans for a new plant in Zhejiang, China, capable of producing 50,000 tons of nylon compounds each year.

The company, which sells to automotive customers worldwide, signed a new factory project through "cloud contract" with PingHu DuShan port Economic Development District on 20 February, 2020.

Production is expected to commence in the fourth quarter of this year.

The supplier will spend EUR12m on the new plant which will have 11,500 square metres of floor space.

The company plans to install multiple production lines at the first stage of development, which would offer an estimated capacity of 25,000 tonnes a 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.

Head of global engineering plastics, Ludovic Tonnerre said: "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. We are very grateful to the government and relevant departments for their patience and assistance and are confident in our long term cooperation, relationships and mutual opportunities."

The new plant will be located in what Domo described as the "convenient transportation port area" of DuShan Pinghu city, Zhejiang province, which is near Shanghai and faces the East China Sea.

The factory will integrate R&D, production, and sales and develop and produce mainly modified engineering plastics such as nylon 6, nylon 6.6 and high temperature nylon (HTN).

These products meet the rising market demand for modified materials for the automotive, electronics and consumer industries.

Domo plans to exceed regulatory requirements for environmental protection for equipment, process and technology used at the new plant. The company will be investing in new air and water treatment technology and in the reduction of water and energy consumption.

Domo claimed the contract, signed remotely during the ongoing coronavirus situation, demonstrated its long term commitment to the Chinese economy and the resilience of local Chinese colleagues and partners.

Fabrizio Cochi, general manager Asia/Pacific, said: "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."

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